Live Index – Thu, 21 May 2015 Premarket
June E-mini S&Ps (ESM15 -0.12%) this morning are down -0.21% ahead of economic data on U.S. Apr existing home sales and weekly jobless claims to gauge the timing of a Fed interest rate increase after Wednesday afternoon’s Apr 28-29 FOMC minutes reinforced the message that rates could rise at any Fed meeting. European stocks are down -0.52 % after the Eurozone May composite PMI unexpectedly weakened. Asian stocks closed mixed: Japan +0.03%, Hong Kong -0.22%, China +1.87%, Taiwan -1.10%, Australia +0.93%, Singapore +0.01%, South Korea -1.02%, India -0.10%. Japan’s Nikkei Stock Index climbed to a new 15-year high on expectations that the weak yen will continue to give Japan’s economy a boost after Wednesday’s economic data showed Japan Q1 GDP rose +2.4% q/q annualized, the fastest pace of growth in a year. China’s Shanghai Composite Stock Index rose to a 3-week high on speculation China will expand stimulus after a gauge of Chinese manufacturing activity contracted for a third month.
Commodity prices are mostly higher. Jul crude oil (CLN15 +1.03%) is up +1.38% and Jul gasoline (RBN15 +0.59%) is up +0.99% after Wednesday’s weekly EIA data showed U.S. crude stockpiles declined, indicating the supply glut may be easing. Metals prices are higher with a weaker dollar. Jun gold (GCM15 +0.02%) is up +0.05%. Jul copper (HGN15 +0.49%) is up +0.46%. Agricultural prices are higher.
The dollar index (DXY00 -0.28%) is down -0.37%. EUR/USD (^EURUSD) is up +0.59%. USD/JPY (^USDJPY) is down -0.28%.
Jun T-note prices (ZNM15 +0.01%) are up +3 ticks.
The May Eurozone composite PMI fell -0.5 to 53.4, weaker than expectations of unch at 53.9. The May Markit manufacturing PMI unexpectedly rose +0.3 to 52.3, stronger than expectations of -0.2 to 51.8 and the fastest pace of expansion in 13 months.
The China May HSBC flash manufacturing PMI rose +0.2 to 49.1, weaker than expectations of +0.4 to 49.3 and the third month the index has remained below the contraction/expansion level of 50.0.
Key U.S. reports today include: (1) weekly initial unemployment claims (expected +6,000 to 270,000 after last week’s -1,000 to 264,000) and continuing claims (expected +5,000 to 2.234 million after unchanged at 2.229 million), (2) preliminary May Markit manufacturing PMI (expected +0.4 to 54.5 after April’s -1.6 to 54.1), (3) regional confidence surveys including the Apr Chicago Fed national activity index (expected +0.42 to 0.00 after March’s -0.24 to -0.42), May Philadelphia Fed business outlook survey (expected +0.5 to 8.0 after April’s +2.5 to 7.5), and May Kansas City Fed manufacturing activity survey (expected +3 to -4 after April’s -3 to -7), (4) Apr existing home sales (expected +0.6% to 5.22 million after March’s +6.1% to 5.19 million), (5) Apr leading indicators (expected +0.3% after March’s +0.2%), and (6) the Treasury’s auction of $ 13 billion of 10-year TIPS.
There are 7 of the S&P 500 companies report earnings today: HP (consensus $ 0.86), Best Buy (0.29), GAP (0.56), Ross Stores (1.28), Intuit (2.75), Dollar Tree (0.75), Patterson Cos (0.65).
U.S. IPO’s scheduled to price today include: Emerald Oil (EOX), Manhattan Bridge Capital (LOAN).
Equity conferences during the remainder of this week include: BMO Farm to Market Conference on Wed-Thu, Janney Montgomery Scott-Company Marketing: Biotechnology-Southeast on Fri.
Dollar Tree (DLTR -1.66%) lowered guidance on Q2 EPS ex-acquisition costs to 63 cents-68 cents, below consensus of 70 cents.
Bon-Ton Stores (BONT -1.49%) reported a Q1 EPS loss of -$ 1.74, a larger loss than consensus of -$ 1.56.
Omnicare (OCR +2.48%) was downgraded to ‘Market Perform’ from ‘Outperform’ at Cowen.
Citigroup maintains a ‘Buy’ rating on Netflix (NFLX +0.82%) and raised its price target on the stock to $ 722 from $ 584.
Vodafone (VOD +2.60%) was upgraded to ‘Neutral’ from ‘Reduce’ at Nomura.
Nike (NKE -0.03%) was initiated with a ‘Buy’ at Jefferies with a price target of $ 120.
Best Buy (BBY -3.43%) jumped over 9% in pre-market trading after reported Q1 EPS of 37 cents, better than consensus of 29 cents.
CVS Health (CVS -1.03%) agreed to acquire Omnicare (OCR) for $ 98 a share.
Salesforce.com (CRM -1.85%) rallied more than 6% in after-hours trading on postive earnings.
Williams-Sonoma (WSM -0.43%) rallied 4% in after-hours trading on positive earnings.
NetApp (NTAP -0.06%) fell 8% in after-hours trading on disappointing earnings and then was downgraded to ‘Underweight’ from ‘Neutral’ at JPMorgan Chase.
June E-mini S&Ps (ESM15 -0.12%) this morning are down -4.50 points (-0.21%). Wednesday’s closes: S&P 500 -0.09%, Dow Jones -0.15%, Nasdaq +.03%. The S&P 500 on Wednesday closed slightly lower as some long liquidation pressure emerged. However, stocks saw support from the FOMC minutes, which said that many members believed that rates would not be raised at the June meeting. In addition, there was some carry-over support from the +0.35% rally in the Euro Stoxx on relief that the ECB did not raise the haircut on Greek bank collateral and only needed to raise the Greek ELA by 200 million euros.
June 10-year T-notes (ZNM15 +0.01%) this morning are up +3 ticks. Wednesday’s closes: TYM5 +7.50, FVM5 +6. Jun T-notes on Wednesday closed higher on some relief that the April 28-29 FOMC minutes downplayed the chances for a rate hike in June. The main bearish factor was the -0.22 point sell-off in June German bund prices.
The dollar index (DXY00 -0.28%) this morning is down -0.355 (-0.37%). EUR/USD (^EURUSD) is up +0.0065 (+0.59%). USD/JPY (^USDJPY) is down -0.34 (-0.28%). Wednesday’s closes: Dollar Index +0.359 (+0.38%), EUR/USD -0.0056 (-0.50%), USD/JPY +0.66 (+0.55%). The dollar index on Wednesday closed higher on technical buying with the new 2-week high. EUR continued to see weakness from the ECB’s statement earlier this week about boosting the size of QE in May-June to offset reduced liquidity during the summer.
July WTI crude oil (CLN15 +1.03%) is up +82 cents (+1.39%). July gasoline (RBN15 +0.59%) is up +0.0201 (+0.99%). Wednesday’s closes: CLN5 +0.99 (+1.71%), RBN5 +0.0438 (+2.21%). Jul crude oil and gasoline prices on Wednesday closed sharply higher on a bullish weekly EIA report. The EIA report showed a (1) -2.67 million bbl decline in U.S. crude oil inventories (vs expectations of -2 million bbls), (2) a -2.77 million bbl drop in gasoline inventories, and (3) a sharp -1.2% drop in U.S. crude oil production.
|US||0830 ET||Weekly initial unemployment claims expected +6,000 to 270,000, previous -1,000 to 264,000. Weekly continuing claims expected +5,000 to 2.234 million, previous unch at 2.229 million.|
|0830 ET||Apr Chicago Fed national activity index expected +0.42 to 0.00, Mar -0.24 to -0.42.|
|0830 ET||USDA weekly Export Sales.|
|0945 ET||Preliminary May Markit manufacturing PMI expected +0.4 to 54.5, April -1.6 to 54.1.|
|1000 ET||May Philadelphia Fed business outlook survey expected +0.5 to 8.0, Apr +2.5 to 7.5|
|1000 ET||Apr existing home sales expected +0.6% to 5.22 million, Mar +6.1% to 5.19 million.|
|1000 ET||Apr leading indicators expected +0.3%, Mar +0.2%.|
|1100 ET||May Kansas City Fed manufacturing activity survey expected +3 to -4, Apr -3 to -7.|
|1100 ET||Treasury announces amount of 2-year T-notes (previous $ 26 billion), 2-year floating-rate notes (previous $ 15 billion), 5-year T-notes (previous $ 35 billion), and 7-year T-notes (previous $ 29 billion) to be auctioned May 26-28|
|1300 ET||Treasury auctions $ 13 billion of 10-year TIPS.|
|1900 ET||San Francisco Fed President John Williams speaks on a panel at Stanford on Impact of Reform in Practice Central Bank Governance and Oversight Reform.|
|JPN||0030 ET||Japan Mar all-industry activity index expected -0.5% m/m, Feb +0.1% m/m.|
|GER||0330 ET||German May Markit/BME manufacturing PMI expected -0.1 to 52.0, Apr 52.1. May Markit services PMI expected -0.1 to 53.9, Apr 54.0.|
|EUR||0400 ET||Eurozone May Markit manufacturing PMI expected -0.2 to 51.8, Apr 52.0. May composite PMI expected unch at 53.9.|
|1000 ET||Eurozone May consumer confidence expected -0.2 to -4.8, Apr -4.6.|
|n/a||ECB President Mario Draghi speaks at an ECB Forum on central banking in Sintra, Portugal.|
|UK||0430 ET||UK Apr retail sales including auto fuel expected +0.4% m/m and +3.7% y/y, Mar -0.5% m/m and +4.2% y/y.|
|0430 ET||UK Apr retail sales ex auto fuel expected +0.2% m/m and +3.7% y/y, Mar +0.2% m/m and +5.0% y/y.|
|0600 ET||UK May CBI trends total orders expected +2 to 3, Apr 1. May CBI trends selling prices, Apr -3.|
|Patterson Cos Inc||PDCO US||Bef-mkt||Q4 2015 Earnings Release||Q4 2015||0.65|
|Dollar Tree Inc||DLTR US||Bef-mkt||Q1 2016 Earnings Release||Q1 2016||0.745|
|Best Buy Co Inc||BBY US||7:00||Q1 2016 Earnings Release||Q1 2016||0.293|
|Aflac Inc||AFL US||8:00||Analysts Briefing||Y 2015|
|Best Buy Co Inc||BBY US||8:00||Q1 2016 Earnings Call||Q1 2016|
|L Brands Inc||LB US||8:30||Annual General Meeting||Y 2015|
|KeyCorp||KEY US||8:30||Annual General Meeting||Y 2015|
|ACE Ltd||ACE US||8:45||Annual General Meeting||Y 2015|
|Home Depot Inc/The||HD US||9:00||Annual General Meeting||Y 2015|
|Lincoln National Corp||LNC US||9:00||Annual General Meeting||Y 2015|
|Comcast Corp||CMCSA US||9:00||Annual General Meeting||Y 2015|
|FLIR Systems Inc||FLIR US||9:00||Analyst and Investor Day||Y 2015|
|Dollar Tree Inc||DLTR US||9:00||Q1 2016 Earnings Call||Q1 2016|
|L Brands Inc||LB US||9:15||Q1 2016 Earnings Call||Q1 2016|
|Interpublic Group of Cos Inc/The||IPG US||9:30||Annual General Meeting||Y 2015|
|Marsh & McLennan Cos Inc||MMC US||10:00||Annual General Meeting||Y 2015|
|McDonald’s Corp||MCD US||10:00||Annual General Meeting||Y 2015|
|Unum Group||UNM US||10:00||Annual General Meeting||Y 2015|
|Cablevision Systems Corp||CVC US||10:00||Annual General Meeting|
|Mohawk Industries Inc||MHK US||10:00||Annual General Meeting|
|Patterson Cos Inc||PDCO US||10:00||Q4 2015 Earnings Call||Q4 2015|
|Quanta Services Inc||PWR US||10:00||Annual General Meeting|
|NextEra Energy Inc||NEE US||11:00||Annual General Meeting||Y 2015|
|Hasbro Inc||HAS US||11:00||Annual General Meeting||Y 2015|
|AvalonBay Communities Inc||AVB US||11:00||Annual General Meeting||Y 2015|
|Level 3 Communications Inc||LVLT US||11:00||Annual General Meeting||Y 2015|
|Dr Pepper Snapple Group Inc||DPS US||11:00||Annual General Meeting||Y 2015|
|Vornado Realty Trust||VNO US||11:30||Annual General Meeting||Y 2015|
|Intel Corp||INTC US||11:30||Annual General Meeting||Y 2015|
|Goldman Sachs Group Inc/The||GS US||11:30||Annual General Meeting||Y 2015|
|Mattel Inc||MAT US||12:00||Annual General Meeting||Y 2015|
|Gap Inc/The||GPS US||16:00||Q1 2016 Earnings Release||Q1 2016||0.556|
|Ross Stores Inc||ROST US||16:00||Q1 2016 Earnings Release||Q1 2016||1.278|
|Ross Stores Inc||ROST US||16:15||Q1 2016 Earnings Call||C1 2016|
|Ross Stores Inc||ROST US||16:15||Q1 2016 Earnings Call||Q1 2016|
|Intuit Inc||INTU US||16:30||Q3 2015 Earnings Call||Q3 2015|
|Gap Inc/The||GPS US||17:00||Q1 2016 Earnings Call||Q1 2016|
|Hewlett-Packard Co||HPQ US||17:00||Q2 2015 Earnings Call||Q2 2015|
|Hewlett-Packard Co||HPQ US||Aft-mkt||Q2 2015 Earnings Release||Q2 2015||0.857|
|Intuit Inc||INTU US||Aft-mkt||Q3 2015 Earnings Release||Q3 2015||2.747|
|Equifax Inc||EFX US||Investor Meeting – Frankfurt||Y 2015|
|Leucadia National Corp||LUK US||Annual General Meeting||Y 2015|
|Robert Half International Inc||RHI US||Annual General Meeting|
|Williams Cos Inc/The||WMB US||Annual General Meeting|
|Flowserve Corp||FLS US||Annual General Meeting|
|Expeditors International of Washington Inc||EXPD US||Annual General Meeting||Y 2015|
|CBS Corp||CBS US||Annual General Meeting|
|Martin Marietta Materials Inc||MLM US||Annual General Meeting|
|VeriSign Inc||VRSN US||Annual General Meeting|
|Navient Corp||NAVI US||Annual General Meeting|