Live Index – Wed, 27 May 2015 Premarket
June E-mini S&Ps (ESM15 +0.10%) this morning are up +0.04% and European stocks are up +0.19% after a gauge of German consumer confidence unexpectedly rose. The 10-year Greek bond yield fell back from Tuesday’s 1-month high after the ECB left the level of emergency cash available to Greek banks unchanged from a week ago, a sign that Greece’s cash crunch hasn’t worsened. Asian stocks closed mixed: Japan +0.17%, Hong Kong -0.60%, China +0.63%, Taiwan +0.25%, Australia -0.83%, Singapore -1.01%, South Korea -1.98%, India +0.12%. Japan’s Nikkei Stock Index pushed up to a new 15-year high as exporters rallied on the prospects of improved earnings after the yen tumbled to a 7-3/4 year low against the dollar. China’s Shanghai Composite Stock Index continued its recent rally up to a new 7-1/3 year high after China Apr industrial profits rose +2.6% y/y, the first increase in 5 months.
Commodity prices are mixed. Jul crude oil (CLN15 +0.64%) is up +0.24% and Jul gasoline (RBN15 +0.01%) is down -0.22%. Metals prices are weaker. Jun gold (GCM15 -0.08%) is down -0.24% at a 2-week low. Jul copper (HGN15 -0.47%) is down -0.34%. Agricultural prices are mixed.
The dollar index (DXY00 unch) is up +0.05% at a new 1-month high. EUR/USD (^EURUSD) is up +0.11%. USD/JPY (^USDJPY) is up +0.37% at a fresh 7-3/4 year high.
Jun T-note prices (ZNM15 -0.11%) are down -5 ticks.
According to two people familiar with the matter, the ECB left the level of emergency cash available to Greek banks unchanged from a week ago at 80.2 billion euros and that Greek banks still have a liquidity buffer of about 3 billion euros.
Speaking Tuesday evening to the LSU Graduate School of Banking, Richmond Fed President Lacker said that it looks “pretty clear” inflation is heading back up to the Fed’s 2.0% goal and that there are risks for the Fed to move too late on interest rates.
German Jun GfK consumer confidence unexpectedly rose +0.1 to 10.2, stronger than expectations of -0.1 to 10.0 and the highest since the data series began in 2005.
Key U.S. reports today include: (1) weekly MBA mortgage applications (last week -1.5% with purchase sub-index -3.7% and refi sub-index +0.3%), (2) the Treasury’s auction of $ 13 billion of 2-year floating rate notes and $ 35 billion of 5-year T-notes), and (3) the 3-day G-7 meeting in Dresden, Germany that begins today.
There are 10 of the Russell 1000 companies that report earnings today with notable reports including: Toll Brothers (consensus $ 0.35), Costco (1.12), Tiffany (0.69), DSW (0.48), Valspar (1.10).
U.S. IPO’s scheduled to price today include: none.
Equity conferences during the remainder of this week include: BMO Capital Markets Global Energy Invitational Conference on Wed, D. A. Davidson & Co Technology Forum on Wed, Stifel, Nicolaus & Co. Dental & Veterinary Conference on Wed, Citi Global Consumer Conference on Wed-Thu, Cowen and Company Technology Media & Telecom Conference on Wed-Thu, US Ethane & LPG Export Asia 2015 on Wed-Thu, Sanford C. Bernstein Strategic Decisions Conference on Wed-Fri, KeyBanc Capital Markets Industrial, Automotive & Transportation Conference on Thu, American Society of Clinical Oncology Meeting on Fri.
Tiffany & Co. (TIF -1.59%) reported Q1 EPS of 81 cents, higher than consensus of 69 cents.
Michael Kors Holdings Ltd. (KORS -1.69%) reported Q4 EPS of 90 cents, below consensus of 91 cents.
Brown Shoe (BWS -2.77%) reported Q1 EPS of 44 cents, above consensus of 36 cents.
eBay (EBAY -1.67%) was initiated with a ‘Buy’ at Topeka with a price target of $ 68.
T-Mobile (TMUS +5.10%) was downgraded to ‘Neutral’ from ‘Outperform’ at Macquarie.
Reynolds American (RAI +0.48%) was upgraded to ‘Outperform’ from ‘Market Perform’ at Cowen.
AutoZone (AZO -0.11%) was downgraded to ‘Hold’ from ‘Buy’ at Gabelli.
Marathon Petroleum (MPC -2.56%) and Phillips 66 (PSX -1.99%) were both upgraded to ‘Outperform’ from ‘Perform’ at Oppenheimer.
Ulta Salon (ULTA -0.71%) was initiated with a ‘Buy’ at Buckingham with a price target of $ 182.
Coach (COH -2.58%) was initiated with an ‘Underweight’ at BB&T.
Vipshop (VIPS +4.48%) was initiated with a ‘Buy’ at Stifel with a price target of $ 32.
Barron’s says that General Motors (GM -0.50%) still looks like a buy, despite pending criminal charges against the company.
United Rentals (URI -0.51%) said it has added ten locations in Canada and the U.S.
Hormel Foods (HRL -0.54%) said it will acquire Applegate Farms for $ 775 million.
Eminence Capital reported a 5.1% passive stake in Yelp (YELP -2.00%) .
Hirzel Capital reported a 9.0% passive stake in Rex Energy (REXX -1.66%) .
June E-mini S&Ps (ESM15 +0.10%) this morning are up +0.75 of a point (+0.04%). Tuesday’s closes: S&P 500 -1.03%, Dow Jones -1.04%, Nasdaq -1.20%. The S&P 500 on Tuesday sold-off to a 1-1/2 week low and closed lower on concerns about Greece and on Cleveland Fed President Mester’s comment that if economic data comes in according to her forecasts then the “time is near” for the federal funds rate to be raised. In addition, the stronger-than-expected U.S. Apr durable goods orders and new home sales reports bolstered the case for the Fed to raise interest rates sooner rather than later.
June 10-year T-notes (ZNM15 -0.11%) this morning are down -5 ticks. Tuesday’s closes: TYM5 +20.00, FVM5 +9.00. Jun T-notes on Tuesday settled higher on increased safe-haven demand with the sell-off in stocks and the Greek situation. In addition, the 10-year T-note breakeven inflation expectations rate fell to a 1-week low.
The dollar index (DXY00 unch) this morning is up +0.045 (+0.05%) at a 1-month high. EUR/USD (^EURUSD) is up +0.0012 (+0.11%). USD/JPY (^USDJPY) is up +0.45 (+0.37%) at a new 7-3/4 year high. Tuesday’s closes: Dollar Index +1.285 (+1.34%), EUR/USD -0.014 (-1.27%), USD/JPY +1.575 (+1.30%). The dollar index on Tuesday climbed to a 1-month high on increased expectations for Fed tightening after the stronger-than-expected U.S. economic data on May consumer confidence, Apr new home sales and durable goods orders. In addition, Cleveland Fed President Mester said that the “time is near” for the federal funds rate to be raised.
July WTI crude oil (CLN15 +0.64%) this morning is up +14 cents (+0.24%). July gasoline (RBN15 +0.01%) is down -0.0044 (-0.22%). Tuesday’s closes: CLN5 -1.69 (-2.83%), RBN5 -0.0526 (-2.58%). Jul crude and gasoline sold-off sharply on Tuesday on the rally in the dollar index to a 1-month high and on expectations for the U.S. crude oil glut to persist as OPEC is expected to keep its production targets unchanged when the cartel meets on Jun 5.
|US||0700 ET||Weekly MBA mortgage applications, previous -1.5% with purchase sub-index -3.7% and refi sub-index +0.3%.|
|1130 ET||Treasury auctions $ 13 billion of 2-year floating rate notes.|
|1300 ET||Treasury auctions $ 35 billion of 5-year T-notes.|
|n/a||3-day G-7 meeting of finance ministers and central bank chiefs in Dresden, Germany begins (Wed-Fri).|
|GER||0200 ET||German Jun GfK consumer confidence expected -0.1 to 10.0, May 10.1.|
|JPN||1950 ET||Japan Apr retail sales expected +1.1% m/m and +5.5% y/y, Mar -1.8% m/m and -9.7% y/y.|
|Toll Brothers Inc||TOL US||Bef-mkt||Q2 2015 Earnings Release||Q2 2015||0.349|
|Valspar Corp/The||VAL US||Bef-mkt||Q2 2015 Earnings Release||Q2 2015||1.1|
|Michael Kors Holdings Ltd||KORS US||Bef-mkt||Q4 2015 Earnings Release||Q4 2015||0.913|
|Hormel Foods Corp||HRL US||7:15||Acquisition of Applegate Farms, LLC by Hormel Foods Corporation Call|
|Michael Kors Holdings Ltd||KORS US||8:00||Q4 2015 Earnings Call||Q4 2015|
|Tiffany & Co||TIF US||8:30||Q1 2016 Earnings Call||Q1 2016|
|Chico’s FAS Inc||CHS US||8:30||Q1 2016 Earnings Call||Q1 2016|
|DSW Inc||DSW US||8:30||Q1 2016 Earnings Call||Q1 2016|
|SEI Investments Co||SEIC US||9:00||Annual General Meeting|
|AOL Inc||AOL US||9:00||Annual General Meeting|
|Fidelity National Information Services Inc||FIS US||10:00||Annual General Meeting|
|NorthStar Realty Finance Corp||NRF US||10:00||Annual General Meeting|
|Dollar General Corp||DG US||10:00||Annual General Meeting|
|Exxon Mobil Corp||XOM US||10:30||Annual General Meeting||Y 2015|
|Tidewater Inc||TDW US||11:00||Q4 2015 Earnings Call||Q4 2015|
|Toll Brothers Inc||TOL US||11:00||Q2 2015 Earnings Call||Q2 2015|
|Valspar Corp/The||VAL US||11:00||Q2 2015 Earnings Call||Q2 2015|
|NOW Inc||DNOW US||11:00||Annual General Meeting|
|NorthStar Asset Management Group Inc/New York||NSAM US||11:00||Annual General Meeting|
|Stericycle Inc||SRCL US||12:00||Annual General Meeting||Y 2015|
|VMware Inc||VMW US||12:00||Annual General Meeting|
|Illumina Inc||ILMN US||13:00||Annual General Meeting||Y 2015|
|Equinix Inc||EQIX US||13:30||Annual General Meeting||Y 2015|
|Palo Alto Networks Inc||PANW US||16:30||Q3 2015 Earnings Call||Q3 2015|
|Costco Wholesale Corp||COST US||Aft-mkt||Q3 2015 Earnings Release||Q3 2015||1.155|
|Copart Inc||CPRT US||Aft-mkt||Q3 2015 Earnings Release||Q3 2015||0.493|
|AMERCO||UHAL US||Aft-mkt||Q4 2015 Earnings Release||Q4 2015||2.48|
|Palo Alto Networks Inc||PANW US||Aft-mkt||Q3 2015 Earnings Release||Q3 2015||0.199|
|Chevron Corp||CVX US||Annual General Meeting|
|City National Corp/CA||CYN US||Annual General Meeting – M&A Vote|
|Questar Corp||STR US||Annual General Meeting||Y 2015|
|Southern Co/The||SO US||Annual General Meeting|
|Tiffany & Co||TIF US||Q1 2016 Earnings Release||Q1 2016||0.693|
|Alkermes PLC||ALKS US||Annual General Meeting|
|ProAssurance Corp||PRA US||Annual General Meeting||Y 2015|
|Chico’s FAS Inc||CHS US||Q1 2016 Earnings Release||Q1 2016||0.275|
|BioMed Realty Trust Inc||BMR US||Annual General Meeting|
|DSW Inc||DSW US||Q1 2016 Earnings Release||Q1 2016||0.475|
|Copa Holdings SA||CPA US||Investor Day-Day1||Y 2015|
|Taylor Morrison Home Corp||TMHC US||Annual General Meeting|