Live Index – Fri, 12 Jun 2015 Premarket
September E-mini S&Ps (ESU15 -0.40%) are down -0.23% and European stocks are down -0.52% on Greek debt concerns after the Bild reported that a growing number of German Chancellor Merkel’s CDU members of parliament object to further financial aid to Greece and were preparing for a Greek default, including capital controls for Greek banking clients. Stocks pared their declines after German Finance Ministry spokesman Jaeger said that Germany doesn’t see that the IMF aborted the Greek debt talks, but that they were “a call, a warning to Greece to intensify the talks” to gain an agreement. Asian stocks closed mostly higher: Japan +0.12%, Hong Kong +1.39%, China +0.87%, Taiwan -0.01%, Australia -0.21%, Singapore +0.18%, South Korea -0.26%, India +0.21%. China’s Shanghai Composite Index climbed to a fresh 7-1/3 year high on speculation policy makers will boost stimulus. According to China Merchant Bank Co., the PBOC may cut banks’ reserve requirement ratios as early as this weekend.
Commodity prices are mostly lower as the dollar strengthened. Jul crude oil (CLN15 -0.94%) is down -1.00%. Jul gasoline (RBN15 -1.31%) is down -1.41%. Metals prices are mixed. Aug gold (GCQ15 -0.03%) is down -0.11%. Jul copper (HGN15 +0.26%) is up +0.34% after weekly Shanghai copper inventories fell -10,567 MT to a 4-1/2 month low of 134,816 MT. Agricultural prices are weaker.
The dollar index (DXY00 +0.45%) is up +0.480 (+0.51%). EUR/USD (^EURUSD) is down -0.0070 (-0.62%) on euro negative comments from German Chancellor Merkel. USD/JPY (^USDJPY) is up +0.36 (+0.29%).
Sep T-note prices (ZNU15 +0.01%) are down -4.5 ticks.
EUR/USD moved lower after German Chancellor Merkel said that a too-strong euro makes it harder “for countries like Portugal, Spain, Ireland, but especially Spain and Portugal,” to harvest the fruits of their economic reforms, especially in terms of exports.
Key U.S. news today includes: (1) May final-demand PPI (expected +0.4% m/m and -1.1% y/y after April’s -0.4% m/m and -1.3% y/y) and May final-demand core PPI (expected +0.1% m/m and +0.7% y/y after April’s -0.2% m/m and +0.8% y/y), and (2) preliminary-June U.S. consumer sentiment index from the University of Michigan (expected +0.5 to 91.2 after May’s -5.2 to 90.7).
None of the Russell 1000 companies report earnings today.
U.S. IPO’s scheduled to price today include: none.
Equity conferences during the remainder of this week include: Apple’s Worldwide Developer’s Conference (WWDC15) on Mon-Fri, Barclays High Yield Bond and Syndicated Loan Conference on Thu-Fri.
Keurig Green Mountain (GMCR +0.15%) was downgraded to ‘Neutral’ from ‘Buy’ at UBS.
Host Hotels (HST +0.77%) was upgraded to ‘Buy’ from ‘Hold’ at Stifel.
Actuant (ATU +1.62%) was upgraded to ‘Outperform’ from ‘Sector Perform’ at RBC Capital.
Mondelez (MDLZ -0.02%) was upgraded to ‘Outperform’ from ‘Market Perform’ at BMO Capital.
Monster Beverage (MNST +0.11%) was upgraded to ‘Buy’ from ‘Neutral’ at UBS.
Williams-Sonoma (WSM +0.67%) upgraded to ‘Outperform’ from ‘Perform’ with a $ 90 price target at Oppenheimer.
Citrix (CTXS +6.70%) was upgraded to ‘Neutral’ from ‘Underweight’ at Piper Jaffray.
Novartis (NVS +0.13%) announced that the U.S. FDA has approved its drug Promacta for the treatment of children six years and older with chronic immune thrombocytopenia.
Bob Evans (BOBE +0.30%) rose over 3% in after-hours trading after the company said it will pursue a strategic transaction for a select portion of its restaurant properties.
The WSJ reports that DISH (DISH +0.33%) is in talks to borrow $ 10 billion-$ 15 billion for its T-Mobile bid.
Raytheon (RTN +1.19%) was awarded a $ 152.9 million government contract to provide 53 APY-10 radar system production kits and related support for the P-8A Poseidon full-rate production aircraft for the Navy and the government of Australia.
Twitter (TWTR -0.03%) jumped more than 4% in after-hours trading after CEO Richard Costolo said he will step down and be replaced by Jack Dorsey, co-Founder and Chairman of the board, in the interim.
Restoration Hardware (RH -1.03%) reported Q1 adjusted EPS of 23 cents, higher than consensus of 20 cents, and then raised guidance on fiscal 2015 adjusted EPS to $ 3.02-$ 3.15 from $ 2.95-$ 3.10, above consensus at $ 3.04.
September E-mini S&Ps (ESU15 -0.40%) this morning are down -4.75 points (-0.23%). Thursday’s closes: S&P 500 +0.17%, Dow Jones +0.22%, Nasdaq +0.07%. The S&P 500 on Thursday closed higher on the strong U.S. May retail sales ex-autos report of +1.0% (stronger than expectations of +0.8%) and on reduced Chinese economic concerns after China May industrial production and China May new yuan loans both rose more than expected. Stocks were undercut by pessimism about a Greek bailout deal after the IMF negotiating team withdrew from the Greek debt talks in Brussels and said that “major differences remain.”
Sep 10-year T-notes (ZNU15 +0.01%) this morning are down -4.5 ticks. Thursday’s closes: TYU5 +22.50, FVU5 +9.50. Sep T-notes on Thursday recovered from an 8-month low and closed higher on carryover support from a rally in German bunds and strong demand for the Treasury’s $ 13 billion auction of 30-year T-bonds that had a bid-to-cover ratio of 2.54, higher than the 12-auction average of 2.41.
The dollar index (DXY00 +0.45%) this morning is up +0.480 (+0.51%). EUR/USD (^EURUSD) is down -0.0070 (-0.62%). USD/JPY (^USDJPY) is up +0.36 (+0.29%). Thursday’s closes: Dollar Index +0.330 (+0.35%), EUR/USD -0.00664 (-0.59%), USD/JPY +0.735(+0.60%). The dollar index on Thursday closed higher on the strong U.S. May retail sales report of +1.2% and weakness in EUR/USD after the IMF’s negotiating team withdrew Thursday from the Greek debt talks and said that “major differences remain.”
July WTI crude oil (CLN15 -0.94%) this morning is down -61 cents (-1.00%). July gasoline (RBN15 -1.31%) is down -0.0302 (-1.41%). Thursday’s closes: CLN5 -0.66 (-1.07%), RBN5 -0.0289 (-1.35%). Jul crude and gasoline prices on Thursday closed lower on the stronger dollar and concern that the global oil glut will persist after the IEA reported that Saudi Arabian May oil production rose to a record 10.25 million bpd and that Iraq May crude output rose to a record 3.85 million bpd.
|US||0830 ET||May PPI final demand expected +0.4% m/m and -1.1% y/y, Apr -0.4% m/m and -1.3% y/y. May PPI ex food & energy expected +0.1% m/m and +0.7% y/y, Apr -0.2% m/m and +0.8% y/y.|
|1000 ET||Preliminary U.S. Jun University of Michigan consumer sentiment expected +0.5 to 91.2, May -5.2 to 90.7.|
|JPN||0030 ET||Revised Japan industrial production, prelim +1.0% m/m and -0.1% y/y.|
|0030 ET||Japan Apr capacity utilization, Mar -1.2% m/m.|
|0030 ET||Japan Apr tertiary industry index expected +0.4% m/m, Mar -1.0% m/m.|
|GER||0200 ET||German May wholesale price index, Apr +0.4% m/m and -0.9% y/y.|
|UK||0430 ET||UK Apr construction output expected +0.1% m/m and +0.5% y/y, Mar +3.9% m/m and +1.6% y/y.|
|EUR||0500 ET||Eurozone Apr industrial production expected +0.4% m/m and +1.1% y/y, Mar -0.3% m/m and +1.8% y/y.|
|WW Grainger Inc||GWW US||8:00||May 2015 Sales and Revenue Call||2015|
|WW Grainger Inc||GWW US||8:00||May 2015 Sales and Revenue Release||2015|
|Centene Corp||CNC US||8:30||Investor Day||Y 2015|
|White Mountains Insurance Group Ltd||WTM US||10:00||Investor Meeting||Y 2015|
|Signet Jewelers Ltd||SIG US||10:00||Annual General Meeting||Y 2015|
|Regeneron Pharmaceuticals Inc||REGN US||10:30||Annual General Meeting|
|E*TRADE Financial Corp||ETFC US||May 2015 Sales and Revenue Release – Activity Report||2015|