Live Index – Fri, 19 Jun 2015 Premarket
September E-mini S&Ps (ESU15 +0.07%) are up +0.09% and European stocks are up +1.32% on optimism a resolution to Greek debt talks is close and that any fallout of a potential Greek exit from the Eurozone will be contained. According to three people with knowledge of the matter, the ECB plans to hold an emergency session of its Governing Council today to discuss the deteriorating liquidity situation of Greek banks. That led to a rally in Greek bank stocks on optimism that the ECB is preparing to maintain its emergency lifeline to Greek lenders. European leaders will hold an emergency Summit on Greece this Monday, Jun 22 in Brussels. Asian stocks closed mixed: Japan +0.92%, Hong Kong +0.25%, China -6.42%, Taiwan closed for holiday, Australia +1.31%, Singapore +0.02%, South Korea +0.07%, India +0.74%. China’s Shanghai Composite Index tumbled to a 3-week low on valuation concerns. The index has lost 13% this week as it corrects lower from the 7-1/3 year high posted on Jun 12.
Commodity prices are mostly lower. Jul crude oil (CLN15 -1.54%) is down -1.41%, Jul gasoline (RBN15 -1.46%) is down -1.42%. Metals prices are weaker. Aug gold (GCQ15 -0.01%) is down -0.21%. Jul copper (HGN15 -1.30%) is down -1.42% at a 3-month low on Chinese demand concerns. Agricultural prices are lower.
The dollar index (DXY00 +0.44%) is up +0.46%. EUR/USD (^EURUSD) is down -0.46%. USD/JPY (^USDJPY) is up +0.14%.
Sep T-note prices (ZNU15 +0.27%) are up +9.5 ticks.
As expected, the BOJ after its 2-day policy meeting maintained its pledge to expand the monetary base at an annual pace of 80 trillion yen ($ 651 billion). BOJ Governor Kuroda reaffirmed that inflation remains on track to meet the BOJ’s 2% target around the first half of next fiscal year and said that “so far a weakening of the yen won’t be an obstacle to the flexibility of monetary policy.” That signals the BOJ is not concerned about the recent plunge in the yen to a 13-year low against the dollar.
Key U.S. news today includes: (1) a speech by San Francisco Fed President John Williams on monetary policy at the National Bureau of Economic Research East Asian Seminar on Economics in San Francisco.
There is one of the Russell 1000 companies that report earnings today: CarMax (consensus $ 0.85).
U.S. IPO’s scheduled to price today include: none.
Equity conferences during the remainder of this week include: none.
Micron (MU -0.04%) was upgraded to ‘Buy’ from ‘Hold’ at Topeka.
RE/MAX Holdings (RMAX +0.50%) was initiated with an ‘Overweight’ at Stephens with a price target of $ 41.
Fiserv (FISV +2.17%) was upgraded to ‘Outperform’ from ‘Perform’ at Oppenheimer witha price target of $ 95.
Consolidated Edison (ED +1.65%) was upgraded to ‘Hold’ from ‘Sell’ at Evercore ISI.
Public Storage (PSA +1.90%) was downgraded to ‘Hold’ from ‘Buy’ at Cantor Fitzgerald.
Energy Transfer Partners (ETP +1.37%) and NuStar Energy (NS -0.03%) were both upgraded to ‘Buy’ from ‘Neutral’ at BofA/Merrill Lynch.
BioMarin (BMRN +12.18%) was downgraded to ‘Neutral’ from ‘Outperform’ at Baird.
EP Energy (EPE -1.35%) was upgraded to ‘Buy’ from ‘Neutral’ at SunTrust.
British Petroleum (BP +0.12%) was downgraded to ‘Sector Perform’ from ‘Outperform’ at RBC Capital.
Oshkosh Defense (OSK -0.99%) was awarded a $ 780.4 million government contract to recapitalize 1,363 Heavy Expanded Mobility Tactical Trucks, or HEMTTs, and 435 palletized load systems, or PLS, as well as 1,022 new palletized load system trailers.
Comcast (CMCSA +1.44%) filed to sell 2.66 million shares of Class A common stock for holders.
Gabelli reports a 5.94% stake in Rally Software (RALY -0.05%) .
Red Hat (RHT +0.29%) reported Q1 EPS of 44 cents, higher than consensus of 41 cents, and then raised guidance on fiscal 2016 EPS view to $ 1.81-$ 1.84 from $ 1.79-$ 1.82, better than consensus $ 1.81.
September E-mini S&Ps (ESU15 +0.07%) this morning are up +2.00 points (+0.09%). Thursday’s closes: S&P 500 +0.99%, Dow Jones +1.00%, Nasdaq +1.41%. The S&P 500 on Thursday climbed to a 3-1/2 week high and closed sharply higher on positive U.S. economic data (i.e., the -12,000 decline in U.S. weekly jobless claims and the +8.5 point increase in the Jun Philadelphia Fed business outlook survey to a 6-month high of 15.2) and benign inflation pressures that may keep the Fed from raising interest rates after the May core CPI eased to +1.7% y/y from +1.8% in April.
Sep 10-year T-notes (ZNU15 +0.27%) this morning are up +9.5 ticks. Thursday’s closes: TYU5 -10.00, FVU5 -3.00. Sep T-notes on Thursday fell back from a 2-week high and closed lower on the better-than-expected U.S. initial unemployment claims and Philadelphia Fed reports and on reduced safe-haven demand for Treasuries after the S&P 500 rallied sharply to a 3-1/2 week high.
The dollar index (DXY00 +0.44%) this morning is up +0.435 (+0.46%). EUR/USD (^EURUSD) is down -0.0052 (9-0.46%). USD/JPY (^USDJPY) is up +0.17 (+0.14%). Thursday’s closes: Dollar Index -0.254 (-0.27%), EUR/USD +0.00232 (+0.20%), USD/JPY -0.466 (-0.38%). The dollar index on Thursday fell to a 1-month low and closed lower on negative carry-over from the dovish outcome of the FOMC meeting and on the smaller-than-expected increase in U.S. May CPI, which bolsters speculation the Fed will only gradually tighten monetary policy.
July WTI crude oil (CLN15 -1.54%) this morning is down 85 cents (-1.41%). July gasoline (RBN15 -1.46%) is down -0.0299 (-1.42%). Thursday’s closes: CLN5 +0.53 (+0.88%), RBN5 -0.0009 (+0.04%). Jul crude and gasoline on Thursday closed higher on the slide in the dollar index to a 1-month low and on the stronger-than-expected U.S. Jun Philadelphia Fed manufacturing survey, which signals economic strength that benefits energy demand and consumption.
|US||1140 ET||San Francisco Fed President John Williams speaks on monetary policy at the National Bureau of Economic Research East Asian Seminar on Economics in San Francisco.|
|1500 ET||USDA May Cattle on Feed.|
|JPN||0030 ET||Japan Apr all-industry activity index expected +0.2% m/m, Mar -1.3% m/m.|
|0100 ET||Revised Japan Apr leading index CI, previous 107.2. Revised Apr coincident index, previous 111.1.|
|0130 ET||Japan May nationwide department store sales, Apr +13.7% y/y.|
|n/a||BOJ announces interest rate decision and asset purchase target.|
|GER||0200 ET||German May PPI expected +0.2% m/m and -1.1% y/y, Apr +0.1% m/m and -1.5% y/y.|
|UK||0430 ET||UK May public sector net borrowing expected +10.0 billion pounds, Apr +6.0 billion pounds.|
|CarMax Inc||KMX US||Bef-mkt||Q1 2016 Earnings Release||Q1 2016||0.854|
|CarMax Inc||KMX US||9:00||Q1 2016 Earnings Call||Q1 2016|
|Time Warner Inc||TWX US||13:00||Annual General Meeting||Y 2015|
|Fortinet Inc||FTNT US||Annual General Meeting|