Live Index – Thu, 09 Jul 2015 Premarket
September E-mini S&Ps (ESU15 +1.02%) are up +1.01% and European stocks are up +1.74% following a rebound in Chinese equities. Greece extended its bank holiday and capital controls through Monday and has until midnight Thursday to present European leaders with a plan that includes spending cuts in exchange for fresh bailout funds. European leaders will then meet on Sunday to decide their response to the proposals. Asian stocks closed mostly higher: Japan +0.60%, Hong Kong +3.73%, China +5,76%, Taiwan -0.69%, Australia +0.03%, Singapore -0.54%, South Korea +0.75%, India -0.41%. China’s Shanghai Composite recovered from a 3-3/4 month low and closed higher after regulators banned majority stockholders from selling their shares for at least 6 months. Investors continue to sell shares bought on margin funds as data showed traders unloaded a record 112 billion yuan ($ 18 billion) of shares bought with borrowed money on the Shanghai exchange Wednesday, the 13th straight day of declines.
Commodity prices are mixed. Aug crude oil (CLQ15 +2.88%) is up +1.65%, Aug gasoline (RBQ15 +0.85%) is down -0.60%. Metals prices are mixed. Aug gold (GCQ15 -0.11%) is down -0.16%. Sep copper (HGU15 +1.62%) is up +1.40%. Agricultural prices are higher.
The dollar index (DXY00 +0.10%) is up +0.21%. EUR/USD (^EURUSD) is down -0.23%. USD/JPY (^USDJPY) is up +0.68%.
Sep T-note prices (ZNU15 -0.31%) are down -11 ticks as the rally in global stocks reduces the safe-haven demand for Treasuries.
As Greece extended its bank holiday and capital controls through Monday, the ECB on Wednesday kept the cap on Emergency Liquidity Assistance (ELA) to Greece’s central bank at 88.6 billion euros, the level it has been frozen at since Jun 26. A Greek official with direct knowledge of the matter said at the current level of ELA, Greek banks have sufficient liquidity to last through Monday.
As expected, the BOE at the conclusion of today’s policy meeting kept its benchmark interest rate at 0.50% and maintained its asset purchase target at 375 billion pounds.
Key U.S. news today includes: (1) weekly initial unemployment claims (expected -6,000 to 275,000 after last week’s +10,000 to 281,000) and continuing claims (expected -14,000 to 2.250 million after last week’s +15,000 to 2.264 million), (2) the Treasury’s auction of $ 13 billion of 30-year T-bonds, (3) an appearance by Minneapolis Fed President Narayana Kocherlakota on central banks and fiscal authorities as a panelist at the Deutsche Bundesbank Conference, and (4) a speech by Kansas City Fed President Esther George on the U.S. economy and monetary policy at OSU in Stillwater, OK.
There are two of the Russell 1000 companies that report earnings today: PepsiCo (consensus $ 1.24), Walgreens (0.87).
U.S. IPO’s scheduled to price today include: none.
Equity conferences this week: none.
Knight Transportation (KNX -0.52%) was upgraded to ‘Outperform’ from ‘Neutral’ at Credit Suisse.
Con-way (CNW -3.88%) was downgraded to ‘Neutral’ from ‘Outperform’ at Credit Suisse.
Regeneron (REGN -1.61%) was downgraded to ‘Sell’ from ‘Neutral’ at UBS.
J.B. Hunt (JBHT -1.45%) was upgraded to ‘Buy’ from ‘Neutral’ at Longbow.
Amgen (AMGN -1.98%) was downgraded to ‘Neutral’ from ‘Buy’ at UBS.
Dunkin’ Brands (DNKN -1.60%) was downgraded to ‘Neutral’ from ‘Buy’ at Goldman Sachs.
Panera Bread (PNRA -0.47%) was upgraded to ‘Neutral’ from ‘Sell’ at Goldman Sachs.
Conn’s (CONN -2.21%) reports that its June same-store-sales were up +1.1% y/y.
HSBC (HSBC -2.68%) was upgraded to ‘Neutral’ from ‘Underperform’ at Exane BNP Paribas.
Costco (COST -0.43%) reports that its June same-store-sales were down 1% y/y.
Walgreens Boots Alliance (WBA -1.54%) reported Q3 EPS of $ 1.02, stronger than consensus of 87 cents.
PepsiCo (PEP -0.82%) jumped over 2% in pre-market trading after it reported Q2 EPS of $ 1.32, higher than consensus of $ 1.24.
Yahoo! (YHOO -2.62%) rose over 2% in pre-market tradign after the company said it will roll out a new sports-fantasy service designed for use on mobile devices.
Alcoa (AA -5.06%) reported Q2 EPS of 19 cents, below consensus of 23 cents.
Celgene Rivot reported a 9.1% stake in Juno Therapeutics (JUNO -6.24%) .
September E-mini S&Ps (ESU15 +1.02%) this morning are up +20.50 points (+1.01%) as Chinese stocks stabilized. Wednesday’s closes: S&P 500 -1.67%, Dow Jones -1.47%, Nasdaq -1.75%. The S&P 500 on Wednesday closed sharply lower on Grexit concerns, the plunge in China’s Shanghai Composite to a 3-1/2 month low, and the +$ 16.086 billion increase in U.S. May consumer credit, less than expectations of +$ 18.5.
Sep 10-year T-notes (ZNU15 -0.31%) this morning are down -11 ticks. TYU5 +8.00, FVU5 +6.00. Sep T-notes on Wednesday rose to a 5-week high and closed higher on (1) safe-haven demand from concerns about Grexit and the plunge in the Chinese stock market, and (2) expectations that the Fed’s first rate hike will be delayed by Greek and Chinese concerns.
The dollar index (DXY00 +0.10%) this morning is up +0.201 (+0.21%). EUR/USD (^EURUSD) is down -0.0026 (-0.23%). USD/JPY (^USDJPY) is up +0.82 (+0.68%). Dollar Index -0.637 (-0.66%), EUR/USD +0.00649 (+0.59%), USD/JPY -1.829 (-1.49%). The dollar index on Wednesday closed lower on some safe-haven demand for the yen and a rally in EUR/USD tied to relief that the ECB maintained the Greek 89 billion euro ELA lifeline.
Aug WTI crude oil (CLQ15 +2.88%) this morning is up +85 cents (+1.65%). Aug gasoline (RBQ15 +0.85%) is down -0.0119 (-0.60%). CLQ5 -0.68 (-1.30%), RBQ5 +0.0572 (+2.93%). Aug crude and gasoline on Wednesday settled mixed. The EIA report was bearish with the +384,000 bbl increase in EIA crude inventories, more than expectations for no change, and the +1.22 million bbl increase in EIA gasoline supplies, more than expectations of no change. Other negative factors included concern about the negative economic fall-out from Greece and China and expectations that Iranian oil exports will double if there is a near-term Iranian nuclear agreement. The main supportive factor for crude oil prices was the weaker dollar.
|US||0545 ET||Minneapolis Fed President Narayana Kocherlakota speaks on central banks and fiscal authorities as a panelist at the Deutsche Bundesbank Conference.|
|0830 ET||Weekly initial unemployment claims expected -6,000 to 275,000, previous +10,000 to 281,000. Weekly continuing claims expected -14,000 to 2.250 million, previous +15,000 to 2.264 million.|
|0830 ET||USDA weekly Export Sales.|
|1300 ET||Kansas City Fed President Esther George speaks on the U.S. economy and monetary policy at OSU in Stillwater, OK.|
|1300 ET||Treasury auctions $ 13 billion of 30-year T-bonds.|
|GER||0200 ET||German May trade balance expected +20.5 billion euros, Apr +21.8 billion euros. May exports expected -0.8% m/m, Apr +2.0% y/y. May imports expected +0.1% m/m, Apr -0.8% y/y.|
|0200 ET||German May current account balance expected +16.0 billion euros, Apr +19.6 billion euros.|
|JPN||0200 ET||Japan Jun machine tool orders, May +15.0% y/y.|
|1950 ET||Japan Jun PPI expected -0.1% m/m and -2.2% y/y, May +0.3% m/m and -2.1% y/y.|
|UK||0700 ET||BOE announces interest rate decision and asset purchase target, expected no change to the 0.50% benchmark rate or to the 375 billion pound asset purchase target.|
|CHI||n/a||China Jun new yuan loans expected +1.050 trillion yuan, May +900.8 billion yuan.|
|American Airlines Group Inc||AAL US||Bef-mkt||June 2015 Sales and Revenue Release – Traffic Results||2015|
|PepsiCo Inc||PEP US||6:30||Q2 2015 Earnings Release||Q2 2015||1.241|
|Walgreens Boots Alliance Inc||WBA US||7:00||Q3 2015 Earnings Release||Q3 2015||0.871|
|L Brands Inc||LB US||7:30||June 2015 Sales and Revenue Call||2015|
|PepsiCo Inc||PEP US||8:00||Q2 2015 Earnings Call||Q2 2015|
|Walgreens Boots Alliance Inc||WBA US||8:30||Q3 2015 Earnings Call||Q3 2015|
|T-Mobile US Inc||TMUS US||9:00||Un-Carrier Amped Announcement|
|United Continental Holdings Inc||UAL US||Aft-mkt||June 2015 Sales and Revenue Release – Operational Performance||2015|
|Gap Inc/The||GPS US||June 2015 Sales and Revenue Release||2015|
|Eli Lilly & Co||LLY US||FDA Adcomm, necitumumab, first-line squamous non-small cell lung cancer|
|L Brands Inc||LB US||June 2015 Sales and Revenue Release||2015|