Live Index – Tue, 21 Jul 2015 Premarket
September E-mini S&Ps (ESU15 +0.01%) are little changed, up +0.02%. The upside in stocks overnight was limited by a 5% decline in IBM after it reported late yesterday after the markets closed that its sales in Q2 declined for a thirteenth quarter. European stocks are down -0.02%, led by a fall in drug maker stocks as Novartis AG slipped 2% after it reported a decline in Q2 earnings. Asian stocks closed mostly higher: Japan +0.93%, Hong Kong +0.52%, China +0.64%, Taiwan +0.34%, Australia +0.35%, Singapore -0.06%, South Korea +0.58%, India -0.84%. Japan’s Nikkei Stock Index posted a 3-week high and was led higher by a rally in exporters after the yen fell to a 5-week low against the dollar. China’s Shanghai Composite rose to a 2-week high, although 543 companies remained suspended from trading due to trading curbs, down from 576 at the close of trading on Monday.
Commodity prices are mixed. Sep crude oil (CLU15 unch) is down -0.02% at a 3-1/2 month low on concern the global oil glut will persist after Iran’s oil minister said Iran plans to bolster crude production once sanctions are removed regardless of the impact on prices. Sep gasoline (RBU15 -0.97%) is down -1.08%. Metals prices are mixed. Aug gold (GCQ15 +0.05%) is down -0.12%. Sep copper (HGU15 +0.73%) is up +0.91%. Agricultural prices are higher.
The dollar index (DXY00 -0.21%) is down -0.15%. EUR/USD (^EURUSD) is up +0.31%. USD/JPY (^USDJPY) is up +0.08% at a 5-week high.
Sep T-note prices (ZNU15 -0.04%) are up +1.5 ticks on positive carry over from a rally in German bunds which climbed to a 1-week high.
Iranian Oil Minister Bijan Namdar Zanganeh said that once sanctions are removed Iran wants to pump 4 million bpd within seven months and 4.7 million bpd as soon as possible after that. Zanganeh said “our only responsibility here is attaining our lost share of the market, not protecting prices.” Iran’s oil exports declined to 1.4 million bpd on average last year due to sanctions, well below the 2.6 million bpd average exports in 2011, before sanctions were imposed. Iran is in talks with OPEC now and said it wants to boost oil exports by 500,000 bpd 3 to 4 months after sanctions are lifted and seeks to increase crude exports by 1.0 million bpd within a year.
Key U.S. news today includes: (1) annual revisions to U.S. industrial production and capacity utilization data.
There are 22 of the S&P 500 companies that report earnings today with notable reports including: Apple (consensus 1.81), Microsoft ($ 0.58), Yahoo (0.19), Baker Hughes (-0.14), Bank of New York Mellon (0.66), Harley-Davidson (1.39), Chipotle (4.44).
U.S. IPO’s scheduled to price today include: Blue Buffalo Pet Products (BUFF).
Equity conferences during the remainder of this week include: BIO World Congress on Industrial Biotechnology Conference on Mon, Wells Fargo Securities Telecom Symposium on Thu.
The Travelers Cos. (TRV -0.32%) reported Q2 EPS of $ 2.52, well above consensus of $ 2.12.
Verizon Communications (VZ +1.07%) reported Q2 EPS of $ 1.04, higher than consensus of $ 1.01.
Coca-Cola (KO +0.32%) was initiated with a ‘Buy’ at Sterne Agee CRT with price target of $ 46 and Dr Pepper Snapple (DPS +0.61%) was initiated with a ‘Buy’ at Sterne Agee CRT with a price target of $ 88.
Harley-Davidson (HOG -0.04%) reported Q2 EPS of $ 1.44, better than consensus of $ 1.39.
AB InBev (BUD +0.01%) was initiated with a ‘Buy’ at Sterne Agee CRT with a price target of $ 147.
PepsiCo (PEP +0.55%) was initiated with a ‘Buy’ at Sterne Agee CRT with a price target of $ 108.
Colgate-Palmolive (CL +0.44%) was initiated with a ‘Buy’ at Sterne Agee CRT with a price target of $ 75.
AvalonBay (AVB +0.11%) was initiated with a ‘Buy’ at SunTrust wit a price target of $ 191.
eBay (EBAY -56.90%) was downgraded to ‘Hold’ from ‘Buy’ at Stifel.
PayPal (PYPL +5.42%) climbed 3% in pre-market trading after it was initiated with a ‘Buy’ at BTIG with a price target of $ 48.
Woodward (WWD -0.30%) reported Q3 EPS of 66 cents, below consensus of 71 cents.
Monster Beverage (MNST +1.92%) was initiated with a ‘Buy’ at Sterne Agee CRT with a price target of $ 160.
Hexcel (HXL +1.30%) reported Q2 EPS of 63 cents, above consensus of 61 cents.
Sanmina (SANM +0.53%) jumped 8% in after-hours trading after it reported Q3 adjusted EPS of 53 cents, higher than consensus of 49 cents.
International Business Machines (IBM +0.41%) slid 5% in after-hours trading after it reported Q2 EPS of $ 3.84, better than consensus of $ 3.78, but Q2 revenue of $ 20.8 billion was less than expectations of $ 20.95 billion as sales declined for a thirteenth quarter.
Werner (WERN +0.36%) reported Q2 EPS of 44 cents, above consensus of 42 cents. although Q2 revenue of $ 534.64 million wsa below consensus of $ 539.65 million.
September E-mini S&Ps (ESU15 +0.01%) this morning are up +0.50 of a point (+0.02%). Monday’s closes: S&P 500 +0.08%, Dow Jones +0.08%, Nasdaq +0.39%. The S&P 500 on Monday posted a 1-3/4 month high on (1) carry-over support from a rally in European stocks as Grexit concerns further receded as Greek banks reopened and Greece made its ECB payment, and (2) a rally in technology stocks that took the Nasdaq Composite Index up to a fresh 15-1/4 year high. On the negative side, energy and commodity producers fell after crude oil slid to a 3-1/2 month low and gold sank to a 5-1/3 year low.
Sep 10-year T-notes (ZNU15 -0.04%) this morning are up +1.5 ticks. Monday’s closes: TYU5 -7.50, FVU5 -5.25. Sep T-notes on Monday closed lower on reduced safe-haven demand with the rally in stocks and hawkish comments from St. Louis Fed President Bullard who said the Fed has to start “thinking ahead” about rate policy and move off of emergency settings.
The dollar index (DXY00 -0.21%) this morning is down -0.151 (-0.15%). EUR/USD (^EURUSD) is up +0.0034 (+0.31%). USD/JPY (^USDJPY) is up +0.10 (+0.08%) at a 5-week high. Monday’s closes: Dollar Index +0.167 (+0.17%), EUR/USD -0.00026 (-0.02%), USD/JPY +0.218 (+0.18%). The dollar index on Monday rose to a 2-3/4 month high and closed higher on St. Louis Fed President Bullard’s hawkish comment that he sees “more than a 50% chance” of an interest rate increase in Sep.
Sep WTI crude oil (CLU15 unch) this morning is down -1 cent (-0.02%) after posting a fresh 3-1/2 month low in overnight trade. Sep gasoline (RBU15 -0.97%) is down -0.0203 (-1.08%). Monday’s closes: CLU5 -0.77 (-1.50%), RBU5 +0.0009 (+0.05%). Sep crude and gasoline Monday settled mixed with Sep crude at a 3-1/2 month low. Crude oil prices fell on the rally in the dollar index to a 2-3/4 month high and on comments from Iran’s oil minister who said that Iran wants to pump 4 million bpd of crude oil within 7 months once sanction against it are removed. Gasoline prices were boosted by the rally in the S&P 500 to a 1-3/4 month high.
|US||n/a||Annual revisions to U.S. industrial production and capacity utilization data.|
|JPN||0100 ET||Revised Japan May leading index CI, previous 106.2. Revised May coincident index, previous 109.2.|
|0130 ET||Japan Jun nationwide department store sales, May +6.3% y/y|
|UK||0430 ET||UK Jun public sector net borrowing expected +8.7 billion pounds, May +9.4 billion pounds.|
|Baker Hughes Inc||BHI US||Bef-mkt||Q2 2015 Earnings Release||Q2 2015||-0.138|
|TEGNA Inc||TGNA US||Bef-mkt||Q2 2015 Earnings Release||Q2 2015||0.413|
|Omnicom Group Inc||OMC US||Bef-mkt||Q2 2015 Earnings Release||Q2 2015||1.219|
|United Technologies Corp||UTX US||Bef-mkt||Q2 2015 Earnings Release||Q2 2015||1.716|
|Pentair PLC||PNR US||Bef-mkt||Q2 2015 Earnings Release||Q2 2015||0.95|
|Prologis Inc||PLD US||Bef-mkt||Q2 2015 Earnings Release||Q2 2015||0.516|
|Regions Financial Corp||RF US||6:00||Q2 2015 Earnings Release||Q2 2015||0.2|
|Bank of New York Mellon Corp/The||BK US||6:30||Q2 2015 Earnings Release||Q2 2015||0.663|
|Fifth Third Bancorp||FITB US||6:30||Q2 2015 Earnings Release||Q2 2015||0.391|
|Travelers Cos Inc/The||TRV US||6:57||Q2 2015 Earnings Release||Q2 2015||2.12|
|Dover Corp||DOV US||7:00||Q2 2015 Earnings Release||Q2 2015||0.993|
|Harley-Davidson Inc||HOG US||7:00||Q2 2015 Earnings Release||Q2 2015||1.394|
|Verizon Communications Inc||VZ US||7:30||Q2 2015 Earnings Release||Q2 2015||1.008|
|Bank of New York Mellon Corp/The||BK US||8:00||Q2 2015 Earnings Call||Q2 2015|
|Verizon Communications Inc||VZ US||8:30||Q2 2015 Earnings Call||Q2 2015|
|Omnicom Group Inc||OMC US||8:30||Q2 2015 Earnings Call||Q2 2015|
|United Technologies Corp||UTX US||8:30||Q2 2015 Earnings Call||Q2 2015|
|Harley-Davidson Inc||HOG US||9:00||Q2 2015 Earnings Call||Q2 2015|
|Travelers Cos Inc/The||TRV US||9:00||Q2 2015 Earnings Call||Q2 2015|
|Fifth Third Bancorp||FITB US||9:00||Q2 2015 Earnings Call||Q2 2015|
|Pentair PLC||PNR US||9:00||Q2 2015 Earnings Call||Q2 2015|
|Dover Corp||DOV US||10:00||Q2 2015 Earnings Call||Q2 2015|
|TEGNA Inc||TGNA US||10:00||Q2 2015 Earnings Call||Q2 2015|
|Citigroup Inc||C US||11:00||Q2 2015 Earnings Call – Fixed Income||C2 2015|
|Prologis Inc||PLD US||11:00||Q2 2015 Earnings Call||Q2 2015|
|Regions Financial Corp||RF US||11:00||Q2 2015 Earnings Call||Q2 2015|
|Chipotle Mexican Grill Inc||CMG US||16:00||Q2 2015 Earnings Release||Q2 2015||4.442|
|ACE Ltd||ACE US||16:05||Q2 2015 Earnings Release||Q2 2015||2.286|
|Yahoo! Inc||YHOO US||16:05||Q2 2015 Earnings Release||Q2 2015||0.186|
|Intuitive Surgical Inc||ISRG US||16:05||Q2 2015 Earnings Release||Q2 2015||3.994|
|Intuitive Surgical Inc||ISRG US||16:30||Q2 2015 Earnings Call||Q2 2015|
|Chipotle Mexican Grill Inc||CMG US||16:30||Q2 2015 Earnings Call||Q2 2015|
|Apple Inc||AAPL US||17:00||Q3 2015 Earnings Call||Q3 2015|
|Yahoo! Inc||YHOO US||17:00||Q2 2015 Earnings Call||Q2 2015|
|Apple Inc||AAPL US||Aft-mkt||Q3 2015 Earnings Release||Q3 2015||1.806|
|Microsoft Corp||MSFT US||Aft-mkt||Q4 2015 Earnings Release||Q4 2015||0.58|
|Linear Technology Corp||LLTC US||Aft-mkt||Q4 2015 Earnings Release||Q4 2015||0.562|
|FMC Technologies Inc||FTI US||Aft-mkt||Q2 2015 Earnings Release||Q2 2015||0.61|
|Navient Corp||NAVI US||Aft-mkt||Q2 2015 Earnings Release||Q2 2015||0.397|
|Microsoft Corp||MSFT US||17:30||Q4 2015 Earnings Call||Q4 2015|