Live Index – Thu, 23 Jul 2015 Premarket

September E-mini S&Ps (ESU15 +0.06%) are up +0.14% and European stocks are up +0.09% led by an increase in M&A activity. Cigna rose nearly 7% in pre-market trading after people familiar with the matter said Anthem is close to a deal to buy Cigna for $ 48 billion. Also, technology stocks are higher, led by a 13% surge in SanDisk, after the company reported Q2 earnings that were nearly double analysts’ estimates. Representatives of Greece’s creditor institutions will meet in Athens on Friday to hold formal negotiations on a new bailout after the Greek parliament passed a second round of reforms needed for a bailout. A Greek government official said decisions about reopening the Athens Stock Exchange and Greek financial markets will be deferred to next week. Asian stocks closed mixed: Japan +0.44%, Hong Kong +0.46%, China +2.43%, Taiwan -1.43%, Australia -0.43%, Singapore -0.08%, South Korea -0.23%, India -0.47%. Japanese stocks closed higher after Japan Jun exports rose by the most in 5 months, and China’s Shanghai Composite rallied to a 3-week high, led by gains in financial companies, after data showed margin traders increased holdings of stock purchased on margin debt for a fourth day on Wednesday.

Commodity prices are mostly higher due to a weak dollar. Sep crude oil (CLU15 +0.08%) is up +0.06%. Sep gasoline (RBU15 +0.84%) is up +0.74%. Metals prices are mixed. Aug gold (GCQ15 +0.80%) is up +0.84%. Sep copper (HGU15 +0.14%) is down -0.04%. Agricultural prices are higher.

The dollar index (DXY00 -0.63%) is down -0.56% at a 1-week low. EUR/USD (^EURUSD) is up +0.59% at a 1-week high after Greece’s parliament approved a second round of reforms needed for a bailout. USD/JPY (^USDJPY) is down -0.14%.

Sep T-note prices (ZNU15 +0.01%) are up +1 tick.

The Japan Jun trade balance narrowed to a -69.0 billion yen deficit from a downward revised -217.2 billion yen deficit in May, weaker than expectations of a +45.8 billion yen surplus. Jun exports rose +9.5% y/y, weaker than expectations of +10.0% y/y, although the largest increase in 5 months. Jun imports fell -2.9% y/y, a smaller decline than expectations of -4.3% y/y.

Key U.S. news today includes: (1) weekly initial unemployment claims (expected -3,000 to 278,000 after last week’s -15,000 to 281,000) and continuing claims report (expected +25,000 to 2.240 million after last week’s -112,000 to 2.215 million), (2) Jun Chicago Fed national activity index (expected +0.12 to -0.05 after May’s +0.02 to -0.17), (3) Jun leading indicators (expected +0.3% after May’s +0.7%), (4) Jul Kansas City Fed manufacturing activity (expected +4 to -5 after June’s +4 to -9), (5) the Treasurys’s auction of $ 15 billion of 10-year TIPS.

There are 56 of the S&P 500 companies that report earnings today with notable reports including: Amazon.com (consensus -0.14), Visa ($ 0.58), AT&T (0.64), Starbucks (0.41), Caterpillar ($ 1.26), McDonald’s (1.23), PulteGroup (0.26), Comcast (0.84), GM (1.08), Nasdaq (0.80), Under Armour (0.05), E-Trade (0.27).

U.S. IPO’s scheduled to price today include: Exelixis (EXEL).

Equity conferences during the remainder of this week include: Wells Fargo Securities Telecom Symposium on Thu.

Eli Lilly (LLY +0.95%) gained 3% in pre-market trading after it reported Q2 EPS of 90 cents, well above consensus of 74 cents.

Texas Instruments (TXN -1.85%) reported Q2 EPS of 65 cents, right on consensus, although Q2 revenue of $ 3.23 billion was below consensus of $ 3.26 billion.

Equifax (EFX +0.76%) reported Q2 adjusted EPS of $ 1.15, above consensus of $ 1.10.

United Rentals (URI -1.45%) slid 5% in after-hours trading after it reported Q2 adjusted EPS of $ 1.95, better than consensus of $ 1.74, but then lowered guidance on fiscal 2015 revenue view to $ 5.8 billion-$ 5.9 billion from $ 6 billion-$ 6.1 billion, lower than consensus of $ 6 billion.

Cheesecake Factory (CAKE +1.83%) reported Q2 EPS of 69 cents, higher than consensus of 62 cents.

Crown Castle (CCI -0.22%) reported Q2 AFFO of $ 1.03, less than consensus of $ 1.06.

Fortune Brands (FBHS +0.14%) reported Q2 adjusted EPS of 59 cents, higher than consensus of 57 cents.

Covanta (CVA -2.06%) reported an unexpected Q2 EPS loss of -6 cents, below consensus of a 3 cent profit.

Discover (DFS +0.12%) reported Q2 EPS of $ 1.33, better than consensus $ 1.32, although Q2 revenue of $ 2.18 billion was below consensus of $ 2.22.

F5 Networks (FFIV +0.19%) reported Q3 EPS of $ 1.67, higher than consensus of $ 1.60.

Tractor Supply (TSCO +1.34%) reported Q2 EPS of $ 1.12, above consensus of $ 1.11.

Las Vegas Sands (LVS +0.24%) reported Q2 adjusted EPS of 60 cents, less than consensus of 61 cents.

American Express (AXP +0.05%) reported Q2 EPS of $ 1.42, better than consensus of $ 1.32.

Plexus (PLXS -0.28%) reported Q3 EPS of 69 cents, below consensus of 70 cents.

Qualcomm (QCOM -1.46%) dropped 2% in after-hours trading after it reported Q3 adjusted EPS of 99 cents, higher than consensus of 95 cents, but then lowered guidance on fiscal 2015 adjusted EPS view to $ 4.50-$ 4.70 from $ 4.60-$ 5.00, below consensus of $ 4.79.

September E-mini S&Ps (ESU15 +0.06%) this morning are up +3.00 points (+0.14%). Wednesday’s closes: S&P 500 -0.24%, Dow Jones -0.38%, Nasdaq -1.09%. The S&P 500 on Wednesday closed lower on a slide in technology stocks due to disappointing earnings results from the likes of Apple, Microsoft and Yahoo, and weakness in basic-resource companies after commodity prices plunged. Stocks recovered from their worst levels after U.S. Jun existing home sales rose by +3.2% to an 8-1/3 year high of 5.49 million units.

Sep 10-year T-notes (ZNU15 +0.01%) this morning are up +1 tick. Wednesday’s closes: TYU5 +3.50, FVU5 -1.00. Sep T-notes in Wednesday rose to a 1-week high and closed higher on increased safe-haven demand for T-notes after stock prices tumbled and on reduced inflation expectations as the 10-year T-note break-even inflation rate fell to a 1-3/4 month low.

The dollar index (DXY00 -0.63%) this morning is down -0.547 (-0.56%) at a 1-week low. EUR/USD (^EURUSD) is up +0.0064 (+0.59%) at a 1-week high. USD/JPY (^USDJPY) is down -0.17 (-0.14%). Wednesday’s closes: Dollar Index +0.270 (+0.28%), EUR/USD -0.00075 (-0.07%), USD/JPY +0.07 (+0.06%). The dollar index on Wednesday closed higher on the stronger-than-expected U.S. June existing home sales report of +3.2% to an 8-1/3 year high of 5.49 million units and on weakness in the commodity currencies of Canada, Australia and New Zealand against the dollar after the CRB commodity price index fell to a 3-month low.

Sep WTI crude oil (CLU15 +0.08%) this morning is up +3 cents (+0.06%). Sep gasoline (RBU15 +0.84%)is up +0.0134 (+0.74%). Wednesday’s closes: CLU5 -1.67 (-3.28%), RBU5 -0.0556 (-2.97%). Sep crude and gasoline on Wednesday closed sharply lower with Sep crude at a 3-1/2 month low on the (1) a stronger dollar, (2) the unexpected +2.47 million bbl increase in weekly EIA crude inventories, more than expectations of a -1.75 million bbl draw, and (3) the +813,000 bbl increase in crude supplies at Cushing, OK, the delivery point of WTI futures, the fourth straight increase.