Live Index – Tue, 28 Jul 2015 Premarket
Sep E-mini S&Ps (ESU15 +0.48%) this morning are up +0.52% and the EuroStoxx 50 index is up +1.35% on relief that the Chinese stock market today closed only -1.68% lower. U.S. and European stock indexes are also higher today on positive European takeover news today in the European pharma, utility and insurance industries. In one of the $ 15 billion worth of deals announced today, Melrose Industries Plc is up 10% after a deal to sell its metering-company Elster to Honeywell for $ 3.3 billion in cash. In another European deal announced today, Hikma Pharmaceutricals Plc announced that it agreed to buy Boehringer Ingelheim GmbH’s Roxane business for $ 2.7 billion. Mining companies are higher in European trading after the sharp sell-off seen in the past 1-1/2 weeks.
The Chinese Shanghai Composite index on Monday plunged by -8.5% and was down by -5.1% on today’s low, but the market was able to recover somewhat during the remainder of the session to close the day down by only -1.68%. The markets remain concerned that the Chinese government may have given up on some of its support measures but so far the Shanghai index has been able to remain well above the 4-1/2 month low posted on July 9. The markets were somewhat relieved that the Chinese Securities Regulatory Commission late Monday released a statement on its website saying that the agency will continue to “stabilize” the market and “prevent systemic risk.” Chinese stocks are down sharply this week on weekend news that the China July Markit flash manufacturing PMI unexpectedly fell by -1.2 points to a 15-month low of 48.2 and that Chinese June industrial profits fell by -0.3% y/y.
Asian stocks today closed mixed despite continued bearish overhang from the Chinese stock market: Japan -0.10%, Hong Kong +0.62%, China -1.68%, Taiwan +0.30%, Australia -0.09%, Singapore -0.98%, South Korea +0.09%, India -0.37%, Turkey +1.37%.
The dollar index (DXY00 +0.47%) this morning is up +0.406 (+0.42%) as some confidence returns with the upward rebound in U.S. and European stock indexes. EUR/USD (^EURUSD) is down -0.0056 (-0.51%) and USD/JPY (^USDJPY) is up +0.51 (+0.41%). Sep 10-year T-note prices (ZNU15 -0.17%) are down 9 ticks on reduced safe-haven demand with the upward rebound in the U.S. and European stock indexes.
Commodity prices are little changed on net this morning. Sep crude oil (CLU15 -0.55%) is down -0.34 (-0.72%), Sep Brent is down -0.73 (-1.37%), and Sep gasoline (RBU15 -1.22%) is down -0.0227 (-1.28%) as concerns continue about a worsening glut later this year if Iranian sanctions are dropped as expected. Precious metals are down on the upward rebound in the dollar index today with Aug gold (GCQ15 -0.39%) down -4.9 (-0.45%) and Sep silver (SIU15 -0.62%) down -0.040 (-0.27%). However, Sep copper (HGU15 +1.00%) is up +0.024 (+1.02%) on some relief that global stock markets have stabilized today. Grains are mixed today after yesterday’s sharp declines. Sugar, cocoa and cotton are trading higher this morning but cocoa is mildly lower.
Today’s UK Q2 GDP report of +0.7% q/q and +2.6% y/y was in line with market expectations and the quarter-on-quarter report of +0.7% strengthened from Q1’s report of +0.4% q/q.
Greek bailout negotiations are scheduled to begin today in Athens as technical experts from the ECB, EC and IMF meet with their Greek counterparts. EU officials said today there is “no fixed deadline” for an agreement but that they see a deal in the second half of August. Meanwhile a dispute has arisen whether the Greek parliament must take additional measures to qualify for the bailout with the EU Commission saying that more measures will be necessary while the Greek Finance Ministry says that all measures have been taken. However, the Greek finance minister today said that Greece will fully implement the Eurogroup agreements to the last detail.
Key U.S. news today includes: (1) May S&P-CaseShiller composite-20 home price index (expected +0.3% m/m and +5.6% y/y after April’s +0.30% m/m and +4.91% y/y), (2) preliminary-July Markit services PMI (expected +0.2 to 55.0 after June’s -1.4 to 54.8), (3) July U.S. consumer confidence index from the Conference Board (expected -1.4 to 100.0 after June’s +6.8 to 101.4), (4) Jul Richmond Fed manufacturing index (expected +1 to 7 after June’s +5 to 6), and (5) the Treasury’s auction of $ 26 billion of 2-year T-notes.
There are 41 of the S&P 500 companies that report earnings today with notable reports including: UPS (consensus $ 1.26), Ford (0.37), Du Pont (1.22), Nielsen (0.64), Merck (0.81), Cummings (2.55), Pfizer (0.52), Citrix (0.82).
U.S. IPO’s scheduled to price today include: EyeGate Pharmaceuticals (EYEG), Builders FirstSource (BLDR).
Equity conferences this week: none.
Sep E-mini S&Ps this morning are up +0.52% on European takeover deals and relief that the Chinese stock market was able to stabilize today. Monday’s closes: S&P 500 -0.58%, Dow Jones -0.73%, Nasdaq -0.96%. The S&P 500 on Monday extended last week’s losses to post a new 2-week low on the -8.5% plunge in the Shanghai index and technical selling ahead of this week’s FOMC meeting, which could produce a more hawkish FOMC post-meeting statement warning of a Fed rate hike as soon as the next meeting in September.
- Baidu Inc (BIDU -4.16%) is down more than 7% in pre-market trading after the biggest Chinese search engine company missed its quarterly sales estimates. In addition, Deutsche bank today downgraded Baidu to Hold from Buy due to expectations for reduced profit margins on a “massive” increase in spending costs.
- SPX earnings reports this morning have been a bit better than expected on balance. Positive reports include Corning (GLW -0.70%) ($ 0.38 vs consensus of $ 0.37), Airgas (ARG -1.72%) (1.16 vs 1.15), Textron (TXT -1.41%) (0.60 vs 0.59), Wyndham (WYN -1.76%) (1.32 vs 1.26), Nielsen (NLSN -0.82%) (0.66 vs 0.64), Reynolds American (RAI -0.45%) (1.02 vs 0.96), Ford (F +1.11%) (0.47 vs 0.37), Merck (MRK -0.73%) (0.86 vs 0.81), Pfizer (PFE +0.23%) (0.56 vs 0.52), DR Horton (DHI +0.04%) (0.63 vs 0.50), Waters (WAT -0.66%) (1.32 vs 1.27), National Oilwell Varco (NOV -1.35%) (0.77 vs 0.64), Cummins (CMI -0.47%) (2.62 vs 2.55).
- Negative earnings reports this morning include: Precision Castparts (PCP -0.72%) (2.87 vs 3.00), du Pont (DD -0.37%) (1.18 vs 1.21), CONSOL Energy (CNX -1.64%) (-0.37 vs 0.0), Intersoll-Rand (IR -1.52%) (1.20 vs 1.23), Marsh & McLennan (MMC -0.31%) (0.79 vs 0.794), Lab Corp of America (LH -0.38%) (1.79 vs 2.03), Masco (MAS -0.90%) (0.31 vs 0.34).
- GM (GM -0.03%) will spend $ 5 billion in global growth markets, according to the Financial Times.
- Procter & Gamble (PG -0.40%) will name David Taylor as next CEO, according to Dow Jones.
Sep 10-year T-note prices are down 9 ticks on reduced safe-haven demand with the upward rebound in the U.S. and European stock indexes. Monday’s closes: TYU5 +14, FVU5 +9. Sep T-notes on Monday rallied to a 2-1/2 week high on the mixed U.S. durable goods orders report that featured downward revisions for May, and on increased safe-haven demand as the Chinese stock market threatened to resume its free-fall and as the U.S. Dow Jones Industrials index fell to a new 6-month low.
The dollar index this morning is up +0.406 (+0.42%) as some confidence returns with the upward rebound in U.S. and European stock indexes. EUR/USD is down -0.0056 (-0.51%) and USD/JPY is up +0.51 (+0.41%). Monday’s closes: Dollar Index -0.710 (-0.73%), EUR/USD +0.0104 (+0.95%), USD/JPY -0.56 (-0.45%). The dollar index on Monday settled with a fairly sharp loss on long liquidation pressure in the dollar index after its sharp month-long rally, the reduced chance for Fed tightening as Chinese stocks plunged on Monday, and strength in EUR/USD as the chances for Grexit diminish as negotiations begin on Tuesday on the 3-year Greek bailout.
Sep crude oil is down -0.34 (-0.72%), Sep Brent is down -0.73 (-1.37%), and Sep gasoline is down -0.0227 (-1.28%) as concerns continue about a worsening glut later this year as Iranian oil exports step up. Monday’s closes: CLU5 -0.75 (-1.56%), RBU5 -0.0158 (-0.89%). Sep crude oil and gasoline on Monday closed sharply lower on the plunge in the Chinese stock market and renewed concern about the Chinese economy and on ongoing worries that the world oil glut will worsen as Iran rebuilds its oil exports later this year if sanctions are dropped in December as expected.
|US||0900 ET||May S&P/CaseShiller composite-20 home price index expected +0.3% m/m and +5.6% y/y, Apr +0.30% m/m and +4.91% y/y.|
|0945 ET||Preliminary Jul Markit services PMI expected +0.2 to 55.0, Jun -1.4 to 54.8. Preliminary Jul Markit composite PMI, Jun -1.4 to 54.6.|
|1000 ET||Jul consumer confidence (Conference Board) expected -1.4 to 100.0, Jun +6.8 to 101.4.|
|1000 ET||Jul Richmond Fed manufacturing outlook survey expected +1 to 7, Jun +5 to 6.|
|1300 ET||Treasury auctions $ 26 billion of 2-year T-notes.|
|UK||0430 ET||UK Q2 GDP expected +0.7% q/q and +2.6% y/y, Q1 +0.4% q/q and +2.9% y/y.|
|0430 ET||UK May index of services expected +0.3% m/m and +0.5% 3-mo/3-mo, Apr +0.2% m/m and +0.5% 3-mo/3-mo.|
|JPN||1950 ET||Japan Jun retail sales expected -0.9% m/m and +1.0% y/y, May +1.7% m/m and +3.0% y/y.|
|Airgas Inc||ARG US||Bef-mkt||Q1 2016 Earnings Release||Q1 2016||1.154|
|Corning Inc||GLW US||Bef-mkt||Q2 2015 Earnings Release||Q2 2015||0.369|
|Ecolab Inc||ECL US||Bef-mkt||Q2 2015 Earnings Release||Q2 2015||1.079|
|Jacobs Engineering Group Inc||JEC US||Bef-mkt||Q3 2015 Earnings Release||Q3 2015||0.741|
|Marsh & McLennan Cos Inc||MMC US||Bef-mkt||Q2 2015 Earnings Release||Q2 2015||0.794|
|Merck & Co Inc||MRK US||Bef-mkt||Q2 2015 Earnings Release||Q2 2015||0.81|
|Laboratory Corp of America Holdings||LH US||Bef-mkt||Q2 2015 Earnings Release||Q2 2015||2.033|
|Precision Castparts Corp||PCP US||Bef-mkt||Q1 2016 Earnings Release||Q1 2016||3.002|
|Textron Inc||TXT US||Bef-mkt||Q2 2015 Earnings Release||Q2 2015||0.589|
|Waters Corp||WAT US||Bef-mkt||Q2 2015 Earnings Release||Q2 2015||1.271|
|Affiliated Managers Group Inc||AMG US||Bef-mkt||Q2 2015 Earnings Release||Q2 2015||3.017|
|Reynolds American Inc||RAI US||Bef-mkt||Q2 2015 Earnings Release||Q2 2015||0.964|
|LyondellBasell Industries NV||LYB US||Bef-mkt||Q2 2015 Earnings Release||Q2 2015||2.717|
|Nielsen NV||NLSN US||Bef-mkt||Q2 2015 Earnings Release||Q2 2015||0.639|
|EI du Pont de Nemours & Co||DD US||6:00||Q2 2015 Earnings Release||Q2 2015||1.217|
|Wyndham Worldwide Corp||WYN US||6:30||Q2 2015 Earnings Release||Q2 2015||1.258|
|CONSOL Energy Inc||CNX US||6:45||Q2 2015 Earnings Release||Q2 2015||0.007|
|Ford Motor Co||F US||7:00||Q2 2015 Earnings Release||Q2 2015||0.368|
|Ingersoll-Rand PLC||IR US||7:00||Q2 2015 Earnings Release||Q2 2015||1.223|
|Masco Corp||MAS US||7:00||Q2 2015 Earnings Release||Q2 2015||0.343|
|Pfizer Inc||PFE US||7:00||Q2 2015 Earnings Release||Q2 2015||0.518|
|DR Horton Inc||DHI US||7:00||Q3 2015 Earnings Release||Q3 2015||0.499|
|National Oilwell Varco Inc||NOV US||7:00||Q2 2015 Earnings Release||Q2 2015||0.646|
|Cummins Inc||CMI US||7:30||Q2 2015 Earnings Release||Q2 2015||2.554|
|United Parcel Service Inc||UPS US||7:45||Q2 2015 Earnings Release||Q2 2015||1.264|
|Masco Corp||MAS US||8:00||Q2 2015 Earnings Call||Q2 2015|
|Merck & Co Inc||MRK US||8:00||Q2 2015 Earnings Call||Q2 2015|
|Textron Inc||TXT US||8:00||Q2 2015 Earnings Call||Q2 2015|
|PACCAR Inc||PCAR US||8:00||Q2 2015 Earnings Release||Q2 2015||1.153|
|Eastman Chemical Co||EMN US||8:00||Q2 2015 Earnings Call||Q2 2015|
|Nielsen NV||NLSN US||8:00||Q2 2015 Earnings Call||Q2 2015|
|Corning Inc||GLW US||8:30||Q2 2015 Earnings Call||Q2 2015|
|Marsh & McLennan Cos Inc||MMC US||8:30||Q2 2015 Earnings Call||Q2 2015|
|United Parcel Service Inc||UPS US||8:30||Q2 2015 Earnings Call||Q2 2015|
|Waters Corp||WAT US||8:30||Q2 2015 Earnings Call||Q2 2015|
|Wyndham Worldwide Corp||WYN US||8:30||Q2 2015 Earnings Call||Q2 2015|
|EI du Pont de Nemours & Co||DD US||9:00||Q2 2015 Earnings Call||Q2 2015|
|Ford Motor Co||F US||9:00||Q2 2015 Earnings Call||C2 2015|
|Laboratory Corp of America Holdings||LH US||9:00||Q2 2015 Earnings Call||Q2 2015|
|Hartford Financial Services Group Inc/The||HIG US||9:00||Q2 2015 Earnings Call||Q2 2015|
|National Oilwell Varco Inc||NOV US||9:00||Q2 2015 Earnings Call||Q2 2015|
|Reynolds American Inc||RAI US||9:00||Q2 2015 Earnings Call||Q2 2015|
|Airgas Inc||ARG US||10:00||Q1 2016 Earnings Call||Q1 2016|
|Cummins Inc||CMI US||10:00||Q2 2015 Earnings Call||Q2 2015|
|Ingersoll-Rand PLC||IR US||10:00||Q2 2015 Earnings Call||Q2 2015|
|Pfizer Inc||PFE US||10:00||Q2 2015 Earnings Call||Q2 2015|
|Southwestern Energy Co||SWN US||10:00||Q2 2015 Earnings Call||Q2 2015|
|DR Horton Inc||DHI US||10:00||Q3 2015 Earnings Call||Q3 2015|
|CONSOL Energy Inc||CNX US||10:00||Q2 2015 Earnings Call||Q2 2015|
|Ford Motor Co||F US||11:00||Q2 2015 Earnings Call – Fixed Income||Q2 2015|
|Jacobs Engineering Group Inc||JEC US||11:00||Q3 2015 Earnings Call||Q3 2015|
|Precision Castparts Corp||PCP US||11:00||Q1 2016 Earnings Call||Q1 2016|
|Torchmark Corp||TMK US||11:00||Q2 2015 Earnings Call||Q2 2015|
|AvalonBay Communities Inc||AVB US||11:00||Q2 2015 Earnings Call||Q2 2015|
|Affiliated Managers Group Inc||AMG US||11:00||Q2 2015 Earnings Call||Q2 2015|
|LyondellBasell Industries NV||LYB US||11:00||Q2 2015 Earnings Call||Q2 2015|
|Intel Corp||INTC US||12:00||Analyst Meeting||Y 2015|
|PACCAR Inc||PCAR US||12:00||Q2 2015 Earnings Call||Q2 2015|
|Ecolab Inc||ECL US||13:00||Q2 2015 Earnings Call||Q2 2015|
|Total System Services Inc||TSS US||16:00||Q2 2015 Earnings Release||Q2 2015||0.535|
|Edwards Lifesciences Corp||EW US||16:00||Q2 2015 Earnings Release||Q2 2015||1.051|
|Gilead Sciences Inc||GILD US||16:05||Q2 2015 Earnings Release||Q2 2015||2.705|
|Citrix Systems Inc||CTXS US||16:05||Q2 2015 Earnings Release||Q2 2015||0.821|
|American Express Co||AXP US||16:30||Q2 2015 Earnings Call – Fixed Income Call||C2 2015|
|Gilead Sciences Inc||GILD US||16:30||Q2 2015 Earnings Call||Q2 2015|
|Akamai Technologies Inc||AKAM US||16:30||Q2 2015 Earnings Call||Q2 2015|
|Citrix Systems Inc||CTXS US||16:45||Q2 2015 Earnings Call||Q2 2015|
|Total System Services Inc||TSS US||17:00||Q2 2015 Earnings Call||Q2 2015|
|Edwards Lifesciences Corp||EW US||17:00||Q2 2015 Earnings Call||Q2 2015|
|Aflac Inc||AFL US||Aft-mkt||Q2 2015 Earnings Release||Q2 2015||1.524|
|Anadarko Petroleum Corp||APC US||Aft-mkt||Q2 2015 Earnings Release||Q2 2015||-0.53|
|AGL Resources Inc||GAS US||Aft-mkt||Q2 2015 Earnings Release||Q2 2015||0.428|
|Kimco Realty Corp||KIM US||Aft-mkt||Q2 2015 Earnings Release||Q2 2015||0.381|
|Cincinnati Financial Corp||CINF US||Aft-mkt||Q2 2015 Earnings Release||Q2 2015||0.41|
|Express Scripts Holding Co||ESRX US||Aft-mkt||Q2 2015 Earnings Release||Q2 2015||1.401|
|Range Resources Corp||RRC US||Aft-mkt||Q2 2015 Earnings Release||Q2 2015||0.033|
|Equity Residential||EQR US||Aft-mkt||Q2 2015 Earnings Release||Q2 2015||0.855|
|CH Robinson Worldwide Inc||CHRW US||Aft-mkt||Q2 2015 Earnings Release||Q2 2015||0.863|
|Akamai Technologies Inc||AKAM US||Aft-mkt||Q2 2015 Earnings Release||Q2 2015||0.582|
|Assurant Inc||AIZ US||Aft-mkt||Q2 2015 Earnings Release||Q2 2015||1.603|
|Ball Corp||BLL US||Extraordinary Shareholders Meeting – M&A Vote||Y 2015|
|Equifax Inc||EFX US||Investors Meeting – Kansas City||Y 2015|
|Legg Mason Inc||LM US||Annual General Meeting||Y 2015|
|Pall Corp||PLL US||Special Meeting – M&A Vote|