Live Index – Wed, 05 Aug 2015 Premarket
September E-mini S&Ps (ESU15 +0.66%) are up +0.44% led by strength in energy producers as crude oil (CLU15 +0.57%) gained. The markets will look to this morning’s Jul ADP employment change to gauge the strength of the U.S. labor market that may provide clues as to when the Fed will begin to raise interest rates. European stocks are up +1.06% at a 2-week high, led by a rally in bank stocks, as Societe Generale SA jumped over 8% after posting its highest profit since the financial crisis. Asian stocks closed mixed: Japan +0.46%, Hong Kong +0.44%, China -1.65%, Taiwan +0.37%, Australia -0.42%, Singapore +0.01%, South Korea -0.18%, India +0.54%. Japanese stocks rose on better-than-expected company quarterly earnings results as the Nikkei Stock Index posted a 2-week high, while China’s Shanghai Composite closed lower as a total of 515 mainland Chinese companies remain halted from trading due to trading curbs.
The dollar index (DXY00 +0.14%) is up +0.16% at a 3-1/4 month high on speculation the Fed may raise interest rates as soon as September after Atlanta Fed President Lockhart on Tuesday said the Fed was “close” to raising interest rates. EUR/USD (^EURUSD) is down -0.11% at a 2-week low after Eurozone Jun retail sales fell by the most in 9 months. USD/JPY (^USDJPY) is unchanged.
Sep T-note prices (ZNU15 -0.29%) are down -11 ticks on negative carry-over from comments made Tuesday by Atlanta Fed President Lockhart who said he would only endorse putting off an interest rate increase if there was a “significant deterioration” in economic data.
Eurozone Jun retail sales fell -0.6% m/m, more than expectations of -0.2% m/m and the largest decline in 9 months. On an annual basis. Jun retail sales rose +1.2% y/y, less than expectations of +2.0% y/y.
Key U.S. news today includes: (1) weekly MBA mortgage applications (previous +0.8% with purchase sub-index -0.1% and refi sub-index +1.6%), (2) July ADP employment (expected +215,000, Jun +237,000), (3) June trade deficit (expected -$ 43.0 billion, May -$ 41.87 billion), (4) final-Jul Markit U.S. services PMI (expected unrevised at 55.2, prelim-Jul +0.4 to 55.2), (5) July ISM non-manufacturing PMI (expected +0.2 to 56.2, Jun +0.3 to 56.0).
There are 24 of the S&P 500 companies that report earnings today with notable reports including: Time Warner (consensus $ 1.03), Motorola Solutions (0.54), Priceline (11.79), Ralph Lauren (1.00), Marathon Oil (-0.23), CBS (0.72), Prudential Financial (2.47).
U.S. IPO’s scheduled to price today include: Philadelphia Energy Solutions (PESC), Planet Fitness (PLNT), Aimmune Therapeutics (AIMT), GC Aesthetics (GCAA), Benitec Biopharma (BTEBY), PG&E (PCG), Corium International (CORI), Medical Properties Trust (MPW), Summit Materials (SUM).
Equity conferences this week: Piper Jaffray Technology-Enabled Industrials Symposium on Tue-Wed, Needham Interconnect Conference on Wed.
IntercontinentalExchange (ICE +0.33%) reported Q2 adjusted EPS of $ 2.90, better than consensus of $ 2.77.
Time Warner (TWX -0.15%) reported Q2 EPS of $ 1.25, higher than consensus of $ 1.03.
The Priceline Group (PCLN +3.51%) reported Q2 EPS of $ 12.45, well above consensus of $ 11.79.
Discovery Communications (DISCA +0.46%) reported Q2 EPS of 47 cents, below consensus of 50 cents.
Cognizant Technology Solutions (CTSH +0.65%) reported Q2 EPS of 79 cents, higher than consensus of 73 cents.
Advance Auto Parts (AAP +0.74%) was downgraded to ‘Hold’ from ‘Buy’ at Evercore ISI.
Hyatt (H -2.63%) was downgraded to ‘Hold’ from ‘Buy’ at Deutsche Bank.
Babcock & Wilcox (BW +0.15%) reported Q2 adjusted EPS of 27 cents, above consensus of 21 cents.
Acadia (ACHC -2.90%) reported Q2 EPS of 57 cents, higher than consensus of 52 cents.
Disney (DIS +0.47%) reported Q3 EPS of $ 1.45, better than consensus of $ 1.42.
DaVita (DVA +0.61%) reported Q2 EPS of 95 cents, right on consensus, although Q2 revenue of $ 3.43 billion was above consensus of $ 3.37 billion.
Activision Blizzard (ATVI +0.59%) rose over 6% in after-hours trading after it reported Q2 EPS of 13 cents, better than consensus of 8 cents.
Cerner (CERN -0.82%) reported Q2 EPS of 52 cents, right on consensus.
Ternium (TX -0.20%) reported Q2 EPS of 21 cents, well below consensus of 34 cents.
AmSurg (AMSG +2.28%) reported Q2 adjusted EPS of 97 cents, higher than consensus of 84 cents, and then raised guidance on 2015 adjusted EPS outlook to $ 3.52-$ 3.59 from $ 3.31-$ 3.39, above consensus of $ 3.35.
Sep E-mini S&Ps (ESU15 +0.66%) this morning are up +9.25 points (+0.44%). Tuesday’s closes: S&P 500 -0.22%, Dow Jones -0.27%, Nasdaq -0.28%. The S&P 500 on Tuesday closed lower on disappointing earnings results from Allstate and CVS Health, weakness in technology stocks after Apple closed lower for a fifth day, and Atlanta Fed President Lockhart’s comment that the Fed was “close” to raising interest rates. Stocks found some support on the 3% rally in China’s Shanghai Composite Stock Index and the as-expected +1.8% increase in U.S. Jul factory orders.
Sep 10-year T-note prices (ZNU15 -0.29%) this morning are down -11 ticks. Tuesday’s closes: TYU5 -18.0, FVU5 -13.50. Sep T-notes on Tuesday closed lower on the +0.5% increase in U.S. Jul factory orders ex-transportation, the largest increase in a year, hawkish comments from Atlanta Fed President Lockhart who said September may be the appropriate time for the Fed to begin raising interest rates, and the +3% rally in China’s Shanghai Composite Stock Index, which reduced safe-haven demand for T-notes.
The dollar index (DXY00 +0.14%) this morning is up +0.154 (+0.16%) at a 3-1/4 month high. EUR/USD (^EURUSD) is down -0.0012 (-0.11%) at a 2-week low. USD/JPY (^USDJPY) is unchanged. Tuesday’s closes: Dollar Index +0.437 (+0.45%), EUR/USD -0.00686 (-0.63%), USD/JPY +0.345 (+0.28%). The dollar index on Tuesday rallied to a 2-week high and closed higher on the +0.5% increase in U.S. Jul factory orders ex-transportation and hawkish comments from Atlanta Fed President Lockhart who said the Fed is “close” to raising interest rates, which suggests he favors a September rate hike.
Sep crude oil (CLU15 +0.57%) this morning is up +29 cents (+0.63%) and Sep gasoline (RBU15 +1.13%) is up +0.0193 (+1.15%). Tuesday’s closes: CLU5 +0.66 (+1.46%), RBU5 +0.0198 (+1.18%). Sep crude and gasoline on Tuesday closed higher on the 3% rally in China’s Shanghai Composite Index and on expectations that Wednesday’s weekly EIA crude inventories will fall -1.75 million bbl.
|US||0700 ET||Weekly MBA mortgage applications, previous +0.8% with purchase sub-index -0.1% and refi sub-index +1.6%.|
|0815 ET||Jul ADP employment change expected +215,000, Jun +237,000.|
|0830 ET||Jun trade balance expected -$ 43.0 billion, May -$ 41.87 billion.|
|0830 ET||Treasury announces amount of 3-year T-notes (previous $ 24 billion), 10-year T-notes (previous $ 21 billion) and 30-year T-bonds (previous $ 13 billion) to be auctioned in the Aug quarterly refunding Aug 11-13.|
|0945 ET||Final-Jul Markit U.S. services PMI expected unrevised at 55.2, prelim-Jul +0.4 to 55.2. Final-Jul Markit composite PMI, prelim-Jul +0.6 to 55.2.|
|1000 ET||Jul ISM non-manufacturing PMI expected +0.2 to 56.2, Jun +0.3 to 56.0.|
|1030 ET||EIA Weekly Petroleum Status Report.|
|GER||0355 ET||Revised German Jul Markit services PMI, previous -0.1 to 53.7.|
|EUR||0400 ET||Revised Eurozone Jul Markit composite PMI, previous -0.5 to 53.7.|
|0500 ET||Eurozone Jun retail sales expected -0.2% m/m and +2.0% y/y, May +0.2% m/m and +2.4% y/y.|
|UK||0430 ET||UK Jul Markit/CIPS services PMI expected -0.5 to 58.0, Jun 58.5.|
|Dominion Resources Inc/VA||D US||Bef-mkt||Q2 2015 Earnings Release||Q2 2015||0.725|
|Time Warner Inc||TWX US||Bef-mkt||Q2 2015 Earnings Release||Q2 2015||1.028|
|Chesapeake Energy Corp||CHK US||Bef-mkt||Q2 2015 Earnings Release||Q2 2015||-0.112|
|Quanta Services Inc||PWR US||Bef-mkt||Q2 2015 Earnings Release||Q2 2015||0.448|
|Cognizant Technology Solutions Corp||CTSH US||Bef-mkt||Q2 2015 Earnings Release||Q2 2015||0.728|
|Intercontinental Exchange Inc||ICE US||Bef-mkt||Q2 2015 Earnings Release||Q2 2015||2.778|
|Spectra Energy Corp||SE US||Bef-mkt||Q2 2015 Earnings Release||Q2 2015||0.186|
|HCA Holdings Inc||HCA US||Bef-mkt||Q2 2015 Earnings Release||Q2 2015||1.369|
|Motorola Solutions Inc||MSI US||7:00||Q2 2015 Earnings Release||Q2 2015||0.54|
|Fastenal Co||FAST US||7:00||July 2015 Sales and Revenue Release||2015|
|Priceline Group Inc/The||PCLN US||7:00||Q2 2015 Earnings Release||Q2 2015||11.794|
|Discovery Communications Inc||DISCA US||7:00||Q2 2015 Earnings Release||Q2 2015||0.5|
|Priceline Group Inc/The||PCLN US||7:30||Q2 2015 Earnings Call||Q2 2015|
|Perrigo Co PLC||PRGO US||8:00||Q4 2015 Earnings Release||Q4 2015||2.048|
|Ralph Lauren Corp||RL US||8:00||Q1 2016 Earnings Release||Q1 2016||0.996|
|Cognizant Technology Solutions Corp||CTSH US||8:00||Q2 2015 Earnings Call||Q2 2015|
|Genworth Financial Inc||GNW US||8:00||Q2 2015 Earnings Call||Q2 2015|
|Motorola Solutions Inc||MSI US||8:30||Q2 2015 Earnings Call||Q2 2015|
|Intercontinental Exchange Inc||ICE US||8:30||Q2 2015 Earnings Call||Q2 2015|
|Discovery Communications Inc||DISCA US||8:30||Q2 2015 Earnings Call||Q2 2015|
|Chesapeake Energy Corp||CHK US||9:00||Q2 2015 Earnings Call||Q2 2015|
|Newfield Exploration Co||NFX US||9:00||Q2 2015 Earnings Call||Q2 2015|
|Ralph Lauren Corp||RL US||9:00||Q1 2016 Earnings Call||Q1 2016|
|Spectra Energy Corp||SE US||9:00||Q2 2015 Earnings Call||Q2 2015|
|Quanta Services Inc||PWR US||9:30||Q2 2015 Earnings Call||Q2 2015|
|CA Inc||CA US||10:00||Annual General Meeting||Y 2015|
|Dominion Resources Inc/VA||D US||10:00||Q2 2015 Earnings Call||Q2 2015|
|Perrigo Co PLC||PRGO US||10:00||Q4 2015 Earnings Call||Q4 2015|
|Pioneer Natural Resources Co||PXD US||10:00||Q2 2015 Earnings Call||Q2 2015|
|HCA Holdings Inc||HCA US||10:00||Q2 2015 Earnings Call||Q2 2015|
|Time Warner Inc||TWX US||10:30||Q2 2015 Earnings Call||Q2 2015|
|ONEOK Inc||OKE US||11:00||Q2 2015 Earnings Call||Q2 2015|
|Devon Energy Corp||DVN US||11:00||Q2 2015 Earnings Call||Q2 2015|
|Cimarex Energy Co||XEC US||11:00||Q2 2015 Earnings Call||Q2 2015|
|CBS Corp||CBS US||16:30||Q2 2015 Earnings Call||Q2 2015|
|CenturyLink Inc||CTL US||17:00||Q2 2015 Earnings Call||Q2 2015|
|Keurig Green Mountain Inc||GMCR US||17:00||Q3 2015 Earnings Call||Q3 2015|
|CenturyLink Inc||CTL US||Aft-mkt||Q2 2015 Earnings Release||Q2 2015||0.6|
|FMC Corp||FMC US||Aft-mkt||Q2 2015 Earnings Release||Q2 2015||0.698|
|Twenty-First Century Fox Inc||FOXA US||Aft-mkt||Q4 2015 Earnings Release||Q4 2015||0.371|
|Tesoro Corp||TSO US||Aft-mkt||Q2 2015 Earnings Release||Q2 2015||4.019|
|Marathon Oil Corp||MRO US||Aft-mkt||Q2 2015 Earnings Release||Q2 2015||-0.225|
|Costco Wholesale Corp||COST US||Aft-mkt||July 2015 Sales and Revenue Release||2015|
|CBS Corp||CBS US||Aft-mkt||Q2 2015 Earnings Release||Q2 2015||0.724|
|Transocean Ltd||RIG US||Aft-mkt||Q2 2015 Earnings Release||Q2 2015||0.517|
|Keurig Green Mountain Inc||GMCR US||Aft-mkt||Q3 2015 Earnings Release||Q3 2015||0.787|
|Prudential Financial Inc||PRU US||Aft-mkt||Q2 2015 Earnings Release||Q2 2015||2.469|
|Dun & Bradstreet Corp/The||DNB US||Aft-mkt||Q2 2015 Earnings Release||Q2 2015||1.308|
|CF Industries Holdings Inc||CF US||Aft-mkt||Q2 2015 Earnings Release||Q2 2015||1.491|
|Twenty-First Century Fox Inc||FOXA US||17:30||Q4 2015 Earnings Call||Q4 2015|