Live Index – Wed, 02 Sep 2015 Premarket

September E-mini S&Ps (ESU15 +0.55%) are up +0.43% and European stocks are up +0.12% as prices consolidate following the sharp 2-day decline. Bargain hunting in commodity producers and mining stocks is giving the overall market a lift with BHP Billiton Ltd. and Rio Tinto Group both up over 1%, although gains were muted as a decline in oil prices pressures energy producers. Emerging markets closed lower on concern that the slowdown in China’s economy will curb global growth. Asian stocks closed mostly lower as well: Japan -0.39%, Hong Kong -1.18%, China -0.20%, Taiwan +0.22%, Australia +0.10%, Singapore -0.16%, South Korea +0.16%, India -0.95%. China’s Shanghai Composite pared losses again in the final hour of trade for a sixth day, rallying from down nearly 5% to under 1%, amid possible stock purchases by government-backed funds. Chinese government stock purchases over the past week in the final hour of trade are part of government efforts to ensure that nothing detracts from a military parade on Thursday to celebrate the 70th anniversary of the end of WWII. China’s financial markets will be closed for the rest of this week in observance of the event.

The dollar index (DXY00 +0.26%) is up +0.24%. EUR/USD (^EURUSD) is down -0.47%. USD/JPY (^USDJPY) is up +0.56%.

Dec T-note prices (ZNZ15 +0.07%) are up +4.5 ticks.

Key U.S. news today includes: (1) weekly MBA mortgage applications (previous +0.2% with purchase sub-index +1.7% and refi sub-index -1.0%), (2) Aug ADP employment change (expected +200,000, Jul +185,000), (3) revised Q2 non-farm productivity (expected +2.9%, prelim +1.3%) and revised Q2 unit labor costs (expected 1.2%, prelim +0.5%), (4) Aug New York ISM (Jul +5.7 to 68.8), (5) Jul factory orders (expected +0.9%, Jun +1.8% and +0.5% ex-transportation), and (6) the Fed’s Beige Book.

None of the Russell 1000 companies report earnings today.

U.S. IPO’s scheduled to price today include: none.

Equity conferences this week include: European Society of Cardiology Meeting on Mon-Wed, Simmons Gleneagles Energy Conference on Tue-Wed, KeyBanc Capital Markets Basic Materials and Packaging Conference on Wed, Global Hunter Securities Industrials Conference on Thu.

AT&T (T -2.65%) was upgraded to ‘Buy’ from ‘Neutral’ at Citigroup.

Helmerich & Payne (HP -5.24%) was downgraded to ‘Underperform’ from ‘Market Perform’ at BMO Capital.

General Mills (GIS -2.17%) was upgraded to ‘Equal Weight’ from ‘Underweight’ at Morgan Stanley.

Telefonica (TEF -3.13%) was downgraded to ‘Underperform’ from ‘Neutral’ at BofA/Merrill Lynch.

BB&T (BBT -4.31%) was upgraded to ‘Outperform’ from ‘Neutral’ at Baird.

United Continental (UAL +0.28%) will replace Hospira (HSP -0.01%) in the S&P 500 as of today’s close.

PNC Financial (PNC -4.31%) was upgraded to ‘Market Perform’ from ‘Underperform’ at Keefe Bruyette.

Hologic (HOLX -4.10%) was upgraded to ‘Equal Weight’ from ‘Underweight’ at Barclays.

ARM Holdings (ARMH -2.13%) was upgraded to ‘Neutral’ from ‘Underweight’ at JPMorgan Chase.

Qihoo 360 (QIHU -6.26%) reported Q2 non-GAAP EPS of 82 cents, higher than consensus of 72 cents.

Lockheed Martin (LMT -1.77%) was awarded a $ 311.4 million government contract for retrofit modification hardware necessary for upgrade of a previously issued basic ordering agreement for the F-35 Lighting II Block 3F for the Air Force, Marine Corps, Navy, and the government of the United Kingdom.

CBOE Holdings (CBOE -1.07%) reported that total trading volume in August for options contracts on Chicago Board Options Exchange and C2 Options Exchange and futures contracts on CBOE Futures Exchange was 125.2 million contracts, up +26% y/y.

Integrated Core Strategies reported a 5.2% passive stake in Helix Energy (HLX -3.74%) .

Bob Evans (BOBE -0.91%) reported Q1 adjusted EPS of 51 cents, well above consensus of 30 cents, and then raised guidance on fiscal 2016 adjusted EPS to $ 1.85-$ 2.00 from $ 1.75-$ 1.95, above consensus of $ 1.85.

CBRE (CBG -2.72%) buys Johnson Controls (JCI -4.30%) Global Workplace Solutions business for $ 1.48 billion.

Sep E-mini S&Ps (ESU15 +0.55%) this morning are up +8.25 points (+0.43%). Tuesday’s closes: S&P 500 -2.96%, Dow Jones -2.84%, Nasdaq -3.09%. The S&P 500 on Tuesday closed sharply lower on the -0.3 point decline in the Chinese manufacturing PMI index to a 3-year low of 49.7 and the the -1.6 point drop in the Aug U.S. ISM manufacturing index to a 2-1/4 year low of 51.1. In addition, basic-resource and energy stocks showed weakness as the slower-than-expected manufacturing data from the U.S. and China raised demand concerns and undercut commodity prices.

Dec 10-year T-notes (ZNZ15 +0.07%) this morning are up +4.5 ticks. Tuesday’s closes: TYZ5 +8.00, FVZ5 +5.75. Dec T-notes on Tuesday closed higher on speculation that the weaker-than expected Aug ISM manufacturing index will keep the Fed from raising interest rates and on concern that China’s economic slowdown has deepened after the China Aug manufacturing PMI fell to a 3-year low, sending global stock markets reeling and boosting the safe-haven demand for government debt.

The dollar index (DXY00 +0.26%) this morning is up +0.226 (+0.24%). EUR/USD (^EURUSD) is down -0.0053 (-0.47%). USD/JPY (^USDJPY) is up +0.67 (+0.56%). Tuesday’s closes: Dollar Index -0.374 (-0.39%), EUR/USD +0.0104 (+0.93%), USD/JPY -1.86 (-1.53%). The dollar index on Tuesday closed lower on the decline in the Aug ISM manufacturing index to a 2-1/4 year low, which may keep the Fed from raising interest rates. USD/JPY slumped as the plunge in global equity markets spurred safe-haven demand for the yen.

Oct crude oil (CLV15 -2.14%) this morning is down -$ 1.22 a barrel (-2.69%) and Oct gasoline (RBV15 +0.09%) is down -0.0109 (-0.78%). Tuesday’s closes: CLV5 -3.79 (-7.70%), RBV5 -0.1266 (-8.45%). Oct crude oil and gasoline on Tuesday closed sharply lower on global demand concerns after the China Aug manufacturing PMI fell to a 3-year low and the Aug U.S. ISM manufacturing index fell to a 2-1/4 year low. Crude oil prices were also undercut by expectations that Wednesday’s weekly EIA data will show that crude inventories rose by +700,000 bbl.