Live Index – Thu, 03 Sep 2015 Premarket

September E-mini S&Ps (ESU15 +0.22%) are up +0.36% and European stocks are up +1.31% as a holiday in China gives the markets respite from recent turmoil in Chinese financial markets. European stocks received a boost after the Eurozone Aug composite PMI was revised upward to its fastest pace of growth since the data series began in 2012. The markets will focus on the outcome of today’s ECB meeting and comments from ECB President Draghi on the state of the European economy. The ECB will also release new forecasts for growth and consumer prices. Emerging markets gained for the first time this week led by strength in basic-resource companies and miners as the price of copper climbed to a 3-week high. Asian stocks closed mostly higher: Japan +0.48%, Hong Kong and China closed for holiday, Taiwan +0.75%, Australia -1.44%, Singapore +0.98%, South Korea +0.21%, India +1.22%.

The dollar index (DXY00 +0.03%) is up +0.09%. EUR/USD (^EURUSD) is down -0.04%. USD/JPY (^USDJPY) is down -0.04%.

Dec T-note prices (ZNZ15 +0.12%) are up +3 ticks.

The Eurozone Aug Markit composite PMI was revised higher to 54.3 from the originally reported 54.1, the fastest pace of expansion since the data series began in 2012.

Key U.S. news today includes: (1) Aug Challenger job cuts (Jul +125.4% y/y), (2) weekly initial unemployment claims (expected +4,000 to 275,000, previous -6,000 to 271,000) and continuing claims (expected -14,000 to 2.255 million, previous +13,000 to 2.269 million), (3) U.S. Jul trade deficit (expected -$ 42.55 billion, Jun -$ 43.84 billion), and (4) the Treasury’s announcement of the details of next week’s sale of 3-year, 10-year and 30-year securities.

There are 6 of the Russell 1000 companies report earnings today: Campbell Soup (consensus $ 0.43), Joy Global (0.60), Medtronic (1.01), Cooper Companies (1.95), VeriFone Systems (0.46), Marvell Technology (0.11).

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

Equity conferences during the remainder of this week include: Global Hunter Securities Industrials Conference on Thu.

Ciena (CIEN +2.23%) reported Q3 adjusted EPS of 37 cents, higher than consensus of 34 cents.

eBay (EBAY +1.47%) was upgraded to ‘Neutral’ from ‘Underweight’ at Piper Jaffray.

Illinois Tool Works (ITW +1.04%) was upgraded to ‘Buy’ from ‘Neutral’ at Goldman Sachs.

Schlumberger (SLB -0.01%) was upgraded to ‘Buy’ from ‘Neutral’ at Citigroup.

Emerson (EMR +1.12%) was downgraded to ‘Sell’ from ‘Neutral’ at Goldman Sachs.

Xylem (XYL +0.80%) was upgraded to ‘Buy’ from ‘Hold’ at Stifel.

Medtronic PLC (MDT +2.91%) reported Q1 EPS of 64 cents, well below consensus of $ 1.01.

Campbell Soup (CPB +1.92%) reported Q4 EPS of 41 cents, less than consensus of 43 cents.

Joy Global (JOY -0.76%) reported Q3 EPS of 54 cents, below consensus of 60 cents.

Universal Insurance (UVE -0.94%) announced a new $ 10 million share repurchase program.

Lannett (LCI +4.63%) jumped 9% in after-hours trading after it announced that it will acquire Kremers Urban Pharmaceuticals For $ 1.23 billion.

Hillenbrand (HI +0.08%) will acquire ABEL Pumps from Roper Technologies ({=ROP for 95 million euros.

NCI Building (NCS -0.40%) reported Q3 adjusted EPS of 15 cents, above consensus of 14 cents.

Verint Systems (VRNT -0.63%) reported Q2 adjusted EPS of 70 cents, better than consensus of 68 cents.

Catalent (CTLT +1.71%) reported Q4 adjusted EPS of 61 cents, higher than consensus of 58 cents.

Sep E-mini S&Ps (ESU15 +0.22%) this morning are up +7.00 points (+0.36%). Wednesday’s closes: S&P 500 +1.83%, Dow Jones +1.82%, Nasdaq +2.74%. The S&P 500 on Wednesday closed higher on (1) strength in technology stocks after Apple, Microsoft and Intel rose over 2%, (2) reduced expectations for a Fed rate hike after the Aug ADP employment change of +190,000 was weaker than expectations of +200,000 and July factory orders rose +0.4%, weaker than expectations of +0.9%.

Dec 10-year T-notes (ZNZ15 +0.12%) this morning are up +3 ticks. Wednesday’s closes: TYZ5 -5.00, FVZ5 -3.00. Dec T-notes on Wednesday closed lower on reduced safe-haven demand with the rally in stocks, and on the relatively strong Beige Book report that raised the possibility that the Fed will go ahead with its rate hike move this year. T-notes received some support from news of tame wage pressures after U.S. Q2 unit labor costs were revised lower to -1.4%.

The dollar index (DXY00 +0.03%) this morning is up +0.084 (+0.09%). EUR/USD (^EURUSD) is down -0.0005 (-0.04%). USD/JPY (^USDJPY) is down -0.05 (-0.04%). Wednesday’s closes: Dollar Index +0.378 (+0.40%), EUR/USD -0.0088 (-0.78%), USD/JPY +0.96 (+0.80%). The dollar index on Wednesday closed higher on (1) weakness in EUR/USD after Eurozone PPI fell -0.1% m/m and -2.1% y/y, which shows benign inflation pressures that may prod the ECB into expanding stimulus, and (2) the upbeat Fed Beige Book which may sway the Fed to raise interest rates this year.

Oct crude oil (CLV15 -0.13%) this morning is down -19 cents (-0.41%) and Oct gasoline (RBV15 +0.58%) is up +0.0108 (+0.76%). Wednesday’s closes: CLV5 +0.84 (+1.85%), RBV5 +0.0344 (+2.46%). Oct crude and gasoline prices on Wednesday recovered from early losses and closed higher on the -1.3% drop in U.S. crude production in the week ended Aug 28 to a 6-3/4 month low and on the rally in U.S. stocks. Crude oil prices were undercut by the +4.67 million bbl surge in weekly EIA crude inventories and news that President Obama has now gained veto-proof support in the Senate for the Iranian nuclear agreement, which virtually ensures that sanctions will be dropped on Iran late this year or early next year.