Live Index – Tue, 08 Sep 2015 Premarket
September E-mini S&Ps (ESU15 +1.80%) are up sharply by +1.93% and European stocks are up +2.31% as a rally in Chinese stocks led global equity markets higher. Emerging markets jumped and European stocks rose for a second day after data showed that China’s Aug exports fell less than expected. European stocks also received a boost after Eurozone Q2 GDP was revised higher. Asian stocks closed mostly higher: Japan -2.43%, Hong Kong +1.93%, China +2.92%, Taiwan +0.19%, Australia +1.69%, Singapore +1.15%, South Korea +0.20%, India +1.70%. Japan’s Nikkei Stock Index fell to a 7-month low on concern Chinese demand for Japanese goods remains weak after Chinese Aug imports fell for the tenth consecutive month. China’s Shanghai Composite swung from a loss of -2.3% to a gain of +2.9% in the final hour of trading on signs that the government bought stocks in an attempt to bolster the market.
The dollar index (DXY00 -0.10%) is down -0.06%. EUR/USD (^EURUSD) is down -0.10%. USD/JPY (^USDJPY) is up +0.58%.
Dec T-note prices (ZNZ15 -0.23%) are down -7.5 ticks.
The China Aug trade balance widened to a +$ 60.24 billion surplus, more than expectations of +$ 48.00 billion and the largest trade surplus in 6 months. Aug exports fell -5.5% y/y, less than expectations of -6.6% y/y. Aug imports fell -13.8% y/y, weaker than expectations of -7.9% y/y.
Eurozone Q2 GDP was revised upward to +0.4% q/q and +1.5% y/y from the originally reported +0.3% q/q and +1.2% y/y.
Key U.S. news today includes: (1) Jul consumer credit expected +$ 18.00 billion, (2) a speech by Minneapolis Fed President Narayana Kocherlakota on the outlook for U.S. monetary policy at an event in Evanston, Il., and (3) the Treasury auctions $ 24 billion of 3-year T-notes.
None of the Russell 1000 companies report earnings today.
U.S. IPO’s scheduled to price today include: none.
Equity conferences during the remainder of this week include: Barclays CEO Energy Power Conference on Tue-Thu, Barclays Global Consumer Staples Conference on Tue-Thu, Citi Global Technology Conference on Tue-Thu, Cowen & Company Global Transportation Conference on Wed, Bank of America Merrill Lynch Gaming & Lodging Conference on Wed, Drexel Hamilton Technology, Media, and Telecom Conference on Wed, FBR Health Care Conference on Wed, Gabelli Aircraft Supplier Conference on Wed, KBW Insurance Conference on Wed, Keefe Bruyette & Woods Insurance Conference on Wed, RBC Capital Markets Global Industrials Conference on Wed, RBC Capital Markets Investor Conference on Wed, RealREIT Conference on Wed, UBS Chemicals Conference on Wed, RBC Global Industrials Conference on Wed-Thu, Bank of America Merrill Lynch Media, Communications & Entertainment Conference on Wed-Thu, Goldman Sachs Global Retailing Conference on Wed-Thu, Baird Health Care Conference on Wed-Thu, Vertical Research Industrial Conference on Wed-Thu, Wells Fargo Healthcare Conference on Wed-Thu, Eurofi Financial Forum 2015 – Luxembourg on Wed-Fri, Bank of America Merrill Lynch Australian Investment Conference on Thu, Barclays Back-to-School Consumer Conference on Thu, D.A. Davidson Engineering and Construction Investor Conference on Thu, Goldman Sachs European Medtech & Health Care Conference on Thu, Mizuho Securities Investment Conference on Thu, UBS Best of Americas Conference on Thu, UBS Global Paper and Forest Products Conference on Thu, United Business Media Virtual Investor Conference on Thu.
Wells Fargo (WFC -2.17%) was upgraded to ‘Buy’ from ‘Hold’ at Evercore ISI.
Meredith (MDP -0.67%) will acquire Media General (MEG -1.85%) in a deal valued at about $ 2.4 billion.
SanDisk (SNDK -2.37%) was upgraded to ‘Overweight’ from ‘Neutral’ at JPMorgan Chase.
Bank of America (BAC -1.82%) was upgraded to ‘Buy’ from ‘Neutral’ at Nomura.
Marvell (MRVL -2.43%) was downgraded to ‘Neutral’ from ‘Overweight’ at JPMorgan Chase.
Regeneron (REGN -1.68%) was upgraded to ‘Buy’ from ‘Sell’ at UBS.
Denbury Resources (DNR -4.81%) was downgraded to ‘Sell’ from ‘Neutral’ at UBS.
Amgen (AMGN -1.48%) was upgraded to ‘Buy’ from ‘Neutral’ at UBS.
Columbia Pipeline Partners (CPPL +0.10%) was upgraded to ‘Overweight’ from ‘Equal Weight’ at Barclays.
Office Depot (ODP -0.82%) was upgraded to ‘Buy’ from ‘Neutral’ at B. Riley.
Royal Gold (RGLD -0.91%) was downgraded to ‘Neutral’ from ‘Buy’ at Goldman Sachs.
Emera will acquire TECO Energy (TE +0.05%) in a $ 10.4 billion transaction that will make TECO Energy a wholly owned subsidiary of Emera.
Warren Buffett reported a 10.8% passive stake in Phillips 66 (PSX -1.61%) .
Glenview Capital reported a 5.2% passive stake in Hertz (HTZ -1.95%) .
Discovery Group reported a 5.5% stake in TubeMogul (TUBE -1.51%) .
Sep E-mini S&Ps (ESU15 +1.80%) this morning are up +37.00 points (+1.93%). Friday’s closes: S&P 500 -1.53%, Dow Jones -1.66%, Nasdaq -0.51%. The S&P 500 on Friday closed lower on concern that the Fed may soon raise interest rates after U.S. Aug average hourly earnings rose +0.3% m/m and +2.2% y/y, more than expectations of +0.2% m/m and +2.1% y/y, and after the Aug unemployment rate fell -0.2 to 5.1%, a bigger decline than expectations of -0.1 to 5.2% and the lowest in 7-1/3 years. The S&P 500 also saw carryover weakness from a slide in emerging stock markets on concern that selling in China’s stock market will resume on Monday when the Chinese financial markets reopen after having been closed for holidays on Thursday and Friday.
Dec 10-year T-notes (ZNZ15 -0.23%) this morning are down -7.5 ticks. Friday’s closes: TYZ5 +11.50, FVZ5 +3.75. Dec T-notes on Friday climbed to a 1-week high and closed higher on the sell-off in stocks, which boosted the safe-haven demand for government debt, and on the smaller-than-expected increase in U.S. Aug non-farm payrolls. However, T-notes fell back from their best levels as the Aug unemployment rate fell to a 7-1/3 year low of 5.1% and Aug average hourly earnings rose more than expected, which may prompt the Fed to raise interest rates.
The dollar index (DXY00 -0.10%) this morning is down -0.056 (-0.06%). EUR/USD (^EURUSD) is down -0.0011 (-0.10%). USD/JPY (^USDJPY) is up +0.69 (+0.58%). Friday’s closes: Dollar Index +0.577 (+0.60%), EUR/USD +0.0026 (+0.23%), USD/JPY -1.08 (-0.90%). The dollar index on Friday closed lower on the fall in USD/JPY to a 1-week low as the slump in stocks boosted the safe-haven demand for the yen. Losses were limited after the U.S. Aug payrolls report showed a drop in the unemployment rate to a 7-1/3 year low and stronger-than-expected hourly earnings, which may prompt the Fed to raise interest rates.
Oct crude oil (CLV15 -1.37%) this morning is down -84 cents (-1.82%) and Oct gasoline (RBV15 -0.44%) is down -0.0096 (-0.68%). Friday’s closes: CLV5 -0.70 (-1.50%), RBV5 -0.0271 (-1.89%). Oct crude oil and gasoline Friday closed lower on speculation the Fed may raise interest rates after the U.S. Aug unemployment rate fell to a 7-1/3 year low and Aug average hourly earnings rose more than expected. Crude oil prices were also hurt by the slide in global stock prices.
|US||1100 ET||USDA weekly grain export inspections.|
|1300 ET||Treasury auctions $ 24 billion of 3-year T-notes.|
|1500 ET||Jul consumer credit expected +$ 18.55 billion, Jun +$ 20.74 billion|
|1600 ET||USDA weekly crop progress.|
|1715 ET||Minneapolis Fed President Narayana Kocherlakota speaks on the outlook for U.S. monetary policy at an event in Evanston, IL.|
|JPN||0030 ET||Japan Aug bankruptcies, Jul -10.77% y/y.|
|0100 ET||Japan Aug eco-watchers survey current expected +0.4 to 52.0, Jul 51.6. Aug eco-watchers survey outlook expected +0.4 to 52.3, Jul 51.9.|
|GER||0200 ET||German Jul trade balance expected +23.5 billion euros, Jun +24.0 billion euros. Jul exports expected +1.0% m/m, Jun -1.1% m/m. Jul imports expected +0.7% m/m, Jun -0.8% m/m.|
|0200 ET||German Jul current account balance expected +21.5 billion euros, Jun 24.4 billion euros.|
|0200 ET||German Q2 labor costs, Q1 +1.1% q/q and +3.2% y/y.|
|EUR||0500 ET||Revised Eurozone Q2 GDP, previous +0.3% q/q and +1.2% y/y.|
|UK||1901 ET||UK Aug BRC shop price index expected -0.2% y/y, Jul -1.4% y/y.|
|XPO Logistics Inc||XPO US||9:00||Extraordinary Shareholders Meeting|
|Piedmont Natural Gas Co Inc||PNY US||10:00||Q3 2015 Earnings Call||Q3 2015|
|Finisar Corp||FNSR US||12:00||Annual General Meeting|
|Casey’s General Stores Inc||CASY US||16:00||Q1 2016 Earnings Release||Q1 2016||1.401|
|Korn/Ferry International||KFY US||16:30||Q1 2016 Earnings Call||Q1 2016|
|TiVo Inc||TIVO US||17:00||Q2 2016 Earnings Call||Q2 2016|
|HealthEquity Inc||HQY US||17:00||Q2 2016 Earnings Call||Q2 2016|
|Dave & Buster’s Entertainment Inc||PLAY US||17:00||Q2 2016 Earnings Call||Q2 2016|
|Pep Boys-Manny Moe & Jack/The||PBY US||Aft-mkt||Q2 2016 Earnings Release||Q2 2016||0.103|
|Sparton Corp||SPA US||Aft-mkt||Q4 2015 Earnings Release||Q4 2015||0.737|
|FuelCell Energy Inc||FCEL US||Aft-mkt||Q3 2015 Earnings Release||Q3 2015||-0.023|
|Korn/Ferry International||KFY US||Aft-mkt||Q1 2016 Earnings Release||Q1 2016||0.456|
|TiVo Inc||TIVO US||Aft-mkt||Q2 2016 Earnings Release||Q2 2016||0.093|
|HealthEquity Inc||HQY US||Aft-mkt||Q2 2016 Earnings Release||Q2 2016||0.079|
|Triangle Petroleum Corp||TPLM US||Aft-mkt||Q2 2016 Earnings Release||Q2 2016||-0.085|
|Dave & Buster’s Entertainment Inc||PLAY US||Aft-mkt||Q2 2016 Earnings Release||Q2 2016||0.226|
|Men’s Wearhouse Inc/The||MW US||17:30||Q2 2016 Earnings Release||Q2 2016||1.048|
|XPO Logistics Inc||XPO US||Special Meeting|