Live Index – Wed, 09 Sep 2015 Premarket
September E-mini S&Ps (ESU15 +0.98%) are up +0.86% at a 1-week high and European stocks are up +2.18% at a 2-week high on the heels of a rally in Asian stock markets. Gains in commodity producers and miners led the overall market higher as the price of copper (HGZ15 +0.08%) climbed to a 1-1/2 month high. Asian stocks closed higher: Japan +7.71%, Hong Kong +4.10%, China +2.29%, Taiwan +3.57%, Australia +2.07%, Singapore +1.49%, South Korea +2.92%, India +1.59%. Japan’s Nikkei Stock Index surged nearly 8% to a 1-week high, the biggest one day rally in 7 years, after Prime Minister Abe pledged to lower the corporate tax rate by at least 3.3 percentage points next year and “aim to go beyond that if possible.” Japanese stocks also received a boost on speculation the BOJ may need to expand stimulus measures after people familiar with discussions said some BOJ officials see a growing likelihood they may have to lower their inflation outlook and delay the time frame for reaching its price target due to cheaper oil prices. China’s Shanghai Composite rose to a 2-week high after China’s finance ministry pledged to accelerate construction of some major projects and reduce companies’ tax burden.
The dollar index (DXY00 +0.37%) is up +0.29%. EUR/USD (^EURUSD) is down -0.49%. USD/JPY (^USDJPY) is up +0.67% at a 1-week high.
Dec T-note prices (ZNZ15 -0.20%) are down -7.5 ticks at a 1-week low as the rally in global stocks reduces demand for the safety of government debt.
Speaking at the World Economic Forum in Davos, Switzerland, Chinese Premier Li Keqiang said that while China’s economy faces large downward pressures in 2015, China won’t have systemic risks and will seek to improve the quality of growth to ensure an “appropriate” pace of expansion.
Key U.S. news today includes: (1) weekly MBA mortgage applications (previous +11.3% with purchase sub-index +4.1% and refi sub-index +16.8%), (2) July JOLTS job openings (expected +51,000 to 5.300 million, Jun -108,000 to 5.249 million), and (3) the Treasury’s auction of $ 21 billion of 10-year T-notes.
There are 4 of the Russell 1000 companies that report earnings today: John Wiley (consensus $ 0.49), HD Supply (0.54), Palo Alto Networks (0.25), Lumentum Holdings (0.20).
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.
Intel (INTC +3.44%) was initiated with a ‘Buy’ at Sterne Agee CRT with a price target of $ 38.
Netflix (NFLX -3.89%) rose over 1% in pre-market trading after it announced plans to start operations in Hong Kong, Taiwan, Singapore and South Korea early next year.
Apple (AAPL +2.78%) climbed over 1% in pre-market trading ahead of its annual show where a new version of the iPhone is expected to be unveiled.
Men’s Wearhouse (MW +4.55%) reported Q2 adjusted EPS of $ 1.07, higher than consensus of $ 1.05, although Q2 revenue of $ 920.70 million was below consensus of $ 946.76 million.
Comerica (CMA +2.71%) was initiated with an ‘Underperform’ at BMO Capital with a price target of $ 44.
Soros Fund Management reported a 5.53% passive stake in PMC-Sierra (PMCS +3.05%) .
Celgene (CELG +4.80%) was initiated with a ‘Buy’ at Jefferies with a price target of $ 140.
Biogen (BIIB +2.14%) was initiated with a ‘Buy’ at Jefferies with a price target of $ 348.
Macy’s (M +1.32%) said it will close 35-40 “underperforming” stores, representing approximately 1% of the total Macy’s sales, in early 2016.
Pep Boys (PBY +2.36%) reported Q2 EPS of 9 cents, below consensus of 13 cents.
Falcon Edge Capital reported a 5.5% passive stake in Pandora (P +3.45%) .
CHC Group (HELI +2.56%) reported Q1 EPS of 62 cents, higher than consensus of 59 cents.
Casey’s General Stores (CASY +2.79%) reported Q1 EPS of $ 1.57, better than consensus of $ 1.39.
First Solar (FSLR +4.62%) was initiated with an ‘Outperform’ at Oppenheimer with a price target of $ 61.
Tesla (TSLA +2.58%) rose 1.6% in pre-market trading after it was initiated with an ‘Outperform’ at Oppenheimer with a price target of $ 340.
Sep E-mini S&Ps (ESU15 +0.98%) this morning are up +17.00 points (+0.86%) at a 1-week high. Tuesday’s closes: S&P 500 +2.51%, Dow Jones +2.42%, Nasdaq +2.84%. The S&P 500 on Tuesday closed sharply higher on carryover support from a rally in China’s Shanghai Composite which closed higher for the first time in the last 5 sessions, and on M&A activity after Emera Inc purchased Teco Energy for $ 6.5 billion and Media General bought Meredith Corp for $ 2.4 billion. In addition, basic-resource companies and commodity producers saw strength after the price of copper jumped to a 1-1/4 month high.
Dec 10-year T-notes (ZNZ15 -0.20%) this morning are down -7.5 ticks at a 1-week low. Tuesday’s closes: TYZ5 -15.00, FVZ5 -8.50. Dec T-notes Tuesday closed lower on (1) reduced safe-haven demand with the sharp rally in the U.S. stock market and the first higher close in five sessions in the China Shanghai Composite index. T-notes also saw weakness on supply pressures as the Treasury auctions $ 58 billion of Treasury coupons this week.
The dollar index (DXY00 +0.37%) this morning is up +0.282 (+0.29%). EUR/USD (^EURUSD) is down -0.0055 (-0.49%). USD/JPY (^USDJPY) is up +0.80 (+0.67%) at a 1-week high. Tuesday’s closes: Dollar Index -0.244 (-0.25%), EUR/USD +0.0051 (+0.46%), USD/JPY +0.905 (+0.76%). The dollar index on Tuesday closed lower on (1) a rally in commodity-producer currencies after the Chinese Shanghia index closed higher, and (2) strength in EUR/USD after Eurozone Q2 GDP was revised higher.
Oct crude oil (CLV15 -1.48%) this morning is down -50 cents (-1.09%) and Oct gasoline (RBV15 -0.94%) is down -0.0087 (-0.62%). Tuesday’s closes: CLV5 -0.11 (-0.24%), RBV5 -0.0161 (-1.14%). Oct crude oil and gasoline on Tuesday closed lower on concern about Chinese domestic demand after China Aug imports fell -13.8% y/y, weaker than expectations of -7.9% y/y. Crude oil saw support from the weaker dollar and the rally in global stocks.
|US||0700 ET||Weekly MBA mortgage applications, previous +11.3% with purchase sub-index +4.1% and refi sub-index +16.8%.|
|1000 ET||Jul JOLTS job openings expected +51,000 to 5.300 million, Jun -108,000 to 5.249 million.|
|1300 ET||Treasury auctions $ 21 billion of 10-year T-notes.|
|JPN||0100 ET||Japan Aug consumer confidence expected +0.2 to 40.5, Jul 40.3.|
|0200 ET||Japan Aug machine tool orders, Jul +1.7% y/y.|
|1950 ET||Japan Jul machine orders expected +3.0% m/m and +10.3% y/y, Jun -7.9% m/m and +16.6% y/y.|
|1950 ET||Japan Aug PPI expected -0.4% m/m and -3.3% y/y, Jul -0.2% m/m and -3.0% y/y.|
|UK||0430 ET||UK Jul industrial production expected +0.1% m/m and +1.4% y/y, Jun -0.4% m/m and +1.5% y/y.|
|0430 ET||UK Jul manufacturing production expected +0.2% m/m and +0.5% y/y, Jun +0.2% m/m and +0.5% y/y.|
|1000 ET||UK Aug NIESR GDP estimate, Jul +0.7% q/q.|
|1901 ET||UK Aug RICS house price balance expected 46%, Jul 44%.|
|CHI||2130 ET||China Aug CPI expected +1.8% y/y, Jul +1.6% y/y. Aug PPI expected -5.6% y/y, Jul -5.4% y/y.|
|n/a||China Aug new yuan loans expected +850.0 billion yuan, Jul +1.48 trillion yuan.|
|American Airlines Group Inc||AAL US||Bef-mkt||August 2015 Sales and Revenue Release – Traffic Results||2015|
|John Wiley & Sons Inc||JW/A US||Bef-mkt||Q1 2016 Earnings Release||Q1 2016||0.485|
|HD Supply Holdings Inc||HDS US||6:00||Q2 2016 Earnings Release||Q2 2016||0.542|
|AptarGroup Inc||ATR US||8:00||Analyst Day||Y 2015|
|HD Supply Holdings Inc||HDS US||8:00||Q2 2016 Earnings Call||Q2 2016|
|MasterCard Inc||MA US||8:30||Investment Community Meeting||Y 2015|
|John Wiley & Sons Inc||JW/A US||10:00||Q1 2016 Earnings Call||Q1 2016|
|Apple Inc||AAPL US||13:00||Special Media Event|
|Palo Alto Networks Inc||PANW US||16:30||Q4 2015 Earnings Call||Q4 2015|
|United Continental Holdings Inc||UAL US||17:00||August 2015 Sales and Revenue Release – Operational Performance||2015|
|Palo Alto Networks Inc||PANW US||Aft-mkt||Q4 2015 Earnings Release||Q4 2015||0.25|
|Cisco Systems Inc||CSCO US||ITC Case Begins Cisco Systems vs. Arista Networks Inc. Patent Infringement|
|Arista Networks Inc||ANET US||ITC Case Begins Cisco Systems vs. Arista Networks Inc. Patent Infringement|
|Lumentum Holdings Inc||LITE US||Q4 2015 Earnings Release||Q4 2015||0.199|