Live Index – Fri, 11 Sep 2015 Premarket
December E-mini S&Ps (ESZ15 -0.30%) are down -0.45% and European stocks are down -0.75% ahead of U.S. Aug producer prices and Sep University of Michigan consumer sentiment that is expected to decline for a third month. Energy producers and basic-resource companies are weaker and are dragging the overall market lower as commodity prices weakened. Declines in telecommunication stocks is also adding to weakness in European stocks after opposition from the European Union led Telenor ASA and TeliaSonera AB to scrap a merger of their Danish businesses and may reduce M&A activity in the telecommunication sector. Asian stocks closed mixed: Japan -0.19%, Hong Kong -0.27%, China +0.07%, Taiwan +0.45%, Australia -0.47%, Singapore closed for holiday, South Korea -1.45%, India -0.05%.
The dollar index (DXY00 +0.22%) is up +0.15%. EUR/USD (^EURUSD) is down -0.05% as it retreated from a 1-week high om comments from ECB Executive Board member Coeure who said ECB asset purchases will continue for “as long as necessary.” USD/JPY (^USDJPY) is down -0.04%.
Dec T-note prices (ZNZ15 +0.11%) are up +5.5 ticks.
ECB Executive Board member Coeure said that ECB “policy of very low interest rates and asset purchase will continue for as long as necessary as growth is still not strong enough to create a sufficient number of jobs.”
China Aug new yuan loans rose 809.6 billion yuan, less than expectations of 850.0 billion yuan.
The German Aug wholesale price index fell -0.8% m/m, the biggest decline in 8 months, and on an annual basis fell -1.1% y/y.
Key U.S. news today includes: (1) Aug PPI final demand (expected -0.1% m/m and -0.9% y/y, Jul +0.2% m/m and -0.8% y/y), (2) Aug PPI ex food & energy (expected +0.1% m/m and +0.7% y/y, Jul +0.3% m/m and +0.6% y/y), (3) preliminary Sep University of Michigan consumer sentiment (expected -0.8 to 91.1, Aug -1.2 to 91.9), (4) Aug monthly budget statement (expected -$ 84.100 billion, Jul -$ 149.187 billion).
There is one of the S&P 500 companies that reports earnings today: Kroger (consensus $ 0.40).
U.S. IPO’s scheduled to price today include: n/a.
Equity conferences during the remainder of this week include: Eurofi Financial Forum 2015 – Luxembourg on Wed-Fri.
Mattress Firm (MFRM -0.43%) reported Q2 adjusted EPS of 67 cents, weaker than consensus of 72 cents and then lowered guidance on fiscal 2015 adjusted EPS view to $ 2.30-$ 2.45 from $ 2.50-$ 2.70, below consensus of $ 2.59.
Casey’s General Stores (CASY +0.23%) was upgraded to ‘Market Perform’ from ‘Underperform’ at BMO.
Premiere Global (PGI +2.07%) will be acquired by Siris Capital for $ 14 a share or approximately $ 1 billion.
Dow Chemical (DOW -0.07%) was initiated with an ‘Outperform’ at Bernstein with a price target of $ 57.
Monsanto (MON +0.56%) was initiated with an ‘Underperform’ at Bernstein with a price target of $ 85.
Nike (NKE +0.47%) was initiated with a ‘Buy’ at B. Riley with a price target of $ 126.
Goldman Sachs reported a 10.4% passive stake in Columbia Pipeline Partners (CPPL +1.34%) .
Red Hat (RHT +1.02%) was initiated with a ‘Buy’ at BTIG with a price target of $ 85.
Oracle (ORCL +1.40%) was initiated with a ‘Buy’ at BTIG with a price target of $ 44.
Salesforce.com (CRM +1.03%) was initiated with a ‘Buy’ at BTIG with a price target of $ 88.
Restoration Hardware (RH -1.59%) reported Q2 adjusted EPS of 85 cents, better than consensus of 84 cents.
Wendy’s (WEN -0.88%) was initiated with a ‘Buy’ at Guggenheim with a price target of $ 11.
Volt Information Sciences (VISI +1.27%) reported an unexpected Q3 continuing-operations EPS loss of -20 cents, below one estimate of a 31 cent gain.
Finisar (FNSR +1.08%) reported Q1 EPS of 23 cents, below consensus of 26 cents.
Dec E-mini S&Ps (ESZ15 -0.30%) this morning are down -8.75 points (-0.45%). Thursday’s closes: S&P 500 +0.53%, Dow Jones +0.47%, Nasdaq +1.01%. Stocks closed higher after a rally in crude oil lifted energy stocks while a 2% gain in Apple boosted technology stocks. Interest rate concerns eased as well after U.S. Aug import prices fell -11.4% y/y, more than expectations of -11.1% y/y and the biggest annual decline in 5-3/4 years. On the negative side was the decline in Chinese stocks and heightened concerns over emerging markets after S&P cut Brazil’s credit rating to junk with a negative outlook.
Dec 10-year T-notes (ZNZ15 +0.11%) this morning are up +5.5 ticks. Thursday’s closes: TYZ5 -9.00, FVZ5 -3.75. T-notes prices fell after a rally in crude oil boosted inflation expectations as the 10-year T-note breakeven rate rose to a 1-week high. Also, a rally in stocks reduced the safe-haven demand for T-notes.
The dollar index (DXY00 +0.22%) this morning is up +0.143 (+0.15%). EUR/USD ^EURUSD) is down -0.0006 (-0.05%). USD/JPY (^USDJPY) is down -0.05 (-0.04%). Thursday’s closes: Dollar Index -0.556 (-0.58%), EUR/USD +0.0073 (+0.65%), USD/JPY +0.12 (+0.10%). The dollar index fell to a 1-week ow Thursday as the Chinese yuan rose to a 1-month high against the dollar after the PBOC intervened in the offshore market in an attempt to boost the yuan and slow capital outflows out of China. Another negative for the dollar was the weaker-than-expected U.S import price index that may prompt the Fed to delay an interest rate increase.
Oct crude oil (CLV15 -2.46%) this morning is down -$ 1.13 a barrel (-2.46%) and Oct gasoline (RBV15 -2.09%) is down -0.0301 (-2.16%). Thursday’s closes: CLV5 +1.58 (+3.58%), RBV5 +0.0295 (+2.17%). Oct crude oil and gasoline recovered from 1-week lows Thursday and closed higher as the dollar index fell to a 1-week low and after EIA data showed U.S. crude production in the week ended Sep 4 fell -0.9% to 9.135 million bpd, an 8-month low. Oct crude prices ignored the +2.57 million bbl increase in weekly EIA crude inventories, five times more than expectations of +500,000 bbl.
|US||0830 ET||Aug PPI final demand expected -0.1% m/m and -0.9% y/y, Jul +0.2% m/m and -0.8% y/y. Aug PPI ex food & energy expected +0.1% m/m and +0.7% y/y, Jul +0.3% m/m and +0.6% y/y.|
|0830 ET||USDA weekly Export Sales.|
|1000 ET||Preliminary U.S. Sep University of Michigan consumer sentiment expected -0.8 to 91.1, Aug -1.2 to 91.9.|
|1200 ET||USDA Sep WASDE crop production.|
|1400 ET||Aug monthly budget statement expected -$ 84.100 billion, Jul -$ 149.187 billion.|
|GER||0200 ET||Revised German Aug CPI (EU harmonized), previous unch m/m and +0.1% y/y.|
|0200 ET||German Aug wholesale price index, Jul +0.1% m/m and -0.5% y/y.|
|UK||0430 ET||UK Jul construction output expected +0.5% m/m and +0.9% y/y, Jun +0.9% m/m and +2.6% y/y.|
|0430 ET||BOE Aug quarterly inflation expectations, May +2.2% next 12 months.|
|Kroger Co/The||KR US||Bef-mkt||Q2 2016 Earnings Release||Q2 2016||0.396|
|Garmin Ltd||GRMN US||17:00||ITC to Announce Next Stage in Johnson Outdoor vs. Garmin Patent Case|
|NetApp Inc||NTAP US||18:30||Annual General Meeting|