Live Index – Mon, 14 Sep 2015 Premarket
December E-mini S&Ps (ESZ15 +0.09%) are up +0.29% on an increase in M&A activity as Solera Holdings jumped 8% in pre-market trading after Vista Equity Partners agreed to buy the company for $ 6.5 billion. European stocks were up +0.28% as gains in miners led the overall market higher with Rio Tinto Group and BHP Billiton Ltd. up more than 2% after Jeffries upgraded its recommendation on BHP Billiton to ‘Buy’ from ‘Hold.’ European stocks also received a boost after Eurozone Jul industrial production rose more than expected at the fastest pace in 5 months. Asian stocks closed mixed: Japan -1.63%, Hong Kong +0.27%, China -2.67%, Taiwan +0.02%, Australia +0.50%, Singapore -0.57%, South Korea -0.29%, India +0.96%. Japanese stocks fell on economic concerns after Japan Jul industrial production was revised lower and China’s Shanghai Composite settled lower after data showed that China Aug fixes asset investment ex-rural households rose at the slowest pace in 14-1/2 years.
The dollar index (DXY00 +0.05%) is up +0.05% as it rebounded from a 2-week low. EUR/USD (^EURUSD) is down -0.19%. USD/JPY (^USDJPY) is down -0.27%.
Dec T-note prices (ZNZ15 +0.02%) are down -1 tick.
ECB Governing Council member Bonnici said that the full impact of the ECB’s QE program “will take time” and that it was “too early” to decide on new stimulus.
Eurozone Jul industrial production rose +0.6% m/m, twice as much as expectations of +0.3% m/m and the most in 5 months. On an annual basis, Jul industrial production rose +1.9% y/y, stronger than expectations of +0.7% y/y.
China Aug fixed-asset investment (excluding rural households) rose +10.9% y/y, less than expectations of +11.2% y/y and the slowest pace of increase in 14-1/2 years.
China Aug industrial production rose +6.1% y/y, weaker than expectations of +6.5% y/y.
Japan Jul industrial production was revised lower to -0.8% m/m and unch y/y from the originally reported -0.6% m/m and +0.2% y/y.
Key U.S. news today includes: (1) anticipation of the Wed/Thu FOMC meeting where there is about a 30% chance of a Fed rate hike.
Three of the Russell 2000 companies report earnings today include Unilife Corp. (consensus -$ 0.12), Park City Group (-0.03), Energy XXI Ltd (-1.26).
U.S. IPO’s scheduled to price today include: none.
Equity conferences this week include: Bank of America Merrill Lynch Power & Gas Leaders Conference on Wed-Thu, Citi 2015 Industrials Conference on Wed-Thu, Deutsche Bank Technology Conference on Wed-Thu, Morgan Stanley Industrials Conference on Wed-Thu, Barclays Capital Global Financial Services Conference on Wed-Fri, Credit Suisse Basic Materials Conference on Wed-Fri, Goldman Sachs Communacopia Conference on Wed-Fri, Morgan Stanley Global Healthcare Conference on Wed-Fri, Bank of America Merrill Lynch Global Health Care Conference on Thu, Imperial Capital Global Opportunities Conference on Thu, and AACR CRI-CIMT-EATI Immunotherapy Conference on Thu-Fri.
Solera Holdings (SLH +3.86%) jumped over 8% in pre-market trading after Vista Equity Partners agreed to buy the company for $ 6.5 billion.
Wisconsin Energy (WEC +1.35%) was upgraded to ‘Buy’ from ‘Hold’ at Argus.
Brean Capital reiterated its ‘Buy’ rating on Salesforce (CRM +0.44%) and said the stock should be a core holding.
H&R Block (HRB +1.20%) was downgraded to ‘Neutral’ from ‘Buy’ at BTIG.
Exelon (EXC -0.17%) was upgraded to ‘Buy’ from ‘Neutral’ at SunTrust.
Marvell (MRVL -16.21%) was downgraded to ‘Neutral’ from ‘Buy’ at B. Riley.
AstraZeneca (AZN +0.06%) was upgraded to ‘Buy’ from ‘Hold’ at Deutsche Bank.
Alexion Pharmaceuticals (ALXN +0.16%) was downgraded to ‘Equal Weight’ from ‘Overweight’ at Barclays.
Xilinx (XLNX +0.38%) was upgraded to ‘Buy’ from ‘Neutral’ at Goldman Sachs.
Nokia (NOK -0.61%) was upgraded to ‘Conviction Buy’ from ‘Buy’ at Goldman Sachs.
BHP Billiton (BHP +0.38%) was upgraded to ‘Buy’ from ‘Hold’ at Jefferies.
Chico’s (CHS +0.13%) said it is contemplating a sale of the company after offers from private-equity buyers including Sycamore Partners, according to Bloomberg.
Monster Beverage (MNST +0.40%) announced a new $ 500 million share repurchase program.
Baker Brothers reported a 39.6% stake in Aquinox (AQXP +4.86%) .
Dec E-mini S&Ps (ESZ15 +0.09%) this morning are up +5.75 points (+0.29%). Friday’s closes: S&P 500 +0.45%, Dow Jones +0.63%, Nasdaq +0.63%. The S&P 500 Friday recovered from early losses and closed higher on speculation the Fed won’t raise interest rates at the Sep 16-17 FOMC meeting and on strength in health-care stocks after Gilead Sciences and Pfizer rallied sharply. Stocks had traded lower early after the U.S. Sep University of Michigan consumer sentiment fell to a 1-year low (-6.2 to 85.7 vs. expectations of -0.8 to 91.1) and after energy producers sold off as crude oil declined.
Dec 10-year T-notes (ZNZ15 +0.02%) this morning are down -1 tick. Friday’s closes: TYZ5 +12.00, FVZ5 +7.50. Dec T-notes Friday closed higher on carryover support from a rally in German bunds after ECB Executive Board member Coeure said that ECB asset purchases will continue for “as long as necessary.” Another supportive factor for T-notes was the larger-than-expected drop in U.S. Sep University of Michigan consumer sentiment to a 1-year low, which may prompt the Fed to delay a rate hike.
The dollar index (DXY00 +0.05%) this morning is up +0.045 (+0.05%). EUR/USD (^EURUSD) is down -0.0021 (-0.19%). USD/JPY (^USDJPY) is down -0.32 (-0.27%). Friday’s closes: Dollar Index -0.262 (-0.27%), EUR/USD +0.00567 (+0.50%), USD/JPY -0.03 (-0.02%). The dollar index Friday dropped to a 1-week low on concern that consumer spending may slow and undercut economic growth after the U.S. Sep University of Michigan consumer sentiment fell to a 1-year low. The dollar also fell on speculation the recent volatility in global financial markets that may prompt the Fed to delay an interest rate increase.
Oct crude oil (CLV15 -0.22%) this morning is down -10 cents (-0.22%) and Oct gasoline (RBV15 -0.50%) is down -0.0063 (-0.46%). Friday’s closes: CLV5 -1.29 (-2.81%), RBV5 -0.0237 (-1.70%). Oct crude oil and gasoline on Friday closed lower with Oct gasoline at a 1-1/2 week low on concern that the U.S. crude oil supply glut will persist with U.S. oil inventories nearly 100 million bbl above their 5-year seasonal average. Prices remained lower after a report from Goldman Sachs said that the oil market is more oversupplied than expected and that prices may need to fall to near $ 20 a barrel to clear the oversupply.
|US||1100 ET||USDA weekly grain export inspections.|
|1600 ET||USDA weekly crop progress.|
|JPN||0030 ET||Japan Jul tertiary industry index expected +0.2% m/m, Jun +0.3% m/m.|
|0030 ET||Revised Japan Jul industrial production, previous -0.6% m/m and +0.2% y/y. Jul capacity utilization, Jun +0.7% m/m.|
|EUR||0500 ET||Eurozone Jul industrial production expected +0.3% m/m and +0.7% y/y, Jun -0.4% m/m and +1.2% y/y.|
|Unilife Corp||UNIS US||Aft-mkt||Q4 2015 Earnings Release||Q4 2015||-0.12|
|Park City Group Inc||PCYG US||Aft-mkt||Q4 2015 Earnings Release||Q4 2015||-0.03|
|Energy XXI Ltd||EXXI US||Q4 2015 Earnings Release||Q4 2015||-1.26|