Live Index – Tue, 22 Sep 2015 Premarket
December E-mini S&Ps (ESZ15 -1.41%) are down -1.44% at a 1-week low and European stocks are down -2.51% at a 4-week low. A -2.53% drop in copper prices (HGZ15 -2.57%) to a 2-week low has undercut miners and commodity producers with Rio Tinto Group and BHP Billiton Ltd. down over 4%, while Glencore Plc, the world’s second-largest copper producer, tumbled 9%. European auto makers have been hammered with Volkswagen AG down 20% as U.S. officials familiar with the inquiry said the Justice Department is investigating claims that Volkswagen cheated on federal air-pollution tests. Peugeot SA slid 6.5% after France’s finance minister called for a European investigation of the auto industry. Health-care stocks are also lower, with Roche Holding AG and Novartis AG down almost 3%, after U.S. presidential candidate Clinton said she will propose price caps and research-and-development spending guidelines for the pharmaceutical industry. Asian stocks closed mixed: Japan closed for holiday, Hong Kong +0.18%, China +0.92%, Taiwan +0.71%, Australia +0.74%, Singapore -0.48%, South Korea +0.83%, India -2.07%. China’s Shanghai Composite posted a 1-week high as brokerage stocks rallied on prospects of an exchange link between London and Shanghai after British officials said they will study the feasibility of setting up a London-Shanghai stock trading link.
The dollar index (DXY00 +0.16%) is up +0.14% at a 1-week high. EUR/USD (^EURUSD) is down -0.27% at a 1-1/2 week low. USD/JPY (^USDJPY) is down -0.55%.
Dec T-note prices (ZNZ15 +0.28%) are up +11 ticks on carryover support from a rally in German bunds as the 10-year bund yield fell to a 4-week low of 0.619% as speculation mounts the ECB will expand stimulus after ECB Executive Board member Praet said that policy makers would “forcefully react” to defend their inflation objective.
Key U.S. news today includes: (1) July FHFA house price index (expected +0.4% m/m, Jun +0.2% m/m), (2) Sep Richmond Fed manufacturing index (expected +2 to 2, Aug -13 to 0), and (3) the Treasury’s auction of $ 26 billion of 2-year T-notes.
There are 8 companies in the Russell 1000 index that report earnings today: AutoZone (consensus $ 12.68), General Mills (0.69), Darden Restaurants (0.58), FactSet (1.47), CarMax (0.76), ConAgra (0.40), Carnival (1.63), Copart (0.39).
U.S. IPO’s scheduled to price today include: none.
Equity conferences during the remainder of this week include: Raymond James North American Equities Conference on Tue, Scotia Capital Fertilizer & Chemicals Conference on Tue, and Mitsubishi UFJ Securities: Utilities Conference – New York on Thu.
NetApp (NTAP -0.45%) was downgraded to ‘Sell’ from ‘Neutral’ at Goldman Sachs.
ConAgra Foods (CAG +0.43%) reported Q1 EPS of 45 cents, higher than consensus of 40 cents.
F5 Networks (FFIV +0.55%) was downgraded to ‘Neutral’ from ‘Buy’ at Guggenheim.
CarMax (KMAX) reported Q2 EPS of 82 cents, better than consensus of 76 cents.
General Mills (GIS +0.39%) reported Q1 EPS of 79 cents, above consensus of 69 cents,
Darden Restaurants (DRI +1.17%) reported Q1 EPS of 68 cents, better than consensus of 58 cents.
AutoZone (AZO +0.47%) reported Q4 EPS of $ 12.75, higher than consensus of $ 12.68.
HSBC (HSBC +0.87%) was upgraded to ‘Conviction Buy’ from ‘Buy’ at Goldman SAchs.
The Apple (AAPL +1.55%) iPhone 6s and iPhone 6s Plus are now sold out worldwide ahead of Friday’s launch, reports 9 to 5 Mac.
Chubb (CB +1.57%) was initiated with a ‘Buy’ at Sterne Agee CRT.
Red Hat (RHT +2.34%) reported Q2 EPS of 47 cents, higher than consensus of 44 cents, and then raised guidance on fiscal 2016 EPS to $ 1.85-$ 1.87f rom $ 1.81-$ 1.84, above consensus of $ 1.83.
Thor Industries (THO +0.96%) reported Q4 EPS of $ 1.31, better than consensus of $ 1.30.
Jack in the Box (JACK -0.75%) announced a new $ 200 million stock repurchase program.
Luminus Management reported a 6.6% passive stake in TransAlta (TAC -2.56%) .
Dec E-mini S&Ps (ESZ15 -1.41%) this morning are down sharply by -28.25 points (-1.44%). Monday’s closes: S&P 500 +0.46%, Dow Jones +0.77%, Nasdaq +0.28%. The S&P 500 index on Monday closed higher on positive carryover from a +1.89% rally in China’s Shanghai Composite and on speculation that uneven economic data may further delay a Fed interest rate increase after U.S. Aug existing home sales fell -4.8% to 5.31 million, weaker than expectations of -1.6% to 5.50 million. Energy-producer stocks rose as crude oil prices rallied.
Dec 10-year T-notes (ZNZ15 +0.28%) this morning are up +11 ticks. Monday’s closes: TYZ5 -19.00, FVZ5 -9.75. Dec T-notes Monday closed lower on supply pressures as the Treasury auctions $ 103 billion of T-notes this week, comments from San Francisco Fed President Williams who said he expects a Fed rate increase sometime this year, and reduced safe-haven demand for T-notes as stocks rallied.
The dollar index (DXY00 +0.16%) this morning is up +0.133 (+0.14%) at a 1-week high. EUR/USD (^EURUSD) is down -0.0030 (-0.27%) at a 1-1/2 week low. USD/JPY (^USDJPY) is down -0.66 (-0.55%). Monday’s closes: Dollar Index +1.031 (+1.09%), EUR/USD -0.0108 (-0.96%), USD/JPY +0.58 (+0.48%). The dollar index on Monday climbed to a 1-week high on San Francisco Fed President Williams’ comment that Thursday’s FOMC decision was a “close call” and that he expects a Fed rate increase sometime this year. EUR/USD fell to a 1-week low on deflation concerns after German Aug PPI fell -0.5% m/m, the largest drop in 7 months.
Nov crude oil (CLX15 -2.45%) this morning is down -$ 1.16 a barrel (-2.47%) and Nov gasoline (RBX15 -0.74%) is down -0.0071 (-0.51%). Monday’s closes: CLX5 +1.70 (+3.78%), RBX5 +0.0443 (+3.31%). Nov crude oil and gasoline prices on Monday closed higher on last Friday’s Baker Hughes report showing that active U.S. oil rigs fell for a third straight week and on the rally in stocks that boosted confidence in the economic and energy demand outlook.
|US||0900 ET||Jul FHFA house price index expected +0.4% m/m, Jun +0.2% m/m.|
|1000 ET||Sep Richmond Fed manufacturing survey expected +2 to 2, Aug -13 to 0.|
|1300 ET||Treasury auctions $ 26 billion of 2-year T-notes.|
|1500 ET||USDA Aug Cold Storage.|
|1830 ET||Atlanta Fed President Dennis Lockhart speaks on the economy to the Alabama World Affairs Council.|
|UK||0430 ET||UK Aug public sector net borrowing expected +8.8 billion pounds, Jul -2.1 billion pounds.|
|0600 ET||UK Sep CBI trends total orders expected +1 to 0, Aug -1. Sep CBI trends selling prices expected +1 to -5, Aug 6.|
|EUR||1000 ET||Eurozone Sep consumer confidence expected -0.1 to -7.0, Aug -6.9.|
|CHI||2145 ET||China Sep Caixin manufacturing PMI expected +0.2 to 47.5, Aug -0.5 to 47.3.|
|AutoZone Inc||AZO US||Bef-mkt||Q4 2015 Earnings Release||Q4 2015||12.682|
|General Mills Inc||GIS US||Bef-mkt||Q1 2016 Earnings Release||Q1 2016||0.689|
|Darden Restaurants Inc||DRI US||Bef-mkt||Q1 2016 Earnings Release||Q1 2016||0.575|
|FactSet Research Systems Inc||FDS US||Bef-mkt||Q4 2015 Earnings Release||Q4 2015||1.471|
|CarMax Inc||KMX US||Bef-mkt||Q2 2016 Earnings Release||Q2 2016||0.755|
|ConAgra Foods Inc||CAG US||7:30||Q1 2016 Earnings Release||Q1 2016||0.397|
|MEDNAX Inc||MD US||8:00||Analyst and Investor Day||Y 2015|
|General Mills Inc||GIS US||8:30||Q1 2016 Earnings Call||Q1 2016|
|Darden Restaurants Inc||DRI US||8:30||Q1 2016 Earnings Call||Q1 2016|
|CarMax Inc||KMX US||9:00||Q2 2016 Earnings Call||Q2 2016|
|Carnival Corp||CCL US||9:15||Q3 2015 Earnings Release||Q3 2015||1.626|
|ConAgra Foods Inc||CAG US||9:30||Q1 2016 Earnings Call||Q1 2016|
|AutoZone Inc||AZO US||10:00||Q4 2015 Earnings Call||Q4 2015|
|Carnival Corp||CCL US||10:00||Q3 2015 Earnings Call||Q3 2015|
|Bank of America Corp||BAC US||10:00||Extraordinary Shareholders Meeting||Y 2015|
|FactSet Research Systems Inc||FDS US||11:00||Q4 2015 Earnings Call||Q4 2015|
|Splunk Inc||SPLK US||12:00||Investor and Analyst Meeting||Y 2015|
|Parker-Hannifin Corp||PH US||13:00||Investor Meeting||Y 2015|
|Copart Inc||CPRT US||Aft-mkt||Q4 2015 Earnings Release||Q4 2015||0.385|