Live Index – Fri, 04 Dec 2015 Premarket
December E-mini S&Ps (ESZ15 +0.28%) are up +0.32% on expectations that today’s U.S. Nov non-farm payroll report will show strength in the labor market, while European stocks are down -0.58% at a 6-week low on lingering disappointment that the ECB failed to expand QE at Thursday’s policy meeting. Losses in European stocks were limited after German Oct factory orders rose more than expected. Asian stocks settled lower on the heels of the sell-off seen in U.S. stocks on Thursday: Japan -2.18%, Hong Kong -0.81%, China -1.67%, Taiwan -0.68%, Australia -1.46%, Singapore -0.17%, South Korea -1.03%, India -0.96%.
The dollar index (DXY00 +0.55%) is up +0.63%. EUR/USD (^EURUSD) is down -0.40%. USD/JPY (^USDJPY) is up +0.17%.
Mar T-note prices (ZNH16 +0.11%) are up +4.5 ticks.
Germany’s Bundesbank kept its German 2015 GDP estimate at 1.7% and its 2016 GDP projection at 1.8%, but lowered its German 2015 inflation projection to 0.2% from 0.5% forecast in June and cut its 2016 German inflation outlook to 1.1% from 1.8%.
German Oct factory orders rose +1.8% m/m, the first increase in 4 months and stronger than expectations of +1.2% m/m.
Key U.S. news today includes: (1) Nov non-farm payrolls (expected +200,000, Oct +271,000) and Nov private payrolls (expected +190,000, Oct +268,000), (2) Nov manufacturing payrolls (expected unch, Oct unch), (3) Nov average hourly earnings (expected +0.2% m/m and +2.3% y/y, Oct +0.4% m/m and +2.5% y/y), (4) Nov average weekly hours all employees (expected unch at 34.5 hours), (5) Oct trade balance (expected -$ 40.50 billion, Sep -$ 40.81 billion), (6) Philadelphia Fed President Patrick Harker gives opening remarks at a Philadelphia Fed Policy Forum on monetary policy renormalization, (7) St. Lois Fed President James Bullard speaks at a Philadelphia Fed Policy Forum on “The New Normal for the U.S. Economy,” (8) Minneapolis Fed President Narayana Kocherlakota speaks at a Philadelphia Fed Policy Forum on monetary policy renormalization.
There are 4 of the Russell 2000 companies report earnings today: Genesco (consensus $ 1.30), Big Lots (-0.01), Hovanian Enterprises (0.10), Oil-Dri Corp of America (n/a).
U.S. IPO’s scheduled to price today: none.
Equity conferences during the remainder of this week include: none.
Foot Locker (FL -3.01%) was rated a new ‘Buy’ at BB&T Capital with a price target of $ 80.
Electronic Arts (EA -3.06%) was upgraded to ‘Overweight’ from ‘Neutral’ at Atlantic Equities with a 12-month price target of $ 84.
EMC Corp. (EMC -0.97%) was upgraded to ‘Ourperform’ from ‘Underperform’ at CLSA with a price ratget of $ 30.
Symantec (SYMC +0.25%) was downgraded to ‘Hold’ from ‘Buy’ at Argus.
The Gap (GPS -0.46%) fell 2% in after-hours trading after it said its November comparable sales were down -8.0% y/y, a bigger decline than estimates of -6.0% y/y.
Zumiez (ZUMZ -6.96%) dropped over 11% in after-hours trading after it forecast Q4 sales of $ 226 million-$ 231 million, well below consensus of $ 254.6 million, and said it sees Q4 EPS between 40 cents and 46 cents, less than consensus of 63 cents.
Ulta Salon Cosmetics & Fragrance (ULTA -0.20%) climbed 6% in after-hours trading after it reported Q3 EPS of $ 1.11, higher than consensus of $ 1.05.
Cooper Cos. (COO -4.91%) sank over 10% in after-hours trading after it reported Q4 adjusted EPS of $ 2.00, below consensus of $ 2.11, and then lowered guidance on fiscal 2016 adjusted EPS to $ 7.60-$ 7.90, below consensus of $ 8.42.
Five Below (FIVE +0.83%) rose nearly 8% in after-hours trading after it reported Q3 EPS of 8 cents, higher than consensus of 7 cents.
Barnes & Noble (BKS -4.44%) tumbled over 10% in after-hours trading after it reported Q2 sales of $ 894.7 million, less than consensus of $ 918 million, as its Q2 core comparable sales (ex-Nook products) were down -0.5%, weaker than consensus of up +1.0%.
Ziopharm Oncology (ZIOP -3.94%) slipped nearly 4% in after-hours trading after the stock was rated a new ‘Underperform’ at Wells Fargo.
Ambarella (AMBA -4.27%) dropped over 6% in after-hours trading after it reported Q3 adjusted EPS of $ 1.08, better than consensus of 86 cents, but then lowered guidance on Q4 adjusted net income to $ 15 million-$ 17 million, below consensus of $ 21.1 million.
Fate Therapeutics (FATE -0.24%) jumped 10% in after-hours trading after the stock was rated a new ‘Outperform’ at Wells Fargo.
Dec E-mini S&Ps (ESZ15 +0.28%) this morning are up +6.50 points (+0.32%). Thursday’s closes: S&P 500 -1.44%, Dow Jones -1.42%, Nasdaq -1.70%. The S&P 500 on Thursday tumbled to a 2-week low and closed sharply lower on carryover weakness from a plunge in European stocks after the ECB failed to increase asset purchases following its policy meeting. Also pressuring stock prices was the -3.2 point decline in the Nov ISM non-manufacturing index to 55.9, weaker than expectations of -1.1 to 58.0 and the slowest pace of expansion in 6 months, and comments from Fed Chair Yellen who said the U.S. economy is ready for a Fed interest rate hike.
Mar 10-year T-notes (ZNH16 +0.11%) this morning are up +4.5 ticks. Thursday’s closes: TYH6 -1-5.50, FVH6 -16.00. Mar T-notes on Thursday sold-off down to a 3-week low and closed lower on carryover weakness from a slide in German bund prices which fell after the ECB failed to expand QE from its current pace of 60 billion euros a month. Also, comments from Fed Chair Yellen undercut T-notes when she said that conditions for an interest rate increase have been met.
The dollar index (DXY00 +0.55%) this morning is up +0.611 (+0.63%). EUR/USD (^EURUSD) is down -0.0044 (-0.40%). USD/JPY (^USDJPY) is up +0.21 (+0.17%). Thursday’s closes: Dollar Index -2.372 (-2.37%), EUR/USD +0.0325 (+3.06%), USD/JPY -0.63 (-0.51%). The dollar index on Thursday sank to a 4-week low and closed sharply lower after EUR/USD rebounded from a 7-1/2 month low and jumped to a 1-month high when the ECB cut the deposit rate by 10 bp as expected, but failed to expand QE from the current pace of 60 billion euros a month, which led to massive short covering in EUR/USD.
Jan crude oil (CLF16 +1.22%) this morning is up +62 cents (+1.51%) and Jan gasoline (RBF16 unch) is up +0.0020 (+0.15%). Thursday’s closes: CLF6 +1.33 (+3.33%), RBF6 +0.0114 (+0.88%). Jan crude oil and gasoline on Thursday closed higher after the dollar index fell to a 1-month low and on short-covering ahead of Friday’s OPEC meeting in Vienna.
|US||0830 ET||Nov non-farm payrolls expected +200,000, Oct +271,000. Nov private payrolls expected +190,000, Oct +268,000. Nov manufacturing payrolls expected unch, Oct unch. Nov unemployment rate expected unch at 5.0%, Oct -0.1 to 5.0%.|
|0830 ET||Nov avg hourly earnings expected +0.2% m/m and +2.3% y/y, Oct +0.4% m/m and +2.5% y/y. Nov avg weekly hours all employees expected unch at 34.5 hours.|
|0830 ET||Oct trade balance expected -$ 40.50 billion, Sep -$ 40.81 billion.|
|1015 ET||Philadelphia Fed President Patrick Harker gives opening remarks at a Philadelphia Fed Policy Forum on monetary policy renormalization.|
|1545 ET||St. Lois Fed President James Bullard speaks at a Philadelphia Fed Policy Forum on The New Normal for the U.S. Economy.|
|1600 ET||Minneapolis Fed President Narayana Kocherlakota speaks at a Philadelphia Fed Policy Forum on monetary policy renormalization.|
|JPN||0000 ET||Japan Nov consumer confidence index expected +0.2 to 41.7, Oct 41.5.|
|GER||0200 ET||German Oct factory orders expected +1.2% m/m and -2.5% y/y, Sep -1.7% m/m and -1.0% y/y.|
|0330 ET||German Nov Markit construction PMI, Oct 51.8.|
|UK||0400 ET||UK Nov new car registrations, Oct -1.1% y/y.|
|EUR||1145 ET||ECB President Mario Draghi speaks to the Economic Club of New York.|
|Big Lots Inc||BIG US||Bef-mkt||Q3 2016 Earnings Release||Q3 2016||-0.005|
|Genesco Inc||GCO US||Bef-mkt||Q3 2016 Earnings Release||Q3 2016||1.298|
|Hovnanian Enterprises Inc||HOV US||Bef-mkt||Q4 2015 Earnings Release||Q4 2015||0.098|
|Oil-Dri Corp of America||ODC US||Aft-mkt||Q1 2016 Earnings Release||Q1 2016|