Live Index – Wed, 09 Dec 2015 Premarket
December E-mini S&Ps (ESZ15 -0.11%) are up +0.05% on signs of increased M&A activity as Dow Chemical and DuPont are both up more than 5% in pre-market trading after people with knowledge of the matter said the companies are in late-stage merger talks. European stocks are down -0.18% at a 1-1/2 month low due to weakness in commodity producers and miners as Anglo American Plc plunged nearly 10% to a record low. A larger-than-expected decline in German Oct exports also weighed on European equities. Losses were contained as automakers rose, led by a 4% jump in Volkswagen AG, after the carmaker said the probe into its cars’ carbon-dioxide emissions affects only 36,000 cars, far fewer than previous estimates of 800,000 cars. Asian stocks settled mostly lower: Japan -0.98%, Hong Kong -0.46%, China +0.07%, Taiwan -1.37%, Australia -0.55%, Singapore -0.52%, South Korea +0.07%, India -1.08%. Chinese stocks closed higher after China Nov consumer prices rose more than expected, which reduced deflation concerns, while Japan’s Nikkei Stock Index fell to a 3-week low as weakness in commodity and raw-material producers dragged the overall market lower.
The dollar index (DXY00 -0.44%) is down -0.36%. EUR/USD (^EURUSD) is up +0.29%. USD/JPY (^USDJPY) is down -0.26%.
Mar T-note prices (ZNH16 +0.06%) are up +1 tick.
The German Oct trade balance was in surplus by +22.5 billion euros, more than expectations of +21.7 billion euros. Oct exports fell -1.2% m/m, weaker than expectations of -0.6% m/m. Oct imports fell -3.4% m/m, weaker than expectations of -1.0% m/m and the biggest decline in 3-1/2 years.
China Nov CPI rose +1.5% y/y, higher than expectations of +1.4% y/y, Nov PPI fell -5.9% y/y, less than expectations of -6.0% y/y, but still the fastest pace of decline in 6 years.
Key U.S. news today includes: (1) weekly MBA mortgage applications (previous -0.2% with purchase sub-index +7.7% and refi sub-index -6.0%), (2) Oct wholesale inventories (expected +0.2% m/m, Sep +0.5% m/m) and Oct wholesale trade sales (expected +0.2% m/m, Sep +0.5% m/m), and (3) the Treasury’s auction of $ 21 billion of 10-year T-notes.
There is 1 of the Russell 1000 companies that reports earnings today: lululemon athletica (consensus $ 0.37).
U.S. IPO’s scheduled to price today: Atlassian Corp (TEAM).
Equity conferences during the remainder of this week include: Raymond James Technology and Communications Investors Conference on Mon-Wed, UBS Global Media and Communications Conference on Mon-Wed, Barclays Global Technology, Media and Telecommunications Conference on Tue-Wed, Goldman Sachs U.S. Financial Services Conference on Tue-Wed, Oppenheimer Health Care Conference on Tue-Wed, Wells Fargo Energy Symposium, Bank of America Merrill Lynch Paper, Packaging and Builders Conference on Wed-Thu, Capital One Financial Corp Energy Conference on Wed-Thu, 10th Annual Energy Conference on Thu.
Dow Chemical (DOW -2.17%) and DuPont (DD -0.75%) both rose more than 5% in pre-market trading after people with knowledge of the matter saud the companies are in late-stage merger talks and a deal may be announced some time this week.
Costco (COST +1.05%) fell nearly 5% in pre-market trading after it reported Q1 EPS of $ 1.09, less than consensus of $ 1.17.
Noble Energy (NBL +0.40%) was rated a new ‘Overweight’ at JPMorgan Chase with a $ 42 price target.
Dreamworks Animation (DWA +0.20%) was rated a new ‘Outperform’ at Macquarie with a price target of $ 30.
Yahoo! (YHOO +0.49%) climbed over 2% in after-hours trading after CNBC reported the company will scrap plans to spin off its stake of Alibaba stock.
Hertz Global Holdings (HTZ -3.72%) gained over 3% in after-hours trading after billionaire investor Carl Icahn reported he raised his stake in Hertz to 14.34% from 11.7%.
Kinder Morgan (KMI -4.26%) slid over 6% in after-hours trading after it cut its annual dividend to 50 cents from $ 2.04, a bigger cut than expectations of a cut to $ 1.28.
Wynn Resorts Ltd. (WYNN -4.33%) rose over 5% in after-hours trading after the CEO Stephen Wynn reported he bought 1 million shares of the company’s stock.
Oxford Industries (OXM -1.08%) fell nearly 3% in after-hours trading after it lowered guidance on fiscal 2015 EPS to $ 3.53-$ 3.63 from a September forecast of $ 3.55-$ 3.70, below consensus of $ 3.66.
Dave & Buster’s (PLAY -2.43%) jumped nearly 6% in after-hours trading after it reported Q3 adjusted EPS of 12 cents, four times higher than expectations of 3 cents, and then raised guidance on fiscal 2015 revenue to $ 857 million-$ 861 million from a September estimate of $ 844 million-$ 853 million, higher than consensus of $ 851.8 million.
Smith & Wesson (SWHC +4.65%) reported Q2 adjusted EPS of 25 cents, higher than consensus of 21 cents, and then raised guidance on fiscal 2015 sales to $ 625 million-$ 635 million from an August forecast of $ 610 million-$ 620 million, higher than consensus of $ 623 million.
Aerovironment (AVAV -1.57%) jumped over 8% in after-hours trading after it reported an unexpected Q2 adjusted EPS profit of 19 cents, better than consensus of a -9 cent loss.
Dec E-mini S&Ps (ESZ15 -0.11%) this morning are up +1.00 point (+0.05%). Tuesday’s closes: S&P 500 -0.65%, Dow Jones -0.92%, Nasdaq +0.02%. The S&P 500 on Tuesday closed lower on global growth concerns after Chinese Nov exports fell -6.8% y/y, weaker than expectations of -5.0% y/y and the fifth consecutive monthly decline. Stocks were also undercut by the -151,000 decline in U.S. Oct JOLTS job openings, weaker than expectations of -26,000. Stock prices recovered from their worst levels after crude oil prices rebounded from a 6-3/4 year low.
Mar 10-year T-notes (ZNH16 +0.06%) this morning are up +1 tick. Tuesday’s closes: TYH6 -0.50, FVH6 +0.50. Mar T-notes on Tuesday settled little changed. T-notes received a boost from the weak JOLTS job openings report, the -6.8% y/y decline in Chinese Nov exports, and increased safe-haven demand with the sell-off in stocks. T-notes prices were capped, however, by supply pressures as the Treasury auctions $ 68 billion of T-notes and T-bonds this week.
The dollar index (DXY00 -0.44%) this morning is down -0.353 (-0.36%). EUR/USD (^EURUSD) is up +0.0032 (+0.29%). USD/JPY (^USDJPY) is down -0.32 (-0.26%). Tuesday’s closes: Dollar Index -0.181 (-0.18%), EUR/USD +0.0055 (+0.51%), USD/JPY -0.44 (-0.36%). The dollar index on Tuesday closed lower. The dollar was undercut by the larger-than-expected decline in U.S. Oct JOLTS job openings. In addition, USD/JPY saw weakness after Japan Q3 GDP was revised higher to +1.0% from -0.8%.
Jan crude oil (CLF16 +1.01%) this morning is up +58 cents (+1.55%) and Jan gasoline (RBF16 +0.39%) is up +0.0124 (+1.03%). Tuesday’s closes: CLF6 +0.20 (+0.53%), RBF6 -0.0070 (-0.58%). Jan crude oil and gasoline on Tuesday settled mixed. Jan crude oil fell to a 6-3/4 year low and Jan gasoline dropped to a 3-week low on global growth concerns with the weak China Nov exports report and weak U.S. JOLTS job openings report. Crude oil prices also continued to see downward pressure from last Friday’s failed OPEC meeting where OPEC actually raised its production ceiling to 31.5 million bpd. Crude oil prices saw an upward rebound on a weaker dollar and the upward revision in Japan’s Q3 GDP to +1.0% from -0.8%.
|US||0700 ET||Weekly MBA mortgage applications, previous -0.2% with purchase sub-index +7.7% and refi sub-index -6.0%.|
|1000 ET||Oct wholesale inventories expected +0.2% m/m, Sep +0.5% m/m. Oct wholesale trade sales expected +0.2% m/m, Sep +0.5% m/m.|
|1030 ET||EIA Weekly Petroleum Status Report.|
|1200 ET||USDA Dec WASDE crop production.|
|1300 ET||Treasury auctions $ 21 billion 10-year T-notes.|
|JPN||0100 ET||Japan Nov machine tool orders, Oct -22.9% y/y.|
|1850 ET||Japan Q4 BSI business conditions all-industry, Q3 9.6 q/q. Q4 BSI business conditions large manufacturing, Q3 11.0 q/q.|
|1850 ET||Japan Nov PPI expected -0.3% m/m and -3.8% y/y, Oct -0.6% m/m and -3.8% y/y.|
|GER||0200 ET||German Oct trade balance expected +21.7 billion euros, Sep +22.8 billion euros. Oct exports expected -0.6% m/m, Sep +2.6% m/m. Oct imports expected -1.0% m/m, Sep +3.8% m/m.|
|0200 ET||German Q3 labor costs, Q2 +0.9% q/q and +3.1% y/y.|
|UK||1901 ET||UK Nov RICS house price balance expected 48%, Oct 49%.|
|CHI||n/a||China Nov new yuan loans expected +735.0 billion yuan, Oct +513.6 billion yuan.|
|lululemon athletica Inc||LULU US||Bef-mkt||Q3 2016 Earnings Release||Q3 2016||0.373|
|Tesoro Corp||TSO US||9:00||Analyst and Investor Day||Y 2015|
|lululemon athletica Inc||LULU US||9:00||Q3 2016 Earnings Call||Q3 2016|
|Harman International Industries Inc||HAR US||11:00||Annual General Meeting|
|Costco Wholesale Corp||COST US||11:00||Q1 2016 Earnings Call||Q1 2016|
|Edwards Lifesciences Corp||EW US||11:00||Investor Conference – Day 2||Y 2015|
|First Solar Inc||FSLR US||16:30||Q4 2016 Guidance Call||Q4 2016|
|Allied World Assurance Co Holdings AG||AWH US||Special Meeting|