Live Index – Thu, 10 Dec 2015 Premarket
December E-mini S&Ps (ESZ15 +0.24%) are up +0.29% on speculation the U.S. economy is strong enough to handle a Fed interest rate increase next week and European stocks are down -0.21% at a 1-1/2 month low as weakness in oil prices drags down energy producers. As expected, the BOE maintained its benchmark interest rate at 0.50% and kept its asset purchase target at 375 billion pounds following today’s policy meeting. Asian stocks settled mostly lower: Japan -1.32%, Hong Kong -0.45%, China -0.49%, Taiwan -0.16%, Australia -0.84%, Singapore -0.44%, South Korea +0.50%, India +0.86%. Asian stocks fell back on the heels of Wednesday’s losses in U.S. stocks. Japan’s Nikkei Stock Index dropped to a 1-month low as exporters retreated after the yen climbed to a 1-month high against the dollar and dampened the earnings prospects of exporters.
The dollar index (DXY00 +0.43%) is up +0.39%. EUR/USD (^EURUSD) is down -0.67% on dovish comments from ECB Governing Council members Liikanen and Jazbec who both said the ECB will do everything within its mandate to fulfill its inflation target. USD/JPY (^USDJPY) is down -0.01%.
Mar T-note prices (ZNH16 -0.02%) are down -2.5 ticks.
ECB Governing Council member Liikanen said the ECB has readiness to use more measures if needed and we “can go beyond Mar 2017 if necessary or at least until we have achieved our price stability targets.”
ECB Governing Council member Jazbec said the ECB will “do everything” to fulfill its mandate on inflation.
Japan Nov PPI fell -0.1% m/m and -3.6% y/y, a slower pace of decline than expectations of -0.3% m/m and -3.8% y/y.
Key U.S. news today includes: (1) weekly initial unemployment claims (expected unch at 269,000, previous +9,000 to 269,000) and continuing claims (expected -6,000 to 2.155 million, previous +6,000 to 2.161 million), (2) Nov import price index (expected -0.8% m/m and -9.6% y/y, Oct -0.5% m/m and -10.5% y/y), (3) the Treasury’s auction of $ 13 billion of 30-year T-bonds, (4) Nov monthly budget statement (expected -$ 68.0 billion, Oct -$ 136.532 billion).
There are 2 of the Russell 1000 companies that report earnings today: Adobe Systems (consensus $ 0.60), Nordson (1.07).
U.S. IPO’s scheduled to price today: none.
Equity conferences during the remainder of this week include: 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.
Perrigo (PRGO -0.15%) was upgraded to a ‘Buy’ at Argus Research with a price target of $ 170.
First Solar (FSLR -0.37%) was dowmgraded to ‘Hold’ from ‘Buy’ at Needham & Co.
Chevron (CVX +1.34%) said it will cut its 2016 spending plans by 24% to $ 26.6 billion due to the slump in energy markets.
FMC Technologies (FTI +2.34%) fell over 1% in pre-market trading after Technip SA said it is not in merger talks with the company. FMC Technologies had climbed almost 4% in after-hours trading after people familiar with the matter said Technip SA is in talks to merge with FMC Technologies.
Boston Scientific (BSX -1.33%) said it was voluntarily recalling its Charlot Guiding Sheaths that are used for peripheral vascular procedures due to risk of shaft separation.
NeuStar (NSR -1.98%) rallied over 6% in after-hours trading after it raised guidance on fiscal 2016 adjusted EPS to $ 4.79-$ 5.15, well above consensus of $ 4.06.
Athenahealth (ATHN -0.48%) fell over 3% in after-hours trading after it lowered guidance on fiscal 2016 revenue to $ 1.09 billion-$ 1.12 billion, below consensus of $ 1.13 billion.
Express (EXPR +0.23%) rose over 6% in after-hours trading after it announced a new $ 100 million share repurchase program.
Men’s Warehouse (MW -5.74%) slumped over 15% in after-hours trading after it reported Q3 adjusted EPS of 50 cents, right on consensus, but warned that it may miss the lower end of its yearly forecast if the trend of lower sales at its Jos. A Bank stores continues. Jos A. Bank comparable sales were down -35.1% in Q4 through the first week of December y/y.
Ollie’s Bargain Outlet (OLLI +0.12%) rallied over 8% in after-hours trading after it reported Q3 adjusted EPS of 11 cents, better than consensus of 8 cents, and then raised guidance on 2015 fiscal adjusted EPS to 66 cents, from a previous estimate of 62 cents-63 cents.
American Semiconductor (AMSC -2.78%) jumped over 10% in after-hours trading after it raised guidance on Q3 revenue to $ 22 million-$ 24 million, above a prior estimate of $ 19 million-$ 22 million.
Dec E-mini S&Ps (ESZ15 +0.24%) this morning are up +6.00 points (+0.29%). Wednesday’s closes: S&P 500 -0.77%, Dow Jones -0.43%, Nasdaq -1.55%. The S&P 500 on Wednesday dropped to a 3-week low and closed lower on weakness in energy producers after crude oil erased an early rally and moved lower and on a slide in technology stocks, led by a 2% drop in Apple. Stocks were also undercut by reduced expectations for additional ECB easing measures after ECB Governing Council member Nowotny said the markets had formed unrealistic expectations of increased ECB stimulus.
Mar 10-year T-notes (ZNH16 -0.02%) this morning are down -2.5 ticks. Wednesday’s closes: TYH6 +11.00, FVH6 +8.50. Mar T-notes on Wednesday closed higher on weakness in stocks, which boosted the safe-haven demand for T-notes, and reduced inflation expectations after the 10-year T-note breakeven inflation rate fell to a 3-week low.
The dollar index (DXY00 +0.43%) this morning is up +0.378 (+0.39%). EUR/USD (^EURUSD) is down -0.0074 (-0.67%). USD/JPY (^USDJPY) is down -0.01 (-0.01%). Wednesday’s closes: Dollar Index -1.129 (-1.15%), EUR/USD +0.0133 (+1.22%), USD/JPY -1.49 (-1.21%). The dollar index on Wednesday fell to a 1-month low and closed lower on strength in EUR/USD which rallied to a 1-month high after ECB Governing Council member Nowotny said the markets had formed unrealistic expectations of increased ECB stimulus. In addition, USD/JPY fell to a 1-month low on reduced expectations for additional BOJ stimulus after Tuesday’s data showed Japan Q3 GDP was revised higher than expected to +1.0% (q/q annualized) versus expectations of +0.2%.
Jan crude oil (CLF16 +0.08%) this morning is unchanged and Jan gasoline (RBF16 +4.44%) is up +0.0514 (+4.17%). Wednesday’s closes: CLF6 -0.30 (-0.80%), RBF6 +0.0352 (+2.92%). Jan crude oil and gasoline on Wednesday settled mixed. Crude oil prices were undercut by the +423,000 bbl increase in crude supplies to a 6-1/4 month high at Cushing and the +4.998 million bbl increase in EIA distillate stockpiles, more than expectations of +2.25 million bbl. Crude oil prices received a boost from the fall in the dollar index to a 1-month low, the unexpected -3.57 million bbl decline in EIA crude inventories (vs expectations for a +1.3 million bbl increase) and the +786,000 bbl increase in EIA gasoline supplies, less than expectations of +1.75 million.
|US||0830 ET||Weekly initial unemployment claims expected unch at 269,000, previous +9,000 to 269,000. Weekly continuing claims expected -6,000 to 2.155 million, previous +6,000 to 2.161 million.|
|0830 ET||Nov import price index expected -0.8% m/m and -9.6% y/y, Oct -0.5% m/m and -10.5% y/y.|
|0830 ET||USDA weekly Export Sales.|
|1100 ET||Treasury announces amount of 5-year TIPS to be auctioned Dec 17.|
|1300 ET||Treasury auctions $ 13 billion 30-year T-bonds.|
|1400 ET||Nov monthly budget statement expected -$ 68.0 billion, Oct -$ 136.532 billion.|
|UK||0700 ET||BOE announces interest rate decision and asset purchase target, expected no change to the 0.50% benchmark rate or to the 375 billion pound asset purchase target.|
|Alnylam Pharmaceuticals Inc||ALNY US||8:00||R&D Day||Y 2015|
|Comcast Corp||CMCSA US||8:30||Extraordinary Shareholders Meeting||Y 2015|
|athenahealth Inc||ATHN US||8:30||Investor Meeting||Y 2015|
|Scotts Miracle-Gro Co/The||SMG US||9:00||Analyst & Investor Day||Y 2015|
|Yum! Brands Inc||YUM US||9:45||Investor & Analyst Meeting||Y 2015|
|ConocoPhillips||COP US||10:00||Business Update Call|
|Prudential Financial Inc||PRU US||11:00||Q4 2016 Guidance Call||Q4 2016|
|Alexion Pharmaceuticals Inc||ALXN US||12:00||Investor Day||Y 2015|
|American Tower Corp||AMT US||12:00||Investor Day||Y 2015|
|Kimco Realty Corp||KIM US||13:00||Investor Day||Y 2015|
|Southwest Airlines Co||LUV US||13:00||Analyst Meeting||Y 2015|
|Nordson Corp||NDSN US||16:30||Q4 2015 Earnings Release||Q4 2015||1.072|
|United Technologies Corp||UTX US||17:00||Investor and Analyst Meeting||Y 2015|
|Adobe Systems Inc||ADBE US||17:00||Q4 2015 Earnings Call||Q4 2015|
|Adobe Systems Inc||ADBE US||Aft-mkt||Q4 2015 Earnings Release||Q4 2015||0.6|
|JetBlue Airways Corp||JBLU US||November 2015 Sales and Revenue Release – Traffic Results||2015|
|Chimera Investment Corp||CIM US||Annual General Meeting||Y 2015|