Live Index – Fri, 26 Feb 2016 Premarket
March E-mini S&Ps (ESH16 +0.50%) are up +0.50% at a 1-1/2 month high and European stocks are up +1.79% at a 3-week high on optimism central banks will act to support economic growth. Speaking before the G-20 meeting in Shanghai, PBOC Governor Zhou Xiaochuan said that China still has room to ease monetary policy and that there is no reason for yuan depreciation. The PBOC also published a statement that said current monetary policy as “prudent with a slight easing bias.” Crude oil is up +0.88% at a 3-week high and is lifting energy producing stocks while a +2.08% gain in copper has boosted mining stocks and commodity producers. Weak Eurozone inflation has also bolstered the prospects for the ECB to expand QE after French Feb CPI unexpectedly fell -0.1% y/y, weaker than expectations of +0.1% y/y, and Spain Feb CPI dropped -0.9% y/y, weaker than expectations of -0.6% y/y. Asian stocks settled mostly higher: Japan +0.30%, Hong Kong +2.52%, China +0.95%, Taiwan +0.54%, Australia -0.02%, Singapore +1.77%, South Korea -0.06%, India +0.78%. China’s Shanghai Composite erased early losses and recovered from a 1-1/2 week low on the prospects for additional easing from the PBOC and Japan’s Nikkei Stock Index climbed to a 2-week high.
The dollar index (DXY00 +0.09%) is up +0.11%. EUR/USD (^EURUSD) is up +0.08%. USD/JPY (^USDJPY) is down -0.19%.
Mar T-note prices (ZNH16 -0.29%) are down -10.5 ticks.
ECB Governing Council member Visco said that the global economy warrants a “monetary response” and the ECB has to deliver price stability and we shall not allow inflation expectations to deanchor.”
The Eurozone Feb economic confidence fell -1.3 to 103.8, weaker than expectations of -0.7 to 104.3 and the lowest in 8 months.
PBOC Governor Zhou Xiaochuan said that “China still has some monetary policy space and multiple policy instruments to address possible downside risks.”
Key U.S. news today includes: (1) revised Q4 GDP (expected +0.4% vs +0.7%), (2) Jan personal spending (expected +0.3%, Dec unch) and Jan personal income (expected +0.4%, Dec +0.3%), (3) Jan PCE deflator (expected unch m/m and +1.1% y/y, Dec -0.1% m/m and +0.6% y/y) and Jan core PCE deflator (expected +0.2% m/m and +1.5% y/y, Dec unch m/m and +1.4% y/y), (4) final-Feb University of Michigan U.S. consumer sentiment index (expected +0.3 to 91.0, preliminary -1.3 to 90.7), (5) Fed Governor Jerome Powell’s participation on a panel discussion on “Language after Liftoff: Fed Communication Away from the Zero Bound” at a monetary policy forum in New York, (6) Fed Governor Lael Brainard’s participation on a panel on international monetary policy synchronization in New York, and (7) the Fri-Sat G-20 finance ministers and central bankers meeting in Shanghai.
There are 3 of the S&P 500 companies that report earnings today: Sempra Energy (consensus $ 1.32), CenterPoint Energy (0.23), American Tower (1.18).
U.S. IPO’s scheduled to price today: none.
Equity conferences today include: none.
Freeport-McMoRan (FCX -1.11%) and Alcoa (AA +1.26%) both ar up at least 1.5% in pre-market trading as copper prices moved higher.
J.C. Penney (JCP +8.57%) surged 10% in pre-market trading after it reported Q4 adjusted EPS of 39 cents, much higher than consensus of 21 cents.
Best Buy (BBY +2.45%) ws downgraded to ‘Neutral’ from ‘Overweight’ at Piper Jaffray.
Live Nation (LYV -1.05%) reported a Q4 adjusted EPS loss of -39 cents, a wider loss than consensus of -32 cents, but reported Q4 revenue of $ 1.74 billion, higher than consensus of $ 1.66 billion.
Intuit (INTU +1.25%) gained 1% in after-hours trading after it reported Q2 adjusted EPS of 25 cents, higher than consensus of 19 cents.
Air Lease (AL +3.72%) jumped 15% in after-hours trading after it reported Q4 adjusted EPS of $ 1.21, well above consensus of 88 cents.
Kraft Heinz (KHC +2.70%) climbed 3% in after-hours trading after it reported Q4 adjusted EPS of 62 cents, better than consensus of 58 cents.
The Gap (GPS +1.17%) said it sees fiscal 2016 adjusted EPS of $ 2.20-$ 2,25, below consensus of $ 2.44.
Baidu (BIDU -2.78%) rose over 3% in after-hours trading after it reported Q4 revenue of $ 2.89 billion, above consensus of $ 2.84 billion.
Integra LifeSciences Holdings (IART +0.86%) reported Q4 adjusted EPS of 87 cents, above consensus of 86 cents.
Kindred Healthcare (KND -0.77%) reported Q4 core continuing operations EPS of 33 cents, higher than consensus of 24 cents, but said it sees fiscal 2016 revenue of $ 7.25 billion, below consensus of $ 7.38 billion.
Biomarin Pharmaceutical (BMRN +0.09%) reported Q4 adjusted EPS revenue of $ 227.9 million, above consensus of $ 224.4 million, but said it sees fiscal year revenue between $ 1.05 billion to $ 1.10 billion, below consensus of $ 1.15 billion.
Newfield Exploration (NFX +4.23%) fell over 5% in after-hours trading after it announced a 29 million-share secondary offering.
Private Bancorp of America (PBAM -6.34%) will replace Sirona Dental Systems (SIRO +4.99%) in the S&P MidCap 400 after the close of trading Monday, February 29.
Mar E-mini S&Ps (ESH16 +0.50%) this morning are up +9.75 points (+0.50%) at a fresh 1-1/2 month high. Thursday’s closes: S&P 500 +1.13%, Dow Jones +1.29%, Nasdaq +0.96%. The S&P 500 on Thursday rallied to a 1-1/2 month high and closed higher on the +3.9% increase in Jan non-defense capital goods orders ex-aircraft, a proxy for capital spending, which was stronger than expectations of +1.0% and the largest increase in 1-1/2 years, which provided some signs of life for the U.S. manufacturing sector. Stocks were also boosted by San Francisco Fed President Williams’ dovish comment that the U.S. economy needs a “gentle shove forward” from central bank policy.
Mar 10-year T-notes (ZNH16 -0.29%) this morning are down -10.5 ticks. Thursday’s closes: TYH6 +14.50, FVH6 +9.00. Mar T-notes on Thursday closed higher on the dovish comment by San Francisco Fed President Williams that that the U.S. economy needs a “gentle shove forward” from Fed policy and that he wants to “take things slowly” on raising interest rates. T-notes also received a boost from a rally in European government bonds on speculation the ECB may expand stimulus after the Eurozone Jan CPI was revised lower to +0.3% y/y from +0.4% y/y.
The dollar index (DXY00 +0.09%) this morning is up +0.107 (+0.11%). EUR/USD (^EURUSD) is up +0.0009 (+0.08%). USD/JPY (^USDJPY) is down -0.22 (-0.19%). Thursday’s closes: Dollar Index -0.171 (-0.18%), EUR/USD +0.0005 (+0.05%), USD/JPY +0.82 (+0.73%). The dollar index on Thursday closed lower on San Francisco Fed President Williams’ comment that the U.S. economy needs a “gentle shove forward” from central bank policy and still faces headwinds from abroad.
Apr WTI crude (CLJ16 +0.97%) this morning is up +29 cents (+0.88%) and Apr gasoline (RBJ16 +0.34%) is up +0.0034 (+0.26%), both at 3-week highs. Thursday’s closes: CLJ6 +0.92 (+2.86%), RBJ6 +0.0364 (+2.85%). Apr crude oil and gasoline on Thursday closed higher on the weaker dollar and strong refinery demand for gasoline after the crack spread, the profit margin from producing gasoline from crude, rose to a 6-month high. Crude oil prices were undercut by Saudi oil minister Ali al-Naimi’s comment that Saudi Arabia can “co-exist with $ 20 a barrel oil” if the process of rebalancing markets pushes prices that low.
|US||0830 ET||Revised Q4 GDP expected +0.4% (q/q annualized), previous +0.7% (q/q annualized). Q4 personal consumption, previous +2.2%, Q4 GDP price index, previous +0.8%. Q4 core PCE deflator expected +1.2%, previous +1.2%.|
|1000 ET||Jan personal spending expected +0.3%, Dec unch. Jan personal income expected +0.4%, Dec +0.3%.|
|1000 ET||Jan PCE deflator expected unch m/m and +1.1% y/y, Dec -0.1% m/m and +0.6% y/y. Jan core PCE deflator expected +0.2% m/m and +1.5% y/y, Dec unch m/m and +1.4% y/y.|
|1000 ET||Final U.S. Feb University of Michigan consumer sentiment expected +0.3 to 91.0, preliminary -1.3 to 90.7.|
|1015 ET||Fed Governor Jerome Powell takes part in a panel discussion on Language after Liftoff: Fed Communication Away from the Zero Bound at a monetary policy forum in New York.|
|1330 ET||Fed Governor Lael Brainard takes part in a panel on international monetary policy synchronization in New York.|
|n/a||G-20 finance ministers and central bankers meet in Shanghai Feb 26-27.|
|EUR||0500 ET||Eurozone Feb economic confidence expected -0.7 to 104.3, Jan 105.0. Feb business climate indicator expected 0.02 to 0.27, Jan 0.29.|
|0500 ET||Revised Eurozone Feb consumer confidence, preliminary -2.5 to -8.8.|
|GER||0800 ET||German Feb CPI (EU harmonized) expected +0.6% m/m and unch y/y, Jan -1.0% m/m and +0.4% y/y.|
|CenterPoint Energy Inc||CNP US||Bef-mkt||Q4 2015 Earnings Release||Q4 2015||0.229|
|American Tower Corp||AMT US||7:00||Q4 2015 Earnings Release||Q4 2015||1.177|
|Eaton Corp PLC||ETN US||8:30||Analyst Meeting||Y 2016|
|American Tower Corp||AMT US||8:30||Q4 2015 Earnings Call||Q4 2015|
|Universal Health Services Inc||UHS US||9:00||Q4 2015 Earnings Call||Q4 2015|
|Range Resources Corp||RRC US||9:00||Q4 2015 Earnings Call||Q4 2015|
|Sempra Energy||SRE US||9:00||Q4 2015 Earnings Release||Q4 2015||1.321|
|EOG Resources Inc||EOG US||10:00||Q4 2015 Earnings Call||Q4 2015|
|Southwestern Energy Co||SWN US||10:00||Q4 2015 Earnings Call||Q4 2015|
|CenterPoint Energy Inc||CNP US||11:00||Q4 2015 Earnings Call||Q4 2015|
|Mohawk Industries Inc||MHK US||11:00||Q4 2015 Earnings Call||Q4 2015|
|Sempra Energy||SRE US||12:00||Q4 2015 Earnings Call||Q4 2015|
|Apple Inc||AAPL US||Annual General Meeting|