Live Index – Thu, 03 Mar 2016 Premarket
March E-mini S&Ps (ESH16 unch) are down -0.03% as they fell back from a new 1-3/4 month high posted in overnight trade, and European stocks are down -0.27%. The markets are looking ahead to today’s weekly U.S. jobless claims and the Feb ISM non-manufacturing index for direction. European shares were pulled lower after Evonik Industries AG, Germany’s second-largest chemical maker, plunged 12% after it lowered guidance on 2016 profits. Asian stocks settled mostly higher: Japan +1.28%, Hong Kong -0.31%, China +0.35%, Taiwan +0.79%, Australia +1.19%, Singapore +2.22%, South Korea +0.61%, India +1.50%. Short-covering has fueled gains in Japanese stocks this week as Japan’s Nikkei Stock Index climbed to a 3-week high after data showed short-selling of Japanese stocks on the Nikkei Stock Index fell to 36% of total turnover on Wednesday, the lowest level this year.
The dollar index (DXY00 -0.09%) is down -0.01%. EUR/USD (^EURUSD) is up +0.09%. USD/JPY (^USDJPY) is up +0.47%.
Jun T-note prices (ZNM16 -0.10%) are down -2 ticks.
The Eurozone Feb Markit composite PMI was revised upward to 53.0 from the originally reported 52.7, still the slowest pace of expansion in 13 months.
Key U.S. news today includes: (1) Feb Challenger job cuts (Jan +41.6% y/y), (2) weekly initial unemployment claims (expected -2,000 to 270,000, previous +10,000 to 272,000) and continuing claims (expected -3,000 to 2.250 million, previous -19,000 to 2.253 million), (3) revised Q4 non-farm productivity (expected unrevised at -3.0%) and revised Q4 unit labor costs (expected +4.4%, previous +4.5%), (4) revised Feb Markit services PMI (expected +0.2 to 50.0, preliminary-Feb -3.4 to 49.8), (5) Feb ISM non-manufacturing PMI (expected -0.4 to 53.1, Jan -2.3 to 53.5), (6) Jan factory orders (expected +2.1%, Dec -2.9% and -0.8% ex-transportation), (7) Dallas Fed President Rob Kaplan’s speech at the University of Texas in Austin, and (8) USDA weekly Export Sales.
There are 4 of the S&P 500 companies that report earnings today: HP (consensus $ 0.40), Kroger (0.54), H&R Block (-0.24), Broadcom (2.29).
U.S. IPO’s scheduled to price today: none.
Equity conferences this week include: Morgan Stanley Technology Media & Technology Conference on Mon-Thu, Bank of America Merrill Lynch Global Agriculture and Chemicals Conference on Wed-Thu, Bank of America Refining Conference on Thu, Citi Asset Management, Broker Dealer & Exchanges Investor Conference on Thu, Gabelli & Company Waste & Environmental Services Conference on Thu, Simmons Energy Conference on Thu-Fri.
Intel (INTC +0.56%) climbed nearly 2% in pre-market trading after it was upgraded to ‘Outperform’ from ‘Neutral’ at Robert Baird with a 12-month price target of $ 38.
Costco (COST +1.51%) fell over 3% in pre-market trading after it reported Q2 EPS of $ 1.24, less than consensus of $ 1,28.
Herbalife (HLF +0.37%) declined 6% in pre-market trading after it said it had errrors in data calculations that reported new U.S. active members up +71% when it should have been +30.7% and Q4 worldwide active new members ex China should be up +3.2%, not the originally reported +16.7%.
American Eagle Outfitters (AEO +0.32%) gained over 1% in after-hours trading after it raised guidance on Q1 EPS to 17 cents-19 cents, higher than consensus of 15 cents.
Sina Corp. (SINA +1.25%) dropped nearly 5% in after-hours trading after it lowered guidance on fiscal 2016 adjusted revenue to $ 850 million-$ 950 million, below consensus of $ 985.8 million.
Analogic (ALOG +1.04%) reported Q2 adjusted EPS of $ 1.18, higher than consensus of $ 1.04, but Q2 revenue of $ 127.9 million was below consensus of $ 132.7 million.
Weibo (WB -1.29%) rose 3% in after-hours trading after it reported Q4 adjusted EPS of 32 cents, more than double consensus of 13 cents.
Banc of California (BANC -0.94%) fell over 4% in after-hours trading after it announced a 3 million-share secondary offering.
Semtech (SMTC -3.30%) jumped over 12% in after-hours trading after it reported Q4 adjusted EPS of 17 cents, higher than consensus of 16 cents, and said it sees fiscal 2017 Q1 adjusted EPS of 26 cents-30 cents, above consensus of 24 cents.
TPG Specialty Lending (TSLX -0.12%) slid over 3% in after-hours trading after it announced a 5 million-share secondary offering.
SunEdison (SUNE +19.33%) tumbled over 9% in after-hours trading after it said it suspended the payment of quarterly dividends on its preferred stock.
Pure Storage (PSTG +4.87%) climbed over 3% in after-hours trading after it raised guidance on fiscal 2016 revenue to $ 685 million-$ 725 million, above consensus of $ 662.5 million.
Habit Restaurants (HABT +2.93%) dropped over 7% in after-hours trading after it lowered guidance in fiscal 2016 revenue to $ 286 million-$ 290 million, below consensus of $ 291.9 million.
Mar E-mini S&Ps (ESH16 unch) this morning are little changed, down -0.50 of a point (-0.03%). Wednesday’s closes: S&P 500 +0.41%, Dow Jones +0.20%, Nasdaq +0.02%. The S&P 500 climbed to a 1-3/4 month high on Wednesday and closed higher on positive carryover from a +4.26% rally in China’s Shanghai Composite, the +214,000 increase in U.S. Feb ADP employment (stronger than expectations of +190,000), and strength in energy producers after crude oil rallied to a 1-3/4 month high.
Jun 10-year T-notes (ZNM16 -0.10%) this morning are down -2 ticks. Wednesday’s closes: TYM6 -8.00, FVM6 -4.25. Jun T-notes on Wednesday fell to a 1-month low and closed lower on increased inflation expectations with the 10-year T-note breakeven inflation rate climbing to a 1-1/2 month high and on the larger-than-expected +214,000 increase in the Feb ADP employment report, which bolstered the case for the Fed to keep raising interest rates.
The dollar index (DXY00 -0.09%) this morning is down -0.007 (-0.01%). EUR/USD (^EURUSD) is up +0.0010 (+0.09%). USD/JPY (^USDJPY) is up +0.53 (+0.47%). Wednesday’s closes: Dollar Index -0.138 (-0.14%), EUR/USD unch, USD/JPY -0.53 (-0.46%). The dollar index on Wednesday fell back from a 1-month high and closed lower on weakness in USD/JPY after an early slide in stocks boosted the safe-haven demand for the yen. The dollar was also undercut by the Fed Beige Book’s comment that a stronger dollar and a “weakening global outlook” hurt U.S. exports, which may delay a Fed rate hike.
Apr WTI crude (CLJ16 +0.17%) this morning is up +5 cents (+0.14%) and Apr gasoline (RBJ16 -0.39%) is down -0.0071 (-0.54%). Wednesday’s closes: CLJ6 +0.26 (+0.76%), RBJ6 +0.0050 (+0.38%). Apr crude oil and gasoline on Wednesday settled higher with Apr crude at a 1-3/4 month high. Crude oil prices were boosted by a weaker dollar and the -0.3% decline in U.S. crude production in the week ended Feb 26 to 9.077 million bpd, a 1-1/4 year low. Crude oil prices were undercut by the +10.37 million bbl surge in U.S. crude inventories to a record 517.98 million bbl.
|US||0730 ET||Feb Challenger job cuts, Jan +41.6% y/y.|
|0830 ET||Weekly initial unemployment claims expected -2,000 to 270,000, previous +10,000 to 272,000. Weekly continuing claims expected -3,000 to 2.250 million, previous -19,000 to 2.253 million.|
|0830 ET||Revised Q4 non-farm productivity expected -3.0%, previous -3.0%. Revised Q4 unit labor costs expected +4.3%, previous +4.5%.|
|0830 ET||USDA weekly Export Sales.|
|0945 ET||Revised Feb Markit services PMI expected +0.2 to 50.0, preliminary-Feb -3.4 to 49.8. Revised Feb Markit composite PMI, preliminary -3.1 to 50.1.|
|1000 ET||Feb ISM non-manufacturing PMI expected -0.4 to 53.1, Jan -2.3 to 53.5.|
|1000 ET||Jan factory orders expected +2.1%, Dec -2.9% and -0.8% ex-transportation.|
|1045 ET||Dallas Fed President Rob Kaplan delivers a speech at the University of Texas in Austin.|
|1100 ET||Treasury announces amount of 3-year T-notes (previous $ 24 billion), 10-year T-notes (previous $ 23 billion) and 30-year T-bonds (previous $ 15 billion) to be auctioned Mar 8-10.|
|UK||0200 ET||UK Feb nationwide house prices expected +0.4% m/m and +4.9% y/y, Jan +0.3% m/m and +4.4% y/y.|
|0330 ET||UK Feb Halifax house prices expected unch m/m and +10.4% 3-month y/y, Jan +1.7% m/m and +9.7% 3-months y/y.|
|0430 ET||UK Feb Markit/CIPS serviced PMI expected -0.5 to 55.1, Jan 55.6.|
|GER||0355 ET||Revised German Feb Markit services PMI, preliminary +0.1 to 55.1.|
|EUR||0400 ET||Revised Eurozone Feb composite PMI, preliminary -0.9 to 52.7.|
|0500 ET||Eurozone Jan retail sales expected +0.1% m/m and +1.3% y/y, Dec +0.3% m/m and +1.4% y/y.|
|JPN||2030 ET||Japan Jan labor cash earnings expected +0.4% y/y, Dec unch y/y. Jan real cash earnings, Dec -0.1% y/y.|
|Joy Global Inc||JOY US||Bef-mkt||Q1 2016 Earnings Release||Q1 2016||-0.123|
|Kroger Co/The||KR US||Bef-mkt||Q4 2016 Earnings Release||Q4 2016||0.543|
|Communications Sales & Leasing Inc||CSAL US||Bef-mkt||Q4 2015 Earnings Release||Q4 2015||0.637|
|TopBuild Corp||BLD US||7:00||Q4 2015 Earnings Release||Q4 2015||0.53|
|L Brands Inc||LB US||7:30||February 2016 Sales and Revenue Call||2016|
|Hubbell Inc||HUBB US||9:00||Investor Conference||Y 2016|
|TopBuild Corp||BLD US||9:00||Q4 2015 Earnings Call||Q4 2015|
|Kroger Co/The||KR US||10:00||Q4 2016 Earnings Call||Q4 2016|
|Acadia Healthcare Co Inc||ACHC US||10:00||Extraordinary Shareholders Meeting|
|Acadia Healthcare Co Inc||ACHC US||10:00||Special Meeting|
|Walt Disney Co/The||DIS US||11:00||Annual General Meeting||Y 2016|
|Joy Global Inc||JOY US||11:00||Q1 2016 Earnings Call||Q1 2016|
|Costco Wholesale Corp||COST US||11:00||Q2 2016 Earnings Call||Q2 2016|
|Cable One Inc||CABO US||11:00||Q4 2015 Earnings Call||Q4 2015|
|Communications Sales & Leasing Inc||CSAL US||11:00||Q4 2015 Earnings Call||Q4 2015|
|AmerisourceBergen Corp||ABC US||14:00||Annual General Meeting||Y 2016|
|Cooper Cos Inc/The||COO US||16:15||Q1 2016 Earnings Release||Q1 2016||1.583|
|Gap Inc/The||GPS US||16:15||February 2016 Sales and Revenue Release||2016|
|H&R Block Inc||HRB US||16:30||Q3 2016 Earnings Call||Q3 2016|
|Cooper Cos Inc/The||COO US||17:00||Q1 2016 Earnings Call||Q1 2016|
|Hewlett Packard Enterprise Co||HPE US||17:00||Q1 2016 Earnings Call||Q1 2016|
|Broadcom Ltd||AVGO US||17:00||Q1 2016 Earnings Call||Q1 2016|
|H&R Block Inc||HRB US||Aft-mkt||Q3 2016 Earnings Release||Q3 2016||-0.238|
|CONSOL Energy Inc||CNX US||Aft-mkt||CONSOL Energy Inc. Replaces Solera Holdings Inc. in S&P MidCap 400|
|CONSOL Energy Inc||CNX US||Aft-mkt||American Water Works Replaces CONSOL Energy in S&P 500|
|Solera Holdings Inc||SLH US||Aft-mkt||CONSOL Energy Inc. Replaces Solera Holdings Inc. in S&P MidCap 400|
|American Water Works Co Inc||AWK US||Aft-mkt||American Water Works Replaces CONSOL Energy in S&P 500|
|Hewlett Packard Enterprise Co||HPE US||Aft-mkt||Q1 2016 Earnings Release||Q1 2016||0.395|
|Broadcom Ltd||AVGO US||Aft-mkt||Q1 2016 Earnings Release||Q1 2016||2.293|
|Cypress Semiconductor Corp||CY US||17:30||Analyst Day||Y 2016|
|L Brands Inc||LB US||February 2016 Sales and Revenue Release||2016|
|Rite Aid Corp||RAD US||February 2016 Sales and Revenue Release||2016|
|Marvell Technology Group Ltd||MRVL US||Q4 2016 Earnings Release||Q4 2016||0.098|