Live Index – Mon, 04 Apr 2016 Premarket
Jun E-mini S&Ps (ESM16 +0.27%) are up +0.24% at a 3-month high and European stocks are up +1.15% on positive carryover from Friday’s U.S. employment and manufacturing data that showed the economy was strengthening. Stocks also rose and Jun T-note prices climbed to a 1-month high on speculation that global central banks will continue to support growth after ECB Executive Board member Praet said that the ECB will continue to act “forcefully” if needed. Gains in European stocks were limited after Greece’s ASE Stock Index fell -1.49% when IMF Managing Director Lagarde said that the IMF is “a good distance away” from an agreement that would allow for additional loans to Greece. Asian stocks settled mixed: Japan -0.25%, Hong Kong, China and Taiwan were closed for holiday, Australia -0.08%, Singapore +0.60%, South Korea +0.28%, India +0.51%. Japan’s Nikkei Stock Index fell to a 1-month low as exporter stocks led the overall market lower as the yen rallied to a 2-week high against the dollar, which undercuts the earnings prospects of exporters.
The dollar index (DXY00 +0.16%)is up +0.17%. EUR/USD (^EURUSD) is down -0.24% after ECB Executive Board member Praet said that the ECB is “so determined” to raise inflation. USD/JPY (^USDJPY) is up +0.01% as it rebounds from a 2-week low.
Jun T-note prices (ZNM16 +0.12%) are up +4 ticks at a 1-month high.
ECB Executive Board member Praet said that the ECB is “so determined” to raise inflation and will continue to act “forcefully” if needed to counter the risk of low inflation in the Eurozone becoming entrenched.
The Eurozone Feb PPI fell -0.7% m/m and -4.2% y/y, weaker than expectations of -0.5% m/m and -4.0% y/y with the -4.2% y/y fall the biggest year-on-year decline in 6-1/4 years.
Key U.S. news today includes: (1) Mar New York ISM (Feb -1.0 to 53.6), (2) Feb factory orders (expected -1.9%, Jan +1.6% and -0.2% ex transportation), and (3) Minneapolis Fed President Neel Kashkari holds a town hall meeting on too big to fail.
There is 1 of the Russell 1000 companies that reports earnings today: Avangrid (consensus $ 2.16).
U.S. IPO’s scheduled to price today: none.
Equity conferences this week include: American College of Cardiology Scientific Meeting on Mon, Cowen & Co Retail & Luxury Day on Thu.
Tesla’s (TSLA +3.40%) rose over 4% in pre-market trading after pre-orders for its Model 3 reached more than 276,000 by Saturday morning.
Edwards Lifesciences (EW +1.94%) climbed nearly 8% in pre-market trading after studies showed that the company’s latest aortic valve has a lower risk of death or stroke than surgery.
Virgin America (VA +0.88%) surged 35% in pre-market trading after Alaska Air Group agreed to buy the airline for $ 2.6 billion.
Express Scripts Holding (ESRX +0.61%) was upgraded to ‘outperform’ from ‘Market Perform’ at Cowen.
Intel (INTC +0.31%) was downgraded to ‘Neutral’ from ‘Outperform’ at Exane BNP Paribas.
Time Inc. (TIME -0.06%) is considering a bid for Yahoo’s core Internet assets in a partnership with a private equity firm, according to Reuters.
Facebook (FB +1.72%) said it has withdrawn from the bidding for rights to live-stream NFL games next season.
Visa (V +1.45%) could double over the next four years says Barron’s.
Cheniere Energy (LNG -0.18%), Enterprise Products Partners (EPD -1.75%), and Spectra Energy Partners (SEP -2.74%) are well positioned to weather the collapse in energy prices, according to Barron’s.
Endo International (ENDP +1.88%) may rebound more than 50% over the next 2 years, according to Barron’s.
Manitowoc (MTW +0.69%) may see its stock price rise as new CEO Barry Pennypacker tries to reduce costs and improve margins, according to Barron’s.
SunEdison (SUNE -20.37%) fell sharply in after-hours trading Friday after WSJ reported that the company is in discussions for a bankruptcy filing, a report that also dragged its yieldcos lower, Terraform Global (GLBL) and Terraform Power (TERP). Separately, S&P affirmed its B- corporate credit rating on Terraform Global (GLBL) and said the outlook is stable.
June E-mini S&Ps (ESM16 +0.27%) this morning are up +5.00 points at a 3-month high. Friday’s closes: S&P 500 +0.63%, Dow Jones +0.61%, Nasdaq +0.92%. The S&P 500 on Friday closed with fairly sharp gains on Friday’s strong economic data, which included the March payroll report of +215,000 (stronger than market expectations of +205,000), the March ISM manufacturing index of +2.3 to 51.8, and the upward revision in final-March U.S. consumer sentiment index by +1.0 to 91.0. Stocks also received support from Thursday evening’s strong China PMI reports and carry-over from Tuesday’s dovish Yellen comments. Stocks were undercut by the sharp -4% drop in May crude oil prices and the sharp -3.6% decline in the Nikkei index on the poor Tankan report.
June 10-year T-note prices (ZNM16 +0.12%) this morning are up +4 ticks at a 1-month high. Friday’s closes: TYM6 -3, FVM6 -4.25. Jun 10-year T-notes on Friday closed slightly lower on the strong U.S. economic data and reduced safe-haven demand with the rally in stocks.
The dollar index (DXY00 +0.16%) this morning is up +0.159 (+0.17%). EUR/USD (^EURUSD) is down -0.0027 (-0.24%). USD/JPY (^USDJPY) is up +0.01 (+0.01%). Friday’s closes: Dollar Index +0.03 (+0.03%), EUR/USD +0.0011 (+0.10%), USD/JPY -0.88 (-0.78%). The dollar index on Friday closed slightly higher on Friday’s strong U.S. economic data and on short-covering after the sharp 3-day sell-off seen on Tuesday’s dovish Yellen comments.
May WTI crude oil (CLK16 +0.08%) is down -8 cents (-0.22%). May gasoline (RBK16 +1.11%) is up +0.0112 (+0.80%). Friday’s closes: CLK6 -1.55 (-4.04%), RBK6 -0.0451 (-3.12%). May crude and gasoline on Friday closed sharply lower after Saudi Arabia’s deputy crown prince said Saudi Arabia will not agree to freeze production at the upcoming April 17 meeting in Doha if Iran does not agree as well. Iran has already said repeatedly that it will not freeze production until it reaches pre-sanction levels of 1 million bpd higher than current levels.
|US||0945 ET||Mar New York ISM expected +0.5 to 54.1, Feb -1.0 to 53.6.|
|1000 ET||Feb factory orders expected -1.8% and -0.5% ex-transportation, Jan +1.6% and -0.2% ex transportation.|
|1100 ET||USDA weekly grain export inspections.|
|1900 ET||Minneapolis Fed President Neel Kashkari holds a town hall meeting on too big to fail.|
|EUR||0430 ET||Eurozone Apr Sentix investor confidence, Mar 5.5.|
|0500 ET||Eurozone Feb PPI, Jan -1.0% m/m and -2.9% y/y.|
|UK||0430 ET||UK Mar Markit/CIPS construction PMI, Feb 54.2.|
|JPN||2000 ET||Japan Feb labor cash earnings, Jan +0.4% y/y. Feb real cash earnings, Jan +0.4% y/y.|
|Tobira Therapeutics Inc||TBRA US||12:30||Analyst and Investor Day||Y 2016|
|World Wrestling Entertainment Inc||WWE US||15:00||Business Update Call|
|HP Inc||HPQ US||17:00||Annual General Meeting||Y 2016|
|Avangrid Inc||AGR US||Y 2015 Earnings Release||Y 2015||2.158|