Live Index – Fri, 15 Apr 2016 Premarket
Jun E-mini S&Ps are down -0.17% as the market digests Thursday’s gains that saw the S&P 500 climb to a 4-1/4 month high. A -1.98% fall in crude oil prices is fueling losses in energy producing stocks, while European stocks are down -0.32%, led by losses in auto-related shares, with Volkswagen AG down -1.1% after data from the European Automobile Manufacturers’ Association showed Volkswagen’s share of the European market tumbled to a 5-year low. Losses in European stocks were limited as Greek bank stocks rallied after the ECB said EFSF bonds of Greek banks are eligible for QE purchases. Also, generally better-than-expected economic data out of China kept stock losses to a minimum. Asian stocks settled mixed: Japan -0.37%, Hong Kong -0.10%, China -0.14%, Taiwan +0.38%, Australia +0.76%, Singapore +0.34%, South Korea -0.14%, India closed for holiday. China Q1 GDP expanded at the slowest pace in 6 years, although China Mar industrial production and Mar retail sales were both stronger-than-expected.
The dollar index is down -0.08%. EUR/USD is up +0.12%. USD/JPY is down 0.39%.
Jun T-note prices are up +3.5 ticks.
China Mar industrial production rose +5.8% year-to-date y/y, stronger than expectations of +5.5% year-to-date y/y.
China Mar retail sales rose +10.3% year-to-date y/y, stronger than expectations of +10.2% year-to-date y/y.
China Q1 GDP rose 6.7% y/y, right on expectations and the slowest pace of growth in 6 years.
Key U.S. news today includes: (1) Apr Empire manufacturing survey general business conditions index (expected +1.38 to 2.00, Mar +17.26 to 0.62), (2) Mar industrial production (expected -0.1%, Feb -0.5%), (3) prelim-April University of Michigan U.S. consumer sentiment index (expected +1.0 to 92.0, Mar -0.7 to 91.0), and (4) Chicago Fed President Charles Evans’ speech on the economy and monetary policy at the J.P. Morgan Investor Seminar in Washington, D.C.
There are 3 of the S&P 500 companies that report earnings today: Citigroup (consensus $ 1.03), Charles Schwab (0.29), Regions Financial (0.19).
U.S. IPO’s scheduled to price today: none.
Equity conferences during the remainder of this week include: Goldman Sachs Cars Conference on Fri.
Briggs & Stratton (BGG +0.55%) was downgraded to ‘Neutral’ from ‘Outperform’ at Robert Baird.
Foot Locker (FL -0.89%) was downgraded to ‘Market Perform’ from ‘Outperform’ by Cowen.
Relypsa (RLYP -1.08%) plunged 14% in pre-market trading after Benzinga reported that Centerview Partners is no longer advising the company on a possible sale.
General Motors (GM -0.19%) rose nearly 7% in pre-market trading after the European Automobile Manufacturers’ Association said Volkswagen AG’s market share in Europe fell to the lowest in 5 years after the emission scandal that has plagued Volkswagen prompted car buyers to switch to other automakers.
Polycom (PLCM +3.54%) climbed nearly 3% in pre-market trading after Mitel Networks said it agreed to but he company for $ 1.96 billion.
Reuters reported that Valeant Pharmaceuticals International (VRX -2.24%) is working with investment banks to review options amid interest from buyout firms and other companies “in a number of its businesses.”
Performance Sports Group Ltd. (PSG -0.78%) gained over 1% in after-hours trading after it raised guidance on Q4 adjusted EPS to 18 cents-20 cents from a previous view of 15 cents-17 cents.
Hewlett Packard Enterprise (HPE -1.37%) rose almost 1% in after-hours trading after it was rated a new ‘Outperform by Oppenheimer.
Customers Bancorp (CUBI +3.55%) reported Q1 EPS of 57 cents, above consensus of 56 cents, and said it sees full-year operating EPS of $ 2.40-$ 2.50 from bank operations, higher than estimates of $ 2.37.
Ensco Plc (ESV -4.94%) slid over 6% in pre-market trading after it started a 50 million share offering of Class A stock.
Vivint Solar (VSLR +0.67%) jumped 9% in after-hours trading after it said it sees installations up +12% in 2016 and that it will install 260 MW of rooftop power systems this year.
Casey’s General Stores (CASY -0.48%) reported March same-store-sales for grocery and other rose +6% y/y and March same-store-sales for prepared food and fountain increased +7.5% y/y.
Shopify (SHOP +3.89%) gained almost 1% in after-hours trading after it was rated a new ‘Buy’ at Paradigm Capital with a 12-month price target of $ 35.
Cherokee (CHKE -0.89%) rallied over 7% in after-hours trading after it reported Q4 adjusted EPS of 19 cents, higher than consensus of 13 cents.
Ixia (XXIA -0.49%) slumped 14% in after-hours trading after it lowered guidance on Q1 revenue to $ 108 million-$ 111 million from a February 24 estimate of $ 121 million-$ 126 million, below consensus of $ 123.3 million.
June E-mini S&Ps this morning are down -3.50 points (-0.17%). Thursday’s closes: S&P 500 +0.02%, Dow Jones +0.10%, Nasdaq unch. The S&P 500 on Thursday climbed to a 4-1/4 month high and settled slightly higher on the unexpected -13,000 decline in U.S. weekly initial unemployment claims to 253,000, thus matching the low from Mar 4 as the fewest in 42-1/2 years. Stocks were also boosted by a lack of price pressures after U.S. Mar CPI rose +0.1% m/m and +0.9% y/y, weaker than expectations of +0.2% m/m and +1.0% y/y. Stocks were undercut by weakness in energy producers as crude oil fell -0.62%.
June 10-year T-note prices this morning are up +3.5 ticks. Jun T-notes on Thursday fell to a 1-1/2 week low and closed lower: Thursday’s closes: TYM6 -8.00, FVM6 -3.50. Jun T-notes on Thursday fell to a 1-1/2 week low and closed lower on the unexpected decline in U.S. weekly jobless claims to a 42-1/2 year low of 253,000 and on reduced safe-haven demand after the S&P 500 rallied to a 4-1/4 month high. T-notes gained support from the U.S. Mar core CPI report of +0.1% y/y and +2.2% y/y, weaker than expectations of +0.2% m/m and +2.3% y/y.
The dollar index this morning is down -0.079 (-0.08%). EUR/USD is up +0.0014 (+0.12%). USD/JPY is down -0.43 (-0.39%). Thursday’s closes: Dollar Index +0.158 (+0.17%), EUR/USD -0.0006 (-0.05%), USD/JPY +0.06 (+0.05%). The dollar index on Thursday climbed to a 2-week high and settled higher on the unexpected drop in U.S. weekly jobless claims to a 42-1/2 year low and on weakness in EUR/USD which fell to a 2-week low after the top German economic institutes cut their German 2016 growth estimate to 1.6% from 1.8%, citing a slump in global demand.
May WTI crude oil is down -82 cents (-1.98%). May gasoline is down -0.0366 (-2.43%). Thursday’s closes: CLK6 -0.26 (-0.62%), RBK6 -0.0239 (-1.56%). May crude and gasoline on Thursday closed lower on the rally in the dollar index to a 2-week high and on the ongoing crude oil supply glut after Wednesday’s weekly EIA data showed U.S. crude oil inventories rose +6.6 million bbl to a record 536.5 million bbl. Crude oil gained some support from the rally in the S&P 500 to a 4-1/4 month high, which bolsters confidence in the economic outlook and energy demand.
|US||0830 ET||Apr Empire manufacturing survey general business conditions expected +1.38 to 2.00, Mar +17.26 to 0.62.|
|0915 ET||Mar industrial production expected -0.1%, Feb -0.5%. Mar manufacturing production expected +0.1%, Feb +0.2%. Mar capacity utilization expected -0.1 to 75.3%. Feb -0.4 to 75.4%.|
|1000 ET||Prelim-April University of Michigan U.S. consumer sentiment expected +1.0 to 92.0, Mar -0.7 to 91.0.|
|1230 ET||Chicago Fed President Charles Evans speaks on the economy and monetary policy at the J.P. Morgan Investor Seminar in Washington, D.C.|
|JPN||0030 ET||Revised Japan Feb industrial production, preliminary -6.2% m/m and -1.5% y/y. Feb capacity utilization, Jan +2.6% m/m.|
|EUR||0200 ET||Eurozone Mar new car registrations, Feb +14.3% y/y.|
|UK||0430 ET||UK Feb construction output expected unch m/m and +0.7% y/y, Jan -0.2% m/m and -0.8% y/y.|
|Charles Schwab Corp/The||SCHW US||Bef-mkt||Q1 2016 Earnings Release||Q1 2016||0.292|
|First Horizon National Corp||FHN US||Bef-mkt||Q1 2016 Earnings Release||Q1 2016||0.198|
|Regions Financial Corp||RF US||Bef-mkt||Q1 2016 Earnings Release||Q1 2016||0.186|
|Citigroup Inc||C US||8:00||Q1 2016 Earnings Release||Q1 2016||1.032|
|Jarden Corp||JAH US||8:00||Extraordinary Shareholders Meeting|
|First Horizon National Corp||FHN US||9:30||Q1 2016 Earnings Call||Q1 2016|
|Citigroup Inc||C US||11:00||Q1 2016 Earnings Call||Q1 2016|
|Regions Financial Corp||RF US||11:00||Q1 2016 Earnings Call||Q1 2016|
|Tenet Healthcare Corp||THC US||Aft-mkt||Ulta Salon, Cosmetics & Fragrance Replaces Tenet Healthcare in S&P 500|
|Tenet Healthcare Corp||THC US||Aft-mkt||Tenet Healthcare Replaces Jarden Corp. in S&P MidCap 400|
|Ulta Salon Cosmetics & Fragrance Inc||ULTA US||Aft-mkt||Ulta Salon, Cosmetics & Fragrance Replaces Tenet Healthcare in S&P 500|
|American Express Co||AXP US||Credit-card Charge-offs and Delinquencies|
|JPMorgan Chase & Co||JPM US||Credit-card Charge-offs and Delinquencies|
|Equifax Inc||EFX US||Investor Meeting – Sydney||Y 2016|
|Bank of America Corp||BAC US||Credit-card Charge-offs and Delinquencies|
|Newell Rubbermaid Inc||NWL US||Annual General Meeting – M&A Vote|
|Citigroup Inc||C US||Credit-card Charge-offs and Delinquencies|
|Jarden Corp||JAH US||Special Meeting – M&A Vote|
|Capital One Financial Corp||COF US||Credit-card Charge-offs and Delinquencies|
|Alliance Data Systems Corp||ADS US||Credit-card Charge-offs and Delinquencies|
|Discover Financial Services||DFS US||Credit-card Charge-offs and Delinquencies|
|Synchrony Financial||SYF US||Credit-card Charge-offs and Delinquencies|