Live Index – Tue, 24 May 2016 Premarket

Jun E-mini S&Ps (ESM16 +0.34%) are up +0.29% and European stocks are up +1.35% on reduced economic concerns after German Q1 capital investment rose at the fastest pace in 2-years. European stocks also received a boost after BNP Paribas raised its Eurozone 2016 GDP forecast to 1.5% from 1.3%. A slide in EUR/USD to a 1-3/4 month low also gave European exporter stocks a lift as well as the weaker euro boost exporters’ earnings prospects. On the negative side, German investor sentiment unexpectedly fell, according to the May ZEW survey. Asian stocks settled mostly lower: Japan -0.94%, Hong Kong +0.11%, China -0.77%, Taiwan -0.52%, Australia -0.44%, Singapore -0.60%, South Korea -0.92%, India +0.30%. Japanese stocks were undercut by yen strength that weighed on exporters, while Asian stocks as a whole fell back on Fed rate hike concerns after San Francisco Fed President Williams on Monday said that two to three rate hikes this year are still “about right.”

The dollar index (DXY00 +0.19%) is up +0.17% at a 1-3/4 month high after recent hawkish Fed commentary boosts speculation of a Fed rate hike next month. EUR/USD (^EURUSD) is down -0.33% at a 1-3/4 month low. USD/JPY (^USDJPY) is up +0.36%.

Jun T-note prices (ZNM16 -0.06%) are down -1 tick.

German Q1 capital investment rose +1.8% q/q, stronger than expectations of +1.4% q/q and the biggest increase in 2 years.

The German May ZEW survey expectations of economic growth unexpectedly fell -5.8 to 6.4, weaker than expectations of +0.8 to 12.0.

Key U.S. news today includes: (1) Apr new home sales (expected +2.2% to 522,000, Mar -1.5% to 511,000), (2) May Richmond Fed manufacturing index (expected -6 to 8, Apr -8 to 14), and (3) the Treasury’s auction of $ 26 billion of 2-year T-notes.

There are 4 of the S&P 500 companies that report earnings today: Best Buy (consensus $ 0.35), Intuit (3.21), AutoZone (10.92), HP (0.42).

U.S. IPO’s scheduled to price today: Clearside Biomedical (CLSD).

Equity conferences this week include: UBS Global Health Care Conference on Mon-Wed, J.P. Morgan Global Technology, Media and Telecom Conference on Mon-Wed, Hart Energy DUG Permian Basin Conference on Mon-Tue, UBS Global Oil & Gas Conference on Tue-Wed, Wolfe Research Global Transportation & Industrials Conference on Tue-Wed.

Home Depot (HD -0.33%) was rated a new ‘Buy’ at Topeka Capital Markets with a 12-month price target of $ 158.

Best Buy (BBY +2.04%) fell over 4% in pre-market trading after it forecast Q2 adjusted EPS of 38 cents-42 cents, below consensus of 50 cents.

Huntington Ingalls Industries (HII -0.26%) was downgraded to ‘Sell’ from ‘Hold’ at Stifel with a 12-month price target of $ 135.

Twitter (TWTR -0.14%) was downgraded to ‘Sell’ from ‘Neutral’ at MoffetNathanson LLC.

General Mills (GIS +0.40%) was downgraded to ‘Sell’ from ‘Neutral’ at Goldman Sachs.

Pier 1 Imports (PIR -2.84%) was rated a new ‘Buy’ at Topeka Capital Markets with a 12-month price target of $ 12.

Polycom (PLCM +0.18%) jumped over 10% in after-hours trading after it said it received a revised offer from Sponsor 1 and will engage them in talks.

Williams-Sonoma (WSM +0.10%) was rated a new ‘Buy’ at Topeka Capital Markets with a 12-month price target of $ 62.

Nordson (NDSN +0.58%) climbed almost 6% in after-hours trading after it reported Q2 EPS of $ 1.19, better than consensus of 92 cents, and said it sees Q3 EPS of $ 1.25-$ 1.37, higher than consensus of $ 1.23.

Parsley Energy (PE +0.24%) dropped nearly 2% in after-hours trading after it said it will buy the mineral rights of 30,000 acres in Texas for $ 280.5 million in cash and will finance the acquisition by offering 8 million shares of class A common stock.

Wright Medical Group NV (WMGI +0.73%) fell over 2% in after-hours trading after it started a 6.2 million share secondary offering of ordinary shares.

Square (SQ +0.75%) gained over 1% in after-hours trading after it was upgraded to ‘Buy’ rom ‘Neutral’ at BTIG.

Booz Allen Hamilton Holdings (BAH -1.59%) dropped over 2% in after-hours trading after it reported a secondary offering by affiliate Carlyle Group of 13 million shares of class A common stock.

Seaspan (SSW -3.34%) slid nearly 7% in after-hours trading after it announced a 5-million share secondary offering of class A shares.

Aeglea BioTherapeutics (AGLE -2.01%) surged almost 15% in after-hours trading after the U.S. FDA granted fast track designation to Aeglea’s AEB1102 to treat excess arginne secondary to a urea cycle disorder called Arginase I deficiency.

June E-mini S&Ps (ESM16 +0.34%) this morning are up +6.00 points (+0.29%). Monday’s closes: S&P 500 -0.21%, Dow Jones -0.05%, Nasdaq -0.18%. The S&P 500 on Monday closed lower on the unexpected -0.3 decline in the U.S. May Markit manufacturing PMI to a 6-1/2 year low of 50.5 (weaker than expectations of +0.2 to 51.0) and interest rate concerns after Fed President Williams said that two or three rate increases this year and three to four in 2017 are still “about right” for the Fed. Stocks received underlying support from a rally in technology stocks after the Economic Daily news reported that Apple asked suppliers to prepare production of a new version of its smartphones.

June 10-year T-note prices (ZNM16 -0.06%) this morning are down -1 ticks. Monday’s closes: TYM6 +1.50, FVM6 unch. Jun T-notes on Monday closed little changed. T-notes found support from increased safe-haven demand with the sell-off in stocks and on reduced inflation expectations after the 10-year T-note breakeven inflation rate fell to a 1-month low. T-notes were undercut by negative carry-over from a slide in German bunds on reduced safe-haven demand after Greek lawmakers approved additional austerity measures to receive more bailout funds. T-notes were also undercut by hawkish comments from Fed President Williams who said that two or three rate increases this year and three to four in 2017 are still “about right” for the Fed.

The dollar index (DXY00 +0.19%) this morning is up +0.162 (+0.17%) at a 1-3/4 month high. EUR/USD (^EURUSD) is down -0.0037 (-0.33%) at a 1-3/4 month low. USD/JPY (^USDJPY) is up +0.39 (+0.36%). Monday’s closes: Dollar Index -0.103 (-0.11%), EUR/USD -0.0004 (-0.04%), USD/JPY -0.91 (-0.83%). The dollar index on Monday closed lower on the unexpected decline in the U.S. May Markit manufacturing PMI and on weakness in USD/JPY after G-7 finance ministers at their Fri-Sat meeting did not condemn yen strength.

July WTI crude oil (CLN16 -0.15%) is down -21 cents (-0.44%). July gasoline (RBN16 +0.29%) is down -0.0030 (-0.18%). Monday’s closes: CLN6 -0.33 (-0.68%), RBN6 +0.0076 (+0.46%). July crude and gasoline on Monday settled mixed. Crude oil prices were undercut by signs that cooler weather is helping to contain wildfires near Canada’s oil-sands areas and by the comment from the managing director of Iran’s National Iranian Oil Co that Iran has no plan to join any freeze in crude output and that its crude exports could surpass 2.2 million bpd by midsummer as it ramps up production to pre-sanction levels. Gasoline received a boost from concern about shortages on the U.S. West coast ahead of the Memorial Day holiday after Shell’s Martinez refinery, with a capacity of +156,400 bpd, was forced to shut down for unplanned repairs.