Tue May 24 2016
Live Index (1448 articles)

Live Index – Tue, 24 May 2016 Premarket

PREMARKET WORLD NEWS

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.

U.S. STOCK PREVIEW

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.

 

 

 

 

 

 

PREMARKET U.S. STOCKS

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.

MARKET COMMENTS

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.

GLOBAL EVENT CALENDAR05/24/2016
US1000 ETApr new home sales expected +2.2% to 522,000, Mar -1.5% to 511,000.
1000 ETMay Richmond Fed manufacturing index expected -6 to 8, Apr -8 to 14.
1300 ETTreasury auctions $ 26 billion of 2-year T-notes.
GER0200 ETRevised German Q1 GDP, preliminary +0.7% q/q and +1.3% y/y (nsa).
0200 ETGerman Q1 private consumption expected +0.6% q/q, Q4 +0.3% q/q. Q1 government spending expected +0.8% q/q, Q4 +1.0% q/q.
0500 ETGerman May ZEW survey expectations of economic growth expected +0.8 to 12.0, Apr 11.2. Mat ZEW survey current situation expected +1.3 to 49.0, Apr 47.7.
UK0430 ETUK Apr public sector net borrowing expected +5.8 billion pounds, Mar +4.2 billion pounds.
0600 ETUK May CBI retailing reported sales expected +21 to 8, Apr -13.
CHI2145 ETChina May Westpac-MNI consumer sentiment, Apr -0.3 to 117.8.
U.S. STOCK CALENDAR05/24/2016
CompanyTickerTimeEvent DescriptionPeriodEstimate
AutoZone IncAZO USBef-mktQ3 2016 Earnings ReleaseQ3 201610.919
Best Buy Co IncBBY US7:00Q1 2017 Earnings ReleaseQ1 20170.347
Best Buy Co IncBBY US8:00Q1 2017 Earnings CallQ1 2017
Coca-Cola Enterprises IncCCE US8:00Extraordinary Shareholders Meeting – Restructuring VoteY 2016
Total System Services IncTSS US9:00Analyst DayY 2016
AutoZone IncAZO US10:00Q3 2016 Earnings CallQ3 2016
Baker Hughes IncBHI US10:00Annual General Meeting
Eli Lilly & CoLLY US10:00R&D Day – Morning SessionY 2016
Wells Fargo & CoWFC US10:30Investor DayY 2016
Urban Outfitters IncURBN US10:30Annual General Meeting
Allstate Corp/TheALL US12:00Annual General MeetingY 2016
Eli Lilly & CoLLY US13:00R&D Day – Afternoon SessionY 2016
Citrix Systems IncCTXS US15:30Analyst MeetingY 2016
Intuit IncINTU US16:30Q3 2016 Earnings CallQ3 2016
Hewlett Packard Enterprise CoHPE US17:00Q2 2016 Earnings CallQ2 2016
Intuit IncINTU USAft-mktQ3 2016 Earnings ReleaseQ3 20163.209
Hewlett Packard Enterprise CoHPE USAft-mktQ2 2016 Earnings ReleaseQ2 20160.416
Merck & Co IncMRK USAnnual General Meeting
Omnicom Group IncOMC USAnnual General Meeting
Extra Space Storage IncEXR USAnnual General Meeting
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