Live Index – Thu, 02 Jun 2016 Premarket
Thu Jun 02 2016
Jim Andrews (247 articles)
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Live Index – Thu, 02 Jun 2016 Premarket

PREMARKET WORLD NEWS

Jun E-mini S&Ps (ESM16 -0.11%) are down -0.07% and European stocks are up +0.30% ahead of today’s ECB interest rate decision. No change in interest rates or additional stimulus is expected, although ECB President Draghi will unveil the ECB’s latest economic and price-growth forecasts at a press conference following today’s meeting. The markets are also focused on today’s OPEC meeting in Vienna and tomorrow’s monthly U.S. payrolls data. Asian stocks settled mixed: Japan -2.32%, Hong Kong +0.47%, China +0.40%, Taiwan -0.48%, Australia -0.83%, Singapore +0.16%, South Korea +0.25%, India +0.48%. Japan’s Nikkei Stock Index dropped to a 1-week low as exporter stocks declined and led the overall market lower after USD/JPY tumbled to a 2-week low, which reduces the prospects for exporters’ earnings.

The dollar index (DXY00 -0.16%) is down -0.16%. EUR/USD (^EURUSD) is up +0.10% at a 1-week high on expectations that the ECB will refrain from additional stimulus at today’s policy meeting. USD/JPY (^USDJPY) is down -0.54% at a 2-week low after Japanese Prime Minister Abe said that a sales-tax increase will be postponed until 2019 from April 2017.

Sep T-note prices (ZNU16 +0.12%) are up +3 ticks.

In today’s OPEC meeting in Vienna, Saudi Arabia proposed that OPEC restore a production target scrapped at the cartel’s last meeting in December, although Iran opposes a production target as it wants to boost its oil production to pre-sanction levels. The odds of any cut in OPEC production are small after Iranian Oil Minister Bijan Namdar Zanganeh said “a general quota for OPEC with no country quota has no meaning.”

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly MBA mortgage applications (previous +2.3% with purchase sub-index +4.8% and refi sub-index +0.4%), (2) revised-May Markit U.S. manufacturing PMI (expected unrevised at 50.5, preliminary-May -0.3 to 50.5), (3) May ISM manufacturing index (expected -0.5 to 50.3, Apr -1.0 to 50.8), (4) Apr construction spending (expected +0.6%, Mar +0.3%), (5) Fed Beige Book, (6) May total vehicle sales (expected 17.30 million, Apr 17.32 million).

There are 4 of the Russell 1000 companies that report earnings today: Donaldson (consensus $ 0.39), Joy Global (-0.01), Cooper Cos (1.92), Broadcom (2.38).

U.S. IPO’s scheduled to price today: Sensus Healthcare (SRTSU).

Equity conferences during the remainder of this week include: Bank of America Merrill Lynch Global Technology Conference on Wed-Thu, Cowen and Company Technology, Media & Telecom Conference on Wed-Thu, RBC Capital Markets Consumer & Retail Conference on Wed-Thu, Bernstein Strategic Decisions Conference on Wed-Fri, Credit Suisse Engineering & Construction Conference on Thu, Keefe, Bruyette & Woods Asset Management Conference on Thu, American Society of Clinical Oncology (ASCO) Meeting on Fri.

PREMARKET U.S. STOCKS

Oracle (ORCL +0.15%) is down over 2% in pre-market trading after a former senior finance manager said in a whistleblower lawsuit that she was instructed to add millions of dollars in accruals to cloud-service reports.

Exxon Mobile (XOM +0.25%) was downgraded to ‘Neutral’ from ‘Buy’ at Bank of America/Merrill Lynch.

Sally Beauty Holdings (SBH +2.40%) was upgraded to ‘Market Perform’ from ‘Underperform’ at Wells Fargo Securities.

Lending Tree (TREE +0.85%) was rated a new ‘Buy’ at Compass Point Research & Trading LLC with a 12-month price target of $ 100

Semtech (SMTC +3.53%) reported Q1 adjusted EPS of 30 cents, better than consensus of 28 cents.

Analogic (ALOG -0.61%) reported Q3 non-GAAP EPS of 80 cents, below consensus of 88 cents, although Q3 revenue of $ 128 million was better than consensus of $ 127.7 million.

Guidewire Software (GWRE +3.03%) gained over 3% in after-hours trading after it reported Q3 adjusted EPS of 14 cents, higher than consensus of 6 cents.

Box (BOX +1.99%) sank over 10% in pre-market trading after it reported Q1 billings up +9% y/y to $ 75.9 million, weaker than consensus of +20% y/y growth.

Ollie’s Bargain Outlet Holdings (OLLI +4.55%) reported Q1 adjusted EPS of 29 cents, higher than consensus of 16 cents, and then raised its full-year EPS estimate to 85 cents-87 cents from an April 6 view of 83 cents-85 cents.

Weatherford International PLC (WFT -1.43%) slumped over 9% in after-hours trading after it said it plans a $ 1 billion bond offering to refinance its debt.

Fidelity & Guaranty Life (FGL -3.83%) slid over 3% in after-hours trading after China’s Anbang Insurance Group pulled its offer to buy Fidelity.

Keryx Biopharmaceuticals (KERX -0.50%) rose over 4% in after-hours trading after Baupost Group reported a 42.5% stake in the company.

Dermira (DERM +0.82%) climbed nearly 5% in after-hours trading after it said it met 3 of 4 primary endpoints in two studies that showed its DRM04 drug for excessive underarm sweating showed statistically significant improvements.

MARKET COMMENTS

June E-mini S&Ps (ESM16 -0.11%) this morning are down -1.50 points (-0.07%). Wednesday’s closes: S&P 500 +0.11%, Dow Jones +0.01%, Nasdaq -0.08%. The S&P 500 on Wednesday closed higher on the unexpected +0.5 point increase in the U.S. May ISM manufacturing index to 51.3 (stronger than expectations of -0.5 to 50.3) and the mostly upbeat Fed Beige Book that said the U.S. economy expanded at a “modest pace” across most of the country since mid-April. Stocks were undercut by the OECD’s cut its U.S. 2016 GDP estimate to +1.8% from its Feb estimate of +2.0%. Stocks were also undercut by global growth concerns after the German May Markit/BME manufacturing PMI was revised lower to 52.1 from 52.4 and the China May manufacturing PMI was unchanged at 50.1.

September 10-year T-note prices (ZNU16 +0.12%) this morning are up +3 ticks. Wednesday’s closes: TYU6 -4.50, FVU6 -4.75. Sep T-notes on Wednesday rallied to a 1-1/2 week high but fell back and closed lower. T-notes were undercut by the unexpected +0.5 point increase in the May ISM manufacturing index and by increased inflation concerns after the May ISM prices-paid sub-index rose +4.5 to a 4-3/4 year high of 63.5. T-notes were supported by the OECD’s cut in its U.S. 2016 GDP forecast to +1.8% from +2.0% and by carryover support from a rally in German bunds to a 2-week high.

The dollar index (DXY00 -0.16%) this morning is down -0.156 (-0.16%). EUR/USD (^EURUSD) is up +0.0011 (+0.10%) at a 1-week high. USD/JPY (^USDJPY) is down -0.59 (-0.54%) at a 2-week low. Wednesday’s closes: Dollar Index -0.436 (-0.45%), EUR/USD +0.0056 (+0.50%), USD/JPY -1.19 (-1.07%). The dollar index on Wednesday closed lower on the tumble in USD/JPY to a 1-1/2 week low after Japanese Prime Minister Abe said he will postpone an increase in Japan’s sales tax, which fueled speculation the BOJ will delay expanding stimulus. In addition, there was strength in EUR/USD after the OECD raised its Eurozone 2016 GDP forecast to +1.6% from +1.4%.

July WTI crude oil (CLN16 -0.24%) this morning is up +5 cents (+0.10%). July gasoline (RBN16 +0.98%) is up +0.0194 (+1.20%). Wednesday’s closes: CLN6 -0.09 (-0.18%), RBN6 +0.0019 (+0.12%). July crude oil and gasoline on Wednesday settled mixed. Crude oil prices were undercut by demand concerns after the OECD cut its U.S. 2016 GDP estimate to +1.8% from +2.0% and by expectations that OPEC members will be unable to agree on production cuts when the cartel meets on Thursday in Vienna. Crude oil prices found support on a weaker dollar and on expectations that Thursday’s weekly EIA data will show that U.S. crude oil inventories fell by -2.5 million bbl.

GLOBAL EVENT CALENDAR06/02/2016
US0730 ETMay Challenger job cuts, Apr +5.8% y/y.
0815 ETMay ADP employment change expected +174,000, Apr +156,000.
0830 ETWeekly initial unemployment claims expected +2,000 to 270,000, previous -10,000 to 268,000. Weekly continuing claims expected -13,000 to 2.150 million, previous +10,000 to 2.163 million.
0945 ETMay New York ISM, Apr +6.6 to 57.0.
1100 ETEIA Weekly Petroleum Status Report.
1100 ETTreasury 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 Jun 7-9.
1300 ETDallas Fed President Robert Kaplan (non-voter) speaks on the economy at Boston Colleges Eleventh Annual Finance Conference.
JPN0100 ETJapan May consumer confidence index expected -0.7 to 40.1, Apr 40.8.
2000 ETJapan Apr labor cash earnings expected +0.9% y/y, Mar +1.5% y/y.
UK0430 ETUK May Markit/CIPS construction PMI expected unch at 52.0.
EUR0500 ETEurozone Apr PPI expected +0.1% m/m and -4.1% y/y, Mar +0.3% m/m and -4.2% y/y.
0745 ETECB announces interest rate decision.
0830 ETECB President Mario Draghi speaks at press conference following ECB meeting.
U.S. STOCK CALENDAR06/02/2016
CompanyTickerTimeEvent DescriptionPeriodEstimate
Donaldson Co IncDCI US6/2/2016Q3 2016 Earnings ReleaseQ3 20160.391
Joy Global IncJOY US6/2/2016Q2 2016 Earnings ReleaseQ2 2016-0.006
L Brands IncLB US6/2/2016May 2016 Sales and Revenue Call2016
Align Technology IncALGN US6/2/2016Analyst MeetingY 2016
ANSYS IncANSS US6/2/2016Investor DayY 2016
Ingersoll-Rand PLCIR US6/2/2016Annual General MeetingY 2016
Donaldson Co IncDCI US6/2/2016Q3 2016 Earnings CallQ3 2016
SL Green Realty CorpSLG US6/2/2016Annual General MeetingY 2016
Gannett Co IncGCI US6/2/2016Annual General MeetingY 2016
Joy Global IncJOY US6/2/2016Q2 2016 Earnings CallQ2 2016
Patterson-UTI Energy IncPTEN US6/2/2016Annual General Meeting
Douglas Emmett IncDEI US6/2/2016Annual General MeetingY 2016
Arista Networks IncANET US6/2/2016Annual General Meeting
lululemon athletica IncLULU US6/2/2016Annual General Meeting
Gap Inc/TheGPS US6/2/2016May 2016 Sales and Revenue Release2016
Cooper Cos Inc/TheCOO US6/2/2016Q2 2016 Earnings CallQ2 2016
salesforce.com IncCRM US6/2/2016Annual General MeetingY 2016
Broadcom LtdAVGO US6/2/2016Q2 2016 Earnings CallQ2 2016
Cooper Cos Inc/TheCOO US6/2/2016Q2 2016 Earnings ReleaseQ2 20161.917
Broadcom LtdAVGO US6/2/2016Q2 2016 Earnings ReleaseQ2 20162.378
L Brands IncLB US6/2/2016May 2016 Sales and Revenue Release2016
Activision Blizzard IncATVI US6/2/2016Annual General Meeting
Williams-Sonoma IncWSM US6/2/2016Annual General Meeting
Cheniere Energy IncLNG US6/2/2016Annual General Meeting
Priceline Group Inc/ThePCLN US6/2/2016Annual General Meeting
Bluebird Bio IncBLUE US6/2/2016Annual General Meeting
Concho Resources IncCXO US6/2/2016Annual General Meeting
Platform Specialty Products CorpPAH US6/2/2016Annual General Meeting
Blue Buffalo Pet Products IncBUFF US6/2/2016Annual General Meeting

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Jim Andrews

Jim Andrews

Jim Andrews is Desk Correspondent for Global Stock, Currencies, Commodities & Bonds Market . He has been reporting about Global Markets for last 5+ years. He is based in New York