Live Index – Fri, 03 Jun 2016 Premarket
Jun E-mini S&Ps (ESM16 +0.02%) are little changed, down -0.02%, ahead of the monthly U.S. payroll data that may give clues about the strength of the economy. Chicago Fed President Evans said that two rates hike this year are probably “appropriate,” although the Fed may be better off waiting until after June because of the upcoming Brexit referendum. European stocks are up +0.48%, led by strength in mining stocks, as the price of copper (HGN16 +2.03%) jumped +2.13% on signs of tighter supplies in China after weekly Shanghai copper inventories fell -10,217 MT to a 4-1/4 month low. Gains in European stocks were limited, though, after Eurozone Apr retail sales were weaker than expected. The weak retail sales fueled a rally in German bunds which climbed to a 1-1/2 month high. Asian stocks settled mostly higher: Japan +0.48%, Hong Kong +0.42%, China +0.46%, Taiwan +0.37%, Australia +0.76%, Singapore +0.51%, South Korea +0.09%, India unchanged. China’s Shanghai Composite climbed to a 4-week high on speculation MSCI Inc. will include yuan-denominated shares in its global indexes.
The dollar index (DXY00 +0.01%) is up +0.05%. EUR/USD (^EURUSD) is down -0.08%. USD/JPY (^USDJPY) is up +0.01%.
Sep T-note prices (ZNU16 +0.12%) are up +3,5 ticks at a 2-week high on carryover support from a rally in German bunds to a 1-1/2 month high.
Chicago Fed President Evans said that U.S. data has been more positive since the March FOMC meeting and that “two rate hikes are probably appropriate this year.” He added that the U.K. EU referendum makes policy more difficult and the Fed may be able to judge the outlook better after June.
Eurozone Apr retail sales were unch m/m and +1.4% y/y, weaker than expectations of +0.4% m/m and +2.1% y/y.
Key U.S. news today includes: (1) Chicago Fed President Charles Evans (non-voter) speaks on the economy and monetary policy at the Global Interdependence Center’s Central Banking Series event in London, (2) May non-farm payrolls (expected +160,000, Apr +160,000) and May unemployment rate (expected -0.1 to 4.9%, Apr unch at 5.0%), (3) Apr U.S. trade deficit (expected -$ 41.0 billion, Mar -$ 40.4 billion), (4) final-May Markit services PMI (expected +0.2 to 51.4, preliminary-May -1.6 to 51.2), (5) Apr factory orders (expected +1.9%, Mar +1.5% and +1.0% ex transportation), (6) May ISM non-manufacturing index (expected -0.4 to 55.3, Apr +1.2 to 55.7), and (7) USDA weekly Export Sales.
None of the Russell 1000 companies report earnings today.
U.S. IPO’s scheduled to price today: none.
Equity conferences today include: Bernstein Strategic Decisions Conference on Wed-Fri, American Society of Clinical Oncology (ASCO) Meeting on Fri.
Monsanto (MON -0.56%) climbed nearly 1% in pre-market trading after people familiar with the matter said Bayer AG has secured about $ 63 billion in financing from five banks for its proposed acquistion of the company.
Rambus (RMBS -0.08%) was rated a new ‘Buy’ at Wunderlich with a 12-month price target of $ 15.
WebMD Health Corp. (WBMD -0.30%) was downgraded to ‘Market Perform’ from ‘Outperform’ at William Blai & Co.
Cooper Cos. (COO +1.08%) gained almost 5% in after-hours trading after it reported Q2 adjusted EPS of $ 2.05, better than consensus of $ 1.92, and then rasied guidance on fiscal 2016 adjusted EPS to $ 8.20-$ $ 8.50 from a prior view of $ 8.00-$ 8.30.
Five Below (FIVE +0.40%) rose +0.5% in after-hours trading after it reported Q1 adjusted EPS of 12 cents, higher than consensus of 10 cents.
Zumiez (ZUMZ +2.03%) slumped 9% in after-hours trading after it said May comparable same store sales were down -7.6% y/y, a bigger decline than estimates of -6.4% y/y, and then forecast a Q2 EPS loss of -9 cents to -13 cents, much weaker than consensus of a 5 cent gain.
The Gap (GPS +2.57%) climbed almost 5% in after-hours trading after it reported May comparable same store sales were down -6% y/y, better than estimates of -8% y/y.
Broadcom Ltd. (AVGO +0.09%) rose over 6% in after-hours trading after it reported Q1 adjusted EPS continuing operations of $ 2.53, higher than consensus of $ 2.38.
China Biologic Products (CBPO -2.50%) fell over 2% in after-hours trading after it announced a secondary offering of 2.8 million shares of common stock.
Yelp Inc. (YELP +1.26%) was rated a new ‘Buy’ at Maxim Group with a 12-month price target of $ 41.
Ambarella (AMBA +2.26%) jumped nearly 10% in pre-market trading after it reported Q1 adjusted EPS of 34 cents, better than consensus of 28 cents.
Bazaarvoice (BV +2.10%) rallied 9% in after-hours trading after it reported a Q4 adjusted loss of -1 cent, a smaller loss than consensus of -4 cents.
June E-mini S&Ps (ESM16 +0.02%) this morning are little changed, down -0.50 of a point (-0.02%). Thursday’s closes: S&P 500 +0.28%, Dow Jones +0.27%, Nasdaq +0.25%. The S&P 500 on Thursday climbed to a 1-1/2 month high and closed higher on the unexpected -1,000 decline in U.S. weekly initial unemployment claims to 267,000 (vs expectations of +2,000 to 270,000) and the ECB’s hike in its Eurozone 2016 GDP estimate to 1.6% from 1.4%. Stocks were undercut by some long-liquidation pressure ahead of Friday’s U.S. payroll report.
September 10-year T-note prices (ZNU16 +0.12%) this morning are up +3.5 ticks to a fresh 2-week high. Thursday’s closes: TYU6 +10.50, FVU6 +5.25. Sep T-notes on Thursday climbed to a 2-week high and closed higher on carryover support from a rally in German bunds to a 3-week high after ECB President Draghi said that risks to the Eurozone are still skewed to the downside.
The dollar index (DXY00 +0.01%) this morning is up +0.048 (+0.05%). EUR/USD (^EURUSD) is down -0.0009 (-0.08%). USD/JPY (^USDJPY) is up +0.01 (+0.01%). Thursday’s closes: Dollar Index +0.109 (+0.11%), EUR/USD -0.0037 (-0.33%), USD/JPY -0.67 (-0.61%). The dollar index on Thursday closed higher on the as-expected increase in U.S. May ADP employment report and the small decline in U.S. weekly jobless claims. In addition, EUR/USD saw weakness after ECB President Draghi said that risks to the Eurozone are still skewed to the downside. Meanwhile, USD/JPY fell to a 2-week low on negative carryover from Wednesday’s comments from Japanese Prime Minister Abe who said he will postpone an increase in Japan’s sales tax, which fueled speculation the BOJ will delay expanding stimulus.
July WTI crude oil (CLN16 -0.20%) this morning is unchanged. July gasoline (RBN16 -0.69%) is down -0.0079 (-0.48%). Thursday’s closes: CLN6 +0.16 (+0.33%), RBN6 +0.0193 (+1.19%). July crude oil and gasoline on Thursday closed higher on the decline in U.S. oil production for a twelfth week as output dropped -0.4% to a 1-1/2 year low of 8.735 million bpd. Gasoline prices were boosted by the -1.489 million bbl decline in EIA gasoline inventories (vs expectations of -350,000 bbl). Crude oil prices were undercut by the stronger dollar and by OPEC’s inability to reach a production ceiling agreement at its meeting in Vienna.
|US||0345 ET||Chicago Fed President Charles Evans (non-voter) speaks on the economy and monetary policy at the Global Interdependence Centers Central Banking Series event in London.|
|0830 ET||May non-farm payrolls expected +160,000, Apr +160,000. May private payrolls expected +150,000, Apr +171,000. May manufacturing payrolls expected -2,000, Apr +4,000. May unemployment rate expected -0.1 to 4.9%, Apr unch at 5.0%.|
|0830 ET||May avg hourly earnings expected +0.2% m/m and +2.5% y/y, Apr +0.3% m/m and +2.5% y/y. May avg weekly hours all employees expected unch at 34.5 hours, Apr +0.1 to 34.5 hours.|
|0830 ET||Apr trade deficit expected -$ 41.0 billion, Mar -$ 40.4 billion.|
|0830 ET||USDA weekly Export Sales.|
|0945 ET||Revised May Markit services PMI expected +0.2 to 51.4, preliminary-May -1.6 to 51.2. Revised May Markit composite PMI.|
|1000 ET||Apr factory orders expected +1.9%, Mar +1.5% and +1.0% ex transportation.|
|1000 ET||May ISM non-manufacturing index expected -0.4 to 55.3, Apr +1.2 to 55.7.|
|1230 ET||Fed Governor Lael Brainard gives a speech on the economic outlook and monetary policy at the Council on Foreign Relations.|
|GER||0355 ET||Revised German May Markit services PMI, preliminary +0.7 to 55.3.|
|EUR||0400 ET||Revised Eurozone May Markit composite PMI, preliminary -0.1 to 52.9.|
|0500 ET||Eurozone Apr retail sales expected +0.4% m/m and +2.1% y/y, Mar -0.5% m/m and +2.1% y/y.|
|UK||0430 ET||UK May Markit/CIPS services PMI expected +0.2 to 52.5, Apr 52.3.|
|Royal Gold Inc||RGLD US||8:30||Investor Day||Y 2016|
|Wal-Mart Stores Inc||WMT US||9:00||Annual General Meeting||Y 2016|
|AbbVie Inc||ABBV US||10:00||R&D Day||Y 2016|
|Ionis Pharmaceuticals Inc||IONS US||17:10||Annual General Meeting||Y 2016|
|Las Vegas Sands Corp||LVS US||Annual General Meeting|