Live Index – Fri, 10 Jun 2016 Premarket
Sep E-mini S&Ps (ESU16 -0.52%) are down -0.58% and European stocks are down -2.11% at a 2-week low as global stock and commodity markets decline and government bond markets rally ahead of several potentially market-moving events. Chinese economic data on industrial production and retail sales is expected on Sunday and will provide further clues as to the health of China’s economy, the world’s second-biggest. The 2-day FOMC meeting begins Tuesday and markets will look to the post-FOMC meeting statement as to when the Fed might raise interest rates. Finally, market angst is growing ahead of the Jun 23 British ‘Brexit’ referendum and how it may affect financial markets. Global bond markets are the beneficiary of all this uncertainty as investors pile into the safety of government debt. Japan’s 10-year bond yield fell to a record low -0.155% and Germany’s 10-year bund yield dropped to a record low 0.020%. Asian stocks settled lower: Japan -0.40%, Hong Kong -1.20%, China and Taiwan closed for holiday, Australia -0.92%, Singapore -0.73%, South Korea -0.49%, India -0.48%.
The dollar index (DXY00 +0.27%) is up +0.26%. EUR/USD (^EURUSD) is down -0.15%. USD/JPY (^USDJPY) is down -0.33%.
Sep T-note prices (ZNU16 +0.15%) are up +7.5 ticks at a fresh contract high on the heels of a rally in global bond markets.
ECB Council member Jazbec signaled that he does not favor additional ECB stimulus measures when he said that the ECB “has pledged enough” stimulus to return Eurozone inflation to its goal.
Former ECB President Trichet warned that a British yes vote on the June 23 Brexit referendum would be a “catastrophe” for the UK. Trichet’s comments add to the growing list of warnings, including from the BOE and IMF, that a Brexit could trigger a UK recession. A report published today said European equities could lose about a quarter of their value in the immediate aftermath of a yes vote for the UK to leave the EU.
Key U.S. news today includes: (1) preliminary-Jun University of Michigan U.S. consumer sentiment (expected -0.7 to 94.0, May +5.7 to 94.7), (2) May monthly budget statement (expected -$ 56.0 billion, Apr +$ 106.452 billion), and (3) USDA Jun WASDE crop production.
None of the Russell 1000 companies report earnings today.
U.S. IPO’s scheduled to price today: none.
Equity conferences today include: none.
Corning (GLW +0.24%) was downgraded to ‘Sell’ from ‘Hold’ at Drexel Hamilton LLC.
Amazon.com (AMZN +0.14%) was rated a new ‘Outperform’ at William Blair & Co.
Mobileye (MBLY -2.27%) gained over 1% in after-hours trading after it was rated a new ‘Overweight’ at Piper Jaffray with a price target of $ 50.
Delphi Automotive PLC (DLPH -0.16%) rose +0.3% in after-hours trading after it was rated a new ‘Overweight’ at Piper Jaffray with a price target of $ 82.
Cherokee (CHKE +1.62%) fell over 3% in after-hours trading after it reported Q1 EPS of 29 cents, well below consensus of 39 cents.
GigPeak (GIG +8.71%) dropped over 4% in after-hours trading after it started a secondary offering of 1.8 million shares of stock.
H&R Block (HRB +2.52%) climbed nearly 5% in after-hours trading after it reported Q4 revenue of $ 2.30 billion, above consensus of $ 2.28 billion, and boosted its dividend to 22 cents a share from 20 cents a share.
Urban Outfitters (URBN -1.34%) slipped over 6% in after-hours trading after it said that comparable retail segment net sales are “mid single-digit negative” thus far during fiscal Q1.
Mattress Firm (MFRM -2.24%) tumbled 13% in after-hours trading after it reported a Q1 adjusted loss/share of -10 cents excluding amortization, a bigger loss than consensus of -4 cents, and then lowered guidance on full-year adjusted EPS to $ 2.25-%4.235 from a March 21 view of $ 2.50-$ 2.60.
Wendy’s (WEN +0.68%) fell -0.3% in after-hours trading after the company said malware was found and disabled at some 50 of its franchise-operated restaurants and that payment cards used legitimately at Wendy’s may have been used fraudulently elsewhere.
Merck & Co will acquire Afferent Pharmaceuticals for $ 500 million.
Great Ajax Corp, (AJX +0.65%) fell over 3% in after-hours trading after it announced a public offering of common stock.
Organovo Holdings (ONVO -4.67%) jumped over 11% in after-hours trading after it reported a Q4 loss of -9 cents/share, a smaller loss than consensus of -11 cents.
September E-mini S&Ps (ESU16 -0.52%) this morning are down -12.25 points (-0.58%). Thursday’s closes: S&P 500 -0.17%, Dow Jones -0.11%, Nasdaq -0.18%. The S&P 500 on Thursday closed lower on weakness in commodity prices, led by a -1.1% plunge in copper to a 4-month low, that caused a sell-off in mining and energy stocks. In addition, a slide in biotech stocks dragged the health care sector lower. Stocks received some support from the -4,000 decline in U.S. weekly jobless claims to a 6-week low of 264,000, better than expectations of +3,000 to 270,000.
September 10-year T-note prices (ZNU16 +0.15%) this morning are up +7.5 ticks at a new contract high. Thursday’s closes: TYU6 +6.00, FVU6 +3.25. Sep T-notes on Thursday rallied to a contract high and closed higher on carryover support from a rally in UK 10-year gilts and German 10-year bunds to record highs. T-notes were also boosted by safe-haven demand with the sell-off in stocks.
The dollar index (DXY00 +0.27%) this morning is up +0.244 (+0.26%). EUR/USD (^EURUSD) is down -0.0017 (-0.15%). USD/JPY (^USDJPY) is down -0.35 (-0.33%). Thursday’s closes: Dollar Index +0.363 (+0.39%), EUR/USD -0.0079 (-0.69%), USD/JPY +0.11 (+0.10%). The dollar index on Thursday closed higher on the unexpected decline in U.S. weekly jobless claims and the unexpected decline in German Apr imports, a sign of economic weakness that is negative for EUR/USD.
July WTI crude oil (CLN16 -1.46%) this morning is down -59 cents (-1.17%). July gasoline (RBN16 -0.43%) is down -0.0030 (-0.19%). Thursday’s closes: CLN6 -0.77 (-1.50%), RBN6 -0.0047 (-0.29%). July crude oil and gasoline on Thursday closed lower on a stronger dollar that fueled long liquidation pressure in crude oil prices after the sharp rally seen over the past week.
|Friday, June 10|
|US||1000 ET||Preliminary-Jun University of Michigan U.S. consumer sentiment expected -0.7 to 94.0, May +5.7 to 94.7.|
|1200 ET||USDA Jun WASDE crop production.|
|1400 ET||May monthly budget statement expected -$ 56.0 billion, Apr +$ 106.452 billion.|
|JPN||0030 ET||Japan Apr tertiary industry index expected +0.6% m/m, Mar -0.7% m/m.|
|GER||0200 ET||Revised German May CPI (EU harmonized), preliminary-May +0.4% m/m and unch y/y.|
|0200 ET||German May wholesale price index, Apr +0.3% m/m and -2.7% y/y.|
|EUR||0815 ET||ECB Vice President Vitor Constancio speaks at a Bundesbank conference on Monetary, Financial and Fiscal Stability.|
|UK||0430 ET||UK Apr construction output expected +1.4% m/m and -4.8% y/y, Mar -3.6% m/m and -4.5% y/y.|
|Sunday, June 12|
|CHI||0130 ET||China May industrial production expected +6.0% y/y, Apr +6.0% y/y.|
|0130 ET||China May retail sales expected +10.1% y/y, Apr +10.1% y/y.|
|JPN||1950 ET||Japan Q2 BSI large manufacturing business conditions, Q1 -7.9. Q2 BSI large all-industry business conditions, Q1 -3.2.|
|Monday, June 13|
|US||1100 ET||USDA weekly grain export inspections.|
|1600 ET||USDA Weekly Crop Progress.|
|GER||1901 ET||German Q3 Manpower employment outlook.|
|Delta Air Lines Inc||DAL US||7:30||Annual General Meeting|
|Regeneron Pharmaceuticals Inc||REGN US||10:30||Annual General Meeting||Y 2016|
|Dick’s Sporting Goods Inc||DKS US||13:30||Annual General Meeting||Y 2016|
|Public Service Enterprise Group Inc||PEG US||Investor Meeting||Y 2016|
|Gulfport Energy Corp||GPOR US||Annual General Meeting|
|JetBlue Airways Corp||JBLU US||May 2016 Sales and Revenue Release – Traffic Results||2016|
|Garmin Ltd||GRMN US||Annual General Meeting||Y 2016|