Live Index – Tue, 28 Jun 2016 Premarket
Sep E-mini S&Ps (ESU16 +0.97%) are up sharply by +1.06% and European stocks are up +2.52%, the first gains in U.S. and European equity markets since last Thursday’s Brexit vote, on optimism that global central banks are committed to limit the fallout from the UK’s exit of the European Union. A weaker dollar has fueled a rally in commodities, which has boosted energy and raw-material producing stocks, while strength in European banks has lifted U.S. bank stocks. Asian stocks settled mostly higher: Japan +0.09%, Hong Kong -0.27%, China +0.58%, Taiwan +0.55%, Australia -0.66%, Singapore +0.98%, South Korea +0.33%, India +0.46%. Japanese stocks erased early losses and closed higher after USD/JPY rose and after the Nikkei newspaper reported that a 20 trillion yen ($ 196 billion) stimulus proposal has been submitted to Prime Minister Abe by a senior official in his party.
The dollar index (DXY00 -0.65%) is down -0.67%. EUR/USD (^EURUSD) is up +0.56%. USD/JPY (^USDJPY) is up +0.30%.
Sep T-note prices (ZNU16 -0.11%) are down -7 ticks.
Key U.S. news today includes: (1) revised U.S. Q1 GDP (expected +1.0%, previous +0.8%), (2) Apr S&P/CaseShiller composite-20 home price index (expected +0.60% m/m and +5.5% y/y, Mar +0.85% m/m and +5.43% y/y), (3) Conference Board Jun U.S. consumer confidence index (expected +0.7 to 93.3, May -2.1 to 92.6), (4) Jun Richmond Fed manufacturing index (expected +3 to 2, May -15 to -1).
There are 4 of the Russell 1000 companies report earnings today: Carnival (consensus $ 0.39), NIKE (0.48), IHS (1.49), FactSet (1.56).
U.S. IPO’s scheduled to price today: none.
Equity conferences during the remainder of this week include: J.P. Morgan Inaugural Energy Equity Investor Conference on Mon-Wed.
Travelers Cos. (TRV -0.60%) was upgraded to ‘Buy’ from ‘Neutral’ at Bank of America/Merrill Lynch with a price target of $ 127.
Olin Corp. (OLN -6.18%) was upgraded to ‘Outperform’ from ‘Market Perform’ at Cowen with a 12-month price target of $ 31.
Dow Chemical (DOW -3.10%) said it plans to eliminate about 2,500 jobs and shut plants in North Carolina and Japan and sees $ 410 million to $ 460 million in charges in Q2 as it restructures Dow Corning ownership.
Tesla Motors (TSLA +2.80%) was downgraded to ‘Hold’ from ‘Buy’ at Argus Research
Snap-on (SNA -1.40%) was rated a new ‘Buy’ at CL King with a 12-month price target of $ 174.
Charles River Laboratories International (CRL -5.48%) rose 5% in after-hours trading after it said it acquired Blue Stream Laboratories.
Karyopharm Therapeutics (KPTI -10.11%) was rated a new ‘Outperform’ at Robert Baird.
North Tide Capital reported a 7.5% passive stake in BioScrip (BIOS -3.61%) .
Blue Buffalo Pet Products (BUFF -2.70%) dropped nearly 6% in after-hours trading after holders downsized the secondary offering to 15 million shares from 25 million shares.
Sanchez Energy (SN -10.48%) was rated a new ‘Buy’ at National Securities.
MeetMe (MEET -3.91%) climbed nearly 3% in after-hours trading after it acquired Skout for $ 54.6 million in cash and stock.
Regulus Therapeutics (RGLS -5.29%) plunged 60% in after-hours trading after the FDA said that the company’s hepatitis C treatment RG-101 has been placed on clinical hold after a second serious event of jaundice occurred in a patient taking the RG-101.
Ziopharm Oncology (ZIOP -5.85%) rose nearly 2% in after-hours trading after the company said immunologic activity after its gene therapy candidate IL-12 suggests that no further dose escalation will be necessary and optimal dosing may be reached sooner than initially expected.
September E-mini S&Ps (ESU16 +0.97%) this morning are up sharply by +21.00 points (+1.06%). Monday’s closes: S&P 500 -1.81%, Dow Jones -1.50%, Nasdaq -1.98%. The S&P 500 on Monday sank to a 3-1/2 month low and closed lower on negative carryover from the slump in European stocks to a 4-1/2 month low on continued fallout from last Thursday’s Brexit vote. In addition, energy producer stocks were weak after the price of crude oil fell -2.75% to a 2-week low. Bank stocks sold off after S&P Global Ratings cut the UK’s credit rating by two levels to AA from AAA with a negative outlook citing “the risks of a marked deterioration of external financing conditions.”
Sep 10-year T-note prices (ZNU16 -0.11%) this morning are down -7 ticks. Monday’s closes: TYU6 +29.00. FVU6 +14.75. Sep T-notes on Monday closed higher on continued safe-haven demand after the S&P 500 fell to a 3-1/2 month low and on the sharp reduction in expectations for Fed tightening due to the Brexit vote, with the market now ascribing virtually no chance for a Fed rate hike this year.
The dollar index (DXY00 -0.65%) this morning is down -0.647 (-0.67%). EUR/USD (^EURUSD) is up +0.0062 (+0.56%). USD/JPY (^USDJPY) is up +0.31 (+0.30%). Monday’s closes: Dollar Index +1.096 (+1.15%), EUR/USD -0.0092 (-0.83%), USD/JPY -0.22 (-0.22%). The dollar index on Monday climbed to a 3-1/4 month high and closed higher. The dollar was boosted by ongoing weakness in GBP/USD which slumped to a 30-3/4 year low due to fallout from last Thursday’s Brexit vote. In addition, EUR/USD showed continued weakness on concern the political strife in the UK will spread throughout Europe and throw the Eurozone economy into recession.
Aug WTI crude oil (CLQ16 +2.40%) this morning is up +$ 1.27 a barrel (+2.74%). Aug gasoline (RBQ16 +2.33%) is up +0.0319 (+2.15%). Monday’s closes: CLQ6 -1.31 (-2.75%), RBQ6 -0.0474 (-3.09%). Aug crude oil and gasoline on Monday fell to 2-week lows and closed lower. Crude oil prices were undercut by the rally in the dollar index to a 3-1/4 month high and by concerns about weaker global economic growth after the Brexit vote.
|Tuesday, June 28, 2016|
|US||0830 ET||Revised U.S. Q1 GDP expected +1.0%, previous +0.8% (q/q annualized). Revised Q1 personal consumption expected +2.0%, previous +1.9%. Q1 GDP price index expected unrevised at +0.6%. Q1 core PCE deflator expected unrevised at +2.1% q/q.|
|0900 ET||Apr S&P/CaseShiller composite-20 home price index expected +0.60% m/m and +5.5% y/y, Mar +0.85% m/m and +5.43% y/y.|
|1000 ET||Conference Board Jun U.S. consumer confidence index expected +0.7 to 93.3, May -2.1 to 92.6.|
|1000 ET||Jun Richmond Fed manufacturing index expected +3 to 2, May -15 to -1.|
|Wednesday, June 29, 2016|
|US||0700 ET||Weekly MBA mortgage applications, previous +2.9% with purchase sub-index -2.4% and refi sub-index +6.5%.|
|0830 ET||May personal spending expected +0.4%, Apr +1.0%. May personal income expected +0.3%, Apr +0.4%.|
|0830 ET||May PCE deflator expected +0.2% m/m and +1.0% y/y, Apr +0.3% m/m and +1.1% y/y. May core PCE deflator expected +0.2% m/m and +1.6% y/y, Apr +0.2% m/m and +1.6% y/y.|
|1000 ET||May pending home sales expected -1.1% m/m and +4.6% y/y, Apr +5.1% m/m and +2.9% y/y.|
|1030 ET||EIA Weekly Petroleum Status Report.|
|1630 ET||Federal Reserve Board releases results from supervisory stress tests.|
|GER||0200 ET||German Jul GfK consumer confidence expected unch ay 9.8, Jun +0.1 to 9.8.|
|0800 ET||German Jun CPI (EU harmonized) expected +0.1% m/m and +0.2% y/y, May +0.4% m/m and unch y/y.|
|UK||0200 ET||UK Jun nationwide house prices expected +0.1% m/m and +4.9% y/y, May +0.2% m/m and +4.7% y/y.|
|0430 ET||UK May net consumer credit expected +1.5 billion pounds, Apr +1.3 billion pounds.|
|0430 ET||UK May mortgage approvals expected 64,000, Apr 66,300.|
|0430 ET||UK May M4 money supply, Apr -0.1% m/m and +1.0% y/y.|
|1901 ET||UK Jun Lloyds business barometer, May 32.|
|1905 ET||UK Jun GfK consumer confidence expected -2 to -3, May -1.|
|EUR||0500 ET||Eurozone Jun economic confidence expected unch at 104.7. Jun business climate indicator expected unch at 0.26.|
|0500 ET||Revised Eurozone Jun consumer confidence, prelim-Jun -0.3 to -7.3.|
|0930 ET||ECB President Mario Draghi participates on a policy panel at the ECB Forum on Central Banking in Portugal.|
|JPN||1950 ET||Japan May industrial production expected -0.2% m/m and +1.9% y/y, Apr +0.5% m/m and -3.3% y/y.|
|Carnival Corp||CCL||Bef-mkt||Q2 2016 Earnings Release||Q2 2016||0.389|
|IHS Inc||IHS||Bef-mkt||Q2 2016 Earnings Release||Q2 2016||1.488|
|FactSet Research Systems Inc||FDS||7:00||Q3 2016 Earnings Release||Q3 2016||1.56|
|IHS Inc||IHS||8:00||Q2 2016 Earnings Call||Q2 2016|
|MasterCard Inc||MA||8:30||Annual General Meeting|
|Carnival Corp||CCL||10:00||Q2 2016 Earnings Call||Q2 2016|
|FactSet Research Systems Inc||FDS||11:00||Q3 2016 Earnings Call||Q3 2016|
|CarMax Inc||KMX||13:00||Annual General Meeting||Y 2016|
|NIKE Inc||NKE||16:15||Q4 2016 Earnings Release||Q4 2016||0.48|
|NIKE Inc||NKE||17:00||Q4 2016 Earnings Call||Q4 2016|