Live Index – Fri, 08 Jul 2016 Premarket

Sep E-mini S&Ps (ESU16 +0.26%) are up +0.23% and European stocks are up +1.10% on light short-covering ahead of U.S. Jun non-farm payrolls. A rally in Italian bank stocks is leading the overall European market higher with Banco Popolare SC up over 9% after it said its own stress tests showed “resilience” to adverse shocks and Banca Monte dei Paschi di Siena SpA was up almost 5% after its CEO said it’s working “intensely” with authorities to quickly resolve its bad-loan burden. Italian authorities are trying to shore up its banks that have 360 billion of soured loans. European automakers are higher as well on signs of strong auto sales in China as Mercedes-Benz reported China Jan-Jun auto sales surged +32% y/y to 229,137 units. Asian stocks settled mostly lower: Japan -1.11%, Hong Kong -0.69%, China -0.95%, Taiwan closed for holiday, Australia +0.05%, Singapore -0.53%, South Korea -0.48%, India -0.27%. Japan’s Nikkei Stock Index fell to a 1-week low as a stronger yen undercut exporter stocks.

The dollar index (DXY00 -0.20%) is down -0.22%. EUR/USD (^EURUSD) is up +0.03%. USD/JPY (^USDJPY) is down -0.31%.

Sep T-note prices (ZNU16 -0.05%) are down -3 ticks.

The German May trade balance fell to a surplus of +21.0 billion euros, smaller than expectations of +23.5 billion euros. May exports unexpectedly fell -1.8% m/m, weaker than expectations of +0.4% m/m and the biggest decline in 9 months. May imports rose +0.1% m/m, weaker than expectations of +0.7% m/m.

Key U.S. news today includes: (1) Jun non-farm payrolls (expected +180,000, May +38,000) and Jun unemployment rate (expected +0.1 to 4.8%, May -0.3 to 4.7%), (2) May consumer credit (expected +$ 16.000 billion, Apr +$ 13.416 billion), (3) G-20 trade ministers meeting in Shanghai, and (4) USDA weekly Export Sales.

Russell 1000 companies reporting earnings today: none.

U.S. IPO’s scheduled to price today: none.

Equity conferences this week include: none.

Molson Coors Brewing (TAP -1.40%) was upgraded to ‘Buy’ from ‘Neutral’ at Bryan Garnier & Cie with a 6-month price target of $ 110.

GrubHub (GRUB +0.78%) was rated a new ‘Outperform’ at Wedbush with a 12-month price target of $ 40.

Transocean Ltd (RIG +0.50%) was downgraded to ‘Sell’ from ‘Hold’ at Cananccord Genuity.

McDonald’s (MCD +0.24%) said it sees a Q2 pretax charge of $ 235 million, or 20 cents a share, on refranchising and G&A programs along with the move of its corporate headquarters.

United Technologies’ (UTX +0.58%) Pratt Unit was awarded a contract by the U.S. Navy valued at $ 1.5 billion for 99 total engines for the Martin F-35 Lightning II aircraft.

The Gap (GPS -0.73%) climbed 4% in after-hours trading after Retail Metrics reported that Jun comparable same-store-sales were up +2% y/y, better than expectations of down -3.6% y/y.

PriceSmart (PSMT -2.90%) fell over 4% in after-hours trading after it reported Q3 EPS od 55 cents, well below consensus of 70 cents.

Capital One Financial (COF +1.00%) was upgraded to ‘Buy’ from ‘Neutral’ at D.A. Davidson with a price target of $ 76.

WD-40 (WDFC +0.28%) slid over 3% in after-hours trading after it cut its view on 2016 revenue to $ 378 million-$ 383 million from an April 7 estimate of $ 385 million-$ 394 million.

The $ 360 million punitive award in the trial alleging defects in Johnson & Johnson’s (JNJ -0.11%) hip implants was cut to $ 10 million after a Texas judge applied a cap on punitive damages.

Barracuda Networks (CUDA +3.40%) jumped 15% in after-hours trading after it raised guidance on fiscal 2017 adjusted EPS to 54 cents-59 cents from an April 26 estimate of 45 cents-50 cents.

Roche Holding AG (RHHBY -0.15%) said it received FDA approval for its test for human papillomavirus that can be used with cervical cells obtained for a Pap test for use with SurePath Preservative Fluid.

Eleven Biotherapeutics (EBIO -3.45%) surged over 20% in after-hours trading after it said its IND application for EDI-031 for the treatment of ocular diseases has become effective.

September E-mini S&Ps (ESU16 +0.26%) this morning are up +4.75 points (+0.23%). Thursday’s closes: S&P 500 -0.09%, Dow Jones -0.13%, Nasdaq +0.33%. The S&P 500 on Thursday fell back from a 2-week high and closed lower on weakness in energy producers after the price of crude oil fell sharply by -4.74% to a 1-3/4 month low. There was also long liquidation and position-squaring ahead of Friday’s all-important monthly payrolls report. Stocks received support from the +172,000 gain in Jun ADP employment (higher than expectations of +160,000) and the unexpected -16,000 decline in weekly U.S. jobless claims to a 2-1/2 month low of 254,000, better than expectations for a +1,000 increase to 269,000.

Sep 10-year T-note prices (ZNU16 -0.05%) this morning are down -3 ticks. Thursday’s closes: TYU6 +0.50. FVU6 +0.50. Sep T-notes on Thursday closed slightly higher on increased safe-haven demand as stocks moved lower and on the slide in crude oil to a 1-3/4 month low, which reduced inflation expectations. T-notes were undercut by signs of U.S. labor market strength after the Jun ADP employment change rose by +172,000 (vs expectations of +160,000) and weekly initial unemployment claims fell by -24,000 to a 2-1/2 month low.

The dollar index (DXY00 -0.20%) this morning is down -0.210 (-0.22%). EUR/USD (^EURUSD) is up +0.0003 (+0.03%). USD/JPY (^USDJPY) is down -0.31 (-0.31%). Thursday’s closes: Dollar Index +0.275 (+0.29%), EUR/USD -0.0035 (-0.32%), USD/JPY -0.55 (-0.54%). The dollar index on Thursday closed higher on signs of strength in the U.S. labor market after June ADP employment rose +172,000 (higher than expectations of +160,000) and after weekly jobless claims fell by -16,000 to a 2-1/2 month low of 254,000. The dollar was also boosted by weakness in EUR/USD after German May industrial production fell -1.3% m/m, the biggest monthly decline in 1-3/4 years.

Aug WTI crude oil (CLQ16 +1.11%) this morning is up +38 cents (+0.84%). Aug gasoline (RBQ16 +0.65%) is up +0.0042 (+0.31%). Thursday’s closes: CLQ6 -2.25 (-4.74%), RBQ6 -0.0630 (-4.40%). Aug crude oil and gasoline on Thursday closed sharply lower with Aug crude at a 1-3/4 month low and Aug gasoline at a 3-month low. Crude oil prices were undercut by dollar strength, the -2.22 million bbl decline in weekly EIA crude inventories (vs expectations of -2.5 million bbl), and the -122,000 bbl drop in EIA gasoline stockpiles (vs expectations of -350,000 bbl).