Live Index – Mon, 18 Jul 2016 Premarket
Sep E-mini S&Ps (ESU16 +0.19%) are up +0.17% as they erased losses from late Friday on speculation U.S. markets will be spared financial fallout from the failed military coup in Turkey. Also, bank stocks rose, led by a +0.5% increase in Bank of America in pre-market trading, after it reported Q2 EPS of 36 cents, higher than consensus of 33 cents. European stocks are down -0.40% as they fell back from a 3-week high after mining stocks moved lower with the price of copper (HGU16 -1.16%) down -1.05%. European stocks had moved up to that 3-week high on increased M&A activity after Softbank Group Corp. agreed to buy UK’s ARM Holdings Plc for 24.3 billion pounds ($ 32 billion). Asian stocks settled mixed: Japan closed for holiday, Hong Kong +0.66%, China -0.35%, Taiwan +0.65%, Australia +0.53%, Singapore +0.12%, South Korea +0.20%, India -0.32%. The Shanghai Composite closed lower as property developers declined on signs that China’s housing market is cooling after China June new home prices rose in 55 out of 70 cities, down from 60 cities that rose in May. China’s yuan also fell to 6.7 yuan per dollar, a 5-3/4 year low, which fuels depreciation concerns that may lead to capital outflows from China.
The dollar index (DXY00 +0.01%) is up +0.10%. EUR/USD (^EURUSD) is up +0.20%. USD/JPY (^USDJPY) is up +0.72%.
Sep T-note prices (ZNU16 +0.17%) are up +6.5 ticks.
In its monthly report, the Bundesbank said “The fundamental trend continues to be rather strong, and a significant increase in overall economic performance in the summer quarter is expected.” Effects of UK referendum to leave EU are currently difficult to estimate, can remain limited at least in short term.
China Jun new-home prices rose in 55 cities tracked by the National Bureau of Statistics, down from 60 that rose in May. Home prices dropped in 10 cities in Jun, up from just 4 that fell a month earlier.
Key U.S. news today includes: (1) Jul NAHB housing market index expected unch at 60, Jun +2 to 60, (2) USDA weekly grain export inspections, (3) USDA Weekly Crop Progress.
S&P 500 companies reporting earnings today: Bank of America (consensus $ 0.33), EMC (0.42), IBM (2.89), Yahoo (0.09), Netflix (0.02), Schwab (0.30), Hasbro (0.38), JB Hunt Transport (0.97).
U.S. IPO’s scheduled to price today: none.
Equity conferences this week include: none.
Bank of America (BAC +0.07%) is up +0.3% in pre-market trading after it reported adjusted Q@ EPS of 37 cents, above consensus of 33 cents.
Hasbro (HAS +0.28%) reported Q2 EPS of 41 cents, higher than consensus of 38 cents.
C.H. Robinson Worldwide (CHRW -0.50%) was downgraded to ‘Marker Perform’ from ‘Outperform’ at Raymond James.
Groupon (GRPN -2.24%) jumped 12% in pre-market trading after it was upgraded to ‘Overweight’ from ‘Neutral’ at Piper Jaffray.
Steve Madden Ltd. (SHOO -0.25%) was downgraded to ‘Neutral’ from ‘Buy’ at Buckingham Research Group.
Texas Roadhouse (TXRH -0.87%) was downgraded to ‘Hold’ from ‘Buy’ at Maxim Group with a 12-month target price of $ 48.
NetEase (NTES -0.15%) was rated a new ‘Buy’ at Brean Capital with a 12-month price target of $ 235.
Norwegian Cruise Line Holdings Ltd. (NCLH -3.69%) fell over 2% in after-hours trading after the reported coup attempt by the military in Turkey.
Alon USA Energy (ALJ -1.95%) rose 2% in after-hours trading after Point72 reported a 5.4% passive stake in the company.
Coca-Cola Femsa SAB de CV (KOF -0.12%) was upgraded to ‘Outperform’ from ‘Neutral’ at Bradesco Corretora with a price target of $ 80.
Ferro (FOE -0.70%) tumbled over 8% in after-hours trading after it turned down bids from Apollo and CVC Partners that were below $ 14 a share.
Superior Energy Services (SPN -2.01%) was upgraded to ‘Outperform’ from ‘Inline’ at Imperial Capital LLC with a 12-month price target of $ 23.
Sep E-mini S&Ps (ESU16 +0.19%) this morning are up +3.75 points (+0.17%). Friday’s closes: S&P 500 -0.09%, Dow Jones +0.05%, Nasdaq -0.14%. The S&P 500 fell back from a record high and closed lower after the U.S. Jul University of Michigan consumer sentiment unexpectedly fell -4.0 point to 89.5, weaker than expectations of unch at 93.5, and after travel-related stocks sold-off after the terror attack late Thursday night in Nice, France. Limiting losses in stocks was the U.S. Jun retail sales that rose +0.6% and +0.7% ex autos, stronger than expectations of +0.1% and +0.4% ex autos, and the +0.4% increase in U.S. Jun manufacturing production, stronger than expectations of +0.3%.
Sep 10-year T-note prices (ZNU16 +0.17%) this morning are up +6.5 ticks. Friday’s closes: TYU6 -16.50, FVU6 -9.75. Sep T-notes on Friday tumbled to a 3-week low and closed lower after the +2.3% increase in U.S. Jun CPI ex food & energy, higher than expectations of +2.2% y/y, and after U.S. Jun retail sales and Jun industrial production rose more than expected, which bolsters the case for Fed rate hikes.
The dollar index (DXY00 +0.01%) this morning is up +0.093 (+0.10%). EUR/USD (^EURUSD) is up +0.0022 (+0.20%) and USD/JPY (^USDJPY) is up +0.75 (+0.72%). Friday’s closes: Dollar index -0.503 (+0.52%), EUR/USD -0.0085 (-0.76%), USD/JPY -0.47 (-0.45%). The dollar index on Friday closed higher due to the stronger-than-expected U.S. economic data on Jun retail sales and Jun industrial production. Another supportive factor was increased safe-haven demand for the dollar after Turkey’s army attempted a government coup late Friday.
Aug WTI crude oil (CLQ16 -0.76%) prices this morning are down -23 cents (-0.50%) and Aug gasoline (RBQ16 -1.69%) prices are down -0.0142 (-1.00%). Friday’s closes: CLQ6 +0.27 (+0.59%), RBQ6 +0.0080 (+0.57%). Aug crude oil and gasoline on Friday closed higher with Aug gasoline at a 1-week high after Exxon Mobile declared Force Majeure on its Nigerian crude exports. Also, signs of stronger Chinese energy demand gave energy prices a boost after China Jun crude processing rose +3.2% y/y to a record 11 million bpd.
GLOBAL EVENT CALENDAR 07/18/2016
|Monday, July 18|
|US||1000 ET||Jul NAHB housing market index expected unch at 60, Jun +2 to 60.|
|1100 ET||USDA weekly grain export inspections.|
|1600 ET||USDA Weekly Crop Progress.|
|Tuesday, July 19|
|US||0830 ET||Jun housing starts expected +0.1% to 1.165 million, May -0.3% to 1.164 million. Jun building permits expected +1.2% to 1.150 million, May +0.5% to 1.136 million.|
|UK||0430 ET||UK Jun CPI expected +0.2% m/m and +0.4% y/y, May +0.2% m/m and +0.3% y/y. June core CPI expected +1.2% y/y, May +1.2% y/y.|
|0430 ET||UK Jun RPI expected +0.2% m/m and +1.5% y/y, May +0.3% m/m and +1.4% y/y. Jun RPI ex-mortgage interest payments expected +1.5% y/y, May +1.5% y/y.|
|0430 ET||UK Jun PPI input prices expected +1.1% m/m and -0.7% y/y, May +2.6% m/m and -3.9% y/y.|
|0430 ET||UK Jun PPI output prices expected +0.2% m/m and -0.5% y/y, May +0.1% m/m and -0.7% y/y. Jun PPI output core expected +0.1% m/m and +0.6% y/y, May unch m/m and +0.5% y/y.|
|0430 ET||UK May house price index, Apr +8.2% y/y.|
|GER||0500 ET||German Jul ZEW survey expectations of economic growth expected -10.2 to 9.0, Jun +12.8 to 19.2. Jul ZEW survey current situation expected -3.0 to 51.5, Jun +1.4 to 54.5.|
|EUR||0500 ET||Eurozone May construction output, Apr -0.2% m/m and -0.4% y/y.|
U.S. STOCK CALENDAR 07/18/2016
|Bank of America Corp||BAC US||6:45||Q2 2016 Earnings Release||Q2 2016||0.329|
|Bank of America Corp||BAC US||8:30||Q2 2016 Earnings Call||Q2 2016|
|Hasbro Inc||HAS US||8:30||Q2 2016 Earnings Call||Q2 2016|
|EMC Corp/MA||EMC US||16:00||Q2 2016 Earnings Release||Q2 2016||0.416|
|International Business Machines Corp||IBM US||16:00||Q2 2016 Earnings Release||Q2 2016||2.889|
|Yahoo! Inc||YHOO US||16:00||Q2 2016 Earnings Release||Q2 2016||0.091|
|Netflix Inc||NFLX US||16:05||Q2 2016 Earnings Release||Q2 2016||0.024|
|International Business Machines Corp||IBM US||17:00||Q2 2016 Earnings Call||Q2 2016|
|Netflix Inc||NFLX US||17:00||Q2 2016 Earnings Call||Q2 2016|
|Yahoo! Inc||YHOO US||17:30||Q2 2016 Earnings Call||Q2 2016|
|Charles Schwab Corp/The||SCHW US||Q2 2016 Earnings Release||Q2 2016||0.298|
|Hasbro Inc||HAS US||Q2 2016 Earnings Release||Q2 2016||0.384|
|JB Hunt Transport Services Inc||JBHT US||Q2 2016 Earnings Release||Q2 2016||0.972|
|CarMax Inc||KMX US||Analyst Day||Y 2016|