Live Index – Tue, 19 Jul 2016 Premarket
Sep E-mini S&Ps (ESU16 -0.22%) are down -0.23% and European stocks are down -1.18% on concern the decision by the UK to leave the European Union could weaken economic growth in the Eurozone after the German Jul ZEW survey expectations of economic growth fell more than expected to -6.8, a 3-1/2 year low. Also, Netflix plunged 12% in pre-market trading after it reported a slower-than-expected increase in subscriber growth, and Fiat Chrysler Automobiles NV is down 4% after U.S. authorities opened a criminal investigation of the company amid allegations it inflated sales figures. Asian stocks settled mixed: Japan +1.37%, Hong Kong -0.60%, China -0.23%, Taiwan +0.30%, Australia -0.13%, Singapore -0.31%, South Korea -0.22%, India +0.15%. Japan’s Nikkei Stock Index rallied to a 1-1/4 month high as it reopened following Monday’s holiday, led by a 14% surge in Nintendo as the frenzy over the company’s mobile game Pokemon Go continues.
The dollar index (DXY00 +0.23%) is up +0.21% at a 1-week high. EUR/USD (^EURUSD) is down -0.17%. USD/JPY (^USDJPY) is down -0.02%.
Sep T-note prices (ZNU16 +0.20%) are up +9 ticks.
The German Jul ZEW survey expectations of economic growth plunged -26.0 to -6.8, weaker than expectations of -10.2 to 9.0 and the lowest in 3-1/2 years.
Key U.S. news today includes: (1) Jun housing starts (expected +0.1% to 1.166 million, May -0.3% to 1.164 million).
There are 17 of the S&P 500 companies that report earnings today with notable reports including: Goldman Sachs (consensus $ 3.05), Microsoft (0.58), UnitedHealth (1.89), Johnson & Johnson (1.68), Cintas (1.01), Discover Financial (1.40), Naviet (0.44).
U.S. IPO’s scheduled to price today: none.
Equity conferences this week include: none.
Netflix (NFLX +0.43%) plunged 12% in pre-market trading after it said it sees Q3 international streaming net adds of 2 million, below consensus of 2.54 million, and said it sees Q3 EPS of 5 cents, weaker than consensus of 7 cents.
Seagate Technology PLC (STX +4.33%) was upgrraded to ‘Neutral’ from ‘Sell’ at Citigroup.
Fiat Chrysler Automobiles NV (FCAU -0.30%) dropped 4% in pre-market trading as U.S. authorities are investigating the company on allegations it inflated vehicle sales figures.
International Business Machines (IBM +0.05%) climbed nearly 3% in after-hours trading after it reported Q2 operating EPS of $ 2.95, higher than consensus of $ 2.89.
Super Micro Computer (SMCI +1.31%) sank 18% in after-hours trading after it reported preliminary Q4 adjusted EPS of 15 cents-17 cents, well below an April 28 estimate of 46 cents-58 cents.
VMWare (VMW +0.81%) jumped 8% in after-hours trading after it reported Q2 adjusted EPS of 97 cents, better than consensus of 95 cents.
Spirit Airlines (SAVE +0.74%) lost over 6% in after-hours trading after it reported Q2 TRASM (total revenue per available seat mile) down -14.3% y/y at the lower end of initial guidance range.
Hyatt Hotels (H +0.77%) was downgraded to ‘Hold’ from ‘Buy’ at Stifel.
Yahoo! (YHOO +0.61%) rose nearly 1% in after-hours trading after it reported Q2 revenue ex-TAC $ 841.2 million, higher than consensus of $ 839.6 million.
Rambus (RMBS +0.47%) slipped nearly 3% in after-hours trading after it reported Q2 adjusted EPS of 15 cents, higher than 13 cents, but then forecast Q3 revenue of $ 75 million-$ 80 million, below consensus of $ 84 million.
EMC Corp. (EMC -0.04%) gained over 1% in after-hours trading after it reported Q2 adjusted EPS of 45 cents, higher than consensus of 42 cents.
Enviva Partners LP (EVA -1.65%) was rated a new ‘Buy’ at DA Davidson with a 12-month target price of $ 28.
Wynn Resorts Ltd. (WYNN +4.81%) lost 1% in after-hours trading after MGM Resorts International launched its easyPLAY Mobile Tournaments and is the first regulated casino to host an interactive digital gaming platform.
Hudson Technologies (HDSN +7.98%) surged over 30% in after-hours trading after the U.S. Department of Defense awarded Hudson a 5-year contract worth up to $ 400 million.
Sep E-mini S&Ps (ESU16 -0.22%) this morning are down -5.00 points (-0.23%). Monday’s closes: S&P 500 +0.24%, Dow Jones +0.09%, Nasdaq +0.65%. The S&P 500 on Monday closed higher on reduced geopolitical concerns after Turkish President Erdogan put an end to Friday’s failed coup attempt. Stocks were also boosted by strength in bank stocks after Bank of America rose by more than 3% after reporting better-than-expected Q2 EPS. Another positive factor was increased M&A activity after SoftBank Group Corp bought ARM Holdings Plc for $ 32 billion. Stocks were undercut by the -1 point decline in the U.S. Jul NAHB housing market index to 59, weaker than expectations of unchanged at 60.
Sep 10-year T-note prices (ZNU16 +0.20%) this morning are up +9 ticks. Monday’s closes: TYU6 +5.00, FVU6 +3.25. Sep T-notes on Monday recovered from a 3-week low and closed higher on carryover support from a rally in German bunds and on the unexpected -1 point decline in the U.S. July NAHB housing market index. T-notes were undercut by reduced safe-haven demand for T-notes after Turkish President Erdogan regained control of the government following Friday’s failed coup attempt.
The dollar index (DXY00 +0.23%) this morning is up +0.200 (+0.21%) at a 1-week high. EUR/USD (^EURUSD) is down -0.0019 (-0.17%) and USD/JPY (^USDJPY) is down -0.02 (-0.02%). Monday’s closes: Dollar index -0.018 (-0.02%), EUR/USD +0.0040 (+0.36%), USD/JPY +1.28 (+1.22%). The dollar index on Monday closed lower on the unexpected decline in the U.S. July NAHB housing market index and strength in EUR/USD after an upbeat monthly report from the Bundesbank said that “a significant increase in overall economic performance in the summer quarter is expected.”
Aug WTI crude oil prices (CLQ16 -0.11%) this morning are down -16 cents (-0.35%) and Aug gasoline prices (RBQ16 -0.37%) are down -0.0094 (-0.68%). Monday’s closes: CLQ6 -0.75 (-1.63%), RBQ6 -0.0330 (-2.32%). Aug crude oil and gasoline on Monday closed lower on the lack of any disruption in crude oil flows through Turkey, a major distribution point of crude from the Middle East into Europe, after Friday’s failed coup attempt in Turkey.
GLOBAL EVENT CALENDAR 07/19/2016
|Tuesday, July 19|
|US||0830 ET||Jun housing starts expected +0.1% to 1.166 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.|
|Wednesday, July 20|
|US||0700 ET||Weekly MBA mortgage applications, previous +7.2% with purchase sub-index unch and refi sub-index +11.2%.|
|1030 ET||EIA Weekly Petroleum Status Report.|
|JPN||0130 ET||Japan Jun nationwide department store sales, May -5.1% y/y.|
|GER||0200 ET||German Jun PPI expected +0.2% m/m and -2.4% y/y, May +0.4% m/m and -2.7% y/y.|
|UK||0430 ET||UK Jun jobless claims change expected +4,000, May -400. Jun claimant count rate expected unch at 2.2%.|
|0430 ET||UK May average weekly earnings expected +2.3% 3-mon avg y/y, Apr +2.0% 3-mon avg y/y. May weekly earnings ex-bonus expected +2.3% 3-mo avg y/y, Apr +2.3% 3-mo avg y/y.|
|0430 ET||UK ILO unemployment rate expected 5.0% 3-months through May, previous 5.0% 3-months through Apr.|
|EUR||1000 ET||Eurozone Jul consumer confidence expected -0.7 to -8.0, Jun -0.3 to -7.3.|
U.S. STOCK CALENDAR 07/19/2016
|Comerica Inc||CMA||Bef-mkt||Q2 2016 Earnings Release||Q2 2016||0.692|
|Genuine Parts Co||GPC||Bef-mkt||Q2 2016 Earnings Release||Q2 2016||1.294|
|Kansas City Southern||KSU||Bef-mkt||Q2 2016 Earnings Release||Q2 2016||1.024|
|UnitedHealth Group Inc||UNH||Bef-mkt||Q2 2016 Earnings Release||Q2 2016||1.887|
|Prologis Inc||PLD||Bef-mkt||Q2 2016 Earnings Release||Q2 2016||0.588|
|Goldman Sachs Group Inc/The||GS||Bef-mkt||Q2 2016 Earnings Release||Q2 2016||3.052|
|Regions Financial Corp||RF||Bef-mkt||Q2 2016 Earnings Release||Q2 2016||0.205|
|Johnson & Johnson||JNJ||6:45||Q2 2016 Earnings Release||Q2 2016||1.68|
|Philip Morris International Inc||PM||7:00||Q2 2016 Earnings Release||Q2 2016||1.198|
|Lockheed Martin Corp||LMT||7:15||Q2 2016 Earnings Release||Q2 2016||2.926|
|WW Grainger Inc||GWW||7:30||Q2 2016 Earnings Release||Q2 2016||3.169|
|WW Grainger Inc||GWW||7:30||Q2 2016 Earnings Call||Q2 2016|
|Comerica Inc||CMA||8:00||Q2 2016 Earnings Call||Q2 2016|
|Johnson & Johnson||JNJ||8:30||Q2 2016 Earnings Call||Q2 2016|
|Kansas City Southern||KSU||8:45||Q2 2016 Earnings Call||Q2 2016|
|UnitedHealth Group Inc||UNH||8:45||Q2 2016 Earnings Call||Q2 2016|
|Philip Morris International Inc||PM||9:00||Q2 2016 Earnings Call||Q2 2016|
|Goldman Sachs Group Inc/The||GS||9:30||Q2 2016 Earnings Call||Q2 2016|
|EMC Corp/MA||EMC||10:00||Extraordinary Shareholders Meeting – M&A Vote||Y 2016|
|Genuine Parts Co||GPC||11:00||Q2 2016 Earnings Call||Q2 2016|
|Lockheed Martin Corp||LMT||11:00||Q2 2016 Earnings Call||Q2 2016|
|Regions Financial Corp||RF||11:00||Q2 2016 Earnings Call||Q2 2016|
|Prologis Inc||PLD||12:00||Q2 2016 Earnings Call||Q2 2016|
|Sempra Energy||SRE||13:30||Business Update Call|
|Microsoft Corp||MSFT||16:10||Q4 2016 Earnings Release||Q4 2016||0.582|
|Intuitive Surgical Inc||ISRG||16:30||Q2 2016 Earnings Call||Q2 2016|
|Cintas Corp||CTAS||17:00||Q4 2016 Earnings Call||Q4 2016|
|Discover Financial Services||DFS||17:00||Q2 2016 Earnings Call||Q2 2016|
|Cintas Corp||CTAS||Aft-mkt||Q4 2016 Earnings Release||Q4 2016||1.014|
|United Continental Holdings Inc||UAL||Aft-mkt||Q2 2016 Earnings Release||Q2 2016||2.564|
|Discover Financial Services||DFS||Aft-mkt||Q2 2016 Earnings Release||Q2 2016||1.403|
|Navient Corp||NAVI||Aft-mkt||Q2 2016 Earnings Release||Q2 2016||0.444|
|Microsoft Corp||MSFT||17:30||Q4 2016 Earnings Call||Q4 2016|
|Intuitive Surgical Inc||ISRG||Q2 2016 Earnings Release||Q2 2016||4.983|