Live Index – Wed, 20 Jul 2016 Premarket
Sep E-mini S&Ps (ESU16 +0.31%) are up +0.32% and European stocks are up +1.12% on positive corporate earnings results. Microsoft is up over 4% and Morgan Stanley is up over 3% in pre-market trading to lead U.S. stocks higher, while gains in technology companies and carmakers are leading European stocks higher with SAP SE up over 4% and Volkswagen AG up 6% after both companies reported better-than-expected earnings. On the negative side, mining stocks are weaker, led by a 6% fall in Anglo American Plc after it cut its full-year copper production target to 570,000 MT to 600,000 MT, less than a prior view of 630,000 MT. Asian stocks settled mixed: Japan -0.25%, Hong Kong +0.97%, China -0.29%, Taiwan -0.30%, Australia +0.69%, Singapore +0.90%, South Korea -0.12%, India +0.46%. Japanese stocks were undercut by a 13% drop in Nintendo as profit-taking set in after the stock rallied 120% over the past 2-weeks on the worldwide craze for its Pokemon Go mobile game.
The dollar index (DXY00 +0.04%) is down -0.01%. EUR/USD (^EURUSD) is down -0.07% at a 3-week low. USD/JPY (^USDJPY) is up +0.38% at a 3-week high.
Sep T-note prices (ZNU16 -0.13%) are down -6.5 ticks.
German Jun PPI rose +0.4% m/m and fell -2.2% y/y, stronger than expectations of +0.2% m/m and -2.4% y/y.
Key U.S. news today includes: (1) weekly MBA mortgage applications (previous +7.2% with purchase sub-index unch and refi sub-index +11.2%), and (2) EIA Weekly Petroleum Status Report.
There are 21 of the S&P 500 companies that report earnings today with notable reports including: Morgan Stanley (consensus $ 0.60), Halliburton (-0.19), Intel (0.53), eBay (0.42), Newmont Mining (0.28), AMEX (1.95), Abbott Labs (0.53).
U.S. IPO’s scheduled to price today: Pantheon NV (PTHN), Audentes Therapeutics (BOLD), TPI Composites (TPIC), Impinj Inc (PI),
Equity conferences this week include: none.
Microsoft (MSFT -1.61%) rallied over 4% in pre-market trading after it reported Q4 adjusted EPS of 69 cents, higher than consensus of 58 cents.
Morgan Stanley (MS -0.07%) is up over 3% in pre-market trading after it reported Q2 EPS of 75 cnts, above consensus of 60 cents.
Verizon Communucations (VZ -0.41%) was downgraded to ‘Market Perform’ from ‘Outperform’ at Oppenheimer.
Hyatt Hotels (H -1.29%) was downgraded to ‘Sell’ from ‘Hold’ at Evercore ISI with a 12-month target price of $ 44.
Intuitive Surgical (ISRG +0.20%) jumped over 6% in after-hours trading after it reported Q2 adjusted EPS of $ 5.62, well above consensus of $ 4.98.
Ebay (EBAY +0.04%) gained +0.3% in after-hours trading after it reported June sale up +3.8% y/y, above the +2.8% /y increase in May.
Cintas (CTAS -0.24%) climbed over 3% in after-hours trading after it reported Q4 adjusted EPC continuing operations of $ 1.08, above consensus of $ 1.01, and said it sees full-year EPS continuing operations of $ 4.35-$ 4.45 higher than consensus of $ 4.28.
Discover Financial Services (DFS -0.19%) dropped over 2% in after-hours trading after it reported Q2 net revenue of $ 2.22 billion, below consensus of $ 2.23 billion.
Ryerson Holding (RYI -16.19%) lost over 1% in after-hours trading after it priced a secondary offering of 5 million shares.
Manhattan Associated (MANH -1.75%) rose over 2% in after-hours trading after it reported Q2 adjusted EPS of 49 cents, above consensus of 44 cents, and then raised guidance on full-year adjusted EPS to $ 1.78-$ 1.81 from a prior view of $ 1.73-$ 1.76.
Sarepta Therapeutics (SRPT +0.91%) fell 2% in after-hours trading after it reported a Q2 EPS loss of -$ 1.35, a bigger loss than consensus of -$ 1.23.
Marvell Technology Group (MRVL -2.28%) gained over 1% in after-hours trading after it reported Q4 adjusted EPS of 11 cents, better than consensus of 10 cents.
Interactive Brokers Group (IBKR +1.03%) slid nearly 3% in after-hours trading after it reported Q2 net revenue of $ 369 million, below consensus of $ 377.3 million.
Blackhawk Network Holdings (HAWK +1.82%) climbed over 5% in after-hours trading after it reported Q2 adjusted EPS of 37 cents, better than consensus of 26 cents, and then raised guidance on full-year adjusted EPS to $ 2.47-$ 2.66, higher than a prior view of $ 2.44-$ 2.63.
Zafgen (ZFGN +1.05%) plunged -39% in after-hours trading after it said it will stop all development on its lead obesity drug, beloranib, after two patients died in a clinical trial.
MARKET COMMENTS
Sep E-mini S&Ps (ESU16 +0.31%) this morning are up +7.00 points (+0.32%). Tuesday’s closes: S&P 500 -0.14%, Dow Jones +0.14%, Nasdaq -0.36%. The S&P 500 on Tuesday closed lower on weakness in energy produciers with the -1.1% drop in crude oil prices. Stocks were also undercut by the IMF’s cut in its global 2016 GDP forecast to +3.1% from +3.2% and its global 2017 GDP forecast to +3.4% from +3.5%. Stocks found support on the +4.8% rise in U.S. Jun housing starts to a 4-month high of 1.189 million, stronger than expectations of +0.2% to 1.165 million.
Sep 10-year T-note prices (ZNU16 -0.13%) this morning are down -6.5 ticks. Tuesday’s closes: TYU6 +7.50, FVU6 +2.00. Sep T-notes on Tuesday closed higher on global growth concerns after the IMF cut their 2016 and 2017 global GDP forecasts. T-notes also saw some increased safe-haven demand with the sell-off in stocks.
The dollar index (DXY00 +0.04%) this morning is down -0.011 (-0.01%). EUR/USD (^EURUSD) is down -0.0008 (-0.07%) at a 3-week low and USD/JPY (^USDJPY) is up +0.40 (+0.38%) at a 3-week high. Tuesday’s closes: Dollar index +0.501 (+0.52%), EUR/USD -0.0054 (-0.49%), USD/JPY -0.04 (-0.04%). The dollar index on Tuesday climbed to a 4-1/4 month high and settled higher on weakness in EUR/USD which fell to a 3-week low after the German Jul ZEW survey expectations of economic growth plunged by -26.0 points to a 3-1/2 year low of -6.8. The dollar was also boosted by the stronger-than-expected U.S. June housing starts and building permits reports.
Sep WTI crude oil prices (CLU16 +0.15%) this morning are unchanged and Sep gasoline prices (RBU16 -0.60%) are down -0.0103 (-0.74%). Tuesday’s closes: CLU6 -0.49 (-1.07%), RBU6 -0.0109 (-0.78%). Sep crude oil and gasoline on Tuesday closed lower on the rally in the dollar index to a 4-1/4 month high and the IMF’s cut in its global 2016 GDP forecast to 3.1% from 3.2%, which signals reduced energy demand. Crude oil found support from expectations for Wednesday’s weekly EIA data to show that U.S. crude inventories fell -2.0 million bbl.
GLOBAL EVENT CALENDAR 07/20/2016
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. | |
Thursday, July 21 | ||
US | 0830 ET | Weekly initial unemployment claims expected +11,000 to 265,000, previous unch at 254,000. Weekly continuing claims expected -9,000 to 2.140 million, previous +32,000 to 2.149 million. |
0830 ET | Jul Philadelphia Fed business outlook survey expected +0.1 to 4.8, Jun +6.5 to 4.7. | |
0830 ET | Jun Chicago Fed national activity index expected +0.31 to -0.20, May -0.56 to -0.51. | |
0830 ET | USDA weekly Export Sales. | |
0900 ET | May FHFA house price index expected +0.4% m/m, Apr +0.2% m/m. | |
1000 ET | Jun existing home sales expected -0.9% to 5.48 million, May +1.8% to 5.53 million. | |
1000 ET | Jun leading indicators expected +0.2%, May -0.2%, | |
1100 ET | Treasury announces amount of 2-year T-notes (previous $ 26 billion), 2-year floating-rate notes (previous $ 13 billion), 5-year T-notes (previous $ 34 billion) and 7-year T-notes (previous $ 28 billion) to be auctioned Jul 25-28. | |
1300 ET | Treasury auctions 10-year TIPS. | |
JPN | 0030 ET | Japan May all-industry activity index expected -1.1% m/m, Apr +1.3% m/m. |
0200 ET | Revised Japan Jun machine tool orders. | |
2200 ET | Japan Jul Nikkei manufacturing PMI, Jun +0.4 to 48.1. | |
UK | 0430 ET | UK Jun retail sales ex auto fuel expected -0.6% m/m and +4.8% y/y, May +1.0% m/m and +5.7% y/y. |
0430 ET | UK Jun retail sales including auto fuel expected -0.6% m/m and +5.0% y/y, May +0.9% m/m and +6.0% y/y. | |
0430 ET | UK Jun public sector net borrowing expected +9.2 billion pounds, May +9.1 billion pounds. | |
EUR | 0745 ET | ECB announces interest rate decision. |
0830 ET | ECB President Mario Draghi delivers press conference following ECB meeting. |
U.S. STOCK CALENDAR 07/20/2016
Company | Ticker | Time | Event Description | Period | Estimate |
---|---|---|---|---|---|
Halliburton Co | HAL | Bef-mkt | Q2 2016 Earnings Release | Q2 2016 | -0.189 |
M&T Bank Corp | MTB | Bef-mkt | Q2 2016 Earnings Release | Q2 2016 | 2.085 |
Northern Trust Corp | NTRS | Bef-mkt | Q2 2016 Earnings Release | Q2 2016 | 1.059 |
Amphenol Corp | APH | Bef-mkt | Q2 2016 Earnings Release | Q2 2016 | 0.631 |
TE Connectivity Ltd | TEL | Bef-mkt | Q3 2016 Earnings Release | Q3 2016 | 1.035 |
Morgan Stanley | MS | 7:00 | Q2 2016 Earnings Release | Q2 2016 | 0.598 |
St Jude Medical Inc | STJ | 7:15 | Q2 2016 Earnings Release | Q2 2016 | 1.058 |
Abbott Laboratories | ABT | 7:30 | Q2 2016 Earnings Release | Q2 2016 | 0.533 |
Illinois Tool Works Inc | ITW | 8:00 | Q2 2016 Earnings Release | Q2 2016 | 1.399 |
St Jude Medical Inc | STJ | 8:00 | Q2 2016 Earnings Call | Q2 2016 | |
Navient Corp | NAVI | 8:00 | Q2 2016 Earnings Call | Q2 2016 | |
Morgan Stanley | MS | 8:30 | Q2 2016 Earnings Call | Q2 2016 | |
TE Connectivity Ltd | TEL | 8:30 | Q3 2016 Earnings Call | Q3 2016 | |
Abbott Laboratories | ABT | 9:00 | Q2 2016 Earnings Call | Q2 2016 | |
Halliburton Co | HAL | 9:00 | Q2 2016 Earnings Call | Q2 2016 | |
EI du Pont de Nemours & Co | DD | 10:00 | Extraordinary Shareholders Meeting – M&A Vote | Y 2016 | |
Illinois Tool Works Inc | ITW | 10:00 | Q2 2016 Earnings Call | Q2 2016 | |
United Continental Holdings Inc | UAL | 10:30 | Q2 2016 Earnings Call | Q2 2016 | |
Dow Chemical Co/The | DOW | 11:00 | Extraordinary Shareholders Meeting – M&A Vote | Y 2016 | |
M&T Bank Corp | MTB | 11:00 | Q2 2016 Earnings Call | Q2 2016 | |
Northern Trust Corp | NTRS | 12:00 | Q2 2016 Earnings Call | Q2 2016 | |
Campbell Soup Co | CPB | 12:30 | Investor Day | Y 2016 | |
Amphenol Corp | APH | 13:00 | Q2 2016 Earnings Call | Q2 2016 | |
American Express Co | AXP | 16:00 | Q2 2016 Earnings Release | Q2 2016 | 1.954 |
Intel Corp | INTC | 16:00 | Q2 2016 Earnings Release | Q2 2016 | 0.532 |
eBay Inc | EBAY | 16:00 | Q2 2016 Earnings Release | Q2 2016 | 0.421 |
F5 Networks Inc | FFIV | 16:00 | Q3 2016 Earnings Release | Q3 2016 | 1.785 |
Mattel Inc | MAT | 16:05 | Q2 2016 Earnings Release | Q2 2016 | -0.047 |
Kinder Morgan Inc/DE | KMI | 16:05 | Q2 2016 Earnings Release | Q2 2016 | 0.149 |
QUALCOMM Inc | QCOM | 16:30 | Q3 2016 Earnings Call | Q3 2016 | |
F5 Networks Inc | FFIV | 16:30 | Q3 2016 Earnings Call | Q3 2016 | |
Kinder Morgan Inc/DE | KMI | 16:30 | Q2 2016 Earnings Call | Q2 2016 | |
American Express Co | AXP | 17:00 | Q2 2016 Earnings Call | Q2 2016 | |
Mattel Inc | MAT | 17:00 | Q2 2016 Earnings Call | Q2 2016 | |
Tractor Supply Co | TSCO | 17:00 | Q2 2016 Earnings Call | Q2 2016 | |
eBay Inc | EBAY | 17:00 | Q2 2016 Earnings Call | Q2 2016 | |
Newmont Mining Corp | NEM | Aft-mkt | Q2 2016 Earnings Release | Q2 2016 | 0.281 |
QUALCOMM Inc | QCOM | Aft-mkt | Q3 2016 Earnings Release | Q3 2016 | 0.974 |
Tractor Supply Co | TSCO | Aft-mkt | Q2 2016 Earnings Release | Q2 2016 | 1.156 |
SL Green Realty Corp | SLG | Aft-mkt | Q2 2016 Earnings Release | Q2 2016 | 3.14 |
United Rentals Inc | URI | Aft-mkt | Q2 2016 Earnings Release | Q2 2016 | 1.821 |
FMC Technologies Inc | FTI | Aft-mkt | Q2 2016 Earnings Release | Q2 2016 | 0.295 |
Intel Corp | INTC | 17:30 | Q2 2016 Earnings Call | Q2 2016 | |
Constellation Brands Inc | STZ | Annual General Meeting |