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.
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
|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|