Wed Jul 27 2016
Nikki Bailey (1044 articles)

US : Pre Market News – 27 Jul 2016

NEW YORK :

PREMARKET WORLD NEWS

Sep E-mini S&Ps (ESU16 +0.15%) this morning are mildly higher by +0.2% and the Euro Stoxx 50 index is up +1.1% on a +6% rally in Apple overnight and on Japanese Prime Minister Abe’s announcement of a 28 trillion yen ($ 265 billion) fiscal stimulus package. Mr. Abe was not expected to announce the package size until next week but he likely wanted to increase the pressure on the BOJ for new monetary policy stimulus measures at its Thursday-Friday meeting. Apple in yesterday’s post-close quarterly results said that iPhone demand picked up and the company’s Q4 sales guidance was above the market consensus. The markets remain on edge, however, ahead of today’s FOMC post-meeting statement. A negative factor for European stocks today was a -4% sell-off in Deutsche Bank after the bank said that it barely earned a profit due to a drop in trading revenue and job-reduction costs. Twitter is down -11% overnight due to disappointing Q3 revenue guidance. The Chinese stock market closed lower today after a media report that China’s banking regulator is considering moves to tighten up wealth management products.

Asian stocks today, except for China, closed higher: Japan +1.72%, Hong Kong +0.40%, China Shanghai -1.91%, Taiwan +0.43%, Australia +0.04%, Singapore +0.27%, South Korea unchanged, India +0.17%, Turkey +0.88%.

The dollar index (DXY00 +0.15%) this morning is trading slightly higher by +0.08%. EUR/USD (^EURUSD) is up +0.0012 (+0.11%). USD/JPY (^USDJPY) is up +0.84 (+0.80%) this morning as the yen moved lower on PM Abe’s fiscal-stimulus announcement which increased the pressure on the BOJ for more monetary stimulus. GBP/USD is down -0.0037 (-0.28%) this morning despite today’s slightly stronger than-expected UK Q2 GDP report of +0.6% q/q and +2.2% (vs expectations of +0.5% q/q and +2.1%). The UK Q2 GDP data precedes the June 23 Brexit vote and will not deter the BOE next week from likely cutting rates a notch.

Sep 10-year T-note prices (ZNU16 -0.07%) this morning are down -3 ticks on reduced safe-haven demand due to higher global stocks. In addition, T-notes are still seeing weakness after the poor demand for yesterday’s 5-year T-note auction. The Treasury today will sell $ 15 billion of 2-year floating rate notes and on Thursday will sell $ 28 billion of 7-year T-notes.

Commodity prices this morning are mildly lower by -0.16%. Sep crude oil (CLU16 -0.44%) is down by another -0.20 (-0.47%) and Sep gasoline (RBU16 -0.16%) is down -0.0021 (-0.16%) after the API on Tuesday reported that Cushing oil inventories rose +1.4 million bbls and that U.S. crude oil inventories rose by +827,000 bbls. Metals prices this morning are steady to lower on a slightly stronger dollar: Aug gold (GCQ16 -0.08%) -0.7 (-0.05%), Sep silver (SIU16 -0.07%) +0.007 (+0.04%), Sep copper (HGU16 -0.56%) -0.016 (-0.70%). Grain prices this morning are mixed as the focus remains on weather: Dec corn unchanged, Nov soybeans +4.50 (+0.46%), Sep wheat -0.50 (-0.12%). Softs this morning are mixed: Oct sugar -0.15 (-0.77%), Sep coffee +1.10 (+0.78%), Sep cocoa +7 (+0.25%), Dec cotton -0.08 (-0.11%).

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly MBA mortgage applications (previous -1.3% with purchase sub-index -2.0% and refi sub-index down -0.9%), (2) Jun durable goods orders (expected -1.4% and +0.3% ex-transportation, May -2.3% and -0.3% ex-transportation), (3) Jun pending home sales (expected +1.2% m/m and +3.0% y/y, May -3.7% m/m and +2.4% y/y), (4) Treasury auctions $ 15 billion of 2-year floating-rate notes, (5) 2-day FOMC policy meeting ends with post-meeting statement (no Fed Chair press conference), and (6) EIA Weekly Petroleum Status Report.

There are 54 of the S&P 500 companies that report earnings today with notable reports including: Facebook (0.82), Coca-Cola (0.58), Waste Management (0.71), Comcast (0.81), Nasdaq (0.88), Boeing (-0.94), Amgen (2.74), Whole Foods (0.37), Wynn Resorts (0.90).

U.S. IPO’s scheduled to price today: Kinsdale Capital Group (KNSL).

Equity conferences this week include: none.

Sep E-mini S&Ps this morning are mildly higher by +0.2% on a +6% rally in Apple overnight and on Japanese Prime Minister Abe’s announcement of a 28 trillion yen ($ 265 billion) fiscal stimulus package. Tuesday’s closes: S&P 500 +0.03%, Dow Jones -0.10%, Nasdaq +0.24%. The S&P 500 on Tuesday closed little changed. Stocks were undercut by technical selling and concern that the FOMC at its Tue-Wed meeting might adopt more hawkish language. Energy producers continued to be undercut by the ongoing sell-off in Sep crude oil prices. Stocks received support from the stronger-than-expected U.S. consumer confidence index (-0.1 to 97.3 vs expectations for a decline 96.0) and June new home sales report (+3.5%).

PREMARKET U.S. STOCKS
  • Apple (AAPL -0.69%) rallied +6% in overnight trading after its earnings report included news that iPhone sales were stronger than expected and that revenue fell by less than expected.
  • Twitter (TWTR -1.07%) is down -11% in overnight trading on weaker-than-expected Q3 revenue guidance of $ 590-610 million, far below the consensus of $ 681 million, which fueled recent concerns that the company is struggling to boost advertising revenue as user growth stagnates.
  • Earnings reports this morning have nearly all beaten expectations. Notable results include Anthem (ANTM -1.71%) (3.33 vs 3.23 consensus), Coca-Cola ({=KO) (0.60 vs 0.58), Comcast (CMCSA -0.43%) (0.83 vs 0.81), State Street (STT +0.92%) (1.46 vs 1.27), Rockwell (ROK +2.08%) (1.55 vs 1.46), Nasdaq (NDAQ +0.09%) (0.91 vs 0.88), Waste Management (WM +0.19%) (0.74 vs 0.71),
  • Analog Devices (ADI +3.87%) rallied +7% in after-hours trading after the earlier announcement that it is buying Linear Technology (LLTC +28.93%) for $ 14.8 billion at a premium of 24% to Monday’s closing price. Linear Technology on Tuesday closed up +29%.
  • Fiesta Restaurant Group (FRGI -6.96%) rallied +2% in after-hours trading after being named to the S&P SmallCap 600 index.
  • LogMeIn (LOGM +6.74%) rallied 19% in after-hours trading after news that the company will merge with Citrix’s (CTXS +1.19%) GoTo family of products. Citrix fell -1.2% in after-hours trading on the news.
  • Edwards Sciences (EW +1.72%) rallied by +6% in after-hours trading after reporting above-consensus ex-items adjusted EPS of 76 cents (vs the 70 cent consensus) and raising its 2016 earnings guidance for the third quarter in a row.
  • Panera Bread (PNRA -4.32%) rallied +4% in after-hours trading after reporting better than expected adjusted EPS of $ 1.78 (vs consensus $ 1.74).
  • Akamai Technologies (AKAM +0.33%) fell by -10% in after-hours trading after missing Q2 revenue estimates.
  • Juniper Networks (JNPR +0.67%) fell -1% in after-hours trading after its Q3 earnings guidance of 48-54 cents missed the consensus of 54 cents. Q2 adjusted EPS of 50 cents was above the 47-cent consensus.
MARKET COMMENTS

Sep 10-year T-note prices this morning are down -3 ticks on reduced safe-haven demand due to higher global stocks and on supply overhang ahead of the Treasury’s auction of 2-year floating rate notes today and 7-year T-notes on Thursday. Tuesday’s closes: TYU6 +2, FVU6 +0.75. Sep 10-year T-notes on Tuesday closed mildly higher on the soft stock market and the continued decline in crude oil prices, which dampened inflation expectations. T-notes were undercut by poor demand for Tuesday’s 5-year T-note auction, which saw the lowest bid cover ratio since 2009. T-notes were also undercut by some concern that the FOMC at its Tue-Wed meeting might adopt more hawkish language in its post-meeting statement.

The dollar index this morning is trading slightly higher by +0.08%. EUR/USD is up +0.0012 (+0.11%). USD/JPY is up +0.84 (+0.80%) this morning as the yen moved lower on PM Abe’s fiscal-stimulus announcement which increased the pressure on the BOJ for more monetary stimulus. Tuesday’s closes: Dollar index -0.13 (-0.13%), EUR/USD -0.0009 (-0.08%), USD/JPY -1.15 (-1.09%). The dollar index on Tuesday closed mildly lower. The yen rallied sharply by +1.09% on Tuesday on Japanese Finance Minister Aso’s comment that the government will “leave actual policy measures to the BOJ,” which doused hopes for a big Japanese fiscal stimulus program. The dollar found support on ideas the FOMC at its Tue-Wed meeting might adopt slightly more hawkish post-meeting statement language.

Sep crude oil is down by another -0.20 (-0.47%) and Sep gasoline is down -0.0021 (-0.16%) after the API on Tuesday reported that Cushing oil inventories rose +1.4 million bbls and that U.S. crude oil inventories rose by +827,000 bbls. Tuesday’s closes: CLU6 -0.21 (-0.49%), RBU6 +0.0101 (+0.76%). Sep crude oil and gasoline closed mixed on Tuesday. Crude oil was undercut by continued technical selling as Sep crude oil fell to a new 3-month low and by continued concern about the crude oil glut and the increasing number of active U.S. oil wells. Crude oil was supported by the mildly lower dollar index and expectations for Wednesday’s weekly EIA report to show a -2.5 million bbl decline in U.S. crude oil inventories.

GLOBAL EVENT CALENDAR 07/27/2016
Wednesday, July 27
US0700 ETWeekly MBA mortgage applications, previous -1.3% with purchase sub-index -2.0% and refi sub-index down -0.9%.
0830 ETJun durable goods orders expected -1.4% and +0.3% ex-transportation, May -2.3% and -0.3% ex-transportation. Jun capital goods orders nondefense ex-aircraft expected +0.2%, May -0.4%.
1000 ETJun pending home sales expected +1.2% m/m and +3.0% y/y, May -3.7% m/m and +2.4% y/y.
1030 ETEIA Weekly Petroleum Status Report.
1130 ETTreasury auctions $ 15 billion of 2-year floating-rate notes.
1400 ETFOMC announces interest rate decision; 0.25%-0.50% fed funds rate target expected unchanged.
Thursday, July 28
US0830 ETWeekly initial unemployment claims expected +8,000 to 261,000, previous -1,000 to 253,000. Weekly continuing claims expected +8,000 to 2.136 million, previous -25,000 to 2.128 million.
0830 ETUSDA weekly Export Sales.
1100 ETJul Kansas City Fed manufacturing activity expected +2 to 4, Jun +7 to 2.
1300 ETTreasury auctions $ 28 billion of 7-year T-notes.
GER0355 ETGerman Jul unemployment change expected -4,000, Jun -6,000. Jul unemployment rate expected unch at 6.1%.
0800 ETGerman Jul CPI (EU harmonized) expected +0.3% m/m and +0.3% y/y, Jun +0.1% m/m and +0.2% y/y.
EUR0500 ETEurozone Jul economic confidence expected -0.8 to 103.6, Jun -0.2 to 104.4. Jul business climate indicator expected -0.05 to 0.17, Jun -0.04 to 0.22.
0500 ETRevised Eurozone Jul consumer confidence, prelim-Jul -0.7 to -7.9.
UK0200 ETUK Jul nationwide house prices expected unch m/m and +4.5% y/y, Jun +0.2% m/m and +5.1% y/y.
1901 ETUK Jul Lloyds business barometer, Jun 6.
1905 ETUK Jul GfK consumer confidence expected -7 to -8, Jun unch at -1.
JPN1930 ETJapan Jun jobless rate expected unch at 3.2%. Jun job-to-applicant ratio expected +0.01 to 1.37, May +0.02 to 1.36.
1930 ETJapan Jun overall household spending expected -0.3% y/y, May -1.1% y/y.
1930 ETJapan Jun national CPI expected -0.5% y/y, May -0.4% y/y. Jun national CPI ex-fresh food expected -0.4% y/y, May -0.4% y/y. Jun national CPI ex food & energy expected +0.5% y/y, May +0.6% y/y.
1930 ETJapan Jul Tokyo CPI expected -0.5% y/y, Jun -0.5% y/y. Jul Tokyo CPI ex-fresh food expected -0.4% y/y, Jun -0.5% y/y. Jul Tokyo CPI ex food & energy expected +0.3% y/y, Jun +0.4% y/y.
1950 ETJapan Jun industrial production expected +0.5% m/m and -3.0% y/y, May -2.6% m/m and -0.4% y/y.
1950 ETJapan Jun retail sales expected +0.3% m/m and -1.3% y/y, May -0.1% m/m and -2.1% y/y.
U.S. STOCK CALENDAR 07/27/2016
CompanyTickerTimeEvent DescriptionPeriodEstimate
Coca-Cola Co/TheKOBef-mktQ2 2016 Earnings ReleaseQ2 20160.583
Corning IncGLWBef-mktQ2 2016 Earnings ReleaseQ2 20160.324
Laboratory Corp of America HoldingsLHBef-mktQ2 2016 Earnings ReleaseQ2 20162.297
Northrop Grumman CorpNOCBef-mktQ2 2016 Earnings ReleaseQ2 20162.528
Waste Management IncWMBef-mktQ2 2016 Earnings ReleaseQ2 20160.709
Garmin LtdGRMNBef-mktQ2 2016 Earnings ReleaseQ2 20160.668
Dr Pepper Snapple Group IncDPSBef-mktQ2 2016 Earnings ReleaseQ2 20161.2
Anthem IncANTM6:00Q2 2016 Earnings ReleaseQ2 20163.233
Ingersoll-Rand PLCIR6:30Q2 2016 Earnings ReleaseQ2 20161.301
Altria Group IncMO7:00Q2 2016 Earnings ReleaseQ2 20160.798
WEC Energy Group IncWEC7:00Q2 2016 Earnings ReleaseQ2 20160.55
Comcast CorpCMCSA7:00Q2 2016 Earnings ReleaseQ2 20160.809
State Street CorpSTT7:00Q2 2016 Earnings ReleaseQ2 20161.266
Simon Property Group IncSPG7:00Q2 2016 Earnings ReleaseQ2 20162.621
Rockwell Automation IncROK7:00Q3 2016 Earnings ReleaseQ3 20161.459
Nasdaq IncNDAQ7:00Q2 2016 Earnings ReleaseQ2 20160.883
Hess CorpHES7:30Q2 2016 Earnings ReleaseQ2 2016-1.23
Boeing Co/TheBA7:30Q2 2016 Earnings ReleaseQ2 2016-0.941
NextEra Energy IncNEE7:30Q2 2016 Earnings ReleaseQ2 20161.574
General Dynamics CorpGD7:30Q2 2016 Earnings ReleaseQ2 20162.315
Southern Co/TheSO7:30Q2 2016 Earnings ReleaseQ2 20160.709
FLIR Systems IncFLIR7:30Q2 2016 Earnings ReleaseQ2 20160.353
Goodyear Tire & Rubber Co/TheGT7:45Q2 2016 Earnings ReleaseQ2 20161.02
Ryder System IncR7:55Q2 2016 Earnings ReleaseQ2 20161.536
Norfolk Southern CorpNSC8:00Q2 2016 Earnings ReleaseQ2 20161.349
Level 3 Communications IncLVLT8:00Q2 2016 Earnings CallQ2 2016
Nasdaq IncNDAQ8:00Q2 2016 Earnings CallQ2 2016
Mondelez International IncMDLZ8:00Q2 2016 Earnings ReleaseQ2 20160.4
Assurant IncAIZ8:00Q2 2016 Earnings CallQ2 2016
Corning IncGLW8:30Q2 2016 Earnings CallQ2 2016
Comcast CorpCMCSA8:30Q2 2016 Earnings CallQ2 2016
Chubb LtdCB8:30Q2 2016 Earnings CallQ2 2016
McKesson CorpMCK8:30Annual General MeetingY 2016
Rockwell Automation IncROK8:30Q3 2016 Earnings CallQ3 2016
CH Robinson Worldwide IncCHRW8:30Q2 2016 Earnings CallQ2 2016
Anthem IncANTM8:30Q2 2016 Earnings CallQ2 2016
Wyndham Worldwide CorpWYN8:30Q2 2016 Earnings CallQ2 2016
Norfolk Southern CorpNSC8:45Q2 2016 Earnings CallQ2 2016
Anadarko Petroleum CorpAPC9:00Q2 2016 Earnings CallQ2 2016
Coca-Cola Co/TheKO9:00Q2 2016 Earnings CallQ2 2016
NextEra Energy IncNEE9:00Q2 2016 Earnings CallQ2 2016
General Dynamics CorpGD9:00Q2 2016 Earnings CallQ2 2016
Goodyear Tire & Rubber Co/TheGT9:00Q2 2016 Earnings CallQ2 2016
Laboratory Corp of America HoldingsLH9:00Q2 2016 Earnings CallQ2 2016
Altria Group IncMO9:00Q2 2016 Earnings CallQ2 2016
Universal Health Services IncUHS9:00Q2 2016 Earnings CallQ2 2016
Range Resources CorpRRC9:00Q2 2016 Earnings CallQ2 2016
Simon Property Group IncSPG9:00Q2 2016 Earnings CallQ2 2016
Ameriprise Financial IncAMP9:00Q2 2016 Earnings CallQ2 2016
State Street CorpSTT9:30Q2 2016 Earnings CallQ2 2016
Hess CorpHES10:00Q2 2016 Earnings CallQ2 2016
Ingersoll-Rand PLCIR10:00Q2 2016 Earnings CallQ2 2016
Waste Management IncWM10:00Q2 2016 Earnings CallQ2 2016
Boston Properties IncBXP10:00Q2 2016 Earnings CallQ2 2016
Mondelez International IncMDLZ10:00Q2 2016 Earnings CallQ2 2016
Dr Pepper Snapple Group IncDPS10:00Q2 2016 Earnings CallQ2 2016
Boeing Co/TheBA10:30Q2 2016 Earnings CallQ2 2016
Garmin LtdGRMN10:30Q2 2016 Earnings CallQ2 2016
Ryder System IncR11:00Q2 2016 Earnings CallQ2 2016
Cincinnati Financial CorpCINF11:00Q2 2016 Earnings CallQ2 2016
FLIR Systems IncFLIR11:00Q2 2016 Earnings CallQ2 2016
Equity ResidentialEQR11:00Q2 2016 Earnings CallQ2 2016
Linear Technology CorpLLTC11:30Q4 2016 Earnings CallQ4 2016
Northrop Grumman CorpNOC12:00Q2 2016 Earnings CallQ2 2016
Southern Co/TheSO13:00Q2 2016 Earnings CallQ2 2016
UDR IncUDR13:00Q2 2016 Earnings CallQ2 2016
WEC Energy Group IncWEC14:30Q2 2016 Earnings CallQ2 2016
Amgen IncAMGN16:00Q2 2016 Earnings ReleaseQ2 20162.741
McKesson CorpMCK16:00Q1 2017 Earnings ReleaseQ1 20173.331
Pioneer Natural Resources CoPXD16:00Q2 2016 Earnings ReleaseQ2 2016-0.342
Facebook IncFB16:00Q2 2016 Earnings ReleaseQ2 20160.824
Torchmark CorpTMK16:05Q2 2016 Earnings ReleaseQ2 20161.093
Xilinx IncXLNX16:20Q1 2017 Earnings ReleaseQ1 20170.556
Hologic IncHOLX16:30Q3 2016 Earnings CallQ3 2016
Vertex Pharmaceuticals IncVRTX16:30Q2 2016 Earnings CallQ2 2016
O’Reilly Automotive IncORLY16:30Q2 2016 Earnings ReleaseQ2 20162.675
Fortune Brands Home & Security IncFBHS16:30Q2 2016 Earnings CallQ2 2016
CA IncCA17:00Q1 2017 Earnings CallQ1 2017
Legg Mason IncLM17:00Q1 2017 Earnings CallQ1 2017
Varian Medical Systems IncVAR17:00Q3 2016 Earnings CallQ3 2016
Amgen IncAMGN17:00Q2 2016 Earnings CallQ2 2016
Lam Research CorpLRCX17:00Q4 2016 Earnings CallQ4 2016
Whole Foods Market IncWFM17:00Q3 2016 Earnings CallQ3 2016
Xilinx IncXLNX17:00Q1 2017 Earnings CallQ1 2017
McKesson CorpMCK17:00Q1 2017 Earnings CallQ1 2017
Facebook IncFB17:00Q2 2016 Earnings CallQ2 2016
XL Group LtdXL17:00Q2 2016 Earnings CallQ2 2016
Equifax IncEFXAft-mktQ2 2016 Earnings ReleaseQ2 20161.358
Kimco Realty CorpKIMAft-mktQ2 2016 Earnings ReleaseQ2 20160.381
Legg Mason IncLMAft-mktQ1 2017 Earnings ReleaseQ1 20170.261
Murphy Oil CorpMURAft-mktQ2 2016 Earnings ReleaseQ2 2016-0.364
Owens-Illinois IncOIAft-mktQ2 2016 Earnings ReleaseQ2 20160.629
Unum GroupUNMAft-mktQ2 2016 Earnings ReleaseQ2 20160.94
Varian Medical Systems IncVARAft-mktQ3 2016 Earnings ReleaseQ3 20161.174
Hologic IncHOLXAft-mktQ3 2016 Earnings ReleaseQ3 20160.477
Lam Research CorpLRCXAft-mktQ4 2016 Earnings ReleaseQ4 20161.646
Vertex Pharmaceuticals IncVRTXAft-mktQ2 2016 Earnings ReleaseQ2 20160.204
Whole Foods Market IncWFMAft-mktQ3 2016 Earnings ReleaseQ3 20160.372
Realty Income CorpOAft-mktQ2 2016 Earnings ReleaseQ2 20160.719
Marriott International Inc/MDMARAft-mktQ2 2016 Earnings ReleaseQ2 20160.976
Extra Space Storage IncEXRAft-mktQ2 2016 Earnings ReleaseQ2 20160.928
Fortune Brands Home & Security IncFBHSAft-mktQ2 2016 Earnings ReleaseQ2 20160.728
XL Group LtdXLAft-mktQ2 2016 Earnings ReleaseQ2 20160.135
CA IncCAQ1 2017 Earnings ReleaseQ1 20170.613
Public StoragePSAQ2 2016 Earnings ReleaseQ2 20162.396
Level 3 Communications IncLVLTQ2 2016 Earnings ReleaseQ2 20160.433
Wynn Resorts LtdWYNNQ2 2016 Earnings ReleaseQ2 20160.901
Wyndham Worldwide CorpWYNQ2 2016 Earnings ReleaseQ2 20161.374

Nikki Bailey

Nikki Bailey

Nikki Bailey reports on US Stocks. She covers also economy and related aspects. She has been tracking US Stock markets for several years now. She is based in New York

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