US : Pre Market News – 28 Jul 2016
Thu Jul 28 2016
Nikki Bailey (267 articles)
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US : Pre Market News – 28 Jul 2016

NEW YORK :

PREMARKET WORLD NEWS

Sep E-mini S&Ps (ESU16 -0.10%) this morning are trading slightly higher by +0.12% on support from a +5% overnight rally in Facebook on better-than-expected revenue and user figures. The Euro Stoxx 50 index this morning is down by -0.67%, undercut by the banking sector after Lloyds Banking Group fell -4% on a disappointing earnings outlook tied in part to Brexit. The European banking sector is also lower ahead of bank stress-test results that will be released on Friday.

On the more positive side, European stocks are getting some underlying support this morning from news that the July Eurozone economic confidence index from the European Commission rose by +0.2 points to 104.6 from 104.4 in June, which was substantially stronger than market expectations for a -0.9 point decline to 103.5. The confidence report suggested that Europe largely shook off concerns about the July 23 Brexit vote. The July German unemployment rate was unchanged at a record low of 6.1%. The Spanish Q2 unemployment rate fell to a 6-year low of 20%.

The Nikkei index today closed -1.12% on yen strength with USD/JPY down -0.67 yen (-0.64%) this morning. The Japanese markets are worried about whether the BOJ on Friday will announce a sufficiently large expansion of new monetary stimulus measures to meet high market expectations. Prime Minister Abe on Wednesday announced a $ 265 billion fiscal stimulus plan to put pressure on the BOJ for the maximum amount of new monetary stimulus.

The rest of the Asian markets today closed mixed with support from Wednesday’s FOMC results that reduced concerns for a rate hike as early as the next FOMC meeting in September: Hong Kong -0.20%, China Shanghai +0.08%, Taiwan +0.15%, Australia +0.30%, Singapore -0.78%, South Korea -0.34%, India +0.66%, Turkey +0.66%.

Sep 10-year T-notes (ZNU16 +0.01%) are up +1.5 ticks this morning as the market looks ahead to today’s 7-year T-note auction. There are questions about Treasury demand at current yields after the weak demand seen at Tuesday’s 5-year T-note auction.

The dollar index (DXY00 -0.46%) is down -0.52 points (-0.53%) this morning as the dollar continues to slide on the market’s dovish interpretation of Wednesday’s FOMC post-meeting statement. The dollar is also lower on yen strength as USD/JPY (^USDJPY) fell -0.67 (-0.64%) on fears that the BOJ will disappoint on Friday. EUR/USD (^EURUSD) this morning is up +0.30 (+0.27%).

Commodity prices are up +0.42% this morning with support in part from today’s -0.53% sell-off in the dollar index. Sep crude oil (CLU16 +0.24%) this morning is slightly lower by -0.05 (-0.12%) on continued overhang from yesterday’s weekly EIA that showed an unexpected +1.7 million bbl increase in U.S. crude oil inventories and the third straight week of U.S. oil production gains. Sep gasoline (RBU16 +0.61%) this morning is up +0.0016 (+0.12%). Metals prices are trading sharply higher on the weak dollar with Aug gold (GCQ16 +1.07%) up +13.1 (+0.99%), Sep silver (SIU16 +2.13%) up +0.415 (+2.08%), and Sep copper (HGU16 +1.01%) up +0.016 (+0.73%). Grains are trading higher with Dec corn up +1.00 (+0.29%), Nov soybeans up +2.00 (+0.20%), and Sep wheat up +3.50 (+0.84%). Softs are mixed with Oct sugar down -0.04 (-0.21%), Sep coffee up +0.25 (+0.18%), Sep cocoa up +23 (+0.81%), and Dec cotton down -1.29 (-1.75%).

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly initial unemployment claims (expected +8,000 to 261,000, previous -1,000 to 253,000) and continuing claims (expected +8,000 to 2.136 million, previous -25,000 to 2.128 million), (2) Jul Kansas City Fed manufacturing activity (expected +2 to 4, Jun +7 to 2), (3) Treasury auction of $ 28 billion of 7-year T-notes, and (4) USDA weekly Export Sales.

There are 67 of the S&P 500 companies that report earnings today with notable reports including: Amazon.com (consensus $ 1.12), Alphabet (8.03), MasterCard (0.90), Ford (0.60), Harley-Davidson (1.54), PG&E (0.92), Marathon Petroleum (0.97), Dow Chemical (0.85), Baker Hughes (-0.62), CME Group (1.11).

U.S. IPO’s scheduled to price today: Bioventus Inc (BIOV), Talend SA (TLND).

Equity conferences this week include: none.

Sep E-mini S&Ps this morning are trading slightly higher by +0.12% on support from a +5% overnight rally in Facebook on better-than-expected revenue and user figures. Wednesday’s closes: S&P 500 -0.12%, Dow Jones -0.01%, Nasdaq +0.58%. The S&P 500 on Wednesday closed slightly lower. Stocks were undercut by the weaker-than-expected June durable goods orders report of -4.0% and -0.5% ex-transportation (vs market expectations of -1.4% and +0.3%) and by the weaker-than-expected U.S. June pending home sales report of +0.2% m/m (vs expectations of +1.2%). There was also weakness in petroleum companies as Sep crude oil fell by another -2.3% to a new 3-month low. However, stocks saw underlying support from the FOMC’s post-meeting statement that did not suggest that the FOMC is on the verge of a rate hike at its next meeting in September. U.S. stocks also got a boost from the early announcement of Japan’s new $ 265 billion fiscal stimulus package.

PREMARKET U.S. STOCKS
  • Facebook (FB +1.75%) rallied 5% overnight after revenue and user figures topped estimates on a surge in mobile ads.
  • Groupon (GRPN -3.32%) rallied 24% in after-hours trading on higher sales guidance for the remainder of the year.
  • Cirrus Logic (CRUS +2.50%) rallied 14% in after-hours trading after strong revenue guidance and EPS and sales figures that beat the consensus (Q1 EPS of 44 cents vs 27 cent consensus).
  • Whole Foods (WFM -1.38%) fell 4% in after-hours trading after missing sales estimates on tougher competition.
  • Vertex Pharmaceuticals (VRTX +1.08%) fell -2.5% in after-hours trading after reporting disappointing sales for its Orkambi therapy.
  • Barrick Gold (ABX +4.40%) fell -2.6% in after-hours trading after releasing its quarterly earnings report.
  • Earnings reports this morning have been nearly all positive with results including: Fifth Third (FITB -0.05%)(0.41 vs 0.38 consensus), Marathon Petroleum (MPC -2.02%)(1.62 vs 0.97), Dow Chemical (DOW +0.17%)(0.95 vs 0.85), Colgate-Palmolive (CL -0.95%)(0.70 vs 0.60), Raytheon (RTN -0.04%)(2.38 vs 2.02), Bristol-Myers (BMY +1.88%)(0.69 vs 0.66), CME Group (CME +1.20%) (1.14 vs 1.11),
MARKET COMMENTS

Sep 10-year T-notes are up +1.5 ticks this morning as the market looks ahead to today’s 7-year T-note auction. Wednesday’s closes: TYU6 +13.5, FVU6 +8.5. Sep 10-year T-notes on Wednesday rallied moderately on the weaker-than-expected U.S. durable goods and pending home sales reports and on relief that the FOMC did not adopt more hawkish language suggesting a rate hike in September. T-notes were also boosted by the -2.3% sell-off in Sep crude oil that further dampened inflation expectations.

The dollar index is down -0.52 points (-0.53%) this morning as the dollar continues to slide on the market’s dovish interpretation of Wednesday’s FOMC post-meeting statement. The dollar is also lower on yen strength as USD/JPY fell -0.67 (-0.64%) on fears that the BOJ will disappoint on Friday. EUR/USD this morning is up +0.30 (+0.27%). Wednesday’s closes: Dollar index -0.10 (-0.11%), EUR/USD +0.0072 (+0.66%), USD/JPY +0.74 (+0.71%). The dollar index on Wednesday closed mildly lower on the market’s dovish interpretation of the FOMC’s post-meeting statement. USD/JPY rallied on Japanese Prime Minister Abe’s earlier-than-expected announcement of a $ 265 billion fiscal stimulus package, which will put pressure on the BOJ for new stimulus measures at its Thu-Friday meeting.

Sep crude oil this morning is slightly lower by -0.05 (-0.12%) on continued overhang from yesterday’s weekly EIA that showed an unexpected +1.7 million bbl increase in U.S. crude oil inventories and the third straight week of U.S. oil production gains. Sep gasoline this morning is up +0.0016 (+0.12%). Wednesday’s closes: CLU6 -1.00 (-2.33%), RBU6 -0.0264 (-1.96%). Sep crude oil and gasoline on Wednesday closed lower with Sep crude oil posting a new 3-month low on the EIA report showing a +1.67 million bbl rise in U.S. crude oil inventories (vs expectations of -2.5 million bbls). Crude oil prices were also undercut by the +0.2% increase in U.S. oil production to 8.515 million bpd, the third straight weekly gain that now totals +1.0%.

GLOBAL EVENT CALENDAR 07/28/2016
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.
Friday, July 29
US0830 ETQ2 GDP expected +2.6% (q/q annualized), Q1 +1.1%. Q2 personal consumption expected +4.3%, Q1 +1.5%. Q2 GDP price index expected +1.9%, Q1 +0.4%. Q2 core PCE deflator expected +1.7% q/q, Q1 +2.0% q/q.
0830 ETQ2 employment cost index expected +0.6%, Q1 +0.6%.
0930 ETSan Francisco Fed President John Williams (non-voter) speaks at an event in Cambridge, Massachusetts titled Policy Dialogue: Whats Left in the Feds Toolkit.
0945 ETJul Chicago PMI expected -2.8 to 54.0, Jun +7.5 to 56.8.
1000 ETFinal-July University of Michigan U.S. consumer sentiment expected +0.7 to 90.2, prelim-Jul -4.0 to 89.5.
1300 ETDallas Fed President Robert Kaplan speaks at a moderated Q&A at the Independent Bankers Association of New Mexico annual meeting.
JPN0000 ETJapan Jun vehicle production, May +1.7% y/y.
0100 ETJapan Jun housing starts expected -2.9% y/y to 998,000 annualized, May +9.8% y/y to 1.017 million annualized.
0100 ETJapan Jun construction orders, May +34.5% y/y.
n/aBOJ announces interest rate decision.
GER0200 ETGerman Jun retail sales expected unch m/m and +1.6% y/y, May +0.7% m/m and +2.6% y/y.
UK0430 ETUK Jun net consumer credit expected +1.4 billion pounds, May +1.5 billion pounds.
0430 ETUK Jun M4 money supply, May +1.2% m/m and +1.8% y/y.
0430 ETUK Jun mortgage approvals expected 65,800, May 67,000.
EUR0500 ETEurozone Jul CPI estimate expected +0.1% y/y, Jun +0.1% y/y. Jul core CPI expected +0.9% y/y, Jun +0.9% y/y.
0500 ETEurozone Jun unemployment rate expected unch at 10.1%, May -0.1 to 10.1%.
0500 ETEurozone Q2 GDP expected +0.3% q/q and +1.5% y/y, Q1 +0.6% q/q and +1.7% y/y.
U.S. STOCK CALENDAR 07/28/2016
CompanyTickerTimeEvent DescriptionPeriodEstimate
Air Products & Chemicals IncAPDBef-mktQ3 2016 Earnings ReleaseQ3 20161.893
Automatic Data Processing IncADPBef-mktQ4 2016 Earnings ReleaseQ4 20160.669
Harley-Davidson IncHOGBef-mktQ2 2016 Earnings ReleaseQ2 20161.538
Helmerich & Payne IncHPBef-mktQ3 2016 Earnings ReleaseQ3 2016-0.458
International Paper CoIPBef-mktQ2 2016 Earnings ReleaseQ2 20160.841
Marsh & McLennan Cos IncMMCBef-mktQ2 2016 Earnings ReleaseQ2 20160.903
PG&E CorpPCGBef-mktQ2 2016 Earnings ReleaseQ2 20160.917
ConocoPhillipsCOPBef-mktQ2 2016 Earnings ReleaseQ2 2016-0.61
Praxair IncPXBef-mktQ2 2016 Earnings ReleaseQ2 20161.362
SCANA CorpSCGBef-mktQ2 2016 Earnings ReleaseQ2 20160.738
Thermo Fisher Scientific IncTMOBef-mktQ2 2016 Earnings ReleaseQ2 20162.009
Pentair PLCPNRBef-mktQ2 2016 Earnings ReleaseQ2 20161.098
Alexion Pharmaceuticals IncALXNBef-mktQ2 2016 Earnings ReleaseQ2 20161.174
National Oilwell Varco IncNOVBef-mktQ2 2016 Earnings ReleaseQ2 2016-0.328
L-3 Communications Holdings IncLLLBef-mktQ2 2016 Earnings ReleaseQ2 20161.692
Global Payments IncGPNBef-mktQ4 2016 Earnings ReleaseQ4 20160.73
LKQ CorpLKQBef-mktQ2 2016 Earnings ReleaseQ2 20160.481
Mead Johnson Nutrition CoMJNBef-mktQ2 2016 Earnings ReleaseQ2 20160.784
Marathon Petroleum CorpMPCBef-mktQ2 2016 Earnings ReleaseQ2 20160.966
Allegion PLCALLE6:15Q2 2016 Earnings ReleaseQ2 20160.904
Boston Scientific CorpBSX6:30Q2 2016 Earnings ReleaseQ2 20160.265
Fifth Third BancorpFITB6:30Q2 2016 Earnings ReleaseQ2 20160.377
Dow Chemical Co/TheDOW6:45Q2 2016 Earnings ReleaseQ2 20160.854
Colgate-Palmolive CoCL6:55Q2 2016 Earnings ReleaseQ2 20160.687
Invesco LtdIVZ6:55Q2 2016 Earnings ReleaseQ2 20160.539
American Electric Power Co IncAEP6:57Q2 2016 Earnings ReleaseQ2 20160.896
Bristol-Myers Squibb CoBMY6:59Q2 2016 Earnings ReleaseQ2 20160.663
CBRE Group IncCBG6:59Q2 2016 Earnings ReleaseQ2 20160.516
Baker Hughes IncBHI7:00Q2 2016 Earnings ReleaseQ2 2016-0.621
CMS Energy CorpCMS7:00Q2 2016 Earnings ReleaseQ2 20160.358
Ford Motor CoF7:00Q2 2016 Earnings ReleaseQ2 20160.6
Hershey Co/TheHSY7:00Q2 2016 Earnings ReleaseQ2 20160.778
American Tower CorpAMT7:00Q2 2016 Earnings ReleaseQ2 20161.315
CME Group IncCME7:00Q2 2016 Earnings ReleaseQ2 20161.108
S&P Global IncSPGI7:15Q2 2016 Earnings ReleaseQ2 20161.329
Sealed Air CorpSEE7:30Q2 2016 Earnings ReleaseQ2 20160.643
Zimmer Biomet Holdings IncZBH7:30Q2 2016 Earnings ReleaseQ2 20161.968
Baker Hughes IncBHI8:00Q2 2016 Earnings CallQ2 2016
Boston Scientific CorpBSX8:00Q2 2016 Earnings CallQ2 2016
Hershey Co/TheHSY8:00Q2 2016 Earnings CallQ2 2016
Owens-Illinois IncOI8:00Q2 2016 Earnings CallQ2 2016
Global Payments IncGPN8:00Q4 2016 Earnings CallQ4 2016
Zimmer Biomet Holdings IncZBH8:00Q2 2016 Earnings CallQ2 2016
CBRE Group IncCBG8:00Q2 2016 Earnings CallQ2 2016
MasterCard IncMA8:00Q2 2016 Earnings ReleaseQ2 20160.902
Automatic Data Processing IncADP8:30Q4 2016 Earnings CallQ4 2016
Franklin Resources IncBEN8:30Q3 2016 Earnings ReleaseQ3 20160.671
Franklin Resources IncBEN8:30Q3 2016 Earnings Call – Pre-RecordedC3 2016
Marsh & McLennan Cos IncMMC8:30Q2 2016 Earnings CallQ2 2016
S&P Global IncSPGI8:30Q2 2016 Earnings CallQ2 2016
Thermo Fisher Scientific IncTMO8:30Q2 2016 Earnings CallQ2 2016
American Tower CorpAMT8:30Q2 2016 Earnings CallQ2 2016
CME Group IncCME8:30Q2 2016 Earnings CallQ2 2016
HCA Holdings IncHCA8:30Q2 2016 Earnings ReleaseQ2 20161.559
Allegion PLCALLE8:30Q2 2016 Earnings CallQ2 2016
American Electric Power Co IncAEP9:00Q2 2016 Earnings CallQ2 2016
Dow Chemical Co/TheDOW9:00Q2 2016 Earnings CallQ2 2016
Ford Motor CoF9:00Q2 2016 Earnings CallC2 2016
Harley-Davidson IncHOG9:00Q2 2016 Earnings CallQ2 2016
Raytheon CoRTN9:00Q2 2016 Earnings ReleaseQ2 20161.697
Raytheon CoRTN9:00Q2 2016 Earnings CallQ2 2016
Unum GroupUNM9:00Q2 2016 Earnings CallQ2 2016
Celgene CorpCELG9:00Q2 2016 Earnings CallQ2 2016
Fifth Third BancorpFITB9:00Q2 2016 Earnings CallQ2 2016
Pentair PLCPNR9:00Q2 2016 Earnings CallQ2 2016
Invesco LtdIVZ9:00Q2 2016 Earnings CallQ2 2016
National Oilwell Varco IncNOV9:00Q2 2016 Earnings CallQ2 2016
Sealed Air CorpSEE9:00Q2 2016 Earnings CallQ2 2016
MasterCard IncMA9:00Q2 2016 Earnings CallQ2 2016
Marathon Petroleum CorpMPC9:00Q2 2016 Earnings CallQ2 2016
Brown-Forman CorpBF/B9:30Annual General MeetingY 2016
BorgWarner IncBWA9:30Q2 2016 Earnings CallQ2 2016
Mead Johnson Nutrition CoMJN9:30Q2 2016 Earnings CallQ2 2016
Air Products & Chemicals IncAPD10:00Q3 2016 Earnings CallQ3 2016
CMS Energy CorpCMS10:00Q2 2016 Earnings CallQ2 2016
International Paper CoIP10:00Q2 2016 Earnings CallQ2 2016
Kimco Realty CorpKIM10:00Q2 2016 Earnings CallQ2 2016
Alexion Pharmaceuticals IncALXN10:00Q2 2016 Earnings CallQ2 2016
Pioneer Natural Resources CoPXD10:00Q2 2016 Earnings CallQ2 2016
Marriott International Inc/MDMAR10:00Q2 2016 Earnings CallQ2 2016
LKQ CorpLKQ10:00Q2 2016 Earnings CallQ2 2016
HCA Holdings IncHCA10:00Q2 2016 Earnings CallQ2 2016
Bristol-Myers Squibb CoBMY10:30Q2 2016 Earnings CallQ2 2016
EQT CorpEQT10:30Q2 2016 Earnings CallQ2 2016
Colgate-Palmolive CoCL11:00Q2 2016 Earnings CallQ2 2016
Ford Motor CoF11:00Q2 2016 Earnings Call – Ford CreditQ2 2016
Franklin Resources IncBEN11:00Q3 2016 Earnings CallQ3 2016
Helmerich & Payne IncHP11:00Q3 2016 Earnings CallQ3 2016
PG&E CorpPCG11:00Q2 2016 Earnings CallQ2 2016
Praxair IncPX11:00Q2 2016 Earnings CallQ2 2016
Torchmark CorpTMK11:00Q2 2016 Earnings CallQ2 2016
O’Reilly Automotive IncORLY11:00Q2 2016 Earnings CallQ2 2016
L-3 Communications Holdings IncLLL11:00Q2 2016 Earnings CallQ2 2016
ConocoPhillipsCOP12:00Q2 2016 Earnings CallQ2 2016
Murphy Oil CorpMUR13:00Q2 2016 Earnings CallQ2 2016
Extra Space Storage IncEXR13:00Q2 2016 Earnings CallQ2 2016
Public StoragePSA14:00Q2 2016 Earnings CallQ2 2016
Realty Income CorpO14:30Q2 2016 Earnings CallQ2 2016
SCANA CorpSCG15:00Q2 2016 Earnings CallQ2 2016
Eversource EnergyES16:00Q2 2016 Earnings ReleaseQ2 20160.653
Amazon.com IncAMZN16:01Q2 2016 Earnings ReleaseQ2 20161.121
Leggett & Platt IncLEG16:05Q2 2016 Earnings ReleaseQ2 20160.633
Flowserve CorpFLS16:05Q2 2016 Earnings ReleaseQ2 20160.607
CBS CorpCBS16:05Q2 2016 Earnings ReleaseQ2 20160.861
VeriSign IncVRSN16:05Q2 2016 Earnings ReleaseQ2 20160.864
Aflac IncAFL16:15Q2 2016 Earnings ReleaseQ2 20161.683
Western Digital CorpWDC16:15Q4 2016 Earnings ReleaseQ4 20160.72
Principal Financial Group IncPFG16:15Q2 2016 Earnings ReleaseQ2 20161.056
Edison InternationalEIX16:30Q2 2016 Earnings CallQ2 2016
CBS CorpCBS16:30Q2 2016 Earnings CallQ2 2016
Hartford Financial Services Group Inc/TheHIG16:30Q2 2016 Earnings ReleaseQ2 20160.795
VeriSign IncVRSN16:30Q2 2016 Earnings CallQ2 2016
Wynn Resorts LtdWYNN16:30Q2 2016 Earnings CallQ2 2016
Expedia IncEXPE16:30Q2 2016 Earnings CallQ2 2016
Alphabet IncGOOGL16:30Q2 2016 Earnings CallQ2 2016
Western Digital CorpWDC17:00Q4 2016 Earnings CallQ4 2016
Electronic Arts IncEA17:00Annual General MeetingY 2016
Stericycle IncSRCL17:00Q2 2016 Earnings CallQ2 2016
Republic Services IncRSG17:00Q2 2016 Earnings CallQ2 2016
Arthur J Gallagher & CoAJGAft-mktQ2 2016 Earnings ReleaseQ2 20160.959
KLA-Tencor CorpKLACAft-mktQ4 2016 Earnings ReleaseQ4 20161.419
Essex Property Trust IncESSAft-mktQ2 2016 Earnings ReleaseQ2 20162.7
Apartment Investment & Management CoAIVAft-mktQ2 2016 Earnings ReleaseQ2 20160.569
FirstEnergy CorpFEAft-mktQ2 2016 Earnings ReleaseQ2 20160.542
Republic Services IncRSGAft-mktQ2 2016 Earnings ReleaseQ2 20160.55
Wynn Resorts LtdWYNNAft-mktQ2 2016 Earnings ReleaseQ2 20160.975
Digital Realty Trust IncDLRAft-mktQ2 2016 Earnings ReleaseQ2 20161.372
Expedia IncEXPEAft-mktQ2 2016 Earnings ReleaseQ2 20160.747
Alphabet IncGOOGLAft-mktQ2 2016 Earnings ReleaseQ2 20168.032
Amazon.com IncAMZN17:30Q2 2016 Earnings CallQ2 2016
Digital Realty Trust IncDLR17:30Q2 2016 Earnings CallQ2 2016
EQT CorpEQTQ2 2016 Earnings ReleaseQ2 2016-0.42
Edison InternationalEIXQ2 2016 Earnings ReleaseQ2 20160.973
Celgene CorpCELGQ2 2016 Earnings ReleaseQ2 20161.385
BorgWarner IncBWAQ2 2016 Earnings ReleaseQ2 20160.818
Eastman Chemical CoEMNQ2 2016 Earnings ReleaseQ2 20161.727
Stericycle IncSRCLQ2 2016 Earnings ReleaseQ2 20161.174


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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