Mon Aug 01 2016
Nikki Bailey (1073 articles)

US : Pre Market News – 01 Aug 2016



Sep E-mini S&Ps (ESU16 +0.10%) are up +0.06% at an all-time high. Gains in U.S. stock indexes were muted and European stocks are down -0.68% as banks stocks in Europe fell. Despite positive results on European bank stress tests, concerns over future bank profits are weighing on the sector with Barclays Plc down -2.0%, Deutsche Bank AG down -1.3% and UniCredit SpA down over -7%. Also weighing on stock prices is Chinese growth concerns after the China Jul manufacturing PMI unexpectedly contracted for the first time in 5 months. Asian stocks settled mixed: Japan +0.40%, Hong Kong +1.09%, China -0.87%, Taiwan +1.07%, Australia +0.45%, Singapore +0.83%, South Korea +0.93%, India -0.17%. The Shanghai Composite slid to a 4-week low after Chinese manufacturing activity unexpectedly contracted last month, while Japanese stocks closed higher on speculation Japanese Prime Minister Abe will unveil a 28 trillion yen ($ 273 billion) spending package on Tuesday.

The dollar index (DXY00 +0.20%) is up +0.19%. EUR/USD (^EURUSD) is down -0.10%. USD/JPY (^USDJPY) is up +0.19%.

Sep T-note prices (ZNU16 -0.15%) are down -6.5 ticks after New York Fed President Dudley said “it is premature to rule out further monetary policy tightening this year.”

New York Fed President Dudley said investors “appear to be too complacent” on interest rates” and “it is premature to rule out further monetary policy tightening this year.”

The Eurozone Jul Markit manufacturing PMI was revised upward to 52.0 from the originally reported 51.9.

The China Jul manufacturing PMI (National Bureau of Statistics) fell -0.1 to 50.0, weaker than expectations of no change at 50.0 and the first time manufacturing activity contracted in 5 months.


Key U.S. news today includes: (1) revised-Jul Markit manufacturing PMI (expected unrevised at 52.9, prelim-Jul +1.6 to 52.9), (2) Jul ISM manufacturing index (expected -0.2 to 53.0, Jun +1.9 to 53.2), (3) Jun construction spending (expected +0.7%, May -0.8% m/m), (4) UDA weekly grain export inspections, and (5) USDA Weekly Crop Progress.

There are 12 of the S&P 500 companies that report earnings today with notable reports including: General Growth Properties (consensus $ 0.36), Williams Cos (0.20), Loews (0.57), Vulcan Materials (1.01), Dun & Bradstreet (1.18), Alliant Energy (0.38).

U.S. IPO’s scheduled to price today: Gemphire Technologies (GEMP).

Equity conferences this week include: Wells Fargo Services Conference on Wed-Thu.


SolarCity (SCTY -0.67%) jumped over 7% in pre-market trading after Reuters reported that the company may merge with Tesla Motors as soon as today.

Cubic (CUB +0.20%) was upgraded to ‘Buy’ from ‘Hold’ at Needham & Co.

First Business Financial Services (FBIZ -3.15%) was downgraded to ‘Hold’ from ‘Buy’ at Sandler O’Neill.

GNC Holdings (GNC +0.64%) was downgraded to ‘Neutral’ from ‘Outperform’ at Wedbush.

Leggett & Platt (LEG -3.59%) was downgraded to ‘Market Perform’ from ‘Outperform’ at Raymond James.

Harley-Davidson (HOG +3.74%) was upgraded to ‘Outperform’ from ‘Market Perform’ at BMO Capital Markets.

Caesars Entertainment Group (CZR -1.99%) will sell its online casino games unit Playtika Ltd for $ 4.4 billion to an investor group led by Shanghai Giant Network Technology Co.

Apple (AAPL -0.12%) shares have “gotten too cheap” based on free cash flow and other metrics, according to Barron’s.

Publicis Groupe (PGPEF +1.01%) announced that Saatchi & Saatchi Chairman Kevin Roberts was placed on leave due to comments on gender equality.

Deutsche Bank (DB +1.43%) scored higher in bank stress tests released last Friday than in previous years.

Keycorp (KEY +0.43%) fell by -1.3% in after-hours trading on Friday after news that the First Niagra Financial Group.


Sep E-mini S&Ps (ESU16 +0.10%) this morning are up +1.25 points at a fresh all-time high. Friday’s closes: S&P 500 +0.16%, Dow Jones -0.13%, Nasdaq +0.14%. The S&P 500 on Friday closed slightly higher on deferred expectations for a Fed rate hike after the weak Q2 GDP report and the slightly weaker-than-expected final-July U.S. consumer sentiment index of +0.5 to 90.0 (vs expectations of +0.7 to 90.2). Stocks were undercut by the weaker-than-expected U.S. Q2 GDP report of +1.2% and the +1.1% upward rebound in Sep oil prices on Friday that provided a little relief for petroleum stocks.

Sep 10-year T-notes (ZNU16 -0.15%) this morning are down -6.5 ticks. Friday’s closes: TYU6 +15.5, FVU6 +10. Sep 10-year T-notes on Friday closed moderately higher on the much weaker-than-expected U.S. Q2 GDP report of +1.2% (versus expectations of +2.0%), which caused market participants to significantly defer expectations for the timing of the Fed’s next rate hike.

The dollar index (DXY00 +0.20%) is up +0.181 (+0.19%). EUR/USD (^EURUSD) is down -0.0011 (-0.10%). USD/JPY (^USDJPY) is up +0.19 (+0.19%). Friday’s closes: Dollar index -1.21 (-1.25%), EUR/USD +0.0096 (+0.86%), USD/JPY -3.24 (-3.08%). The dollar index on Friday closed sharply lower on deferred Fed rate-hike expectations after the much weaker-than-expected U.S. GDP report of +1.2%. In addition, the yen rallied sharply after the BOJ on Friday announced much weaker-than-expected new monetary policy stimulus measures.

Sep WTI crude oil (CLU16 -1.39%) this morning is down -54 cents (-1.30%) and Sep gasoline (RBU16 -0.61%) is down -0.0065 (-0.49%). Friday’s closes: CLU6 +0.46 (+1.12%), RBU6 +0.0183 (+1.41%). Sep crude oil and gasoline on Friday closed higher on the sharp drop in the dollar index and on pre-weekend short covering after the sharp decline seen over the past several weeks. However, bearish sentiment continued based on the world oil glut and the third straight rise in U.S. oil production.

Monday, Aug 1
US0945 ETRevised-Jul Markit manufacturing PMI expected unrevised at 52.9, prelim-Jul +1.6 to 52.9.
1000 ETJul ISM manufacturing index expected -0.2 to 53.0, Jun +1.9 to 53.2. Jul ISM new orders, Jun +1.3 to 57.0. Jul ISM employment, Jun +1.2 to 50.4. Jul ISM prices paid expected +0.5 to 61.0, Jun -3.0 to 60.5.
1000 ETJun construction spending expected +0.7%, May -0.8% m/m.
1100 ETUSDA weekly grain export inspections.
1600 ETUSDA Weekly Crop Progress.
Tuesday, Aug 2
US0615 ETDallas Fed President Robert Kaplan speaks on economic conditions and implications for monetary policy at an Official Monetary and Financial Institutions Forum City Lecture in Beijing, China.
0830 ETJun personal spending expected +0.3%, May +0.4%. Jun personal income expected +0.3%, May +0.2%.
0830 ETJun PCE deflator expected +0.2% m/m and +0.9% y/y, May +0.2% m/m and +0.9% y/y. Jun core PCE deflator expected +0.1% m/m and +1.6% y/y, May +0.2% m/m and +1.6% y/y.
0945 ETJul New York ISM, May 45.4.
n/aJul total vehicle sales expected 17.20 million, Jun 16.61 million. Jul domestic vehicle sales, Jun 12.76 million.
JPN0100 ETJapan Jul consumer confidence index, Jun +0.9 to 41.8.
UK0430 ETUK Jul Markit/CIPS construction PMI, Jun 46.0
1901 ETUK Jul BRC shop price index, Jun -2.0% y/y.
EUR0500 ETEurozone Jun PPI, May +0.6% m/m and -3.9% y/y.
U.S. STOCK CALENDAR 08/01/2016
CompanyTickerTimeEvent DescriptionPeriodEstimate
Loews CorpLBef-mktQ2 2016 Earnings ReleaseQ2 20160.573
Vulcan Materials CoVMCBef-mktQ2 2016 Earnings ReleaseQ2 20161.011
Macerich Co/TheMACBef-mktQ2 2016 Earnings ReleaseQ2 20160.984
Diamond Offshore Drilling IncDOBef-mktQ2 2016 Earnings ReleaseQ2 20160
Affiliated Managers Group IncAMG7:30Q2 2016 Earnings ReleaseQ2 20163.01
Affiliated Managers Group IncAMG8:00Q2 2016 Earnings CallQ2 2016
Diamond Offshore Drilling IncDO8:30Q2 2016 Earnings CallQ2 2016
Loews CorpL11:00Q2 2016 Earnings CallQ2 2016
Vulcan Materials CoVMC11:00Q2 2016 Earnings CallQ2 2016
Macerich Co/TheMAC14:00Q2 2016 Earnings CallQ2 2016
Frontier Communications CorpFTR16:00Q2 2016 Earnings ReleaseQ2 2016-0.018
Dun & Bradstreet Corp/TheDNB16:15Q2 2016 Earnings ReleaseQ2 20161.182
Frontier Communications CorpFTR16:30Q2 2016 Earnings CallQ2 2016
Vornado Realty TrustVNOAft-mktQ2 2016 Earnings ReleaseQ2 20161.273
Williams Cos Inc/TheWMBAft-mktQ2 2016 Earnings ReleaseQ2 20160.199
Alliant Energy CorpLNTAft-mktQ2 2016 Earnings ReleaseQ2 20160.38
General Growth Properties IncGGPAft-mktQ2 2016 Earnings ReleaseQ2 20160.356
Microchip Technology IncMCHPQ1 2017 Earnings ReleaseQ1 20170.749
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