US : Pre Market News – 02 Aug 2016
Tue Aug 02 2016
Nikki Bailey (596 articles)
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US : Pre Market News – 02 Aug 2016

NEW YORK :

PREMARKET WORLD NEWS

Sep E-mini S&Ps (ESU16 -0.23%) are down -0.15% and European stocks are down -1.45% at a 2-week low as weakness in European bank stocks leads the overall market lower. Commerzbank AG, Germany’s second-largest lender, is down 8% after it scrapped its profit target for this year and forecast a drop in earnings, while Italy’s UniCredit dropped over 5% after Il Messaggero reported that the bank may consider a capital increase of as much as 8 billion euros ($ 8.96 billion). Another negative for European stocks is concern that rising prices may keep the ECB from boosting stimulus measures after Eurozone Jun PPI rose a more-than-expected +0.7% m/m, the largest monthly increase in 3-3/4 years. Asian stocks settled mostly lower: Japan -1.47%, Hong Kong closed for holiday, China +0.61%, Taiwan -0.13%, Australia -0.84%, Singapore -1.24%, South Korea -0.74%, India -0.08%. Japanese stocks closed lower after USD/JPY dropped to a 3-week low when the Japanese government announced 4.6 trillion yen ($ 45 billion) in extra spending for the current fiscal year, much less than the 28 trillion-yen amount Japanese Prime Minister Abe had signaled in a speech last week. Australia’s 10-year bond yield fell to a record low 1.823% after the Reserve Bank of Australia (RBA) cut its benchmark rate by 25 bp to a record low 1.5% today.

The dollar index (DXY00 -0.29%) is down -0.30% at a week low. EUR/USD (^EURUSD) is up +0.26% at a 1-1/4 month high. USD/JPY (^USDJPY) is down -0.63% at a 3-week low.

Sep T-note prices (ZNU16 -0.34%) are down -14 ticks.

The RBA cut its benchmark rate by 25 bp to a record low 1.5% and RBA Governor Stevens said that “recent data confirm that inflation remains quite low and given very subdued growth in labor costs and very low cost pressures elsewhere in the world, this is expected to remain the case for some time.”

The Eurozone Jun PPI of +0.7% m/m and -3.1% y/y was stronger than expectations of +0.4% m/m and -3.4% y/y with the +0.7% m/m gain the largest monthly increase in 3-3/4 years.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Dallas 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, (2) Jun personal spending (expected +0.3%, May +0.4%) and Jun personal income (expected +0.3%, May +0.2%), (3) Jun PCE deflator (expected +0.2% m/m and +0.9% y/y, May +0.2% m/m and +0.9% y/y) and Jun core PCE deflator (expected +0.1% m/m and +1.6% y/y, May +0.2% m/m and +1.6% y/y), (4) Jul New York ISM (May 45.4), (5) Jul total vehicle sales (expected 17.30 million, Jun 16.61 million).

There are 40 of the S&P 500 companies that report earnings today with notable reports including: Procter & Gamble (consensus $ 0.75), Emerson Electric (0.84), Royal Caribbean Cruises (1.02), Martin Marietta Materials (2.02), Seagate Technology (0.60), Aetna (2.12), Harris Corp (1.05), Pfizer (0.62), CVS Health (1.30), ADM (0.45), Cummins (2.16), Devon Energy (-0.20), Electronic Arts (-0.02), Verisk Analytics (0.76).

U.S. IPO’s scheduled to price today: none.

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

PREMARKET U.S. STOCKS

Buffalo Wild Wings (BWLD +1.21%) was downgraded to ‘Hold’ from ‘Buy’ at Maxim Group.

Frontier Communications (FTR -2.31%) slid over 3% in pre-market trading after it reported Q2 adjusted Ebitda of $ 1.03 billion, less than consensus of $ 1.05 billion.

Charter Communications (CHTR +0.48%) was rated a new ‘Buy’ at Bank of America/Merrill Lynch with a price target of $ 300.

Williams Cos. (WMB -6.01%) rallied over 4% in after-hours trading after the company cut its dividend to 20 cents a share from 64 cents and said it will reinvest $ 1.7 billion into Williams Partners through 2017 with the cash saved from the lower dividends.

Texas Roadhouse (TXRH +1.02%) dropped over 5% in after-hours trading after it reported Q2 franchise comps of +2.6%, below consensus of +3.7%.

FormFactor (FORM +0.53%) was upgraded to ‘Buy’ from ‘Hold’ at Stifel with a 12-month target price of $ 13.

Tenet Healthcare (THC -5.55%) lost over 2% in after-hours trading after it reported Q2 adjusted EPS of 38 cents, weaker than consensus of 51 cents.

Chegg (CHGG +2.78%) climbed nearly 4% in after-hours trading after it reported Q2 adjusted EPS of 5 cents, better than consensus of 3 cents.

Trex Co. (TREX +0.82%) gained nearly 3% in after-hours trading after it reported Q2 EPS of 79 cents, higher than consensus of 71 cents.

Atwood Oceanics (ATW -3.65%) rose 3% in after-hours trading after it reported Q3 revenue of $ 227.8 million, above consensus of $ 225.2 million.

T2 Biosystems (TTOO +24.38%) slumped 9% in after-hours trading after it reported an Q2 EPS loss of -58 cents, wider than consensus of -56 cents

Amkor Technology (AMKR +2.54%) jumped 11% in after-hours trading after it reported an unexpected Q2 EPS profit of 2 cents, better than consensus for an -8 cent loss, and said it sees Q3 sales of $ 1.01 billion-$ 1.09 billion, higher than consensus of $ 936 million.

Cognex (CGNX +0.33%) surged 15% in after-hours trading after it reported Q2 EPS continuing operations of 50 cents, higher than consensus of 44 cents, and then said it sees Q3 revenue of $ 142 million-$ 147 million, above consensus of $ 127.6 million.

MARKET COMMENTS

Sep E-mini S&Ps (ESU16 -0.23%) this morning are down -3.25 points (-0.15%). Monday’s closes: S&P 500 -0.13%, Dow Jones -0.15%, Nasdaq +0.55%. The S&P 500 on Monday retreated from a new all-time high and closed lower on the -0.6 point decline in the U.S. Jul ISM manufacturing index to 52.6 (weaker than expectations of -0.2 to 53.0) and on the sell-off in energy producers caused by the -3.7% drop in crude oil prices to a new 3-1/2 month low.

Sep 10-year T-notes (ZNU16 -0.34%) this morning are down -14 ticks. Monday’s closes: TYU6 -8.00, FVU6 -2.50. Sep T-notes on Monday closed lower on hawkish comments from New York Fed President Dudley who said investors “appear to be too complacent” on interest rates” and “it is premature” to rule out Fed rate hikes this year.

The dollar index (DXY00 -0.29%) is down -0.285 (-0.30%) at a 4-week low. EUR/USD (^EURUSD) is up +0.0029 (+0.26%) at a 1-1/4 month high. USD/JPY (^USDJPY) is down -0.64 (-0.63%) at a 3-week low. Monday’s closes: Dollar index +0.183 (+0.195%), EUR/USD -0.0011 (-0.10%), USD/JPY +0.33 (+0.32%). The dollar index on Monday closed higher on hawkish comments from New York Fed President Dudley who said “it is premature to rule out further monetary policy tightening this year.” USD/JPY saw strength ahead of expectations that Japanese Prime Minister Abe on Tuesday will unveil the details of his 28 trillion-yen ($ 273 billion) fiscal stimulus package.

Sep WTI crude oil (CLU16 +1.45%) this morning is up +50 cents (+1.25%) and Sep gasoline (RBU16 +1.69%) is up +0.0227 (+1.74%). Monday’s closes: CLU6 -1.54 (-3.70%), RBU6 -0.0158 (-1.20%). Sep crude oil and gasoline on Monday closed lower with Sep crude at a 3-1/2 month low on the stronger dollar and on global energy demand concerns after the U.S. Jul ISM manufacturing PMI and the China Jul manufacturing PMI were both weaker-than-expected. There was also negative carryover from last Friday’s Baker Hughes report that U.S. active oil rigs increased for a fifth straight week.

 

GLOBAL EVENT CALENDAR 08/02/2016
Tuesday, Aug 2
US 0615 ET Dallas 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 ET Jun personal spending expected +0.3%, May +0.4%. Jun personal income expected +0.3%, May +0.2%.
0830 ET Jun 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 ET Jul New York ISM, May 45.4.
n/a Jul total vehicle sales expected 17.30 million, Jun 16.61 million. Jul domestic vehicle sales expected 13.06 million, Jun 12.76 million.
Wednesday, Aug 3
US 0700 ET Weekly MBA mortgage applications.
0815 ET Jul ADP employment change expected +170,000, Jun +172,000.
0830 ET Treasury announces amount of 3-year T-notes (previous $ 24 billion), 10-year T-notes (previous $ 20 billion) and 30-year T-bonds (previous $ 12 billion) to be auctioned Aug 9-11 in the Aug quarterly refunding.
0945 ET Revised Jul Markit services PMI expected +0.1 to 51.0; prelim-Jul -0.5 to 50.9. Revised Jul Markit composite PMI, prelim-Jul +0.3 to 51.5.
1000 ET Jul ISM non-manufacturing PMI expected -0.6 to 55.9, Jun +0.6 to 56.5.
1030 ET EIA Weekly Petroleum Status Report.
GER 0355 ET Revised German Jul Markit services PMI, prelim-Jul +0.9 to 54.6.
EUR 0400 ET Revised Eurozone Jul Markit composite PMI, prelim-Jul -0.2 to 52.9.
0500 ET Eurozone Jun retail sales expected unch m/m and +1.8% y/y, May +0.4% m/m and +1.6% y/y.
U.S. STOCK CALENDAR 08/02/2016
Company Ticker Time Event Description Period Estimate
Emerson Electric Co EMR US Bef-mkt Q3 2016 Earnings Release Q3 2016 0.843
NiSource Inc NI US Bef-mkt Q2 2016 Earnings Release Q2 2016 0.072
Pinnacle West Capital Corp PNW US Bef-mkt Q2 2016 Earnings Release Q2 2016 1.135
Expeditors International of Washington Inc EXPD US Bef-mkt Q2 2016 Earnings Release Q2 2016 0.589
Welltower Inc HCN US Bef-mkt Q2 2016 Earnings Release Q2 2016 1.14
Royal Caribbean Cruises Ltd RCL US Bef-mkt Q2 2016 Earnings Release Q2 2016 1.021
Martin Marietta Materials Inc MLM US Bef-mkt Q2 2016 Earnings Release Q2 2016 2.017
Seagate Technology PLC STX US Bef-mkt Q4 2016 Earnings Release Q4 2016 0.604
Teradata Corp TDC US Bef-mkt Q2 2016 Earnings Release Q2 2016 0.596
Mallinckrodt PLC MNK US Bef-mkt Q3 2016 Earnings Release Q3 2016 2.011
Aetna Inc AET US 6:00 Q2 2016 Earnings Release Q2 2016 2.118
Eaton Corp PLC ETN US 6:30 Q2 2016 Earnings Release Q2 2016 1.069
Entergy Corp ETR US 6:30 Q2 2016 Earnings Release Q2 2016 1.049
Harris Corp HRS US 6:30 Q4 2016 Earnings Release Q4 2016 1.438
Pfizer Inc PFE US 6:45 Q2 2016 Earnings Release Q2 2016 0.624
Molson Coors Brewing Co TAP US 6:45 Q2 2016 Earnings Release Q2 2016 1.094
AmerisourceBergen Corp ABC US 6:45 Q3 2016 Earnings Release Q3 2016 1.268
CVS Health Corp CVS US 6:50 Q2 2016 Earnings Release Q2 2016 1.303
Xylem Inc/NY XYL US 6:55 Q2 2016 Earnings Release Q2 2016 0.474
Archer-Daniels-Midland Co ADM US 7:00 Q2 2016 Earnings Release Q2 2016 0.448
Pitney Bowes Inc PBI US 7:00 Q2 2016 Earnings Release Q2 2016 0.39
Procter & Gamble Co/The PG US 7:00 Q4 2016 Earnings Release Q4 2016 0.745
Cardinal Health Inc CAH US 7:00 Q4 2016 Earnings Release Q4 2016 1.13
Mosaic Co/The MOS US 7:00 Q2 2016 Earnings Release Q2 2016 0.117
Discovery Communications Inc DISCA US 7:00 Q2 2016 Earnings Release Q2 2016 0.567
Cummins Inc CMI US 7:30 Q2 2016 Earnings Release Q2 2016 2.164
Pitney Bowes Inc PBI US 8:00 Q2 2016 Earnings Call Q2 2016
Cardinal Health Inc CAH US 8:00 Q4 2016 Earnings Call Q4 2016
Dun & Bradstreet Corp/The DNB US 8:00 Q2 2016 Earnings Call Q2 2016
Ecolab Inc ECL US 8:30 Q2 2016 Earnings Release Q2 2016 1.078
Harris Corp HRS US 8:30 Q4 2016 Earnings Call Q4 2016
CVS Health Corp CVS US 8:30 Q2 2016 Earnings Call Q2 2016
Procter & Gamble Co/The PG US 8:30 Q4 2016 Earnings Call Q4 2016
Aetna Inc AET US 8:30 Q2 2016 Earnings Call Q2 2016
Teradata Corp TDC US 8:30 Q2 2016 Earnings Call Q2 2016
Discovery Communications Inc DISCA US 8:30 Q2 2016 Earnings Call Q2 2016
Mallinckrodt PLC MNK US 8:30 Q3 2016 Earnings Call Q3 2016
Archer-Daniels-Midland Co ADM US 9:00 Q2 2016 Earnings Call Q2 2016
NiSource Inc NI US 9:00 Q2 2016 Earnings Call Q2 2016
General Growth Properties Inc GGP US 9:00 Q2 2016 Earnings Call Q2 2016
Seagate Technology PLC STX US 9:00 Q4 2016 Earnings Call Q4 2016
Mosaic Co/The MOS US 9:00 Q2 2016 Earnings Call Q2 2016
Xylem Inc/NY XYL US 9:00 Q2 2016 Earnings Call Q2 2016
Ford Motor Co F US 9:15 July 2016 Sales and Revenue Release
Williams Cos Inc/The WMB US 9:30 Q2 2016 Earnings Call Q2 2016
Cummins Inc CMI US 10:00 Q2 2016 Earnings Call Q2 2016
Eaton Corp PLC ETN US 10:00 Q2 2016 Earnings Call Q2 2016
Equifax Inc EFX US 10:00 Business Update Call
Ford Motor Co F US 10:00 July 2016 Sales and Revenue Call
Pfizer Inc PFE US 10:00 Q2 2016 Earnings Call Q2 2016
Vornado Realty Trust VNO US 10:00 Q2 2016 Earnings Call Q2 2016
Alliant Energy Corp LNT US 10:00 Q2 2016 Earnings Call Q2 2016
Welltower Inc HCN US 10:00 Q2 2016 Earnings Call Q2 2016
Royal Caribbean Cruises Ltd RCL US 10:00 Q2 2016 Earnings Call Q2 2016
Entergy Corp ETR US 11:00 Q2 2016 Earnings Call Q2 2016
Molson Coors Brewing Co TAP US 11:00 Q2 2016 Earnings Call Q2 2016
AmerisourceBergen Corp ABC US 11:00 Q3 2016 Earnings Call Q3 2016
American International Group Inc AIG US Aft-mkt Q2 2016 Earnings Release Q2 2016 0.922
FMC Corp FMC US Aft-mkt Q2 2016 Earnings Release Q2 2016 0.68
ONEOK Inc OKE US Aft-mkt Q2 2016 Earnings Release Q2 2016 0.437
Cerner Corp CERN US Aft-mkt Q2 2016 Earnings Release Q2 2016 0.571
Electronic Arts Inc EA US Aft-mkt Q1 2017 Earnings Release Q1 2017 -0.023
Fiserv Inc FISV US Aft-mkt Q2 2016 Earnings Release Q2 2016 1.074
Newfield Exploration Co NFX US Aft-mkt Q2 2016 Earnings Release Q2 2016 0.157
Hanesbrands Inc HBI US Aft-mkt Q2 2016 Earnings Release Q2 2016 0.524
Concho Resources Inc CXO US Aft-mkt Q2 2016 Earnings Release Q2 2016 0.053
Verisk Analytics Inc VRSK US Aft-mkt Q2 2016 Earnings Release Q2 2016 0.762
Fortive Corp FTV US Aft-mkt Q2 2016 Earnings Release Q2 2016 0.613
Alaska Air Group Inc ALK US July 2016 Sales and Revenue Release – Traffic Results 2016
Delta Air Lines Inc DAL US July 2016 Sales and Revenue Release – Traffic Results 2016
General Motors Co GM US July 2016 Sales and Revenue Release 2016

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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

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