US : Pre Market News – 10 Aug 2016

Sep E-mini S&Ps (ESU16 +0.13%) are up +0.09% on expectations the Fed will be slow to raise interest rates, while European stocks fell back from a 1-1/2 month high and are down -0.34% as energy producers declined. A -0.84% drop in crude oil prices (CLU16 -0.49%) has undercut energy producing stocks after Saudi Arabia was said to have pumped a record 10.67 million bpd of crude in July. Also, API data late yesterday showed U.S. oil inventories rose by +2.09 million bbl last week. The yield on the UK 10-year Gilt fell to a record low 0.523% after the BOE couldn’t find enough of long-dated government bonds to buy as part of its asset purchase program and said the bonds if couldn’t buy during Tuesday’s operation would be acquired sometime during the second half of its 6-month QE program. Asian stocks settled mostly lower: Japan -0.18%, Hong Kong +0.12%, China -0.23%, Taiwan +0.50%, Australia -0.16%, Singapore +0.17%, South Korea -0.16%, India -1.10%.

The dollar index (DXY00 -0.70%) is down -0.58%. EUR/USD (^EURUSD) is up +0.56%. USD/JPY (^USDJPY) is down -0.64%.

Sep T-note prices (ZNU16 +0.04%) are up +1.5 ticks.

Japan Jul PPI of unch m/m and -3.9% y/y was stronger than expectations of -0.1% m/m and -4.0% y/y.

Key U.S. news today includes: (1) weekly MBA mortgage applications (previous -3.5% with purchase sub-index -2.4% and refi sub-index -4.2%), (2) Jun JOLTS job openings (expected +88,000 to 5.500 million, May -345,000 to 5.500 million), (3) Treasury’s auction of $ 23 billion of 10-year T-notes, (4) Jul monthly budget statement (expected -$ 124.0 billion, Jun +$ 6.252 billion), and (5) EIA Weekly Petroleum Status Report.

There are 4 of the S&P 500 companies that report earnings today: Ralph Lauren (consensus $ 0.89), Perrigo (1.98), Michael Kors (0.74), CSRA (0.47).

U.S. IPO’s scheduled to price today: Medpace Holdings (MEDP), Protagonist Therapeutics (PTGX).

Equity conferences during the remainder of this week include: J.P. Morgan Auto Conference on Tue-Wed, Oppenheimer Technology, Internet & Communications Conference on Tue-Wed, Jefferies Industrials Conference on Tue-Thu, Canaccord Genuity Growth Conference on Wed-Thu, Jefferies Financial Services Conference on Wed-Thu, Goldman Sachs Power, Utilities, MLP, and Pipeline Conference on Thu.

Yelp (YELP +3.03%) jumped 12% in pre-market trading after it reported a surprise Q2 EPS profit of 1 cent, much better than consensus of a -7 cent loss, and then raised its full-year revenue estimate to $ 700 million-$ 708 million from a prior view of $ 690 million-$ 702 million.

Michael Kors Holdings Ltd. (KORS -0.32%) slipped nearly 3% in pre-market trading after it reported Q1 adjusted EPS of 88 cents, better than consensus of 74 cents, but said it sees Q2 adjusted EPS of 84 cents-88 cents, below consensus of $ 1.03.

Disney (DIS +0.96%) fell over 1% in pre-market trading after it reported Q3 adjusted EPS of $ 1.62, above consensus of $ 1.61, but said its Q3 free cash flow was $ 33 million, well below consensus of $ 2.0 billion, after it bought a minority stake in BAMtech for $ 1 billion.

WhiteWave Foods (WWAV +0.29%) was downgraded to ‘Neutral’ from ‘Buy’ at DA Davidson.

Cinemark Holdings (CNK -0.82%) was downgraded to ‘Hold’ from ‘Buy’ at Drexel Hamilton LLC.

Buffalo Wild Wings (BWLD +0.53%) was downgraded to ‘Market Perform’ from ‘Outperform’ at Raymond James.

Fossil Group (FOSL -1.24%) gained over 2% in after-hours trading after it reported Q2 EPS of 12 cents, higher than consensus of 9 cents.

Cliffs Natural Resources (CLF -4.58%) dropped 3% in after-hours trading after it announced a $ 300 million secondary offering.

Mylan NV (MYL +2.86%) lost nearly 2% in after-hours trading after it reported Q2 adjusted EPS of $ 1.16, higher than consensus of $ 1.14, but Q2 revenue of $ 2.56 billion was weaker than consensus of $ 2.57 billion.

SunPower (SPWR -3.40%) plunged over 22% in pre-market trading after it abandoned plans to at least break even this year, citing challenging conditions in its power-plant business. SPWR now sees a 2016 net loss of $ 125 million-$ 175 million, well below a May forecast of break-even or a profit of as much as $ 50 million.

Myriad Genetics (MYGN -1.77%) sank over 20% in after-hours trading after it reported Q4 adjusted EPS of 36 cents, weaker than consensus of 38 cents, and said it sees 2017 adjusted EPS of $ 1.00-$ 1.10, well below consensus of $ 1.79.

Halozyme Therapeutics (HALO +3.07%) rose over 6% in after-hours trading after it reported a Q2 loss of -21 cents a share. a smaller loss than consensus of -29 cents.

DHT Holdings (DHT -1.44%) rallied almost 5% in after-hours trading after it reported Q2 EPS of 34 cents, better than consensus of 30 cents.

Clean Energy Fuels (CLNE +1.75%) surged 15% in after-hours trading after it reported an unexpected Q2 adjusted EPS profit of 3 cents, much better than consensus of a -14 cent loss.

Sep E-mini S&Ps (ESU16 +0.13%) this morning are up +2.00 points (+0.09%). Tuesday’s closes: S&P 500 +0.04%, Dow Jones +0.02%, Nasdaq +0.23%. The S&P 500 on Tuesday rose to a fresh all-time high and closed higher on carry-over support from a rally in European stocks on expectations for more central bank stimulus after BOE policy maker McCafferty said that “more easing is likely to be required.” Stocks were undercut by the unexpected -0.5% drop in U.S. Q2 non-farm productivity, weaker than expectations of +0.4% and the third straight quarter that productivity has declined.

Sep 10-year T-notes (ZNU16 +0.04%) this morning are up +1.5 ticks. Tuesday’s closes: TYU6 +9.50, FVU6 +4.50. Sep T-notes on Tuesday closed higher on carry-over support from a rally in UK 10-year gilts to a record high after BOE policy maker McCafferty said that “more easing is likely to be required” in response to the fallout from Brexit. There was also solid demand for the Treasury’s $ 24 billion 3-year T-note auction that had a 2.98 bid-to-cover ratio, higher than the 12-auction average of 2.93 and the highest in 8 months.

The dollar index (DXY00 -0.70%) this morning is down -0.555 (-0.58%). EUR/USD (^EURUSD) is up +0.0061 (+0.55%). USD/JPY (^USDJPY) is down -0.65 (-0.64%). Tuesday’s closes: Dollar index -0.218 (-0.23%), EUR/USD +0.0029 (+0.26%), USD/JPY -0.57 (-0.56%). The dollar index on Tuesday closed lower on the unexpected decline in U.S. Q2 non-farm productivity and the Atlanta Fed GDPNow’s cut in its U.S. Q3 GDP estimate to 3.7% from 3.8%.

Sep WTI crude oil (CLU16 -0.49%) this morning is down -36 cents (-0.84%) and Sep gasoline (RBU16 +1.14%) is up +0.0127 (+0.94%). Tuesday’s closes: CLU6 -0.25 (-0.58%), RBU6 -0.0138 (-1.01%). Sep crude oil and gasoline on Tuesday closed lower as Sep crude retreated from a 2-week high. Crude oil was undercut by the EIA’s hike in its U.S. 2017 crude oil production forecast to 8.31 million bpd from a Jul estimate of 8.2 million bpd. Crude oil received a boost from a weaker dollar and expectations for Wednesday’s weekly EIA crude inventories to decline -1.5 million bbl.