US : Pre Market News – 16 Aug 2016
NEW YORK :
Sep E-mini S&Ps (ESU16 -0.13%) are down -0.11% and European stocks are down -0.73% on profit taking from the recent rally. The S&P 500 on Monday had climbed to a record high and the Euro Stoxx 50 rose to a 2-1/2 month high on optimism over the economic outlook. A rally in EUR/USD to a 7-week high has undercut European exporters, such as automakers, while European stocks were also pressured after the German ZEW investor confidence rose less than expected. Stock losses were contained as energy producing companies gained with the price of crude oil up +0.55% at a 4-week high. Asian stocks settled lower: Japan -1.62%, Hong Kong -0.09%, China -0.49%, Taiwan -0.42%, Australia -0.14%, Singapore -0.29%, South Korea -0.01%, India -0.31%. China’s Shanghai Composite retreated from a 7-month high and closed lower on long liquidation and Japan’s Nikkei Stock Index closed lower as exporter stocks sold-off after USD/JPY tumbled to a 7-week low.
The dollar index (DXY00 -1.02%) is down -0.91% at a 7-week low as the prospects for a Fed rate hike this year remains subdued. EUR/USD (^EURUSD) is up +0.85% at a 7-week high. USD/JPY (^USDJPY) is down -1.22% at a 7-week low.
Sep T-note prices (ZNU16 +0.15%) are up +7.5 ticks.
The German Aug ZEW survey expectations of economic growth rose +7.3 to 0.5, weaker than expectations of +8.8 to 2.0.
Key U.S. news today includes: (1) Jul housing starts (expected -1.1% to 1.176 million, Jun +4.8% to 1.189 million) and Jul building permits (expected +0.6% to 1.160 million, Jun +1.5% to 1.153 million), (2) Jul CPI (expected unch m/m and +0.9% y/y, Jun +0.2% m/m and +1.0% y/y) and Jul CPI ex food & energy (expected +0.2% m/m and +2.3% y/y, Jun +0.2% m/m and +2.3% y/y), (3) Jul industrial production (expected +0.3%, Jun +0.6%), (4) Jul manufacturing production (expected +0.3%, Jun +0.4%), (5) Jul capacity utilization (expected +0.2 to 75.6%, Jun +0.5 to 75.4%), (6) Atlanta Fed President Dennis Lockhart (non-voter) speaks to the Rotary Club of Knoxville, TN.
S&P 500 companies that report earnings today: Home Depot (consensus $ 1.97), Advance Auto Parts expected $ 2.11, TJ Cos. expected 81 cents, Urban Outfitters expected 55 cents.
U.S. IPO’s scheduled to price today: none.
Equity conferences this week: Nomura Media, Telecom & Internet Conference on Tue, EnerCom The Oil & Gas Conference on Tue, Wedbush PacGrow Health Care Conference on Tue-Wed, Barclays California MedTools Summit on Wed, Barclays Kohler Utility Mini-Conference on Thu.
JPMorgan Chase (JPM +0.61%) was downgraded to ‘Market Perform’ from ‘Outperform’ at Bernstein.
PG&E (PCG -1.04%) slid 1% in after-hours trading after it started a 4.9 million-share offering.
Vipshop Holdings Ltd (VIPS +3.16%) gained 3% in after-hours trading after it reported Q2 net revenue of $ 2.02 billion, higher than consensus of $ 1.9 billion.
Praxair PX jumped nearly 7% in European trading after people familiar with the matter said the company has held talks on a possible merger with Linde AG.
Concho Resources (CXO +2.03%) fell nearly 2% in after-hours trading after it began an offering of 9.0 million shares to finance part of its purchase of land acquired in the Midland Basin from Reliance Energy.
Fabrinet (FN +4.21%) rallied over 4% in after-hours trading after it reported Q4 revenue of $ 276.4 million, above consensus of $ 262.8 million, and said it sees Q1 adjusted EPS of 70 cents-72 cents, higher than consensus of 60 cents.
Aratana Therapeutics (PETX -0.84%) rose 4% in after-hours trading after it said the U.S. FDA approved its Nocita as a local post-operative analgesia for cranial cruciate ligament surgery in dogs.
Shopify (SHOP -0.76%) lost 3% in after-hours trading after it said it will offer 7.5 million Class A subordinate voting shares.
Imprimis Pharmaceuticals (IMMY +0.78%) climbed over 2% in after-hours trading after it reported Q2 revenue of $ 4.91 million, above $ 4.38 million from Q1 and $ 1.97 million y/y.
Golub Capital BDC (GBDC +0.97%) fell nearly 3% in after-hours trading after it set a 1.75 million share secondary offering via Wells Fargo.
Hain Celestial Group (HAIN -3.52%) plunged 24% in pre-market trading after it said it will delay its Q4 and fiscal 2016 financial results as it evaluates whether revenue tied to concessions granted to certain U.S. distributors was accounted for in the correct period.
Asterias Biotherapeutics (AST +3.00%) jumped 9% in after-hours trading after it said it will expand the “SCiSTAR” study with two additional cohorts of 5-8 patients each with sensory incomplete injuries.
Sep E-mini S&Ps (ESU16 -0.13%) this morning are down -2.50 points (-0.11%). Monday’s closes: S&P 500 +0.28%, Dow Jones +0.32%, Nasdaq +0.42%. The S&P 500 on Monday rallied to a fresh record high and closed higher due to strength in energy producing stocks as the price of crude oil rose +2.81% to a 3-week high and increased M&A activity after Mid-America Apartment Communities agreed to buy Post Properties for $ 3.9 billion and Xylem agreed to purchase Sensus for about $ 1.7 billion. A negative factor for stocks was the unexpected -4.76 point decline in the U.S. Aug Empire manufacturing survey to -4.21, weaker than expectations of +1.45 to 2.00.
Sep 10-year T-notes (ZNU16 +0.15%) this morning are up +7.5 ticks. Monday’s closes: TYU6 -9.00, FVU6 -4.75. Sep T-notes on Monday closed lower on reduced safe-haven demand after the S&P 500 rallied to a new all-time high and after crude oil prices rose to a 3-week high, which boosted inflation expectations.
The dollar index (DXY00 -1.02%) this morning down -0.874 (-0.91%) at a 7-week low. EUR/USD (^EURUSD) is up +0.0095 (+0.85%) at a 7-week high. USD/JPY (^USDJPY) is down -1.24 (-1.22%) at a 7-week low. Monday’s closes: Dollar index -0.093 (-0.10%), EUR/USD +0.0022 (+0.20%), USD/JPY -0.04 (-0.04%). The dollar index on Monday closed lower on a the weaker-than-expected U.S. Aug Empire manufacturing index, which bolsters the case for the Fed to refrain from raising interest rates, and after EUR/USD rallied when the Bundesbank said in its monthly report that it expects solid German Q3 economic growth.
Sep WTI crude oil (CLU16 +0.42%) this morning is up +25 cents (+0.55%) at a 4-week high and Sep gasoline (RBU16 +0.84%) is up +0.0133 (+0.95%) at a 4-week high. Monday’s closes: CLU6 +1.25 (+2.81%), RBU6 +0.0260 (+1.90%). Sep crude oil and gasoline on Monday closed higher with Sep crude at a 3-week high due to a a weaker dollar and comments from Russian Energy Minister Novak who said that Russia is open to cooperation with OPEC to help stabilize the oil market. Another supportive factor for crude prices was the rally in the S&P 500 to a new record high, which bolsters confidence in the economic outlook and energy demand.
| Tuesday, Aug 16 | ||
| US | 0830 ET | Jul housing starts expected -1.1% to 1.176 million, Jun +4.8% to 1.189 million. Jul building permits expected +0.6% to 1.160 million, Jun +1.5% to 1.153 million. |
| 0830 ET | Jul CPI expected unch m/m and +0.9% y/y, Jun +0.2% m/m and +1.0% y/y. Jul CPI ex food & energy expected +0.2% m/m and +2.3% y/y, Jun +0.2% m/m and +2.3% y/y. | |
| 0915 ET | Jul industrial production expected +0.3%, Jun +0.6%. Jul manufacturing production expected +0.3%, Jun +0.4%. Jul capacity utilization expected +0.2 to 75.6%, Jun +0.5 to 75.4%. | |
| 1230 ET | Atlanta Fed President Dennis Lockhart (non-voter) speaks to the Rotary Club of Knoxville, TN. | |
| UK | 0430 ET | UK Jul CPI expected -0.1% m/m and +0.5% y/y, Jun +0.2% m/m and +0.5% y/y. Jul core CPI expected +1.4% y/y, Jun +1.4% y/y. |
| 0430 ET | UK Jul RPI expected -0.1% m/m and +1.7% y/y, Jun +0.4% m/m and +1.6% y/y. Jul RPI ex-mortgage interest payments expected +1.7% y/y, Jun +1.7% y/y. | |
| 0430 ET | UK Jul PPI input prices expected +1.0% m/m and +2.0% y/y, Jun +1.8% m/m and -0.5% y/y. | |
| 0430 ET | UK Jul PPI output prices expected +0.2% m/m and unch y/y, Jun +0.2% m/m and -0.4% y/y. Jul PPI output core expected +0.1% m/m and +0.8% y/y, Jun +0.1% m/m and +0.7% y/y. | |
| GER | 0500 ET | German Aug ZEW survey expectations of economic growth expected +8.8 to 2.0, Jul -26.0 to -6.8. Aug ZEW current situation expected +0.4 to 50.2, Jul -4.7 to 49.8. |
| Wednesday, Aug 17 | ||
| US | 0700 ET | Weekly MBA mortgage applications, previous +7.1% with purchase sub-index +2.6% and refi sub-index +9.6%. |
| 1030 ET | EIA Weekly Petroleum Status Report. | |
| 1300 ET | St. Louis Fed President James Bullard (voter) speaks on the U.S. economy and monetary policy at a wealth and asset management research conference. | |
| 1400 ET | Minutes of the Jul 26-27 FOMC meeting. | |
| UK | 0430 ET | UK Jul jobless claims change expected +9,000, Jun +400. Jul claimant count rate expected unch at 2.2%. |
| 0430 ET | UK Jun avg weekly earnings expected +2.4% 3-mo avg y/y, May +2.3% 3-mo avg/y/y. Jun weekly earnings ex-bonus expected +2.3% 3-mo avg/y/y, May +2.2% 3-mo avg/y/y. | |
| 0430 ET | UK ILO unemployment rate expected unch at 4.9% for the 3 months through Jun, previous -0.1 to 4.9% for the 3 months through May. | |
| JPN | 1950 ET | Japan Jul trade balance expected +273.2 billion yen, Jun +693.1 billion yen. Jul exports expected -13.7% y/y, Jun -7.4% y/y. Jul imports expected -20.0% y/y, Jun -18.8% y/y. |
| CHI | 2130 ET | China Jul property prices. |
| Company | Ticker | Time | Event Description | Period | Estimate |
|---|---|---|---|---|---|
| Home Depot Inc/The | HD US | Bef-mkt | Q2 2017 Earnings Release | Q2 2017 | 1.968 |
| Advance Auto Parts Inc | AAP US | Bef-mkt | Q2 2016 Earnings Release | Q2 2016 | 2.111 |
| TJX Cos Inc/The | TJX US | 9:30 | Q2 2017 Earnings Release | Q2 2017 | 0.811 |
| Urban Outfitters Inc | URBN US | 16:05 | Q2 2017 Earnings Release | Q2 2017 | 0.553 |
