US : Pre Market News – 16 Aug 2016
Tue Aug 16 2016
Nikki Bailey (257 articles)
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US : Pre Market News – 16 Aug 2016

NEW YORK :

PREMARKET WORLD NEWS

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.

U.S. STOCK PREVIEW

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.

PREMARKET U.S. STOCKS

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.

MARKET COMMENTS

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.

GLOBAL EVENT CALENDAR 08/16/2016
Tuesday, Aug 16
US0830 ETJul 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 ETJul 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 ETJul 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 ETAtlanta Fed President Dennis Lockhart (non-voter) speaks to the Rotary Club of Knoxville, TN.
UK0430 ETUK 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 ETUK 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 ETUK 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 ETUK 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.
GER0500 ETGerman 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
US0700 ETWeekly MBA mortgage applications, previous +7.1% with purchase sub-index +2.6% and refi sub-index +9.6%.
1030 ETEIA Weekly Petroleum Status Report.
1300 ETSt. Louis Fed President James Bullard (voter) speaks on the U.S. economy and monetary policy at a wealth and asset management research conference.
1400 ETMinutes of the Jul 26-27 FOMC meeting.
UK0430 ETUK Jul jobless claims change expected +9,000, Jun +400. Jul claimant count rate expected unch at 2.2%.
0430 ETUK 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 ETUK 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.
JPN1950 ETJapan 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.
CHI2130 ETChina Jul property prices.
U.S. STOCK CALENDAR 08/16/2016
CompanyTickerTimeEvent DescriptionPeriodEstimate
Home Depot Inc/TheHD USBef-mktQ2 2017 Earnings ReleaseQ2 20171.968
Advance Auto Parts IncAAP USBef-mktQ2 2016 Earnings ReleaseQ2 20162.111
TJX Cos Inc/TheTJX US9:30Q2 2017 Earnings ReleaseQ2 20170.811
Urban Outfitters IncURBN US16:05Q2 2017 Earnings ReleaseQ2 20170.553

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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