US : Pre Market News – 22 Aug 2016

Sep E-mini S&Ps (ESU16 -0.19%) are down -0.14% and European stocks are down -0.18% on concern the Fed may be closer to raising interest rates after hawkish comments from Fed Vice Chair Fischer who said the Fed is close to meeting its goals and that economic growth will pick up in coming quarters as investment recovers. Fischer’s comments boosted the dollar and undercut commodity prices, which put pressure on energy producers and raw-material stocks. Another negative for crude oil prices, which are down over $ 1 a barrel (-2.74%) in early trade is concern over bigger global supplies after Iraq said it will increase exports by +150,000 bpd as exports resume from three oil fields in Kirkuk. Asian stocks settled mixed: Japan +0.32%, Hong Kong +0.26%, China -0.75%, Taiwan -0.58%, Australia -0.21%, Singapore -0.10%, South Korea -0.55%, India -0.33%. Japan’s Nikkei Stock Index settled higher as exporter stocks rallied after USD/JPY rose when BOJ Governor Kuroda told the Sankei newspaper that the BOJ is conducting a comprehensive review of Japan’s economy and finances and said there is “sufficient chance” of more easing at next month’s policy meeting.

The dollar index (DXY00 +0.17%) is up +0.27%. EUR/USD (^EURUSD) is down -0.22%. USD/JPY (^USDJPY) is up +0.28%.

Sep T-note prices (ZNU16 -0.06%) are down -3 ticks at a 1-month low after the comments from Fed Vice Chair Fischer bolstered speculation of a Fed rate hike this year.

Fed Vice Chair Fischer said in a speech in Aspen, Colorado on Sunday that the Fed is “close to our targets” and that “looking ahead, I expect GDP growth to pick up in coming quarters, as investment recovers from a surprisingly weak patch and the drag from past dollar appreciation diminishes.”

Key U.S. news today includes: (1) Jul Chicago Fed national activity index (Jun 0.16), (2) USDA weekly grain export inspections, (3) USDA Jul Cold Storage, and (4) USDA Weekly Crop Progress.

Russell 1000 companies that report earnings today: Nordson (cosnensus $ 1.33), Premier Inc (0.38), CommerceHub.

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

Equity conferences this week: Heikkinen Energy Conference 2016 on Wed.

Freeport-McMoRan (FCX -2.13%) slid almost 3% in pre-market trading as metals price declined.

Medivation (MDVN -0.04%) jumped almost 20% in pre-market trading after people familiar with the situation said that Pfizer is close to an agreement to buy the company for about $ 14 billion, or $ 81.50 a share.

Workday (WDAY +0.87%) was downgraded to ‘Hold’ from ‘Buy’ at Needham & Co.

Cardiovascular Systems (CSII -0.26%) was upgraded to ‘Outperform’ from ‘Market Perform’ at Leerink Partners.

Hormel Foods (HRL +4.37%) was upgraded to ‘Outperform’ from ‘Neutral’ at Credit Suisse.

Illumina (ILMN -0.41%) was downgraded to ‘Neutral’ from ‘Buy’ at CL King.
Mattress Firm Holding MFRM was downgraded to ‘Underperform’ from ‘Market Perform’ at Raymond James.

Lockheed Martin (LMT -0.51%) won a $ 10 billion U.S. defense contract for support of the Air Force’s C-130J program with work expected to be completed by Aug 18, 2026.

Green Plains Partners LP (GPP +0.59%) was rated a new ‘Buy’ at DA Davidson with a 12-month target price of $ 21.

Marvel (MRVL +4.29%) gained almost 1% in after-hours trading after DealReporter said the company was continuing steps to explore a sale.

SITO Mobile Ltd (SITO -0.96%) slid over 4% in after-hours trading after it registered a $ 50 million mixed securities shelf.

CIFC LLC (CIFC +0.43%) surged over 40% in after-hours trading after F.A.B. Partners acquired the company for $ 333 million of 11.46 a share, a 65% premium from Friday’s closing price.

Sep E-mini S&Ps (ESU16 -0.19%) this morning are down -3.00 points (-0.14%). Friday’s closes: S&P 500 -0.14%, Dow Jones -0.24%, Nasdaq -0.05%. The S&P 500 on Friday closed lower on long liquidation pressures spurred on by hawkish comments from San Francisco Fed President Williams who said the Sep FOMC meeting was “in play” for a Fed rate hike. A positive for stocks was the action by the NY Fed to raise its U.S. Q3 GDP estimate to 3.0% from a previous estimate of 2.4%, citing “positive news” from economic data.

Sep 10-year T-notes (ZNU16 -0.06%) this morning are down -3 ticks at a 1-month low. Friday’s closes: TYU6 -13.50, FVU6 -8.00. Sep T-notes on Friday closed lower after San Francisco Fed President Williams said the Sep FOMC meeting is “in play” for a rate move as are all meetings. Also, a slide in German bund prices undercut T-notes after German Jul PPI rose more than expected, which may keep the ECB from further expanding stimulus measures.

The dollar index (DXY00 +0.17%) this morning is up +0.252 (+0.27%). EUR/USD (^EURUSD) is down -0.0025 (-0.22%). USD/JPY (^USDJPY) is up +0.28 (+0.28%). Friday’s closes: Dollar index +0.354 (+0.38%), EUR/USD -0.0029 (-0.26%), USD/JPY +0.33 (+0.33%). The dollar index on Friday closed higher after the NY Fed raised its U.S. Q3 GDP estimate to 3.0% from a previous estimate of 2.4%, and after San Francisco Fed President Williams said the Sep FOMC meeting was “in play” for a Fed interest rate increase.

Sep crude oil (CLU16 -2.70%) this morning is down -$ 1.33 a barrel (-2.74%) and Sep gasoline (RBU16 -2.53%) is down -0.0399 (-2.64%). Friday’s closes: CLU6 +0.30 (+0.62%), RBU6 +0.0232 (+1.56%). Sep crude oil and gasoline on Friday rallied to 1-1/2 month highs and closed higher on heightened speculation that OPEC may agree to a production freeze when it meets next month for informal talks in Algiers. Gains in crude were limited after data from Baker Hughes showed active U.S. oil rigs in the week ended Aug 19 rose by 10 to 406, a 6-month high and the eighth consecutive increase.