US : Pre Market News – 31 Aug 2016
Wed Aug 31 2016
Nikki Bailey (269 articles)
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US : Pre Market News – 31 Aug 2016

NEW YORK :

PREMARKET WORLD NEWS

Sep E-mini S&Ps (ESU16 unch) are down -0.05%, led by losses in energy producing stocks with crude oil (CLV16 -0.80%) down -0.67% at a 2-week low. European stocks are up +0.48% at a 2-week high as bank stocks rallied on possible increased M&A activity with Commerzbank AG up 4% after Manager Magazine reported that rival Deutsche Bank AG is considering the possibility of a merger. Also, a jump in German Jul retail sales by the most in 2-years shows strength in Europe’s largest economy. Asian stocks settled mixed: Japan +0.97%, Hong Kong -0.17%, China +0.35%, Taiwan -0.46%, Australia -0.83%, Singapore -0.28%, South Korea -0.24%, India +0.39%. Japan’s Nikkei Stock Index rallied up to a 2-week high, on strength in exporter stocks, after USD/JPY pushed up to 1-month high.

The dollar index (DXY00 +0.04%) is down -0.02%. EUR/USD (^EURUSD) is down -0.05% after Eurozone Aug CPI rose less than expected. USD/JPY (^USDJPY) is up +0.32% at a 1-month high.

Sep T-note prices (ZNU16 -0.07%) are down -2 ticks.

Boston Fed President Rosengren (voter) said with the U.S. likely to reach the Fed’s inflation/employment goals “relatively soon,” keeping rates low for long “is not without risks,” citing rising commercial real estate values.

Chicago Fed President Evans said that “long-run expectations for policy rates provide an anchor to long-run interest rates, so lower policy rate expectations act as a restraint on how much long-term rates could rise following a surprise over the near-term policy path.”

German Jul retail sales rose +1.7% m/m, stronger than expectations of +0.5% m/m and the biggest increase in 2 years.

The Eurozone Aug CPI estimate rose +0.2% y/y, weaker than expectations of +0.3% y/y. The Aug core CPI rose +0.8% y/y, weaker than expectations of +0.9% y/y.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Boston Fed President Eric Rosengren (voter) and Chicago Fed President Charles Evans (non-voter) speak at the Shanghai Advanced Institute of Finance in Beijing on “Business Cycles, Financial Markets, and Monetary Policy with Special Application to China,” (2) weekly MBA mortgage applications (previous -2.1% with purchase sub-index -0.3% and refi sub-index -3.2%), (3) Minneapolis Fed President Neel Kashkari (non-voter) discusses the role of the Fed and its Board of Directors at an event in St. Paul, MN, (4) Aug ADP employment (expected +175,000, Jul +179,000), (5) Aug Chicago PMI (expected -1.8 to 54.0, Jul -1.0 to 55.8), (6) Jul pending home sales (expected +0.7% m/m and +2.2% y/y), Jun +0.2% m/m and +0.3% y/y), and (7) EIA Weekly Petroleum Status Report.

Russell 1000 companies that report earnings today: Brown-Forman (consensus $ 0.37), saleforce.com (0.22).

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

Equity conferences during the remainder of this week include: 2016 Farm Progress Show on Mon-Wed, Simmons European Energy Conference on Tue-Wed, Jefferies LLC Semiconductor, Hardware and Communications Infrastructure Summit on Wed.

PREMARKET U.S. STOCKS

Under Armour (UA -1.31%) was downgraded to ‘Hold’ from ‘Buy’ at Argus.

Frontline Ltd (FRO unch) dropped nearly 6% in pre-market trading after it reported Q1 net income of $ 14.3 million, well below consensus of $ 46.9 million.

Pioneer Natural Resources (PXD -0.03%) was upgraded to ‘Buy’ from ‘Hold’ at Edward Jones.

Caleres (CAL -5.71%) slid 7% in after-hours trading after it reported Q2 adjusted EPS of 46 cents, below consensus of 51 cents, and then cut its 2016 fiscal sales view to $ 2.57 billion-$ 2.60 billion from a prior view of $ 2.60 billion-$ 2.63 billion.

PAREXWL International (PRXL +1.27%) fell over 3% in after-hours trading after it delayed reporting a 10-K on funds misappropriation report.

H&R Block (HRB -1.43%) dropped over 6% in after-hours trading after it reported a Q1 adjusted loss of -55 cents a share, wider than consensus of -53 cents.

Textron (TXT +0.07%) said it approved a plan to restructure via job cuts, facility consolidations and other actions that will be mostly completed by March 2017.

Palo Alto Networks (PANW +1.39%) slid 3% in after-hours trading after it said it sees Q1 adjusted EPS of 51 cents-53 cents, below consensus of 56 cents.

Veeva Systems (VEEV -2.66%) reported Q2 adjusted EPS of 15 cents, higher than consensus of 13 cents, and then raised its view on full-year adjusted EPS to 60 cents-61 cents from a prior estimate of 55 cents-57 cents.

Aerovironment (AVAV -0.17%) sank 13% in after-hours trading after it reported a Q1 adjusted loss of -51 cents a share, much weaker than consensus of -15 cents.

Concurrent Computer (CCUR +2.18%) jumped 8% in after-hours trading after it reported Q4 revenue of $ 17.4 million versus $ 13.8 million y/y.

Medicines Co. (MDCO -0.22%) slumped 10% in after-hours trading after it said an interim analysis of the first 40 patients completing treatment with its MDCO-216 for acute coronary syndrome showed the data were inconclusive at first look.

Globalstar (GSAT +4.83%) climbed nearly 6% in after-hours trading after it signed a strategic agreement with Carmanah Technologies to collaborate on the design and manufacture of new solar powered M2M satellite solutions.

MARKET COMMENTS

Sep E-mini S&Ps (ESU16 unch) this morning are down -1.00 point (-0.05%). Tuesday’s closes: S&P 500 -0.20%, Dow Jones -0.26%, Nasdaq -0.32%. The S&P 500 on Tuesday closed lower on weakness in energy producing stocks after the price of crude fell -1.34% to a 2-week low. There was also weakness in mining stocks and raw-material producers after the price of copper dropped -0.27% to a 2-1/4 month low. Stocks found some underlying support from news that the U.S. Aug consumer confidence index from the Conference Board unexpectedly rose +4.4 to 101.1, stronger than expectations of -0.3 to 97.0 and the highest level in 11 months.

Sep 10-year T-notes (ZNU16 -0.07%) this morning are down -2 ticks. Tuesday’s closes: TYU6 -2.00, FVU6 -0.50. Sep T-notes on Tuesday closed lower on hawkish comments from Fed Vice Chair Fischer who said that next month’s Fed interest rate decision is not necessarily “one and done.” T-notes were also undercut by the increase in U.S. Aug consumer confidence to an 11-month high.

The dollar index (DXY00 +0.04%) this morning is down -0.019 (-0.02%). EUR/USD (^EURUSD) is down -0.0006 (-0.05%). USD/JPY (^USDJPY) is up +0.33 (+0.32%) at a 1-month high. Tuesday’s closes: Dollar index +0.474 (+0.50%), EUR/USD -0.0046 (-0.41%), USD/JPY +1.04 (+1.02%). The dollar index on Tuesday posted a 3-week high and settled higher on Fed Vice Chair Fischer’s comment that the U.S. is close to full employment, which bolsters the case for a Fed rate hike. The dollar also found support on the unexpected increase in U.S. Aug consumer confidence to an 11-month high. EUR/USD fell to a 2-week low after Eurozone economic confidence fell to a 5-month low.

Oct crude oil (CLV16 -0.80%) this morning is down -31 cents (-0.67%) at a 2-week low and Oct gasoline (RBV16 -1.46%) is down -0.0209 (-1.52%) at a 2-week low. Tuesday’s closes: CLV6 -0.63 (-1.34%), RBV6 -0.0213 (-1.53%). Oct crude oil and gasoline on Tuesday fell to 2-week lows and closed lower on the rally in the dollar index to a 3-week high and on expectations for Wednesday’s weekly EIA crude inventories to climb +1.5 million bbl.

GLOBAL EVENT CALENDAR 08/31/2016
Wednesday, Aug 31
US0315 ETBoston Fed President Eric Rosengren (voter) and Chicago Fed President Charles Evans (non-voter) speak at the Shanghai Advanced Institute of Finance in Beijing on Business Cycles, Financial Markets, and Monetary Policy with Special Application to China.
0700 ETWeekly MBA mortgage applications, previous -2.1% with purchase sub-index -0.3% and refi sub-index -3.2%.
0800 ETMinneapolis Fed President Neel Kashkari (non-voter) discusses the role of the Fed and its Board of Directors at an event in St. Paul, MN.
0815 ETAug ADP employment change expected +175,000, Jul +179,000.
0945 ETAug Chicago PMI expected -1.8 to 54.0, Jul -1.0 to 55.8.
1000 ETJul pending home sales expected +0.7% m/m and +2.2% y/y, Jun +0.2% m/m and +0.3% y/y.
1030 ETEIA Weekly Petroleum Status Report.
Thursday, Sep 1
US0730 ETAug Challenger job cuts, Jul -57.1% y/y.
0830 ETWeekly initial unemployment claims expected +4,000 to 265,000, previous -1,000 to 261,000. Weekly continuing claims expected unch at 2.145 million, previous -30,000 to 2.145 million.
0830 ETRevised Q2 non-farm productivity expected -0.6%, prelim-Q1 -0.5%. Revised Q2 unit labor costs expected +2.0%, prelim-Q2 +2.0%.
0830 ETUSDA weekly Export Sales.
0945 ETRevised Aug Markit manufacturing PMI expected unch at 52.1, prelim-Aug -0.8 to 52.1.
1000 ETJul construction spending expected +0.5%, Jun -0.6% m/m.
1000 ETAug ISM manufacturing index expected -0.6 to 52.0, Jul -0.6 to 52.6. Aug ISM new orders, Jul +0.4 to 60.3. Aug ISM employment, Jul -1.3 to 51.4. Aug ISM prices paid expected -0.2 to 54.8, Jul -5.5 to 55.0.
n/aAug total vehicle sales expected 17.20 million, Jul 17.77 million. Aug domestic vehicle sales expected 13.50 million, Jul 13.77 million.
JPN0100 ETJapan Aug vehicle sales, Jul -0.2% y/y.
GER0355 ETRevised German Aug Markit/BME manufacturing PMI.
EUR0400 ETRevised Eurozone Markit manufacturing PMI.
UK0430 ETUK Aug Markit manufacturing PMI expected +0.8 to 49.0, Jul -4.2 to 48.2.
U.S. STOCK CALENDAR 08/31/2016
CompanyTickerTimeEvent DescriptionPeriodEstimate
Brown-Forman CorpBF/B US6:45Q1 2017 Earnings ReleaseQ1 20170.368
Brown-Forman CorpBF/B US10:00Q1 2017 Earnings CallQ1 2017
salesforce.com IncCRM US17:00Q2 2017 Earnings CallQ2 2017
salesforce.com IncCRM USAft-mktQ2 2017 Earnings ReleaseQ2 20170.22
Costco Wholesale CorpCOST US21:00August 2016 Sales and Revenue Release2016
Apple Hospitality REIT IncAPLE USShareholders Meeting – M&A VoteY 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