US : Pre Market News – 08 Sep 2016

Sep E-mini S&Ps (ESU16 +0.06%) are up +0.07% at a 2-week high and European stocks are down -0.06% ahead of today’s ECB meeting and press conference from ECB President Draghi. The markets will look to see if Draghi extends QE past this year or whether the ECB may include bank bonds in their asset purchase program. A +1.63% rally in crude prices (CLV16 +1.69%) is giving energy producing stocks a lift after API data late yesterday showed U.S. crude inventories plunged -12.1 million bbl last week. Asian stocks settled mixed: Japan -0.32%, Hong Kong +0.75%, China +0.13%, Taiwan +0.04%, Australia -0.71%, Singapore +0.03%, South Korea +0.21%, India +0.41%. Chinese stocks received a boost after trade data from last month showed export declines moderated and imports unexpectedly grew at the fastest pace in 1-3/4 years.

The dollar index (DXY00 -0.32%) is down -0.32% at a 1-1/2 week low. EUR/USD (^EURUSD) is up +0.48% at a 1-1/2 week high. USD/JPY (^USDJPY) is down -0.11%.

Dec T-note prices (ZNZ16 -0.04%) are down -1 tick.

Japan Q2 GDP was revised higher to +0.7% (q/q annualized) from the previously reported +0.2% (q/q annualized).

The China Aug trade balance unexpectedly shrunk to a surplus of +$ 52.05 billion, a smaller surplus than expectations of +$ 58.85 billion. Aug exports fell -2.8% y/y, a smaller decline than expectations of -4.0% y/y. Aug imports unexpectedly rose +1.5% y/y, stronger than expectations of -5.4% y/y and the biggest increase in 1-3/4 years.

Key U.S. news today includes: (1) weekly initial unemployment claims (expected +2,000 to 265,000, previous +2,000 to 263,000) and continuing claims (expected -8,000 to 2.151 million, previous +14,000 to 2.159 million), (2) Jul consumer credit (expected +$ 16.00 billion, Jun +$ 12.32 billion), and (3) EIA Weekly Petroleum Status Report.

Russell 1000 companies that report earnings today: Donaldson (consensus $ 0.49), Santander Consumer USA Holdings (0.68).

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

Equity conferences during the remainder of this week include: Citi Global Technology Conference on Tue-Thu, Barclays CEO Energy Power Conference on Tue-Thu, Barclays Global Consumer Staples Conference on Tue-Thu, Barclays Back-to-School Conference on Tue-Thu, Goldman Sachs Global Retailing Conference on Wed-Thu, Drexel Hamilton Technology, Media and Telecom Conference on Wed-Thu, Keefe, Bruyette, & Woods Insurance Conference on Wed-Thu, Goldman Sachs Financial Technology Conference on Thu, Evercore ISI Real Estate Conference on Thu, Gabelli & Company Aircraft Supplier & Connectivity Conference on Thu.

Nike (NKE +0.54%) was downgraded to ‘Neutral’ from ‘Overweight’ at Piper Jaffray.

Pier 1 (PIR +3.23%) tumbled 12% in pre-market trading after it reported a preliminary Q2 loss of -5 cents to -6 cents a share, weaker than consensus of -3 cents, and the CEO Alex Smith said he will step down effetive Dec 31.

AutoNation (AN +2.10%) was rated a new ‘Buy’ at CL King with a 12-month target price of $ 57.

Wingstop (WING -0.80%) was rated a new ‘Overweight’ at Keybanc Capital Markets with a 12-month price target of $ 36.

Apple (AAPL +0.61%) was downgraded to ‘Market Perform’ from ‘Outperform’ at Wells Fargo Securities.

Tailored Brands (TLRD +3.04%) jumped over 10% in after-hours trading after it reported Q2 adjusted EPS of 99 cents, higher than consensus of 93 cents.

Guidewire Software (GWRE +0.60%) fell nearly 6% in after-hours trading after it lowered guidance on full-year EPS to 69 cents-79 cents, weaker than consensus of 84 cents.

Tractor Supply (TSCO -0.02%) slumped over 9% in after-hours trading after it cut its full-year EPS outlook to $ 3.22-$ 3.26 from a prior view of $ 3.35-$ 3.40.

Sage Therapeutics (SAGE +1.03%) dropped nearly 6% in after-hours trading after it announced a $ 150 million public offering of common stock.

Hewlett Packard Enterprise (HPE +1.05%) lost nearly 2% in after-hours trading after it said it will spin off some of its software assets and merge them with Micro Focus.

Abeona Therapeutics (ABEO +2.13%) climbed over 4% in after-hours trading after Cantor Fitzgerald rated the stock a new ‘Buy.’

Bazaarvoice (BV +4.60%) gained 3% in after-hours trading after it reported Q1 adjusted EPS at breakeven, better than consensus for a -4 cent loss.

Repros Therapeutics (RPRX -2.56%) surged 40% in after-hours trading after the company said its Proellex drug cut menstrual pain in a Phase 2 trial versus a placebo.

Netlist (NLST -2.84%) tumbled 14% in after-hours trading after it said it will offer $ 15 million in common stock.

Sep E-mini S&Ps (ESU16 +0.06%) this morning are up +1.50 points (+0.07%) at a 2-week high. Wednesday’s closes: S&P 500 -0.01%, Dow Jones -0.06%, Nasdaq +0.05%. The S&P 500 on Wednesday closed slightly lower on weakness in consumer-staple companies, led by a -13% drop in Sprouts Farmers Markets after the company cut its profit outlook. Stocks were also undercut by the sharp +228,000 increase in U.S. Jul JOLTS job openings to a record 5.871 million, which bolstered the case for the Fed to raise interest rates. Stocks recovered in the early afternoon when the Fed’s Beige Book said the U.S. economy grew at a modest pace and price increases “remained slight overall.”

Dec 10-year T-notes (ZNZ16 -0.04%) this morning are down -1 tick. Wednesday’s closes: TYZ6 unch, FVZ6 -0.25. Dec T-notes on Wednesday closed little changed. T-notes were supported by weaker stocks and by carryover support from a rally in German bunds to a 1-3/4 month high ahead of Thursday’s ECB meeting. T-notes were undercut by news that U.S. Jul JOLTS job openings rose to a record 5.871 million, which bolstered the case for a Fed rate hike.

The dollar index (DXY00 -0.32%) this morning is down -0.308 (-0.32%) at a 1-1/2 week low. EUR/USD (^EURUSD) is up +0.0054 (+0.48%) at 1-1/2 week high. USD/JPY (^USDJPY) is down -0.11 (-0.11%). Wednesday’s closes: Dollar index +0.133 (+0.14%), EUR/USD -0.0016 (-0.14%), USD/JPY -0.28 (-0.27%). The dollar index on Wednesday closed higher on signs of U.S. labor market strength that may prompt the Fed to raise interest rates after U.S. Jul JOLTS job openings rose to a record high. In addition, there was weakness in EUR/USD after German Jul industrial production unexpectedly fell -1.5% m/m, the largest decline in 23 months.

Oct crude oil (CLV16 +1.69%) this morning is up +74 cents (+1.63%) and Oct gasoline (RBV16 +1.84%) is up +0.0267 (+1.98%). Wednesday’s closes: CLV6 +1.31 (+2.92%), RBV6 +0.0456 (+3.46%). Oct crude oil and gasoline on Wednesday closed higher on the increase in Jul JOLTS job openings to a record high, which signals strength in the labor market that may fuel economic expansion and energy demand. Oil prices were undercut by the EIA’s hike in its U.S. 2016 oil production estimate to 8.77 million bpd from 8.73 million bpd and by expectations for Thursday’s EIA crude inventories report to show an increase of +1.0 million bbl.