Mon Sep 26 2016
Nikki Bailey (1071 articles)

US : Pre Market News – 26 Sep 2016



Dec E-mini S&Ps (ESZ16 -0.45%) are down -0.46% and European stocks are down -1.47%. Deutsche Bank AG is down over 6% at a record low and is leading losses in European banking shares on speculation that Germany’s biggest bank may need to raise capital. Focus Magazine reported Saturday that German Chancellor Merkel has ruled out any state assistance for Deutsche Bank ahead of national elections next year. Stock losses were contained on increased M&A activity after Germany’s Lanxess AG acquired Chemtura for $ 2.1 billion. Also, German business sentiment improved after the Sep IFO business climate rose more than expected to a 2-1/3 year high. Asian stocks settled mostly lower: Japan -1.25%, Hong Kong -1.56%, China -1.76%, Taiwan -0.97%, Australia unch, Singapore -0.25%, South Korea -0.34%, India -1.30%. China’s Shanghai Composite fell to a 1-1/2 month low on long liquidation pressures ahead of a week-long holiday next week in China, while losses in technology stocks undercut other Asian markets after a German market data firm said that iPhone 7 unit sales were 25% lower than the previous year’s sales of an older model.

The dollar index (DXY00 -0.15%) down -0.13%. EUR/USD (^EURUSD) is up +0.17%. USD/JPY (^USDJPY) is down -0.62%.

Dec 10-year T-note prices (ZNZ16 +0.11%) are up +4 ticks at a 2-week high.

The German Sep IFO business climate rose +3.2 to 109.5, stronger than expectations of +0.1 to 106.3 and the highest in 2-1/3 years.


Key U.S. news today includes: (1) Aug new home sales (expected -8.3% to 600,000, Jul +12.4% to 654,000), (2) Sep Dallas Fed manufacturing activity (expected +3.2 to -3.0, Aug -4.9 to -6.2), (3) Treasury auction of $ 26 billion of 2-year T-notes, (4) Fed Governor Daniel Tarullo delivers speech on the “Next Steps in the Evolution of Stress Testing” to the Yale School of Management Leaders Forum, (5) Dallas Fed President Robert Kaplan (non-voter) speaks at the Independent Bankers Association of Texas’ annual convention, (6) USDA weekly grain export inspections, (7) USDA Weekly Crop Progress.

Russell 1000 companies that report earnings today: Carnival (consensus $ 1.89), Vail Resorts (1.67), Thor Industries (1.33).

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

Equity conferences this week include: Deutsche Bank Leveraged Finance Conference on Tue, JMP Securities Financial Services & Real Estate Conference on Tue, Wolfe Research Power and Gas Leaders Conference on Tue-Wed, Leerink Partners Rare Disease & Immuno Oncology Roundtable Conference on Wed-Thu.




Disney (DIS -0.15%) was downgraded to ‘Hold’ from ‘Buy’ at Drexel Hamilton LLC.

Twitter (TWTR +21.42%) was downgraded to ‘Underperform’ from ‘Market Perform’ at Oppenheimer & Co.

Oshkosh (OSK -10.58%) was upgraded to ‘Neutral’ from ‘Underperform’ at Credit Suisse.

NetApp was (NTAP -0.83%) upgraded to ‘Buy’ from ‘Hold’ at Cross Research with a 12-month target price of $ 45.

CBOE Holdings agreed to buy BATS Global Markets (BATS +19.86%) for $ 3.2 billion in a cash and stock transaction.

Chemtura (CHMT +2.29%) surged 17% in pre-market trading after the company was acquired by Lanxess AG for about $ 2.1 billion.

Sally Beauty Holdings (SBH +0.57%) climbed 5% in after-hours trading after it was announced that it will replace RR Donnelley in the S&P MidCap 400 Index at the close of trading Tuesday, September 27.

RR Donnelley & Sons (RRD -1.15%) jumped over 5% in after trading after it was announced that it will replace Sizmek in the S&P SmallCap 600 at the close of trading Tuesday, September 27.

Smith & Wesson (SWHC -0.18%) slid over 2% in after-hours trading after it said its proposal for the U.S. Army’s Modular Handgun System (MHS) was not selected to advance to the next phase of competition.

Rowan Cos, Plc (RDC -4.98%) was downgraded to ‘Neutral’ from ‘Outperform’ at Credit Suisse.


Dec E-mini S&Ps (ESZ16 -0.45%) this morning are down -10.00 points (-0.46%). Friday’s closes: S&P 500 -0.57%, Dow Jones -0.71%, Nasdaq -0.66%. The S&P 500 on Friday closed lower on the unexpected -0.6 point decline in the U.S. Markit Sep manufacturing PMI to 51.4, weaker than expectations of unchanged at 52.0. Stocks were also undercut by hawkish comments from Boston Fed Rosengren who said that delaying an interest rate increase puts the U.S. economic recovery in jeopardy. Energy producer stocks were undercut by -3.97% slide in crude oil prices.

Dec 10-year T-notes (ZNZ16 +0.11%) this morning are up +4 ticks at a 2-week high. Friday’s closes: TYZ6 +5.50, FVZ6 +4.25. Dec 10-year T-notes on Friday closed higher on increased safe-haven demand with the sell-off in stocks and on the unexpected decline in the U.S. Sep Markit manufacturing PMI. T-notes were undercut by higher inflation expectations as the 10-year T-note breakeven inflation rate climbed to a 3-1/2 month high.

The dollar index (DXY00 -0.15%) this morning is down -0.121 (-0.13%). EUR/USD (^EURUSD) is up +0.0019 (+0.17%). USD/JPY (^USDJPY) is down -0.63 (-0.62%). Friday’s closes: Dollar index +0.029 (+0.03%), EUR/USD +0.0018 (+0.16%), USD/JPY +0.26 (+0.26%). The dollar index on Friday closed higher on Boston Fed Rosengren’s hawkish comment that he favors raising interest rates soon since delaying a rate hike may threaten the economic recovery. The dollar was also boosted by weakness in GBP/USD which tumbled to a 1-1/4 month low on speculation that the UK is heading for a swift exit from the EU after British foreign secretary Johnson said UK plans to trigger Article 50 of the Lisbon Treaty early next year.

Nov WTI crude oil (CLX16 +0.94%) this morning is up +42 cents (+0.94%) and Nov gasoline (RBX16 +1.13%) is up +0.0226 (+1.67%). Friday’s closes: Nov crude -1.84 (-3.97%), Nov gasoline -0.0230 (-1.67%). Nov crude and gasoline on Friday closed lower on a stronger dollar and on Saudi Arabia’s statement that it does not expect a decision on crude output when OPEC holds an informal meeting in Algiers. Nov crude posted a 1-week high in Thursday night’s trading when Saudi Arabia offered to reduce its crude production if Iran agreed to freeze its crude output.

Monday, Sep 26
US1000 ETAug new home sales expected -8.3% to 600,000, Jul +12.4% to 654,000.
1030 ETSep Dallas Fed manufacturing activity expected +3.2 to -3.0, Aug -4.9 to -6.2.
1100 ETUSDA weekly grain export inspections.
1145 ETFed Governor Daniel Tarullo delivers speech on the Next Steps in the Evolution of Stress Testing to the Yale School of Management Leaders Forum.
1300 ETTreasury auctions $ 26 billion of 2-year T-notes.
1330 ETDallas Fed President Robert Kaplan (non-voter) speaks at the Independent Bankers Association of Texas annual convention.
1600 ETUSDA Weekly Crop Progress.
Tuesday, Sep 27
US0900 ETJul S&P CoreLogic composite-20 home prices expected unch m/m and +5.1% y/y, Jun -0.07% m/m and +5.13% y/y.
0945 ETSep Markit services PMI expected +0.2 to 51.2, Aug -0.4 to 51.0. Sep Markit composite PMI, Aug -0.3 to 51.5.
1000 ETSep consumer confidence (Conference Board) expected -2.4 to 98.7, Aug +4.4 to 101.1.
1000 ETSep Richmond Fed manufacturing survey expected +9 to -2, Aug -21 to -11.
1300 ETTreasury auctions $ 34 billion of 5-year T-notes.
U.S. STOCK CALENDAR 09/26/2016
CompanyTickerTimeEvent DescriptionPeriodEstimate
Carnival CorpCCL USBef-mktQ3 2016 Earnings ReleaseQ3 20161.889
Vail Resorts IncMTN USBef-mktQ4 2016 Earnings ReleaseQ4 2016-1.671
FedEx CorpFDX US9:00Annual General MeetingY 2016
Carnival CorpCCL US10:00Q3 2016 Earnings CallQ3 2016
Great Plains Energy IncGXP US11:00Special Meeting – M&A Vote
Westar Energy IncWR US11:00Special Meeting – M&A Vote
Vail Resorts IncMTN US11:30Q4 2016 Earnings CallQ4 2016
Alkermes PLCALKS US14:00Analyst and Investor MeetingY 2016
Thor Industries IncTHO US16:15Q4 2016 Earnings ReleaseQ4 20161.328
Equifax IncEFX USInvestor Meeting – Day 1Y 2016
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


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