Thu Sep 29 2016
Nikki Bailey (1046 articles)

US : Pre Market News – 29 Sep 2016

NEW YORK :

PREMARKET WORLD NEWS

Dec E-mini S&Ps (ESZ16 -0.03%) are down -0.07%, as crude oil (CLX16 -0.09%) drops -0.60% and gives back some of yesterday’s sharp rally. European stocks are up +0.73% as energy stocks there catch up to the rally in U.S. stocks late yesterday after OPEC unexpectedly cut its production target. Another positive for European equities was the unexpected increase in Eurozone Sep economic confidence to an 8-month high. Asian stocks settled mostly higher: Japan +1.39%, Hong Kong+0.51%, China +0.36%, Taiwan +0.83%, Australia +1.09%, Singapore +0.97%, South Korea +0.83%, India -1.64%. India’s BSE Sensex Stock Index sold-off over 1.6% after India launched a raid into Pakistan to attack terrorist targets. Japanese stocks rose as exporters rallied after USD/JPY rose to a 1-week high, which boosts exporters’ earnings prospects.

The dollar index (DXY00 +0.06%) is up +0.12%. EUR/USD (^EURUSD) is up +0.01%. USD/JPY (^USDJPY) is up +0.74% at a 1-week high.

Dec 10-year T-note prices (ZNZ16 -0.12%) are down -5.5 ticks.

Speaking in Dublin, Ireland, Philadelphia Fed President Harker said he’s “somewhat concerned” about falling behind the curve and that “he tends to be in the camp of normalizing interest rates sooner, rather than later. He added that “every meeting is a live meeting” for the FOMC to change monetary policy.

Eurozone Sep economic confidence rose +1.4 to 104.9, stronger than expectations of unch at 103.5 and the highest in 8 months. The Sep business climate indicator rose +0.42 to 0.45, stronger than expectations of +0.03 to 0.05 and the highest in 11 months.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Philadelphia Fed President Patrick Harker (non-voter) delivers a speech on the economic outlook at the Global Interdependence Center in Dublin, Ireland, (2) weekly initial unemployment claims (expected +8,000 to 260,000, previous -8,000 to 252,000) and continuing claims (expected +16,000 to 2.129 million, previous -36,000 to 2.113 million), (3) revised Q2 GDP expected +1.3% (q/q annualized) vs previous +1.1%, (4) Aug wholesale inventories (expected unch m/m, Jul unch m/m), (5) Atlanta Fed President Dennis Lockhart (non-voter) speaks at the 2016 Future of Florida Forum, (6) Fed Governor Jerome Powell delivers a keynote address at the research conference “Community Banking in the 21st Century,” (7) Aug pending home sales (expected unch m/m, Jul +1.3% m/m and -2.2% y/y), (8) Minneapolis Fed President Neel Kashkari (non-voter) speaks during a town hall event in Rapid City, SD, (9) Fed Chair Janet Yellen speaks via video link to a forum for minority bankers hosted by the Kansas City Fed, (10) USDA weekly Export Sales.

Russell 1000 companies that report earnings today: Accenture (consensus $ 1.30), PepsiCo (1.32), ConAgra Foods (0.48), Costco (1.73).

U.S. IPO’s scheduled to price today: Independence Realty Trust (IRT), Nutanix (NTNX).

Equity conferences during the remainder of this week include: Leerink Partners Rare Disease & Immuno Oncology Roundtable Conference on Wed-Thu.

 

 

PREMARKET U.S. STOCKS

Fitbit (FIT +1.03%) fell 3% in pre-market trading after it was dowmgraded to ‘Underweight’ from ‘Sector Weight’ at Pacific Crest.

Targa Resources (TRGP +4.90%) was downgraded to ‘Hold’ from ‘Buy’ at Stifel.

Incyte (INCY +4.64%) was upgraded to ‘Outpeform’ from ‘Market Perform’ at Raymond James with a 12-month target price of $ 115.

eBay (EBAY -0.28%) was upgraded to ‘Buy’ from ‘Hold’ at Deutsche Bank.

Progress Software (PRGS +1.61%) tumbled 10% in after-hours trading after it reported Q3 adjusted EPS of 44 cents, below consensus of 45 cents, and said it sees Q4 adjusted EPS of 55 cents-58 cents, on the low end of consensus of 58 cents.

Vertex Pharmaceuticals (VRTX -0.31%) lost 2% in after-hours trading after it cut its Orkambi revenue view to $ 950 million-$ 990 million from a prior view of $ 1.0 billion-$ 1.1 billion.

Transocean (RIG +6.37%) may open lower today after Carl Icahn said he reduced his position in the company to 5.45 million shares from 21.5 million shares on June 30 for tax purposes.

Vulcan Materials (VMC +1.26%) slipped almost 1% in after-hours trading after it said it sees 2016 adjusted Ebitda trending toward $ 1 billion, below consensus of $ 1.09 billion.

Himax Technologies (HIMX -6.85%) gained nearly 2% in after-hours trading after it was rated a new ‘Buy’ at Roth Capital with a price target of $ 10.

Pier 1 Imports (PIR +2.15%) lost 1% in after-hours trading after it cut its view on full-year adjusted EPS to 24 cents-32 cents from a June 29 view of 32 cents-40 cents.

Globalstar (GSAT unch) rose over 3% in after-hours trading after it said initial test flight results “indicated continuous communication” in the testing of its ADS-B Link Augmentation System in a NASA test flight.

Aegerion Pharmaceuticals (AEGR -9.45%) jumped over 20% in after-hours trading after Japan’s Ministry of Health, Labor & Welfare approved Aegerion’s Juxtapid capsules for patients with homozygous familial hypercholesterolemia.

MARKET COMMENTS

Dec E-mini S&Ps (ESZ16 -0.03%) this morning are down -1.50 points (-0.07%). Wednesday’s closes: S&P 500 +0.53%, Dow Jones +0.61%, Nasdaq +0.18%. The S&P 500 on Wednesday closed higher on a rally in energy producer stocks on the +5.57% surge in crude oil prices seen after news that OPEC agreed in principle to limit oil production. Stocks were also boosted by the +0.6% increase in U.S. capital spending (Aug capital goods orders nondefense ex-aircraft), stronger than expectations of -0.1%. Stocks were undercut by Fed Chair Yellen’s comment that most FOMC members believe an interest rate increase is needed this year.

Dec 10-year T-notes (ZNZ16 -0.12%) this morning are down -5.5 ticks. Wednesday’s closes: TYZ6 -3.00, FVZ6 -1.25. Dec 10-year T-notes on Wednesday settled mildly lower. T-note prices were undercut by a rally in stocks and the stronger-than-expected U.S. Aug durable goods orders report. T-notes were also undercut by Fed Chair Yellen’s hawkish comment that a majority of FOMC members believe a rate hike will be necessary this year. In addition, San Francisco Fed President Williams said the U.S. economy can “handle” a rate hike.

The dollar index (DXY00 +0.06%) this morning is up +0.119 (+0.12%). EUR/USD (^EURUSD) is up +0.0001 (+0.01%). USD/JPY (^USDJPY) is up +0.75 (+0.74%) at a 1-week high. Wednesday’s closes: Dollar index -0.004 (unch), EUR/USD +0.0002 (+0.02%), USD/JPY +0.26 (+0.26%). The dollar index on Wednesday closed little changed. The dollar was boosted by the smaller-than-expected decline in U.S. Aug durable goods orders and Fed Chair Yellen’s comment that most FOMC participants see a rate hike as likely this year.

Nov WTI crude oil (CLX16 -0.09%) this morning is down -28 cents (-0.60%) and Nov gasoline (RBX16 -0.91%) is down -0.0181 (-1.26%). Wednesday’s closes: Nov crude +2.49 (+5.57%), Nov gasoline +0.0777 (+5.70%). Nov crude oil and gasoline on Wednesday closed higher with Nov crude at a 2-week high. Crude oil prices were boosted by OPEC’s surprise preliminary agreement to cut its oil production to 32.5 million bpd, which would be its first output cut in 8 years. Crude oil prices were also boosted by the unexpected -1.88 million bbl decline in EIA crude inventories to a 7-1/2 month low (vs expectations of +3.0 million bbl) and the -631,000 bbl decline in Cushing crude oil inventories to a 9-month low. Crude oil prices were undercut by a stronger dollar and by the +2.03 million bbl increase in EIA gasoline stockpiles, more than expectations of +500,000 bbl.

GLOBAL EVENT CALENDAR 09/29/2016
Thursday, Sep 29
US0500 ETPhiladelphia Fed President Patrick Harker (non-voter) delivers a speech on the economic outlook at the Global Interdependence Center in Dublin, Ireland.
0830 ETWeekly initial unemployment claims expected +8,000 to 260,000, previous -8,000 to 252,000. Weekly continuing claims expected +16,000 to 2.129 million, previous -36,000 to 2.113 million.
0830 ETRevised Q2 GDP expected +1.3% (q/q annualized), previous +1.1%. Q2 personal consumption expected unrevised at +4.4%. Q2 GDP price index expected unrevised at +2.3%. Q2 core PCE expected unrevised at +1.8% q/q.
0830 ETAug wholesale inventories expected unch m/m, Jul unch m/m.
0830 ETUSDA weekly Export Sales.
0850 ETAtlanta Fed President Dennis Lockhart (non-voter) speaks at the 2016 Future of Florida Forum.
1000 ETFed Governor Jerome Powell delivers a keynote address at the research conference Community Banking in the 21st Century.
1000 ETAug pending home sales expected unch m/m, Jul +1.3% m/m and -2.2% y/y.
1400 ETMinneapolis Fed President Neel Kashkari (non-voter) speaks during a town hall event in Rapid City, SD.
1600 ETFed Chair Janet Yellen speaks via video link to a forum for minority bankers hosted by the Kansas City Fed.
Friday, Sep 30
US0830 ETAug personal spending expected +0.1%, Jul +0.3%. Aug personal income expected +0.2%, Jul +0.4%. Aug PCE deflator expected +0.2% m/m and +0.9% y/y, Jul unch m/m and +0.8% y/y. Aug core PCE deflator expected +0.2% m/m and +1.7% y/y, Jul +0.1% m/m and +1.6% y/y.
0945 ETSep Chicago PMI expected +0.5 to 52.0, Aug -4.3 to 51.5.
1000 ETFinal-Sep University of Michigan U.S. consumer sentiment index expected +0.2 to 90.0, prelim-Sep unch at 89.8.
1200 ETUSDA Q3 quarterly grain stocks.
1200 ETUSDA Q3 Hogs & Pigs inventory.
U.S. STOCK CALENDAR 09/29/2016
CompanyTickerTimeEvent DescriptionPeriodEstimate
Philip Morris International IncPM US2:55Investor Day – Day 1Y 2016
PepsiCo IncPEP US6:30Q3 2016 Earnings ReleaseQ3 20161.318
Accenture PLCACN US6:59Q4 2016 Earnings ReleaseQ4 20161.301
ConAgra Foods IncCAG US7:30Q1 2017 Earnings ReleaseQ1 20170.478
PepsiCo IncPEP US8:00Q3 2016 Earnings CallQ3 2016
Accenture PLCACN US8:00Q4 2016 Earnings CallQ4 2016
ConAgra Foods IncCAG US9:30Q1 2017 Earnings CallQ1 2017
Veeva Systems IncVEEV US13:00Analyst and Investor DayY 2016
Celgene CorpCELG US13:30R&D DayY 2016
Costco Wholesale CorpCOST US16:15Q4 2016 Earnings ReleaseQ4 20161.726
Costco Wholesale CorpCOST US17:00Q4 2016 Earnings CallQ4 2016
Equifax IncEFX USInvestor Meeting – StockholmY 2016
Equifax IncEFX USInvestor Meeting – AmsterdamY 2016
Darden Restaurants IncDRI USAnnual General MeetingY 2016
Ameren CorpAEE USInvestor MeetingY 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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