US : Pre Market News – 17 Oct 2016
Mon Oct 17 2016
Nikki Bailey (257 articles)
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US : Pre Market News – 17 Oct 2016

NEW YORK :

PREMARKET WORLD NEWS

Dec E-mini S&Ps (ESZ16 -0.08%) are down -0.26% and European stocks are down -0.47% on speculation the Fed may allow inflation to run above target to spur economic growth after Fed Chair Yellen said Friday that there are “plausible ways” that running the economy hot for a while could repair some damage to growth caused by the recession. Her comments caused 10-year bond yields in England and Germany to shoot up to 3-3/4 month highs. Weakness in crude oil (CLX16 +0.24%) and copper prices (HGZ16 +0.40%) has also undercut energy and raw-material producing stocks with Nov WTI crude down -0.22% and Dec copper down -0.01% at a 1-month low. Asian stocks settled mixed: Japan +0.26%, Hong Kong -0.84%, China -0.74%, Taiwan +0.12%, Australia -0.83%, Singapore +0.07%, South Korea +0.43%, India -0.52%. The Chinese yuan fell to a fresh 6-year low of 6.7402 on speculation the PBOC will let the yuan weaken in an attempt to revive economic growth and bolster exports.

The dollar index (DXY00 -0.05%) is down -0.04%. EUR/USD (^EURUSD) is up +0.18%. USD/JPY (^USDJPY) is down -0.12%.

Dec 10-year T-note prices (ZNZ16 -0.02%) are down -0.5 of a tick.

Boston Fed President Rosengren (voter) argued that tightening monetary policy sooner would help the labor market closer to full employment for a longer period than if the Fed allows it to overshoot. “The risks have changed in terms of overshooting what I think is full employment with implications for potential imbalances. Those imbalances might result in a reaction by the Fed that we end up having to tighten more quickly than I would like.”

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Oct Empire manufacturing index (expected +2.99 to 1.00, Sep +2.22 to -1.99), (2) Sep industrial production (expected +0.2%, Aug -0.4%) (3) USDA weekly grain export inspections, (4) USDA Weekly Crop Progress.

S&P 500 companies that report earnings today include: Bank of America (consensus $ 0.34), Schwab (0.33), IBM (3.23), JB Hunt (1.02), Hasbro (1.74) United Continental Holdings (3.06), Netflix (0.06).

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

Equity conferences during the remainder of this week include: 4th Annual Private Wealth Latin America and the Caribbean Forum on Tue

PREMARKET U.S. STOCKS

Dunkin’ Brands Group (DNKN +0.94%) was downgraded to ‘Sector Perform’ from ‘Outperform’ on valuation by RBC Capital Markets.

JPMorgan Chase (JPM -0.32%) was downgraded to ‘Hold’ from ‘Buy’ at Independent Research GmbH with a 12-month price target of $ 77.

Whirlpool (WHR -0.02%) was downgraded to ‘Neutral’ from ‘Buy’ at MKM Partners with a 12-month target price of $ 176.

Groupon (GRPN +2.24%) was upgraded to ‘Outperform’ from ‘Neutral’ at Wedbush.

Marathon Oil (MRO -1.35%) was downgraded to ‘Equal-weght’ from ‘Overweight’ at Barclays with a target price of $ 17.

Newmont Mining (NEM -1.67%) was upgraded to ‘Overweight’ from ‘Equal-weight’ at Barclays with a target price of $ 45.

Qualys (QLYS +0.53%) was upgraded to ‘Buy’ from ‘Neutral’ at DA Davidson with a 12-month target price of $ 47.

GameStop (GME -0.35%) said it expects to sell out of PlayStation Virtual Reality goggles and has asked Sony for more of the goggles.

Leven Capital boosted its stake in Fluidigm (FLDM -4.08%) to 25.2% from 19.6% and is the largest holder in the company.

Quotient Ltd. (QTNT +2.42%) jumped 5% in after-hours trading after it secured $ 120 million in debt financing in a private placement of 12% senior secured notes due 2023.

People with knowledge of the matter said CBS (CBS -0.24%) is close to hiring JPMorgan Chase and Goldman Sachs to advise it on a potential merger with Viacom (VIA -0.25%) .

Quality Systems (QSII +2.50%) climbed over 4% in after-hours trading after DealReporter said it had hired UBS earlier this year to look for potential buyers.

MARKET COMMENTS

Dec E-mini S&Ps (ESZ16 -0.08%) this morning are down -5.50 points (-0.26%). Friday’s closes: S&P 500 +0.02%, Dow Jones +0.22%, Nasdaq +0.11%. The S&P 500 on Friday closed slightly higher on the strong U.S. Sep retail sales report of +0.6% and +0.5% ex-autos and on reduced Chinese economic concerns after China Sep PPI unexpectedly rose +0.1% y/y, the first increase in 4-1/2 years. Stocks were undercut by the unexpected -3.3 point decline in the Oct University of Michigan U.S. consumer sentiment index to a 13-month low of 87.9. In addition, the U.S. Sep PPI report of +0.3% m/m and +0.7% y/y was slightly stronger than market expectations and bolstered the case for a Fed rate hike.

Dec 10-year T-notes (ZNZ16 -0.02%) this morning are down -0.5 of a tick. Friday’s closes: TYZ6 -10.50, FVZ6 -3.50. Dec 10-year T-notes on Friday closed lower on the strong increase in U.S. Sep retail sales and on Fed Chair Yellen’s comments that the Fed should perhaps allow a “high-pressure” economy. T-notes found support on the decline in the Oct University of Michigan U.S. consumer sentiment index to a 13-month low.

The dollar index (DXY00 -0.05%) this morning is down -0.041 (-0.04%). EUR/USD (^EURUSD) is up +0.0020 (+0.18%). USD/JPY (^USDJPY) is down -0.13 (-0.12%). Friday’s closes: Dollar index +0.503 (+0.52%), EUR/USD -0.0084 (-0.76%), USD/JPY +0.47 (+0.45%). The dollar index on Friday closed higher on the strong increase in U.S. Sep retail sales, which bolstered the case for a Fed rate hike, and on Fed Chair Yellen’s comments about possibly allowing a “high pressure” economy.

Nov WTI crude oil (CLX16 +0.24%) this morning is down -11 cents (-0.22%) and Nov gasoline (RBX16 +0.63%) is up +0.0011 (+0.07%). Friday’s closes: Nov crude -0.09 (-0.18%), Nov gasoline +0.0186 (+1.27%). Nov crude oil and gasoline on Friday settled mixed. Crude oil prices were undercut by a stronger dollar and by negative carryover from Thursday’s increase in U.S. oil inventories by +4.85 million bbl, the first increase in six weeks. Crude oil prices were boosted by the recovery in the crack spread, which signals stronger refinery demand for crude to refine into gasoline and other petroleum products.

GLOBAL EVENT CALENDAR 10/17/2016
Monday, Oct 17
US0830 ETOct Empire manufacturing survey general business conditions expected +2.99 to 1.00, Sep +2.22 to -1.99.
0915 ETSep industrial production expected +0.2%, Aug -0.4%. Sep manufacturing production expected +0.2%, Aug -0.4%, Sep capacity utilization expected +0.1 to 75.6%, Aug -0.4 to 75.5%.
1100 ETUSDA weekly grain export inspections.
1600 ETUSDA Weekly Crop Progress.
Tuesday, Oct 18
US0830 ETSep CPI expected +0.3% m/m and +1.5% y/y, Aug +0.2% m/m and +1.1% y/y. Sep CPI ex food & energy expected +0.2% m/m and +2.3% y/y, Aug +0.3% m/m and +2.3% y/y.
1000 ETOct NAHB housing market index expected -2 to 63, Sep +6 to 65.
U.S. STOCK CALENDAR 10/17/2016
CompanyTickerTimeEvent DescriptionPeriodEstimate
Charles Schwab Corp/TheSCHW USBef-mktQ3 2016 Earnings ReleaseQ3 20160.334
JB Hunt Transport Services IncJBHT USBef-mktQ3 2016 Earnings ReleaseQ3 20161.02
Hasbro IncHAS US6:30Q3 2016 Earnings ReleaseQ3 20161.744
Bank of America CorpBAC US6:45Q3 2016 Earnings ReleaseQ3 20160.335
Bank of America CorpBAC US8:30Q3 2016 Earnings CallQ3 2016
Hasbro IncHAS US8:30Q3 2016 Earnings CallQ3 2016
International Business Machines CorpIBM US16:00Q3 2016 Earnings ReleaseQ3 20163.233
Netflix IncNFLX US16:05Q3 2016 Earnings ReleaseQ3 20160.057
International Business Machines CorpIBM US17:00Q3 2016 Earnings CallQ3 2016
Netflix IncNFLX US17:00Q3 2016 Earnings CallQ3 2016
United Continental Holdings IncUAL USAft-mktQ3 2016 Earnings ReleaseQ3 20163.059
American Express CoAXP USCredit-card Charge-offs and Delinquencies
JPMorgan Chase & CoJPM USCredit-card Charge-offs and Delinquencies
Bank of America CorpBAC USCredit-card Charge-offs and Delinquencies
Capital One Financial CorpCOF USCredit-card Charge-offs and Delinquencies
Alliance Data Systems CorpADS USCredit-card Charge-offs and Delinquencies
Discover Financial ServicesDFS USCredit-card Charge-offs and Delinquencies
Synchrony FinancialSYF USCredit-card Charge-offs and Delinquencies

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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