US : Pre Market News – 20 Oct 2016
Thu Oct 20 2016
Nikki Bailey (262 articles)
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US : Pre Market News – 20 Oct 2016

NEW YORK :

PREMARKET WORLD NEWS

Dec E-mini S&Ps (ESZ16 +0.12%) are up +0.14% on better-than-expected earnings results from American Express and European stocks are up +0.28% ahead of today’s ECB meeting, where investors will scour comments from ECB President Draghi for any changes to the central bank’s QE program. Stock gains were limited as a -1.10% decline in crude oil prices (CLX16 -1.09%) undercut energy producing stocks. The dollar rose in overnight trading on hawkish comments from New York Fed President Dudley who reiterated that he expects a Fed interest rate increase by the end of the year. Asian stocks settled mostly higher: Japan +1.39%, Hong Kong +0.30%, China -0.01%, Taiwan +0.36%, Australia +0.12%, Singapore -0.07%, South Korea +0.08%, India +0.52%. Japan’s Nikkei Stock Index rallied to a 4-1/2 month high as exporters strengthened after the yen fell for the first time in four sessions.

The dollar index (DXY00 +0.01%) is up +0.02%. EUR/USD (^EURUSD) is up +0.04%. USD/JPY (^USDJPY) is up +0.25%.

Dec 10-year T-note prices (ZNZ16 -0.01%) are up +0.5 of a tick.

New York Fed President Dudley (voter) said the Fed is “reasonably close” to its twin mandates on employment and inflation and “if the economy stays on the current trajectory, I do expect to see an interest-rate increase later this year.”

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly initial unemployment claims (expected +4,000 to 250,000, previous unch at 246,000) and continuing claims (expected +7,000 to 2.053 million, previous -16,000 to 2.046 million), (2) Oct Philadelphia Fed business outlook index (expected -7.5 to 5.3, Sep +10.8 to 12.8), (3) Sep existing home sales (expected +0.4% to 5.35 million, Aug -0.9% to 5.33 million), (4) Sep leading indicators (expected +0.2%, Aug -0.2%), (5) Treasury auctions $ 5 billion 30-year TIPS, and (6) USDA weekly Export Sales.

Notable S&P 500 earnings reports today include: Microsoft (consensus $ 0.68), PayPal (0.35), American Airlines (1.69), PulteGroup (0.44), Walgreens (0.99), Verizon (0.99), Schlumberger (0.22).

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

Equity conferences during the remainder of this week include: none.

PREMARKET U.S. STOCKS

American Express (AXP +1.95%) jumped over 5% in pre-market trading after it reported Q3 EPS of $ 1.24, well above consensus of 96 cents.

United Rentals (URI -1.13%) rose nearly 5% in after-hours trading after it lifted its lower end of its 2016 revenue estimate to $ 5.65 billion-$ 5.75 billion from a July 20 view of $ 5.60 billion-$ 5.80 billion.

Mattel (MAT -0.29%) rallied over 4% in after-hours trading after it reported Q3 net sales of $ 1.8 billion, above consensus of $ 1.78 billion.

eBay (EBAY +2.78%) dropped 7% in after-hours trading after it said it sees Q4 adjusted EPS continuing operations of 52 cents-54 cents, at the lower end of consensus of 54 cents.

Kinder Morgan (KMI +2.63%) was upgraded to ‘Outperform’ from ‘Neutral’ at Credit Suisse with a target price of $ 26.

Manitowoc (MTW +2.37%) tumbled 8% in after-hours trading after it said orders and backlog were down double digits during Q3 and it is temporarily shutting down some mobile output lines in Q4.

BJ’s Restaurants (BJRI +0.76%) dropped 6% in after-hours trading after it reported Q3 adjusted EPS of 30 cents, below consensus of 32 cents, and said comparable restaurant sales were down -3.4%, weaker than consensus of -1.9%.

FMC Technologies (FTI +1.09%) gained over 1% in after-hours trading after it reported Q3 EPS continuing operations of 35 cents, better than consensus 23 cents.

East West Bancorp (EWBC +1.25%) rose 2% in after-hours trading after it reported Q3 EPS of 76 cents, higher than consensus of 69 cents, and then raised guidance on full-year EPS to $ 2.91-$ 2.93 from a prior view of $ 2.83-$ 2.87.

Core Laboratories NV (CLB +2.78%) fell over 1% in after-hours trading after it said it sees Q4 EPS of 38 cents-40 cents, weaker than consensus of 41 cents.

Landstar Systems (LSTR unch) climbed nearly 5% in after-hours trading after it said it sees Q4 EPS of 85 cents-90 cents, higher than consensus of 82 cents.

WD-40 Co. (WDFC -2.50%) gained over 1% in after-hours trading after it reported Q4 EPS of 99 cents, above consensus of 82 cents.

DXP Enterprises (DXPE +0.07%) sank 17% in after-hours trading after it reported preliminary Q3 sales of $ 228 million-$ 231 million, below consensus of $ 250.7 million.

Select Comfort (SCSS +2.13%) plunged over 15% in after-hours trading after it reported Q3 WPS of 56 cents, weaker than consensus of 57 cents, and then lowered guidance on full-year EPS to $ 1.15-$ 1.25 from a prior view of $ 1.25-$ 1.45.

MARKET COMMENTS

Dec E-mini S&Ps (ESZ16 +0.12%) this morning are up +3.00 points (+0.14%). Wednesday’s closes: S&P 500 +0.22%, Dow Jones +0.22%, Nasdaq -0.06%. The S&P 500 on Wednesday closed higher on a rally in energy producer stocks as the price of crude oil jumped by +2.6% to a 1-1/4 year high. Stocks were also boosted by +6.3% increase in U.S. Sep building permits, a proxy for future construction, to 1.225 million, stronger than expectations of +1.1% to 1.165 million and the most in 10 months. Stocks were undercut by the unexpected -9.0% decline in U.S. Sep housing starts to a 1-1/2 year low of 1.047 million, weaker than expectations of +2.9% to 1.175 million.

Dec 10-year T-notes (ZNZ16 -0.01%) this morning are up +0.5 of a tick. Wednesday’s closes: TYZ6 -1.00, FVZ6 unch. Dec 10-year T-notes on Wednesday fell back from a 2-week high and closed lower on the upbeat Fed Beige Book that bolstered the case for a Fed rate hike. T-notes were also undercut by reduced safe-haven demand with the rally in stocks. T-notes found support on the unexpected decline in U.S. Sep housing starts to a 1-1/2 year low.

The dollar index (DXY00 +0.01%) this morning is up +0.018 (+0.02%). EUR/USD (^EURUSD) is up +0.0004 (+0.04%). USD/JPY (^USDJPY) is up +0.26 (+0.25%). Wednesday’s closes: Dollar index +0.025 (+0.03%), EUR/USD -0.0007 (-0.06%), USD/JPY -0.43 (-0.41%). The dollar index on Wednesday closed higher on the Fed’s Beige Book that said “most districts indicated a modest or moderate pace of expansion,” which supports the case for a Fed interest rate increase sooner rather than later. The dollar was also boosted by the slide in EUR/USD to a 2-3/4 month low on long liquidation ahead of Thursday’s ECB meeting.

Nov WTI crude oil (CLX16 -1.09%) this morning is down -57 cents (-1.10%) and Nov gasoline (RBX16 -0.61%) is down -0.0105 (-0.69%). Wednesday’s closes: Nov crude +1.31 (+2.60%), Nov gasoline +0.0058 (+0.39%). Nov crude oil and gasoline on Wednesday closed higher with Nov crude at a 1-1/4 year high. Crude oil prices were boosted by comments from Saudi Arabia’s Minister of Energy and Industry, Khalid Al-Falih, who said that many nations have given “strong signals” that they are willing to join OPEC in cutting production to secure a continued improvement in oil prices. Crude oil was also boosted by the unexpected -5.25 million bbl draw in EIA crude inventories to an 8-1/2 month low versus expectations of +1.875 million bbl. In addition, Cushing crude oil inventories fell by -1.63 million bbl to a 10-month low.

GLOBAL EVENT CALENDAR 10/20/2016
Thursday, Oct 20
US0830 ETWeekly initial unemployment claims expected +4,000 to 250,000, previous unch at 246,000. Weekly continuing claims expected +7,000 to 2.053 million, previous -16,000 to 2.046 million.
0830 ETOct Philadelphia Fed business outlook survey expected -7.5 to 5.3, Sep +10.8 to 12.8.
0830 ETUSDA weekly Export Sales.
1000 ETSep existing home sales expected +0.4% to 5.35 million, Aug -0.9% to 5.33 million.
1000 ETSep leading indicators expected +0.2%, Aug -0.2%.
1100 ETTreasury announces amount of 2-year T-notes (previous $ 26 billion), 2-year floating-rate notes (previous $ 14 billion), 5-year T-notes (previous $ 34 billion) & 7-year T-notes (previous $ 28 billion) to be auctioned Oct 25-27.
1300 ETTreasury auctions $ 5 billion 30-year TIPS.
Friday, Oct 21
US1015 ETFed Governor Daniel Tarullo speaks on Pedagogy and Scholarship in a Post-Crisis World at Columbia Law School.
1430 ETSan Francisco Fed President John Williams (non-voter) delivers keynote address at the Federal Home Loan Banks 2016 conference.
1500 ETUSDA Sep Cold Storage.
1500 ETUSDA Sep Cattle on Feed.
U.S. STOCK CALENDAR 10/20/2016
CompanyTickerTimeEvent DescriptionPeriodEstimate
Alaska Air Group IncALK USBef-mktQ3 2016 Earnings ReleaseQ3 20162.068
American Airlines Group IncAAL USBef-mktQ3 2016 Earnings ReleaseQ3 20161.685
PulteGroup IncPHM USBef-mktQ3 2016 Earnings ReleaseQ3 20160.436
PPG Industries IncPPG USBef-mktQ3 2016 Earnings ReleaseQ3 20161.555
Snap-on IncSNA USBef-mktQ3 2016 Earnings ReleaseQ3 20162.154
Danaher CorpDHR US6:00Q3 2016 Earnings ReleaseQ3 20160.825
Bank of New York Mellon Corp/TheBK US6:30Q3 2016 Earnings ReleaseQ3 20160.809
Textron IncTXT US6:30Q3 2016 Earnings ReleaseQ3 20160.655
Fifth Third BancorpFITB US6:30Q3 2016 Earnings ReleaseQ3 20160.406
Quest Diagnostics IncDGX US6:45Q3 2016 Earnings ReleaseQ3 20161.353
Travelers Cos Inc/TheTRV US6:57Q3 2016 Earnings ReleaseQ3 20162.364
Walgreens Boots Alliance IncWBA US7:00Q4 2016 Earnings ReleaseQ4 20160.989
Verizon Communications IncVZ US7:30Q3 2016 Earnings ReleaseQ3 20160.985
Alliance Data Systems CorpADS US7:30Q3 2016 Earnings ReleaseQ3 20164.437
Bank of New York Mellon Corp/TheBK US8:00Q3 2016 Earnings CallQ3 2016
Danaher CorpDHR US8:00Q3 2016 Earnings CallQ3 2016
Illinois Tool Works IncITW US8:00Q3 2016 Earnings ReleaseQ3 20161.491
Textron IncTXT US8:00Q3 2016 Earnings CallQ3 2016
Prologis IncPLD US8:00Q3 2016 Earnings ReleaseQ3 20160.702
American Airlines Group IncAAL US8:30Q3 2016 Earnings CallQ3 2016
Verizon Communications IncVZ US8:30Q3 2016 Earnings CallQ3 2016
PulteGroup IncPHM US8:30Q3 2016 Earnings CallQ3 2016
Walgreens Boots Alliance IncWBA US8:30Q4 2016 Earnings CallQ4 2016
Quest Diagnostics IncDGX US8:30Q3 2016 Earnings CallQ3 2016
Alliance Data Systems CorpADS US8:30Q3 2016 Earnings CallQ3 2016
Union Pacific CorpUNP US8:45Q3 2016 Earnings ReleaseQ3 20161.404
Union Pacific CorpUNP US8:45Q3 2016 Earnings CallQ3 2016
Alcoa IncAA US9:00Investor MeetingY 2016
Nucor CorpNUE US9:00Q3 2016 Earnings ReleaseQ3 20160.903
Travelers Cos Inc/TheTRV US9:00Q3 2016 Earnings CallQ3 2016
Fifth Third BancorpFITB US9:00Q3 2016 Earnings CallQ3 2016
FMC Technologies IncFTI US9:00Q3 2016 Earnings CallQ3 2016
Illinois Tool Works IncITW US10:00Q3 2016 Earnings CallQ3 2016
Snap-on IncSNA US10:00Q3 2016 Earnings CallQ3 2016
Chesapeake Energy CorpCHK US10:00Analyst DayY 2016
United Rentals IncURI US11:00Q3 2016 Earnings CallQ3 2016
Alaska Air Group IncALK US11:30Q3 2016 Earnings CallQ3 2016
Prologis IncPLD US12:00Q3 2016 Earnings CallQ3 2016
Nucor CorpNUE US14:00Q3 2016 Earnings CallQ3 2016
PPG Industries IncPPG US14:00Q3 2016 Earnings CallQ3 2016
SL Green Realty CorpSLG US14:00Q3 2016 Earnings CallQ3 2016
People’s United Financial IncPBCT US16:00Q3 2016 Earnings ReleaseQ3 20160.23
PayPal Holdings IncPYPL US16:05Q3 2016 Earnings ReleaseQ3 20160.348
Microsoft CorpMSFT US16:09Q1 2017 Earnings ReleaseQ1 20170.683
KLA-Tencor CorpKLAC US16:15Q1 2017 Earnings ReleaseQ1 20171.04
KLA-Tencor CorpKLAC US17:00Q1 2017 Earnings CallQ1 2017
People’s United Financial IncPBCT US17:00Q3 2016 Earnings CallQ3 2016
E*TRADE Financial CorpETFC US17:00Q3 2016 Earnings CallQ3 2016
PayPal Holdings IncPYPL US17:00Q3 2016 Earnings CallQ3 2016
Schlumberger LtdSLB USAft-mktQ3 2016 Earnings ReleaseQ3 20160.22
E*TRADE Financial CorpETFC USAft-mktQ3 2016 Earnings ReleaseQ3 20160.388
Crown Castle International CorpCCI USAft-mktQ3 2016 Earnings ReleaseQ3 20161.108
Southwestern Energy CoSWN US17:30Q3 2016 Earnings ReleaseQ3 20160.043
Microsoft CorpMSFT US17:30Q1 2017 Earnings CallQ1 2017
Perrigo Co PLCPRGO USQ3 2016 Earnings ReleaseQ3 20161.589

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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