Live Index – Wed, 19 Mar 2014 Premarket
June E-mini S&Ps (ESM14 +0.05%) this morning are up +0.05% and European stocks are up +0.21% ahead of the outcome of the Fed’s 2-day policy meeting later today where expectations are for the Fed to taper QE3 by another $ 10 billion and switch to qualitative guidance for assessing interest rates. Asian stocks closed mixed: Japan +0.36%, Hong Kong -0.07%, China -0.81%, Taiwan -0.49%, Australia +0.21%, Singapore -0.42%, South Korea -0.225, India unchanged. Chinese stocks closed lower after a private property developer, Zhejiang Xingrun Real Estate Co., collapsed with 3.5 billion yuan ($ 565 million) of debt, which fuels concern China’s real-estate industry may face additional defaults. Commodity prices are mixed. Apr crude oil (CLJ14 -0.16%) is down -0.09%. Apr gasoline (RBJ14 -0.54%) is down -0.55%. Apr gold (GCJ14 -0.95%) is down -0.89% at a 1-week low on expectations for the Fed to taper stimulus later today. May copper (HGK14 -0.73%) is down -0.66%. Agriculture and livestock prices are mixed. The dollar index (DXY00 +0.04%) is up +0.01%. EUR/USD (^EURUSD) is down -0.05%. USD/JPY (^USDJPY) is up +0.13%. June T-note prices (ZNM14 +0.03%) are up +1.5 ticks.
UK Feb jobless claims fell -34,600, more than expectations of -25,000, and Jan was revised higher to show a decline of -33,900 in jobless claims, more than the -27,600 originally reported. The Feb claimant count rate fell -0.1 to 3.5%, right on expectations and the lowest in 5-1/4 years.
The UK Jan ILO unemployment rate was unch at 7.2% in the three months through Jan, right on expectations. Jan avg weekly earnings rose +1.4% 3-mo/year-over-year, higher than expectations of +1.3% 3-mo/year-over-year. Jan avg weekly earnings ex-bonus rose +1.3% 3-mo/year-over-year, higher than expectations of +1.2% 3-mo/year-over-year
The Japan Feb trade balance shrank to a deficit of -800.3 billion yen, a bigger deficit than expectations of -600.0 billion yen, but less than Jan’s record deficit of -2.791 trillion yen. Feb exports rose +9.8% y/y, less than expectations of +12.5% y/y, and Feb imports rose +9.0% y/y, more than expectations of +7.2% y/y.
Japan Feb nationwide department store sales rose +3.0% y/y, the biggest increase in 8-months.
The Japan Jan leading index CI was revised upward to 113.1 from the previously reported 112.2, the highest in 7-2/3 years. The Jan coincident index was revised upward to 115.2 from 114.8, the highest in 6-1/4 years.
The Japan Jan all-industry activity index rose +1.0% m/m, slightly less than expectations of +1.1% m/m.
The market is expecting the FOMC at its 2-day meeting that concludes today to cut QE3 by another $ 10 billion to $ 55 per month. Today’s U.S. Q4 current account deficit is expected to narrow to -$ 88.0 billion from -$ 94.84 billion in Q3. There are 5 of the Russell 1000 companies report earnings today: General Mills (consensus $ 0.62), FedEx (1.46), Cintas (0.69), Jabil Circuit (0.11), Guess (0.79).
Equity conferences during the remainder of this week include: Consumer Analyst Group of Europe (CAGE) Conference on Mon-Wed, Bank of America Merrill Lynch Global Industrials & EU Auto Conference on Tue-Thu, Goldman Sachs TMT Leveraged Finance Conference on Wed, International Strategy & Investment Retail Summit on Wed, ISI Retail Summit on Wed-Thu, Gabelli & Company Specialty Chemicals Conference on Thu, Bloomberg Mexico Economic Summit on Thu, and Capital Link Invest in International Shipping Forum on Thu.
Citigroup said it remains “high-conviction buyers” of Rambus (RMBS +6.56%) stock, calling the company its top small cap Specialty Semi pick.
General Mills (GIS +0.56%) reported Q3 EPS of 62 cents, right on expectations.
Orbitz (OWW +1.02%) was downgraded to ‘Sell’ from ‘Neutral’ at Goldman due to rich valuation.
Elbit Systems (ESLT +0.80%) reported Q4 EPS of $ 1.26, weaker than consensus of $ 1.41.
FedEx (FDX +0.72%) reported Q3 EPS pf $ 1.23, well below consensus of $ 1.46.
Teva (TEVA +1.11%) was upgraded to ‘Neutral’ from ‘Sell’ at Goldman Sachs.
Center Coast Capital reported a 15.2% passive stake in Midcoast Energy (MEP -1.74%) .
Exact Science (EXAS +9.82%) jumped over 9% in after-hours trading after data from the Mayo Clinic showed Cologuard showed an ‘unprecedented’ rate of cancer detection in results of a clinical trial. Cologuard, is a noninvasive DNA test for the early detection of colorectal precancer and cancer.
Adage Capital Partners reported a 8.17% passive stake in Kindred Biosciences (KIN +3.01%) .
Oracle (ORCL +1.62%) slipped 6% in after-hours trading after it reported Q3 adjusted EPS of 68 cents, below consensus of 70 cents.
June E-mini S&Ps (ESM14 +0.05%) this morning are up +1.00 point (+0.05%). The S&P 500 on Tuesday closed higher. Supportive factors included (1) comments from Russian President Putin that reduced concern the Ukraine crisis will escalate when he said Russia has no plans to split up Ukraine, and (2) U.S. housing data that bolstered optimism in the economic outlook after Feb building permits, a proxy of future homebuilding activity, rose +7.7% to 1.018 million, stronger than expectations of +1.6% to 960,000. Closes: S&P 500 +0.72%, Dow Jones +0.55%, Nasdaq +1.20%.
Jun 10-year T-notes (ZNM14 +0.03%) this morning are up +1.5 ticks. Jun 10-year T-note futures prices on Tuesday closed higher on short-covering ahead of the outcome of 2-day FOMC meeting on Wed. Another supportive factor for T-notes was signs of increased foreign demand for U.S. debt after Treasury data showed the stake of Treasury holdings by foreign buyers rose +$ 30.7 billion in Jan, the sixth consecutive monthly increase, to a record $ 5.83 trillion. Closes: TYM4 +6.00, FVM4 +4.00.
The dollar index (DXY00 +0.04%) this morning is up +0.010 (+0.01%). EUR/USD (^EURUSD) is down -0.0007 (-0.05%). USD/JPY (^USDJPY) is up +0.13 (+0.13%). The dollar index on Tuesday closed higher. Gains in the dollar were muted after stocks rallied and reduced the dollar’s safe-haven demand when Russian President Putin said he isn’t seeking to expand occupation of Ukraine. Gains in EUR/USD were muted after the German Mar ZEW survey expectations of economic growth fell -9.1 to a 7-month low of 46.6. Closes: Dollar index +0.029 (+0.04%), EUR/USD +0.00123 (+0.09%), USD/JPY -0.331 (-0.33%).
Apr WTI crude oil (CLJ14 -0.16%) this morning is down -9 cents (-0.09%) and Apr gasoline (RBJ14 -0.54%) is down -0.0160 (-0.55%). Apr crude and gasoline prices on Tuesday closed higher. Supportive factors included (1) comments from Russian President Putin who said Russia doesn’t intend to expand its occupation of Ukraine, which reduced concern the Ukraine crisis will escalate, and (2) expectations for Wednesday’s weekly EIA inventory data to show crude supplies at Cushing, OK, the delivery point for WTI futures, declined for a seventh week. Apr gasoline posted a 5-week low on speculation that U.S. gasoline production will ramp up as refineries resume output after being shuttered for seasonal maintenance. Closes: CLJ4 +1.62 (+1.65%), RBJ4 +0.0217 (+0.75%).
|US||0700 ET||Weekly MBA mortgage applications, previous -2.1% with purchase sub-index -0.5% and refi sub-index -3.1%.|
|0830 ET||Q4 current account balance expected -$ 88.0 billion, Q3 -$ 94.84 billion.|
|1030 ET||EIA Weekly Petroleum Status Report.|
|1400 ET||FOMC policy announcement. Federal funds target rate expected unchanged at zero to 0.25%. FOMC expected to cut QE3 by -$ 10 billion to $ 55 billion, last meeting -$ 10 billion cut to $ 65 billion ($ 35 billion of Treasuries and $ 30 billion of mortgage securities).|
|1430 ET||Fed Chair Janet Yellen holds press conference following FOMC meeting.|
|JPN||0030 ET||Japan Jan all-industry activity index expected +1.1% m/m, Dec -0.1% m/m.|
|0030 ET||Revised Japan Jan leading index CI, previous 112.2. Revised Jan coincident index, previous 114.8.|
|0130 ET||Japan Feb nationwide department store sales, Jan +2.9% y/y.|
|UK||0530 ET||Minutes of the Mar 5-6 BOE meeting.|
|0530 ET||UK Feb jobless claims change expected -25,000, Jan -27,600. Feb claimant count rate expected unch at 3.5%, Jan 3.6%.|
|0530 ET||UK Jan avg weekly earnings expected +1.3% 3-mon avg y/y, Dec +1.1% 3-mon avg y/y. Jan weekly earnings ex-bonus expected +1.2% 3-mon avg y/y, Dec +1.0% 3-mon avg y/y. Jan ILO unemployment rate expected unch at 7.2% 3-months, Dec +7.2% 3-months.|
|EUR||0600 ET||Eurozone Jan construction output, Dec +0.9% m/m and -0.2% y/y.|
|0600 ET||Eurozone Q4 labor costs, Q3 +1.0% y/y|
|Company Name||Ticker||Time||Event Description||Period||Estimate|
|General Mills Inc||GIS US||Bef-mkt||Q3 2014 Earnings Release||Q3 2014||0.615|
|Covidien PLC||COV US||6:30||Annual General Meeting||Y 2013|
|FedEx Corp||FDX US||7:30||Q3 2014 Earnings Release||Q3 2014||1.461|
|Principal Financial Group Inc||PFG US||8:00||Roadshow-Europe-Day 1||Y 2014|
|WR Grace & Co||GRA US||8:00||Investor Day||Y 2014|
|FedEx Corp||FDX US||8:30||Q3 2014 Earnings Call||Q3 2014|
|General Mills Inc||GIS US||8:30||Q3 2014 Earnings Call||Q3 2014|
|Dow Chemical Co/The||DOW US||9:00||Strategy Meeting – Day 1||Y 2014|
|First Solar Inc||FSLR US||9:00||Analyst Meeting||Y 2014|
|Agilent Technologies Inc||A US||11:00||Annual General Meeting||Y 2014|
|Starbucks Corp||SBUX US||13:00||Annual General Meeting||Y 2014|
|Jabil Circuit Inc||JBL US||16:30||Q2 2014 Earnings Call||Q2 2014|
|Guess? Inc||GES US||16:30||Q4 2014 Earnings Call||Q4 2014|
|Hewlett-Packard Co||HPQ US||17:00||Annual General Meeting||Y 2014|
|Cintas Corp||CTAS US||17:00||Q3 2014 Earnings Call||Q3 2014|
|Cintas Corp||CTAS US||Aft-mkt||Q3 2014 Earnings Release||Q3 2014||0.694|
|Jabil Circuit Inc||JBL US||Aft-mkt||Q2 2014 Earnings Release||Q2 2014||0.112|
|Guess? Inc||GES US||Aft-mkt||Q4 2014 Earnings Release||Q4 2014||0.794|
|Raymond James Financial Inc||RJF US||February 2014 Sales and Revenue Release – Operating Data||2014|
Rules of Discussion on Live Index
2. Member's comments should lead to value addition in forum discussion.
3. If anyone is found making repetitive Explicit/Abusive/Racial comments, his account shall be banned and old posts will be deleted.