US : Pre Market News – 02 Nov 2016

Dec E-mini S&Ps (ESZ16 -0.02%) are down -0.20% and European stocks are down -0.89% at a 2-week low on angst ahead of next Tuesday’s U.S. Presidential election. Most polls have tightened up following the latest FBI investigation into Presidential candidate Clinton’s emails, which have boosted the chances of a Donald Trump presidency. Crude oil prices (CLZ16 -1.50%) are down -1.71% at a 1-month low, which has undercut energy producing stocks, after API data late Tuesday showed U.S crude stockpiles increased by 9.3 million bbl last week. Asian stocks settled lower: Japan -1.76%, Hong Kong -1.45%, China -0.63%, Taiwan -1.44%, Australia -1.16%, Singapore -0.23%, South Korea -1.23%, India -1.25%. China’s Shanghai Composite fell to a 1-week low and Japan’s Nikkei Stock Index fell to a 1-1/2 week low on negative carryover from a slump in U.S. stocks Tuesday. Japanese stocks were also undercut as Sony slid to a 2-month low after it reported weaker-than-expected quarterly profits.

The dollar index (DXY00 -0.28%) is down -0.18% at a 3-week low. EUR/USD (^EURUSD) is up +0.24% at a 3-week high. USD/JPY (^USDJPY) is down -0.69% at a 1-week low.

Dec 10-year T-note prices (ZNZ16 +0.19%) are up +7.5 ticks ahead of the results of today’s FOMC meeting.

The German Oct unemployment change fell -13,000, stronger than expectations of -1,000 and the biggest decline in 6 months. The German Oct unemployment rate unexpectedly fell 0.1 to 6.0%, stronger than expectations of no change at 6.1% and the lowest since German reunification in 1991.

The Eurozone Oct Markit manufacturing PMI was revised upward to 53.5 from the originally reported 53.3, the fastest pace of expansion in 2-3/4 years.

Key U.S. news today includes: (1) weekly MBA mortgage applications (previous -4.1% with purchase sub-index -6.9% and refi sub-index -2.3%), (2) Oct ADP employment (expected +165,000, Sep +154,000), (3) Oct New York ISM (Sep +2.1 to 49.6), (4) FOMC announces interest rate decision after 2-day meeting (rates expected unchanged), and (5) EIA Weekly Petroleum Status Report.

Notable S&P 500 earnings reports today include: Facebook (consensus $ 0.97), ADP (0.76), Anthem (2.47), Time Warner (1.37), Sepra Energy (0.95), Allstate (1.26), AIG (1.20), Marathon Oil (-0.20), Whole Foods Market (0.24), Transocean (0.14), Prudential Financial (2.49), MetLife (1.13), Wynn Resorts (0.73), First Solar (0.76), among others.

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

Equity conferences during the remainder of this week include: Needham Next-Gen Storage Networking Conference on Wed, Goldman Sachs Industrials Conference on Wed-Thu, BancAnalysts Association of Boston Conference on Thu-Fri.

Pfizer (PFE -2.02%) was downgraded to ‘Hold’ from ‘Buy’ at Argus.

Brocade (BRCD +6.04%) jumped 7% in pre-market trading after Broadcom agreed to acquire the company for $ 5.9 billion.

Electronic Arts (EA -0.87%) rose 5% in after-hours trading after it reported Q2 adjusted EPS of 53 cents, higher than consensus of 43 cents, and said it sees fiscal 2017 GAAP EPS of $ 2.69, above consensus of $ 2.63.

Illumina (ILMN +2.47%) slid 2% in after-hours trading after it cut its full-year adjusted EPS estimate to $ 3.27-$ 3.32 from a July 26 estimate of $ 3.48-$ 3.58.

Gilead Sciences (GILD +0.60%) lost nearly 1% in after-hours trading after it reported Q3 adjusted EPS of $ 2.75, weaker than consensus of $ 2.85.

Tableau Software (DATA +3.04%) sank 10% in after-hours trading after it reported Q3 revenue of $ 206.1 million, weaker than consensus of $ 213.8 million and below the lowest estimate of $ 210 million.

Papa John’s International (PZZA -0.91%) gained over 3% in after-hours trading after it reported Q3 EPS of 57 cents, better than consensus of 50 cents, and then raised its 2016 EPS estimate to $ 2.46-$ 2.52 from an August 2 view of $ 2.35-$ 2.45.

Cerner (CERN -2.12%) fell nearly 6% in after-hours trading after it reported Q3 adjusted EPS of 59 cents, below consensus of 60 cents, and then said it sees 2017 revenue of $ 5.2 billion-$ 5.45 billion, below consensus of $ 5.44 billion.

Square (SQ -1.16%) rallied nearly 5% in after-hours trading after it raised its 2016 adjusted revenue estimate to $ 677 million-$ 680 million from a prior view of $ 655 million-$ 670 million.

Herbalife (HLF -2.57%) lost 1% in after-hours trading after it reported Q3 revenue of $ 1.12 billion, less than consensus of $ 1.14 billion.

Etsy (ETSY -0.23%) rose 4% in after-hours trading after it said it sees full-year revenue up at least 30%, below estimates of 32% and CFO Kristina Salen said she will leave the company May 2017 to pursue other opportunities.

U.S. Steel (X -3.26%) dropped 7% in after-hours trading after it reported Q3 adjusted EPS of 40 cents, well below consensus of 84 cents, and then cut its full-year adjusted Ebitda view to $ 475 million from a July 26 estimate of $ 850 million.

AveXis (AVXS +1.07%) jumped over 15% in after-hours trading after it said it will conduct a study of its AVXS-101 in spinal muscular atrophy Type 1 and evaluate motor milestones in patients.

Oclaro (OCLR +0.41%) rallied over 7% in after-hours trading after it reported Q1 adjusted EPS of 14 cents, higher than consensus of 10 cents, and said it sees Q2 revenue of $ 146 million-$ 154 million, above consensus of $ 138 million.

Adeptus Health (ADPT -10.79%) plunged over 40% in after-hours trading after it reported Q3 adjusted EPS of 6 cents, well below consensus of 54 cents, and then cut its 2016 adjusted Ebitda view to $ 70 million-$ 80 million from a July estimate of $ 110 million-$ 115 million.

Dec E-mini S&Ps (ESZ16 -0.02%) this morning are down -4.25 points (-0.20%). Tuesday’s closes: S&P 500 -0.68%, Dow Jones -0.58%, Nasdaq -0.72%. The S&P 500 on Tuesday slumped to a 3-3/4 month low and closed lower on the jump in the VIX volatility index to a 1-1/2 month high on concern the new FBI investigation into U.S. Presidential candidate Clinton’s emails may cause her to lose the presidential election to candidate Trump, which is seen as bearish for equities. Stocks were also undercut by the unexpected -0.4% decline in U.S. Sep construction spending, weaker than expectations of +0.5%. Stocks opened higher on reduced Chinese economic concerns after the China Oct manufacturing PMI unexpectedly rose +0.8 to 51.2, stronger than expectations of -0.1 to 50.3 and the fastest pace of expansion in 2-1/4 years. Stocks were also boosted by the +0.4 point increase in the U.S. Oct ISM to 51.9, stronger than expectations of +0.2 to 51.7.

Dec 10-year T-notes (ZNZ16 +0.19%) this morning are up +7.5 ticks. Tuesday’s closes: TYZ6 +5.50, FVZ6 +4.50. Dec 10-year T-notes on Tuesday erased early losses and closed higher on increased safe-haven demand due to the sell-off in stock prices. T-notes were undercut by concern that the FOMC on Tuesday will shift to even more hawkish language in their post-meeting statement even if they do not raise interest rates. T-notes were also undercut by the stronger-than-expected U.S. Oct ISM manufacturing index report and reduced global economic concerns after China Oct manufacturing PMI unexpectedly expanded at the fastest pace in 2-1/4 years.

The dollar index (DXY00 -0.28%) this morning is down -0.179 (-0.18%) at a 3-week low. EUR/USD (^EURUSD) is up +0.0027 (+0.24%) at a 3-week high. USD/JPY (^USDJPY) is down -0.72 (-0.69%) at a 1-week low. Tuesday’s closes: Dollar index -0.746 (-0.76%), EUR/USD +0.0074 (+0.67%), USD/JPY -0.67 (-0.64%). The dollar index on Tuesday sold off to a 1-1/2 week low and closed lower on the Atlanta Fed’s cut in its U.S. Q4 GDP estimate to 2.3% from 2.7% and on long liquidation ahead of Wednesday’s results of the FOMC meeting.

Dec crude oil prices (CLZ16 -1.50%) are down -80 cents (-1.71%) at a fresh 1-month low and Dec gasoline (RBZ16 -0.80%) is down -0.0188 (-1.27%). Tuesday’s closes: Dec crude -0.53 (-1.13%), Dec gasoline +0.0440 (+3.10%). Dec crude oil and gasoline on Tuesday settled mixed with Dec crude at a 1-month low and Dec gasoline at a 5-month high. Crude oil and gasoline prices were boosted by the sell-off in the dollar index to a 1-1/2 week low. Meanwhile, gasoline prices soared to a 5-month nearest-futures high on East Coast supply concerns after the closure of the Colonial Pipeline mainline in Alabama, the largest U.S. fuel pipeline, due to a fire and explosion in Alabama. Crude oil prices were undercut by the sell-off in the S&P 500 to a 3-3/4 month low and by expectations for Wednesday’s EIA crude inventories to increase by +1.5 million bbl.