US : Pre Market News – 02 Nov 2016
Thu Nov 03 2016
Nikki Bailey (257 articles)
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US : Pre Market News – 02 Nov 2016

NEW YORK :

PREMARKET WORLD NEWS

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.

U.S. STOCK PREVIEW

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.

PREMARKET U.S. STOCKS

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.

MARKET COMMENTS

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.

GLOBAL EVENT CALENDAR 11/02/2016
Wednesday, Nov 2
US0700 ETWeekly MBA mortgage applications, previous -4.1% with purchase sub-index -6.9% and refi sub-index -2.3%.
0815 ETOct ADP employment change expected +165,000, Sep +154,000.
0830 ETTreasury announces amount of 3-year T-notes (previous $ 24 billion), 10-year T-notes (previous $ 20 billion) and 30-year T-bonds (previous $ 12 billion) to be auctioned Nov 8-10 in the Treasurys quarterly refunding.
0935 ETOct New York ISM, Sep +2.1 to 49.6.
1030 ETEIA Weekly Petroleum Status Report.
1400 ETFOMC announces interest rate decision.
Thursday, Nov 3
US0730 ETOct Challenger job cuts, Sep -24.7% y/y.
0830 ETWeekly initial unemployment claims expected -2,000 to 256,000, previous -3,000 to 258,000. Weekly continuing claims expected +4,000 to 2.043 million, previous -15,000 to 2.039 million.
0830 ETQ3 non-farm productivity expected +2.1%, Q2 -0.6%. Q3 unit labor costs expected +1.2%, Q2 +4.3%.
0830 ETUSDA weekly Export Sales.
0945 ETFinal-Oct Markit U.S. services PMI expected unch at 54.8, prelim-Oct +2.5 to 54.8. Final-Oct Markit U.S. composite PMI, prelim-Oct +2.6 to 54.9.
1000 ETOct ISM non-manufacturing PMI expected -1.1 to 56.0, Sep +5.7 to 57.1.
1000 ETSep factory orders expected +0.2%, Aug +0.2% and unch ex-transportation.
U.S. STOCK CALENDAR 11/02/2016
CompanyTickerTimeEvent DescriptionPeriodEstimate
Automatic Data Processing IncADP USBef-mktQ1 2017 Earnings ReleaseQ1 20170.758
Clorox Co/TheCLX USBef-mktQ1 2017 Earnings ReleaseQ1 20171.418
TEGNA IncTGNA USBef-mktQ3 2016 Earnings ReleaseQ3 20160.583
Host Hotels & Resorts IncHST USBef-mktQ3 2016 Earnings ReleaseQ3 20160.361
Vulcan Materials CoVMC USBef-mktQ3 2016 Earnings ReleaseQ3 20161.087
Welltower IncHCN USBef-mktQ3 2016 Earnings ReleaseQ3 20161.149
Henry Schein IncHSIC USBef-mktQ3 2016 Earnings ReleaseQ3 20161.654
Spectra Energy CorpSE USBef-mktQ3 2016 Earnings ReleaseQ3 20160.258
TE Connectivity LtdTEL USBef-mktQ4 2016 Earnings ReleaseQ4 20161.196
Anthem IncANTM US6:00Q3 2016 Earnings ReleaseQ3 20162.466
AmerisourceBergen CorpABC US6:30Q4 2016 Earnings ReleaseQ4 20161.228
Estee Lauder Cos Inc/TheEL US6:45Q1 2017 Earnings ReleaseQ1 20170.797
Delphi Automotive PLCDLPH US6:45Q3 2016 Earnings ReleaseQ3 20161.429
Time Warner IncTWX US7:00Q3 2016 Earnings ReleaseQ3 20161.366
Zoetis IncZTS US7:00Q3 2016 Earnings ReleaseQ3 20160.468
Facebook IncFB US7:15Canadian Club of Toronto Presents Managing Director, Jordan Banks
Allergan plcAGN US7:30Q3 2016 Earnings ReleaseQ3 20163.557
Kroger Co/TheKR US8:00Investor MeetingY 2016
Dun & Bradstreet Corp/TheDNB US8:00Q3 2016 Earnings CallQ3 2016
Automatic Data Processing IncADP US8:30Q1 2017 Earnings CallQ1 2017
Time Warner IncTWX US8:30Q3 2016 Earnings CallQ3 2016
Allergan plcAGN US8:30Q3 2016 Earnings CallQ3 2016
Sempra EnergySRE US8:30Q3 2016 Earnings ReleaseQ3 20160.953
Anthem IncANTM US8:30Q3 2016 Earnings CallQ3 2016
TE Connectivity LtdTEL US8:30Q4 2016 Earnings CallQ4 2016
Verisk Analytics IncVRSK US8:30Q3 2016 Earnings CallQ3 2016
Zoetis IncZTS US8:30Q3 2016 Earnings CallQ3 2016
Noble Energy IncNBL US9:00Q3 2016 Earnings CallQ3 2016
Eversource EnergyES US9:00Q3 2016 Earnings CallQ3 2016
Spectra Energy CorpSE US9:00Q3 2016 Earnings CallQ3 2016
Delphi Automotive PLCDLPH US9:00Q3 2016 Earnings CallQ3 2016
Estee Lauder Cos Inc/TheEL US9:30Q1 2017 Earnings CallQ1 2017
Host Hotels & Resorts IncHST US10:00Q3 2016 Earnings CallQ3 2016
Vulcan Materials CoVMC US10:00Q3 2016 Earnings CallQ3 2016
Welltower IncHCN US10:00Q3 2016 Earnings CallQ3 2016
Henry Schein IncHSIC US10:00Q3 2016 Earnings CallQ3 2016
Pioneer Natural Resources CoPXD US10:00Q3 2016 Earnings CallQ3 2016
TEGNA IncTGNA US11:00Q3 2016 Earnings CallQ3 2016
ONEOK IncOKE US11:00Q3 2016 Earnings CallQ3 2016
Newfield Exploration CoNFX US11:00Q3 2016 Earnings CallQ3 2016
AmerisourceBergen CorpABC US11:00Q4 2016 Earnings CallQ4 2016
Sempra EnergySRE US11:00Q3 2016 Earnings CallQ3 2016
Devon Energy CorpDVN US11:00Q3 2016 Earnings CallQ3 2016
Clorox Co/TheCLX US13:30Q1 2017 Earnings CallQ1 2017
KLA-Tencor CorpKLAC US15:00Annual General Meeting
Twenty-First Century Fox IncFOXA US16:00Q1 2017 Earnings ReleaseQ1 20170.441
Twenty-First Century Fox IncFOXA US16:00Q1 2017 Earnings CallQ1 2017
Facebook IncFB US16:00Q3 2016 Earnings ReleaseQ3 20160.974
Allstate Corp/TheALL US16:15Q3 2016 Earnings ReleaseQ3 20161.26
Hologic IncHOLX US16:30Q4 2016 Earnings CallQ4 2016
Wynn Resorts LtdWYNN US16:30Q3 2016 Earnings CallQ3 2016
First Solar IncFSLR US16:30Q3 2016 Earnings CallQ3 2016
QUALCOMM IncQCOM US16:45Q4 2016 Earnings CallQ4 2016
Adobe Systems IncADBE US17:00Analyst MeetingY 2016
Whole Foods Market IncWFM US17:00Q4 2016 Earnings CallQ4 2016
DaVita IncDVA US17:00Q3 2016 Earnings CallQ3 2016
Facebook IncFB US17:00Q3 2016 Earnings CallQ3 2016
American International Group IncAIG USAft-mktQ3 2016 Earnings ReleaseQ3 20161.196
Federal Realty Investment TrustFRT USAft-mktQ3 2016 Earnings ReleaseQ3 20161.423
FMC CorpFMC USAft-mktQ3 2016 Earnings ReleaseQ3 20160.589
Lincoln National CorpLNC USAft-mktQ3 2016 Earnings ReleaseQ3 20161.617
Marathon Oil CorpMRO USAft-mktQ3 2016 Earnings ReleaseQ3 2016-0.195
Hologic IncHOLX USAft-mktQ4 2016 Earnings ReleaseQ4 20160.498
QUALCOMM IncQCOM USAft-mktQ4 2016 Earnings ReleaseQ4 20161.13
Whole Foods Market IncWFM USAft-mktQ4 2016 Earnings ReleaseQ4 20160.236
Transocean LtdRIG USAft-mktQ3 2016 Earnings ReleaseQ3 20160.144
Prudential Financial IncPRU USAft-mktQ3 2016 Earnings ReleaseQ3 20162.491
DaVita IncDVA USAft-mktQ3 2016 Earnings ReleaseQ3 20160.938
MetLife IncMET USAft-mktQ3 2016 Earnings ReleaseQ3 20161.129
Cimarex Energy CoXEC USAft-mktQ3 2016 Earnings ReleaseQ3 20160.361
Wynn Resorts LtdWYNN USAft-mktQ3 2016 Earnings ReleaseQ3 20160.725
Equinix IncEQIX USAft-mktQ3 2016 Earnings ReleaseQ3 20163.173
CF Industries Holdings IncCF USAft-mktQ3 2016 Earnings ReleaseQ3 2016-0.025
First Solar IncFSLR USAft-mktQ3 2016 Earnings ReleaseQ3 20160.764
American Water Works Co IncAWK USAft-mktQ3 2016 Earnings ReleaseQ3 20161.017
Equinix IncEQIX US17:30Q3 2016 Earnings CallQ3 2016
Costco Wholesale CorpCOST US21:00October 2016 Sales and Revenue Release2016
Alaska Air Group IncALK USOctober 2016 Sales and Revenue Release – Traffic Results2016
Delta Air Lines IncDAL USOctober 2016 Sales and Revenue Release – Traffic Results2016

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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