US : Pre Market News – 02 Nov 2016
Thu Nov 03 2016
Nikki Bailey (596 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
US 0700 ET Weekly MBA mortgage applications, previous -4.1% with purchase sub-index -6.9% and refi sub-index -2.3%.
0815 ET Oct ADP employment change expected +165,000, Sep +154,000.
0830 ET Treasury 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 ET Oct New York ISM, Sep +2.1 to 49.6.
1030 ET EIA Weekly Petroleum Status Report.
1400 ET FOMC announces interest rate decision.
Thursday, Nov 3
US 0730 ET Oct Challenger job cuts, Sep -24.7% y/y.
0830 ET Weekly 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 ET Q3 non-farm productivity expected +2.1%, Q2 -0.6%. Q3 unit labor costs expected +1.2%, Q2 +4.3%.
0830 ET USDA weekly Export Sales.
0945 ET Final-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 ET Oct ISM non-manufacturing PMI expected -1.1 to 56.0, Sep +5.7 to 57.1.
1000 ET Sep factory orders expected +0.2%, Aug +0.2% and unch ex-transportation.
U.S. STOCK CALENDAR 11/02/2016
Company Ticker Time Event Description Period Estimate
Automatic Data Processing Inc ADP US Bef-mkt Q1 2017 Earnings Release Q1 2017 0.758
Clorox Co/The CLX US Bef-mkt Q1 2017 Earnings Release Q1 2017 1.418
TEGNA Inc TGNA US Bef-mkt Q3 2016 Earnings Release Q3 2016 0.583
Host Hotels & Resorts Inc HST US Bef-mkt Q3 2016 Earnings Release Q3 2016 0.361
Vulcan Materials Co VMC US Bef-mkt Q3 2016 Earnings Release Q3 2016 1.087
Welltower Inc HCN US Bef-mkt Q3 2016 Earnings Release Q3 2016 1.149
Henry Schein Inc HSIC US Bef-mkt Q3 2016 Earnings Release Q3 2016 1.654
Spectra Energy Corp SE US Bef-mkt Q3 2016 Earnings Release Q3 2016 0.258
TE Connectivity Ltd TEL US Bef-mkt Q4 2016 Earnings Release Q4 2016 1.196
Anthem Inc ANTM US 6:00 Q3 2016 Earnings Release Q3 2016 2.466
AmerisourceBergen Corp ABC US 6:30 Q4 2016 Earnings Release Q4 2016 1.228
Estee Lauder Cos Inc/The EL US 6:45 Q1 2017 Earnings Release Q1 2017 0.797
Delphi Automotive PLC DLPH US 6:45 Q3 2016 Earnings Release Q3 2016 1.429
Time Warner Inc TWX US 7:00 Q3 2016 Earnings Release Q3 2016 1.366
Zoetis Inc ZTS US 7:00 Q3 2016 Earnings Release Q3 2016 0.468
Facebook Inc FB US 7:15 Canadian Club of Toronto Presents Managing Director, Jordan Banks
Allergan plc AGN US 7:30 Q3 2016 Earnings Release Q3 2016 3.557
Kroger Co/The KR US 8:00 Investor Meeting Y 2016
Dun & Bradstreet Corp/The DNB US 8:00 Q3 2016 Earnings Call Q3 2016
Automatic Data Processing Inc ADP US 8:30 Q1 2017 Earnings Call Q1 2017
Time Warner Inc TWX US 8:30 Q3 2016 Earnings Call Q3 2016
Allergan plc AGN US 8:30 Q3 2016 Earnings Call Q3 2016
Sempra Energy SRE US 8:30 Q3 2016 Earnings Release Q3 2016 0.953
Anthem Inc ANTM US 8:30 Q3 2016 Earnings Call Q3 2016
TE Connectivity Ltd TEL US 8:30 Q4 2016 Earnings Call Q4 2016
Verisk Analytics Inc VRSK US 8:30 Q3 2016 Earnings Call Q3 2016
Zoetis Inc ZTS US 8:30 Q3 2016 Earnings Call Q3 2016
Noble Energy Inc NBL US 9:00 Q3 2016 Earnings Call Q3 2016
Eversource Energy ES US 9:00 Q3 2016 Earnings Call Q3 2016
Spectra Energy Corp SE US 9:00 Q3 2016 Earnings Call Q3 2016
Delphi Automotive PLC DLPH US 9:00 Q3 2016 Earnings Call Q3 2016
Estee Lauder Cos Inc/The EL US 9:30 Q1 2017 Earnings Call Q1 2017
Host Hotels & Resorts Inc HST US 10:00 Q3 2016 Earnings Call Q3 2016
Vulcan Materials Co VMC US 10:00 Q3 2016 Earnings Call Q3 2016
Welltower Inc HCN US 10:00 Q3 2016 Earnings Call Q3 2016
Henry Schein Inc HSIC US 10:00 Q3 2016 Earnings Call Q3 2016
Pioneer Natural Resources Co PXD US 10:00 Q3 2016 Earnings Call Q3 2016
TEGNA Inc TGNA US 11:00 Q3 2016 Earnings Call Q3 2016
ONEOK Inc OKE US 11:00 Q3 2016 Earnings Call Q3 2016
Newfield Exploration Co NFX US 11:00 Q3 2016 Earnings Call Q3 2016
AmerisourceBergen Corp ABC US 11:00 Q4 2016 Earnings Call Q4 2016
Sempra Energy SRE US 11:00 Q3 2016 Earnings Call Q3 2016
Devon Energy Corp DVN US 11:00 Q3 2016 Earnings Call Q3 2016
Clorox Co/The CLX US 13:30 Q1 2017 Earnings Call Q1 2017
KLA-Tencor Corp KLAC US 15:00 Annual General Meeting
Twenty-First Century Fox Inc FOXA US 16:00 Q1 2017 Earnings Release Q1 2017 0.441
Twenty-First Century Fox Inc FOXA US 16:00 Q1 2017 Earnings Call Q1 2017
Facebook Inc FB US 16:00 Q3 2016 Earnings Release Q3 2016 0.974
Allstate Corp/The ALL US 16:15 Q3 2016 Earnings Release Q3 2016 1.26
Hologic Inc HOLX US 16:30 Q4 2016 Earnings Call Q4 2016
Wynn Resorts Ltd WYNN US 16:30 Q3 2016 Earnings Call Q3 2016
First Solar Inc FSLR US 16:30 Q3 2016 Earnings Call Q3 2016
QUALCOMM Inc QCOM US 16:45 Q4 2016 Earnings Call Q4 2016
Adobe Systems Inc ADBE US 17:00 Analyst Meeting Y 2016
Whole Foods Market Inc WFM US 17:00 Q4 2016 Earnings Call Q4 2016
DaVita Inc DVA US 17:00 Q3 2016 Earnings Call Q3 2016
Facebook Inc FB US 17:00 Q3 2016 Earnings Call Q3 2016
American International Group Inc AIG US Aft-mkt Q3 2016 Earnings Release Q3 2016 1.196
Federal Realty Investment Trust FRT US Aft-mkt Q3 2016 Earnings Release Q3 2016 1.423
FMC Corp FMC US Aft-mkt Q3 2016 Earnings Release Q3 2016 0.589
Lincoln National Corp LNC US Aft-mkt Q3 2016 Earnings Release Q3 2016 1.617
Marathon Oil Corp MRO US Aft-mkt Q3 2016 Earnings Release Q3 2016 -0.195
Hologic Inc HOLX US Aft-mkt Q4 2016 Earnings Release Q4 2016 0.498
QUALCOMM Inc QCOM US Aft-mkt Q4 2016 Earnings Release Q4 2016 1.13
Whole Foods Market Inc WFM US Aft-mkt Q4 2016 Earnings Release Q4 2016 0.236
Transocean Ltd RIG US Aft-mkt Q3 2016 Earnings Release Q3 2016 0.144
Prudential Financial Inc PRU US Aft-mkt Q3 2016 Earnings Release Q3 2016 2.491
DaVita Inc DVA US Aft-mkt Q3 2016 Earnings Release Q3 2016 0.938
MetLife Inc MET US Aft-mkt Q3 2016 Earnings Release Q3 2016 1.129
Cimarex Energy Co XEC US Aft-mkt Q3 2016 Earnings Release Q3 2016 0.361
Wynn Resorts Ltd WYNN US Aft-mkt Q3 2016 Earnings Release Q3 2016 0.725
Equinix Inc EQIX US Aft-mkt Q3 2016 Earnings Release Q3 2016 3.173
CF Industries Holdings Inc CF US Aft-mkt Q3 2016 Earnings Release Q3 2016 -0.025
First Solar Inc FSLR US Aft-mkt Q3 2016 Earnings Release Q3 2016 0.764
American Water Works Co Inc AWK US Aft-mkt Q3 2016 Earnings Release Q3 2016 1.017
Equinix Inc EQIX US 17:30 Q3 2016 Earnings Call Q3 2016
Costco Wholesale Corp COST US 21:00 October 2016 Sales and Revenue Release 2016
Alaska Air Group Inc ALK US October 2016 Sales and Revenue Release – Traffic Results 2016
Delta Air Lines Inc DAL US October 2016 Sales and Revenue Release – Traffic Results 2016

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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

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