US : Pre Market News – 03 Nov 2016
Thu Nov 03 2016
Nikki Bailey (597 articles)
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US : Pre Market News – 03 Nov 2016

NEW YORK :

PREMARKET WORLD NEWS

Dec E-mini S&Ps (ESZ16 +0.17%) are little changed, up +0.02%, as they rebound from a fresh 3-3/4 month low as political uncertainty ahead of next Tuesday’s U.S. Presidential election undercuts stocks. Dec E-mini S&PS posted a fresh 3-3/4 month low in overnight trade after Fox News reported that the FBI investigation into presidential candidate Clinton’s emails has taken on a “very high priority.” U.S. stock indexes recovered and European stocks rebounded from a 3-week low and are up +0.24% after the UK government lost a Brexit lawsuit over the Article 50 Brexit vote. GBP/USD jumped +1.15% to a 3-week high after the British High Court ruled that the government does not have the power to trigger Article 50 of Brexit without Parliamentary approval. Asian stocks settled mostly lower: Japan closed for holiday, Hong Kong -0.56%, China +0.84%, Taiwan -0.79%, Australia -0.07%, Singapore -0.18%, South Korea +0.03%, India -0.35%. China’s Shanghai Composite bucked the negative trend and posted a 9-1/2 month high as industrial stocks rallied on speculation government policy will remain supportive of fiscal spending and infrastructure projects to support growth.

The dollar index (DXY00 -0.04%) is down -0.17% at a 3-week low. EUR/USD (^EURUSD) is down -0.20%. USD/JPY (^USDJPY) is down -0.11% at a 4-week low as U.S. political uncertainty undercuts stocks and fuels safe-haven demand for the yen.

Dec 10-year T-note prices (ZNZ16 +0.01%) are unchanged.

The Eurozone Sep unemployment rate was unch at 10.0%, right on expectations and remained at a 5-1/3 year low.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Oct Challenger job cuts (Sep -24.7% y/y), (2) weekly initial unemployment claims (expected -2,000 to 256,000, previous -3,000 to 258,000) and continuing claims (expected +4,000 to 2.043 million, previous -15,000 to 2.039 million), (3) Q3 non-farm productivity (expected +2.1%, Q2 -0.6%) and Q3 unit labor costs (expected +1.2%, Q2 +4.3%), (4) final-Oct Markit U.S. services PMI (expected unch at 54.8, prelim-Oct +2.5 to 54.8), (5) Oct ISM non-manufacturing PMI (expected -1.1 to 56.0, Sep +5.7 to 57.1), (6) Sep factory orders (expected +0.2%, Aug +0.2% and unch ex-transportation), (7) USDA weekly Export Sales.

Notable S&P 500 earnings reports today include: Starbucks (0.55), Church & Dwight ((0.47), S&P Global (1.33), Apache (-0.14), Charter Communications (0.73), Symantec (0.20), CBS (0.98), Consolidated Edison (1.47), Motorola Solutions (1.20), Alliant Energy (0.91), Fluor (0.89), Kraft Heinz (0.74), Monster Beverage (1.12), among others.

U.S. IPO’s scheduled to price today: Smart Sand (SND).

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

Newmont Mining (NEM -2.03%) was upgraded to ‘Overweight’ from ‘Neutral’ at JPMorgan Chase with a price target of $ 43.

NXP Semiconductors (NXPI -0.52%) was downgraded to ‘Neutral’ from ‘Buy’ at Mizuho Securities with a 12-month target price of $ 110.

Facebook (FB -1.80%) dropped 6% in after-hours trading after CFO Wehner said that ad sales growth will “come down meaningfully starting mid-2017.

Zumiez (ZUMZ +1.79%) climbed over 9% in after-hours trading after it reported October comparable sales rose +10.2%, higher than consensus of +2.6%, and said it seesQ3 adjusted EPS of 35 cents-36 cents, better than consensus of 29 cents-30 cents.

Fitbit (FIT -1.91%) sank nearly 30% in after-hours trading after it said it sees Q4 adjusted EPS of 14 cents-18 cents, well below consensus of 75 cents.

Take-Two Interactive Software (TTWO +1.98%) rallied 5% in after-hours trading after it reported Q2 adjusted revenue of $ 479.4 million, higher than consensus of $ 402.5 million, and then raised its fiscal 2017 bookings estimate to $ 1.6 billion-$ 1.7 billion from an August 4 estimate of $ 1.5 billion-$ 1.6 billion.

Wynn Resorts Ltd. (WYNN -1.74%) fell 5% in after-hours trading after it reported Q3 Macau adjusted property Ebitda of $ 151 million, below consensus of $ 205.7 million

Transocean Ltd. (RIG -3.13%) climbed nearly 2% in after-hours trading after it reported Q3 adjusted EPS of 25 cents, higher than consensus of 14 cents.

Marathon Oil (MRO -3.69%) gained over 1% in after-hours trading after it reported a Q3 adjusted loss of -11 cents a share, a smaller loss than expectations of -19 cents.

Flotek Industries (FTK -2.92%) slid nearly 3% in after-hours trading after it reported Q3 revenue of $ 73.7 million, less than consensus of $ 76.9 million.

Hologic (HOLX -0.81%) rose 3% in after-hours trading after it reported Q4 adjusted EPS of 52 cents, above consensus of 50 cents, and then said it sees fiscal 2017 revenue of $ 2.94 billion-$ 2.98 billion, higher than consensus of $ 2.94 billion.

Diplomat Pharmacy (DPLO -0.89%) plunged over 25% in after-hours trading after it reported Q3 adjusted EPS of 21 cents, below consensus of 24 cents, and then cut its 2016 adjusted EPS estimate to 83 cents-87 cents from an August 9 view of 90 cents-95 cents.

Inteliquent (IQNT -0.12%) surged over 30% in after-hours trading after GTCR agreed to buy the company for $ 800 million or $ 23 a share.

Zynga (ZNGA -2.14%) fell 3% in after-hours trading after it reported a Q3 GAAP loss of -4 cents a share, a bigger loss than expectations of -3 cents, and then said it sees Q4 revenue of $ 180 million0$ 190 million, weaker than consensus of $ 204.3 million.

MARKET COMMENTS

Dec E-mini S&Ps (ESZ16 +0.17%) this morning are little changed, up +0.50 of a point (+0.02%). Wednesday’s closes: S&P 500 -0.65%, Dow Jones -0.43%, Nasdaq -0.84%. The S&P 500 on Wednesday fell to a 3-3/4 month low and closed lower on concerns about next week’s U.S. election and on weakness in energy-producer stocks after the price of crude oil tumbled -2.85% to a 5-week low. Stocks were also undercut by the post-FOMC statement that said the pace of price gains “has increased somewhat since earlier this year,” which bolsters the case for a Fed rate hike next month.

Dec 10-year T-notes (ZNZ16 +0.01%) this morning are unchanged. Wednesday’s closes: TYZ6 +7.50, FVZ6 +4.00. Dec 10-year T-notes on Wednesday closed higher on increased safe-haven demand with the sell-off in stocks and the uncertainty about next week’s U.S. election. T-notes were undercut by the FOMC’s slightly more hawkish language in its post-meeting statement that increased the odds of a December rate hike.

The dollar index (DXY00 -0.04%) this morning is down -0.161 (-0.17%) at fresh 3-week low. EUR/USD (^EURUSD) is down -0.0022 (-0.20%). USD/JPY (^USDJPY) is down -0.11 (-0.11%). Wednesday’s closes: Dollar index -0.301 (-0.31%), EUR/USD +0.0043 (+0.39%), USD/JPY -0.85 (-0.82%). The dollar index on Wednesday fell to a 3-week low and closed lower on uncertainty about next week’s U.S. election and on the FOMC’s decision not to raise interest rates at Wednesday’s FOMC meeting. There was also strength in EUR/USD which climbed to a 3-week high after Eurozone Oct Markit manufacturing PMI was revised upward to a 2-3/4 year high, which reduced the chances for additional ECB stimulus.

Dec crude oil prices (CLZ16 +0.90%) are up +34 cents (+0.75%) and Dec gasoline (RBZ16 +0.59%) is up +0.0102 (+0.70%). Wednesday’s closes: Dec crude -1.33 (-2.85%), Dec gasoline +0.0440 (+3.10%). Dec crude oil and gasoline on Wednesday closed lower with Dec crude at a 5-week low. Crude oil prices were undercut by the +14.42 million bbl surge in EIA crude inventories (versus expectations of +2.0 million bbl) and by the +3.9% y/y increase in Russia Oct crude production to a post-Soviet record of 11.2 million bpd. Crude oil was also undercut by the +170,00 bpd increase in OPEC Oct crude production to a record 34.02 million bpd.

GLOBAL EVENT CALENDAR 11/03/2016
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.
Friday, Nov 4
US 0830 ET Oct non-farm payrolls expected +175,000, Sep +156,000. Oct private payrolls expected +170,000, Sep +167,000. Oct manufacturing payrolls expected -5,000, Sep -13,000. Oct unemployment rate expected -0.1 to 4.9%, Sep +0.1 to 5.0%.
0830 ET Oct avg hourly earnings expected +0.3% m/m and +2.6% y/y, Sep +0.2% m/m and +2.6% y/y. Oct avg weekly hours all employees expected unch at 34.4 hours, Sep +0.1 to 34.4 hours.
0830 ET Sep trade balance expected -$ 38.0 billion, Aug -$ 40.7 billion.
0845 ET Atlanta Fed President Dennis Lockhart (non-voter) speaks at the National Association of Realtors Conference Expo.
1300 ET Dallas Fed President Robert Kaplan (non-voter) speaks at an Association of Banks of Mexico forum.
1600 ET Fed Vice Chair Stanley Fischer speaks at an IMF event in Washington, D.C.
U.S. STOCK CALENDAR 11/03/2016
Company Ticker Time Event Description Period Estimate
Ball Corp BLL US Bef-mkt Q3 2016 Earnings Release Q3 2016 0.934
Pinnacle West Capital Corp PNW US Bef-mkt Q3 2016 Earnings Release Q3 2016 2.413
Chesapeake Energy Corp CHK US Bef-mkt Q3 2016 Earnings Release Q3 2016 -0.034
Quanta Services Inc PWR US Bef-mkt Q3 2016 Earnings Release Q3 2016 0.548
Becton Dickinson and Co BDX US 6:00 Q4 2016 Earnings Release Q4 2016 2.076
Cigna Corp CI US 6:30 Q3 2016 Earnings Release Q3 2016 1.903
Church & Dwight Co Inc CHD US 7:00 Q3 2016 Earnings Release Q3 2016 0.468
S&P Global Inc SPGI US 7:15 Q3 2016 Earnings Release Q3 2016 1.333
L Brands Inc LB US 7:30 October 2016 Sales and Revenue Call – Pre-Recorded 2016
American International Group Inc AIG US 8:00 Q3 2016 Earnings Call Q3 2016
Apache Corp APA US 8:00 Q3 2016 Earnings Release Q3 2016 -0.143
Becton Dickinson and Co BDX US 8:00 Q4 2016 Earnings Call Q4 2016
Harman International Industries Inc HAR US 8:00 Q1 2017 Earnings Release Q1 2017 1.529
Cardinal Health Inc CAH US 8:00 Annual General Meeting Y 2016
MetLife Inc MET US 8:00 Q3 2016 Earnings Call Q3 2016
Charter Communications Inc CHTR US 8:00 Q3 2016 Earnings Release Q3 2016 0.728
Cigna Corp CI US 8:30 Q3 2016 Earnings Call Q3 2016
S&P Global Inc SPGI US 8:30 Q3 2016 Earnings Call Q3 2016
FMC Corp FMC US 9:00 Q3 2016 Earnings Call Q3 2016
Marathon Oil Corp MRO US 9:00 Q3 2016 Earnings Call Q3 2016
Morgan Stanley MS US 9:00 Fixed Income Investor Call
Chesapeake Energy Corp CHK US 9:00 Q3 2016 Earnings Call Q3 2016
Allstate Corp/The ALL US 9:00 Q3 2016 Earnings Call Q3 2016
Transocean Ltd RIG US 9:00 Q3 2016 Earnings Call Q3 2016
Prudential Financial Inc PRU US 9:00 Q3 2016 Earnings Call Q3 2016
Quanta Services Inc PWR US 9:00 Q3 2016 Earnings Call Q3 2016
CF Industries Holdings Inc CF US 9:00 Q3 2016 Earnings Call Q3 2016
American Water Works Co Inc AWK US 9:00 Q3 2016 Earnings Call Q3 2016
Church & Dwight Co Inc CHD US 10:00 Q3 2016 Earnings Call Q3 2016
Lincoln National Corp LNC US 10:00 Q3 2016 Earnings Call Q3 2016
Charter Communications Inc CHTR US 10:00 Q3 2016 Earnings Call Q3 2016
Ball Corp BLL US 11:00 Q3 2016 Earnings Call Q3 2016
Federal Realty Investment Trust FRT US 11:00 Q3 2016 Earnings Call Q3 2016
Harman International Industries Inc HAR US 11:00 Q1 2017 Earnings Call Q1 2017
Mattel Inc MAT US 11:00 Analyst Day Y 2016
Cimarex Energy Co XEC US 11:00 Q3 2016 Earnings Call Q3 2016
Pinnacle West Capital Corp PNW US 12:00 Q3 2016 Earnings Call Q3 2016
Apache Corp APA US 14:00 Q3 2016 Earnings Call Q3 2016
Qorvo Inc QRVO US 16:00 Q2 2017 Earnings Release Q2 2017 1.407
Starbucks Corp SBUX US 16:04 Q4 2016 Earnings Release Q4 2016 0.548
Symantec Corp SYMC US 16:05 Q2 2017 Earnings Release Q2 2017 0.201
CBS Corp CBS US 16:05 Q3 2016 Earnings Release Q3 2016 0.983
Activision Blizzard Inc ATVI US 16:30 Q3 2016 Earnings Call Q3 2016
CBS Corp CBS US 16:30 Q3 2016 Earnings Call Q3 2016
Motorola Solutions Inc MSI US 17:00 Q3 2016 Earnings Call Q3 2016
Skyworks Solutions Inc SWKS US 17:00 Q4 2016 Earnings Call Q4 2016
Starbucks Corp SBUX US 17:00 Q4 2016 Earnings Call Q4 2016
Symantec Corp SYMC US 17:00 Q2 2017 Earnings Call Q2 2017
Mettler-Toledo International Inc MTD US 17:00 Q3 2016 Earnings Call Q3 2016
Fluor Corp FLR US 17:00 Q3 2016 Earnings Call Q3 2016
Kraft Heinz Co/The KHC US 17:00 Q3 2016 Earnings Call Q3 2016
Qorvo Inc QRVO US 17:00 Q2 2017 Earnings Call Q2 2017
Monster Beverage Corp MNST US 17:00 Q3 2016 Earnings Call Q3 2016
Consolidated Edison Inc ED US Aft-mkt Q3 2016 Earnings Release Q3 2016 1.472
EOG Resources Inc EOG US Aft-mkt Q3 2016 Earnings Release Q3 2016 -0.318
Motorola Solutions Inc MSI US Aft-mkt Q3 2016 Earnings Release Q3 2016 1.201
Alliant Energy Corp LNT US Aft-mkt Q3 2016 Earnings Release Q3 2016 0.908
Skyworks Solutions Inc SWKS US Aft-mkt Q4 2016 Earnings Release Q4 2016 1.43
Activision Blizzard Inc ATVI US Aft-mkt Q3 2016 Earnings Release Q3 2016 0.424
Mohawk Industries Inc MHK US Aft-mkt Q3 2016 Earnings Release Q3 2016 3.454
Mettler-Toledo International Inc MTD US Aft-mkt Q3 2016 Earnings Release Q3 2016 3.661
Fluor Corp FLR US Aft-mkt Q3 2016 Earnings Release Q3 2016 0.887
Kraft Heinz Co/The KHC US Aft-mkt Q3 2016 Earnings Release Q3 2016 0.744
Monster Beverage Corp MNST US Aft-mkt Q3 2016 Earnings Release Q3 2016 1.117
Leucadia National Corp LUK US Q3 2016 Earnings Release Q3 2016 0.43
L Brands Inc LB US October 2016 Sales and Revenue Release 2016
Coty Inc COTY US Annual General Meeting
FMC Technologies Inc FTI US Roadshow – Day 4 Y 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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