US : Pre Market News – 03 Nov 2016
Thu Nov 03 2016
Nikki Bailey (257 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
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.
Friday, Nov 4
US0830 ETOct 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 ETOct 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 ETSep trade balance expected -$ 38.0 billion, Aug -$ 40.7 billion.
0845 ETAtlanta Fed President Dennis Lockhart (non-voter) speaks at the National Association of Realtors Conference Expo.
1300 ETDallas Fed President Robert Kaplan (non-voter) speaks at an Association of Banks of Mexico forum.
1600 ETFed Vice Chair Stanley Fischer speaks at an IMF event in Washington, D.C.
U.S. STOCK CALENDAR 11/03/2016
CompanyTickerTimeEvent DescriptionPeriodEstimate
Ball CorpBLL USBef-mktQ3 2016 Earnings ReleaseQ3 20160.934
Pinnacle West Capital CorpPNW USBef-mktQ3 2016 Earnings ReleaseQ3 20162.413
Chesapeake Energy CorpCHK USBef-mktQ3 2016 Earnings ReleaseQ3 2016-0.034
Quanta Services IncPWR USBef-mktQ3 2016 Earnings ReleaseQ3 20160.548
Becton Dickinson and CoBDX US6:00Q4 2016 Earnings ReleaseQ4 20162.076
Cigna CorpCI US6:30Q3 2016 Earnings ReleaseQ3 20161.903
Church & Dwight Co IncCHD US7:00Q3 2016 Earnings ReleaseQ3 20160.468
S&P Global IncSPGI US7:15Q3 2016 Earnings ReleaseQ3 20161.333
L Brands IncLB US7:30October 2016 Sales and Revenue Call – Pre-Recorded2016
American International Group IncAIG US8:00Q3 2016 Earnings CallQ3 2016
Apache CorpAPA US8:00Q3 2016 Earnings ReleaseQ3 2016-0.143
Becton Dickinson and CoBDX US8:00Q4 2016 Earnings CallQ4 2016
Harman International Industries IncHAR US8:00Q1 2017 Earnings ReleaseQ1 20171.529
Cardinal Health IncCAH US8:00Annual General MeetingY 2016
MetLife IncMET US8:00Q3 2016 Earnings CallQ3 2016
Charter Communications IncCHTR US8:00Q3 2016 Earnings ReleaseQ3 20160.728
Cigna CorpCI US8:30Q3 2016 Earnings CallQ3 2016
S&P Global IncSPGI US8:30Q3 2016 Earnings CallQ3 2016
FMC CorpFMC US9:00Q3 2016 Earnings CallQ3 2016
Marathon Oil CorpMRO US9:00Q3 2016 Earnings CallQ3 2016
Morgan StanleyMS US9:00Fixed Income Investor Call
Chesapeake Energy CorpCHK US9:00Q3 2016 Earnings CallQ3 2016
Allstate Corp/TheALL US9:00Q3 2016 Earnings CallQ3 2016
Transocean LtdRIG US9:00Q3 2016 Earnings CallQ3 2016
Prudential Financial IncPRU US9:00Q3 2016 Earnings CallQ3 2016
Quanta Services IncPWR US9:00Q3 2016 Earnings CallQ3 2016
CF Industries Holdings IncCF US9:00Q3 2016 Earnings CallQ3 2016
American Water Works Co IncAWK US9:00Q3 2016 Earnings CallQ3 2016
Church & Dwight Co IncCHD US10:00Q3 2016 Earnings CallQ3 2016
Lincoln National CorpLNC US10:00Q3 2016 Earnings CallQ3 2016
Charter Communications IncCHTR US10:00Q3 2016 Earnings CallQ3 2016
Ball CorpBLL US11:00Q3 2016 Earnings CallQ3 2016
Federal Realty Investment TrustFRT US11:00Q3 2016 Earnings CallQ3 2016
Harman International Industries IncHAR US11:00Q1 2017 Earnings CallQ1 2017
Mattel IncMAT US11:00Analyst DayY 2016
Cimarex Energy CoXEC US11:00Q3 2016 Earnings CallQ3 2016
Pinnacle West Capital CorpPNW US12:00Q3 2016 Earnings CallQ3 2016
Apache CorpAPA US14:00Q3 2016 Earnings CallQ3 2016
Qorvo IncQRVO US16:00Q2 2017 Earnings ReleaseQ2 20171.407
Starbucks CorpSBUX US16:04Q4 2016 Earnings ReleaseQ4 20160.548
Symantec CorpSYMC US16:05Q2 2017 Earnings ReleaseQ2 20170.201
CBS CorpCBS US16:05Q3 2016 Earnings ReleaseQ3 20160.983
Activision Blizzard IncATVI US16:30Q3 2016 Earnings CallQ3 2016
CBS CorpCBS US16:30Q3 2016 Earnings CallQ3 2016
Motorola Solutions IncMSI US17:00Q3 2016 Earnings CallQ3 2016
Skyworks Solutions IncSWKS US17:00Q4 2016 Earnings CallQ4 2016
Starbucks CorpSBUX US17:00Q4 2016 Earnings CallQ4 2016
Symantec CorpSYMC US17:00Q2 2017 Earnings CallQ2 2017
Mettler-Toledo International IncMTD US17:00Q3 2016 Earnings CallQ3 2016
Fluor CorpFLR US17:00Q3 2016 Earnings CallQ3 2016
Kraft Heinz Co/TheKHC US17:00Q3 2016 Earnings CallQ3 2016
Qorvo IncQRVO US17:00Q2 2017 Earnings CallQ2 2017
Monster Beverage CorpMNST US17:00Q3 2016 Earnings CallQ3 2016
Consolidated Edison IncED USAft-mktQ3 2016 Earnings ReleaseQ3 20161.472
EOG Resources IncEOG USAft-mktQ3 2016 Earnings ReleaseQ3 2016-0.318
Motorola Solutions IncMSI USAft-mktQ3 2016 Earnings ReleaseQ3 20161.201
Alliant Energy CorpLNT USAft-mktQ3 2016 Earnings ReleaseQ3 20160.908
Skyworks Solutions IncSWKS USAft-mktQ4 2016 Earnings ReleaseQ4 20161.43
Activision Blizzard IncATVI USAft-mktQ3 2016 Earnings ReleaseQ3 20160.424
Mohawk Industries IncMHK USAft-mktQ3 2016 Earnings ReleaseQ3 20163.454
Mettler-Toledo International IncMTD USAft-mktQ3 2016 Earnings ReleaseQ3 20163.661
Fluor CorpFLR USAft-mktQ3 2016 Earnings ReleaseQ3 20160.887
Kraft Heinz Co/TheKHC USAft-mktQ3 2016 Earnings ReleaseQ3 20160.744
Monster Beverage CorpMNST USAft-mktQ3 2016 Earnings ReleaseQ3 20161.117
Leucadia National CorpLUK USQ3 2016 Earnings ReleaseQ3 20160.43
L Brands IncLB USOctober 2016 Sales and Revenue Release2016
Coty IncCOTY USAnnual General Meeting
FMC Technologies IncFTI USRoadshow – Day 4Y 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