US : Pre Market News – 11 Nov 2016

Dec E-mini S&Ps (ESZ16 -0.45%) are down -0.48% and European stocks are down -0.37%, led by weakness in technology stocks with Apple, Amazon.com and Facebook all down at least 1% in pre-market trading. Weakness in oil producing stocks is also pressuring the overall market with crude oil prices (CLZ16 -1.39%) down -1.63% after Iran, which wants an exemption from any OPEC production cuts, said it increased its Oct crude production by 210,000 bpd to 3.92 million bpd, higher than OPEC estimates of 3.9 million bpd and the most since sanctions were lifted. On the positive side is strength in mining stocks and raw-material producers as the price of copper (HGZ16 +4.80%) keeps soaring, up +5.12% at a new 1-1/3 year high. Asian stocks settled mixed: Japan +0.18%, Hong Kong -1.35%, China +0.78%, Taiwan -2.12%, Australia +0.79%, Singapore -0.69%, South Korea -1.30%, India -2.54%. The rally in copper prices to a 1-1/3 year has lifted Asian raw-material producers and mining companies as China’s Shanghai Composite climbed to a 10-month high and Japan’s Nikkei Stock Index rose to the highest in 9-1/4 months. The Chinese yuan fell to a new 6-year of 6.8197 per dollar on concern over President-elect Trump’s trade policies.

The dollar index (DXY00 +0.03%) is up +0.05%. EUR/USD (^EURUSD) is down -0.15% at a 2-week low. USD/JPY (^USDJPY) is down -0.51%.

Dec 10-year T-note prices (ZNZ16 -0.04%) are down -4 ticks at a 10-month nearest-futures low. A jump in inflation expectations is undercutting government debt prices as the 10-year T-note breakeven inflation rate climbed to a 1-1/3 year high. Global bond markets are weaker as well as the 10-year German bund yield climbed to a 9-1/4 month high of 0.345%.

China Oct new yuan loans rose +651.3 billion yuan, weaker than expectations of +672.0 billion yuan.

Key U.S. news today includes: (1) Fed Vice Chair Stanley Fischer will speak via video link on U.S. monetary policy and the global economy to a conference of the Central Bank of Chile, (2) preliminary-Nov University of Michigan U.S. consumer sentiment index (expected +0.8 to 88.0, Oct -4.0 to 87.2).

Notable S&P 500 earnings reports today include: JC Penney (consensus -$ 0.21).

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

Equity conferences during the remainder of this week include: Wells Fargo Technology, Media & Telecom Conference on Wed-Fri.

Michael Kors Holdings Ltd. (KORS +3.15%) slipped 4% in after-hours trading after it cut its fiscal 2017 adjusted EPS forecast to $ 4.37-$ 4.43 from an August 10 view of $ 4.56-$ 4.64.

Nvidia (NVDA -3.13%) surged 13% in pre-market trading after it reported Q3 adjusted EPS of 94 cents, well above consensus of 69 cents, and said it authorized an additional $ 2 billion for its share buyback program.

Walt Disney (DIS +0.34%) is up nearly 2% in pre-market trading after CEO Oger said he sees modest growth in 2017 and said online ESPN will be more user-friendly. Disney initially was down 3% in after-hours trading after it reported Q4 revenue of $ 13.1 billion, below consensus of $ 13.5 billion.

Nordstrom (JWN +7.15%) jumped 5% in after-hours trading after it reported Q3 adjusted EPS of 84 cents, well above consensus of 51 cents, and then raised guidance on full-year adjusted EPS to $ 2.85-$ 2.95 from a prior view of $ 2.60-$ 2.75.

Microsemi (MSCC -0.27%) gained over 1% in after-hours trading after it reported Q4 adjusted EPS of 91 cents, better than consensus of 90 cents.

Dillard’s (DDS +9.90%) declined over 6% in after-hours trading after it reported Q3 EPS of 67 cents, below consensus of 76 cents, and said Q3 comparable sales were down -4%, weaker than consensus of -2.7%.

PRA Health Sciences (PRAH +0.09%) dropped 4% in after-hours trading after it reported a secondary offering of 7.5 million shares.

Camping World Holdings (CWH +1.50%) rose 3% in after-hours trading after it reported Q3 revenue of $ 1.01 billion, higher than consensus of $ 971 million.

Trade Desk (TTD +2.09%) jumped nearly 7% in after-hours trading after it reported Q3 revenue of $ 53 million, better than consensus of $ 49.1 million and said it is “massively” outpacing growth of the total market.

Airgain (AIRG unch) climbed 3% in after-hours trading after it reported an unexpected Q3 EPS profit of 16 cents, much better than consensus of a -1 cent loss.

Photronics (PLAB +0.47%) slumped 18% in after-hours trading after it lowered guidance on Q4 EPS to 2 cents-3 cents from a prior view of 9 cents-17 cents.

Sunrun (RUN -1.67%) gained 3% in after-hours trading after it reported Q3 EPS of 16 cents, above consensus of 12 cents, and said it sees 2016 deployments of 285 MW, above a prior view of 270-280 MW.

Corbus Pharmaceuticals Holdings (CRBP -6.20%) slid over 3% in after-hours trading after it reported a Q3 loss of -12 cents a share, a wider loss than consensus of -10 cents.

Dec E-mini S&Ps (ESZ16 -0.45%) this morning are down -10.50 points (-0.48%). Thursday’s closes: S&P 500 +0.20%, Dow Jones +1.17%, Nasdaq -1.62%. The S&P 500 on Thursday rallied to a 2-month high and closed higher as bank stocks and health-care companies rallied on speculation the Trump administration will roll back regulatory scrutiny of both industries. Stock also found support on an -11,000 decline in U.S. weekly jobless claims, a bigger decline than expectations of -5,000. Stocks fell back from their best levels due to a sell-off in technology stocks on sector rotation as money managers shift out of the tech sector into stocks more likely to be profit from the Trump administration’s fiscal policies.

Dec 10-year T-notes (ZNZ16 -0.04%) this morning are down -4 ticks at a new 10-month nearest-futures low. Thursday’s closes: TYZ6 -15.00, FVZ6 -7.75. Dec 10-year T-notes on Thursday tumbled to a 10-month nearest-futures low and closed lower on speculation that the Trump administration will boost fiscal spending and stoke inflation as the 10-year T-note breakeven inflation rate surged to a 1-1/3 year high. T-notes extended their losses in late trading on weak demand for the Treasury’s $ 15 billion 30-year T-bond auction that had a bid-to-cover ratio of 2.11, below the 12-auction average of 2.32 and the weakest demand for a 30-year bond auction in 9 months.

The dollar index (DXY00 +0.03%) this morning is up +0.049 (+0.05%). EUR/USD (^EURUSD) is down -0.0016 (-0.15%) at a 2-week low. USD/JPY (^USDJPY) is down -0.54 (-0.51%). Thursday’s closes: Dollar index +0.281 (+0.29%), EUR/USD -0.0017 (-0.16%), USD/JPY +1.16 (+1.10%). The dollar index on Thursday climbed to a 2-week high and settled higher on speculation that the economic policies of a Trump administration will lead to higher inflation that boosts the chances of Fed rate hikes after the 10-year T-note breakeven inflation rate surged to a 1-1/3 year high. Another positive for the dollar was strength in stocks that fueled a rally in USD/JPY to a 3-1/2 month high on reduced safe-haven demand for the yen.

Dec crude oil prices (CLZ16 -1.39%) are down -73 cents (-1.63%) and Dec gasoline (RBZ16 +0.13%) is down -0.0067 (-0.50%). Thursday’s closes: Dec crude -0.61 (-1.35%), Dec gasoline -0.0225 (-1.66%). Dec crude oil and gasoline on Thursday closed lower as the dollar index rallied to a 2-week high and after a warning from the IEA that said oil prices may retreat amid “relentless global supply growth” unless OPEC enacts significant crude output cuts.