US : Pre Market News – 15 Nov 2016
Dec E-mini S&Ps (ESZ16 +0.13%) are up +0.19% and European stocks are up +0.04% as a rally in oil prices lifts energy producing stocks. Dec WTI crude oil (CLZ16 +3.05%) is up sharply by +3.60% as Qatar, Algeria and Venezuela are leading a push to overcome a divide among OPEC’s biggest oil producers to secure a deal on a cut in OPEC production. Saudi Arabia said it is ready to cut production but only if it can get Iraq to cut its output and if it can get Iran to freeze its oil production at current levels. Another positive for stocks is the increase in German investor confidence after the German Nov ZEW survey expectations of economic growth rose to a 5-month high. Asian stocks settled mostly lower: Japan -0.03%, Hong Kong +0.46%, China -0.11%, Taiwan -0.10%, Australia -0.37%, Singapore +0.37%, South Korea -0.32%, India -1.92%.
The dollar index (DXY00 -0.24%) is down -0.29%. EUR/USD (^EURUSD) is up +0.23%. USD/JPY (^USDJPY) is down -0.06%.
Dec 10-year T-note prices (ZNZ16 +0.10%) are up +2.5 ticks.
The German Nov ZEW survey expectations of economic growth rose +7.6 to 13.8, stronger than expectations of +1.9 to 8.1 and the highest in 5 months.
Eurozone Q3 GDP rose +0.3% q/q and +1.6% y/y, right on expectations.
Key U.S. news today includes: (1) Boston Fed President Eric Rosengren (voter) speaks to the Portland Chamber of Commerce, (2) Nov Empire manufacturing survey business conditions (expected +4.3 to -2.5, Oct -4.8 to -6.8), (3) Oct import price index (expected +0.4% m/m and -0.3% y/y, Sep +0.1% m/m and -1.1% y/y), (4) Oct retail sales (expected +0.6% m/m and +0.5% ex autos, Sep +0.6% and +0.5% ex autos), (5) Fed Governor Daniel Tarullo speaks on finance and the economy at the Wall Street Journal’s CEO Council, (6) Sep business inventories (expected +0.2%, Aug +0.2%), (7) Fed Vice Chair Stanley Fischer speaks at the Brookings Institute on “Do we have a liquidity problem post-crisis?,” and (8) Dallas Fed President Robert Kaplan (non-voter) speaks at the North American Strategy for Competitiveness Conference.
S&P 500 earnings reports today include: Home Depot (consensus $ 1.58), TJX (0.87), Agilent Technologies (0.52).
U.S. IPO’s scheduled to price today: none.
Equity conferences this week include: UBS Global Technology Conference on Mon-Wed, Morgan Stanley Global Chemicals and Agriculture Conference on Mon-Tue, J.P. Morgan Ultimate Services Investor Conference on Tue, NAREIT REIT World Conference on Tue, Bank of America Merrill Lynch Banking & Financial Services Conference on Tue-Wed, Stifel, Nicolaus & Co Health Care Conference on Tue-Wed, Morgan Stanley Global Consumer & Retail Conference on Tue-Thu, Barclays Select Series Conference on Wed, Goldman Sachs Metals and Mining Conference on Wed, William Blair Financial Technology and Services Summit on Wed, Bank of America Merrill Lynch Global Energy Conference on Wed-Thu, Jefferies London Health Care Conference on Wed-Thu, Canaccord Genuity Medical Technology and Diagnostics Forum on Thu, Vertical Research Partners Global Materials Conference on Thu, UBS Industrials and Transportation Conference on Thum, Morgan Stanley European Technology, Media & Telecom Conference on Fri.
Home Depot (HD -1.68%) rose nearly 3% in pre-market trading after it reported Q3 EPS of $ 1.60, better than consensus of $ 1.58, and then raised guidance on full-year EPS to $ 6.33 from an August 16 estimate of $ 6.31.
Wells Fargo (WFC +2.88%) was downgraded to ‘Sell’ from ‘Neutral’ at Guggenheim with a price target of $ 47.
HCA Holdings (HCA +3.39%) climbed 2% in after-hours trading after its board authorized $ 2 billion in share repurchases.
Southwest Airlines (LUV +3.44%) and American Airlines Group (AAL +1.09%) both gained over 2% in after-hours trading after Berkshire Hathaway said it added both companies to its holdings.
Aimmune Therapeutics (AIMT +4.71%) slid 6% in after-hours trading after it said it sees 2016 GAAP R&D expenses of $ 50 million-$ 55 million, higher than an August 10 view of $ 40 million-$ 45 million.
Pier 1 Imports (PIR +0.76%) rose over 4% in after-hours trading after it said it sees Q3 adjusted EPS at the high end of view of 9 cents-15 cents, above consensus of 11 cents.
Tesaro (TSRO +2.95%) fell nearly 6% in after-hours trading after it proposed an offering of 1.75 million shares of common stock.
Advance Auto Parts (AAP -1.46%) rallied over 10% in after-hours trading after it reported Q3 adjusted EPS of $ 1.73, above consensus of $ 1.72, and said Q3 comparable sales fell -1%, less than consensus of -3.5%.
Zoe’s Kitchen (ZOES +0.76%) dropped almost 4% in after0hours trading after it reported Q3 restaurant comparable sales were up +2.4%, weaker than consensus of +2.8%, and said its sees full-year revenue of $ 276 million to $ 277 million, below consensus of $ 277.7 million.
Alarm.com Holdings (ALRM +5.37%) jumped nearly 6% in after-hours trading after it reported Q3 adjusted EPS of 19 cents, above consensus of 11 cents, and hen raised its 2016 revenue view to $ 254.0 million-$ 256.3 million from a prior view of $ 242.3 million-$ 245.8 million.
Globant SA (GLOB +2.20%) fell over 3% in after-hours trading after it reported Q3 non-IFRS EPS of 30 cents, below consensus of 31 cents, and said it sees Q4 non-IFRS EPX of so cents-33 cents, weaker than consensus of 3 cents.
AngioDynamics (ANGO +0.89%) slid 3% in after-hours trading after it announced a secondary offering of 2.5 million shares.
LifeLock (LOCK +3.03%) climbed over 4% in after-hours trading after Bloomberg reported that Symantec and Permira are among companies interested in acquiring LifeLock.
Amplify Sack Brands (BETR -3.79%) tumbled 9% in after-hours trading after it reported Q3 adjusted EPS of 12 cents, weaker than consensus of 15 cents, and then lowered guidance in 2016 adjusted EPS to 49 cents-51 cents from a May 2 view of 61 cents-64 cents.
Dec E-mini S&Ps (ESZ16 +0.13%) this morning are up +4.00 points (+0.19%). Monday’s closes: S&P 500 -0.01%, Dow Jones +0.11%, Nasdaq -1.05%. The S&P 500 on Monday closed slightly lower on the continued surge in the 10-year T-note yield to a 10-1/4 month high of 2.30%, which is negative for equity valuations. Meanwhile, energy producer stocks fell on the fall in crude oil prices to a 3-month low and tech stocks were dragged lower by a -2.5% loss in Apple and a -1.5% decline in Microsoft.
Dec 10-year T-notes (ZNZ16 +0.10%) this morning are up +2.5 ticks. Monday’s closes: TYZ6 -16.50, FVZ6 -10.75. Dec 10-year T-notes on Monday tumbled to a 10-1/4 month nearest-futures low on continued speculation that the Trump administration’s fiscal stimulus plans will boost economic growth and inflation and lead to faster Fed rate hikes. T-notes were also undercut by increased inflation expectations after the 10-year T-note breakeven inflation rate rose to a 1-1/3 year high.
The dollar index (DXY00 -0.24%) this morning is down -0.295 (-0.29%). EUR/USD (^EURUSD) is up +0.0025 (+0.23%). USD/JPY (^USDJPY) is down -0.06 (0.06%). Monday’s closes: Dollar index +1.050 (+1.06%), EUR/USD -0.0118 (-1.09%), USD/JPY +1.77 (+1.66%). The dollar index on Monday jumped to an 11-1/4 month high and closed sharply higher on improved U.S. interest rate differentials with the surge in U.S. Treaury yields and on continued expectations for a steeper path of Fed rate hikes in 2017. In addition, EUR/USD fell to an 11-1/4 month low on speculation the ECB may boost stimulus measures after ECB Vice President Constancio said that the +0.8% y/y increase in Eurozone Oct core CPI is “a cause of concern.” The Chinese yuan slumped to a 6-year low against the dollar on concern that the Trump administration’s protectionist trade tendencies may undercut Chinese exports.
Dec crude oil prices (CLZ16 +3.05%) are up +$ 1.56 a barrel (+3.60%) and Dec gasoline (RBZ16 +2.30%) is up +0.0328 (+2.57%). Monday’s closes: Dec crude -0.09 (-0.21%), Dec gasoline -0.0227 (-1.74%). Dec crude oil and gasoline on Monday sold off with Dec crude at a 3-month low and Dec gasoline at a 2-1/4 month low. Crude oil prices were undercut by the surge in the dollar index to an 11-1/4 month high and by doubt that OPEC will be able to reach a deal on cutting crude production when it meets Nov 30. Crude oil recovered most of its losses after a report that Qatar, Algeria and Venezuela are leading a push to overcome the divide between Saudi Arabia, Iran and Iraq on how to share crude output cuts.
|Tuesday, Nov 15|
|Tue||US||0730 ET||Boston Fed President Eric Rosengren (voter) speaks to the Portland Chamber of Commerce.|
|0830 ET||Nov Empire manufacturing survey business conditions expected +4.3 to -2.5, Oct -4.8 to -6.8.|
|0830 ET||Oct import price index expected +0.4% m/m and -0.3% y/y, Sep +0.1% m/m and -1.1% y/y.|
|0830 ET||Oct retail sales expected +0.6% m/m and +0.5% ex autos, Sep +0.6% and +0.5% ex autos.|
|0905 ET||Fed Governor Daniel Tarullo speaks on finance and the economy at the Wall Street Journals CEO Council.|
|1000 ET||Sep business inventories expected +0.2%, Aug +0.2%.|
|1330 ET||Fed Vice Chair Stanley Fischer speaks at the Brookings Institute on Do we have a liquidity problem post-crisis?|
|1330 ET||Dallas Fed President Robert Kaplan (non-voter) speaks at the North American Strategy for Competitiveness Conference.|
|Wednesday, Nov 16|
|US||0345 ET||St. Louis Fed President James Bullard (voter) speaks on a panel to the UBS European Conference in London about Monetary Policy after QE: Helicopter Money of Back to Raising Rates?|
|0700 ET||Weekly MBA mortgage applications, previous -1.2% with purchase sub-index +1.4% and refi sub-index -2.7%.|
|0745 ET||Minneapolis Fed President Neel Kashkari (non-voter) unveils the Feds plan to end too-big-to fail banking in a speech before the Economic Club of New York.|
|0830 ET||Oct PPI final demand expected +0.3% m/m and +1.2% y/y, Sep +0.3% m/m and +0.7% y/y. Oct PPI ex food & energy expected +0.2% m/m and +1.6% y/y, Sep +0.2% m/m and +1.2% y/y.|
|0915 ET||Oct industrial production expected +0.2%, Sep +0.1%. Oct manufacturing production expected +0.3%, Sep +0.2%. Oct capacity utilization expected +0.1 to 75.5%, Sep +0.1 to 75.4%.|
|1000 ET||Nov NAHB housing market index expected unch at 63, Oct -2 to 63.|
|1030 ET||EIA Weekly Petroleum Status Report.|
|1730 ET||Philadelphia Fed President Patrick Harker (non-voter) speaks on the purposes and functions of the Federal Reserve at an event in Philadelphia.|
|Home Depot Inc/The||HD US||Bef-mkt||Q3 2017 Earnings Release||Q3 2017||1.58|
|Zebra Technologies Corp||ZBRA US||Bef-mkt||Q3 2016 Earnings Release||Q3 2016||1.413|
|Sally Beauty Holdings Inc||SBH US||Bef-mkt||Q4 2016 Earnings Release||Q4 2016||0.418|
|Aramark||ARMK US||Bef-mkt||Q4 2016 Earnings Release||Q4 2016||0.493|
|Dick’s Sporting Goods Inc||DKS US||7:30||Q3 2017 Earnings Release||Q3 2017||0.423|
|Avis Budget Group Inc||CAR US||8:30||Investor Day||Y 2016|
|Zebra Technologies Corp||ZBRA US||8:30||Q3 2016 Earnings Call||Q3 2016|
|Home Depot Inc/The||HD US||9:00||Q3 2017 Earnings Call||Q3 2017|
|United Continental Holdings Inc||UAL US||9:00||Investor Day||Y 2016|
|CommScope Holding Co Inc||COMM US||9:00||Roadshow||Y 2016|
|TJX Cos Inc/The||TJX US||9:30||Q3 2017 Earnings Release||Q3 2017||0.871|
|Dick’s Sporting Goods Inc||DKS US||10:00||Q3 2017 Earnings Call||Q3 2017|
|Aramark||ARMK US||10:00||Q4 2016 Earnings Call||Q4 2016|
|QIAGEN NV||QGEN US||10:30||Analyst and Investor Day||Y 2016|
|TJX Cos Inc/The||TJX US||11:00||Q3 2017 Earnings Call||Q3 2017|
|Sally Beauty Holdings Inc||SBH US||11:00||Q4 2016 Earnings Call||C3 2016|
|Agilent Technologies Inc||A US||16:30||Q4 2016 Earnings Call||Q4 2016|
|General Electric Co||GE US||17:00||Investor Meeting||Y 2016|
|Agilent Technologies Inc||A US||Aft-mkt||Q4 2016 Earnings Release||Q4 2016||0.521|
|Amgen Inc||AMGN US||20:00||Investor Meeting||Y 2016|
|JPMorgan Chase & Co||JPM US||Credit-card Charge-offs and Delinquencies|
|Bank of America Corp||BAC US||Credit-card Charge-offs and Delinquencies|
|Citigroup Inc||C US||Credit-card Charge-offs and Delinquencies|
|Capital One Financial Corp||COF US||Credit-card Charge-offs and Delinquencies|
|Alliance Data Systems Corp||ADS US||Credit-card Charge-offs and Delinquencies|
|Discover Financial Services||DFS US||Credit-card Charge-offs and Delinquencies|
|Synchrony Financial||SYF US||Credit-card Charge-offs and Delinquencies|
|CDK Global Inc||CDK US||Annual General Meeting|
|Donnelley Financial Solutions Inc||DFIN US||Q3 2016 Earnings Release||Q3 2016||0.34|
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