Live Index – Fri, 11 Apr 2014 Premarket
June E-mini S&Ps (ESM14 -0.53%) this morning are down -0.07% and European stocks are down -1.14% as equities look to stabilize following Thursday’s rout in the Nasdaq which tumbled more than 3%. JPMorgan Chase is down nearly 2% in pre-market trading and is undercutting U.S. stock futures this morning after it reported weaker-than-expected Q1 quarterly earnings, while a larger-than-expected decline in China Mar producer prices added to demand concerns in China and kept pressure on global stocks. Asian stocks closed lower: Japan -2.38%, Hong Kong -0.79%, China -0.14%, Taiwan -0.45%, Australia -0.95%, Singapore -0.17%, South Korea -0.72%, India -0.38%. Japan’s Nikkei Stock Index slumped to a 6-month low on the heels of yesterday’s slide in U.S. stocks along with weakness in Japanese exporters after the yen rose to a 3-week high against the dollar, which undercut exporters’ earnings prospects. Commodity prices are mixed. May crude oil (CLK14 -0.14%) is down -0.09%. May gasoline (RBK14 -0.12%) is down -0.13%. Jun gold (GCM14 +0.20%) is up +0.16%. May copper (HGK14 +0.59%) is up +0.59% after weekly Shanghai copper inventories tumbled -29,699 MT to a 2-1/2 month low of 142,671 MT. Agriculture and livestock prices are mixed. The dollar index (DXY00 +0.14%) is up +0.03%. EUR/USD (^EURUSD) is up +0.04% at a 3-week high. USD/JPY (^USDJPY) is down -0.02%. June T-note prices (ZNM14 +0.10%) are down -1.5 ticks.
China Mar CPI rose at a +2.4% y/y pace, right on expectations, while Mar PPI fell -2.3% y/y, a larger drop than expectations of -2.2% y/y and the steepest pace of decline in 9 months.
The German Mar wholesale price index was unch m/m and -1.7% y/y.
The German Mar CPI (EU harmonized) was left unrevised at +0.3% m/m and +0.9% y/y.
UK Feb construction output fell -2.8% m/m and rose +2.8% y/y, less than expectations of -1.3% m/m and +4.4% y/y.
The Japan Mar domestic CGPI was unch m/m and up +1.7% y/y, less than expectations of +0.1% m/m and +1.8% y/y.
Today’s early-April U.S. consumer confidence index from the University of Michigan is expected to show a +1.5 point increase to 81.5, reversing nearly all of the -1.6 point decline to 80.0 seen in March. Today’s Mar PPI report is expected to rise to +1.1% y/y from +0.9% y/y in Feb, while the March core PPI is expected to be unchanged from Feb at +1.1% y/y. There are 3 of the S&P 500 companies that report earnings today: JPMorgan Chase (consensus $ 1.38), Fastenal (0.38), and Wells Fargo (0.96). There are no equity conferences during the remainder of the week.
JPMorgan Chase (JPM -3.16%) fell nearly 2% in pre-market trading after it reported Q1 EPS of $ 1.28, below consensus of $ 1.38.
ConocoPhillips (COP -2.56%) was upgraded to ‘Equal Weight’ from ‘Underweight’ at Morgan Stanley.
Corning (GLW -1.84%) was downgraded to ‘Neutral’ from ‘Buy’ at UBS.
Gap (GPS -1.73%) was downgraded to ‘Neutral’ from ‘Buy’ at Janney Capital.
Ford (F -1.33%) was upgraded to ‘Buy’ from ‘Hold’ at Deutsche Bank.
Fastenal (FAST -0.41%) reported Q1 EPS of 38 cents, right on consensus.
Horton Capital Partners reported a 9.4% passive stake in Wireless Telecom Group (WTT +2.02%) .
Bed Bath & Beyond (BBBY -6.17%) was downgraded to ‘Neutral’ from ‘Buy’ at Citigroup.
Southpoint Capital reported a 5.07% passive stake in Nexstar (NXST -2.11%) .
Qualcomm (QCOM -2.33%) was initiated with a ‘Strong Buy’ at ISI Group with a price target of $ 90.
Gap (GPS -1.73%) reported that March Same-Store-Sales were down 6% y/y.
June E-mini S&Ps (ESM14 -0.53%) this morning are down -1.25 points (-0.07%). The S&P 500 on Thursday closed sharply lower. Bearish factors included (1) concern that a slowdown in China will drag the global economy down as well after China Mar exports unexpectedly fell for a second month when they dropped -6.6% y/y, weaker than expectations of a +4.8% y/y increase, and (2) a resumption in liquidation of the high-flying momentum stocks in the Nasdaq, which turned into technical selling and dragged the overall market lower as well. Stocks failed to garner much support from a -32,000 drop in weekly jobless claims to a 6-3/4 year low of 300,000. Closes: S&P 500 -2.09%, Dow Jones -1.62%, Nasdaq -3.13%.
Jun 10-year T-notes (ZNM14 +0.10%) this morning are down -1.5 ticks. Jun 10-year T-note futures prices on Thursday posted a 3-1/2 week high and closed higher. Bullish factors included (1) a slide in stocks, (2) concern eh global economy mat slow after China Mar exports unexpectedly declined for a second month, and (3) carry-over support from Wednesday’s minutes of the Mar 18-19 FOMC meeting that said that the rise in median projections for the Fed to begin raising the Fed funds rate was exaggerated. Closes: TYM4 +16.00, FVM4 +9.25.
The dollar index (DXY00 +0.14%) this morning is up +0.020 (+0.03%). EUR/USD (^EURUSD) is up +0.0006 (+0.04%). USD/JPY (^USDJPY) is down -0.02 (-0.02%). The dollar index on Thursday dropped to a 3-week low and closed lower. Bearish factors included (1) carry-over weakness from Wednesday’s dovish minutes of the Mar 18-19 FOMC meeting in which Fed members said projections for the timing of a Fed interest rate increase were overstated, and (2) increased safe-haven demand for the yen as USD/JPY fell to a 3-week low after stocks faltered. Closes: Dollar index -0.101 (-0.13%), EUR/USD +0.00308 (+0.22%), USD/JPY -0.466 (-0.46%).
May WTI crude oil (CLK14 -0.14%) this morning is down -9 cents (-0.09%) and May gasoline (RBK14 -0.12%) is down -0.0039 (-0.13%). May crude and gasoline prices on Thursday closed lower. May crude fell back from a 1-month high and closed lower on bearish factors that included (1) concern over Chinese economic growth and energy demand after China Mar exports unexpectedly fell for a second month, and (2) the slide in stocks which undercuts confidence in the economic outlook. Losses were contained after the dollar index fell to a 3-week low and U.S. jobless claims dropped to a 6-3/4 year low. Closes: CLK4 -0.20 (-0.19%). RBK4 -0.0005 (-0.02%).
|US||0830 ET||Mar PPI expected +0.1% m/m and +1.1% y/y, Feb -0.1% m/m and +0.9% y/y. Mar PPI ex food & energy expected +0.2% m/m and +1.1% y/y, Feb -0.2% m/m and +1.1% y/y.|
|0955 ET||Preliminary U.S. Apr University of Michigan consumer confidence expected +1.5 to 81.5, Mar -1.6 to 80.0.|
|GER||0200 ET||Revised German Mar CPI (EU harmonized), previous +0.3% m/m and +0.9% y/y.|
|UK||0430 ET||UK Feb construction output expected -1.3% m/m and +4.4% y/y, Jan +1.8% m/m and +5.4% y/y.|
|Company Name||Ticker||Time||Event Description||Period||Estimate|
|JPMorgan Chase & Co||JPM US||0.291666667||Q1 2014 Earnings Release||Q1 2014||1.378|
|Fastenal Co||FAST US||0.291666667||Q1 2014 Earnings Release||Q1 2014||0.376|
|Wells Fargo & Co||WFC US||8:00||Q1 2014 Earnings Release||Q1 2014||0.964|
|JPMorgan Chase & Co||JPM US||8:30||Q1 2014 Earnings Call||Q1 2014|
|H&R Block Inc||HRB US||9:00||Business Update Call|
|Wells Fargo & Co||WFC US||10:00||Q1 2014 Earnings Call||Q1 2014|
|Fastenal Co||FAST US||0.416666667||Q1 2014 Earnings Call||Q1 2014|
|CBL & Associates Properties Inc||CBL US||0.4375||Business Update Call|
|Mylan Inc/PA||MYL US||Annual General Meeting||Y 2014|
|Questar Corp||STR US||Roadshow – Day 4||Y 2014|