Live Index – Mon, 14 Apr 2014 Premarket
June E-mini S&Ps (ESM14 unch) this morning are down -0.03% at a 2-month low and European stocks are down -0.54% at a 2-1/2 week low on an escalation of tensions in Ukraine. The Ukrainian government reported that camouflage gunmen fired on Ukrainian troops near Slovyansk, about 150 miles from the Russian border, killing one serviceman and wounding five. Envoys from the EU, Russia, Ukraine and the U.S. are scheduled to hold talks Apr 17 in Geneva to resolve the crisis. According to two U.S. officials, the Russian plan is to split Ukraine into federated regions, some of which may then vote to rejoin Russia. Asian stocks closed mostly lower: Japan -0.36%, Hong Kong +0.15%, China -0.09%, Taiwan -0.57%, Australia -1.28%, Singapore +0.52%, South Korea -0.01%, India closed for holiday. Commodity prices are mixed. May crude oil (CLK14 -0.10%) is up +0.02%. May gasoline (RBK14 +0.19%) is down -0.08%. Jun gold (GCM14 +0.23%) is up +0.37% at a 2-1/2 week high on a flight to safety due to escalation of the Ukraine crisis. May copper (HGK14 +0.13%) is up +0.16%. Agriculture prices are higher. The dollar index (DXY00 +0.35%) is up +0.32%. EUR/USD (^EURUSD) is down -0.37% after ECB President Draghi said that the stronger euro warrants more monetary stimulus. USD/JPY (^USDJPY) is up +0.10%. June T-note prices (ZNM14 -0.06%) are down -1.5 ticks.
In a sign that the ECB might boost its stimulus measures, ECB President Draghi said on Saturday at the IMF meeting in Washington that “the strengthening of the exchange rate requires further monetary stimulus.”
Eurozone Feb industrial production rose +0.2% m/m and +1.7% y/y, slightly better than expectations of +0.2% m/m and +1.5% y/y.
Today’s March retail sales report is expected to show a strong increase of +0.9% and +0.5% ex-autos. There are 2 of the S&P 500 companies that report earnings today: Citigroup (consensus $ 1.14), M&T Bank ($ 1.61). Equity conferences during the week include: Water Energy Technology and Environment Exhibition (WETEX) on Tue, Project Ara Developers Conference on Tue, and Bank of America Merrill Lynch Auto Summit Conference on Wed.
Yahoo (YHOO -1.59%) was upgraded to ‘Buy’ from ‘Neutral’ at SunTrust.
Eaton Vance (EV -1.21%) was upgraded to ‘Neutral’ from ‘Sell’ at Citigroup.
Whole Foods Market (WFM -0.22%) was downgraded to ‘Hold’ from ‘Buy’ at BB&T.
Bebe stores (BEBE -3.01%) were upgraded to ‘Buy’ from ‘Neutral’ at Janney Capital.
British Petroleum (BP -1.72%) was upgraded to ‘Buy’ from ‘Hold’ at Canaccord.
Eli Lilly (LLY -0.36%) was upgraded to ‘Hold’ from ‘Underperform’ at Jefferies.
Johnson & Johnson (JNJ +0.34%) fell 1% in European trading after Jeffries downgraded the stock to ‘Hold’ from ‘Buy,’ citing valuation.
Fiera Capital reported a 8.02% passive stake in Richmont Mines (RIC -2.07%) .
Dow Jones reports that Amazon.com (AMZN -1.70%) plans to launch a smartphone in the second half of this year.
Fitch Ratings downgraded the credit ratings for Alcoa (AA -1.26%) to ‘BB+’ from ‘BBB-‘ and kept the rating outlook stable.
June E-mini S&Ps (ESM14 unch) this morning are down -0.50 of a point (-0.03%) at a 2-month low. The S&P 500 on Friday fell to a 2-month low and closed lower. Bearish factors included (1) carry-over selling from Thursday’s rout as the S&P 500 corrects lower from the record high posted earlier this month, and (2) concern about Chinese demand after China 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. A bullish factor for stocks was the +2.6 point increase in the U.S. Apr University of Michigan consumer confidence to a 9-month high of 82.6. Closes: S&P 500 -0.95%, Dow Jones -0.89%, Nasdaq -1.17%.
Jun 10-year T-notes (ZNM14 -0.06%) this morning are down -1.5 ticks. Jun 10-year T-note futures prices on Friday posted a 1-month high on increased safe-haven demand after the S&P 500 fell to a 2-month low. However, T-note prices fell back from their best levels after the Apr University of Michigan consumer confidence rose to a 9-month high. Closes: TYM4 +3.00, FVM4 +1.50.
The dollar index (DXY00 +0.35%) this morning is up +0.255 (+0.32%). EUR/USD (^EURUSD) is down -0.0052 (-0.37%). USD/JPY (^USDJPY) is up +0.10 (+0.10%). The dollar index on Friday closed slightly higher after U.S. Apr University of Michigan consumer confidence rose more than expected to a 9-month high. The dollar index also gained support from increased safe-haven demand after the S&P 500 sold off for a second day to a 2-month low. Closes: Dollar index +0.069 (+0.09%), EUR/USD -0.00021 (-0.02%), USD/JPY +0.084 (+0.08%).
May WTI crude oil (CLK14 -0.10%) this morning is up +2 cents (+0.02%) and May gasoline (RBK14 +0.19%) is down -0.0023 (-0.08%). May crude and gasoline prices on Friday rallied to 1-1/4 month highs and closed higher. Bullish factors included (1) the larger-than-expected increase in U.S. Apr University of Michigan consumer confidence to a 9-month high, which boosted confidence in the economic outlook and energy demand, and (2) strength in gasoline as the shutdown of U.S. refiners for seasonal maintenance has reduced gasoline supplies with EIA gasoline stockpiles at a 4-1/2 month low. Closes: CLK4 +0.33 (+0.33%). RBK4 +0.0065 (+0.22%).
|US||0830 ET||Mar retail sales expected +0.9% and +0.5% ex autos, Feb +0.3% and +0.3% ex autos.|
|1000 ET||Feb business inventories expected +0.5%, Jan +0.4%.|
|1100 ET||USDA weekly grain export inspections.|
|1100 ET||CBO releases updated 10-year baseline projections of federal spending, revenues and budget deficits.|
|1245 ET||BOF Governor Christian Noyer moderates a panel discussion at the Europlace Financial Forum at the NYSE that includes Fed Governor Daniel Tarullo and BOK Deputy Governor Tae Soo Kang.|
|1600 ET||USDA weekly crop progress.|
|EUR||0500 ET||Eurozone Feb industrial production expected +0.2% m/m and +1.5% y/y, Jan -0.1% m/m and +2.2% y/y.|
|UK||1901 ET||UK Mar BRC sales like-for-like expected +1.0% y/y, Feb -1.0% y/y.|
|Company Name||Ticker||Time||Event Description||Period||Estimate|
|M&T Bank Corp||MTB US||Bef-mkt||Q1 2014 Earnings Release||Q1 2014||1.613|
|Citigroup Inc||C US||8:00||Q1 2014 Earnings Release||Q1 2014||1.137|
|Vornado Realty Trust||VNO US||10:00||Business Update Call|
|M&T Bank Corp||MTB US||10:00||Q1 2014 Earnings Call||Q1 2014|
|Citigroup Inc||C US||11:00||Q1 2014 Earnings Call||Q1 2014|
|Goodyear Tire & Rubber Co/The||GT US||Annual General Meeting|
|JB Hunt Transport Services Inc||JBHT US||Q1 2014 Earnings Release||Q1 2014||0.615|