Live Index – Wed, 16 Apr 2014 Premarket
June E-mini S&Ps (ESM14 +0.46%) this morning are up +0.43% and European stocks are up +0.97% on strong company earnings results and after China’s economy grew more-than-expected in Q1. Intel rose over 1% in pre-market trading after it reported better-than-expected Q1 sales, and Yahoo is up over 8% after Alibaba, the Chinese e-commerce company that is planning to file for a U.S. IPO, posted its fifth straight quarterly profit gain. Asian stocks closed mostly higher: Japan +3.01%, Hong Kong +0.11%, China +0.14%, Taiwan +0.08%, Australia +0.60%, Singapore +0.21%, South Korea +0.03%, India -0.92%. China Q1 GDP grew at a 7.4% y/y pace, better than estimates, while a slide in the yen to a 1-week low against the dollar helped lift Japanese stocks as exporters rallied. Russian President Putin told German Chancellor Merkel that conflict in Ukraine has brought the country to the brink of civil war, while Ukraine accused Russia of fueling “terrorism” in its eastern provinces. Commodity prices are mostly higher. May crude oil (CLK14 +1.04%) is up +1.01% at a 6-week high on the Ukraine crisis and the stronger-than-expected China Q1 GDP. May gasoline (RBK14 +0.11%) is up +0.045. Jun gold (GCM14 +0.29%) is up +0.25%. May copper (HGK14 +0.67%) is up +0.32%. Agriculture and livestock prices are mixed. The dollar index (DXY00 -0.12%) is down -0.10%. EUR/USD (^EURUSD) is up +0.17%. USD/JPY (^USDJPY) is up +0.34% at a 1-week high. June T-note prices (ZNM14 -0.14%) are down -5 ticks.
Eurozone Mar CPI was left unrevised at +0.5% y/y, but Mar core CPI was revised lower to 0.7% y/y from the originally reported +0.8% y/y, which matches the Dec 2013 gain as the slowest pace of increase since Eurozone data began in 1991.
China Q1 GDP was +7.4%, better than expectations of +7.3% y/y.
China Mar industrial production was +8.7% year-to-date y/y, less than expectations of +8.8% year-to-date y/y.
China Mar retail sales rose +12.0% year-to-date y/y, better than expectations of +11.9% year-to-date y/y.
UK Mar jobless claims change was -30,400, higher than expectations of -30,000, and Feb was revised to show a decline of -37,000, more than the -34,600 originally reported. The Mar claimant count rate fell -0.1 to 3.4%, right on expectations and the lowest in 5-1/3 years.
The UK Feb unemployment rate dropped -0.3 to a 5-year low of 6.9% for the three months through Feb, a bigger decline than expectations of -0.1 to 7.1% for the three months through Feb.
Today’s March U.S. housing starts report is expected to rebound higher by +7.0% to 970,000 after the sharp drop seen in recent months. Today’s March industrial production report is expected to show another strong increase of +0.5%, adding to the +0.6% m/m increase seen in February. The markets will be watching today’s Beige Book to see if there is anecdotal evidence that the U.S. economy is regaining some momentum after the bad winter weather. There are 17 of the S&P 500 companies that report earnings today. Notable reports include Google (consensus $ 6.39), Bank of America (0.27), Capital One (1.70), American Express (1.30), IBM (2.54), Kinder Morgan (0.28). Equity conferences during the remainder of the week include: Bank of America Merrill Lynch Auto Summit Conference on Wed.
Bank of America (BAC +2.44%) reported Q1 EPS of 34 cents, higher than consensus of 27 cents.
United Natural Foods (UNFI -0.92%) was upgraded to ‘Buy’ from ‘Hold’ at Jefferies.
NetApp (NTAP +0.54%) was downgraded to ‘Neutral’ from ‘Buy’ at UBS.
Genuine Parts (GPC +0.38%) was upgraded to ‘Neutral’ from ‘Sell’ at Goldman Sachs.
Grainger (GWW +0.74%) reported Q1 EPS of $ 3.07, stronger than consensus of $ 2.96.
UnitedHealth (UNH +0.42%) was downgraded to ‘Neutral’ from ‘Buy’ at Citigroup.
PNC Financial Services Group (PNC +0.69%) reported Q1 EPS of $ 1.71, better than consensus of $ 1.65.
Billionare investor Carl Icahn boosted his stake in Navistar (NAV +1.35%) to 17.64% from 16.55%.
Linear Technology (LLTC +1.14%) reported Q3 adjusted EPS of 55 cents, better than consensus of 48 cents.
Casey’s General Stores (CASY -0.68%) reported March prepared food and fountain Same-Store-Sales were up 12.7% y/y.
Yahoo (YHOO +2.30%) jumped 8% in after-hours trading after it reported Q1 EPS of 38 cents, stronger than consensus of 37 cents, and reported Alibaba Q4 net income $ 1.36 billion vs $ 650 million for prior year.
CSX (CSX -0.32%) reported Q1 EPS of 40 cents, higher than consensus of 37 cents.
Intel (INTC +0.79%) rose over 1% in after-hours trading after it reported Q1 EPS of 38 cents, better than consensus of 37 cents.
June E-mini S&Ps (ESM14 +0.46%) this morning are up +8.00 points (+0.43%). The S&P 500 on Tuesday closed higher on optimism over Q1 company earnings results. However, bearish factors included (1) the -3.32 drop in the Apr Empire manufacturing index to a 5-month low of 1.29, weaker than expectations of a +2.39 point increase to 8.00, (2) concern the slowdown in China’s economy may deepen after China’s money supply grew at the slowest pace on record last month, and (3) the escalation of tensions in Ukraine after Ukraine forces launched an offensive to dislodge militants from towns in the eastern part of the country. Closes: S&P 500 +0.68%, Dow Jones +0.55%, Nasdaq +0.38%.
Jun 10-year T-notes (ZNM14 -0.14%) this morning are down -5 ticks. Jun 10-year T-note futures prices on Tuesday closed little changed as they gave up a morning rally after stocks erased an early decline and closed higher. T-notes were supported by the unexpected decline in the Apr Empire manufacturing index and flight-to-safety demand as the Ukraine crisis escalated. Closes: TYM4 unch, FVM4 -2.75.
The dollar index (DXY00 -0.12%) this morning is down -0.081 (-0.10%). EUR/USD (^EURUSD) is up +0.0023 (+0.17%). USD/JPY (^USDJPY) is up +0.35 (+0.34%) at a 1-week high. The dollar index on Tuesday closed higher. Supportive factors included (1) increased safe-haven demand as the Ukraine crisis escalated, and (2) weakness in EUR/USD after the German Apr ZEW expectations of economic growth fell more than expected to an 8-month low. Closes: Dollar index +0.074 (+0.09%), EUR/USD -0.00056 (-0.04%), USD/JPY +0.069 (+0.07%).
May WTI crude oil (CLK14 +1.04%) this morning is up +1.05 (+1.01%) at a 6-week high and May gasoline (RBK14 +0.11%) is up +0.0012 (+0.04%). May crude and gasoline prices on Tuesday closed mixed. Crude prices closed lower on concern that an economic slowdown in China may deepen and undercut energy demand after China’s money supply last month grew at the slowest pace on record. Gasoline prices closed higher on expectations for weekly EIA gasoline inventories on Wed to fall -1.56 million bbl to a 4-1/2 month low. Closes: CLK4 -0.30 (-0.29%). RBK4 +0.0037 (+0.12%).
|US||0700 ET||Weekly MBA mortgage applications, previous -1.6% with purchase sub-index +2.7% and refi sub-index -4.9%.|
|0800 ET||Fed Governor Jeremy Stein speaks at the Atlanta Feds Financial Markets Conference on the topic Was Quantitative Easing Needed to Unstick Markets? Or Has It Merely Sped Us Toward The Next Crisis?|
|0830 ET||Mar housing starts expected +7.0% to 970,000, Feb -0.2% to 907,000. Mar building permits expected -0.3% to 1.010 million, Feb +7.3% to 1.014 million.|
|0915 ET||Mar industrial production expected +0.5%, Feb +0.6% m/m. Mar manufacturing production expected +0.6%, Feb +0.8%. Mar capacity utilization expected +0.3 to 78.7%, Feb +0.3 to 78.4%.|
|1030 ET||EIA Weekly Petroleum Status Report.|
|1130 ET||Atlanta Fed President Dennis Lockhart delivers closing remarks at the Atlanta Feds Financial Markets Conference.|
|1215 ET||Fed Chair Janet Yellen speaks to the Economic Club of New York.|
|1325 ET||Dallas Fed President Richard Fisher speaks on the U.S> and regional economic outlook at the Texas Public Policy Foundation Conference in Austin, TX.|
|1400 ET||Fed Beige Book.|
|JPN||0030 ET||Revised Japan Feb industrial production, previous -2.3% m/m and +6.9% y/y. Feb capacity utilization, Jan +5.9% m/m.|
|UK||0430 ET||UK Mar jobless claims change expected -30,000, Feb -34,600. Mar claimant count rate expected -0.1 to 3.4%, Feb 3.5%.|
|0430 ET||UK Feb avg weekly earnings expected +1.8% 3-mo avg y/y, Jan +1.4% 3-mo avg y/y. Feb weekly earnings ex-bonus expected +1.7% 3-mo avg y/y, Jan +1.3% 3-mo avg y/y.|
|EUR||0500 ET||Revised Eurozone Mar CPI, previous +0.5% y/y and core +0.8% y/y.|
|Company Name||Ticker||Time||Event Description||Period||Estimate|
|Abbott Laboratories||ABT US||Bef-mkt||Q1 2014 Earnings Release||Q1 2014||0.357|
|Huntington Bancshares Inc/OH||HBAN US||Bef-mkt||Q1 2014 Earnings Release||Q1 2014||0.17|
|US Bancorp/MN||USB US||Bef-mkt||Q1 2014 Earnings Release||Q1 2014||0.731|
|LyondellBasell Industries NV||LYB US||5:30||Annual General Meeting||Y 2013|
|Bank of America Corp||BAC US||7:00||Q1 2014 Earnings Release||Q1 2014||0.266|
|St Jude Medical Inc||STJ US||7:30||Q1 2014 Earnings Release||Q1 2014||0.95|
|WW Grainger Inc||GWW US||8:00||Q1 2014 Earnings Release||Q1 2014||2.956|
|WW Grainger Inc||GWW US||8:00||Q1 2014 Earnings Call||Q1 2014|
|St Jude Medical Inc||STJ US||8:00||Q1 2014 Earnings Call||Q1 2014|
|Bank of America Corp||BAC US||8:30||Q1 2014 Earnings Call||Q1 2014|
|CSX Corp||CSX US||8:30||Q1 2014 Earnings Call||Q1 2014|
|Abbott Laboratories||ABT US||9:00||Q1 2014 Earnings Call||Q1 2014|
|US Bancorp/MN||USB US||9:00||Q1 2014 Earnings Call||Q1 2014|
|PNC Financial Services Group Inc/The||PNC US||10:00||Q1 2014 Earnings Call||Q1 2014|
|CR Bard Inc||BCR US||10:00||Annual General Meeting||Y 2014|
|Huntington Bancshares Inc/OH||HBAN US||10:00||Q1 2014 Earnings Call||Q1 2014|
|Linear Technology Corp||LLTC US||11:30||Q3 2014 Earnings Call||Q3 2014|
|Gap Inc/The||GPS US||13:00||Investor Meeting||Y 2014|
|Red Hat Inc||RHT US||13:30||Analyst Day||Y 2014|
|Capital One Financial Corp||COF US||16:05||Q1 2014 Earnings Release||Q1 2014||1.702|
|Google Inc||GOOGL US||16:30||Q1 2014 Earnings Call||Q1 2014|
|Kinder Morgan Inc/DE||KMI US||16:30||Q1 2014 Earnings Call||Q1 2014|
|International Business Machines Corp||IBM US||16:30||Q1 2014 Earnings Release||Q1 2014||2.539|
|International Business Machines Corp||IBM US||16:30||Q1 2014 Earnings Call||Q1 2014|
|Kansas City Southern||KSU US||16:30||Q1 2014 Earnings Call||Q1 2014|
|American Express Co||AXP US||17:00||Q1 2014 Earnings Call||Q1 2014|
|Capital One Financial Corp||COF US||17:00||Q1 2014 Earnings Call||Q1 2014|
|SanDisk Corp||SNDK US||17:00||Q1 2014 Earnings Call||Q1 2014|
|People’s United Financial Inc||PBCT US||17:00||Q1 2014 Earnings Release||Q1 2014||0.195|
|American Express Co||AXP US||Aft-mkt||Q1 2014 Earnings Release||Q1 2014||1.297|
|Google Inc||GOOGL US||Aft-mkt||Q1 2014 Earnings Release||Q1 2014||6.386|
|Noble Corp plc||NE US||Aft-mkt||Q1 2014 Earnings Release||Q1 2014||0.702|
|Kinder Morgan Inc/DE||KMI US||Aft-mkt||Q1 2014 Earnings Release||Q1 2014||0.279|
|SanDisk Corp||SNDK US||Aft-mkt||Q1 2014 Earnings Release||Q1 2014||1.266|
|Kansas City Southern||KSU US||Aft-mkt||Q1 2014 Earnings Release||Q1 2014||0.987|
|SLM Corp||SLM US||Aft-mkt||Q1 2014 Earnings Release||Q1 2014||0.55|
|PNC Financial Services Group Inc/The||PNC US||Q1 2014 Earnings Release||Q1 2014||1.653|
|Sherwin-Williams Co/The||SHW US||Annual General Meeting|