Live Index – Tue, 22 Apr 2014 Premarket
June E-mini S&Ps (ESM14 +0.01%) this morning are up +0.01% and European stocks are up +0.95% after drug maker stocks rallied as more than $ 28 billion in M&A deals has bolstered speculation of more takeovers. GlaxoSmithKline Plc and AstraZeneca Plc jumped more than 5% after Novartis AG agreed to buy Glaxo’s cancer-drug business for as much as $ 16 billion, and after reports surfaced about a potential AstraZeneca acquisition by Pfizer. The Ukraine deal nears collapse after pro-Russian forces who seized buildings in at least 10 eastern Ukrainian cities said they are not bound by the deal reached last Thursday by Ukraine. Asian stocks closed mixed: Japan -0.85%, Hong Kong -0.13%, China +0.44%, Taiwan +0.26%, Australia +0.46%, Singapore +0.67%, South Korea +0.25%, India -0.03%. Commodity prices are mixed. Jun crude oil (CLM14 -0.37%) is down -0.36%. Jun gasoline (RBM14 -0.43%) is down -0.46%. Jun gold (GCM14 +0.23%) is up +0.26%. May copper (HGK14 -0.36%) is down -0.35%. Agriculture and livestock prices are mixed. The dollar index (DXY00 -0.12%) is down -0.14%. EUR/USD (^EURUSD) recovered from a 1-1/2 week low and is up +0.19% on expectations for Eurozone Apr consumer confidence, scheduled to be released later today, will remain unchanged. USD/JPY (^USDJPY) is down -0.04%. June T-note prices (ZNM14 +0.03%) are up +2 ticks.
The chairman of China Huarong Asset Management, China’s largest manager of bad debt, said that China’s bad-loan ratio rose “significantly” in Q1 as the business environment this year has been “grim and complicated” as lenders face pressures on asset quality, liquidity and lending margins. This increases the risks for China’s entire banking industry.
ECB Executive Board member Coeure said that “all things being equal, a stronger euro justifies accommodative monetary policy, and that the ECB could cut the benchmark rate and/or deposit rate if necessary to counter the strength from the currency.”
Eurozone Feb construction output rose +0.1% m/m and +6.7% y/y, weaker than Jan which was revised to +1.6% m/m and +8.0% y/y from the originally reported +1.5% m/m and +8.8% y/y.
The Japan Feb leading index CI was revised upward to 108.9 from the originally reported 108.5. The Feb coincident index was revised down to 113.0 from the originally reported 113.4.
Today’s March existing home sales report is expected to show a -1.1% decline to 4.55 million, adding to the -0.4% decline to 4.60 million seen in February. Today’s Feb FHFA house price index is expected to show an increase of +0.5% m/m, matching the +0.5% m/m increase seen in January. Today’s Apr Richmond Fed manufacturing index is expected to show a +9 point increase to 2 following the -1 point decline to -7 seen in March. The Treasury today will sell $ 32 billion in 2-year T-notes.
There are 30 of the S&P 500 companies that report earnings today. Notable reports include AT&T (consensus $ 0.70), Yum Brands (0.84), Amgen (1.94), Discover (1.25), Comcast (0.64), Lockheed Martin (2.54), and McDonalds (1.24). The only equity conference this week is the Barclays Chicago Energy CFO Corporate Day on Tuesday.
Lockheed Martin (LMT +0.77%) reported Q1 EPS of $ 2.87, higher than consensus of $ 2.54.
Comcast (CMCSA +1.59%) reported Q1 EPS of 68 cents, better than consensus of 64 cents.
Harley-Davidson (HOG +1.35%) reported Q1 EPS of $ 1.21, stronger than consensus of $ 1.08.
Travelers (TRV -0.32%) reported Q1 EPS of $ 2.95, well ahead of consensus of $ 2.16.
Celanese (CE +0.96%) reported Q1 EPS of $ 1.33, well above consensus of $ 1.21.
Allergan (AGN +6.03%) surged 19% in European trading after Pershing Square reported a 9.7% stake in the company and then said that Valeant (VRX +3.24%) intends to propose a merger with Allergan.
Lone Pine Capital reported a 5.5% passive stake in Michael Kors (KORS +0.83%) .
Rent-A-Center (RCII -1.38%) reported Q1 adjusted EPS of 57 cents, better than consensus of 55 cents, and then raised guidance on fiscal 2014 EPS to $ 2.30-$ 2.50, higher than consensus of $ 2.29.
Werner (WERN -0.08%) reported Q1 EPS of 20 cents, below consensus of 21 cents.
Visium Asset reported a 5.1% passive stake in Brookdale Senior Living (BKD +0.41%) .
Polaris Venture Partners V reported a 17.3% stake in Cerulean (CERU +6.72%) .
The U.S. Food and Drug Administration approved Eli Lilly’s (LLY +0.71%) Cyramza drug to treat patients with advanced stomach cancer or gastroesophageal junction adenocarcinoma.
Hexcel (HXL unch) reported Q1 EPS of 50 cents, better than consensus of 49 cents.
Waste Connections (WCN -0.02%) reported Q1 adjusted EPS of 44 cents, higher than consensus of 41 cents.
Facebook (FB +3.90%) climbed over 2% in after-hours trading after it was upgraded to ‘Outperform’ from ‘Neutral’ at Credit Suisse.
Netflix (NFLX +0.80%) rose 7% in after-hours trading after it reported Q1 EPS of 86 cents, higher than consensus of 83 cents, and said it expects Q2 EPS of $ 1.12, better than consensus of $ 1.00.
June E-mini S&Ps (ESM14 +0.01%) this morning are up +0.25 of a point (+0.01%). The S&P 500 index on Monday rose to a 1-week high and closed higher. Bullish factors included (1) the +0.8% increase in U.S. Mar leading indicators, stronger than expectations of +0.7% and the largest increase in 4 months, and (2) optimism that U.S. Q1 company earnings results will continue to surprise on the upside as 70% of the 86 S&P 500 companies that have reported earnings results thus far have beaten expectations. Closes: S&P 500 +0.38%, Dow Jones +0.25%, Nasdaq +0.72%.
Jun 10-year T-notes (ZNM14 +0.03%) this morning are up +2 ticks. Jun 10-year T-note futures prices on Monday rebounded from a 2-week low and closed little changed. Bullish factors included (1) concerns over the global economy after Japan Mar exports rose at the slowest pace in a year, and (2) increased safe-haven demand for Treasuries on concern the crisis in Ukraine may escalate after three people were killed in a clash between pro-Russian militants and Ukraine forces in the Ukraine city of Slovyansk. T-note prices fell back from their best levels after strength in stocks undercut safe-haven demand for Treasuries. Closes: TYM4 -20.00, FVM4 -11.00.
The dollar index (DXY00 -0.12%) this morning is down -0.109 (-0.14%). EUR/USD (^EURUSD) is up +0.0026 (+0.19%). USD/JPY (^USDJPY) is down -0.04 (-0.04%). The dollar index on Monday rallied up to a 1-1/2 week high and closed higher. Supportive factors for the dollar included (1) the stronger-than-expected U.S. Mar leading indicators, which boosts the outlook for the Fed to continue to taper QE3, and (2) weakness in the yen after USD/JPY climbed to a 1-1/2 week high when Japan Mar exports rose +1.8% y/y, weaker than expectations of +6.5% y/y and the slowest pace of increase in a year, which bolsters speculation the BOJ may increase its stimulus measures. Closes: Dollar index +0.109 (+0.14%), EUR/USD -0.00206 (-0.15%), USD/JPY +0.211 (+0.21%).
Jun WTI crude oil (CLM14 -0.37%) this morning is down -37 cents (-0.36%) and Jun gasoline (RBM14 -0.43%) is down -0.0141 (-0.46%). Jun crude and gasoline prices on Monday closed higher with Jun gasoline at a 7-1/2 month high. Bullish factors included (1) the larger-than-expected +0.8% increase in U.S. Mar leading indicators, which signals strength in the U.S. economy and energy demand, (2) the ongoing Ukraine crisis and concern any further escalation of hostilities could lead to a disruption of energy supplies throughout Europe. Closes: CLM4 +0.28 (+0.27%). RBM4 +0.0221 (+0.73%).
|US||0900 ET||Feb FHFA house price index expected +0.5% m/m, Jan +0.5% m/m.|
|1000 ET||Apr Richmond Fed manufacturing index expected +9 to 2, Mar -1 to -7.|
|1000 ET||Mar existing home sales expected -1.1% to 4.55 million, Feb -0.4% to 4.60 million.|
|1145 ET||Former Fed Chairman Ben Bernanke speaks at the Economic Club of Canada on 8 Years of Crisis Management at the Federal Reserve and the Way Forward.|
|1300 ET||Treasury auctions $ 32 billion 2-year T-notes.|
|1500 ET||USDA Mar Cold Storage.|
|JPN||0100 ET||Revised Japan Fed leading index CI, previous 108.5. Revised Feb coincident index CI, previous 113.4.|
|EUR||0500 ET||Eurozone Feb construction output, Jan +1.5% m/m and +8.8% y/y.|
|1000 ET||Eurozone Apr consumer confidence expected unch at -9.3, Mar -9.3.|
|CHI||2145 ET||China HSBC Apr manufacturing PMI expected +0.3 to 48.3, Mar -0.5 to 48.0.|
|Company Name||Ticker||Time||Event Description||Period||Estimate|
|Pentair Ltd||PNR US||Bef-mkt||Q1 2014 Earnings Release||Q1 2014||0.728|
|Omnicom Group Inc||OMC US||Bef-mkt||Q1 2014 Earnings Release||Q1 2014||0.789|
|Lockheed Martin Corp||LMT US||Bef-mkt||Q1 2014 Earnings Release||Q1 2014||2.535|
|Allegheny Technologies Inc||ATI US||Bef-mkt||Q1 2014 Earnings Release||Q1 2014||-0.07|
|Regions Financial Corp||RF US||Bef-mkt||Q1 2014 Earnings Release||Q1 2014||0.195|
|Prologis Inc||PLD US||Bef-mkt||Q1 2014 Earnings Release||Q1 2014||0.42|
|Genuine Parts Co||GPC US||Bef-mkt||Q1 2014 Earnings Release||Q1 2014||1.019|
|Harley-Davidson Inc||HOG US||Bef-mkt||Q1 2014 Earnings Release||Q1 2014||1.082|
|Simon Property Group Inc||SPG US||Bef-mkt||Q1 2014 Earnings Release||Q1 2014||2.243|
|Interpublic Group of Cos Inc/The||IPG US||Bef-mkt||Q1 2014 Earnings Release||Q1 2014||-0.081|
|McDonald’s Corp||MCD US||Bef-mkt||Q1 2014 Earnings Release||Q1 2014||1.238|
|Bank of New York Mellon Corp/The||BK US||6:30||Q1 2014 Earnings Release||Q1 2014||0.535|
|United Technologies Corp||UTX US||6:59||Q1 2014 Earnings Release||Q1 2014||1.273|
|Xerox Corp||XRX US||7:15||Q1 2014 Earnings Release||Q1 2014||0.238|
|Bank of New York Mellon Corp/The||BK US||8:00||Q1 2014 Earnings Call||Q1 2014|
|Coca-Cola Enterprises Inc||CCE US||8:00||Annual General Meeting||Y 2014|
|Illinois Tool Works Inc||ITW US||8:00||Q1 2014 Earnings Release||Q1 2014||0.978|
|Omnicom Group Inc||OMC US||8:30||Q1 2014 Earnings Call||Q1 2014|
|Allegheny Technologies Inc||ATI US||8:30||Q1 2014 Earnings Call||Q1 2014|
|Comcast Corp||CMCSA US||8:30||Q1 2014 Earnings Call||Q1 2014|
|Interpublic Group of Cos Inc/The||IPG US||8:30||Q1 2014 Earnings Call||Q1 2014|
|Pentair Ltd||PNR US||9:00||Q1 2014 Earnings Call||Q1 2014|
|Travelers Cos Inc/The||TRV US||9:00||Q1 2014 Earnings Call||Q1 2014|
|United Technologies Corp||UTX US||9:00||Q1 2014 Earnings Call||Q1 2014|
|Harley-Davidson Inc||HOG US||9:00||Q1 2014 Earnings Call||Q1 2014|
|SunTrust Banks Inc||STI US||9:30||Annual General Meeting|
|Citigroup Inc||C US||10:00||Annual General Meeting||Y 2014|
|Xerox Corp||XRX US||10:00||Q1 2014 Earnings Call||Q1 2014|
|Illinois Tool Works Inc||ITW US||10:00||Q1 2014 Earnings Call||Q1 2014|
|CR Bard Inc||BCR US||Aft-mkt||Q1 2014 Earnings Release||Q1 2014||1.862|
|Yum! Brands Inc||YUM US||Aft-mkt||Q1 2014 Earnings Release||Q1 2014||0.837|
|AT&T Inc||T US||Aft-mkt||Q1 2014 Earnings Release||Q1 2014||0.698|
|Torchmark Corp||TMK US||Aft-mkt||Q1 2014 Earnings Release||Q1 2014||1.507|
|Nabors Industries Ltd||NBR US||Aft-mkt||Q1 2014 Earnings Release||Q1 2014||0.152|
|FMC Technologies Inc||FTI US||Aft-mkt||Q1 2014 Earnings Release||Q1 2014||0.5|
|Intuitive Surgical Inc||ISRG US||Aft-mkt||Q1 2014 Earnings Release||Q1 2014||2.7|
|Amgen Inc||AMGN US||Aft-mkt||Q1 2014 Earnings Release||Q1 2014||1.94|
|Juniper Networks Inc||JNPR US||Aft-mkt||Q1 2014 Earnings Release||Q1 2014||0.29|
|International Game Technology||IGT US||Aft-mkt||Q2 2014 Earnings Release||Q2 2014||0.189|
|Discover Financial Services||DFS US||Aft-mkt||Q1 2014 Earnings Release||Q1 2014||1.254|
|Noble Energy Inc||NBL US||Annual General Meeting||Y 2014|
|American Electric Power Co Inc||AEP US||Annual General Meeting|
|Travelers Cos Inc/The||TRV US||Q1 2014 Earnings Release||Q1 2014||2.155|
|Comerica Inc||CMA US||Annual General Meeting||Y 2014|
|PerkinElmer Inc||PKI US||Annual General Meeting|
|Actavis plc||ACT US||FDA Adcomm, Moxduo (morphine/oxycodone fixed-ratio combo), acute pain|
|VF Corp||VFC US||Annual General Meeting|
|Comcast Corp||CMCSA US||Q1 2014 Earnings Release||Q1 2014||0.644|
|Stryker Corp||SYK US||Annual General Meeting|