US : Pre Market News – 05 Jan 2017
Thu Jan 05 2017
Nikki Bailey (1068 articles)

US : Pre Market News – 05 Jan 2017


Mar E-mini S&Ps (ESH17 -0.20%) are down -0.03% and European stocks are up +0.14%. U.S. stock futures are being dragged lower by weakness in retailers with Kohl’s down 13% and Macy’s down 10% in pre-market trading after both companies cut their 2017 EPS forecasts. Losses were limited as energy producers rose with Feb WTI crude oil (CLG17 +0.79%) up +0.94% after the API reported late Wednesday that U.S. crude supplies fell -7.43 million bbl last week. Feb COMEX gold (GCG17 +0.82%) is up +0.64% at a 3-week high and the German 10-year bund yield climbed to a 2-week high on increased price pressures after Eurozone Nov producer prices posted their first year-on-year increase in more than 3 years. Asian stocks settled mixed: Japan -0.37%, Hong Kong +1.46%, China +0.21%, Taiwan +0.77%, Australia +0.30%, Singapore +1.12%, South Korea -0.43%, India +0.92%. Japan’s Nikkei Stock Index closed lower as exporter stocks sold-off after USD/JPY fell to a 3-week low, which reduces exporters’ earnings prospects. China’s Shanghai Composite climbed to a 3-week high on signs of strength in the Chinese economy after a gauge of growth in the service sector last month expanded at the fastest pace in 17 months.

The dollar index (DXY00 -0.43%) is down -0.31% at a 3-week low. EUR/USD (^EURUSD) is up +0.07%. USD/JPY (^USDJPY) is down -0.43% at a 3-week low.

Mar 10-year T-note prices (ZNH17 +0.13%) are up +3.5 ticks at a 3-week high.

The China Dec Caixin services PMI rose +0.3 to 53.4, the fastest pace of expansion in 17 months.

Eurozone Nov PPI unexpectedly rose +0.1% y/y, stronger than expectations of -0.1% y/y and the first year-on-year increase in 3-1/3 years.


Key U.S. news today includes: (1) Dec Challenger job cuts (Nov -13.0% y/y), (2) Dec ADP employment (expected +175,000, Nov +216,000), (3) weekly initial unemployment claims (expected -5,000 to 260,000, previous -10,000 to 265,000) and continuing claims (expected -51,000 to 2.051 million, previous +63,000 to 2.102 million), (4) revised Dec Markit services PMI (prelim-Dec -1.2 to 53.4), (5) Dec ISM non-manufacturing index (expected -0.5 to 56.7, Nov +2.4 to 57.2), (6) EIA Weekly Petroleum Status Report.

Russell 1000 earnings reports today include: Monsanto (consensus $ 0.02), Walgreens (1.09), Constellation Brands (1.72), RPM International (0.61).

U.S. IPO’s scheduled to price today: none.

Equity conferences this week include: Citi Global Internet, Media and Telecommunications Conference on Tue-Thu, Goldman Sachs CEOs Unplugged Conference on Thu, J.P. Morgan CES Tech Forum on Thu, JP Morgan Chase & Co., Inc. International Tech Forum on Thu.


Macy’s (M +1.73%) sank almost 10% in pre-market trading after it cut its 2017 EPS forecast to $ 2.95-$ 3.10 from a prior view of $ 3.15-$ 3.40 and said it plans to close 68 stores and cut 6,200 jobs.

Kohl’s (KSS +4.22%) tumbled over 13% in pre-market trading after it said comparable same-store sales fell -2.1% y/y in the fiscal months of November and December combined, and then it cut its 2017 adjusted EPS forecast to $ 3.60-$ 3.65 from a November 10 estimate of $ 3.80-$ 4.00.

Adobe Systems (ADBE +0.64%) was rated a new ‘Outperform’ at BMO Capital Markets with a target price of $ 125.

McKesson (MCK +0.78%) was downgraded to ‘Neutral’ from ‘Overweight’ at JPMorgan Chase with an 18-month target price of $ 169.

Helix Energy Solutions Group (HLX +3.53%) sank 10% in after-hours trading after it proposed an offering of 21 million shares of common stock.

Buffalo Wild Wings (BWLD +1.32%) was downgraded to ‘Neutral’ from ‘Outperform’ at Wedbush with a price target of $ 155.

Mistras Group (MG +2.41%) slumped 10% in after-hours trading after it reported Q2 EPS of 26 cents, below consensus of 31 cents.

Kilroy Realty (KRC +1.48%) slid 3% in after-hours trading after it commenced an offering of 3.5 million shares of common stock.

Hudson Pacific Properties (HPP +1.23%) lost 1% in after-hours trading after holders offered 18.7 million shares of stock.

Alexion Pharmaceuticals (ALXN +3.65%) rallied over 3% in after-hours trading after a board audit committee concluded that it sees no need to restate financial results after investigating a claim made by a former employee about Soliris sales and practices.

Moelis (MC +2.65%) fell 4% in after-hours trading after it offered 5 million shares of Class A common stock.

Heron Therapeutics (HRTX +2.99%) dropped nearly 10% in after-hours trading after it forecast 2017 sales of its Sustol nausea treatment drug at $ 15 million to $ 25 million, well below consensus of $ 50 million.

Synergy Pharmaceuticals (SGYP +6.88%) climbed 3% in after-hours trading after it was rated a new ‘Outperform’ at Oppenheimer with a price target of $ 10.

Loxo Oncology (LOXO +5.28%) fell over 3% in after-hours trading after it proposed a public offering of common stock, although no amount or size was given.


Mar E-mini S&Ps (ESH17 -0.20%) this morning are down -0.75 of a point (-0.03%). Wednesday’s closes: S&P 500 +0.57%, Dow Jones +0.30%, Nasdaq +0.53%. The S&P 500 on Wednesday closed higher on strength in mining stocks after the price of copper rose +2.7% to a 2-week high and on strength in oil companies after the price of crude oil climbed +1.78%. Auto makers also saw strength after U.S. Dec auto sales soared to 18.29 million units, stronger than expectations of 17.70 million and the most in 11-1/3 years.

Mar 10-year T-notes (ZNH17 +0.13%) this morning are yp +3.5 ticks at a 3-week high. Wednesday’s closes: TYH7 unch, FVH7 -0.50. Mar 10-year T-notes on Wednesday closed little changed. T-notes were undercut by weakness in German bunds on increased price pressures after the Eurozone Dec CPI rose more than expected. T-notes recovered their losses after the Dec 13-14 FOMC minutes said that most FOMC policy makers saw a gradual rate hike pace as “appropriate.”

The dollar index (DXY00 -0.43%) this morning is down -0.32 (-0.31%) at a 3-week low. EUR/USD (^EURUSD) is up +0.0007 (+0.07%). USD/JPY (^USDJPY) is down -0.51 (-0.43%) at a 3-week low. Wednesday’s closes: Dollar index -0.680 (-0.66%), EUR/USD +0.0084 (+0.81%), USD/JPY -0.50 (-0.42%). The dollar index on Wednesday closed lower on strength in EUR/USD after Eurozone Dec CPI rose +1.1% y/y, stronger than expectations of +1.0% y/y and the largest increase in 3-1/4 years, which dampened expectations that the ECB will expand stimulus measures. The dollar was also undercut by the comment in the Dec 13-14 FOMC meeting minutes that most FOMC members saw a gradual rate hike pace as “appropriate.”

Feb WTI crude oil prices (CLG17 +0.79%) this morning are up +50 cents (+0.94%) and Feb gasoline (RBG17 -0.13%) is +0.0006 (+0.04%). Wednesday’s closes: Feb crude +0.93 (+1.78%), Feb gasoline +0.0170 (+1.05%). Feb crude oil and gasoline on Wednesday closed higher on a weaker dollar and expectations for Thursday’s weekly EIA crude inventories to fall -2.00 million bbl.

Thursday, Jan 5
US0730 ETDec Challenger job cuts, Nov -13.0% y/y.
0815 ETDec ADP employment change expected +175,000, Nov +216,000.
0830 ETWeekly initial unemployment claims expected -5,000 to 260,000, previous -10,000 to 265,000. Weekly continuing claims expected -51,000 to 2.051 million, previous +63,000 to 2.102 million.
0945 ETRevised Dec Markit services PMI, prelim-Dec -1.2 to 53.4.
1000 ETDec ISM non-manufacturing index expected -0.5 to 56.7, Nov +2.4 to 57.2.
1100 ETEIA Weekly Petroleum Status Report.
1100 ETTreasury announces amount of 3-year T-notes (previous $ 24 billion), 10-year T-notes (previous $ 20 billion) and 30-year T-bonds (previous $ 12 billion) to be auctioned Jan 10-12.
Friday, Jan 6
US0830 ETDec non-farm payrolls expected +180,000, Nov +178,000. Dec private payrolls expected +170,000, Nov +156,000. Dec manufacturing payrolls expected unch, Nov -4,000. Dec unemployment rate expected +0.1 to 4.7%, Nov -0.3 to 4.6%.
0830 ETDec avg hourly earnings expected +0.3% m/m and +2.8% y/y, Nov -0.1% m/m and +2.5% y/y. Dec avg weekly hours all-employees expected unch at 34.4 hours, Nov unch at 34.4 hours.
0830 ETNov trade balance expected -$ 44.7 billion, Oct -$ 42.6 billion.
0830 ETUSDA weekly Export Sales.
1000 ETNov factory orders expected -2.3%, Dec +2.7% and +0.8% ex transportation.
1215 ETChicago Fed President Charles Evans (voter) participates in a NABE and AEA panel discussion titled Responders of First or Last Resort: Central Bank Strategies in an Era of Ultra-Low Interest Rates.
1300 ETRichmond Fed President Jeffrey Lacker (non-voter) speaks at the Maryland Bankers Associations Economic Outlook Forum.
U.S. STOCK CALENDAR 01/05/2017
CompanyTickerTimeEvent DescriptionPeriodEstimate
RPM International IncRPM USBef-mktQ2 2017 Earnings ReleaseQ2 20170.605
Constellation Brands IncSTZ USBef-mktQ3 2017 Earnings ReleaseQ3 20171.718
Walgreens Boots Alliance IncWBA US7:00Q1 2017 Earnings ReleaseQ1 20171.093
L Brands IncLB US7:30December 2016 Sales and Revenue Call2016
Monsanto CoMON US8:00Q1 2017 Earnings ReleaseQ1 20170.017
Walgreens Boots Alliance IncWBA US8:30Q1 2017 Earnings CallQ1 2017
Ionis Pharmaceuticals IncIONS US9:30IONIS-GCGR Rx Phase 2 Study Results Call
Monsanto CoMON US9:30Q1 2017 Earnings CallQ1 2017
RPM International IncRPM US10:00Q2 2017 Earnings CallQ2 2017
Constellation Brands IncSTZ US10:30Q3 2017 Earnings CallQ3 2017
Gap Inc/TheGPS US16:15December 2016 Sales and Revenue Release2016
L Brands IncLB USDecember 2016 Sales and Revenue Release2016
Nikki Bailey

Nikki Bailey

Nikki Bailey reports on US Stocks. She covers also economy and related aspects. She has been tracking US Stock markets for several years now. She is based in New York


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