Live Index – Mon, 05 May 2014 Premarket
June E-mini S&Ps (ESM14 -0.40%) this morning are down -0.40% and European stocks are down -1.36% at a 2-week low as violence in Ukraine spread to the southern regions of the country and after a gauge of Chinese manufacturing contracted for a fourth month. European stocks were also undercut after the European Commission cut its Eurozone 2015 GDP forecast and reduced its Eurozone 2015 and 2015 inflation estimates. On the positive side, European sovereign debt concerns receded after Portugal said it will follow Ireland and Spain in exiting its international bailout program without a precautionary credit line. Asian stocks closed mixed: Japan and South Korea closed for holiday, Hong Kong -1.28%, China -0.10%, Taiwan +0.04%, Australia +0.08%, Singapore -0.34%, India +0.18%. China’s Shanghai Stock Index erased most of its losses and closed little changed after an unexpected downward revision to the China Apr HSBC manufacturing PMI fueled speculation the government will bolster steps to boost economic growth. Commodity prices are mixed. Jun crude oil (CLM14 +0.31%) is up +0.45%. Jun gasoline (RBM14 -0.46%) is down -0.22%. Jun gold (GCM14 +0.62%) is up +0.70% at a 2-1/2 week high on increased safe-haven demand as violence in Ukraine spreads. July copper (HGN14 -0.29%) is down -0.37%. Agriculture prices are mixed, although July wheat is up +1.61% at a 13-month high as escalation of the Ukraine crisis fuels concern that Ukraine wheat exports may be disrupted. The dollar index (DXY00 -0.01%) is down -0.02%. EUR/USD (^EURUSD) is up +0.03%. USD/JPY (^USDJPY) is down 0.19% at a 2-week low after BOJ Governor Kuroda said in a CNBC interview that the economic recovery is on track, which dampened speculation the BOJ would add to monetary stimulus. June T-note prices (ZNM14 +0.09%) are up +6 ticks.
The European Commission maintained its Eurozone 2014 GDP forecast at 1.2%, but lowered its Eurozone 2015 GDP estimate to 1.7% from a Feb prediction of 1.8%. The Commission also cut its Eurozone 2014 inflation forecast to 0.8% from a Feb projection of 1.0% and trimmed its 2015 inflation forecast to 1.2% from a Feb estimate of 1.3%.
The Eurozone May Sentix investor confidence unexpectedly fell -1.3 to 12.8, weaker than expectations of +0.2 to 14.3 and the lowest in 4 months.
Eurozone Mar PPI fell -0.2% m/m and -1.6% y/y, slightly less than expectations of -0.2% m/m and -1.7% y/y.
The China Apr HSBC manufacturing PMI was revised lower to 48.1 from the originally reported 48.3, weaker than expectations of +0.1 to 48.4.
The China Apr non-manufacturing PMI rose +0.3 to 54.8.
With this week’s very light U.S. economic schedule, the markets will mainly focus on Fed Chair Janet Yellen’s testimony on Wednesday before the Joint Economic Committee of Congress. Today’s April ISM non-manufacturing PMI is expected to show a +0.9 increase to 54.0, adding to the +1.5 point increase to 53.1 seen in March.
There are 10 of the S&P 500 companies that report earnings today. Notable reports include Tyson Foods (consensus 0.63), Pfizer (0.55), Tenet Healthcare (-0.15), AIG (1.07), Occidental Petroleum (1.70). Equity conferences this week include: Global Mobil Internet Conference (GMIC) on Mon, ISTAT Asia Conference Schedule on Mon, Sanford C. Bernstein & Co. Multi-Industrial/Electrical Equipment CFO Conference on Mon, Barclays Chemical ROC Stars Conference on Tue, Barclays High Yield Bond & Syndicated Loan Conference on Tue,
Robert W. Baird & Co. Growth Stock Conference on Tue-Wed, Bank of America Merrill Lynch Global Transportation Conference on Wed-Thu,
Wells Fargo Industrial & Construction Conference on Wed-Thu, Jefferies Global Technology, Media & Telecom Conference on Tue-Thu, and
Deutsche Bank Healthcare Conference on Wed-Fri.
Tyson Foods (TSN +0.57%) reported Q2 EPS of 60 cents, weaker than consensus of 63 cents.
Covanta (CVA +0.22%) was upgraded to ‘Outperform’ from ‘Neutral’ at Wedbush.
Host Hotels (HST -0.14%) was downgraded to ‘Neutral’ from ‘Buy’ at SunTrust.
Helmerich & Payne (HP +2.03%) was downgraded at Guggenheim to ‘Sell’ from ‘Neutral.’
Pfizer (PFE -1.28%) reported Q1 EPS of 57 cents, better than consensus of 55 cents.
Occidental Petroleum (OXY -0.58%) reported Q1 EPS od $ 1.75, higher than consensus of $ 1.70.
United Technologies (UTX -0.24%) was awarded a $ 105.2 million government contract to procure long-lead components, parts and materials in support of 34 low rate initial production Lot IX F-135 propulsions systems for the F-35 Lightning II Joint Strike Fighter aircraft.
Starboard Value reported a 6.3% stake in RealD (RLD -0.09%) .
Microsoft co-founder Bill Gates sold 4.6 million shares of Microsoft (MSFT -0.78%) stock on April 30.
Madison Square Garden (MSG -6.55%) was downgraded to ‘Hold’ from ‘Buy’ at Maxim.
JPMorgan Chase (JPM -0.25%) said it sees Q2 market revenue down 20% from prior year and that it has a $ 4.7 billion exposure to Russia as of March 31.
June E-mini S&Ps (ESM14 -0.40%) this morning are down -7.50 points (-0.40%). The S&P 500 index on Friday rallied to a 1-month high early, but zigzagged lower the rest of the day and closed lower: S&P 500 -0.13%, Dow Jones -0.28%, Nasdaq -0.19%. Bullish factors included (1) the +288,000 increase in Apr non-farm payrolls, much stronger than expectations of +218,000 and the largest increase in 2-1/4 years, and (2) the -0.4 point drop in the Apr unemployment rate to 6.3%, a bigger decline than expectations of -0.1 to 6.6% and the lowest in 5-1/2 years. Stocks retreated from their morning highs after tensions in Ukraine escalated when two Ukrainian helicopters were shot down as government forces launched a military offensive to retake militant strongholds in the eastern part of the country.
Jun 10-year T-notes (ZNM14 +0.09%) this morning are up +6 ticks. Jun 10-year T-note futures prices on Friday closed little changed. T-note prices fell back on the stronger-than-expected U.S. Apr payrolls report, but rebounded from their worst levels on increased demand for Treasuries when the Ukraine crisis intensified after Ukraine troops ramped up their offensive to drive pro-Russian separatists out of the eastern part of the country. Closes: TYM4 unch, FVM4 -3.75.
The dollar index (DXY00 -0.01%) this morning is down -0.012 (-0.02%). EUR/USD (^EURUSD) is up +0.0004 (+0.03%). USD/JPY (^USDJPY) is down -0.19 (-0.19%) at a 2-week low. The dollar index on Friday closed little changed. Dollar index -0.011 (-0.01%), EUR/USD +0.00047 (+0.03%), USD/JPY -0.136 (-0.13%). The dollar found support from the stronger-than-expected U.S. Apr payrolls report, but fell back from its best levels as USD/JPY fell on increased safe-haven demand for the yen after the Ukraine crisis escalated when Ukraine troops rebuffed Russian President Putin’s demand for Ukraine forces to pull back from their offensive in eastern Ukraine to oust pro-Russian separatists.
Jun WTI crude oil (CLM14 +0.31%) this morning is up +45 cents (+0.45%). Jun gasoline (RBM14 -0.46%) is down -0.0066 (-0.22%). Jun crude and gasoline prices on Friday closed higher. Bullish factors included (1) strength in the U.S. economy after Apr non-farm payrolls rose by the most in 2-1/4 years and after the U.S. unemployment rate fell to a 5-1/2 year low, and (2) escalation of the Ukraine crisis after two Ukrainian helicopters were shot down by rebels as government forces launched a military offensive to drive out pro-Russian militants. Closes: CLM4 +0.34 (+0.34%). RBM4 +0.0057 (+0.19%).
|US||1000 ET||Apr ISM non-manufacturing PMI expected +0.9 to 54.0, Mar +1.5 to 53.1.|
|1100 ET||USDA weekly grain export inspections.|
|1600 ET||USDA weekly crop progress.|
|EUR||0430 ET||Eurozone May Sentix investor confidence expected +0.2 to 14.3, Apr 14.1.|
|0500 ET||Eurozone Mar PPI expected -0.2% m/m and -1.7% y/y, Feb -0.2% m/m and -1.7% y/y.|
|0500 ET||European Commission publishes its Spring European Economic Forecast.|
|UK||n/a||UK Apr Halifax house prices expected +0.8% m/m and +9.1% 3-months y/y, Mar -1.1% m/m and +8.7% 3-months y/y.|
|JPN||n/a||Japanese markets closed for Childrens Day holiday.|
|Company Name||Ticker||Time||Event Description||Period||Estimate|
|Occidental Petroleum Corp||OXY US||Bef-mkt||Q1 2014 Earnings Release||Q1 2014||1.702|
|Pfizer Inc||PFE US||Bef-mkt||Q1 2014 Earnings Release||Q1 2014||0.551|
|Sysco Corp||SYY US||Bef-mkt||Q3 2014 Earnings Release||Q3 2014||0.395|
|Tyson Foods Inc||TSN US||Bef-mkt||Q2 2014 Earnings Release||Q2 2014||0.625|
|Fastenal Co||FAST US||7:00||April 2014 Sales and Revenue Release||2014|
|Tyson Foods Inc||TSN US||9:00||Q2 2014 Earnings Call||Q2 2014|
|Tenet Healthcare Corp||THC US||Aft-mkt||Q1 2014 Earnings Release||Q1 2014||-0.145|
|American International Group Inc||AIG US||Aft-mkt||Q1 2014 Earnings Release||Q1 2014||1.07|
|Anadarko Petroleum Corp||APC US||Aft-mkt||Q1 2014 Earnings Release||Q1 2014||1.151|
|EOG Resources Inc||EOG US||Aft-mkt||Q1 2014 Earnings Release||Q1 2014||1.188|
|Vornado Realty Trust||VNO US||Aft-mkt||Q1 2014 Earnings Release||Q1 2014||1.272|
|CareFusion Corp||CFN US||Aft-mkt||Q3 2014 Earnings Release||Q3 2014||0.624|
|Motorola Solutions Inc||MSI US||Annual General Meeting|
|Aflac Inc||AFL US||Annual General Meeting||Y 2014|
|Alexion Pharmaceuticals Inc||ALXN US||Annual General Meeting|
|EMC Corp/MA||EMC US||Institutional Investor Program at EMC World|
|Walgreen Co||WAG US||April 2014 Sales and Revenue Release||2014|