Thu Jan 26 2017
Nikki Bailey (1069 articles)

US : Pre Market News – 26 Jan 2017


Mar E-mini S&Ps (ESH17 +0.03%) are up +0.03% at a fresh all-time nearest-futures high and European stocks are up +0.22% at a 13-month high as global equity markets continue this week’s rally on expectations of stronger economic growth and government spending by the Trump administration. Stronger-than-expected UK Q4 GDP was positive for European stocks along with increased M&A activity that has also given a boost to European drug and healthcare companies after Johnson & Johnson acquired Swiss drug maker Actelion Ltd, for $ 30 billion. The rally in global stock prices has reduced demand for gold as a safe-haven with Feb COMEX gold (GCG17 -0.69%) down -0.47% at a 1-1/2 week low, and has also led to selling of government bonds as the 10-year German bund yield climbed to a 1-year high of 0.499% and Mar 10-year T-notes tumbled to a 4-week low. Asian stocks settled higher: Japan +1.81%, Hong Kong +1.41%, China +0.31%, Singapore +0.39%, South Korea +0.87%, Taiwan, Australia and India all closed for holiday. China’s Shanghai Composite and Japan’s Nikkei Stock index both rose to 2-week highs on optimism the Trump administration’s’ pro-growth policies will boost the global economy.

The dollar index (DXY00 +0.19%) is up +0.16%. EUR/USD (^EURUSD) is down -0.18%. USD/JPY (^USDJPY) is up +0.90%.

Mar 10-year T-note prices (ZNH17 -0.10%) are down -3.5 ticks at a 4-week low.

UK Q4 GDP rose +0.6% q/q and +2.2% y/y, stronger than expectations of +0.5% q/q and +2.1% y/y, but unchanged from Q3.

German Feb GfK consumer confidence rose +0.3 to 10.2, stronger than expectations of +0.1 to 10.0 and the highest in 5 months.


Key U.S. news today includes: (1) weekly initial unemployment claims (expected +13,000 to 247,000, previous -15,000 to 234,000) and continuing claims (expected -6,000 to 2.040 million, previous -47,000 to 2.046 million), (2) Dec wholesale inventories (expected +0.1% m/m, Nov +1.0% m/m. Dec retail inventories, Nov +1.0% m/m), (3) Dec Chicago Fed national activity index (expected +0.22 to -0.05, Nov -0.22 to -0.27), (4) Jan Markit services PMI (expected +0.5 to 54.4, Dec -0.7 to 53.9), (5) Dec new home sales (expected -0.8% to 587,000, Nov +5.2% to 592,000), (6) Dec leading indicators (expected +0.5%, Nov unch) (7) Jan Kansas City Fed manufacturing survey (expected -3 to 8, Dec +10 to 11), (8) Treasury auctions $ 28 billion of 7-year T-notes, (9) President Trump is scheduled to meet with House and Senate Republicans at their 3-day policy retreat in Philadelphia, (10) USDA weekly Export Sales.

Notable S&P 500 earnings reports today include: Alphabet (consensus $ 9.62), Microsoft (0.79), Caterpillar (0.66), Intel (0.75), Starbucks (0.52), PayPal (0.42), Wynn Resorts (0.83), PulteGroup (0.59), Baker Hughes (-0.12), Ford (0.30).

U.S. IPO’s scheduled to price today: Visterra (VIST), Jounce Therapeutics (JNCE), Jagged Peak Energy (JAG), JELD-WEN Holding (JELD), REV Group (REVG).

Equity conferences: Hart Energy DUG Marcellus Utica Midstream Conference on Wed-Thu.


Ebay (EBAY +0.80%) rallied 8% in after-hours trading after it reported Q4 adjusted continuing operations EPS of 54 cents, higher than consensus of 53 cents.

Caterpillar (CAT +1.98%) is down 1.5% in pre-market-trading after it reported Q4 revenue of $ 9.57 billion, below consensus of $ 9.81 billion.

McKesson (MCK +1.88%) sank 8% in after-hours trading after it reported Q3 revenue of $ 50.1 billion, below consensus of $ 50.5 billion, citing “weaker branded pharmaceutical pricing than anticipated.”

Teradyne (TER +2.53%) climbed 5% in after-hours trading after it reported Q4 adjusted EPS of 32 cents, well above consensus of 22 cents, and said it sees Q1 adjusted EPS of 33 cents-40 cents, higher than consensus of 30 cents.

Mattel (MAT +1.19%) tumbled 10% in after-hours trading after it reported Q4 adjusted EPS of 52 cents, well below consensus of 71 cents.

Citrix Systems (CTXS +1.45%) dropped 4% in after-hours trading after it said it sees Q1 adjusted EPS of 93 cents-95 cents, below consensus of $ 1.19.

United Rentals (URI +0.57%) jumped 8% in after-hours trading after it reported Q4 adjusted EPS of $ 2.67, higher than consensus of $ 2.30, and then said it will acquire NES Rentals Holdings II for $ 965 million.

Varian Medical Systems (VAR +2.35%) fell 2% in after-hours trading after it reported Q1 adjusted EPS of 75 cents, weaker than consensus of $ 1.05, and said it sees Q2 adjusted EPS of 84 cents-90 cents, below consensus of $ 1.18.

ServiceNow (NOW +2.85%) rallied 5% in after-hours trading after it reported Q4 adjusted EPS of 24 cents, higher than consensus of 23 cents, and then said it sees fiscal 2017 revenue of $ 1.82 billion-$ 1.85 billion, above consensus of $ 1.79 billion.

Las Vegas Sands (LVS +1.23%) fell nearly 5% in after-hours trading after it reported Q4 net revenue of $ 3.08 billion, below consensus of $ 3.12 billion.

Vertex Pharmaceuticals (VRTX +3.59%) rose over 1% in after-hours trading after it reported Q4 adjusted EPS of 35 cents, better than consensus of 30 cents.

Western Digital (WDC +5.28%) gained almost 2% in after-hours trading after it said it sees Q3 adjusted EPS of $ 2.00-$ 2.10, well above consensus of $ 1.68.

F5 Networks (FFIV +1.11%) slid over 4% in after-hours trading after it reported Q1 net revenue of $ 516 million, less than consensus of $ 516.8 million.

Quality Systems (QSII +2.99%) rallied over 7% in after-hours trading after it reported Q3 revenue of $ 127.9 million. above consensus of $ 125.7 million.

Weight Watchers International (WTW +1.09%) jumped 6% and Kraft Heinz (KHC +0.17%) gained almost 1% in after-hours trading after both companies announced a joint venture with Oprah Winfrey called Mealtime Stories that create a new line of food and donate 10% of profits to eradicate hunger.


Mar E-mini S&Ps (ESH17 +0.03%) this morning are up +0.75 (+0.03%) of a point at a fresh all-time nearest-futures high. Wednesday’s closes: S&P 500 +0.80%, Dow Jones +0.78%, Nasdaq +0.99%. The S&P 500 on Wednesday rallied to a fresh record high and settled higher on the +0.5% increase in the U.S. Nov FHFA house price index, slightly stronger than expectations of +0.4% m/m, and on underlying support from the Trump/Republican tax and infrastructure agenda.

Mar 10-year T-notes (ZNH17 -0.10%) this morning are down -3.5 ticks at a 4-week low. Wednesday’s closes: TYH7 -13.00, FVH7 -6.75. Mar 10-year T-notes on Wednesday sold off to a 3-week low and closed lower on carry-over weakness from a plunge in German bund prices to a 1-year low and on the surge in the S&P 500 to a fresh all-time high, which reduced demand for T-notes as a safe-haven. There was also weak demand for the Treasury’s $ 34 billion auction of 5-year T-notes that had a bid-to-cover ratio of 2.38, weaker than the 12-auction average of 2.45 and the lowest in 6 months.

The dollar index (DXY00 +0.19%) this morning is up +0.16 (+0.16%). EUR/USD (^EURUSD) is down -0.0019 (-0.18%). USD/JPY (^USDJPY) is up +1.02 (+0.90%). Wednesday’s closes: Dollar index -0.32 (-0.32%), EUR/USD +0.0017 (+0.16%), USD/JPY -0.51 (-0.45%). The dollar index on Wednesday fell to a 1-1/2 month low and closed lower on strength in EUR/USD after ECB Executive Board member Lautenschlaeger said she was “optimistic” that the ECB can soon talk about exiting its bond-buying program. In addition, GBP/USD jumped to a 6-week high on short-covering as the Brexit negotiating positions at least become a little clearer.

Mar WTI crude oil prices (CLH17 +0.27%) this morning are up +21 cents (+0.40%) and Mar gasoline (RBH17 -0.43%) is -0.0066 (-0.43%). Wednesday’s closes: Mar crude -0.24 (-0.45%), Mar gasoline -0.0494 (-3.08%). Mar crude oil and gasoline on Wednesday closed lower with Mar gasoline at a 1-1/2 month low. Crude oil prices were undercut by the big +6.8 million bbl increase in EIA gasoline stockpiles to a 10-1/2 month high (vs expectations of +1.0 million bbl) and by the +0.2% increase in U.S. crude production in the week ended Jan 20 to 8.961 million bpd, the highest level in 9-1/4 months. Supportive factors included the fall in the dollar index to a 1-1/2 month low and the rally in the S&P 500 to a record high, which bolsters optimism in the economic outlook and energy demand.


Thursday, Jan 26
US0830 ETWeekly initial unemployment claims expected +13,000 to 247,000, previous -15,000 to 234,000. Weekly continuing claims expected -6,000 to 2.040 million, previous -47,000 to 2.046 million.
0830 ETDec wholesale inventories expected +0.1% m/m, Nov +1.0% m/m. Dec retail inventories, Nov +1.0% m/m.
0830 ETDec Chicago Fed national activity index expected +0.22 to -0.05, Nov -0.22 to -0.27.
0830 ETUSDA weekly Export Sales.
0945 ETJan Markit services PMI expected +0.5 to 54.4, Dec -0.7 to 53.9.
1000 ETDec new home sales expected -0.8% to 587,000, Nov +5.2% to 592,000.
1000 ETDec leading indicators expected +0.5%, Nov unch. LEI benchmark revisions.
1100 ETJan Kansas City Fed manufacturing survey expected -3 to 8, Dec +10 to 11.
1300 ETTreasury auctions $ 28 billion of 7-year T-notes.
n/aPresident Trump is scheduled to meet with House and Senate Republicans at their 3-day policy retreat in Philadelphia.
Friday, Jan 27
US0830 ETQ4 GDP expected +2.2% (q/q annualized), Q3 +3.5% (q/q annualized). Q4 personal consumption expected +2.5%, Q3 +3.0%. Q4 GDP price index expected +2.1%, Q3 +1.4%. Q4 core PCE deflator expected +1.4% q/q, Q3 +1.7% q/q.
0830 ETDec durable goods orders expected +2.6% and +0.5% ex-transportation, Nov -4.5% and +0.6% ex-transportation. Dec capital goods orders nondefense ex-aircraft expected +0.2%, Nov +0.9%.
1000 ETFinal-Jan University of Michigan U.S. consumer sentiment expected unch at 98.1, prelim-Jan -0.1 to 98.1.
1500 ETUSDA Dec Cattle on Feed.
U.S. STOCK CALENDAR 01/26/2017
CompanyTickerTimeEvent DescriptionPeriodEstimate
Helmerich & Payne IncHP USBef-mktQ1 2017 Earnings ReleaseQ1 2017-0.357
Northrop Grumman CorpNOC USBef-mktQ4 2016 Earnings ReleaseQ4 20162.489
PulteGroup IncPHM USBef-mktQ4 2016 Earnings ReleaseQ4 20160.588
Praxair IncPX USBef-mktQ4 2016 Earnings ReleaseQ4 20161.407
Stanley Black & Decker IncSWK USBef-mktQ4 2016 Earnings ReleaseQ4 20161.678
Royal Caribbean Cruises LtdRCL USBef-mktQ4 2016 Earnings ReleaseQ4 20161.212
L3 Technologies IncLLL USBef-mktQ4 2016 Earnings ReleaseQ4 20162.112
Alliance Data Systems CorpADS USBef-mktQ4 2016 Earnings ReleaseQ4 20164.648
Fiat Chrysler Automobiles NVFCAU USBef-mktQ4 2016 Earnings ReleaseQ4 20160.438
Whirlpool CorpWHR US6:00Q4 2016 Earnings ReleaseQ4 20164.439
American Electric Power Co IncAEP US6:30Q4 2016 Earnings ReleaseQ4 20160.548
Baker Hughes IncBHI US6:30Q4 2016 Earnings ReleaseQ4 2016-0.118
Caterpillar IncCAT US6:30Q4 2016 Earnings ReleaseQ4 20160.66
Southwest Airlines CoLUV US6:30Q4 2016 Earnings ReleaseQ4 20160.693
Dow Chemical Co/TheDOW US6:45Q4 2016 Earnings ReleaseQ4 20160.877
Quest Diagnostics IncDGX US6:45Q4 2016 Earnings ReleaseQ4 20161.273
Invesco LtdIVZ US6:55Q4 2016 Earnings ReleaseQ4 20160.579
Bristol-Myers Squibb CoBMY US7:00Q4 2016 Earnings ReleaseQ4 20160.666
Dover CorpDOV US7:00Q4 2016 Earnings ReleaseQ4 20160.918
Ford Motor CoF US7:00Q4 2016 Earnings ReleaseQ4 20160.304
Raytheon CoRTN US7:00Q4 2016 Earnings ReleaseQ4 20161.853
Sherwin-Williams Co/TheSHW US7:00Q4 2016 Earnings ReleaseQ4 20162.2
Comcast CorpCMCSA US7:00Q4 2016 Earnings ReleaseQ4 20160.868
Biogen IncBIIB US7:00Q4 2016 Earnings ReleaseQ4 20164.962
Celgene CorpCELG US7:30Q4 2016 Earnings ReleaseQ4 20161.607
T Rowe Price Group IncTROW US7:30Q4 2016 Earnings ReleaseQ4 20161.411
Mead Johnson Nutrition CoMJN US7:30Q4 2016 Earnings ReleaseQ4 20160.818
Intel CorpINTC US16:00Q4 2016 Earnings ReleaseQ4 20160.748
Starbucks CorpSBUX US16:04Q1 2017 Earnings ReleaseQ1 20170.52
PayPal Holdings IncPYPL US16:05Q4 2016 Earnings ReleaseQ4 20160.419
Microsoft CorpMSFT US16:09Q2 2017 Earnings ReleaseQ2 20170.786
Robert Half International IncRHI US16:15Q4 2016 Earnings ReleaseQ4 20160.641
KLA-Tencor CorpKLAC US16:15Q2 2017 Earnings ReleaseQ2 20171.404
Juniper Networks IncJNPR US16:15Q4 2016 Earnings ReleaseQ4 20160.631
Eastman Chemical CoEMN US16:30Q4 2016 Earnings ReleaseQ4 20161.492
CR Bard IncBCR USAft-mktQ4 2016 Earnings ReleaseQ4 20162.739
Arthur J Gallagher & CoAJG USAft-mktQ4 2016 Earnings ReleaseQ4 20160.659
E*TRADE Financial CorpETFC USAft-mktQ4 2016 Earnings ReleaseQ4 20160.425
Wynn Resorts LtdWYNN USAft-mktQ4 2016 Earnings ReleaseQ4 20160.832
Alphabet IncGOOGL USAft-mktQ4 2016 Earnings ReleaseQ4 20169.623
Harman International Industries IncHAR USQ2 2017 Earnings ReleaseQ2 20171.85
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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