Tue May 27 2014
Live Index (1448 articles)

Live Index – Tue, 27 May 2014 Premarket

PREMARKET WORLD NEWS

June E-mini S&Ps (ESM14 +0.36%) this morning are up +0.42% at a record high and European stocks are up +0.07% at a 5-1/2 year high on optimism in the economic outlook. European stocks were led higher on increase M&A activity which spurred gains in travel and leisure stocks after Accor SA, Europe’s largest hotel operator, agreed to buy hotels in Germany and the Netherlands for 900 million euros ($ 1.23 billion). Italian bank stocks also rallied after Prime Minister Renzi’s party beat a populist challenger in European Parliament elections. Russia’s Micex Stock Index lost 2% and he ruble weakened after Ukraine’s President-elect Poroshenko pledged to rein in separatists in the east of the country. Asian stocks closed mixed: Japan +0.23%, Hong Kong -0.08%, China -0.42%, Taiwan +0.21%, Australia -0.02%, Singapore -0.27%, South Korea -0.75%, India -0.68%. Commodity prices are mixed. July crude oil (CLN14 -0.26%) is down -0.27%. July gasoline (RBN14 -0.40%) is down -0.59%. Jun gold (GCM14 -0.69%) is down -0.61% at a 2-week low. July copper (HGN14 +0.08%) is up +0.09% at a 2-1/2 month high on speculation the Chinese government will boost stimulus measures to spur economic growth after Chinese Premier Li Keqiang said that the state will adjust policy to help the real economy. Agriculture prices are lower on speculation U.S. farmers made progress in planting their crops. The dollar index (DXY00 -0.12%) is down -0.14%. EUR/USD (^EURUSD) is up +0.01%. USD/JPY (^USDJPY) is unch. June T-note prices (ZNM14 -0.01%) are down -2.5 ticks.

ECB President Draghi said that “we are not resigned to allowing inflation to remain too low for too long,” which suggests he favors additional stimulus measures when the ECB next meets on Jun 5.

ECB Governing Council member Nowotny said that “currently our problem is that of a too-low inflation, which is significantly below the ECB’s target of 2.0%, and risks destabilization of inflation expectations.”

The German Jun GfK consumer confidence, released Monday, was unch 8.5, right on expectations and the highest in 7-1/3 years.

The Japan Apr corporate service price index rose +3.4% y/y, stronger than expectations of +3.2% y/y and the fastest pace of increase in 23-1/3 years.

U.S. STOCK PREVIEW

Today’s U.S. April durable goods orders report is expected to show a decline of -0.7% and -0.1% ex-transportation, falling back after the increases seen in March of +2.5% headline and +2.1% ex-transportation. Today’s March FHFA house price index is expected to show an increase of +0.5% m/m, adding to the +0.6% m/m increase seen in February. Meanwhile, the March CaseShiller composite-20 home price index is expected to show an increase of +0.70% m/m, adding to the +0.76% increase seen in February. Today’s May U.S. consumer confidence index from the Conference Board is expected to show an increase of +0.7 to 83.0, reversing part of the -1.6 point decline to 82.3 seen in April. The Treasury today will auction $ 31 billion of 2-year T-notes.

There are 2 of the Russell 1000 companies that report earnings today: AutoZone (consensus $ 8.45), Workday (-0.15). Equity conferences this week include: Deutsche Bank Global Financial Services Conference on Tue-Wed, Cowen & Company Technology Media & Telecom Conference on Wed, KeyBanc Capital Markets Industrial, Automotive & Transportation Conference on Wed-Thu, Cowen & Company Technology Media & Telecom Conference on Wed-Thu, Sanford C. Bernstein Strategic Decisions Conference on Wed-Fri, Citi Global Consumer Conference on Wed-Thu, and KeyBanc Industrial Conference on Thu.

 

 

 

 

PREMARKET U.S. STOCKS

AutoZone (AZO -0.14%) reported Q3 EPS of $ 8.46, better than consensus of $ 8.45.

Hillshire Brands (HSH +2.18%) surged 22% in pre-market trading after Pilgrims’s Pride offered to buy the company for $ 6.4 billion.

Cisco Systems (CSCO +0.57%) rose 1.5% in pre-market trading after Seutsche Bank AG upgraded the company to ‘Buy’ from ‘Hold.’

Pfizer (PFE -0.57%) rose nearly 1% in pre-market trading after abandoned its attempt to acquire AstraZeneca Plc.

Staples (SPLS -0.43%) fell nearly 2% in pre-market trading after Goldman Saches downgraded the company to a ‘Sell,’

Wolverine Assets reported a 9.99% passive stake in Genius Brands (GNUS +4.39%) .

Adage Capital Partners reported a 5.06% passive stake in Burlington Stores (BURL +1.49%) .

Gabelli reported a 7.45% stake in Zale (ZLC -0.37%) .

MARKET COMMENTS

June E-mini S&Ps (ESM14 +0.36%) this morning are up +8.00 points (+0.42%) at a new record high . The S&P 500 index on Friday rallied to a 1-1/2 week high and closed higher. Bullish factors for stocks included (1) the +6.4% increase in U.S. Apr new home sales to 433,000, slightly more than expectations of 425,000, and (2) an overall bullish bias toward stocks after strong Q1 S&P company earnings results keeps the S&P 500 just below its recent all-time high. Closes: S&P 500 +0.42%, Dow Jones +0.38%, Nasdaq +0.73%.

Jun 10-year T-notes (ZNM14 -0.01%) this morning are down -2.5 ticks. Jun 10-year T-note futures prices on Friday closed higher: TYM4 +5.50, FVM4 +4.50. Supportive factors included (1) carry-over support from a rally in German bunds on concern the European economy may be faltering after the German May IFO business confidence fell to a 5-month low, and (2) an escalation of violence in Ukraine ahead of the May 25 presidential election, which bolstered safe-haven demand for Treasuries.

The dollar index (DXY00 -0.12%) this morning is down -0.109 (-0.14%). EUR/USD (^EURUSD) is up 0.0002 (+0.01%). USD/JPY (^USDJPY) is unch. The dollar index on Friday climbed to a 1-1/2 month high and closed higher: Dollar index +0.139 (+0.17%), EUR/USD -0.00307 (-0.22%), USD/JPY +0.198 (+0.19%). Bullish factors included (1) the stronger-than-expected U.S. Apr new home sales report, which is positive for the U.S. economy, and (2) weakness in EUR/USD which slumped to a 3-1/4 month after the German May IFO business climate fell -0.8 to a 5-month low of 110.4, a bigger decline that expectations of -0.3 to 110.9.

July WTI crude oil (CLN14 -0.26%) this morning is down -28 cents (-0.27%). July gasoline (RBN14 -0.40%) is down -0.0176 (-0.59%)). July crude and gasoline prices on Friday rose to 1-month highs and closed higher. Bullish factors included (1) the rally in stocks which bolstered optimism in the economic outlook, and (2) an escalation of violence in Ukraine ahead of the May 25 presidential election, which fueled short covering in crude oil ahead of the long Memorial Day holiday weekend. Closes: CLN4 +0.61 (+0.59%) RBN4 +0.0182 (+0.61%).

GLOBAL EVENT CALENDAR05/27/2014
US0830 ETApr durable goods orders expected -0.7% and -0.1% ex transportation, Mar +2.5% and +2.1% ex transportation. April non-defense capital goods orders ex-aircraft expected -0.3%, Mar +2.9%.
0900 ETMar FHFA house price index expected +0.5% m/m, Feb +0.6% m/m. Q1 FHFA purchase-only house price index expected +1.3% q/q, Q4 +1.20% q/q.
0900 ETMar S&P CaseShiller composite-20 home price index expected +0.70% m/m and +11.75% y/y, Feb +0.76% m/m and +12.86% y/y. Q1 S&P/CaseShiller home price index, Q4 +11.30% y/y.
1000 ETU.S. May consumer confidence (Conference Board) expected +0.7 to 83.0, Apr -1.6 to 82.3.
1000 ETMay Richmond Fed manufacturing index expected -2 to 5, Apr +14 to 7.
1100 ETUSDA weekly grain export inspections.
1300 ETTreasury auctions $ 31 billion 2-year T-notes.
1600 ETUSDA weekly crop progress.
2010 ETAtlanta Fed President Dennis Lockhart speaks to students at the Graduate School of Banking at LSU.
CHI2130 ETChina Apr industrial profits, Mar +10.1% year-to-date y/y.
U.S. STOCK CALENDAR05/27/2014
Company NameTickerTimeEvent DescriptionPeriodEstimate
AutoZone IncAZO USBef-mktQ3 2014 Earnings ReleaseQ3 20148.452
Merck & Co IncMRK US9:00Annual General MeetingY 2014
AutoZone IncAZO US10:00Q3 2014 Earnings CallQ3 2014
Workday IncWDAY USAft-mktQ1 2015 Earnings ReleaseQ1 2015-0.152
Travelers Cos Inc/TheTRV USAnnual General Meeting
Alliant Energy CorpLNT USInvestor Meeting- Day 1Y 2014
Urban Outfitters IncURBN USAnnual General Meeting
Silgan Holdings IncSLGN USAnnual General Meeting
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