Live Index – Wed, 28 May 2014 Premarket
June E-mini S&Ps (ESM14 +0.14%) this morning are up +0.18% at a new record high, although European stocks are down -0.04% after German unemployment unexpectedly increased for the first time in 6 months. Losses in European stocks were contained after Eurozone May economic confidence rose more than expected to a 2-3/4 year high. Asian stocks closed mostly higher: Japan +0.24%, Hong Kong +0.59%, China +1.02%, Taiwan +0.73%, Australia +0.28%, Singapore -0.07%, South Korea +1.02%, India +0.03%. China’s Shanghai Stock Index rose to a 2-week high, led by strength in technology shares, amid speculation that local Chinese companies will benefit from a government dispute with the U.S. over cyber-spying. Commodity prices are mixed. July crude oil (CLN14 +0.16%) is up +0.17%. July gasoline (RBN14 -0.04%) is down -0.01%. Jun gold (GCM14 +0.09%) is up +0.02%. July copper (HGN14 -0.03%) is up +0.27%. Agriculture and livestock prices are mixed with July corn down -0.53% to a 2-3/4 month low as the pace of U.S. corn planting accelerated last week. The dollar index (DXY00 +0.19%) is up +0.09%. EUR/USD (^EURUSD) is down -0.10%. USD/JPY (^USDJPY) is down -0.05%. June T-note prices (ZNM14 +0.10%) are up +4.5 ticks on carry-over support from a rally in European bonds.
Eurozone May economic confidence rose +0.7 to 102.7, better than expectations of +0.2 to 102.2 and the highest in 2-3/4 years. The May business climate indicator rose +0.09 to 0.37, better than expectations of +0.03 to 0.30.
Eurozone Apr M3 money supply rose +0.8% y/y, weaker than expectations of +1.1% y/y and the slowest pace of increase in 3-3/4 years.
The German May unemployment change unexpectedly rose +24,000, more than expectations of -15,000 and the largest increase in 5 years. The May unemployment rate remained unchanged at 6.7%, right on expectations.
The German Apr import price index unexpectedly fell -0.3% m/m, weaker than expectations of unch m/m and the fourth straight month of falling import prices. On an annual basis, Apr import prices fell -2.4% y/y, a larger decline than expectations of -2.2% y/y.
UK May CBI reported sales unexpectedly fell -14 to 16, weaker than expectations of +5 to 35.
Atlanta Fed President Lockhart said that six months from the end of quantitative easing to the first increase in the main interest rate “is at the short end of a period that could be somewhat longer.”
The Treasury today will auction $ 35 billion of 5-year T-notes. There are 9 of the Russell 1000 companies that report earnings today with notable reports including: Toll Brothers (consensus $ 0.26), DSW (0.48), Copart (0.48), Palo Alto Networks (0.10).
Equity conferences during the remainder of 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.
Michael Kors Holdings (KORS -0.68%) reported Q4 EPS of 78 cents, well ahead of consensus of 68 cents.
Toll Brothers (TOL +0.39%) jumped nearly 7% in pre-market trading after it reported Q2 EPS of 35 cents, better than consensus of 26 cents.
Barclays raised its price estimate for Apple (AAPL +1.87%) to $ 655 from $ 590 due to higher overseas iPhone sales, the potential iWatch and new services.
Twitter (TWTR +0.03%) was upgraded to ‘Buy’ from ‘Neutral’ at Nomura.
Lowe’s (LOW +1.53%) was downgraded to ‘Sell’ from ‘Hold’ at Canaccord.
Live Nation (LYV +1.03%) was downgraded to ‘Neutral’ from ‘Buy’ at Sterne Agee.
Williams-Sonoma (WSM -0.66%) was upgraded to ‘Overweight’ from ‘Neutral’ at Piper Jaffray.
DSW (DSW -1.25%) reported Q1 adjusted EPS of 42 cents, below consensus of 48 cents.
Brown Shoe (BWS +2.32%) reported Q1 EPS of 35 cents, higher than consensus of 31 cents.
Gates Capital reported a 5.1% passive stake in Barnes Group (B +1.79%) .
According to BLoomberg, Xerox (XRX +0.75%) beat out Hewlett-Packard (HPQ -1.84%) for a contract to replace New York’s Medicaid management system valued at an estimated $ 500 million.
OZ Management reported a 5.37% passive stake in BE Aerospace (BEAV +0.34%) .
June E-mini S&Ps (ESM14 +0.14%) this morning are up +3.50 points (+0.18%) at a new all-time high. The S&P 500 index on Tuesday surged to a new record high and closed higher. Bullish factors included (1) the unexpected +0.8% increase in Apr durable goods orders and +0.1% increase in Apr durable goods orders ex-transportation, and (2) the +1.24% m/m increase in the Mar CaseShiller home price index, higher than expectations of +0.70% m/m and the largest monthly increase in 11 months Closes: S&P 500 +0.60%, Dow Jones +0.42%, Nasdaq +2.24%.
Jun 10-year T-notes (ZNM14 +0.10%) this morning are up +4. ticks. Jun 10-year T-note futures prices on Tuesday erased early losses and closed higher: TYM4 +3.50, FVM4 unch. T-notes recovered from losses and closed higher on strong demand for the Treasury’s $ 31 billion 2-year T-note auction that had a 3.52 bid-to-cover ratio, higher than the 12-auction average of 3.30.
The dollar index (DXY00 +0.19%) this morning is up +0.071 (+0.09%). EUR/USD (^EURUSD) is down -0.0014 (-0.10%). USD/JPY (^USDJPY) is down -0.05 (-0.05%). The dollar index on Tuesday pushed up to a 1-1/2 month high but fell back and closed little changed: Dollar index -0.041 (-0.05%), EUR/USD +0.00079 (+0.06%), USD/JPY +0.07 (+0.07%). Bullish factors included (1) signs of strength in the U.S. economy after Apr durable goods orders unexpectedly increased and after the Mar CaseShiller home price index rose more than expected, and (2) weakness in EUR/USD which fell to a 3-1/2 month on expectations that the ECB will boost stimulus measures when it meets next month after ECB President Draghi said that “we are not resigned to allowing inflation to remain too low for too long.”
July WTI crude oil (CLN14 +0.16%) this morning is up +18 cents (+0.17%). July gasoline (RBN14 -0.04%) is down -0.0002 (-0.01%). July crude and gasoline prices on Tuesday closed lower. Bearish factors included (1) the rally in the dollar index to a 1-1/2 month high, which undercut most commodities, and (2) speculation that near-record U.S. crude supplies are sufficient to meet any increase in fuel demand. Closes: CLN4 -0.23 (-0.22%) RBN4 -0.0278 (-0.92%).
|US||0700 ET||Weekly MBA mortgage applications, previous +0.9% with purchase sub-index -2.8% and refi sub-index +3.8%.|
|1300 ET||Treasury auctions $ 35 billion 5-year T-notes.|
|GER||0200 ET||German Apr import price index expected unch m/m and -2.2% y/y, Mar -0.6% m/m and -3.3% y/y.|
|0355 ET||German May unemployment change expected -15,000, Apr -25,000. May unemployment rate expected unch at 6.7%.|
|EUR||0400 ET||Eurozone Apr M3 money supply expected +1.1% y/y and +1.2% 3-mo avg, Mar +1.1% y/y and +1.2% 3-mo avg.|
|0500 ET||Eurozone May economic confidence expected +0.2 to 102.2, Apr 102.0. May business climate indicator expected +0.03 to 0.30, Apr 0.27.|
|0500 ET||Revised Eurozone May consumer confidence, previous -7.1|
|UK||0600 ET||UK May CBI reported sales expected +5 to 35, Apr was 30.|
|JPN||1950 ET||Japan Apr retail sales expected -11.7% m/m and -3.3% y/y, Mar +6.3% m/m and +11.0% y/y.|
|Company Name||Ticker||Time||Event Description||Period||Estimate|
|Toll Brothers Inc||TOL US||Bef-mkt||Q2 2014 Earnings Release||Q2 2014||0.262|
|Golar LNG Ltd||GLNG US||Bef-mkt||Q1 2014 Earnings Release||Q1 2014||-0.08|
|DSW Inc||DSW US||Bef-mkt||Q1 2015 Earnings Release||Q1 2015||0.478|
|Michael Kors Holdings Ltd||KORS US||Bef-mkt||Q4 2014 Earnings Release||Q4 2014||0.683|
|Alkermes PLC||ALKS US||7:00||Annual General Meeting|
|Allergan Inc/United States||AGN US||8:00||Investor Meeting||Y 2014|
|Chico’s FAS Inc||CHS US||8:00||Q1 2015 Earnings Release||Q1 2015||0.283|
|Premier Inc||PINC US||8:00||Investor Day||Y 2014|
|Michael Kors Holdings Ltd||KORS US||8:00||Q4 2014 Earnings Call||Q4 2014|
|Chico’s FAS Inc||CHS US||8:30||Q1 2015 Earnings Call||Q1 2015|
|DSW Inc||DSW US||8:30||Q1 2015 Earnings Call||Q1 2015|
|Chevron Corp||CVX US||9:00||Annual General Meeting||Y 2014|
|Golar LNG Ltd||GLNG US||9:00||Q1 2014 Earnings Call||Q1 2014|
|Copart Inc||CPRT US||Aft-mkt||Q3 2014 Earnings Release||Q3 2014||0.476|
|AMERCO||UHAL US||Aft-mkt||Q4 2014 Earnings Release||Q4 2014||1.685|
|Palo Alto Networks Inc||PANW US||Aft-mkt||Q3 2014 Earnings Release||Q3 2014||0.101|
|CenturyLink Inc||CTL US||Annual General Meeting|
|Southern Co/The||SO US||Annual General Meeting|
|Alliant Energy Corp||LNT US||Investor Meeting- Day 2||Y 2014|
|Wendy’s Co/The||WEN US||Annual General Meeting|
|ProAssurance Corp||PRA US||Annual General Meeting||Y 2014|
|Incyte Corp Ltd||INCY US||Annual General Meeting|
|United Parcel Service Inc||UPS US||Roadshow – New York – Day 1||Y 2014|
|Henry Schein Inc||HSIC US||Annual General Meeting|
|Pioneer Natural Resources Co||PXD US||Annual General Meeting|
|NeuStar Inc||NSR US||Annual General Meeting|
|BioMed Realty Trust Inc||BMR US||Annual General Meeting|
|Seadrill Ltd||SDRL NO||Q1 2014 Earnings Release||Q1 2014||0.678|
|Taylor Morrison Home Corp||TMHC US||Annual General Meeting|