Mon Jun 02 2014
Live Index (1448 articles)

Live Index – Mon, 02 Jun 2014 Premarket

PREMARKET WORLD NEWS

June E-mini S&Ps (ESM14 +0.03%) this morning are up +0.05% at a new all-time high and European stocks are up +0.25% at a 5-1/2 year high after manufacturing activity in China last month expanded at the fastest pace in 5 months. Asian stocks closed higher: Japan +2.07%, Hong Kong, China and Taiwan closed for holidays, Australia +0.47%, Singapore +0.19%, South Korea +0.56%, India +1.93%. Japan’s Nikkei Stock Index climbed to a 4-week high after Japanese data showed Q1 capital spending rose by the most in nearly 2 years. Commodity prices are mixed. July crude oil (CLN14 +0.16%) is up +0.23%. July gasoline (RBN14 -0.04%) is up +0.12%. Aug gold(GCQ14 +0.06%) is up +0.06% as it rebounds from a 4-month low. July copper (HGN14 +1.41%) is up +1.47%. Agriculture prices are lower. The dollar index (DXY00 +0.17%) is up +0.18%. EUR/USD (^EURUSD) is down -0.19% after a gauge of Eurozone manufacturing activity was revised lower to the slowest pace in 6 months. USD/JPY (^USDJPY) is up +0.27%. Sep T-note prices (ZNU14 -0.25%) are down -9.5 ticks.

Chicago Fed President Evans said in a speech in Istanbul that the Fed will end asset purchases this year and may wait until inflation is much closer to its 2% objective before they consider raising interest rates. He added that a “highly accommodative” monetary policy is appropriate “well into 2015 and could even be” in 2016.

China May manufacturing PMI rose +0.4 to 50.8, better than expectations of +0.3 to 50.7 and the fastest pace of expansion in 5 months.

The Eurozone May Markit manufacturing PMI was revised lower to 52.2 from the originally reported 52.5, the slowest pace of expansion in 6 months.

The German May Markit/BME manufacturing PMI was revised lower to 52.3 from the originally reported 52.9, the slowest pace of expansion in 7 months.

UK Apr net consumer credit rose +0.7 billion pounds, less than expectations of +0.8 billion pounds and Mar was revised lower to show an increase of +1.0 billion pounds from the originally reported +1.1 billion pounds.

UK Apr mortgage approvals rose 62,900, less than expectations of 64,500 and the fewest in 9 months.

Japan Q1 capital spending ex-software rose +8.3% y/y, better than expectations of +5.9% y/y and the most in 7 years. Q1 capital spending climbed +7.4% y/y, better than expectations of +5.8% y/y and the most sine Q2 of 2012.

U.S. STOCK PREVIEW

The market is expecting today’s May ISM manufacturing index to show a +0.6 point increase to 55.5, which would be the fourth consecutive monthly increase. There are none of the Russell 1000 companies that report earnings today.

Equity conferences this week include: Apple Worldwide Developers Conference (WWDC) on Mon, Goldman Sachs Lodging, Gaming, Restaurant & Leisure Conference on Mon-Tue, American Society of Clinical Oncology (ASCO) Meeting on Mon-Tue, Eurelectric Conference 2014 on Mon-Tue, Jefferies Global Health Care Conference on Mon-Thu, National Association of Real Estate Investment Trusts REITWeek Investor Forum on Tue-Thu, Bank of America Merrill Lynch Global Telecom & Media Conference on Tue, Barclays Power & Utility Credit Conference on Tue, Wells Fargo Insurance Forum on Tue, Stifel Consumer Conference on Tue, Barclays Power & Utility Credit Conference on Tue, RBC Global Energy and Power Conference on Tue, Bank of America Merrill Lynch Global Technology Conference on Tue-Wed, Stephens Spring Conference on Tue-Wed, Bank of America Merrill Lynch Energy and Power Leveraged Finance Conference on Tue-Wed, Goldman Sachs Dotcommerce Conference on Wed, KBW Asset Management Conference on Wed, Sandler O’Neill Global Exchange & Brokerage Conference on Wed,
Deutsche Bank Global Industrials and Basic Materials Conference on Wed-Thu, Credit Suisse Engineering & Construction Conference on Thu, UBS Aerospace & Defense Conference on Thu.

 

 

 

 

 

 

PREMARKET U.S. STOCKS

Oppenheimer increased its price target on Netflix (NFLX +0.63%) to $ 500 from $ 435 and keeps an ‘Outperform’ rating on the stock.

Conn’s (CONN -0.26%) reported Q1 adjusted EPS of 80 cents, better than consensus of 73 cents.

Ventas (VTR +0.54%) will acquire American Realty Capital (HCT +1.63%) for $ 2.6 billion in stock and cash.

Alcoa (AA +0.22%) was upgraded to ‘Neutral’ from ‘Underperform’ at BofA/Merrill.

Microchip Technology (MCHP +0.61%) and Xilinx (XLNX +0.21%) were both downgraded to ‘Neutral’ from ‘Buy’ at Goldman Sachs.

The LA Times reports that JPMorgan Chase (JPM -0.27%) is being sued by the city of Los Angeles over predatory home loans.

STMicroelectronics (STM +0.20%) was downgraded to ‘Sell’ from ‘Neutral’ at Citigroup.

Volvo (VOLVY -0.82%) was downgraded to ‘Sell’ from ‘Neutral’ at Goldman Sachs.

Marathon Oil (MRO unch) will sell its Norway business for $ 2.7 billion to Det norske oljeselskap ASA.

MSDC Management reported a 10.6% passive stake in Liquid Holdings (LIQD -8.64%) .

Armistice Capital reported a 5.16% passive stake in Digital Cinema (DCIN +1.41%) .

MARKET COMMENTS

June E-mini S&Ps (ESM14 +0.03%) this morning are up +1.00 point (+0.05%0 at a new all-time high. The S&P 500 index on Friday posted a new record high and closed higher. Bullish factors include (1) the unexpected +2.5 point increase in the May Chicago PMI to 65.5, better than expectations of -2.0 to 61.0 and the fastest pace of expansion in 7 months, and (2) comments from Philadelphia Fed President Plosser who said he expects the economy to grow at a +3.0% pace for the rest of 2014 and that “there’s a possibility” that unemployment “may be below 6% by the end of the year if things keep going the way they have.” Stock prices were undercut by the -0.1% drop in Apr personal spending, weaker than expectations of +0.2% and the first decline in a year. Closes: S&P 500 +0.18%, Dow Jones +0.11%, Nasdaq +0.03%.

Sep 10-year T-notes (ZNU14 -0.25%) this morning are down -9.5 ticks. Sep 10-year T-note futures prices Friday closed lower. Bearish factors included (1) reduced safe-haven demand for Treasuries after the S&P 500 rallied to another record high, and (2) the unexpected rise in the May Chicago PMI to a 7-month high. Bullish factors included the weaker-than-expected U.S. Apr personal spending and consumer confidence reports. Closes: TYU4 -3.50, FVU4 -1.75.

The dollar index (DXY00 +0.17%) this morning is up +0.141 (+0.18%). EUR/USD (^EURUSD) is down -0.0026 (-0.19%). USD/JPY (^USDJPY) is up +0.27 (+0.27%). The dollar index on Friday closed lower on reduced safe-haven demand after the S&P 5000 posted yet another record high. Dollar losses were limited after the May Chicago PMI unexpected expanded at the fastest pace in 7 months, a sign of economic strength. Closes: Dollar Index -0.125 (-0.16%), EUR/USD +0.00291 (+0.21%), USD/JPY -0.056 (-0.06%).

July WTI crude oil (CLN14 +0.16%) this morning is up +24 cents (+0.23%). July gasoline (RBN14 -0.04%) is up +0.0037 (+0.12%). July crude and gasoline prices on Friday closed lower with July crude at a 1-week low. Bearish factors included (1) concern about the sustainability of the economic recovery and energy demand after U.S. Apr personal spending unexpectedly fell for the first time in a year, and (2) reduced geopolitical risks after a Pentagon spokesman said that Russia has withdrawn a majority of its military forces from the Ukrainian border. Closes: CLN4 -0.87 (-0.84%) RBN4 -0.0239 (-0.80%).

GLOBAL EVENT CALENDAR06/02/2014
US0300 ETChicago Fed President Charles Evans speaks on the economy and monetary policy at the Istanbul School of
Central Bankings Macro Workshop 2014.
0945 ETRevised U.S. May Markit manufacturing PMI, previous 56.2.
1000 ETMay ISM manufacturing index expected +0.6 to 55.5, Apr +1.2 to 54.9. May ISM prices paid expected +0.4 to 56.9, Apr 56.5. May ISM new orders, Apr unch at 55.1. May ISM employment, Apr +3.6 to 54.7.
1000 ETApr construction spending expected +0.5%, Mar +0.2% m/m.
1100 ETUSDA weekly grain export inspections.
1600 ETUSDA weekly crop progress.
JPN0100 ETJapan May vehicle sales, Apr -11.4% y/y.
2130 ETJapan Apr labor cash earnings, Mar +0.7% y/y.
GER0355 ETRevised German May Markit/BME manufacturing PMI, previous 52.9.
0800 ETGerman May CPI (EU harmonized) expected +0.1% m/m and +1.0% y/y, Apr -0.3% m/m and +1.1% y/y.
EUR0400 ETRevised Eurozone May Markit manufacturing PMI, previous 52.5.
UK0430 ETUK Apr net consumer credit expected +0.8 billion pounds, Mar +1.1 billion pounds.
0430 ETUK Apr mortgage approvals expected 64,500, Mar 67,100.
0430 ETUK Apr M4 money supply, Mar -2.3% m/m and -0.3% y/y.
0430 ETUK May Markit manufacturing PMI expected -0.3 to 57.0, Apr 57.3.
CHI2100 ETChina May non-manufacturing PMI, Apr +0.3 to 54.8.
U.S. STOCK CALENDAR06/02/2014
Company NameTickerTimeEvent DescriptionPeriodEstimate
ARIAD Pharmaceuticals IncARIA US8:30Investor and Analyst MeetingY 2014
UnitedHealth Group IncUNH USAnnual General Meeting
Staples IncSPLS USAnnual General Meeting
Assurant IncAIZ USAnnual General MeetingY 2014
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