Live Index – Thu, 26 Jun 2014 Premarket
September E-mini S&Ps (ESU14 -0.05%) this morning are down -0.09% and European stocks are also down -0.09%. EU leaders begin a 2-day summit in Brussels today and may consider further sanctions against Russia if the situation in Ukraine deteriorates. U.S. Secretary of State Kerry, who met with his French counterpart in Paris, said that it was “critical for Russia to show, in the next hours literally, that they are moving to help disarm the separatists.” Asian stocks closed mostly higher on speculation that recent weaker-than-expected U.S. economic data will prompt the Fed to keep interest rates lower for longer: Japan +0.27%, Hong Kong +1.45%, China +0.74%, Taiwan +0.85%, Australia +1.15%, Singapore +0.52%, South Korea +0.72%, India -0.99%. Commodity prices are mixed. Aug crude oil (CLQ14 -0.18%) is down -0.16%. Aug gasoline (RBQ14 -0.11%) is down -0.04%. Aug gold (GCQ14 -0.86%) is down -0.88% after China’s chief auditor discovered 94.4 billion yuan ($ 15.2 billion) of loans backed by falsified gold transactions, adding to signs of possible fraud in commodities financing deals. July copper (HGN14 -0.41%) is down -0.19%. Agriculture and livestock prices are mostly higher. The dollar index (DXY00 +0.03%) is down -0.02%. EUR/USD (^EURUSD) is down -0.12%. USD/JPY (^USDJPY) is down -0.15%. Sep T-note prices (ZNU14 -0.03%) are unchanged.
ECB Governing Council member and Bundesbank President Jens Weidmann said that even though inflation rates will remain “significantly below 2%” until the end of 2016, “the Eurozone is not in a deflationary spiral.” With the introduction of a negative deposit rate and targeted loans, “we have entered uncharted territory and I’m taking a stand for not keeping interest rates low for longer than absolutely necessary.”
Today’s weekly initial unemployment claims report is expected to show a decline of -2,000 to 310,000, adding to last week’s decline of -6,000 to 312,000. Meanwhile, continuing claims are expected to fall -1,000 to 2.560 million, adding to last week’s decline of -54,000 to 2.561 million. Today’s May personal income and spending reports are both expected to show decent increases of +0.4% m/m. Today’s May PCE deflator report is expected to move higher, thus confirming the upward inflation trend that has been seen in the CPI and PPI data. Today’s May PCE deflator is expected to rise to +1.8% y/y from +1.6% in April. Meanwhile, the May PCE core deflator is expected to rise to +1.6% y/y from +1.4% in April. The Treasury today will sell $ 29 billion of 7-year T-notes, concluding this week’s T-note auction package. There are 5 of the Russell 1000 companies that report earnings today: Lennar (consensus $ 0.51), Accenture (1.21), ConAgra (0.55), NIKE (0.75), McCormick (0.62). Equity conferences during the remainder of this week include: Mobile Pharma Biztech 2014 on Wed-Thu.
Estee Lauder (EL +0.64%) was downgraded to ‘Neutral’ from ‘Buy’ at B. Riley.
Accenture PLC (ACN +0.75%) reported Q3 EPS of $ 1.26, higher than consensus of $ 1.21.
McCormick (MKC -0.17%) reported Q2 EPS of 64 cents, better than consensus of 62 cents.
Lennar (LEN +1.14%) reported Q2 EPS of 61 cents, well ahaead of consensus of 51 cents.
C&J Energy (CJES +3.70%) said it will acquire Nabors (NBR +1.87%) completion and production businesses for $ 2.86 billion.
H.B. Fuller (FUL +0.32%) reported Q2 adjusted EPS of 78 cents, right on consensus, but then lowered guidance on fiscal 2014 EPS view to $ 2.80-$ 2.95 from $ 3.00-$ 3.15, well below consensus of $ 3.07.
Reuters reports that General Motors (GM +1.39%) told its North American dealers to halt sales of 2013-2014 Chevrolet Cruze sedans due to airbag issues.
Barclays (BCS -0.82%) is down over 5% in pre-market trading after the New York Attorney General announced a lawsuit against the bank from the operation of Barclays’ dark pool and other aspects of its electronic trading division.
Bed Bath & Beyond (BBBY +0.78%) dropped 6% in after-hours trading after it reported Q1 EPS of 93 cents, weaker than consensus of 94 cents, and then said it expects Q2 EPS between $ 1.08-$ 1.16, below consensus of $ 1.20.
Iron Mountain (IRM -0.33%) surged over 15% in after-hours trading after its Board of Directors approved the company’s conversion to a real estate investment trust – a REIT – for the taxable year beginning January 1.
Disney (DIS +1.48%) was initiated with a ‘Buy’ at Jefferies with a price target of $ 100.
Gannett (GCI +5.07%) was initiated with a ‘Buy’ at Jefferies with a price target of $ 35.
Herman Miller (MLHR +1.31%) fell nearly 4% in after-hours trading after it reported Q4 adjusted EPS of 50 cents, better than consensus of 46 cents, but then said it sees sees Q1 EPS of 44 cents-48 cents, on the lower end of consensus of 48 cents.
Sep E-mini S&Ps (ESU14 -0.05%) this morning are down -1.75 points (-0.09%). The S&P 500 index on Wednesday shook off early losses and closed higher on optimism that the U.S. economy is recovering from a weak Q1. Stocks initially opened lower after (1) May durable goods orders unexpectedly fell -1.0% and -0.1% ex-transportation, weaker than expectations of unch and +0.3% ex-transportation, and (2) U.S. Q1 GDP was revised lower to -2.9% (annualized q/q), weaker than expectations of -1.8% and the steepest pace of contraction in 5 years. Closes: S&P 500 +0.49%, Dow Jones +0.29%, Nasdaq +0.73%.
Sep 10-year T-notes (ZNU14 -0.03%) this morning are unchanged. Sep 10-year T-note futures prices on Wednesday rallied to a 3-week high and closed higher. Bullish factors included (1) the unexpected decline in May durable goods orders, and (2) the larger-than-expected downward revision of Q1 GDP to its steepest pace of contraction in 5 years. Closes: TYU4 +7.50, FVU4 +5.25.
The dollar index (DXY00 +0.03%) this morning is down -0.014 (-0.02%). EUR/USD (^EURUSD) is down -0.0016 (-0.12%). USD/JPY (^USDJPY) is down -0.15 (-0.15%). The dollar index on Wednesday fell to a 1-month low and closed lower on concerns about the U.S. economy after May durable goods orders unexpectedly declined and after U.S. Q1 GDP was revised lower to its largest contraction in 5 years. EUR/USD climbed to a 2-week high after the German July GfK consumer confidence rose more than expected to a 7-1/2 year high. Closes: Dollar Index -0.102 (-0.13%), EUR/USD +0.00227 (+0.17%), USD/JPY -0.107 (-0.10%).
Aug WTI crude oil (CLQ14 -0.18%) this morning is down -17 cents (-0.16%) . Aug gasoline (RBQ14 -0.11%) is down -0.0013 (-0.04%). Aug crude and gasoline prices on Wednesday settled mixed. Bullish factors included (1) the fall in the dollar index to a 1-month low, and (2) news that the U.S. will begin to step up oil exports, which have been largely banned for the past 41 years, after federal officials told two energy companies they can legally export light crude after minimal processing. Bearish factors included (1) the unexpected +1.74 million bbl increase in weekly EIA crude inventories, more than expectations for a -1.7 million bbl draw and (2) the +416,000 bbl increase in crude supplies at Cushing, OK, the delivery point of WTI futures, the second straight increase. Closes: CLQ4 +0.47 (+0.44%) RBQ4 -0.0260 (-0.84%).
|US||0830 ET||Weekly initial unemployment claims expected -2,000 to 310,000, previous -6,000 to 312,000. Weekly continuing claims expected -1,000 to 2.560 million, previous -54,000 to 2.561 million.|
|0830 ET||May personal spending expected +0.4%, Apr -0.1%. May personal income expected +0.4%, Apr +0.3%.|
|0830 ET||May PCE deflator expected +0.3% m/m and +1.8% y/y, Apr +0.2% m/m and +1.6% y/y. May PCE core deflator expected +0.2% m/m and +1.6% y/y, Apr +0.2% m/m and +1.4% y/y.|
|0830 ET||Richmond Fed President Jeffrey Lacker speaks at the Lynchburg Colleges School of Business and Economics on the topic Investing in People as an Economic Growth Strategy.|
|0830 ET||USDA weekly Export Sales.|
|1100 ET||June Kansas City Fed manufacturing index expected unch at 10, May 10.|
|1300 ET||Treasury auctions $ 29 billion 7-year T-notes.|
|1305 ET||St. Louis Fed President James Bullard speaks on Five Comments on Monetary Policy and Income Equality to the Council on Foreign Relations in New York.|
|UK||1905 ET||UK Jun GfK consumer confidence expected +2 to 2, May was 0.|
|JPN||1930 ET||Japan May jobless rate expected unch at 3.6%. May job-to-applicant ratio expected unch at 1.08.|
|1930 ET||Japan May overall household spending expected -2.3% y/y, Apr -4.6% y/y.|
|1930 ET||Japan May national CPI expected +3.7% y/y, Apr +3.4% y/y. May national CPI ex-fresh food expected +3.4% y/y, Apr +3.2% y/y. May national CPI ex food & energy expected +2.2% y/y, Apr +2.3% y/y.|
|1930 ET||Japan Jun Tokyo CPI expected +3.1% y/y, May +3.1% y/y. Jun Tokyo CPI ex-fresh food expected +2.8% y/y, May +2.8% y/y. Jun Tokyo CPI ex food & energy expected +1.9% y/y, May +1.9% y/y.|
|1950 ET||Japan May retail sales expected +2.9% m/m and -2.0% y/y, Apr -13.6% m/m and -4.3% y/y.|
|CHI||2130 ET||China May industrial profits, Apr +9.6% y/y.|
|Company Name||Ticker||Time||Event Description||Period||Estimate|
|Philip Morris International Inc||PM US||3:00||Investor Day – Day 1||Y 2014|
|Lennar Corp||LEN US||Bef-mkt||Q2 2014 Earnings Release||Q2 2014||0.513|
|Accenture PLC||ACN US||Bef-mkt||Q3 2014 Earnings Release||Q3 2014||1.21|
|ConAgra Foods Inc||CAG US||7:30||Q4 2014 Earnings Release||Q4 2014||0.55|
|Big Lots Inc||BIG US||8:00||Investor And Analyst Conference||Y 2014|
|McCormick & Co Inc/MD||MKC US||8:00||Q2 2014 Earnings Call||Q2 2014|
|Accenture PLC||ACN US||8:00||Q3 2014 Earnings Call||Q3 2014|
|Iron Mountain Inc||IRM US||8:30||Business Update Call|
|ConAgra Foods Inc||CAG US||9:30||Q4 2014 Earnings Call||Q4 2014|
|Liberty Global PLC||LBTYA US||10:00||Annual General Meeting||Y 2014|
|Kroger Co/The||KR US||11:00||Annual General Meeting||Y 2014|
|Lennar Corp||LEN US||11:00||Q2 2014 Earnings Call||Q2 2014|
|Nabors Industries Ltd||NBR US||11:00||Business Update Call|
|NIKE Inc||NKE US||16:15||Q4 2014 Earnings Release||Q4 2014||0.751|
|NIKE Inc||NKE US||17:00||Q4 2014 Earnings Call||Q4 2014|
|Questar Corp||STR US||Roadshow – Day 4||Y 2014|
|McCormick & Co Inc/MD||MKC US||Q2 2014 Earnings Release||Q2 2014||0.621|
|Chico’s FAS Inc||CHS US||Annual General Meeting|
|Guess? Inc||GES US||Annual General Meeting|
|United Therapeutics Corp||UTHR US||Annual General Meeting|
|Liberty Global PLC||LBTYA US||Annual General Meeting|
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