Live Index – Fri, 11 Jul 2014 Premarket
September E-mini S&Ps (ESU14 +0.20%) this morning are up +0.20% and the European Euro Stoxx 50 is up +0.69% as concerns subside about Portugal’s second-largest bank. Asian stocks today closed mixed: Japan -0.34%, Hong Kong -0.02%, China CSI 300 index +0.24%, Taiwan -0.72%, Australia +0.41%, Singapore +0.74%, South Korea -0.95%, India -1.37%, Turkey +0.80%. The dollar index (DXY00 -0.03%) is slightly lower by -0.04% with EUR/USD (^EURUSD) down -0.03% and USD/JPY (^USDJPY) down -0.03%. Sep T-note prices (ZNU14 unch) are up 2 ticks. Commodity prices are this morning are down -0.08%. Aug crude oil (CLQ14 -0.49%) is down -0.41%, Aug gold (GCQ14 -0.06%) is down -0.10%, and Sep copper (HGU14 -0.21%) is down -0.29%. Agriculture prices are mixed.
Portugal’s 10-year bond yield today fell by -14 bp to 3.88% from yesterday’s high of 4.02% and the Stoxx 600 banking sub-index today rose by 1.0% as concerns eased about Portugal’s banking system. Banco Espirito Santo, Portugal’s second largest bank, said it has exposure of 1.18 billion euros to companies of Grupo Espirito Santo, a parent of the bank that missed a commercial paper payment this week. The bank said it does not believe any losses will compromise its regulatory capital requirements and that it has a 2.1 billion euro buffer above its regulatory minimum. The bank’s stock resumed trading today and rebounded sharply higher by +12%, erasing much of yesterday’s -17% drop that led to a trading suspension and concerns about Portugal’s banking system.
The South Korean won today fell by -0.5% after the Korean central bank cut its growth forecast for the nation, which led to increase expectations for a rate cut by August.
Germany’s final-June CPI was left unrevised at +0.3% m/m and +1.0% y/y. Germany’s final-June EU-harmonized CPI was also left unrevised at +0.4% and +1.0% y/y. Germany’s June wholesale price index fell by -0.1% m/m and -0.8% y/y.
The UK May construction output report of -1.1% m/m and +3.5% was weaker than market expectations of +0.9% m/m and +5.6% and was down from April’s +1.2% m/m and +4.6% y/y.
Atlanta Fed President Dennis Lockhart, Chicago Fed President Charles Evans, and Philadelphia Fed President Charles Plosser will speak today at the Rocky Mountain Economic Summit being held in Jackson Hole, Wyoming.
There are no U.S. economic reports today. There are two S&P 500 companies that report earnings today: Wells Fargo (consensus $ 1.01), and Fastenal (0.44). There are no equity conferences today.
Sep E-mini S&Ps this morning are up +4.00 points (+0.20%) on the upward rebound in European stocks after Portugal’s second largest bank disclosed its liability to its troubled parent company and said it had sufficient excess capital. The S&P 500 index on Thursday fell to a 1-1/2 week low and closed lower. The main bearish factor was negative carry-over from a plunge in European stocks on signs of financial stress in Portugal due to missed debt payments by a company linked to Banco Espirito Santo, Portugal’s second-largest bank. Stocks recovered from their worst levels on signs of improvement in the U.S. labor market after weekly initial unemployment claims unexpectedly fell -11,000 to 304,000, better than expectations of unchanged at 315,000. Closes: S&P 500 -0.41%, Dow Jones -0.42%, Nasdaq -0.33%.
- Whirlpool (WHR -1.35%) will acquire a majority interest in Indesit for $ 15.06 per share.
- Imperial Tobacco (ITYBY +0.37%) confirms talks with Reynolds (RAI -0.65%), Lorillard (LO +0.13%) over asset acquisition. Reynolds and Lorillard are close to a merger agreement, according to FT.
- Infosys (INFY +1.13%) reporte Q1 EPS of 84 cents, better than the consensus of 76 cents.
- Taco Bell (YUM -0.91%) plans to launch a new high-end menu, according to Business Insider.
- Rent-A-Center (RCII -1.59%) fell over 8% in after-hours trading after it reported preliminary Q2 adjusted EPS between 36 cents and 38 cents, well below consensus of 48 cents.
- Aspen Insurance (AHL -1.02%) said that it sees Q2 diluted operating EPS of $ 1.30-$ 1.35, above consensus of $ 1.22.
- Carlson Capital reported a 12.4% passive stake in TRI Pointe Homes (TPH -3.80%) .
- Gap (GPS -1.09%) reported that June net sales increased 1% compared with last year.
Sep 10-year T-notes this morning are up 2 ticks. Sep 10-year T-note futures prices on Thursday rose to a 5-week high as renewed stress in European financial markets hammered stocks and bolstered the safe-haven demand for Treasuries. T-note prices fell back from their best levels after weekly jobless claims unexpectedly declined. Closes: TYU4 +6.00, FVU4 +5.00.
The dollar index this morning is trading slightly lower by -0.04% with EUR/USD down -0.03% and USD/JPY down -0.03%. The dollar index on Thursday closed higher. Bullish factors included (1) weakness in EUR/USD on renewed European sovereign debt concerns and signs of financial stress in Portugal over missed debt payments by a company linked to Banco Espirito Santo, Portugal’s second-largest bank, and (2) hawkish comments from St. Louis Fed President Bullard who said the Fed will need to raise interest rates sooner than the markets expect as the falling U.S. unemployment rate fuels the risk of rising inflation. Closes: Dollar index +0.134 (+0.17%), EUR/USD -0.00328 (-0.24%). USD/JPY -0.30 (-0.30%).
Aug WTI crude oil this morning is down -0.42 (-0.41%) and Aug gasoline is down -0.0084 (-0.28%). Aug crude and gasoline prices on Thursday recovered from 1-month lows on short-covering and closed higher. Bearish factors included (1) a stronger dollar, and (2) negative carry-over from Wednesday’s EIA report that showed a 447,000 bbl increase in Cushing crude oil supplies and a +0.9% increase in U.S. crude production to a new 27-1/2 yr high. Closes: CLQ4 +0.64 (+0.63%) RBQ4 +0.0199 (+0.68%).
|US||1200 ET||Jul WASDE crop production.|
|1400 ET||Jun monthly budget statement expected +$ 79.5 billion, May -$ 129.97 billion.|
|1445 ET||Atlanta Fed President Dennis Lockhart, Chicago Fed President Charles Evans and Philadelphia Fed President Charles Plosser speak at the Rocky Mountain Economic Summit in Jackson Hole, WY.|
|GER||0200 ET||German Jun wholesale price index, May -0.1% m/m and -0.9% y/y.|
|0200 ET||Revised German Jun CPI (EU harmonized), previous +0.4% m/m and +1.0% y/y.|
|UK||0430 ET||UK May construction output expected +0.9% m/m and +5.6% y/y, Apr +1.2% m/m and +4.6% y/y.|
|Company Name||Ticker||Time||Event Description||Period||Estimate|
|Fastenal Co||FAST US||7:00||Q2 2014 Earnings Release||Q2 2014||0.444|
|Johnson & Johnson||JNJ US||8:00||FDA Adcomm, Safety of Laparoscopic Power Morcellator Devices|
|Wells Fargo & Co||WFC US||8:00||Q2 2014 Earnings Release||Q2 2014||1.009|
|Wells Fargo & Co||WFC US||10:00||Q2 2014 Earnings Call||Q2 2014|
|Fastenal Co||FAST US||10:00||Q2 2014 Earnings Call||Q2 2014|
|Twenty-First Century Fox Inc||FOXA US||U.S. Box Office Release of Movie Planet of the Apes""|
|Manitowoc Co Inc/The||MTW US||ITC Due to Release Findings in Manitowoc vs. Sany Heavy Patent-Infringement|