Live Index – Wed, 16 Jul 2014 Premarket
September E-mini S&Ps (ESU14 +0.34%) this morning are up +0.29% and European stocks are up +1.39% as Portuguese sovereign bonds gained on confidence the debt crisis is being contained. Banco Espirito Santo rose nearly 7% and credit-default swaps on the senior bonds of Espirto Santo dropped as much as 78 bp after Portugal’s central bank said shareholders in Banco Espirito Santo SA are willing to inject more capital. Another positive for stocks was China’s Q2 GDP that accelerated for the first time in three quarters. Asian stocks closed mixed: Japan -0.10%, Hong Kong +0.27%, China -0.19%, Taiwan -0.88%, Australia +0.14%, Singapore +0.40%, South Korea +0.16%, India +1.27%. China’s Shanghai Stock Index fell back from a 4-week high and closed lower on concern the stronger-than-expected China Q2 GDP may prompt the government to reduce economic stimulus measures. Commodity prices are mixed. Aug crude oil (CLQ14 +0.92%) is up +0.78%. Aug gasoline (RBQ14 +0.50%) is up +0.36%. Aug gold (GCQ14 +0.08%) is up +0.18%. Sep copper (HGU14 -0.06%) is down -0.03%. Agriculture and livestock prices are mixed. The dollar index (DXY00 +0.21%) is up +0.16% at a 4-week high. EUR/USD (^EURUSD) is down -0.24% at a 1-month low. USD/JPY (^USDJPY) is up +0.07%. Sep T-note prices (ZNU14 -0.05%) are up +0.5 of a tick.
China Q2 GDP rose +2.0% q/q and +7.5% y/y, better than expectations of +1.8% q/q and +7.4% y/y and the first time the Chinese economy has accelerated in three quarters.
China Jun industrial production rose +9.2% y/y, better than expectations of +9.0% y/y and the strongest pace in 4 months. Jun retail sales gained +12.4% y/y, less than expectations of +12.5% y/y.
UK Jun jobless claims fell -35,300, more than expectations of -27,000. Jun employment surged +254,000 to 30.6 million, the most since records began in 1971. The Jun claimant count rate fell -0.1 to 3.1%, right on expectations and the lowest in 5-3/4 years.
The UK May ILO unemployment rate fell -0.1 to 6.5% for the 3-months through May, right on expectations and the lowest in 5-1/2 years. May avg weekly earnings rose +0.3% 3-mon avg, below expectations of +0.5% 3-mon avg y/y. May weekly earnings ex-bonus rose +0.7% 3-mon avg y/y, less than expectations of +0.8% 3-mon avg y/y.
Fed Chair Janet Yellen today will appear before the House Financial Services Committee in the second day of her semi-annual testimony to Congress. Today’s June final-demand PPI report is expected to ease slightly to +1.9% y/y from +2.0% in May. Meanwhile, the June final-demand core PPI is expected to fall to +1.7% y/y from +2.0% in May. Today’s June industrial production report is expected to rise by +0.3% m/m, which would be a weaker increase than May’s report of +0.6%. Today’s July NAHB housing market index is expected to show a +1 point increase to 50, adding to the sharp +4 point increase to 49 seen in June.
There are 14 of the S&P 500 companies that repor earnings today with notable reports including: Bank of America (consensus $ 0.29), US Bancorp (0.77), Blackrock (4.46), Schwab (0.22), Northern Trust (0.84), eBay (0.68), Yum Brands (0.73), and Abbott Labs (0.51). There are no equity conferences this week.
St. Jude Medical (STJ -1.91%) reported Q2 adjusted EPS of $ 1.02, better than consensus of $ 1.00.
US Bancorp (USB +0.58%) reported Q2 EPS of 78 cents, higher than consensus of 77 cents.
Textron (TXT -0.49%) reported Q2 EPS of 51 cents, higher than consensus of 46 cents.
Bank of America (BAC +1.54%) reported Q2 EPS of 41 cents, better than consensus of 29 cents.
Blackrock (BLK +0.15%) reporteed Q2 EPS of $ 4.89, stronger than consensus of $ 4.46.
International Game Technology (IGT unch) jumped almost 10% in pre-market trading after Gtech SpA agreed to buy the company for $ 4.7 billion.
Apple (AAPL -1.17%) and IBM (IBM -0.72%) both rose nearly 2% in after-hours trading after both companies announced an exclusive partnership that teams the market-leading strengths of each company to transform enterprise mobility through a new class of business apps that will bring IBM’s big data and analytics capabilities to iPhone and iPad.
AAR (AIR -1.69%) reported Q4 EPS of 43 cents, better than consensus of 41 cents.
Yahoo (YHOO -0.25%) slid 2% in after-hours trading after it reported Q2 EPS of 37 cents, below consensus of 38 cents, and then said it sees Q3 revenue ex-items $ 1.02 billion-$ 1.06 billion, weaker than consensus of $ 1.10 billion.
Hershey (HSY -0.35%) raised wholesale prices approximately 8% across the company’s instant consumable, multi-pack, packaged candy and grocery lines effective today.
CSX (CSX +0.39%) reported Q2 EPS of 53 cents, higher than consensus of 52 cents, although Q2 revenue of $ 3.2 billion was slightly less than consensus of $ 3.25.
Intel (INTC +0.70%) rose 5% in after-hours trading after it reported Q2 EPS of 55 cents, better than consensus of 52 cents, and then said it sees Q3 revenue of $ 14.4 billion, plus or minus $ 500 million, higher than consensus of $ 14.02 billion.
Sep E-mini S&Ps (ESU14 +0.34%) this morning are up +5.75 points (+0.29%). The S&P 500 index on Tuesday closed lower. Bearish factors included (1) the U.S. Jun retail sales report of +0.2% and +0.4% ex-autos, weaker than expectations of +0.6% and +0.5% ex autos, and (2) the Fed’s semi-annual Monetary Policy Report to Congress that fueled long-liquidation in stocks after it stated that “equity valuations of smaller firms as well as social media and biotechnology firms appear to be stretched, with ratios of prices-to-forward-earnings remaining high relative to historical norms.” Closes: S&P 500 -0.19%, Dow Jones +0.03%, Nasdaq -0.38%.
Sep 10-year T-notes (ZNU14 -0.05%) this morning are up +0.5 of a tick. Sep 10-year T-note futures prices Tuesday closed lower after stocks recovered from sharp intra-day losses. T-notes had traded higher most of the day on bullish factors that included (1) weaker-than-expected U.S. Jun retail sales, and (2) dovish comments from Fed Chair Yellen who said monetary stimulus is still required with “significant slack” in labor markets. Closes: TYU4 -2.0, FVU4 -3.50.
The dollar index (DXY00 +0.21%) this morning is trading up +0.129 (+0.16%) at a 4-week high. EUR/USD (^EURUSD) is down -0.0033 (-0.24%) at a 1-month low and USD/JPY (^USDJPY) is up +0.07 (+0.07%). The dollar index on Tuesday climbed to a 3-week high and closed higher. Supportive factors included (1) the sell-off in stocks that boosted safe-haven demand for the dollar, and (2) weakness in EUR/USD which fell to a 3-week low after the German Jul ZEW survey of expectations for economic growth fell more than expected to a 19-month low. Closes: Dollar index +0.202 (+0.25%), EUR/USD -0.00513 (-0.38%). USD/JPY +0.148 (+0.15%).
Aug WTI crude oil (CLQ14 +0.92%) this morning is up +78 cents (+0.78%) and Aug gasoline (RBQ14 +0.50%) is up +0.0104 (+0.36%). Aug crude and gasoline prices on Tuesday fell to 2-month lows on fund selling and closed lower. Bearish factors included (1) the rally in the dollar index to a 3-week high, and (2) ramped up Libyan oil output after a spokesman for Libya’s state-run National Oil Company said the country’s oil production rose to 550,000 bpd from 470,000 bpd. Closes: CLQ4 -0.95 (-0.94%), RBQ4 -0.0265 (-0.91%).
|US||0700 ET||Weekly MBA mortgage applications, previous +1.9% with purchase sub-index +3.7% and refi sub-index +0.4%.|
|0830 ET||Jun PPI final demand expected +0.2% m/m and +1.9% y/y, May -0.2% m/m and +2.0% y/y. Jun PPI ex food & energy expected +0.2% m/m and +1.7% y/y, May -0.1% m/m and +2.0% y/y.|
|0915 ET||Jun industrial production expected +0.3%, May +0.6%. June manufacturing production expected +0.5%, May +0.6%. Jun capacity utilization expected +0.2 to 79.3%, May +0.2 to 79.1%.|
|1000 ET||Fed Chair Janet Yellen appears before the House Financial Services Committee to deliver the Feds Semiannual Monetary Policy Report to Congress.|
|1000 ET||Jul NAHB housing market index expected +1 to 50, Jun +4 to 49.|
|1030 ET||EIA Weekly Petroleum Status Report.|
|1200 ET||Dallas Fed President Richard Fisher speaks on Monetary Policy and the Maginot Line at USCs Anneberg School for Communication and Journalism.|
|1400 ET||Fed Beige Book.|
|CAN||1000 ET||Bank of Canada policy decision expected unchanged with policy rate at 1.00%.|
|UK||0430 ET||UK Jun jobless claims change expected -27,000, May -27,400. Jun claimant count rate expected -0.1 to 3.1%.|
|0430 ET||UK May ILO unemployment rate expected -0.1 to 6.5% 3-months through May, Apr 6.6% 3-months through Apr.|
|0430 ET||UK May avg weekly earnings expected +0.5% 3-months through May, Apr +0.7% 3-months through Apr. May weekly earnings ex-bonus expected +0.8% 3-months through May, Apr +0.9% 3-months through Apr.|
|EUR||0430 ET||ECB Executive Board member Coeure speaks on the International Role of the Euro report publication.|
|0500 ET||Eurozone May trade balance expected +16.5 billion euros (nsa), Apr +15.7 billion euros (nsa).|
|Company Name||Ticker||Time||Event Description||Period||Estimate|
|Abbott Laboratories||ABT US||Bef-mkt||Q2 2014 Earnings Release||Q2 2014||0.509|
|Charles Schwab Corp/The||SCHW US||Bef-mkt||Q2 2014 Earnings Release||Q2 2014||0.224|
|BlackRock Inc||BLK US||Bef-mkt||Q2 2014 Earnings Release||Q2 2014||4.464|
|Northern Trust Corp||NTRS US||Bef-mkt||Q2 2014 Earnings Release||Q2 2014||0.837|
|US Bancorp/MN||USB US||Bef-mkt||Q2 2014 Earnings Release||Q2 2014||0.766|
|Bank of America Corp||BAC US||7:00||Q2 2014 Earnings Release||Q2 2014||0.291|
|St Jude Medical Inc||STJ US||7:30||Q2 2014 Earnings Release||Q2 2014||1.003|
|Textron Inc||TXT US||8:00||Q2 2014 Earnings Call||Q2 2014|
|St Jude Medical Inc||STJ US||8:00||Q2 2014 Earnings Call||Q2 2014|
|Bank of America Corp||BAC US||8:30||Q2 2014 Earnings Call||Q2 2014|
|BlackRock Inc||BLK US||8:30||Q2 2014 Earnings Call||Q2 2014|
|CSX Corp||CSX US||8:30||Q2 2014 Earnings Call||Q2 2014|
|Abbott Laboratories||ABT US||9:00||Q2 2014 Earnings Call||Q2 2014|
|US Bancorp/MN||USB US||9:30||Q2 2014 Earnings Call||Q2 2014|
|PNC Financial Services Group Inc/The||PNC US||10:00||Q2 2014 Earnings Call||Q2 2014|
|eBay Inc||EBAY US||Aft-mkt||Q2 2014 Earnings Release||Q2 2014||0.682|
|Navient Corp||NAVI US||Aft-mkt||Q2 2014 Earnings Release||Q2 2014||0.541|
|Yum! Brands Inc||YUM US||Aft-mkt||Q2 2014 Earnings Release||Q2 2014||0.725|
|SanDisk Corp||SNDK US||Aft-mkt||Q2 2014 Earnings Release||Q2 2014||1.39|
|PNC Financial Services Group Inc/The||PNC US||Q2 2014 Earnings Release||Q2 2014||1.779|
|Textron Inc||TXT US||Q2 2014 Earnings Release||Q2 2014||0.458|
|Kinder Morgan Inc/DE||KMI US||Q2 2014 Earnings Release||Q2 2014||0.295|