Live Index – Mon, 21 Jul 2014 Premarket
Sep E-mini S&Ps (ESU14 -0.22%) this morning are down -0.20% as pressure builds for more sanctions against Russia, thus causing today’s -0.3% sell-off in the Euro Stoxx 50 index and a further -1.4% decline in the Russian stock market. Asian stocks closed mixed: Hong Kong -0.29%, China +0.10%, Taiwan +0.43%, Australia +0.15%, Singapore +0.11%, South Korea -0.06%, India +0.29%, and Turkey +0.64%. The dollar index (DXY00 +0.05%) is slightly higher by +0.04% while EUR/USD (^EURUSD) is down -0.01% and USD/JPY (^USDJPY) is down -0.01%. Sep T-note prices (ZNU14 -0.02%) are down -0.5 ticks.
Commodity prices are down -0.3% this morning. Aug WTI crude oil (CLQ14 -0.06%) is down -0.03%, Aug Brent crude is down -0.21%, Aug gasoline (RBQ14 +0.36%) is up +0.37%. Aug gold (GCQ14 +0.62%) is up +0.46% and Sep copper (HGU14 -0.06%) is down -0.17%. Grain prices are sharply lower this morning while softs are mixed.
The Russian Micex stock index is down another -1.4% this morning at a new 2-month low, the 7th decline in the last 8 sessions. The markets are increasingly concerned that the U.S. and perhaps Europe may launch sector-wide sanctions against Russia as evidence builds that Russia provided the missile launcher that shot down the Malaysian Air passenger plane last week. Russian President Putin has so far shown no signs of relenting and curbing Russian-back separatists in Ukraine. EU foreign ministers are scheduled to meet Tuesday in Brussels and will discuss further sanctions.
The Japanese markets were closed today for Marine Day.
The Iran nuclear talks and the interim agreement were extended for another four months late last Friday. The extension of the talks means that Iran will be able to maintain its oil exports of about 1.3 million bpd. Moreover, the U.S. and Israel will continue to avoid any talk of military action against Iran while the talks continue.
Today’s German June PPI report of unchanged m/m and -0.7% y/y was in line with market expectations. The German PPI in May fell -0.2% m/m and -0.8% y/y.
The markets this week will focus on the very heavy Q2 U.S. earnings schedule, the prospects for additional sanctions against Russia after Russian-backed Ukrainian separatists last week shot down the Malaysian Air passenger plane, the Treasury’s sale of $ 15 billion of 10-year TIPS on Thursday, and this week’s fairly busy U.S. economic schedule.
There are 10 of the S&P 500 companies that report earnings today with notable reports including: Texas Instruments (consensus $ 0.59), Genuine Parts (1.26), Halliburton (0.91), Alergan (1.44), and Netflix (1.15). Equity conferences this week include: RSA Asia Pacific & Japan Conference on Mon-Tue, GPO & Institutional Sales Strategy on Tue, and Wells Fargo Small Cell Symposium on Thu.
Sep E-mini S&Ps this morning are down -4.00 points (-0.20%) due to ongoing concern about new sanctions against Russia and a possible boomerang effect for the European economy and banking system. The stock market on Friday closed higher as better-than-expected Q2 company earnings results offset geopolitical concerns in the Ukraine and Middle East. On the negative side, the U.S. Jul University of Michigan consumer confidence unexpectedly fell -1.2 to a 4-month low of 81.3, weaker than expectations of a +0.5 point increase to 83.0. Closes: S&P 500 +0.92%, Dow Jones +1.03%, Nasdaq +1.60%.
- Two S&P 500 companies this morning reported above-consensus earnings: SunTrust Banks (STI +1.66%) ($ 0.81 vs consensus of $ 0.77), and Hasbro (HAS +0.55%) (0.36 vs consensus of 0.356). Two S&P 500 companies also reported below-consensus earnings: BB&T (BBT +1.59%) (0.70 vs the consensus of 0.75), and Halliburton (HAL +0.82%) (0.91 vs consensus of 0.912).
- Steel Dynamics (STLD +1.25%) announced an agreement to acquire Severstal Columbus for $ 1.63 billion. Meanwhile, AK Steel (AKS +4.00%) announced an agreement to acquire Severstal Dearborn for $ 700 million in cash.
- Lululemon (LULU +0.45%) filed a lawsuit against “knockoff artists,” according to The Globe and Mail.
- Third Point reported a 19.3% stake in Biofuel Energy (BIOF +24.54%).
- Gabelli reported a 19.56% stake in Internap (INAP +0.75%).
Sep 10-year T-notes this morning are down -0.5 ticks. Sep 10-year T-note futures prices on Friday posted a 1-1/2 month high on increased safe-haven demand from the crises in Ukraine and the Middle East. T-note prices fell back and closed lower, however, after stocks surged as better-than-expected Q2 company earnings results offset those geopolitical tensions. Closes: TYU4 -2.5, FVU4 -2.50.
The dollar index this morning is slightly higher by +0.03 points (+0.04%), while EUR/USD is down -0.0002 (-0.01%) and USD/JPY is down -0.01 (-0.01%). The dollar index on Friday posted a 1-month high and closed higher. Bullish factors included (1) increased safe-haven demand on heightened geopolitical risks from Ukraine and the Middle East, and (2) weakness in EUR/USD which sank to a 5-1/4 month low on technical selling after EUR/USD fell below the $ 1.35 level. Closes: Dollar index +0.026 (+0.03%), EUR/USD -0.0001 (-0.01%). USD/JPY +0.115 (+0.11%).
Aug WTI crude oil this morning is down -0.03 (-0.03%) while Aug gasoline is up +0.0105 (+0.37%). Aug Brent crude oil this morning is down -0.23 (-0.21%) on the extension of the Iranian nuclear negotiations, although that extension was widely expected in the markets. Aug crude and gasoline prices on Friday closed lower. Aug crude posted a 1-week high on increased geopolitical risks from Ukraine and the Middle East, but prices fell back after the U.S. Jun University of Michigan consumer confidence unexpectedly fell to a 4-month low. Another negative for crude was the rally in the dollar index to a 1-month high. Closes: CLQ4 -0.06 (-0.06%), RBQ4 -0.0214 (-0.74%).
|US||0830 ET||Jun Chicago Fed national activity index, May 0.21.|
|1100 ET||USDA weekly grain export inspections.|
|1600 ET||USDA weekly crop progress.|
|GER||0200 ET||German Jun PPI expected unch m/m and -0.7% y/y, May -0.2% m/m and -0.8% y/y.|
|JPN||n/a||Japanese markets closed for Marine Day holiday.|
|Company Name||Ticker||Time||Event Description||Period||Estimate|
|Hasbro Inc||HAS US||Bef-mkt||Q2 2014 Earnings Release||Q2 2014||0.356|
|BB&T Corp||BBT US||Bef-mkt||Q2 2014 Earnings Release||Q2 2014||0.745|
|SunTrust Banks Inc||STI US||Bef-mkt||Q2 2014 Earnings Release||Q2 2014||0.765|
|Genuine Parts Co||GPC US||Bef-mkt||Q2 2014 Earnings Release||Q2 2014||1.261|
|Halliburton Co||HAL US||Bef-mkt||Q2 2014 Earnings Release||Q2 2014||0.912|
|BB&T Corp||BBT US||8:00||Q2 2014 Earnings Call||Q2 2014|
|SunTrust Banks Inc||STI US||8:00||Q2 2014 Earnings Call||Q2 2014|
|Hasbro Inc||HAS US||8:30||Q2 2014 Earnings Call||Q2 2014|
|Allergan Inc/United States||AGN US||9:00||Q2 2014 Earnings Release||Q2 2014||1.438|
|Halliburton Co||HAL US||9:00||Q2 2014 Earnings Call||Q2 2014|
|Allergan Inc/United States||AGN US||10:30||Q2 2014 Earnings Call||Q2 2014|
|Genuine Parts Co||GPC US||11:00||Q2 2014 Earnings Call||Q2 2014|
|Campbell Soup Co||CPB US||12:30||Investor Day||Y 2014|
|Chipotle Mexican Grill Inc||CMG US||16:00||Q2 2014 Earnings Release||Q2 2014||3.088|
|Netflix Inc||NFLX US||16:05||Q2 2014 Earnings Release||Q2 2014||1.146|
|Texas Instruments Inc||TXN US||16:30||Q2 2014 Earnings Release||Q2 2014||0.588|
|Chipotle Mexican Grill Inc||CMG US||16:30||Q2 2014 Earnings Call||Q2 2014|
|Netflix Inc||NFLX US||17:00||Q2 2014 Earnings Call||Q2 2014|
|Zions Bancorporation||ZION US||Aft-mkt||Q2 2014 Earnings Release||Q2 2014||0.45|
|Texas Instruments Inc||TXN US||17:30||Q2 2014 Earnings Call||Q2 2014|
|Zions Bancorporation||ZION US||17:30||Q2 2014 Earnings Call||Q2 2014|