Live Index – Fri, 15 Aug 2014 Premarket
September E-mini S&Ps (ESU14 +0.26%) this morning are up +0.27% at a 2-week high and European stocks are up +0.94% at a 1-week high. BHP Billiton, the world’s biggest miner, rose 2.6% in European trading on a potential increase in M&A activity after the company proposed to spin off some of its minor businesses. Another positive for European stocks was the upward revision to UK Q2 GDP to 3.2% y/y from 3.1% y/y, the fastest pace of expansion year-over-year since Q4 of 2007. Russia’s Micex Stock Index rose and the ruble strengthened after Russian President Putin pledged to put an end to the conflict with Ukraine. Asian stocks closed mostly higher: Japan +0.02%, Hong Kong +0.62%, China +1.06%, Taiwan -0.26%, Australia +0.22%, Singapore +0.61%, South Korea and India closed for holidays. Chinese stocks received a boost after the China Securities Journal reported that China may adopt targeted interest rate cuts for small-town redevelopment, the agriculture sector and small companies. Commodity prices are mixed. Sep crude oil (CLU14 +0.09%) is up +0.07%. Sep gasoline (RBU14 +0.62%) is up +0.61%. Dec gold (GCZ14 -0.21%) is down -0.10%. Sep copper (HGU14 +0.08%) is up +0.18% on signs of smaller global supplies after weekly Shanghai copper inventories fell -4,093 MT to a 1-month low of 96,853 MT. Agriculture and livestock prices are mixed. The dollar index (DXY00 -0.10%) is down -0.04%. EUR/USD (^EURUSD) is up +0.07%. USD/JPY (^USDJPY) is up +0.15%. The Chinese yuan rose to a 5-month high of 6.1455 per dollar on signs the PBOC is allowing further appreciation of the yuan as it reduces dollar purchases. Sep T-note prices (ZNU14 +0.01%) are up +1.5 ticks.
UK Q2 GDP was revised slightly higher to +0.8% q/q and +3.2% y/y from the originally reported +0.8% q/q and +3.1% y/y. The +3.2% y/y increase is the largest annual gain in 6-1/2 years.
The UK Jun index of services rose +0.3% m/m and +1.0% 3-month/3-month, unchanged from May.
Today’s early-Aug U.S. consumer confidence index from the University of Michigan is expected to show a +0.7 point increase to 82.5, reversing the -0.7 point decline to 81.8 seen in July. Today’s July final-demand PPI index is expected to ease to +1.7% y/y from +1.9% in June. Meanwhile, the July core final-demand PPI is expected to ease to +1.6% y/y from +1.8% in June. Today’s July industrial production report is expected to show an increase of +0.3%, adding to the +0.2% increase seen in June. There is one S&P 500 company that reports earnings today: Estee Lauder (consensus $ 0.55). There are no equity conferences today.
Ultra Petroleum (UPL +2.89%) was upgraded to ‘Buy’ from ‘Neutral’ at UBS.
Perrigo (PRGO) was upgraded to ‘Buy’ from ‘Neutral’ at B. Riley with a price target of $ 180.
bebe stores (BEBE +1.42%) were downgraded to ‘Neutral’ from ‘Buy’ at Janney Capital.
DaVita (DVA +0.94%) was downgraded to ‘Hold’ from ‘Buy’ at Deutsche Bank.
Starwood (HOT +0.50%) was upgraded to ‘Overweight’ from ‘Equal Weight’ at Barclays.
SuperValu (SVU +0.52%) says its computer network experienced a criminal intrusion.
Mallinckrodt (MNK +1.82%) will replace Rowan Companies (RDC -0.82%) in S&P 500 as of the close of trading on August 18.
Gannett (GCI +0.06%) climbed 6% in after-hours trading after billionare activist investor Carl Icahn reported a 6.63% stake in the company.
Monster Beverage (MNST +0.70%) surged over 20% in after-hours trading after Coca-Cola reported a 16.7% stake in the company.
Berkshire Hathaway reported a 6.0% passive stake in Dow Chemical (DOW -0.70%) .
Autodesk (ADSK +0.88%) rose 6% in after-hours trading after it reported Q2 EPS of 35 cents, stronger than consensus of 29 cents.
Agilent (A +1.53%) reported Q3 EPS of 78 cents, higher than consensus of 74 cents.
Nordstrom (JWN +0.84%) dropped over 3% in after-hours trading after it reported Q2 EPS of 95 cents, right on consensus, but reported Q2 revenue of $ 3.3 billion, less than consensus of $ 3.39 billion.
Applied Materials (AMAT +0.86%) reported Q3 adjusted EPS of 28 cents, better than consensus of 27 cents.
J.C. Penney (JCP +4.17%) rallied over 3% in after-hours trading after it reported a Q2 adjusted EPS loss of -75 cents, a smaller loss than consensus pf -93 cents.
Sep E-mini S&Ps (ESU14 +0.26%) this morning are up +5.25 points (+0.27%) at a fresh 2-week high. The S&P 500 index on Thursday climbed to a 2-week high and closed higher: S&P 500 +0.43%, Dow Jones +0.37%, Nasdaq +0.50%. Bullish factors included (1) reduced tensions in Ukraine after Russian President Putin said Russia will do everything it can to stop the conflict in eastern Ukraine, and (2) strong Q2 company earnings results as 75% of reporting S&P 500 companies have beaten profit estimates. Limiting gains in stocks was (1) concern about European economic growth after Eurozone Q2 GDP was unchanged q/q, less than expectations of +0.1% q/q, and (2) the +21,000 increase in weekly U.S. unemployment claims, more than expectations of +6,000.
Sep 10-year T-notes (ZNU14 +0.01%) this morning are up +1.5 ticks. Sep 10-year T-note futures prices on Thursday closed higher. Bullish factors included (1) the larger-than-expected increase in U.S. weekly initial unemployment claims, (2) carry-over support from a rally in German bunds after the yield on the 10-year bund fell to a record low 0.998%, and (3) strong demand for the Treasury’s $ 16 billion auction of 30-year T-bonds that had a bid-to-cover ratio of 2.60, better than the 12-auction average of 2.38. Closes: TYU4 +5.00, FVU4 +1.25.
The dollar index (DXY00 -0.10%) this morning is down -0.036 (-0.04%). EUR/USD (^EURUSD) is up +0.0010 (+0.07%) and USD/JPY (^USDJPY) is up +0.15 (+0.15%). The dollar index on Thursday closed slightly lower. Bearish factors included (1) the larger-than-expected increase in weekly U.S. jobless claims, and (2) a rally in stocks, which reduced safe-haven demand for the dollar. Gains in EUR/USD were limited after the Eurozone Q2 GDP report was weaker than expected. Closes: Dollar index -0.008 (-0.01%), EUR/USD unch, USD/JPY +0.033 (+0.03%).
Sep WTI crude oil (CLU14 +0.09%) this morning is up +7 cents a barrel (+0.07%) and Sep gasoline (RBU14 +0.62%) is +0.0162 (+0.61%). Sep crude and gasoline prices on Thursday closed sharply lower as fund selling sent Sep crude to a 6-1/2 month low and Sep gasoline to a 6-month low: CLU4 -2.01 (-0.67%), RBU4 -0.0878 (-3.19%). Bearish factors included (1) the weaker than expected Eurozone Q2 GDP, which raises demand concerns, and (2) signs of increased global supplies after Libya said it will reopen its largest oil export port within days.
|US||0830 ET||Aug Empire manufacturing index expected -5.6 to 20.0, Jul +6.32 to 25.6.|
|0830 ET||Jul PPI final demand expected +0.1% m/m and +1.7% y/y, Jun +0.4% m/m and +1.9% y/y. Jul PPI ex-food & energy expected +0.2% m/m and +1.6% y/y, Jun +0.2% m/m and +1.8% y/y.|
|0915 ET||Jul industrial production expected +0.3%, Jun +0.2%. Jul capacity utilization expected +0.1 to 79.2%, Jun unch at 79.1%.|
|0955 ET||Preliminary U.S. Aug University of Michigan consumer confidence expected +0.7 to 82.5, Jul -0.7 to 81.8.|
|UK||0430 ET||Revised UK Q2 GDP, previous +0.8% q/q and +3.1% y/y.|
|0430 ET||UK Jun index of services expected +0.3% m/m and +1.0% 3-mo/3-mo, May +0.3% m/m and +1.0% 3-mo/3-mo.|
|Company Name||Ticker||Time||Event Description||Period||Estimate|
|Estee Lauder Cos Inc/The||EL US||Bef-mkt||Q4 2014 Earnings Release||Q4 2014||0.551|
|Estee Lauder Cos Inc/The||EL US||9:30||Q4 2014 Earnings Call||Q4 2014|
|Rowan Cos Plc||RDC US||Annual General Meeting|
|Lions Gate Entertainment Corp||LGF US||U.S. Box Office Release of Movie The Expendables 3""|