Live Index – Mon, 03 Nov 2014 Premarket
December E-mini S&Ps (ESZ14 -0.19%) this morning are down -0.10% and European stocks are down -0.65% on concern over a slowdown in the Chinese economy after the China Oct PMI unexpectedly fell to the slowest pace in 6 months and the China Oct non-manufacturing PMI dropped to the slowest pace of growth in 9 months. Asian stocks closed mostly lower: Japan closed for holiday, Hong Kong -0.34%, China +0.17%, Taiwan +0.34%, Australia -0.36%, Singapore +0.51%, South Korea -0.70%, India -0.02%. Despite economic data that showed weakness in China’s economy, the Shanghai Stock Index climbed to a 1-1/2 year high after asset purchases by China’s Guangzhou Shipyard and Sichuan Changhong Electric signal that state-owned enterprise reform is moving forward. Guangzhou Shipyard rallied 10% after the company said it will buy CSSC Huangpu Wenchong for 4.53 billion yuan ($ 740.3 million) from its competitor China State Shipbuilding, while Sichuan Changhong Electric also rose 10% after the company said it plans to raise as much as 4 billion yuan from a private placement to fund its acquisition of a defense company. Commodity prices are mixed. Dec crude oil (CLZ14 +0.41%) is up +0.27%. Dec gasoline (RBZ14 -0.01%) is up +0.04%. Dec gold (GCZ14 +0.01%) is up +0.01%. Dec copper (HGZ14 +0.44%) is up +0.56%. Agriculture prices are lower. The dollar index (DXY00 +0.30%) is up +0.32% at a 4-1/3 year high. EUR/USD (^EURUSD) is down -0.23% at a 2-year low after the Eurozone Oct manufacturing PMI was revised lower, which adds to evidence of a slowdown in the European economy that may prod the ECB into additional stimulus measures when it meets on Thursday. USD/JPY (^USDJPY) is up +1.20% at a 6-3/4 year high on carry-over strength from Friday when the BOJ unexpectedly stimulus. Dec T-note prices (ZNZ14 +0.05%) are +1.5 up ticks on carry-over support from a rally in German bunds as the 10-year bund yield fell to a 2-week low.
The China Oct manufacturing PMI unexpectedly fell -0.3 to 50.8, less than expectations of +0.1 to 51.2 and the slowest pace of expansion in 6 months. The Oct non-manufacturing PMI fell -0.2 to 53.8, the slowest pace of expansion in 9 months.
The Eurozone Oct Markit manufacturing PMI was revised lower to 50.6 from the originally reported 50.7.
The German Markit/BME manufacturing PMI was revised lower to 51.4 from the originally reported 51.8.
The UK Oct Markit manufacturing PMI unexpectedly rose _1.7 to 53.2, stronger than expectations of -0.2 to 51.4.
Today’s Oct ISM manufacturing index is expected to show a -0.4 point decline to 56.2, adding to the -2.4 point decline to 56.6 seen in September. Today’s Oct total vehicle sales report is expected to edge higher to 16.40 million units from 16.34 million units in September.
There are 8 of the S&P 500 companies that report earnings today: Marathon Oil (consensus $ 0.59), Sysco (0.51), Affiliated Managers Group (2.71), Lowes (0.68), Tenet Healthcare (0.09), AIG (1.09), Frontier Communications (0.04), Vornado Realty Trust (1.22). Equity conferences this week include: Latin Markets Hedge Fund Americas Forum on Tue-Wed, Gabelli & Company Automotive Aftermarket Symposium on Tue, Raymond James Global Airline Transportation Conference on Thu, BancAnalysts Association of Boston Conference on Thu-Fri.
Loews (L +1.16%) reported Q3 EPS of 56 cents, well below consensus of 68 cents.
Home Depot (HD unch) was downgraded to ‘Market Perform’ from ‘Outperform’ at Raymond James.
Newmont Mining (NEM -7.72%) was downgraded to ‘Hold’ from ‘Buy’ at BB&T.
Barrick Gold (ABX -3.42%) was downgraded to ‘Hold’ from ‘Buy’ at Deutsche Bank.
TD Ameritrade (AMTD +1.90%) and BlackRock (BLK +2.36%) were both upgraded to ‘Buy’ from ‘Neutral’ at Citigroup.
Facebook (FB +1.19%) was initiated with an ‘Overweight’ at Morgan Stanley with a price target of $ 90.
LabCorp (LH +1.77%) will acquire Covance (CVD +0.72%) for approximately $ 5.6 billion.
Royal Gold (RGLD -4.18%) was upgraded to ‘Buy’ from ‘Neutral’ at Goldman Sachs.
American Tower (AMT -1.42%) was downgraded to ‘Neutral’ from ‘Buy’ at Goldman.
Sohu.com (SOHU +6.09%) reported a Q3 EPS loss of -61 cents, a much smaller loss than consensus of -$ 1.14.
Crown Castle (CCI -6.15%) was upgraded to ‘Buy’ from ‘Neutral’ at Goldman Sachs.
BAE Systems (BAESY +1.52%) was awarded $ 141.8 million government contract modification to provide the U.S. Army with 18 Self-Propelled Howitzers and 18 Carrier Ammunition Tracked vehicles.
Abingworth reported a 13.5% stake in Proteon Therapeutics (PRTO unch) and RA Capital reported an 8.3% passive stale in Proteon Therapeutics.
Dec E-mini S&Ps (ESZ14 -0.19%) this morning are down -2.00 points (-0.10%). The S&P 500 index on Friday jumped to a 6-week high and closed higher: S&P 500 +1.17%, Dow Jones +1.13%, Nasdaq +1.40%. Bullish factors included (1) carry-over support from a rally in global stocks after the BOJ unexpectedly boosted its stimulus measures, (2) the unexpected +5.7 point rise in the Chicago Oct PMI to 66.2, stronger than expectations of -0.5 to 60.0 and the fastest pace of expansion in a year, and (3) the unexpected upward revision to the Oct University of Michigan consumer confidence to a 7-1/4 year high of 86.9.
Dec 10-year T-notes (ZNZ14 +0.05%) this morning are up +1.5 ticks. Dec 10-year T-note futures prices on Friday closed lower: TYZ4 -8.50, FVZ4 -5.25. Bearish factors included (1) reduced safe-haven demand for T-notes after stocks rallied sharply, and (2) stronger-than-expected U.S. economic data as the Chicago Oct PMI unexpectedly rose +5.7 to 66.2, the fastest pace of expansion in a year and the Oct University of Michigan consumer confidence that was unexpectedly revised upward to its highest in 7-1/4 years.
The dollar index (DXY00 +0.30%) this morning is up +0.279 (+0.32%) at a new 4-1/3 year high. EUR/USD (^EURUSD) is down -0.0029 (-0.23%) at a fresh 2-year low. USD/JPY (^USDJPY) is up 1.35 (+1.20%) at a 6-3/4 year high. The dollar index on Friday rallied to a 4-1/3 year high and closed higher. Closes: Dollar index +0.770 (+0.89%), EUR/USD -0.00897 (-0.71%), USD/JPY +3.099 (+2.84%). Bullish factors included (1) a surge in USD/JPY to a 6-3/4 year high as the yen plunged after the BOJ unexpectedly expanded stimulus, and (2) weakness in EUR/USD which slumped to a fresh 2-year low on speculation the ECB will boost its stimulus measures after Eurozone Oct core CPI eased to a record low of +0.7% y/y.
Dec WTI crude oil (CLZ14 +0.41%) this morning is up +22 cents (+0.27%) and Dec gasoline (RBZ14 -0.01%) is up +0.0008 (+0.04%). Dec crude and Dec gasoline on Friday closed lower. Closes: CLZ4 -0.58 (-0.71%), RBZ4 -0.0123 (-0.57%). Bearish factors included (1) the surge in the dollar index to a 4-1/3 year high, and (2) comments from Iraqi Oil Minister Adel Abdul Mahdi who said “there is a price war within OPEC” as members seek to preserve their share of an oversupplied market.
|US||0930 ET||Chicago Fed President Charles Evans delivers opening remarks at the Chicago Fed conference on Infrastructure and Economic Growth: Measuring the Impact of Funding Models.|
|0945 ET||Final-Oct Markit manufacturing PMI expected unrevised at 56.2, prelim-Oct -1.3 to 56.2.|
|1000 ET||Oct ISM manufacturing index expected -0.4 to 56.2, Sep -2.4 to 56.6. Oct ISM new orders, Sep -6.7 to 60.0. Oct ISM employment, Sep -3.5 to 54.6. Oct ISM prices paid expected -1.5 to 58.0, Sep +1.5 to 59.5.|
|1000 ET||Sep construction spending expected +0.7%, Aug -0.8%.|
|1100 ET||USDA weekly grain export inspections.|
|1600 ET||USDA weekly crop progress.|
|n/a||Oct total vehicle sales expected 16.40 million, Sep 16.34 million. Oct domestic vehicle sales expected 13.10 million, Sep 12.89 million.|
|GER||0355 ET||Revised German Oct Markit/BME manufacturing PMI, previous 51.8.|
|EUR||0400 ET||Revised Eurozone Oct Markit manufacturing PMI, previous 51.6.|
|1230 ET||ECB Governing Council member Ewald Nowotny delivers keynote speech on European Economic Policy of the Future at an event in Vienna.|
|UK||0430 ET||UK Oct manufacturing PMI expected -0.2 to 51.4, Sep 51.6.|
|JPN||n/a||Japanese markets closed for Culture Day holiday.|
|2035 ET||Revised Japan Oct Markit/JMMA manufacturing PMI, previous 52.8.|
|Company Name||Ticker||Time||Event Description||Period||Estimate|
|Sysco Corp||SYY US||Bef-mkt||Q1 2015 Earnings Release||Q1 2015||0.508|
|Affiliated Managers Group Inc||AMG US||Bef-mkt||Q3 2014 Earnings Release||Q3 2014||2.713|
|Loews Corp||L US||6:00||Q3 2014 Earnings Release||Q3 2014||0.677|
|Ford Motor Co||F US||9:30||October 2014 Sales and Revenue Release||2014|
|Sysco Corp||SYY US||10:00||Q1 2015 Earnings Call||Q1 2015|
|Ford Motor Co||F US||10:00||October 2014 Sales and Revenue Call||2014|
|Affiliated Managers Group Inc||AMG US||11:00||Q3 2014 Earnings Call||Q3 2014|
|Loews Corp||L US||11:00||Q3 2014 Earnings Call||Q3 2014|
|Frontier Communications Corp||FTR US||16:30||Q3 2014 Earnings Call||Q3 2014|
|Tenet Healthcare Corp||THC US||Aft-mkt||Q3 2014 Earnings Release||Q3 2014||0.093|
|American International Group Inc||AIG US||Aft-mkt||Q3 2014 Earnings Release||Q3 2014||1.093|
|Frontier Communications Corp||FTR US||Aft-mkt||Q3 2014 Earnings Release||Q3 2014||0.037|
|Marathon Oil Corp||MRO US||Aft-mkt||Q3 2014 Earnings Release||Q3 2014||0.593|
|Vornado Realty Trust||VNO US||Aft-mkt||Q3 2014 Earnings Release||Q3 2014||1.215|