Live Index – Wed, 05 Nov 2014 Premarket
December E-mini S&Ps (ESZ14 +0.50%) this morning are up +0.39% after the results of the mid-term elections showed Republicans won control of the U.S Senate in for the first time in 8 years, which is seen as business friendly. European stocks are up +1.48% as better-than-expected earnings results from Marks & Spencer Group Plc., UK’s biggest clothing retailer, and from Hannover Re, the world’s third-largest reinsurer by market value, boosted the overall market. The Russian ruble fell to a record low of 44.96 per dollar, but came off that low on signs that Russia’s central bank may allow the currency to trade freely after the Bank of Russia said it was abandoning its predictable intervention policy to hamper “speculative strategies” against the currency. The Bank of Russia said it will spend only $ 350 million once a day in intervention and said it won’t exclude additional interest rate increases in an attempt to shore up the ruble. Asian stocks closed mostly lower: Japan +0.44%, Hong Kong -0.63%, China -0.39%, Taiwan -0.30%, Australia -0.04%, Singapore +0.19%, South Korea -0.26%, India +0.20%. Commodity prices are mostly lower as the dollar strengthens. Dec crude oil (CLZ14 +0.04%) is down -0.05%. Dec gasoline (RBZ14 -0.51%) is down -0.38% at a 4-year low. Dec gold (GCZ14 -2.36%) is down -2.43% at a 4-1/2 year low. Dec copper (HGZ14 -1.21%) is down -1.49% at a 2-week low. Agriculture prices are weaker. The dollar index (DXY00 +0.61%) is up +0.62% at a 4-1/3 year high. EUR/USD (^EURUSD) is down -0.58%. USD/JPY (^USDJPY) is up +0.93% at a 6-3/4 year high as the yen fell after BOJ Governor Kuroda hinted the BOJ may further expand its stimulus measures when he said that he means business in ending what he calls a “deflationary mindset” in Japan and that there is “no limit for additional easing, including on bond purchases.” Dec T-note prices (ZNZ14 -0.10%) are down -4 ticks.
Eurozone Sep retail sales fell -1.3% m/m, a bigger decline than expectations of -0.8% m/m and the largest drop in 2-1/3 years. On an annual basis, Sep retail sales rose +0.6% y/y, less than expectations of +1.4% y/y.
The Eurozone Oct Markit composite PMI was revised lower to 52.1 from the originally reported 52.2.
The German Oct Markit services PMI was revised lower to 54.4 from the originally reported 54.8, the slowest pace of expansion in 7 months.
The UK Oct Markit/CIPS services PMI fell -2.5 to 56.2, a bigger decline than expectations of -0.2 to 58.5 and the slowest pace of expansion in 17 months.
The UK Oct BRC shop price index fell -1.9% y/y, a steeper decline than expectations of -1.7% y/y and matched July’s drop as the largest decrease since the data series began in 2006.
Japan Sep labor cash earnings rose +0.8% y/y, right on expectations, although Aug was revised lower to +0.9% y/y from the originally reported +1.4% y/y.
Today’s Oct ADP employment report is expected to show an increase of +220,000, strengthening a bit from the +213,000 rise seen in September. The market is expecting today’s Oct ISM non-manufacturing index to show a -0.6 point decline to 58.0, adding to the -1.0 point decline to 58.6 seen in September.
There are 23 of the S&P 500 companies that report earnings today with notable reports including: Time Warner (consensus $ 0.94), Duke Energy (1.52), News Corp (0.05), CBS Corp (0.73), Genworth Financial (0.21), Whole Foods (0.32), Prudential Financial (2.41), Symantec (0.43). 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.
Time Warner (TWX -4.81%) reported Q3 EPS of $ 1.22, higher than consensus of 94 cents.
Covidien PLC (COV -0.42%) reported Q4 EPS of $ 1.15, better than consensus of $ 1.02.
EOG Resources (EOG -3.26%) rose over 5% in after-hours trading after it reported Q3 adjusted EPS of $ 1.31, higher than consensus of $ 1.30.
Papa John’s (PZZA +0.97%) reported Q3 EPS of 39 cents, above consensus of 37 cents.
Levin Capital Strategies reported a 5.0% passive stake in Great Western (GWB -0.86%) .
Cimarex Energy (XEC -3.81%) reported Q3 adjusted EPS of $ 1.53, better than consensus of $ 1.51.
KAR Auction (KAR -0.79%) reported Q3 adjusted EPS of 40 cents, higher than consensus of 31 cents.
Team Health (TMH +0.23%) reported Q3 adjusted EPS of 60 cents, better than consensus of 59 cents.
Activision Blizzard (ATVI -1.72%) climbed over 3% in after-hours trading after it reported Q3 EPS of 23 cents, well above consensus of 13 cents, and then raised guidance on fiscal 2014 EPS to $ 1.35 from $ 1.29, higher than consensus of $ 1.33.
Intel (INTC +0.67%) fell over 1% in after-hours trading after it was downgraded to ‘Underperform’ from ‘Market Perform’ at Bernstein.
Pioneer Natural (PXD -3.84%) reported Q3 adjusted EPS of $ 1.35, higher than consensus of $ 1.26.
21st Century Fox (FOXA -2.97%) reported Q1 EPS of 48 cents, well above consensus of 36 cents.
Itron (ITRI -2.15%) reported Q3 EPS of 39 cents, better than consensus of 36 cents.
Dec E-mini S&Ps (ESZ14 +0.50%) this morning are up +7.75 points (+0.39%). The S&P 500 index on Tuesday closed lower: S&P 500 -0.28%, Dow Jones +0.10%, Nasdaq -0.317%. Bearish factors included (1) carry-over selling from a slide in European stocks after the European Commission said the recovery in the Eurozone is “not only subdued but also fragile” as it cut its Eurozone 2014 GDP forecast to +0.8% from a May forecast of +1.2%, (2) the -$ 43.0 billion U.S. Sep trade deficit, wider than expectations of a -$ 40.2 billion deficit, which may lead to Q3 GDP being revised lower, and (3) a slide in energy producers after crude oil tumbled to a 3-year low.
Dec 10-year T-notes (ZNZ14 -0.10%) this morning are down -4 ticks. Dec 10-year T-note futures prices on Tuesday closed slightly higher: TYZ4 +0.50, FVZ4 unch. Bullish factors included (1) speculation that the fall in crude oil prices to a 3-year low will reduce inflation expectations, (2) increased safe-haven demand for T-notes after stocks fell, and (3) positive carry-over from a rally in German bunds to a 2-week high after the EU cut its 2014 and 2015 Eurozone GDP and inflation forecasts.
The dollar index (DXY00 +0.61%) this morning is up +0.537 (+0.62%) at a 4-1/3 year high. EUR/USD (^EURUSD) is down -0.0073 (-0.58%). USD/JPY (^USDJPY) is up +1.06 (+0.93%) at a 6-3/4 year high. The dollar index on Tuesday closed lower. Closes: Dollar index -0.325 (-0.37%), EUR/USD +0.00647 (+0.52%), USD/JPY -0.441 (-0.39%). Negative factors included (1) weakness in USD/JPY as the fall in stock prices boosted safe-haven demand for the yen, and (2) strength in EUR/USD after Eurozone Sep producer prices unexpectedly rose, which reduced deflation concerns and dampened speculation the ECB will boost stimulus.
Dec WTI crude oil (CLZ14 +0.04%) this morning is down -4 cents (-0.05%) and Dec gasoline (RBZ14 -0.51%) is down -0.0079 (-0.38%) at a new 4-year low. Dec crude and Dec gasoline on Tuesday sold off with Dec crude at a 3-year low and Dec gasoline at a 4-year low. Closes: CLZ4 -1.59 (-2.02%), RBZ4 -0.0396 (-1.87%). Bearish factors included (1) Saudi Arabia’s cut in the price of crude oil that it sells to the U.S. in an attempt to preserve its share of OPEC output, (2) the European Commission’s cut in its Eurozone 2014 and 2015 GDP estimates, a sign of weaker fuel demand, and (3) expectations for Wednesday’s weekly EIA crude inventories to increase by +1.8 million bbl.
|US||0700 ET||Weekly MBA mortgage applications, previous -6.6% with purchase sub-index -5.0% and the refi sub-index 7.4%.|
|0815 ET||Oct ADP employment change expected +220,000, Sep +213,000.|
|0915 ET||Minneapolis Fed President Narayana Kocherlakota delivers a speech titled Clarifying the Objectives of Monetary Policy at an event in Virginia, MN.|
|0900 ET||Treasury announces amounts of 3-year T-notes (previous $ 27 billion), 10-year T-notes (previous $ 21 billion), and 30-year T-bonds (previous $ 13 billion) to be auctioned Nov 10-13 in the Treasurys quarterly refunding.|
|0930 ET||Richmond Fed President Jeffrey Lacker speaks on Committing to Financial Stability at a conference on Financial Stability after Dodd Frank: Have We Ended Too Big to Fail?|
|0945 ET||Revised-Oct Markit services PMI expected -0.2 to 57.1, prelim-Oct 57.3. Revised-Oct Markit composite PMI, prelim-Oct5 57.3.|
|1000 ET||Oct ISM non-manufacturing index expected -0.6 to 58.0, Sep -1.0 to 58.6.|
|1030 ET||EIA Weekly Petroleum Status Report.|
|GER||0355 ET||Revised German Oct Markit services PMI, previous 54.8.|
|EUR||0400 ET||Revised Eurozone Oct composite PMI, previous 52.2.|
|0500 ET||Eurozone Sep retail sales expected -0.8% m/m and +1.5% y/y, Aug +1.2% m/m and +1.9% y/y.|
|UK||0430 ET||UK Oct Markit/CIPS services PMI expected -0.2 to 58.5, Sep 58.7.|
|Company Name||Ticker||Time||Event Description||Period||Estimate|
|Time Warner Inc||TWX US||Bef-mkt||Q3 2014 Earnings Release||Q3 2014||0.941|
|Quanta Services Inc||PWR US||Bef-mkt||Q3 2014 Earnings Release||Q3 2014||0.58|
|Denbury Resources Inc||DNR US||Bef-mkt||Q3 2014 Earnings Release||Q3 2014||0.256|
|Spectra Energy Corp||SE US||Bef-mkt||Q3 2014 Earnings Release||Q3 2014||0.269|
|Cognizant Technology Solutions Corp||CTSH US||Bef-mkt||Q3 2014 Earnings Release||Q3 2014||0.633|
|Chesapeake Energy Corp||CHK US||Bef-mkt||Q3 2014 Earnings Release||Q3 2014||0.326|
|NRG Energy Inc||NRG US||Bef-mkt||Q3 2014 Earnings Release||Q3 2014||0.492|
|Actavis plc||ACT US||Bef-mkt||Q3 2014 Earnings Release||Q3 2014||3.105|
|CenterPoint Energy Inc||CNP US||Bef-mkt||Q3 2014 Earnings Release||Q3 2014||0.304|
|Covidien PLC||COV US||6:00||Q4 2014 Earnings Release||Q4 2014||1.019|
|Duke Energy Corp||DUK US||7:00||Q3 2014 Earnings Release||Q3 2014||1.523|
|Fastenal Co||FAST US||7:00||October 2014 Sales and Revenue Release||2014|
|Mondelez International Inc||MDLZ US||8:00||Q3 2014 Earnings Release||Q3 2014||0.392|
|Cognizant Technology Solutions Corp||CTSH US||8:00||Q3 2014 Earnings Call||Q3 2014|
|EOG Resources Inc||EOG US||8:00||Q3 2014 Earnings Call||Q3 2014|
|Actavis plc||ACT US||8:00||Q3 2014 Earnings Call||Q3 2014|
|Cardinal Health Inc||CAH US||8:00||Annual General Meeting||Y 2014|
|Covidien PLC||COV US||8:30||Q4 2014 Earnings Call||Q4 2014|
|Spectra Energy Corp||SE US||9:00||Q3 2014 Earnings Call||Q3 2014|
|Quest Diagnostics Inc||DGX US||9:00||Investor Day||Y 2014|
|Starbucks Corp||SBUX US||9:00||FY 2015 Guidance Call||Y 2015|
|Chesapeake Energy Corp||CHK US||9:00||Q3 2014 Earnings Call||Q3 2014|
|NRG Energy Inc||NRG US||9:00||Q3 2014 Earnings Call||Q3 2014|
|Quanta Services Inc||PWR US||9:30||Q3 2014 Earnings Call||Q3 2014|
|WellPoint Inc||WLP US||10:00||Extraordinary Shareholders Meeting||Y 2014|
|Pioneer Natural Resources Co||PXD US||10:00||Q3 2014 Earnings Call||Q3 2014|
|Mondelez International Inc||MDLZ US||10:00||Q3 2014 Earnings Call||Q3 2014|
|Duke Energy Corp||DUK US||10:00||Q3 2014 Earnings Call||Q3 2014|
|Time Warner Inc||TWX US||10:30||Q3 2014 Earnings Call||Q3 2014|
|Devon Energy Corp||DVN US||11:00||Q3 2014 Earnings Call||Q3 2014|
|ONEOK Inc||OKE US||11:00||Q3 2014 Earnings Call||Q3 2014|
|Denbury Resources Inc||DNR US||11:00||Q3 2014 Earnings Call||Q3 2014|
|Cimarex Energy Co||XEC US||11:00||Q3 2014 Earnings Call||Q3 2014|
|Varian Medical Systems Inc||VAR US||11:30||Investor Meeting||Y 2014|
|CareFusion Corp||CFN US||11:30||Annual General Meeting||Y 2014|
|CenterPoint Energy Inc||CNP US||11:30||Q3 2014 Earnings Call||Q3 2014|
|Oracle Corp||ORCL US||13:00||Annual General Meeting||Y 2014|
|Union Pacific Corp||UNP US||14:00||Investor Day||Y 2014|
|KLA-Tencor Corp||KLAC US||15:00||Annual General Meeting|
|QUALCOMM Inc||QCOM US||16:00||Q4 2014 Earnings Release||Q4 2014||1.315|
|News Corp||NWSA US||16:05||Q1 2015 Earnings Release||Q1 2015||0.047|
|CBS Corp||CBS US||16:30||Q3 2014 Earnings Call||Q3 2014|
|QUALCOMM Inc||QCOM US||16:45||Q4 2014 Earnings Call||Q4 2014|
|CenturyLink Inc||CTL US||17:00||Q3 2014 Earnings Call||Q3 2014|
|Whole Foods Market Inc||WFM US||17:00||Q4 2014 Earnings Call||Q4 2014|
|Symantec Corp||SYMC US||17:00||Q2 2015 Earnings Call||Q2 2015|
|CenturyLink Inc||CTL US||Aft-mkt||Q3 2014 Earnings Release||Q3 2014||0.617|
|CBS Corp||CBS US||Aft-mkt||Q3 2014 Earnings Release||Q3 2014||0.725|
|CF Industries Holdings Inc||CF US||Aft-mkt||Q3 2014 Earnings Release||Q3 2014||3.477|
|Genworth Financial Inc||GNW US||Aft-mkt||Q3 2014 Earnings Release||Q3 2014||0.211|
|Whole Foods Market Inc||WFM US||Aft-mkt||Q4 2014 Earnings Release||Q4 2014||0.322|
|Integrys Energy Group Inc||TEG US||Aft-mkt||Q3 2014 Earnings Release||Q3 2014||0.4|
|QEP Resources Inc||QEP US||Aft-mkt||Q3 2014 Earnings Release||Q3 2014||0.248|
|Prudential Financial Inc||PRU US||Aft-mkt||Q3 2014 Earnings Release||Q3 2014||2.413|
|Symantec Corp||SYMC US||Aft-mkt||Q2 2015 Earnings Release||Q2 2015||0.426|
|News Corp||NWSA US||17:30||Q1 2015 Earnings Call||Q1 2015|
|Stericycle Inc||SRCL US||Investor Meeting||Y 2014|
|Walgreen Co||WAG US||October 2014 Sales and Revenue Release||2014|
|Western Digital Corp||WDC US||Annual General Meeting|
|Costco Wholesale Corp||COST US||October 2014 Sales and Revenue Release||2014|
|Linear Technology Corp||LLTC US||Annual General Meeting|