Live Index – Mon, 08 Dec 2014 Premarket
December E-mini S&Ps (ESZ14 -0.33%) this morning are down -0.29% and European stocks are down -0.67% on concerns over slowing global growth after China Nov exports rose less than expected by the smallest amount in 7 months. Weakness in energy producers is another drag on stock prices as crude oil slipped to near last week’s 5-1/3 year low. Asian stocks closed mixed: Japan +0.08%, Hong Kong +0.19%, China +4.10%, Taiwan -0.21%, Australia +0.70%, Singapore -0.80%, South Korea -0.21%, India -1.19%. Japan’s Nikkei Stock Index climbed to a fresh 7-1/3 year high as exporter stocks rallied after a slide in the yen to a 7-1/3 year low against the dollar boosted their earnings prospects. China’s Shanghai Stock Index pushed up to a fresh 3-1/2 year high as bullish momentum for Chinese shares continues after an unexpected decline in China Nov imports fueled speculation the government will expand stimulus measures in an attempt to boost domestic demand. Commodity prices are mixed. Jan crude oil (CLF15 -1.96%) is down -2.02%. Jan gasoline (RBF15 -2.28%) is down -2.01% at a fresh 5-year low. Feb gold (GCG15 +0.50%) is up +0.40%. Mar copper (HGH15 -0.43%) is down -0.24%. Agriculture prices are weaker. The dollar index (DXY00 +0.09%) is up +0.06% at a 5-3/4 year high. EUR/USD (^EURUSD) is down -0.17% at a 2-1/4 year low. USD/JPY (^USDJPY) is down -0.33%. Mar T-note prices (ZNH15 -0.11%) are down -5.5 ticks at a 2-week low.
The China Nov trade balance unexpectedly widened to a record surplus of +$ 54.47 billion, more than expectations of +$ 43.95 billion and the largest surplus since data began in 1986. Nov exports increased +4.7% y/y, less than expectations of +8.0% y/y and the smallest increase in 7 months. Nov imports unexpectedly fell -6.7% y/y, weaker than expectations of +3.8% y/y and the largest decline in 8 months.
The Eurozone Dec Sentix investor confidence rose +9.4 to -2.5, a larger increase than expectations of +2.9 to -9.0 and the highest in 4 months.
German Oct industrial production rose +0.2% m/m and +0.8% y/y, less than expectations of +0.4% m/m and +0.9% y/y.
The Japan Nov eco-watchers survey current unexpectedly fell -2.5 to 41.5, weaker than expectations of +1.8 to 45.8 and the lowest in 2 years. The Nov eco-watchers survey outlook fell -2.6 to 44.0, weaker than expectations of +0.4 to 47.0 and the lowest in 8 months.
Japan’s Q3 GDP was revised lower to -1.9% q/q annualized from the previously reported -1.6% q/q after Q3 GDP business spending was revised downward to -0.4% q/q from the originally reported -0.2% q/q. The Q3 GDP deflator was revised lower to +2.0% y/y from the originally report +2.1% y/y.
There are no U.S. economic reports today. There is only 1 of the Russell 1000 companies that reports earnings today: H&R Block (consensus $ -0.42). Equity conferences this week include: American Society of Hematology Meeting on Mon, UBS Global Media and Communications Conference on Mon-Tue, Raymond James Systems, Semiconductors, Software and Supply Chain Conference on Mon, BMO Capital Markets Technology & Digital Media Conference on Tue, Leerink Devices & DNA Bus Tour 2014 Northern & Southern California on Tue, Goldman Sachs Financial Services Conference on Tue-Wed, Barclays Capital Global Technology Conference on Tue-Wed, Wells Fargo Energy Symposium on Tue-Wed, Barclays Real Estate Conference on Wed, BMO Technology Conference on Wed, Mitsubishi UFJ Securities Property REIT Conference on Wed, Wells Fargo Securities Research, Economics & Strategy Energy Symposium on Wed, Credit Lyonnais Securities Asia Ltd Americas Innovation Summit on Wed, Oppenheimer Healthcare Conference on Wed, Bank of America Merrill Lynch US Basic Materials Conference on Wed-Thu, Capital One Southcoast Energy Conference on Wed-Thu, Bank of America Merrill Lynch Animal & Dental Health Summit on Thu, and Desjardins Securities Materials Conference on Thu.
Norfolk Southern (NSC -0.21%) was downgraded to ‘Neutral’ from ‘Buy’ at BofA/Merrill Lynch.
Canadian Natural (CNQ -0.76%) was downgraded to ‘Neutral’ from ‘Buy’ at Citigroup.
Citigroup keeps a ‘Buy’ rating on Apple (AAPL -0.42%) and raises its price target on the stock to $ 135 from $ 120.
eBay (EBAY +0.26%) was upgraded to ‘Buy’ from ‘Hold’ at Stifel with a price target of $ 65.
Deutsche Bank (DB +2.35%) and US Bancorp (USB +1.35%) were both downgraded to ‘Underperform’ from ‘Market Perform’ at Keefe Bruyette.
Southwest Airlines (LUV -0.65%) was upgraded to ‘Buy’ from ‘Neutral’ at Goldman Sachs.
Canadian Pacific (CP -1.32%) was downgraded to ‘Neutral’ from ‘Buy’ at Goldman Sachs.
Cubist Pharmaceuticals (CBST -0.21%) surged 29% in pre-market trading after Merck said it will acquire the company for $ 102 a share in a deal valued at over $ 7 billion.
Exxon Mobil (XOM -0.58%) fell -1.7% and Schlumberger (SLB -0.31%) slid 1.2% in pre-market trading after the price of crude oil dropped to near last week’s 5-1/3 year low.
K+S (KPLUF -2.97%) was downgraded to ‘Sell’ from ‘Neutral’ at Goldman Sachs.
Time Warner (TWX -0.47%) was initiated with a ‘Buy’ at UBS with a price target of $ 100.
Disney (DIS +0.57%) was initiated with a ‘Buy’ at UBS with a price target of $ 106.
Pershing Square reported a 8.3% stake in Zoetis (ZTS -0.05%) .
Dec E-mini S&Ps (ESZ14 -0.33%) this morning are down -6.00 points (-0.29%). The S&P 500 index on Friday posted a fresh record high and closed higher: S&P 500 +0.17%, Dow Jones +0.33%, Nasdaq -0.01%. Supportive factors included (1) the +321,000 surge in U.S. Nov non-farm payrolls, much more than expectations of +230,000 and the largest increase in 1-3/4 years, and (2) the +0.4% jump in U.S. Nov average hourly earnings, double expectations of +0.2% m/m and the largest monthly increase in 3 years.
Mar 10-year T-notes (ZNH15 -0.11%) this morning are down -5.5 ticks at a 2-week low. Mar 10-year T-note futures prices on Friday sold off to a 2-week low and closed lower: TYH5 -19.00, FVH5 -17.25. Bearish factors included (1) concern the Fed could raise interest rates sooner than expected after U.S. Nov nonfarm payrolls rose by the most in 1-3/4 years, and (2) the +0.4% rise in U.S. Nov average hourly earnings, the strongest increase in 3 years.
The dollar index (DXY00 +0.09%) this morning is up +0.053 (+0.06%) at a 5-3/4 year high. EUR/USD (^EURUSD) is down -0.0021 (-0.17%) at a 2-1/4 year low. USD/JPY (^USDJPY) is down -0.40 (-0.33%). The dollar index on Friday soared to a 5-1/2 year high and closed higher. Closes: Dollar index +0.630 (+0.71%), EUR/USD -0.00963 (-0.78%), USD/JPY +1,700 (+1.42%). Bullish factors included (1) the larger-than-expected increase in U.S. Nov non-farm payrolls, which may push the Fed closer to raising interest rates, (2) the slide in EUR/USD to a 2-1/4 year low on speculation the ECB is close to implementing QE, and (3) the plunge in the yen as USD/JPY rose to a 7-1/3 year high on speculation the Japanese government will expand its inflationary and yen-negative fiscal policies.
Jan WTI crude oil (CLF15 -1.96%) this morning is down -$ 1.33 a barrel (-2.02%) and Jan gasoline (RBF15 -2.28%) is down -0.0357 (-2.01%) at a fresh 5-year low. Jan crude and Jan gasoline prices on Friday closed lower with Jan gasoline at a 5-year low. Closes: CLF5 -0.97 (-1.45%), RBF5 -0.0323 (-1.80%). Bearish factors included (1) the rally in the dollar index to a 5-1/2 year high, and (2) further indications that Saudi Arabia will defend its market share after state-run Saudi Arabian Oil Co. extended its price discount for its crude to its Asian customers to -$ 2.00 a barrel below a regional benchmark, the lowest in 14 years.
|US||1100 ET||USDA weekly grain export inspections.|
|1230 ET||Atlanta Fed President Dennis Lockhart speaks on the economic outlook and monetary policy to the Council for Quality Growth.|
|JPN||0000 ET||Japan Nov eco-watchers survey current expected +1.8 to 45.8, Oct 44.0. Nov eco-watchers survey outlook expected +0.4 to 47.0, Oct 46.6.|
|GER||0200 ET||German Oct industrial production expected +0.4% m/m and +0.9% y/y, Sep +1.4% m/m and -0.1% y/y.|
|UK||0430 ET||UK Nov Lloyds employment confidence, Oct 0.|
|1901 ET||UK Nov BRC sales like-for-like expected +0.6% y/y, Oct unch y/y.|
|EUR||0430 ET||Eurozone Dec Sentix investor confidence expected +2.9 to -9.0, Nov -11.9.|
|Principal Financial Group Inc||PFG US||9:00||Q4 2015 Guidance Call||Q4 2015|
|Edwards Lifesciences Corp||EW US||9:00||Investor Meeting||Y 2014|
|Dover Corp||DOV US||13:00||Investor Meeting||Y 2014|
|SL Green Realty Corp||SLG US||13:00||Investor Conference||Y 2014|
|H&R Block Inc||HRB US||Aft-mkt||Q2 2015 Earnings Release||Q2 2015||-0.415|
|McDonald’s Corp||MCD US||November 2014 Sales and Revenue Release||2014|