Wednesday, 20 July 2016

Global Markets & News -The Total Investment & Insurance Solutions

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20Th July 2016

OVERNIGHT MARKETS AND NEWS

Sep E-mini S&Ps (ESU16 +0.31%) are up +0.32% and European stocks are up +1.12% on positive corporate earnings results. Microsoft is up over 4% and Morgan Stanley is up over 3% in pre-market trading to lead U.S. stocks higher, while gains in technology companies and carmakers are leading European stocks higher with SAP SE up over 4% and Volkswagen AG up 6% after both companies reported better-than-expected earnings. On the negative side, mining stocks are weaker, led by a 6% fall in Anglo American Plc after it cut its full-year copper production target to 570,000 MT to 600,000 MT, less than a prior view of 630,000 MT. Asian stocks settled mixed: Japan -0.25%, Hong Kong +0.97%, China -0.29%, Taiwan -0.30%, Australia +0.69%, Singapore +0.90%, South Korea -0.12%, India +0.46%. Japanese stocks were undercut by a 13% drop in Nintendo as profit-taking set in after the stock rallied 120% over the past 2-weeks on the worldwide craze for its Pokemon Go mobile game.

The dollar index (DXY00 +0.04%) is down -0.01%. EUR/USD (^EURUSD) is down -0.07% at a 3-week low. USD/JPY (^USDJPY) is up +0.38% at a 3-week high.
Sep T-note prices (ZNU16 -0.13%) are down -6.5 ticks.

German Jun PPI rose +0.4% m/m and fell -2.2% y/y, stronger than expectations of +0.2% m/m and -2.4% y/y. The Total Investment & Insurance Solutions

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly MBA mortgage applications (previous +7.2% with purchase sub-index unch and refi sub-index +11.2%), and (2) EIA Weekly Petroleum Status Report.

There are 21 of the S&P 500 companies that report earnings today with notable reports including: Morgan Stanley (consensus $0.60), Halliburton (-0.19), Intel (0.53), eBay (0.42), Newmont Mining (0.28), AMEX (1.95), Abbott Labs (0.53).

U.S. IPO's scheduled to price today: Pantheon NV (PTHN), Audentes Therapeutics (BOLD), TPI Composites (TPIC), Impinj Inc (PI),
Equity conferences this week include: none. The Total Investment & Insurance Solutions



OVERNIGHT U.S. STOCK MOVERS

Microsoft (MSFT -1.61%) rallied over 4% in pre-market trading after it reported Q4 adjusted EPS of 69 cents, higher than consensus of 58 cents.
Morgan Stanley (MS -0.07%) is up over 3% in pre-market trading after it reported Q2 EPS of 75 cnts, above consensus of 60 cents.
Verizon Communucations (VZ -0.41%) was downgraded to 'Market Perform' from 'Outperform' at Oppenheimer.

Hyatt Hotels (H -1.29%) was downgraded to 'Sell' from 'Hold' at Evercore ISI with a 12-month target price of $44. The Total Investment & Insurance Solutions

Intuitive Surgical (ISRG +0.20%) jumped over 6% in after-hours trading after it reported Q2 adjusted EPS of $5.62, well above consensus of $4.98.
Ebay (EBAY +0.04%) gained +0.3% in after-hours trading after it reported June sale up +3.8% y/y, above the +2.8% /y increase in May.

Cintas (CTAS -0.24%) climbed over 3% in after-hours trading after it reported Q4 adjusted EPC continuing operations of $1.08, above consensus of $1.01, and said it sees full-year EPS continuing operations of $4.35-$4.45 higher than consensus of $4.28.

Discover Financial Services (DFS -0.19%) dropped over 2% in after-hours trading after it reported Q2 net revenue of $2.22 billion, below consensus of $2.23 billion.
Ryerson Holding (RYI -16.19%) lost over 1% in after-hours trading after it priced a secondary offering of 5 million shares.

Manhattan Associated (MANH -1.75%) rose over 2% in after-hours trading after it reported Q2 adjusted EPS of 49 cents, above consensus of 44 cents, and then raised guidance on full-year adjusted EPS to $1.78-$1.81 from a prior view of $1.73-$1.76.
Sarepta Therapeutics (SRPT +0.91%) fell 2% in after-hours trading after it reported a Q2 EPS loss of -$1.35, a bigger loss than consensus of -$1.23.

Marvell Technology Group (MRVL -2.28%) gained over 1% in after-hours trading after it reported Q4 adjusted EPS of 11 cents, better than consensus of 10 cents.

Interactive Brokers Group (IBKR +1.03%) slid nearly 3% in after-hours trading after it reported Q2 net revenue of $369 million, below consensus of $377.3 million.
Blackhawk Network Holdings (HAWK +1.82%) climbed over 5% in after-hours trading after it reported Q2 adjusted EPS of 37 cents, better than consensus of 26 cents, and then raised guidance on full-year adjusted EPS to $2.47-$2.66, higher than a prior view of $2.44-$2.63.

Zafgen (ZFGN +1.05%) plunged -39% in after-hours trading after it said it will stop all development on its lead obesity drug, beloranib, after two patients died in a clinical trial.

MARKET COMMENTS

Sep E-mini S&Ps (ESU16 +0.31%) this morning are up +7.00 points (+0.32%). Tuesday's closes: S&P 500 -0.14%, Dow Jones +0.14%, Nasdaq -0.36%. The S&P 500 on Tuesday closed lower on weakness in energy produciers with the -1.1% drop in crude oil prices. Stocks were also undercut by the IMF's cut in its global 2016 GDP forecast to +3.1% from +3.2% and its global 2017 GDP forecast to +3.4% from +3.5%. Stocks found support on the +4.8% rise in U.S. Jun housing starts to a 4-month high of 1.189 million, stronger than expectations of +0.2% to 1.165 million.

Sep 10-year T-note prices (ZNU16 -0.13%) this morning are down -6.5 ticks. Tuesday's closes: TYU6 +7.50, FVU6 +2.00. Sep T-notes on Tuesday closed higher on global growth concerns after the IMF cut their 2016 and 2017 global GDP forecasts. T-notes also saw some increased safe-haven demand with the sell-off in stocks. The Total Investment & Insurance Solutions

The dollar index (DXY00 +0.04%) this morning is down -0.011 (-0.01%). EUR/USD (^EURUSD) is down -0.0008 (-0.07%) at a 3-week low and USD/JPY (^USDJPY) is up +0.40 (+0.38%) at a 3-week high. Tuesday's closes: Dollar index +0.501 (+0.52%), EUR/USD -0.0054 (-0.49%), USD/JPY-0.04 (-0.04%). The dollar index on Tuesday climbed to a 4-1/4 month high and settled higher on weakness in EUR/USD which fell to a 3-week low after the German Jul ZEW survey expectations of economic growth plunged by -26.0 points to a 3-1/2 year low of -6.8. The dollar was also boosted by the stronger-than-expected U.S. June housing starts and building permits reports.


Sep WTI crude oil prices (CLU16 +0.15%) this morning are unchanged and Sep gasoline prices (RBU16 -0.60%) are down -0.0103 (-0.74%). Tuesday's closes: CLU6 -0.49 (-1.07%), RBU6 -0.0109 (-0.78%). Sep crude oil and gasoline on Tuesday closed lower on the rally in the dollar index to a 4-1/4 month high and the IMF's cut in its global 2016 GDP forecast to 3.1% from 3.2%, which signals reduced energy demand. Crude oil found support from expectations for Wednesday's weekly EIA data to show that U.S. crude inventories fell -2.0 million bbl.The Total Investment & Insurance Solutions

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