Thursday, 21 July 2016

Global Markets & News -The Total Investment & Insurance Solutions

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21st July 2016

OVERNIGHT MARKETS AND NEWS

Sep E-mini S&Ps (ESU16 -0.08%) are down -0.06% and European stocks are down -0.16% ahead of the results of today's ECB meeting and press conference from ECB President Draghi. The markets are not expecting any action from the ECB today, but will scour comments from Draghi as to if and when the ECB may boost easing measures. Global stocks took a hit after BOJ Governor Kuroda in a BBC Radio 4 program broadcast dismissed the use on helicopter money as stimulus. Losses were limited on increased M&A activity as Joy Global jumped 20% in pre-market trading after it was acquired by Komatsu for $2.89 billion and Relypsa surged over 50% in pre-market trading after being acquired by Galencia for $1.53 billion. Asian stocks settled mixed: Japan +0.77%, Hong Kong +0.54%, China +0.37%, Taiwan +0.54%, Australia +0.43%, Singapore -0.18%, South Korea -0.09%, India -0.74%. Japan's Nikkei Stock Index had rallied to a 1-1/2 month high after USD/JPY climbed to a 1-1/2 month high and lifted exporter stocks along with increased M&A activity after Japan's Komatsu agreed to buy Joy Global, the world's largest maker of underground mining equipment, for $2.89 billion.

The dollar index (DXY00 -0.16%) is down -0.18%. EUR/USD (^EURUSD) is up +0.04%. USD/JPY (^USDJPY) is down -0.52%.
Sep T-note prices (ZNU16 -0.05%) are down -4.5 ticks. The Total Investment & Insurance Solutions


USD/JPY fell back from a 1-1/2 month high and turned lower after BOJ Governor Kuroda in a BBC Radio 4 program broadcast said there was "no need and no possibility of easing monetary policy via helicopter money," where the central bank directly finances government spending. Kuroda said "at this moment, the BOJ has three options with quantitative and qualitative easing with negative interest rates. The Total Investment & Insurance Solutions


U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly initial unemployment claims (expected +11,000 to 265,000, previous unch at 254,000) and continuing claims (expected -9,000 to 2.140 million, previous +32,000 to 2.149 million), (2) Jul Philadelphia Fed business outlook survey (expected +0.1 to 4.8, Jun +6.5 to 4.7), (3) Jun Chicago Fed national activity index (expected +0.31 to -0.20, May -0.56 to -0.51), (4) May FHFA house price index (expected +0.4% m/m, Apr +0.2% m/m), (5) Jun existing home sales (expected -0.9% to 5.48 million, May +1.8% to 5.53 million), (6) Jun leading indicators (expected +0.2%, May -0.2%), (7) Treasury auctions $13 billion of 10-year TIPS, and (8) USDA weekly Export Sales.

There are 34 of the S&P 500 companies that report earnings today with notable reports including: Visa (consensus $0.67), Starbucks (0.49), AT&T (0.72), Capital One (1.87), General Motors (1.52), PulteGroup (0.32).

U.S. IPO's scheduled to price today: none.
Equity conferences this week include: none. The Total Investment & Insurance Solutions




OVERNIGHT U.S. STOCK MOVERS

Intel (INTC +1.54%) lost 3% in pre-market trading after it reported Q2 adjusted EPS of 59 cents, higher than consensus of 54 cents, but said it remains cautious on the PC market and forecasts a high-single-digit PC market contraction in 2016.
Qualcomm (QCOM +1.23%) jumped nearly 7% in after-hours trading after it reported Q3 adjusted EPS of $1.16, well above consensus of 97 cents.
eBay (EBAY +1.85%) rallied nearly 6% in after-hours trading after it reported Q2 adjusted EPS continuing operations of 43 cents, higher than consensus of 42 cents and then added $2.5 billion to its stock buyback plan.
Relypsa (RLYP +1.31%) surged over 50% in pre-market trading after Galencia agreed to buy it for $1.53 billion or $32 a share.

Mattel (MAT +1.42%) rose nearly 4% in after-hours trading after it reported a Q2 adjusted EPS loss of -2 cents, a smaller loss than consensus of -5 cents
Joy Global (JOY +1.07%) jumped 20% in pre-market trading after Komatsu Ltd. agreed to buy the company for $2.89 billion or $28.30 a share.
United Rentals (URI +2.84%) jumped 9% in after-hours trading after it reported Q2 adjusted EPS of $2.06, well above consensus of $1.82.
F5 Networks (FFIV +0.72%) climbed 3% in after-hours trading after it reported Q3 adjusted EPS of $1.81, above consensus of $1.79, and said it sees Q4 adjusted EPS of $1.92-$1.95, stronger than consensus of $1.92.

Kinder Morgan Inc/DE (KMI +0.68%) slid over 1% in after-hours trading after it reported Q2 revenue of $3.14 billion, below consensus of $3.41 billion.
Trueblue (TBI +1.23%) gained almost 5% in after-hours trading after it reported Q2 adjusted EPS of 51 cents, better than consensus of 43 cents, and said it sees Q3 adjusted EPS of 73 cents-78 cents, higher than consensus of 67 cents.
IMAX Corp. (IMAX -0.17%) gained over 4% in after-hours trading after it reported Q2 adjusted EPS of 18 cents, higher than consensus of 17 cents, and raised its 2016 installation view to 155 theaters from a prior estimate of 135-140 theaters
PTC Inc. (PTC +1.33%) climbed nearly 4% in after-hours trading after it reported Q3 adjusted revenue of $289.7 million, above consensus of $288 million.

Tractor Supply (TSCO +0.16%) slipped 2% in after-hours trading after it reported Q2 EPS of $1.16 and Q2 revenue of $1.85 billion, both right on expectations.
Newmont Mining (NEM -5.07%) rose over 2% in after-hours trading after it reported Q2 sales of $2.04 billion, stronger than consensus of $1.91 billion. The Total Investment & Insurance Solutions


MARKET COMMENTS

Sep E-mini S&Ps (ESU16 -0.08%) this morning are down -1.25 points (-0.06%). Wednesday's closes: S&P 500 +0.43%, Dow Jones +0.19%, Nasdaq +1.17%. The S&P 500 on Wednesday rallied to a new record high and closed higher on a positive start to quarterly company earnings season as 78% of the S&P 500 companies that have reported earnings results thus far have exceeded expectations. Stocks were also boosted by strength in technology stocks as bellwether Microsoft soared +7% after beating quarterly profit estimates. Stock market anxiety also faded as the VIX volatility index fell to a 1-3/4 year low.

Sep 10-year T-note prices (ZNU16 -0.05%) this morning are down -4.5 ticks. Wednesday's closes: TYU6 -8.00, FVU6 -4.75. Sep T-notes on Wednesday closed lower on the reduced safe-haven demand with the rally in the S&P 500 to an all-time high and on carryover weakness from a slide in German bund prices.
The dollar index (DXY00 -0.16%) this morning is down -0.175 (-0.18%). EUR/USD (^EURUSD) is up +0.0004 (+0.04%) and USD/JPY (^USDJPY) is down -0.56 (-0.52%). Wednesday's closes: Dollar index +0.138 (+0.14%), EUR/USD -0.0006 (-0.05%), USD/JPY +0.77 (+0.73%). The dollar index on Wednesday rallied to a 4-1/4 month high and closed higher on optimism about the U.S economic outlook after the S&P 500 climbed to a record high. In addition, USD/JPY rose to a 3-week high as the rally in stocks reduced the safe-haven demand for the yen.


Sep WTI crude oil prices (CLU16 -0.37%) this morning are up +9 cents (+0.20%) and Sep gasoline prices (RBU16 +0.15%) are up +0.0122 (+0.89%). Wednesday's closes: CLU6 +0.21 (+0.46%), RBU6 -0.0143 (-1.03%). Sep crude oil and gasoline on Wednesday settled mixed. Sep crude oil recovered from a 2-1/4 month low and closed higher after weekly EIA crude inventories fell -2.34 million bbl, a bigger decline than expectations of -2.0 million bbl. Crude oil and gasoline were undercut by the rally in the dollar index to a 4-1/4 month high and by the unexpected increase in EIA gasoline inventories by +911,000 bbl (vs expectations of -500,000 bbl). The Total Investment & Insurance Solutions

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