Friday, 12 August 2016

Global Markets & News-The Total Investment & Insurance Solutions

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12Th Aug 2016

OVERNIGHT MARKETS AND NEWS

Sep E-mini S&Ps (ESU16 +0.01%) are up +0.05% and European stocks are down -0.12% ahead of U.S. data on retail sales and consumer sentiment. Concerns over China's economic growth is limiting the upside in stock prices after Chinese data on industrial production and retail sales grew less than expected last month while credit growth grew at the slowest pace in 2-years. The weak economic data fueled a rally in Chinese government bonds as the China 10-year government bond yield fell to 2.665%, a 10-year low. Despite the weak economic data, Asian stocks settled mostly higher: Japan +1.10%, Hong Kong +0.83%, China +1.60%, Taiwan +0.20%, Australia +0.42%, Singapore -0.08%, South Korea unch, India +1.05%. Asian equity markets found support on the rally in U.S. stocks Thursday to all-time highs as China's Shanghai Composite climbed to a 2-week high and Japan's Nikkei Stock Index rose to a 2-1/4 month high.
The dollar index (DXY00 unch) is down -0.02%. EUR/USD (^EURUSD) is up +0.14%. USD/JPY (^USDJPY) is up +0.13%.
Sep T-note prices (ZNU16 +0.14%) are up +7 ticks.

China Jul aggregate financing, the broadest measure of credit growth, rose +487.9 billion yuan, weaker than expectations +1.0 trillion yuan and the slowest pace of growth in 2 years.
China Jul industrial production rose +6.0% y/y, weaker than expectations of +6.2% y/y.
China Jul retail sales rose +10.2% y/y, weaker than expectations of +10.5% y/y.

Eurozone Q2 GDP rose +0.3% q/q and +1.6% y/y, right on expectations.

Eurozone Jun industrial production rose +0.6% m/m, stronger than expectations of +0.5% m/m.The Total Investment & Insurance Solutions

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Jul retail sales (expected +0.4% and +0.1% ex-autos, Jun +0.6% and +0.7% ex autos), (2) Jul final demand PPI (expected +0.1% m/m and +0.2% y/y, Jun +0.5% m/m and +0.3% y/y) and Jul PPI ex food & energy (expected +0.2% m/m and +1.2% y/y, Jun +0.4% m/m and +1.3% y/y), (3) Jun business inventories (expected +0.1%, May +0.2%), (4) preliminary-Aug University of Michigan U.S. consumer sentiment index (expected +1.5 to 91.5, Jul -3.5 to 90.0), (5) USDA Aug WASDE crop production.

Russell 1000 companies that report earnings today: JC Penny's (consensus -$0.14)
U.S. IPO's scheduled to price today: none.
Equity conferences today: none.The Total Investment & Insurance Solutions
 
OVERNIGHT U.S. STOCK MOVERS

Alibaba Group Holding Ltd (BABA +5.08%) was upgraded to 'Strong Buy' from 'Outperform' at Raymond James with a 12-month target price of $124.
Nvidia (NVDA +2.03%) gained 3% in after-hours trading after it reported Q2 adjusted EPS of 53 cents, higher than consensus of 48 cents.

Dillards (DDS +7.76%) dropped over 3% in after-hours trading after it reported Q2 same-store sales fell 5%, a bigger decline than consensus of a 4% drop.
Nordstrom (JWN +7.53%) jumped over 10% in after-hours trading after it reported Q2 EPS of 67 cents, higher than consensus of 57 cents, and raised its full-year adjusted EPS view to $2.60-$2.75 from a May 12 view of $2.50-$2.70.
Planet Fitness (PLNT +0.79%) gained 2% in after-hours trading after it boosted its full-year adjusted EPS estimate to 63 cents-66 cents from a prior view of 62 cents-65 cents.
Itron (ITRI +0.97%) rose nearly 6% in after-hours trading after it reported Q1 adjusted EPS of 44 cents, higher than consensus of 32 cents,
Viavi Solutions (VIAV +0.69%) lost 3% in after-hours trading after it said it expects Q1 adjusted EPS of 6 cents-8 cents, below consensus of 8 cents.

Sunrun (RUN +3.64%) jumped over 10% in after-hours trading after it reported Q2 revenue of $122.5 million, above consensus of $111.3 million.
Ruby Tuesday (RT -2.61%) dropped 10% in after-hours trading after it reported Q4 same-restaurant sales fell -3.7% accelerating from a -3.1% decline in Q3, and said it will close 95 underperforming restaurants.
Delek U.S. Holdings (DK +4.34%) rallied 14% in after-hours trading after the New York Post reported that CVR Energy is preparing to make an offer for the company.
Acacia Communications (ACIA -2.17%) jumped over 20% in after-hours trading after it reported Q2 revenue of $116.2 million, well above consensus of $85.8 million, and said it expects Q3 adjusted EPS of 64 cents-76 cents, higher than consensus of 43 cents.

Silicon Graphics International (SGI +8.73%) surged over 28% in after-hours trading after Hewlett Packard Enterprise acquired the company for $275 million.
Voxeljet AG (VJET +7.59%) tumbled 19% in after-hours trading after it cut its 2015 revenue estimate to 24 million euros-25 million euros from a May 12 estimate of 28 million euros-30 million euros.
Ocean Rig UDW (ORIG +10.20%) plunged over 50% in after-hours trading after it said it will reschedule installments and engaged advisers to assess viability of its capital structure and alternatives that may be available to pursue.The Total Investment & Insurance Solutions

MARKET COMMENTS

Sep E-mini S&Ps (ESU16 +0.01%) this morning are up +1.00 point (+0.05%). Thursday's closes: S&P 500 +0.47%, Dow Jones +0.64%, Nasdaq +0.42%. The S&P 500 on Thursday posted a fresh record high and closed higher on a rally in energy producers as crude oil prices climbed +4.27% and on Wells Fargo's hike in its S&P 500 12-month target to 2,200.

Sep 10-year T-notes (ZNU16 +0.14%) this morning are up +7 ticks. Thursday's closes: TYU6 -22.00, FVU6 -13.25. T-notes on Thursday closed lower on reduced safe-haven demand with the rally in stocks and on lackluster demand for the Treasury's $15 billion auction of 30-year T-bonds that had a bid-to-cover ratio of 2.24, below the 12-auction average of 2.36.

The dollar index (DXY00 unch) this morning is down -0.023 (-0.02%). EUR/USD (^EURUSD) is up +0.0016 (+0.14%). USD/JPY (^USDJPY) is up (+0.13%). Thursday's closes: Dollar index +0.207 (+0.22%), EUR/USD +0.0059 (+0.53%), USD/JPY -0.59 (-0.58%). The dollar index on Thursday closed higher on the rally in the S&P 500 to a record high and on weakness in GBP/USD which sold off to a 1-month low on expectations for more BOE stimulus measures.


Sep WTI crude oil (CLU16 -0.30%) this morning is down -6 cents (-0.14%) and Sep gasoline (RBU16 -1.07%) is down 0.0128 (-0.94%). Thursday's closes: CLU6 +1.78 (+4.27%), RBU6 +0.0603 (+4.63%). Sep crude oil and gasoline on Thursday closed higher with Sep crude at a 2-week high. Crude oil rallied on comments from Saudi Arabia's energy minister who said talks with OPEC producers next month could include possible action to stabilize the oil market. Crude oil was also boosted by the IEA's forecast that global refiners will increase Q3 crude processing by +600,000 bpd to a record 80.6 million bpd.The Total Investment & Insurance Solutions

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