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12
September 2016
OVERNIGHT MARKETS AND NEWS
Sep E-mini S&Ps (ESU16 -0.64%) are down -0.60% at a 2-month low and European stocks
are down -1.94% at a 2-week low on concern the Fed is
closer to raising interest rates. The yield on the German bund 10-year yield
and the U.S. 10-year T-note yield both climbed to 2-1/2 month highs on
speculation global central banks may be done expanding their stimulus measures.
Rate hike concerns have also undercut commodity prices with crude oil (CLV16 -2.31%) down -1.79% and copper (HGZ16 -0.72%) down -0.81% at a 2-3/4 month low. That has
pressured energy producing stocks and mining companies. Asian stocks settled
lower: Japan -1.73%, Hong Kong -3.36%, China -1.85%, Taiwan -1.18%, Australia -2.24%, Singapore closed for holiday,
South Korea -2.63%, India -1.54%. Losses in technology companies
led Asian markets lower as Samsung Electronic tumbled 7% after regulators and
airlines warned against the use of Samsung's Note 7 smartphones due to risk of
fire from its batteries.
The dollar index (DXY00 +0.03%) is up +0.05%. EUR/USD (^EURUSD)
is down -0.10%. USD/JPY (^USDJPY)
is down -0.62%.
Dec T-note prices (ZNZ16 -0.12%) are down -4.5 ticks
at a 2-1/2 month low. The Total
Investment & Insurance Solutions
Key U.S. news today
includes: (1) Atlanta Fed President Dennis Lockhart (non-voter) speaks about
monetary policy and the economy to the National Association for Business
Economics, (2) Treasury auctions $24 billion of 3-year T-notes, (3) Minneapolis
Fed President Neel Kashkari (non-voter) speaks about too-big-to-fail and the
U.S. economy at an event in St. Paul, MN, (4) Treasury auctions $23 billion of
10-year T-notes, (5) Fed Governor Lael Brainard discusses the outlook for the
U.S. economy and monetary policy at the Chicago Council on Global Affairs, (6)
USDA weekly grain export inspections, (7) USDA Sep WASDE crop production, and
(8) USDA Weekly Crop Progress.
Russell 1000 companies
that report earnings today: none.
U.S. IPO's scheduled to
price today: none.
Equity conferences today
include: Barclays Global Financial Services Conference on Mon-Wed, Morgan
Stanley Global Health Care Conference on Mon-Thu, B.Riley & Co. Consumer
Conference on Tue, Raymond James North American Equities Conference on Tue,
Bank of America Merrill Lynch Global Real Estate Conference on Tue-Wed,
Deutsche Bank Technology Conference on Tue-Wed, Hart Energy DUG Eagle Ford
Conference on Tue-Wed, KeyBanc Basic Materials & Packaging Conference on
Tue-Wed, Credit Suisse Basic Materials Conference on Tue-Thu, Bank of America
Merrill Lynch Power & Gas Leaders Conference on Wed, Credit Suisse European
Industrials Conference on Wed, Deutsche Bank Metals and Mining Conference on
Wed, Mizuho Investment Conference on Wed, Peters & Co.Limited Energy
Conference on Wed, Bank of America Merrill Lynch Media, Communications &
Entertainment Conference on Wed-Thu, Morgan Stanley Laguna Conference on
Wed-Fri, Bank of America Merrill Lynch Japan Conference on Thu, BMO Capital
Markets Back to School Education Conference on Thu, UBS Best of Americas
Conference on Thu, Citi Global Industrials Conference on Fri, Kazakh Drilling
Roundtable - 2nd Annual on Fri. The
Total Investment & Insurance Solutions
Marathon Oil (MRO -6.39%) was downgraded to 'Neutral'
from 'Outperform' at Credit Suisse.
Praxair (PX -2.62%) slid nealy 3% in pre-market
trading after it said it ended merger talks with Linde AG.
HP Inc. (HPQ -3.83%) lost 1% in pre-market trading
after it said it bought Samsung Electronics printer business for about $1.05
billion.
AutoZone (AZO -0.95%) was upgraded to 'Buy' from
'Neutral' at UBS with a 12-month target price of $825.
Target (TGT -0.66%) is down nearly 3% in
pre-market trading after it was downgraded to 'Market Perform' from
'Outperform' at Cowen.
Colgate (CL -2.92%) was upgraded to 'Buy' from
'Neutral' at Bank of America/Merrill Lynch with a price target of $80.
Tronc (TRNC +0.24%) said it is in active
discussions over Gannet's takeover bid of about $673 million.
The U.S. Consumer
Product Safety Commission urged users of Samsung Electronics Note 7 smartphone
to turn them off immediately and stop charging them due to fire risk
Southwest Airlines (LUV -3.66%) said it reached a tentative
agreement with its flight attendants.
United Continental
Holdings (UAL -3.51%) fell nearly 1% in after-hours
trading after it said it sees full-year CASM ex-items 2.5%-3.5%. higher than
the 2%-3% increase it said it saw
in July, citing ratification of the flight attendants contract.
American Airlines Group
(AAL -2.19%) announced that it had reached
a tentative pact with the transport workers union.
Swift Transportation (SWFT +4.61%) slid over 1% in after-hours
trading after it announced that it will take a charge on the retirement of CEO
Jerry Moyes.
CoLucid Pharmaceuticals
(CLCD +5.91%) fell nearly 1% in after-hours
trading after it priced a 3.25 million share secondary offering. The Total Investment & Insurance
Solutions
Sep E-mini S&Ps (ESU16 -0.64%) this morning are down -12.75 points (-0.60%) at a 2-month low. Friday's
closes: S&P 500 -2.45%, Dow
Jones -2.13%, Nasdaq -2.55%. The S&P 500 on Friday sold
off to a 2-month low and closed sharply lower on the breakout in the 10-year
T-note yield to a new 2-1/2 month high and on disappointment that the ECB on
Thursday decided not to extend the ending date of its QE program beyond the
current March 2017. In addition, Boston Fed President Rosengren (voter) on
Friday said waiting too long to raise rates could risk financial stability.
Dec 10-year T-notes (ZNZ16 -0.12%) this morning are down -4.5 ticks
to a fresh 2-1/2 month low. Friday's closes: TYZ6 -11.50, FVZ6 -5.50. Dec T-notes on Friday fell to a 2-1/2
month low and closed lower on carryover weakness from a plunge in German bund
prices to a 1-1/2 month low on disappointment that the ECB on Thursday did not
expand QE. T-notes were also hurt by comments from Boston Fed President
Rosengren who said that waiting too long to raise interest rates threatens the
U.S recovery.
The dollar index (DXY00 +0.03%) this morning is up +0.043
(+0.05%). EUR/USD (^EURUSD) is down -0.0011 (-0.10%). USD/JPY (^USDJPY)
is down-0.64 (-0.62%). Friday's
closes: Dollar index +0.309 (+0.33%), EUR/USD -0.0027 (-0.24%), USD/JPY +0.20 (+0.204%). The
dollar index on Friday closed higher on hawkish comments from Boston Fed
President Rosengren who warned that waiting too long to raise interest rates
threatens the economic recovery. The dollar was also boosted by improved
interest rate differentials with the 10-year T-note yield rising to a new 2-1/2
month high. There was weakness in EUR/USD after German Jul exports unexpectedly
fell -2.6% m/m, the biggest decline in 11 months.
Oct crude oil (CLV16 -2.31%) this morning is down -82 cents
(-1.79%) and Oct gasoline (RBV16 -0.17%)
is up +0.0054 (+0.40%). Friday's closes: CLV6-1.74 (-3.65%), RBV6 -0.0554 (-3.91%). Oct crude and gasoline on
Friday closed lower on a stronger dollar and on speculation that Hurricane
Hermine caused the large drawdown in Thursday's EIA crude inventories and that
this Wednesday’s EIA data will show a surge in oil supplies. Crude oil prices
were also hurt by the slump in the S&P 500 to a 2-month low, which
undercuts confidence in the economic outlook and energy demand.The Total Investment & Insurance
Solutions
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