Thursday, 22 September 2016

Global Markets & News-The Total Investment & Insurance Solutions

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22 September 2016

OVERNIGHT MARKETS AND NEWS

Dec E-mini S&Ps (ESZ16 +0.34%) are up +0.26% and European stocks are up +1.95%, both at 1-1/2 week highs after the Fed said it wanted to wait "for further evidence of continued progress toward its objectives" before raising interest rates. The dovish Fed weakened the dollar and spurred rallies in commodities, with crude oil (CLX16 +1.06%) up +0.97% at a 1-week high and copper (HGZ16 +1.44%) up +1.51% at a 5-week high. That has fueled gains in raw-material and energy producing stocks. Asian stocks settled mostly higher: Japan closed for holiday, Hong Kong +0.38%, China +0.54%, Taiwan +0.07%, Australia +0.65%, Singapore -0.16%, South Korea +0.71%, India +0.93%.

The dollar index (DXY00 -0.47%) is down -0.46%. EUR/USD (^EURUSD) is up +0.38%. USD/JPY (^USDJPY) is up +0.41%.

Dec T-note prices (ZNZ16 +0.14%) are up +6.5 ticks at a 1-1/2 week high.
In its monthly economic bulletin, the ECB Governing Council said they "will remain alert and ready to act, if warranted, to achieve its price stability objective." The added that inflation rates "are likely to remain low over the next few months before starting to pick up towards the end of 2016, in large part owing to base effects in the annual rate of change of energy prices." The Total Investment & Insurance Solutions

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly initial unemployment claims (expected +1,000 to 261,000, previous +1,000 to 260,000) and continuing claims (expected -2,000 to 2.141 million, previous +1,000 to 2.143 million), (2) Aug Chicago Fed national activity index (expected -0.12 to 0.15, Jul +0.22 to 0.27), (3) Jul FHFA house price index (expected +0.3% m/m, Jun +0.2% m/m), (4) Aug existing home sales (expected +1.1% to 5.45 million, Jul -3.2% to 5.39 million), (5) Aug leading indicators (expected unchanged m/m, Jul +0.4%), (6) Sep Kansas City Fed manufacturing survey (expected +1 to -3, Aug +2 to -4), (6) the Treasury auction of $13 billion of 10-year TIPS, (7) Atlanta Fed President Dennis Lockhart (non-voter) gives welcoming and introductory remarks at an Atlanta Fed conference on “Unemployment, Wages and Productivity,” and (8) USDA weekly Export Sales.
Russell 1000 companies that report earnings today: Full Spectrum (FMAX), Valvoline (VVV), AM Immune (ACIU), Gridsum Holding (GSUM), Apptio (APTI).

U.S. IPO's scheduled to price today: elf Beauty Inc (ELF), Capstar Financial Holdings (CSTR).

Equity conferences during the remainder of this week include: Goldman Sachs Communicopia Conference on Tue-Thu. The Total Investment & Insurance Solutions

OVERNIGHT U.S. STOCK MOVERS

TransDigm Group (TDG +1.07%) was rated a new 'Buy' at Jeffries with a 12-month target price of $340.
Weyerhaeuser (WY +1.27%) was rated a new 'Buy' at Goldman Sachs with a price target of $37.

SeaWorld (SEAS +1.32%) was upgraded to 'Buy' from 'Neutral' at Citigroup.
CorEnergy Infrastructure Trust (CORR +0.32%) was rated a new 'Buy' at DA Davidson with a 12-month target price of $36.

Bed Bath & Beyond (BBBY +0.14%) fell 2% in after-hours trading after it reported Q2 comparable same-store sales were down -1.2%, weaker than consensus of up +0.4%.
Herman Miller (MLHR unch) sank over 10% in after-hours trading after it reported Q1 EPS of 60 cents, below consensus of 62 cents, and said it sees Q2 adjusted EPS of 52 cents-56 cents, weaker than consensus of 60 cents.

Red Hat (RHT +1.66%) climbed 6% in after-hours trading after it raised guidance on fiscal 2017 adjusted EPS to $2.23-$2.25 from a June 22 view of $2.19-$2.23.
Jabil Circuit (JBL +2.46%) fell 4% in after-hours trading after it said it sees Q1 diversified manufacturing revenue down 12% to $2.2 billion.

Analogic (ALOG -2.51%) slid 3% in after-hours trading after it reported Q4 adjusted EPS of $1.02, below consensus of $1.14.

Chesapeake Utilities Corp. (CPK +2.52%) fell 2% in after-hours trading after it filed an automatic stock shelf of up to $52 million in shares.

Novavax (NVAX +32.88%) jumped over 10% in after-hours trading after former CEO Gail Boudreaux bought 100,000 shares of Novavax at $1.45 a share.
Ocera Therapeutics ({= OCRX=}) surged over 20% in after-hours trading after it said there were no serious safety issues at any dose level in its OCR-002 drug in a Phase 2a study to treat acute liver failure. The Total Investment & Insurance Solutions

MARKET COMMENTS

Dec E-mini S&Ps (ESZ16 +0.34%) this morning are up +5.50 points (+0.26%) at a 1-1/2 week high. Wednesday's closes: S&P 500 +1.09%, Dow Jones +0.90%, Nasdaq +10.01%. The S&P 500 on Wednesday moved up to a 1-1/2 week high and closed higher on relief that the FOMC left interest rates unchanged and on carryover support from a +1.9% rally in Japanese stocks after the BOJ pledged to keep its monetary base growing until after inflation exceeds its 2% target. There was also strength in energy-producer stocks after crude oil prices climbed +2.93%.
Dec 10-year T-notes (ZNZ16 +0.14%) this morning are up +6.5 ticks at a 1-1/2 week high. Wednesday's closes: TYZ6 +3.00, FVZ6 -0.25. Dec 10-year T-notes on Wednesday closed higher on relief that the FOMC left rates unchanged and on the FOMC's cut in its U.S. 2016 GDP estimate to 1.8% from 2.0% and the cut in its 2016 PCE price index estimate to 1.3% from 1.4%.

The dollar index (DXY00 -0.47%) this morning is down -0.440 (-0.46%). EUR/USD (^EURUSD) is up +0.0043 (+0.38%). USD/JPY (^USDJPY) is up +0.41 (+0.41%). Wednesday's closes: Dollar index -0.359 (-0.37%), EUR/USD +0.0038 (+0.34%), USD/JPY -1.38 (-1.36%). The dollar index on Wednesday closed lower on the Fed's decision to leave rates unchanged. In addition, there was strength in the yen as USD/JPY tumbled to a 3-week low after the BOJ refrained from expanding stimulus measures at its policy meeting.


Nov WTI crude oil (CLX16 +1.06%) this morning is up +44 cents (+0.97%) at a 1-week high and Nov gasoline (RBX16 +0.43%) is up +0.0077 (+0.56%). Wednesday's closes: Nov crude +1.29 (+2.93%), Nov gasoline +0.0401 (+3.03%). Nov crude and gasoline on Wednesday closed higher on the unexpected -6.2 million bbl drawdown in EIA crude inventories to a 7-month low (vs expectations for a +3.25 million bbl build) and the -3.2 million bbl decline in EIA gasoline stockpiles to an 8-1/2 month low (vs expectations of -1.4 million bbl).The Total Investment & Insurance Solutions

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