Contact Your Financial Adviser Money Making MC
6
February 2017
OVERNIGHT MARKETS AND NEWS
Mar E-mini S&Ps (ESH17
-0.04%) are up +0.01% on positive carry-over from Friday's employment data that
showed U.S. employers added the most jobs in four months. European stocks are
down -0.19%, led by losses in automakers, after Bank of America-Merrill Lynch
downgraded the sector to underweight.
Another negative for
European equities is political risks from France where French presidential
candidate Marine Le Pen unveiled her plans to take France out of the EU should
she be elected in April. Losses in European stocks were limited after German
Dec factory orders posted their largest year-on-year increase in over 5 years.
Asian stocks settled mostly
higher: Japan +0.31%, Hong Kong +0.95%, China +0.54%, Taiwan +0.87%, Australia
-0.11%, Singapore +0.49%, South Korea +0.24%, India +0.70%. The Total
Investment & Insurance Solutions
The dollar index (DXY00
+0.14%) is up +0.14%. EUR/USD (^EURUSD) is down -0.42%. USD/JPY (^USDJPY) is
down -0.12%.
Mar 10-year T-note prices
(ZNH17 +0.31%) are up +12 ticks as they garner support form a rally in 10-year
German bunds which rallied to a 1-1/2 week high.
Eurozone Feb Sentix
investor confidence fell -0.8 to 17.4, stronger than expectations of -1.4 to
16.8.
German Dec factory orders
rose +8.1% y/y, stronger than expectations of +4.2% y/y and the largest
year-on-year increase in 5-1/3 years.
U.S. STOCK PREVIEW
Key U.S. news today
includes: (1) USDA weekly grain export inspections, (2) Philadelphia Fed
President Patrick Harker (voter) speaks at a payment conference in San Diego.
Notable S&P 500
earnings reports today include: Tyson Foods (consensus $1.27), Lowes (0.63),
Newell Brands (0.80), Sysco (0.54), Hasbro (1.28), Twenty-First Century Fox
(0.49), FMC (0.88), Tesoro (-0.14), Macerich 1.16).
U.S. IPO's scheduled to price
today: none.
Equity conferences: Credit
Suisse Financial Services Forum on Tue-Wed, Cowen Aerospace/Defense &
Industrials Conference on Wed-Thu.
OVERNIGHT U.S. STOCK MOVERS
American Airlines Group
(AAL +0.43%) was upgraded to 'Market Perform' from 'Underperform' at Bernstein
with a price target of $43.
Delta Air Lines (DAL
+0.91%) was upgraded to 'Outperform' from 'Market Perform' at Bernstein with a
price target of $61.
FedEx (FDX +1.95%) was
upgraded to 'Outperform' from 'Market Perform' at Raymond James.
AutoNation (AN -3.86%) was
downgraded to 'Hold' from 'Buy' at Evercore ISI.
Walgreens Boots Alliance
(WBA -0.15%) was upgraded to 'Overweight' from 'Neutral' at Atlantic Equities
with a 12-month target price of $95.
CVS Health Corp. (CVS
+0.88%) was downgraded to 'Neutral' from 'Overweight' at Atlantic Equities with
a 12-month target price of $84.
Barracuda Networks (CUDA
+2.54%) was rated a new 'Buy' at Needham with a price target of $28.
Nvidia (NVDA -0.88%) was
downgraded to 'Neutral' from 'Buy' at Roth Capital
Parexel International (PRXL
-1.44%) was downgraded to 'Neutral' from 'Outperform' at Credit Suisse with a
target price of $65.
CBS (CBS +0.02%) was
upgraded to 'Overweight' from 'Neutral' at Atlantic Equities with a price
target of $78.
U.S. Steel (X -3.07%) was
upgraded to 'Buy' from 'Hold' at Argus with a price target of $39.
Lone Star boosted its stake
in Edgewater Technology (EDGW -2.90%) to 6.2% from 1.4%.
Credit Acceptance Corp.
(CACC +2.01%) slipped 2% in after-hours trading after the company received FTC
civil investigative demand seeking information on car dealers using GPS Starter
Interrupters on consumer vehicles.
Atwood Oceanics (ATW
+4.37%) lost 1% in after-hours trading after it reported Q1 revenue of $157.6
million, below consensus of $159.4 million.
MARKET COMMENTS
Mar E-mini S&Ps (ESH17
-0.04%) this morning are little changed, up +0.25 of a point (+0.01%). Friday's
closes: S&P 500 +0.73%, Dow Jones +0.94%, Nasdaq +0.27%. The S&P 500 on
Friday closed higher on the +227,000 increase in U.S. Jan non-farm payrolls
(stronger than expectations of +180,000), and the +1.3% increase in U.S. Dec
factory orders (stronger than expectations of +0.5%).
A negative factor was the
+2.5% y/y increase in U.S. Jan average hourly earnings, weaker than
expectations of +2.7% y/y.
Mar 10-year T-notes (ZNH17
+0.31%) this morning are up +12 ticks. Friday's closes:
TYH7 -3.00, FVH7 -1.75. Mar
10-year T-notes on Friday fell back from a 1-1/2 week high and closed lower on
the larger-than-expected increase in U.S. Jan non-farm payrolls and
stronger-than-expected U.S.
Dec factory orders reports
that bolstered the case for additional Fed rate hikes. T-notes were boosted by
increased safe-haven demand with the fairly sharp rally in stocks. T-notes
found some underlying support from the Jan hourly earnings report of +2.5% y/y,
weaker than expectations of +2.7% y/y. The Total Investment & Insurance
Solutions
The dollar index (DXY00 +0.14%) this morning is up +0.142 (+0.14%). EUR/USD (^EURUSD) is
down -0.0045 (-0.42%). USD/JPY (^USDJPY) is
down -0.13 (-0.12%). Friday's closes: Dollar
index +0.078 (+0.08%), EUR/USD +0.0024 (+0.22%), USD/JPY -0.19 (-0.17%). The dollar index on Friday
closed higher on the stronger-than-expected U.S. payroll and factory orders
reports and the increase in U.S. T-note yields, which improved the dollar's
interest rate differentials. The Total
Investment & Insurance Solutions
Mar WTI crude oil prices (CLH17 +0.22%) this morning are up +17 cents (+0.32%) and Mar gasoline (RBH17 +0.83%) is +0.0074 (+0.48%). Friday's closes: Mar crude +0.29 (+0.54%),
Mar gasoline +0.0208 (+1.36%). Mar crude oil and gasoline on Friday closed
higher on reduced output by OPEC as OPEC Jan crude production fell -840,000 bpd to 32.2 million bpd, a
14-month low. Crude oil prices were also boosted by increased geopolitical
tensions after the U.S. imposed new sanctions on Iran for conducting ballistic
missile tests. Crude oil prices were undercut by the Baker Hughes report that
U.S. active oil rigs in the week ended Feb 3 rose by 17 rigs to a 1-1/4 year
high of 583 rigs.The Total Investment
& Insurance Solutions
No comments:
Post a Comment