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6
October 2016
OVERNIGHT MARKETS AND NEWS
Dec E-mini S&Ps (ESZ16 -0.16%) are down -0.21% and European stocks are down -0.24% as speculation mounts that the Fed
will raise interest rates this year. Friday's monthly U.S. payroll report will
be scoured for clues as to the timing of a Fed rate hike after Richmond Fed
President Lacker said Wednesday night that a strong U.S. jobs report is going
to bolster the case for an interest rate increase sooner rather than later.
Mining stocks are raw-material producing companies are leading the overall
market lower as the price of copper (HGZ16 -0.46%) falls -0.46% to a 3-week low. Asian stocks settled
mostly higher: Japan +0.47%, Hong Kong +0.69%, China closed for holiday, Taiwan
+0.13%, Australia +0.55%, Singapore +0.12%, South Korea +0.83%, India -0.41%. Japan's Nikkei Stock Index
climbed to a 4-week high after a rally in USD/JPY to a 1-month high fueled
gains in exporting companies.
The dollar index (DXY00 +0.23%) is up +0.20%. EUR/USD (^EURUSD)
is down -0.16%. USD/JPY (^USDJPY)
is up +0.14% at a 1-month high.
Dec 10-year T-note
prices (ZNZ16 +0.05%) are up +3 ticks.
Richmond Fed President
Lacker said a strong U.S. jobs report is going to bolster the case for an
interest rate increase sooner rather than later, and that "every FOMC
meeting is a live meeting" to raise interest rates. The Total Investment & Insurance Solutions
Key U.S. news today
includes: (1) Sep Challenger job cuts (Aug -21.8% y/y), (2) weekly initial unemployment
claims (expected +2,000 to 256,000, previous +3,000 to 254,000) and continuing
claims (expected +19,000 to 2.081 million, previous -46,000 to 2.062 million), (3) G-20 finance ministers and central bankers
meet in Washington D.C., and (4) USDA weekly Export Sales.
Russell 1000 companies
that report earnings today: none.
U.S. IPO's scheduled to
price today: none.
Equity conferences
during the remainder of this week include: ACI European Biomass to Power
Conference on Wed, Seaport Global Securities Dallas Energy Day on Thu. The Total Investment & Insurance
Solutions
Twitter (TWTR +5.74%) tumbled 13% in pre-market
trading after Alphabet said it is not interested in acquiring the company.
Trade Desk (TTD +3.99%) was rated a new 'Buy' at
Cantor Fitzgerald with a 12-month target price of $30.
Raytheon (RTN -0.03%) was rated a new 'Outperform'
at Baird with a 12-month target price of $170.
Walgreens Boots Alliance
(WBA +0.34%) was rated a new 'Buy' at UBS
with a price target of $94.
Yum! Brands (YUM -1.84%) slid over 2% in pre-market
trading after it reported Q3 adjusted EPS of $1.09, less than consensus of
$1.10, and said Q3 China comparable sales fell -1%, weaker than expectations of
+4.1%.
Athenahealth (ATHN +0.58%) was rated a new 'Buy' at UBS
with a price target of $147.
Zumiez (ZUMZ -1.03%) rallied over 10% in
after-hours trading after it said Sep comparable sales were up +6.3%, stronger
than expectations of down-0.4%, and after it raised its view on Q3 EPS to 29
cents-30 cents from a prior view
of 21 cents-26 cents.
Resources Connection (RECN +1.35%) fell 3% in after-hours trading
after it reported Q1 EPS of 15 cents, below consensus of 16 cents.
JD.com (JD +1.60%) jumped nearly 7% in after-hours
trading after Wal-Mart raised its stake in the company to 10.8% from 5.9%.
Alnylam Pharmaceuticals
(ALNY +2.52%) plunged nearly 40% in
after-hours trading after the company said it will discontinue development of
its reusiran saying the benefit-risk profile no longer supported continued
dosing.
Scynexis (SCYX +6.90%) surged over 15% in after-hours
trading after it reported full results from Phase 2 studies on patients using
its SCY-078 for candida
infections.
Idera Pharmaceuticals (IDRA +2.35%) slumped over 10% in
after-hours trading after offering up to $50 million in shares of common stock. The Total Investment & Insurance
Solutions
Dec E-mini S&Ps (ESZ16 -0.16%) this morning are down -4.50 points (-0.21%). Wednesday's closes:
S&P 500 +0.43%, Dow Jones +0.62%, Nasdaq +0.38%. The S&P 500 on
Wednesday closed higher on the +5.7 point increase in the U.S. Sep ISM
non-manufacturing PMI to 57.1, stronger than expectations of +1.6 to 53.0 and
the fastest pace of expansion in 11 months. The stock market was also
encouraged by the unexpected +0.2% increase in U.S. Aug factory orders,
stronger than expectations of -0.2%.
Energy producer stocks rallied after the price of crude oil climbed to a 3-1/4
month high.
Dec 10-year T-notes (ZNZ16 +0.05%) this morning are up +3 ticks.
Wednesday's closes: TYZ6 -9.00,
FVZ6 -5.25. Dec 10-year T-notes on Wednesday sold
off to a 3-week low and closed lower on Chicago Fed President Evans' comment
that he expects a Fed rate hike before the end of the year. Other negative
factors including the stronger-than-expected Sep ISM non-manufacturing index
and increased inflation expectations after the 10-year T-note breakeven
inflation rate rose to a 4-1/2 month high.
The dollar index (DXY00 +0.23%) this morning is up +0.197
(+0.20%). EUR/USD (^EURUSD) is down -0.0018 (-0.16%). USD/JPY (^USDJPY)
is up +0.14 (+0.14%). Wednesday's closes: Dollar index -0.044 (-0.05%), EUR/USD +0.0001 (+0.01%),
USD/JPY +0.60 (+0.58%). The dollar index on Wednesday closed slightly lower on
the smaller-than-expected increase in Sep ADP employment and on strength in the
currencies of the crude-exporting countries of Russia and Canada after the
price of crude oil climbed to a 3-1/4 month high. The dollar found support on
Chicago Fed President Evans' comment that he expects the Fed to increase
interest rates once by the end of the year.
Nov WTI crude oil (CLX16 -0.14%) this morning is down -6 cents
(-0.12%) and Nov gasoline (RBX16 -1.43%)
is down -0.0218 (-1.46%). Wednesday's closes: Nov
crude +1.01 (+2.07%), Nov gasoline -0.0180 (-1.20%). Nov crude oil and gasoline
on Wednesday settled mixed with Nov crude at a 3-1/4 month high. Crude oil
prices were boosted by the unexpected decline in EIA crude inventories for a
fifth week, down -2.98 million bbl to an 8-month low (versus
expectations were for a build of +1.5 million bbl) and the -0.4% decline in U.S. crude production.
There was also concern that Hurricane Matthew may disrupt crude supplies on the
East Coast and cause a further drawdown in U.S. crude supplies in the weeks
ahead. Nov gasoline retreated from a 1-1/2 month high and closed lower on
speculation that Hurricane Matthew will cause gasoline demand to plunge as
businesses close and economic activity declines as the hurricane makes its way
up the U.S. East Coast.The Total
Investment & Insurance Solutions
