Wednesday, October 16th, 2013View Older Reports
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OVERNIGHT MARKETS AND NEWS
December E-mini S&Ps (ESZ13 +0.37%) this morning are up +0.34% after Democratic Senator Reid and Republican Senator McConnell reopened stalled budget negotiations last night and said they are "optimistic that an agreement is within reach." European stocks are down -0.39% on weaker-than-expected earnings results from Danone, which fell -3.9% after the company said Q3 revenue rose +4.2% y/y, weaker than expectations of a +4.8% y/y increase, and a -6.2% slide in LVMH Moet Hennessy Louis Vuitton SA, after the company reported Q3 revenue of 7.02 billion euros, lower than expectations of 7.24 billion euros. Asian stocks closed mixed: Japan +0.18%, Hong Kong -0.46%, China -1.87%, Taiwan -0.43%, Australia +0.07%, Singapore +0.28%, South Korea -0.29%. China's Shanghai Stock Index closed down -1.87% after JPMorgan Chase cut its recommendation on Chinese stocks to "Underweight," citing an economic slowdown and potential policy disappointment from a Communist Party meeting next month. Commodity prices are mostly higher. Nov crude oil (CLX13 +0.05%) is up +0.06% and Nov gasoline (RBX13 +0.20%) is up +0.18%. Dec gold (GCZ13 +0.57%) is up +0.78% and Dec copper (HGZ13 -1.07%) is down -1.09%. Agricultural and livestock prices are mixed. The dollar index (DXY00 -0.22%) is down -0.16%. EUR/USD (^EURUSD) is up +0.18% and USD/JPY (^USDJPY) is up +0.18%. December T-note prices (ZNZ13 -0.04%) are unchanged.
UK Sep jobless claims fell -41,700, more than expectations of -25,000 and the biggest decline in 16 years. The Sep claimant count rate unexpectedly fell -0.2 to 4.0%, the lowest in 4-3/4 years as jobless claims have now fallen for eleven consecutive months.
UK Aug employment climbed +155,000 in the 3-months through Aug to a record 29.9 million, better than expectations of an increase of +125,000. The Aug ILO unemployment rate was 7.7% in the 3-months through Aug, right on expectations.
U.S. STOCK PREVIEW
The markets today will be hoping for a CR and debt ceiling agreement from the Senate and that House Speaker Boehner will be willing to put the Senate plan to a vote on the House floor. There are 22 of the S&P 500 companies that report earnings today with notable reports including Abbott Labs (consensus $0.51), Northern Trust (0.77), US Bancorp (0.76), Mattel (1.11), Bank of New York Mellon (0.58), Blackrock (3.88), Bank of America (0.21), Pepsico (1.17), eBay (0.63), American Express (1.22), IBM (3.96).
Equity conferences during the remainder of this week include: 10/16/2013 on Wed; International Cash and Treasury Management Conference on Wed-Fri; Canaccord Genuity Global Resource Conference on Wed-Fri; Conference Board of Canada: Canada's North Summit 2013 on Wed; Bloomberg Oil & Gas Conference on Thu; Global Automotive Forum Annual Conference on Thu.
OVERNIGHT U.S. STOCK MOVERS
Reuters reported that Dallas Fed President Fisher said "reckless" U.S. fiscal policy will likely force the Fed to stand pat on monetary policy this month.
PNC Financial Services Group (PNC -0.64%) reported Q3 EPS of $1.79, well ahead of consensus of $1.62.
Pepsico (PEP -0.60%) reported Q3 EPS of $1.24, stronger than consensus of $1.17.
Bank of America (BAC -0.77%) reported Q3 EPS of 28 cents, better than consensus of 21 cents.
Mattel (MAT -0.93%) reported Q3 EPS of $1.16, stronger than consensus of $1.11.
Stanley Black & Decker (SWK -2.26%) reported Q3 EPS of $1.39, better than consensus of $1.38.
The WSJ reported that JPMorgan Chase (JPM -0.76%) has agreed to pay the Commodity Futures Trading Commission $100 million to settle charges related to the bank's failed London Whale trade.
CNBC reports that Twitter (TWTR) will be listed on the NYSE.
Gabelli reported a 6.16% stake in Lennar (LEN -2.83%) .
CSX (CSX +0.31%) reported Q3 EPS of 46 cents, better than consensus of 43 cents.
Yahoo (YHOO -1.82%) rallied 2% in after-hours trading after it reported Q3 EPS of 34 cents, better than consensus of 33 cents.
Intel (INTC -0.26%) fell 1.5% in after-hours trading after it reported Q3 EPS of 58 cents, better than consensus of 53 cents, but then said manufacturing snags will delay its new Broadwell line of processors.
Dec E-mini S&Ps (ESZ13 +0.37%) this morning are up +5.75 points (+0.34%). The S&P 500 index on Tuesday fell back from a 3-week high and closed lower after the House attempted to circumvent the Senate's emerging bipartisan agreement. Another negative for stocks was the the weaker-than-expected Oct Empire manufacturing index of -4.77 to a 5-month low of 1.52. Closes: S&P 500 -0.72%, Dow Jones -0.71%, Nasdaq 100 -0.87%.
Dec 10-year T-notes (ZNZ13 -0.04%) this morning are unchanged. Dec 10-year T-note prices on Tuesday closed little changed. Dec T-notes had fallen to a 3-week low after Senate leaders said there was progress on raising the debt limit. T-notes recovered and closed little changed, however, after the Oct Empire manufacturing index unexpectedly fell to a 5-month low. Closes: TYZ3 -2, FVZ3 +2.50.
The dollar index (DXY00 -0.22%) this morning is down -0.131 (-0.16%). EUR/USD (^EURUSD) is up +0.0024 (+0.18%) and USD/JPY (^USDJPY) is up +0.18 (+0.18%). The dollar index on Tuesday jumped to a 3-week high and closed higher. Prices fell back from their best levels as U.S. lawmakers continued to struggle to reach an agreement on a CR and a hike in the debt ceiling. EUR/USD fell to a 2-week low after the Oct ZEW survey current situation unexpectedly fell -0.9 to 29.7, weaker than expectations of +0.7 to 31.3. Closes: Dollar index +0.219 (+0.27%), EUR/USD -0.00374 (-0.28%), USD/JPY -0.398 (-0.40%).
Nov WTI crude oil (CLX13 +0.05%) this morning is up +6 cents (+0.06%) and Nov gasoline (RBX13 +0.20%) is up +0.0048 (+0.18%). Nov crude oil and gasoline prices on Tuesday closed lower on bearish factors that included (1) a rally in the dollar index to a 3-week high, (2) the unexpected decline in the Oct Empire manufacturing index to a 5-month low, and (3) reduced geopolitical risks as Iran entered talks in Geneva on its nuclear program in an attempt to have the international sanctions on its oil exports lifted. Closes: CLX3 -1.20 (-1.17%), RBX3 -0.0070 (-0.26%).
GLOBAL EVENT CALENDAR10/16/2013
|US||0700 ET||Weekly MBA mortgage applications, previous +1.3% with purchase sub-index -0.7% and refi sub-index +2.5%.|
|1330 ET||Cleveland Fed President Sandra Pianalto speaks on Housing in the National Economy at the Northeast Ohio Real Estate Convention.|
|1400 ET||Fed releases Beige Book.|
|1630 ET||API weekly U.S. oil statistics.|
|1845 ET||Dallas Fed President Richard Fisher speaks at an Intelligence Squared U.S. Debate on Break Up the Big Banks.|
|EUR||0200 ET||Eurozone Sep new car registrations, Aug -5.0%.|
|0500 ET||Eurozone Sep CPI expected +0.5% m/m, Aug +0.1% m/m. Revised Eurozone Sep CPI, previous +1.1% y/y and core +1.0% y/y.|
|UK||0430 ET||UK Sep jobless claims change expected -25,000, Aug -32,600. Sep claimant count rate expected -0.1 to 4.1%, Aug 4.2%.|
|0430 ET||UK Aug avg weekly earnings expected +1.0% 3-mo/year-over-year, July +1.1% 3-mo/year-over-year. Aug avg weekly earnings ex-bonus expected +1.0% 3-mo/year-over-year, July +1.0% 3-mo/year-over-year.|
|0430 ET||UK Aug ILO unemployment rate expected 7.7% 3-months, July 7.7% 3-months.|
U.S. STOCK CALENDAR10/16/2013
|Company Name||Ticker||Time||Event Description||Period||Estimate|
|Abbott Laboratories||ABT US||Bef-mkt||Q3 2013 Earnings Release||Q3 2013||0.514|
|Comerica Inc||CMA US||Bef-mkt||Q3 2013 Earnings Release||Q3 2013||0.708|
|PNC Financial Services Group Inc/The||PNC US||Bef-mkt||Q3 2013 Earnings Release||Q3 2013||1.616|
|Northern Trust Corp||NTRS US||Bef-mkt||Q3 2013 Earnings Release||Q3 2013||0.767|
|KeyCorp||KEY US||Bef-mkt||Q3 2013 Earnings Release||Q3 2013||0.221|
|US Bancorp/MN||USB US||Bef-mkt||Q3 2013 Earnings Release||Q3 2013||0.755|
|Mattel Inc||MAT US||6:00||Q3 2013 Earnings Release||Q3 2013||1.114|
|Stanley Black & Decker Inc||SWK US||6:00||Q3 2013 Earnings Release||Q3 2013||1.378|
|Bank of New York Mellon Corp/The||BK US||6:30||Q3 2013 Earnings Release||Q3 2013||0.578|
|BlackRock Inc||BLK US||6:30||Q3 2013 Earnings Release||Q3 2013||3.882|
|Bank of America Corp||BAC US||7:00||Q3 2013 Earnings Release||Q3 2013||0.205|
|PepsiCo Inc||PEP US||7:00||Q3 2013 Earnings Release||Q3 2013||1.17|
|St Jude Medical Inc||STJ US||7:30||Q3 2013 Earnings Release||Q3 2013||0.895|
|Bank of New York Mellon Corp/The||BK US||8:00||Q3 2013 Earnings Call||Q3 2013|
|Comerica Inc||CMA US||8:00||Q3 2013 Earnings Call||Q3 2013|
|WW Grainger Inc||GWW US||8:00||Q3 2013 Earnings Release||Q3 2013||3.036|
|WW Grainger Inc||GWW US||8:00||Q3 2013 Earnings Call||Q3 2013|
|PepsiCo Inc||PEP US||8:00||Q3 2013 Earnings Call||Q3 2013|
|Stanley Black & Decker Inc||SWK US||8:00||Q3 2013 Earnings Call||Q3 2013|
|St Jude Medical Inc||STJ US||8:00||Q3 2013 Earnings Call||Q3 2013|
|CSX Corp||CSX US||8:30||Q3 2013 Earnings Call||Q3 2013|
|L Brands Inc||LTD US||8:30||Investor Meeting||Y 2013|
|Mattel Inc||MAT US||8:30||Q3 2013 Earnings Call||Q3 2013|
|Bank of America Corp||BAC US||8:30||Q3 2013 Earnings Call||Q3 2013|
|BlackRock Inc||BLK US||8:30||Q3 2013 Earnings Call||Q3 2013|
|Mallinckrodt PLC||MNK US||8:30||FY 2014 Guidance Call||Y 2014|
|Abbott Laboratories||ABT US||9:00||Q3 2013 Earnings Call||Q3 2013|
|KeyCorp||KEY US||9:00||Q3 2013 Earnings Call||Q3 2013|
|US Bancorp/MN||USB US||9:30||Q3 2013 Earnings Call||Q3 2013|
|PNC Financial Services Group Inc/The||PNC US||10:00||Q3 2013 Earnings Call||Q3 2013|
|Paychex Inc||PAYX US||10:00||Annual General Meeting||Y 2013|
|Linear Technology Corp||LLTC US||11:30||Q1 2014 Earnings Call||Q1 2014|
|Northern Trust Corp||NTRS US||12:00||Q3 2013 Earnings Call||Q3 2013|
|eBay Inc||EBAY US||16:00||Q3 2013 Earnings Release||Q3 2013||0.627|
|Xilinx Inc||XLNX US||16:20||Q2 2014 Earnings Release||Q2 2014||0.524|
|International Business Machines Corp||IBM US||16:30||Q3 2013 Earnings Call||Q3 2013|
|Kinder Morgan Inc/DE||KMI US||16:30||Q3 2013 Earnings Call||Q3 2013|
|American Express Co||AXP US||17:00||Q3 2013 Earnings Call||Q3 2013|
|Xilinx Inc||XLNX US||17:00||Q2 2014 Earnings Call||Q2 2014|
|SanDisk Corp||SNDK US||17:00||Q3 2013 Earnings Call||Q3 2013|
|eBay Inc||EBAY US||17:00||Q3 2013 Earnings Call||Q3 2013|
|American Express Co||AXP US||Aft-mkt||Q3 2013 Earnings Release||Q3 2013||1.221|
|Crown Holdings Inc||CCK US||Aft-mkt||Q3 2013 Earnings Release||Q3 2013||1.082|
|International Business Machines Corp||IBM US||Aft-mkt||Q3 2013 Earnings Release||Q3 2013||3.956|
|Albemarle Corp||ALB US||Aft-mkt||Q3 2013 Earnings Release||Q3 2013||1.072|
|SanDisk Corp||SNDK US||Aft-mkt||Q3 2013 Earnings Release||Q3 2013||1.327|
|Steel Dynamics Inc||STLD US||Aft-mkt||Q3 2013 Earnings Release||Q3 2013||0.242|
|United Rentals Inc||URI US||Aft-mkt||Q3 2013 Earnings Release||Q3 2013||1.585|
|East West Bancorp Inc||EWBC US||Aft-mkt||Q3 2013 Earnings Release||Q3 2013||0.538|
|SLM Corp||SLM US||Aft-mkt||Q3 2013 Earnings Release||Q3 2013||0.591|
|Kinder Morgan Inc/DE||KMI US||Aft-mkt||Q3 2013 Earnings Release||Q3 2013||0.305|
|Questar Corp||STR US||Roadshow -St. Louis||Y 2013|