Thursday, July 24th, 2014View Older Reports
Everything you need to know about the markets in one free daily newsletter.
E-mail: Submit
You will also receive a free subscription to the Barchart family of newsletters.
OVERNIGHT MARKETS AND NEWS
Sep E-mini S&Ps (ESU14 +0.21%) this morning are slightly higher by +0.13% on support from positive Chinese and Eurozone PMI reports and a +0.75% rally in the Euro Stoxx 50 index. The Russian Micex index this morning is slightly higher by +0.03% after the +0.4% rally on Wednesday and +1.55% rally on Tuesday. Asian stocks today closed higher nearly across the board: Japan -0.29%, Hong Kong +0.71%, China +1.78%, Taiwan +0.30%, Australia +0.20%, Singapore +0.39%, South Korea +0.06%, India +0.48%, and Turkey +1.07%. Sep 10-year T-notes (ZNU14 -0.12%) this morning are down -5.5 ticks due to higher global stocks and the strong Chinese and European PMI reports. The dollar index (DXY00 -0.10%) is slightly lower by -0.04% while EUR/USD (^EURUSD) is up +0.07% and USD/JPY (^USDJPY) is up +0.16%.
Commodity prices are moderately higher today by +0.32%. Sep WTI crude oil (CLU14 -0.19%) is down -0.35% and Sep gasoline (RBU14 +0.07%) is down -0.21%. Aug gold (GCQ14 -0.40%) is down -0.38% and Sep silver (SIU14 -0.36%) is down -0.38%, but Sep copper (HGU14 +1.47%) is up +1.25%. Grain, cattle and softs prices are trading higher.
The HSBC Chinese manufacturing PMI was reported last night at +1.3 points to a new 1-1/2 year high of 52.0, stronger than market expectations of +0.3 to 51.0. The Chinese manufacturing PMI has now risen very sharply by a total of +4.0 points in the past four months from the 1-year low of 48.0 posted in March.
Today's July Markit/BME German manufacturing PMI rose by +0.9 to 52.9, which was substantially stronger than market expectations of -0.1 to 51.9. The German services PMI rose by +2.0 points to 56.6 from 54.6 in May, which was substantially stronger than market expectations of -0.1 to 54.5. The July Markit Eurozone manufacturing PMI rose by +0.1 to 51.9 from 51.8 in June, which was slightly stronger than market expectations of -0.1 to 51.7. The Markit Eurozone July services PMI rose by +1.6 points to 54.5 from 52.8 in June, which was substantially stronger than market expectations of -0.1 to 52.7. Eurozone business confidence has clearly improved since the ECB in early June launched its package of easing measures.
UK June retail sales including autos rose by +0.1% m/m and +3.6% y/y, which was weaker than market expectations of +0.3% m/m and +3.9% y/y. UK May retail sales fell by -0.5% m/m.
New Zealand's central bank earlier today raised its policy rate by 25 bp to 3.50% but said it is now likely to pause after four rate hikes this year.
EU officials today will start considering a basket of possible new sanctions on Russia. Final decisions are not expected until next week's EU summit on Wednesday (Aug 30).
U.S. STOCK PREVIEW
Today's weekly initial unemployment claims report is expected to show a small increase of +5,000 to 307,000, more than reversing last week's decline of -3,000 to 302,000. Meanwhile, continuing claims are expected to show a +3,000 increase to 2.510 million after last week's sharp -79,000 decline to 2.507 million. Today's June new home sales report is expected to fall by -5.8% to 475,000, reversing about one-third of the +18.6% surge to a 6-year high of 504,000 seen in May.
There are 50 of the S&P 500 companies that report earnings today with notable reports including: Amazon.com (consensus $-0.15), Caterpillar (1.52), Visa (2.10), Coca-Cola Enterprises (0.88), Starbucks (0.66), PulteGroup (0.25), T Rowe Price (1.12), Boston Scientific (0.19), GM (0.59), Ford (0.36), Raytheon (1.59), NASDAQ (0.68). Equity conferences during the remainder of this week include: Wells Fargo Small Cell Symposium on Thu.
Sep E-mini S&Ps this morning are slightly higher by +2.50 points (+0.13%) on positive Chinese and Eurozone PMI reports. The S&P 500 index on Wednesday rallied to a new record high and closed mildly higher: S&P 500 +0.18%, Dow Jones -0.16%, Nasdaq +0.40%. Bullish factors included (1) general optimism about Q2 earnings, (2) strength in tech stocks led by Apple on anticipation of a sales surge with the release of new products, and (3) the lack of serious sanctions from Europe against Russia in response to the downing of the Malaysian plane. A bearish factor was the IMF's cut in its U.S. GDP forecast for 2014 to +1.7% from June's +2.0% forecast due to the -2.9% decline in Q1 GDP growth.
OVERNIGHT U.S. STOCK MOVERS
- There are 27 of the S&P 500 companies that have already reported earnings this morning. Notable winners include Ford (F -0.22%) ($0.40 vs the consensus of $0.36), Caterpillar (CAT -1.53%) (1.69 vs 1.52), Nasdaq (NDAQ -0.72%) (0.70 vs 0.68), Coca-Cola Enteprises (CCE +0.66%) (0.90 vs 0.88).
- GM (GM -0.93%) reported Q2 EPS ex-items of 28 cents, slightly below the consensus of 59 cents.
- Amazon (AMZN -0.75%), Visa (V -0.03%), Starbucks (SBUX +0.51%) and others report after the close today.
- Facebook (FB +2.92%) in after-hours trading yesterday reversed initial losses and rallied 5% following its Q2 earnings call. The rally in Facebook helped boost other social media stocks such as Twitter (TWTR +0.27%), LinkedIn (LNKD +3.79%), and Yelp (YELP +0.19%).
- AT&T (T -0.17%) fell 1% in after-hours trading after reporting earings.
- Angie's List (ANGI -3.97%) and Tripadvisor (TRIP +3.06%) plunged more than 10% late yesterday after their respective earnings reports.
- Cliffs Natural (CLF +2.18%) fell more than 1% late yesterday after a disappointing earnings report.
- Teradyne (TER -2.92%) fell 4% late yesterday after a disappointing earnings report.
MARKET COMMENTS
Sep 10-year T-notes this morning are down -5.5 ticks due to strong Chinese and Eurozone PMI reports and today's continued rally in global stocks. Sep 10-year T-note futures prices on Wednesday closed unchanged with some continued underlying support from safe-haven demand tied to the Ukraine situation. Closes: TYU4 unch, FVU4 +1.75.
The dollar is slightly lower by -0.04% while EUR/USD is up +0.07% and USD/JPY is up +0.16%. The dollar index on Wednesday closed little changed, consolidating Tuesday's modest gains. EUR/USD continues to see weakness on concern that the Ukraine-Russia crisis may yet undercut the European economy. Closes: Dollar index +0.11 (+0.01%), EUR/USD -0.0001 (-0.01), USD/JPY +0.02 (+0.02%).
Sep WTI crude oil this morning is down -0.36 (-0.35%) and Sep gasoline is down -0.0061 (-0.21%). Aug crude and gasoline prices on Wednesday closed mixed: CLU4 +0.62 (+0.61%), RBU4 -0.0078 (-0.27%). Crude oil saw some support from the weekly EIA report, which showed a sharp -3.97 million bbl drop in U.S. crude oil inventories and a -1.45 million bbl drop in Cushing crude oil inventories. Meanwhile, gasoline was undercut by the EIA's report of a sharp +3.38 million rise in gasoline inventories.
GLOBAL EVENT CALENDAR07/24/2014
| US | 0830 ET | Weekly initial unemployment claims expected +5,000 to 307,000, previous -3,000 to 302,000. Weekly continuing claims expected +3,000 to 2.510 million, previous -79,000 to 2.507 million. |
| 0830 ET | USDA weekly Export Sales. | |
| 0945 ET | Preliminary Jul Markit manufacturing PMI expected +0.2 to 57.5, Jun +0.9 to 57.3. | |
| 1000 ET | Jun new home sales expected -5.8% to 475,000, May +18.6% to 504,000. | |
| 1100 ET | Jul Kansas City Fed manufacturing index expected unch at 6, June 6. | |
| 1100 ET | Treasury announces amount of 2-year T-notes (previous $30 billion), 2-year floating-rate notes (previous $13 billion), 5-year T-notes (previous $35 billion) and 7-year T-notes (previous $29 billion) to be auctioned Jul 28-30. | |
| 1300 ET | Treasury auctions $15 billion 10-year TIPS. | |
| GER | 0330 ET | German Jul Markit/BME manufacturing PMI expected -0.1 to 51.9, Jun -0.3 to 52.0. Jul Markit services PMI expected -0.1 to 54.5, Jun -1.4 to 54.6. |
| EUR | 0400 ET | Eurozone Jul Markit composite PMI expected unch at 52.8, -0.7 to 52.8. |
| UK | 0430 ET | UK Jun retail sales ex autos expected +0.3% m/m and +4.6% y/y, May -0.5% m/m and +4.7% y/y. Jun retail sales including autos expected +0.3% m/m and +3.9% y/y, May -0.5% m/m and +3.9% y/y. |
| 1901 ET | UK Jul Hometrack weighted overall average price, Jun +0.3% m/m and +6.0% y/y. | |
| JPN | 1930 ET | Japan Jun national CPI expected +3.5% y/y, May +3.7% y/y. Jun national CPI ex-fresh food expected +3.3% y/y, May +3.4% y/y. Jun national CPI ex food & energy expected +2.3% y/y, May +2.2% y/y. |
| 1930 ET | Tokyo Jul CPI expected +2.8% y/y, Jun +3.0% y/y. Tokyo Jul CPI ex-fresh food expected +2.7% y/y, Jun +2.8% y/y. Tokyo Jul CPI ex food & energy expected +2.0% y/y, Jun +2.0% y/y. | |
| 1950 ET | Japan Jun PPI services expected unch at +3.6% y/y. |
U.S. STOCK CALENDAR07/24/2014
| Company Name | Ticker | Time | Event Description | Period | Estimate |
|---|---|---|---|---|---|
| Airgas Inc | ARG US | Bef-mkt | Q1 2015 Earnings Release | Q1 2015 | 1.175 |
| Noble Energy Inc | NBL US | Bef-mkt | Q2 2014 Earnings Release | Q2 2014 | 0.785 |
| Nucor Corp | NUE US | Bef-mkt | Q2 2014 Earnings Release | Q2 2014 | 0.401 |
| Dr Pepper Snapple Group Inc | DPS US | Bef-mkt | Q2 2014 Earnings Release | Q2 2014 | 0.906 |
| Diamond Offshore Drilling Inc | DO US | Bef-mkt | Q2 2014 Earnings Release | Q2 2014 | 0.561 |
| PulteGroup Inc | PHM US | Bef-mkt | Q2 2014 Earnings Release | Q2 2014 | 0.254 |
| Precision Castparts Corp | PCP US | Bef-mkt | Q1 2015 Earnings Release | Q1 2015 | 3.354 |
| Bemis Co Inc | BMS US | Bef-mkt | Q2 2014 Earnings Release | Q2 2014 | 0.637 |
| T Rowe Price Group Inc | TROW US | Bef-mkt | Q2 2014 Earnings Release | Q2 2014 | 1.116 |
| Boston Scientific Corp | BSX US | Bef-mkt | Q2 2014 Earnings Release | Q2 2014 | 0.193 |
| Cabot Oil & Gas Corp | COG US | Bef-mkt | Q2 2014 Earnings Release | Q2 2014 | 0.25 |
| AmerisourceBergen Corp | ABC US | Bef-mkt | Q3 2014 Earnings Release | Q3 2014 | 0.922 |
| Wyndham Worldwide Corp | WYN US | Bef-mkt | Q2 2014 Earnings Release | Q2 2014 | 1.137 |
| DR Horton Inc | DHI US | Bef-mkt | Q3 2014 Earnings Release | Q3 2014 | 0.49 |
| Coca-Cola Enterprises Inc | CCE US | Bef-mkt | Q2 2014 Earnings Release | Q2 2014 | 0.884 |
| Quest Diagnostics Inc | DGX US | Bef-mkt | Q2 2014 Earnings Release | Q2 2014 | 1.06 |
| EQT Corp | EQT US | Bef-mkt | Q2 2014 Earnings Release | Q2 2014 | 0.853 |
| Hershey Co/The | HSY US | Bef-mkt | Q2 2014 Earnings Release | Q2 2014 | 0.757 |
| Sigma-Aldrich Corp | SIAL US | Bef-mkt | Q2 2014 Earnings Release | Q2 2014 | 1.104 |
| Celgene Corp | CELG US | Bef-mkt | Q2 2014 Earnings Release | Q2 2014 | 0.892 |
| General Motors Co | GM US | Bef-mkt | Q2 2014 Earnings Release | Q2 2014 | 0.586 |
| Starwood Hotels & Resorts Worldwide Inc | HOT US | 6:00 | Q2 2014 Earnings Release | Q2 2014 | 0.755 |
| Alexion Pharmaceuticals Inc | ALXN US | 6:30 | Q2 2014 Earnings Release | Q2 2014 | 1.069 |
| Southwest Airlines Co | LUV US | 6:30 | Q2 2014 Earnings Release | Q2 2014 | 0.608 |
| Ford Motor Co | F US | 6:30 | Q2 2014 Earnings Release | Q2 2014 | 0.357 |
| Eli Lilly & Co | LLY US | 6:30 | Q2 2014 Earnings Release | Q2 2014 | 0.652 |
| Zimmer Holdings Inc | ZMH US | 7:00 | Q2 2014 Earnings Release | Q2 2014 | 1.486 |
| Raytheon Co | RTN US | 7:00 | Q2 2014 Earnings Release | Q2 2014 | 1.59 |
| NASDAQ OMX Group Inc/The | NDAQ US | 7:00 | Q2 2014 Earnings Release | Q2 2014 | 0.681 |
| Under Armour Inc | UA US | 7:00 | Q2 2014 Earnings Release | Q2 2014 | 0.074 |
| 3M Co | MMM US | 7:30 | Q2 2014 Earnings Release | Q2 2014 | 1.908 |
| Bristol-Myers Squibb Co | BMY US | 7:30 | Q2 2014 Earnings Release | Q2 2014 | 0.445 |
| Caterpillar Inc | CAT US | 7:30 | Q2 2014 Earnings Release | Q2 2014 | 1.518 |
| Cameron International Corp | CAM US | 7:30 | Q2 2014 Earnings Release | Q2 2014 | 0.873 |
| FLIR Systems Inc | FLIR US | 7:30 | Q2 2014 Earnings Release | Q2 2014 | 0.335 |
| Zimmer Holdings Inc | ZMH US | 8:00 | Q2 2014 Earnings Call | Q2 2014 | |
| Boston Scientific Corp | BSX US | 8:00 | Q2 2014 Earnings Call | Q2 2014 | |
| CMS Energy Corp | CMS US | 8:00 | Q2 2014 Earnings Release | Q2 2014 | 0.273 |
| Union Pacific Corp | UNP US | 8:00 | Q2 2014 Earnings Release | Q2 2014 | 1.432 |
| NASDAQ OMX Group Inc/The | NDAQ US | 8:00 | Q2 2014 Earnings Call | Q2 2014 | |
| Assurant Inc | AIZ US | 8:00 | Q2 2014 Earnings Call | Q2 2014 | |
| PulteGroup Inc | PHM US | 8:30 | Q2 2014 Earnings Call | Q2 2014 | |
| Wyndham Worldwide Corp | WYN US | 8:30 | Q2 2014 Earnings Call | Q2 2014 | |
| CMS Energy Corp | CMS US | 8:30 | Q2 2014 Earnings Call | Q2 2014 | |
| Quest Diagnostics Inc | DGX US | 8:30 | Q2 2014 Earnings Call | Q2 2014 | |
| Equifax Inc | EFX US | 8:30 | Q2 2014 Earnings Call | Q2 2014 | |
| Ford Motor Co | F US | 8:30 | Q2 2014 Earnings Call | C2 2014 | |
| Hershey Co/The | HSY US | 8:30 | Q2 2014 Earnings Call | Q2 2014 | |
| Under Armour Inc | UA US | 8:30 | Q2 2014 Earnings Call | Q2 2014 | |
| Union Pacific Corp | UNP US | 8:45 | Q2 2014 Earnings Call | Q2 2014 | |
| 3M Co | MMM US | 9:00 | Q2 2014 Earnings Call | Q2 2014 | |
| Diamond Offshore Drilling Inc | DO US | 9:00 | Q2 2014 Earnings Call | Q2 2014 | |
| Raytheon Co | RTN US | 9:00 | Q2 2014 Earnings Call | Q2 2014 | |
| Celgene Corp | CELG US | 9:00 | Q2 2014 Earnings Call | Q2 2014 | |
| Eli Lilly & Co | LLY US | 9:00 | Q2 2014 Earnings Call | Q2 2014 | |
| Brown-Forman Corp | BF/B US | 9:30 | Annual General Meeting | Y 2014 | |
| Cabot Oil & Gas Corp | COG US | 9:30 | Q2 2014 Earnings Call | Q2 2014 | |
| Cameron International Corp | CAM US | 9:30 | Q2 2014 Earnings Call | Q2 2014 | |
| Airgas Inc | ARG US | 10:00 | Q1 2015 Earnings Call | Q1 2015 | |
| Noble Energy Inc | NBL US | 10:00 | Q2 2014 Earnings Call | Q2 2014 | |
| Precision Castparts Corp | PCP US | 10:00 | Q1 2015 Earnings Call | Q1 2015 | |
| Bemis Co Inc | BMS US | 10:00 | Q2 2014 Earnings Call | Q2 2014 | |
| Alexion Pharmaceuticals Inc | ALXN US | 10:00 | Q2 2014 Earnings Call | Q2 2014 | |
| DR Horton Inc | DHI US | 10:00 | Q3 2014 Earnings Call | Q3 2014 | |
| Coca-Cola Enterprises Inc | CCE US | 10:00 | Q2 2014 Earnings Call | Q2 2014 | |
| General Motors Co | GM US | 10:00 | Q2 2014 Earnings Call | Q2 2014 | |
| Bristol-Myers Squibb Co | BMY US | 10:30 | Q2 2014 Earnings Call | Q2 2014 | |
| Crown Castle International Corp | CCI US | 10:30 | Q2 2014 Earnings Call | Q2 2014 | |
| EQT Corp | EQT US | 10:30 | Q2 2014 Earnings Call | Q2 2014 | |
| Starwood Hotels & Resorts Worldwide Inc | HOT US | 10:30 | Q2 2014 Earnings Call | Q2 2014 | |
| Dr Pepper Snapple Group Inc | DPS US | 11:00 | Q2 2014 Earnings Call | Q2 2014 | |
| AmerisourceBergen Corp | ABC US | 11:00 | Q3 2014 Earnings Call | Q3 2014 | |
| Caterpillar Inc | CAT US | 11:00 | Q2 2014 Earnings Call | Q2 2014 | |
| Flowserve Corp | FLS US | 11:00 | Q2 2014 Earnings Call | Q2 2014 | |
| FLIR Systems Inc | FLIR US | 11:00 | Q2 2014 Earnings Call | Q2 2014 | |
| Torchmark Corp | TMK US | 11:00 | Q2 2014 Earnings Call | Q2 2014 | |
| O'Reilly Automotive Inc | ORLY US | 11:00 | Q2 2014 Earnings Call | Q2 2014 | |
| Sigma-Aldrich Corp | SIAL US | 11:00 | Q2 2014 Earnings Call | Q2 2014 | |
| Ford Motor Co | F US | 11:30 | Q2 2014 Earnings Call - Fixed Income | Q2 2014 | |
| Southwest Airlines Co | LUV US | 12:30 | Q2 2014 Earnings Call | Q2 2014 | |
| AvalonBay Communities Inc | AVB US | 13:00 | Q2 2014 Earnings Call | Q2 2014 | |
| Nucor Corp | NUE US | 14:00 | Q2 2014 Earnings Call | Q2 2014 | |
| Macerich Co/The | MAC US | 15:30 | Q2 2014 Earnings Call | Q2 2014 | |
| Principal Financial Group Inc | PFG US | 16:00 | Q2 2014 Earnings Release | Q2 2014 | 1.009 |
| CR Bard Inc | BCR US | 16:05 | Q2 2014 Earnings Release | Q2 2014 | 2.006 |
| VeriSign Inc | VRSN US | 16:05 | Q2 2014 Earnings Release | Q2 2014 | 0.645 |
| Altera Corp | ALTR US | 16:15 | Q2 2014 Earnings Release | Q2 2014 | 0.373 |
| Cerner Corp | CERN US | 16:30 | Q2 2014 Earnings Call | Q2 2014 | |
| VeriSign Inc | VRSN US | 16:30 | Q2 2014 Earnings Call | Q2 2014 | |
| Altera Corp | ALTR US | 16:45 | Q2 2014 Earnings Call | Q2 2014 | |
| Republic Services Inc | RSG US | 17:00 | Q2 2014 Earnings Call | Q2 2014 | |
| CR Bard Inc | BCR US | 17:00 | Q2 2014 Earnings Call | Q2 2014 | |
| Visa Inc | V US | 17:00 | Q3 2014 Earnings Call | Q3 2014 | |
| Chubb Corp/The | CB US | 17:00 | Q2 2014 Earnings Call | Q2 2014 | |
| Amazon.com Inc | AMZN US | 17:00 | Q2 2014 Earnings Call | Q2 2014 | |
| Stericycle Inc | SRCL US | 17:00 | Q2 2014 Earnings Call | Q2 2014 | |
| Starbucks Corp | SBUX US | 17:00 | Q3 2014 Earnings Call | Q3 2014 | |
| KLA-Tencor Corp | KLAC US | 17:00 | Q4 2014 Earnings Call | Q4 2014 | |
| Republic Services Inc | RSG US | Aft-mkt | Q2 2014 Earnings Release | Q2 2014 | 0.488 |
| Visa Inc | V US | Aft-mkt | Q3 2014 Earnings Release | Q3 2014 | 2.099 |
| Chubb Corp/The | CB US | Aft-mkt | Q2 2014 Earnings Release | Q2 2014 | 1.9 |
| Amazon.com Inc | AMZN US | Aft-mkt | Q2 2014 Earnings Release | Q2 2014 | -0.145 |
| Stericycle Inc | SRCL US | Aft-mkt | Q2 2014 Earnings Release | Q2 2014 | 1.028 |
| Starbucks Corp | SBUX US | Aft-mkt | Q3 2014 Earnings Release | Q3 2014 | 0.662 |
| KLA-Tencor Corp | KLAC US | Aft-mkt | Q4 2014 Earnings Release | Q4 2014 | 0.855 |
| Cerner Corp | CERN US | Aft-mkt | Q2 2014 Earnings Release | Q2 2014 | 0.395 |
| Leggett & Platt Inc | LEG US | Aft-mkt | Q2 2014 Earnings Release | Q2 2014 | 0.46 |