Thursday, August 7th, 2014
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OVERNIGHT MARKETS AND NEWS
September E-mini S&Ps (ESU14 +0.21%) this morning are up +0.16% as Q2 stock earnings results continue to surprise on the upside, while European stocks are down -0.36% after German industrial output rose less than expected along with concern the Ukraine conflict and sanctions against Russia will undermine the European economy. Russia's Micex Stock Index tumbled to a 3-month low as retailers plunged on concern a ban on food imports from sanctioned countries will cut earnings after Russian President Putin ordered restrictions on food and agricultural imports for one year from countries that have imposed or supported sanctions against Russia. Limiting losses in European stocks is the fall in the 10-year German bund yield to a record low 1.078% ahead of today's ECB meeting. Asian stocks closed mostly lower: Japan +0.48%, Hong Kong -0.80%, China -1.51%, Taiwan -0.14%, Australia -0.05%, Singapore -0.18%, South Korea -0.36%, India -0.30%. Commodity prices are mostly lower. Sep crude oil (CLU14 -0.02%) is down -0.33% at a fresh 6-month low. Sep gasoline (RBU14 +0.07%) is down -0.11%. Dec gold (GCZ14 -0.05%) is down -0.09%. Sep copper (HGU14 +0.16%) is up +0.14%. Agriculture and livestock prices are mostly lower with Oct lean hogs down -0.71% at a 3-1/2 month low. The dollar index (DXY00 +0.02%) is up +0.05%. EUR/USD (^EURUSD) is down -0.06%. USD/JPY (^USDJPY) is up +0.20%. Sep T-note prices (ZNU14 +0.16%) are up +4.5 ticks on positive carry-over from a rally in German bunds.
German Jun industrial production rose +0.3% m/m and unexpectedly fell -0.5% y/y, weaker than expectations of +1.2% m/m and +0.3% y/y with the -0.5% y/y drop the largest annual decline in 11 months.
As expected, the BOE maintained its benchmark rate at 0.50% and kept its asset purchase target at 375 billion pounds.
U.S. STOCK PREVIEW
Today's U.S. weekly unemployment claims report should continue to show a slowly-improving layoff picture. Today's initial unemployment claims report is expected to show a slight +3,000 increase to 305,000 after last week's +23,000 gain to 302,000. Today's June U.S. consumer credit report is expected to show another strong increase of +$18.700 billion, close to May's increase of +$19.602 billion.
There are 17 of the S&P 500 companies that report earnings today with notable reports including: Mylan (consensus $0.72), AES Corp. (0.28), Wendy's (0.10), InterContinentalExchange (2.02), Scripps Networks (1.13), Duke Energy (0.98). Equity conferences for the remainder of this week include: Black Hat USA 2014 on Wed-Thu and Needham Advanced Industrial Technologies Conference on Thu.
OVERNIGHT U.S. STOCK MOVERS
Duke Energy (DUK -1.61%) reported Q2 EPS of $1.11, well above consensus of 98 cents.
Carnival Corp. (CCL +0.69%) rose nearly 3% in pre-market trading after BOA/Merril upgraded the stock to 'Buy' from 'Neutral.'
Aetna (AET -0.18%) was downgraded to 'Neutral' from 'Buy' at Goldman Sachs.
Esterline (ESL +0.14%) was upgraded to 'Buy' from 'Neutral' at Goldman Sachs who also raised their price target on the stock to $140 from $111.
Energy Transfer Partners (ETP -1.49%) reported Q2 EPS of 79 cents, higher than consensus of 64 cents.
Babcock & Wilcox (BWC -0.35%) sank over 12% in after-hours trading after it reported Q2 adjusted EPS of 44 cents, lower than consensus of 49 cents, and then lowered guidance on fiscal 2014 EPS view to $1.70-$1.85 from $2.00-$2.20, below consensus of $2.12.
Transocean (RIG -1.09%) rose over 2% in after-hours trading after it reported Q2 adjusted EPS of $1.61, well ahead of consensus of $1.12.
CF Industries (CF +1.36%) reported Q2 EPS of $6.10, well below consensus of $6.71.
Envision Healthcare (EVHC -0.62%) reported Q2 adjusted EPS of 28 cents, better than consensus of 25 cents, and then raised guidance on 2014 adjusted EPS view to $1.15-$1.20 from $1.10-$1.15, higher than consensus of $1.13.
CenturyLink (CTL -1.32%) rallied nearly 3% in after-hours trading after it reported Q2 adjusted EPS of 72 cents, higher than consensus of 64 cents.
Prudential (PRU +0.96%) reported Q2 EPS of $2.49, stronger than consensus of $2.35.
21st Century Fox (FOXA +3.29%) climbed over 2% in after-hours trading after it reported Q4 EPS of 42 cents, higher than consensus of 38 cents.
Symantec (SYMC -0.79%) reported Q1 EPS of 45 cents, better than consensus of 42 cents.
Keurig Green Mountain (GMCR +0.33%) fell over 2% in after-hours trading after it reported Q3 EPS of 99 cents, above consensus of 88 cents, and then raised guidance on fiscal 2014 EPS outlook to $3.71-$3.78 from $3.63-$3.73, although that is still below consensus of $3.78.
Sep E-mini S&Ps (ESU14 +0.21%) this morning are up +3.00 points (+0.16%). The S&P 500 index on Wednesday opened lower at a 2-1/4 month low on geopolitical concerns after NATO said there's a risk of Russia sending troops into Ukraine under the "pretext" of a humanitarian or peacekeeping mission. Stock prices recovered, however, and closed little changed: S&P 500 unch, Dow Jones +0.08%, Nasdaq -0.02%. Bullish factors included (1) the U.S. Jun trade balance that unexpectedly narrowed to a -$41.5 billion deficit, better than expectations of an increase to a -$44.8 billion deficit and the smallest deficit in 5 months, which is positive for GDP growth, and (2) positive Q2 company earnings results as 75% of companies in the S&P 500 that have reported earnings thus far have beaten profit estimates.
Sep 10-year T-notes (ZNU14 +0.16%) this morning are up +4.5 ticks. Sep 10-year T-note futures prices on Wednesday climbed to a 2-month high on increased safe-haven demand after NATO said that there's a risk that Russia will invade Ukraine. Another positive was the Treasury's announcement that it will auction $67 billion of T-notes and bonds in next week's quarterly refunding, -$2 billion less than the prior refunding. T-notes came off of their best levels after the S&P 500 recovered from a 2-1/4 month low and. Closes: TYU4 +3.50, FVU4 +2.50.
The dollar index (DXY00 +0.02%) this morning is up +0.039 (+0.05%). EUR/USD (^EURUSD) is down -0.0008 (-0.06%) and USD/JPY (^USDJPY) is UP +0.20 (+0.20%). The dollar index on Wednesday posted a 10-3/4 month high on increased safe-haven demand over concern Russia may soon invade Ukraine. EUR/USD fell to an 8-3/4 month low on concern over the European economy after German factory orders unexpectedly fell -3.2% m/m, the largest monthly decline in 2-3/4 years, and after Italy Q2 GDP fell -0.2% q/q, which puts it into recession. EUR/USD recovered its losses and closed higher ahead of Thursday's ECB meeting. Closes: Dollar index +0.116 (+0.14%), EUR/USD +0.00067 (+0.05%), USD/JPY -0.494 (-0.48%).
Sep WTI crude oil (CLU14 -0.02%) this morning is down -32 cents (-0.33%) at a fresh 6-month low and Sep gasoline (RBU14 +0.07%) is down -0.0031 (-0.11%). Sep crude and gasoline prices on Wednesday settled mixed: CLU4 -0.46 (-0.47%), RBU4 +0.0270 (+0.99%). Crude oil fell back after the dollar index strengthened to a 10-3/4 month high and after crude supplies at Cushing, OK, the delivery point for WTI futures, rose +83,000 bbl, their first increase in a month. Gasoline closed higher after weekly EIA gasoline stockpiles unexpectedly plunged -4.387 million bbl, more than expectations for no change.
GLOBAL EVENT CALENDAR08/07/2014
|US||0830 ET||Weekly initial unemployment claims expected +3,000 to 305,000, previous +23,000 to 302,000. Weekly continuing claims expected -27,000 to 2.512 million, previous +31,000 to 2.539 million.|
|0830 ET||USDA weekly Export Sales.|
|1500 ET||Jun consumer credit expected +$18.700 billion, May +$19.602 billion.|
|GER||0200 ET||German Jun industrial production expected +1.2% m/m and +0.3% y/y, May -1.8% m/m and +1.3% y/y.|
|UK||0700 ET||BOE announces interest rate decision and asset purchase target, expected no change to the 0.50% benchmark rate or to the 375 billion pound asset purchase target.|
|EUR||0745 ET||ECB announces interest rate decision.|
|0830 ET||ECB President Mario Draghi speaks at monthly press conference following ECB meeting.|
|CHI||n/a||China Jul trade balance expected +$26.00 billion, Jun +$31.56 billion. Jul exports expected +7.3% y/y, Jun +7.2% y/y. Jul imports expected +3.0% y/y, Jun +5.5% y/y.|
U.S. STOCK CALENDAR08/07/2014
|Company Name||Ticker||Time||Event Description||Period||Estimate|
|Brinker International Inc||EAT US||Bef-mkt||Q4 2014 Earnings Release||Q4 2014||0.866|
|Mylan Inc/PA||MYL US||Bef-mkt||Q2 2014 Earnings Release||Q2 2014||0.716|
|AES Corp/VA||AES US||Bef-mkt||Q2 2014 Earnings Release||Q2 2014||0.277|
|Wendy's Co/The||WEN US||Bef-mkt||Q2 2014 Earnings Release||Q2 2014||0.095|
|Royal Gold Inc||RGLD US||Bef-mkt||Q4 2014 Earnings Release||Q4 2014||0.301|
|Teekay Corp||TK US||Bef-mkt||Q2 2014 Earnings Release||Q2 2014||-0.251|
|Lamar Advertising Co||LAMR US||Bef-mkt||Q2 2014 Earnings Release||Q2 2014||0.374|
|AMC Networks Inc||AMCX US||Bef-mkt||Q2 2014 Earnings Release||Q2 2014||0.868|
|Intercontinental Exchange Inc||ICE US||Bef-mkt||Q2 2014 Earnings Release||Q2 2014||2.021|
|NRG Energy Inc||NRG US||Bef-mkt||Q2 2014 Earnings Release||Q2 2014||0.183|
|NorthStar Realty Finance Corp||NRF US||Bef-mkt||Q2 2014 Earnings Release||Q2 2014||0.373|
|Teradata Corp||TDC US||Bef-mkt||Q2 2014 Earnings Release||Q2 2014||0.645|
|Broadridge Financial Solutions Inc||BR US||Bef-mkt||Q4 2014 Earnings Release||Q4 2014||1.161|
|Scripps Networks Interactive Inc||SNI US||Bef-mkt||Q2 2014 Earnings Release||Q2 2014||1.134|
|Laredo Petroleum Inc||LPI US||Bef-mkt||Q2 2014 Earnings Release||Q2 2014||0.179|
|Mallinckrodt PLC||MNK US||Bef-mkt||Q3 2014 Earnings Release||Q3 2014||0.874|
|CBS Outdoor Americas Inc||CBSO US||Bef-mkt||Q2 2014 Earnings Release||Q2 2014||0.229|
|Duke Energy Corp||DUK US||7:00||Q2 2014 Earnings Release||Q2 2014||0.979|
|L Brands Inc||LB US||7:30||July 2014 Sales and Revenue Call - Pre-Recorded||2014|
|Harman International Industries Inc||HAR US||8:00||Q4 2014 Earnings Release||Q4 2014||1.214|
|Hill-Rom Holdings Inc||HRC US||8:00||Q3 2014 Earnings Call||Q3 2014|
|MBIA Inc||MBI US||8:00||Q2 2014 Earnings Call||Q2 2014|
|SunEdison Inc||SUNE US||8:00||Q2 2014 Earnings Call||Q2 2014|
|Dun & Bradstreet Corp/The||DNB US||8:00||Q2 2014 Earnings Call||Q2 2014|
|Babcock & Wilcox Co/The||BWC US||8:30||Q2 2014 Earnings Call||Q2 2014|
|Windstream Holdings Inc||WIN US||8:30||Q2 2014 Earnings Call||Q2 2014|
|Intercontinental Exchange Inc||ICE US||8:30||Q2 2014 Earnings Call||Q2 2014|
|Teradata Corp||TDC US||8:30||Q2 2014 Earnings Call||Q2 2014|
|Broadridge Financial Solutions Inc||BR US||8:30||Q4 2014 Earnings Call||Q4 2014|
|Mallinckrodt PLC||MNK US||8:30||Q3 2014 Earnings Call||Q3 2014|
|Stratasys Ltd||SSYS US||8:30||Q2 2014 Earnings Call||Q2 2014|
|CBS Outdoor Americas Inc||CBSO US||8:30||Q2 2014 Earnings Call||Q2 2014|
|OGE Energy Corp||OGE US||9:00||Q2 2014 Earnings Call||Q2 2014|
|Integrys Energy Group Inc||TEG US||9:00||Q2 2014 Earnings Call||Q2 2014|
|AES Corp/VA||AES US||9:00||Q2 2014 Earnings Call||Q2 2014|
|Wendy's Co/The||WEN US||9:00||Q2 2014 Earnings Call||Q2 2014|
|Gulfport Energy Corp||GPOR US||9:00||Q2 2014 Earnings Call||Q2 2014|
|Sempra Energy||SRE US||9:00||Q2 2014 Earnings Release||Q2 2014||1.13|
|QEP Resources Inc||QEP US||9:00||Q2 2014 Earnings Call||Q2 2014|
|Charles River Laboratories International Inc||CRL US||9:00||Q2 2014 Earnings Call||Q2 2014|
|NRG Energy Inc||NRG US||9:00||Q2 2014 Earnings Call||Q2 2014|
|NorthStar Realty Finance Corp||NRF US||9:00||Q2 2014 Earnings Call||Q2 2014|
|Brookdale Senior Living Inc||BKD US||9:00||Q2 2014 Earnings Call||Q2 2014|
|SandRidge Energy Inc||SD US||9:00||Q2 2014 Earnings Call||Q2 2014|
|American Water Works Co Inc||AWK US||9:00||Q2 2014 Earnings Call||Q2 2014|
|Two Harbors Investment Corp||TWO US||9:00||Q2 2014 Earnings Call||Q2 2014|
|Huntington Ingalls Industries Inc||HII US||9:00||Q2 2014 Earnings Call||Q2 2014|
|EP Energy Corp||EPE US||9:00||Q2 2014 Earnings Call||Q2 2014|
|Sabre Corp||SABR US||9:00||Q2 2014 Earnings Call||Q2 2014|
|Concho Resources Inc||CXO US||9:30||Q2 2014 Earnings Call||Q2 2014|
|Atmos Energy Corp||ATO US||10:00||Q3 2014 Earnings Call||Q3 2014|
|Brinker International Inc||EAT US||10:00||Q4 2014 Earnings Call||Q4 2014|
|Duke Energy Corp||DUK US||10:00||Q2 2014 Earnings Call||Q2 2014|
|Mylan Inc/PA||MYL US||10:00||Q2 2014 Earnings Call||Q2 2014|
|Westar Energy Inc||WR US||10:00||Q2 2014 Earnings Call||Q2 2014|
|Alliant Energy Corp||LNT US||10:00||Q2 2014 Earnings Call||Q2 2014|
|Lamar Advertising Co||LAMR US||10:00||Q2 2014 Earnings Call||Q2 2014|
|Annaly Capital Management Inc||NLY US||10:00||Q2 2014 Earnings Call||Q2 2014|
|WhiteWave Foods Co/The||WWAV US||10:00||Q2 2014 Earnings Call||Q2 2014|
|Scripps Networks Interactive Inc||SNI US||10:00||Q2 2014 Earnings Call||Q2 2014|
|Laredo Petroleum Inc||LPI US||10:00||Q2 2014 Earnings Call||Q2 2014|
|Markel Corp||MKL US||10:30||Q2 2014 Earnings Call||Q2 2014|
|Harman International Industries Inc||HAR US||11:00||Q4 2014 Earnings Call||Q4 2014|
|Forest City Enterprises Inc||FCE/A US||11:00||Q2 2014 Earnings Call||Q2 2014|
|Middleby Corp/The||MIDD US||11:00||Q2 2014 Earnings Call||Q2 2014|
|Teekay Corp||TK US||11:00||Q2 2014 Earnings Call||Q2 2014|
|AMERCO||UHAL US||11:00||Q1 2015 Earnings Call||Q1 2015|
|Prudential Financial Inc||PRU US||11:00||Q2 2014 Earnings Call||Q2 2014|
|Corrections Corp of America||CXW US||11:00||Q2 2014 Earnings Call||Q2 2014|
|AMC Networks Inc||AMCX US||11:00||Q2 2014 Earnings Call||Q2 2014|
|Murphy USA Inc||MUSA US||11:00||Q2 2014 Earnings Call||Q2 2014|
|CF Industries Holdings Inc||CF US||11:00||Q2 2014 Earnings Call||Q2 2014|
|Copa Holdings SA||CPA US||11:00||Q2 2014 Earnings Call||Q2 2014|
|EchoStar Corp||SATS US||11:00||Q2 2014 Earnings Call||Q2 2014|
|Antero Resources Corp||AR US||11:00||Q2 2014 Earnings Call||Q2 2014|
|Royal Gold Inc||RGLD US||12:00||Q4 2014 Earnings Call||Q4 2014|
|Essex Property Trust Inc||ESS US||13:00||Q2 2014 Earnings Call||Q2 2014|
|Sempra Energy||SRE US||13:00||Q2 2014 Earnings Call||Q2 2014|
|Regency Centers Corp||REG US||14:00||Q2 2014 Earnings Call||Q2 2014|
|American Express Co||AXP US||15:00||Fixed Income Investor Conference Call|
|IDEXX Laboratories Inc||IDXX US||16:00||Analyst Day - Day 1||Y 2014|
|Assured Guaranty Ltd||AGO US||16:00||Q2 2014 Earnings Release||Q2 2014||0.413|
|Computer Sciences Corp||CSC US||16:15||Q1 2015 Earnings Release||Q1 2015||0.938|
|NVIDIA Corp||NVDA US||16:20||Q2 2015 Earnings Release||Q2 2015||0.256|
|CBS Corp||CBS US||16:30||Q2 2014 Earnings Call||Q2 2014|
|Salix Pharmaceuticals Ltd||SLXP US||16:30||Q2 2014 Earnings Call||Q2 2014|
|Medivation Inc||MDVN US||16:30||Q2 2014 Earnings Call||Q2 2014|
|Allscripts Healthcare Solutions Inc||MDRX US||16:30||Q2 2014 Earnings Call||Q2 2014|
|Alnylam Pharmaceuticals Inc||ALNY US||16:30||Q2 2014 Earnings Call||Q2 2014|
|Air Lease Corp||AL US||16:30||Q2 2014 Earnings Call||Q2 2014|
|Computer Sciences Corp||CSC US||17:00||Q1 2015 Earnings Call||Q1 2015|
|DeVry Education Group Inc||DV US||17:00||Q4 2014 Earnings Call||Q4 2014|
|Monster Beverage Corp||MNST US||17:00||Q2 2014 Earnings Call||Q2 2014|
|NVIDIA Corp||NVDA US||17:00||Q2 2015 Earnings Call||Q2 2015|
|Zynga Inc||ZNGA US||17:00||Q2 2014 Earnings Call||Q2 2014|
|CareFusion Corp||CFN US||17:00||Q4 2014 Earnings Call||Q4 2014|
|Sprouts Farmers Market Inc||SFM US||17:00||Q2 2014 Earnings Call||Q2 2014|
|SolarCity Corp||SCTY US||17:00||Q2 2014 Earnings Call||Q2 2014|
|Consolidated Edison Inc||ED US||Aft-mkt||Q2 2014 Earnings Release||Q2 2014||0.538|
|Federal Realty Investment Trust||FRT US||Aft-mkt||Q2 2014 Earnings Release||Q2 2014||1.211|
|Great Plains Energy Inc||GXP US||Aft-mkt||Q2 2014 Earnings Release||Q2 2014||0.408|
|Monster Beverage Corp||MNST US||Aft-mkt||Q2 2014 Earnings Release||Q2 2014||0.748|
|CBS Corp||CBS US||Aft-mkt||Q2 2014 Earnings Release||Q2 2014||0.715|
|Lions Gate Entertainment Corp||LGF US||Aft-mkt||Q1 2015 Earnings Release||Q1 2015||0.212|
|Salix Pharmaceuticals Ltd||SLXP US||Aft-mkt||Q2 2014 Earnings Release||Q2 2014||1.689|
|Medivation Inc||MDVN US||Aft-mkt||Q2 2014 Earnings Release||Q2 2014||0.233|
|Allscripts Healthcare Solutions Inc||MDRX US||Aft-mkt||Q2 2014 Earnings Release||Q2 2014||0.089|
|Alnylam Pharmaceuticals Inc||ALNY US||Aft-mkt||Q2 2014 Earnings Release||Q2 2014||-0.516|
|Columbia Property Trust Inc||CXP US||Aft-mkt||Q2 2014 Earnings Release||Q2 2014||0.498|
|Zynga Inc||ZNGA US||Aft-mkt||Q2 2014 Earnings Release||Q2 2014||0.002|
|CareFusion Corp||CFN US||Aft-mkt||Q4 2014 Earnings Release||Q4 2014||0.723|
|Sprouts Farmers Market Inc||SFM US||Aft-mkt||Q2 2014 Earnings Release||Q2 2014||0.178|
|SolarCity Corp||SCTY US||Aft-mkt||Q2 2014 Earnings Release||Q2 2014||-0.994|
|News Corp||NWSA US||Aft-mkt||Q4 2014 Earnings Release||Q4 2014||0.029|
|Frank's International NV||FI US||Aft-mkt||Q2 2014 Earnings Release||Q2 2014||0.309|
|News Corp||NWSA US||17:30||Q4 2014 Earnings Call||Q4 2014|
|Foster Wheeler AG||FWLT US||Q2 2014 Earnings Release||Q2 2014||0.47|
|Gap Inc/The||GPS US||July 2014 Sales and Revenue Release||2014|
|Hill-Rom Holdings Inc||HRC US||Q3 2014 Earnings Release||Q3 2014||0.594|
|L Brands Inc||LB US||July 2014 Sales and Revenue Release||2014|
|National Fuel Gas Co||NFG US||Q3 2014 Earnings Release||Q3 2014||0.728|
|OGE Energy Corp||OGE US||Q2 2014 Earnings Release||Q2 2014||0.515|
|Costco Wholesale Corp||COST US||July 2014 Sales and Revenue Release||2014|
|DeVry Education Group Inc||DV US||Q4 2014 Earnings Release||Q4 2014||0.674|
|Eagle Materials Inc||EXP US||Annual General Meeting|
|SunEdison Inc||SUNE US||Q2 2014 Earnings Release||Q2 2014||-0.259|
|Ralph Lauren Corp||RL US||Annual General Meeting|
|WhiteWave Foods Co/The||WWAV US||Q2 2014 Earnings Release||Q2 2014||0.218|
|Red Hat Inc||RHT US||Annual General Meeting|
|Windstream Holdings Inc||WIN US||Q2 2014 Earnings Release||Q2 2014||0.08|
|EchoStar Corp||SATS US||Q2 2014 Earnings Release||Q2 2014||0.165|
|Air Lease Corp||AL US||Q2 2014 Earnings Release||Q2 2014||0.51|
|Huntington Ingalls Industries Inc||HII US||Q2 2014 Earnings Release||Q2 2014||1.814|
|Stratasys Ltd||SSYS US||Q2 2014 Earnings Release||Q2 2014||0.447|
|Sabre Corp||SABR US||Q2 2014 Earnings Release||Q2 2014||0.18|