Friday, July 10th, 2015
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
September E-mini S&Ps (ESU15 +1.20%) are up sharply by +1.27% and European stocks are up +3.01% at a 1-week high after Chinese stocks closed higher for a second day and after Greece submitted proposals to its creditors. French President Hollande said the Greek proposals were "serious" and "credible" after Greek Prime Minister Tsipras offered to meet most of the demands made by creditors in exchange for a 3-year bailout of 53.5 billion euros ($59.4 billion). Asian stocks closed mostly higher: Japan -0.38%, Hong Kong +2.08%, China +4.54%, Taiwan closed for holiday, Australia +0.39%, Singapore +0.38%, South Korea +0.02%, India +0.32%. Chinese stocks closed higher amid government intervention to help stem the recent equity rout. More than 1,300 Chinese stocks are still halted from trading on China's mainland exchanges, however, leaving trading to only 53% of the total market. Deleveraging by margin traders continued as stock bought on margin fell for a record 14th day on the Shanghai Stock Exchange on Thursday.
Commodity prices are mixed. Aug crude oil (CLQ15 +0.40%) is up +1.10%, Aug gasoline (RBQ15 -0.81%) is down -0.41%. Metals prices are mixed. Aug gold (GCQ15 +0.23%) is up +0.25%. Sep copper (HGU15 -0.74%) is down -0.61% after weekly Shanghai copper inventories rose +3,759 MT. Agricultural prices are higher ahead of the USDA's Jul WASDE crop production report.
Sep T-note prices (ZNU15 -0.33%) are down -15.5 ticks.
The Greek government seeks a 3-year bailout loan of at least 53.5 billion euros that was presented to European institutions late last night and will be presented to the Greek Parliament today. It will then be discussed at a summit of EU leaders Sunday to determine whether Greece gets a new bailout or is forced to leave the Eurozone. The Greek proposals include creditors' demands for sales tax increases and cuts in public spending and pensions. Greece also proposes the restructuring of its debt and a package of growth measures of 35 billion euros. Greece said it will use the 3-year loan from the European Stability Mechanism to cover its debt repayments between 2015 and 2018.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) May wholesale inventories (expected +0.3% after April's +0.4%), (2) Boston Fed President Eric Rosengren's keynote speech at the 7th Annual Rocky Mountain Economic Summit, and (3) Fed Chair Janet Yellen's speech on the U.S. economic outlook at an event in Cleveland.
None the Russell 1000 companies report earnings today.
U.S. IPO's scheduled to price today include: none.
Equity conferences this week: none.
OVERNIGHT U.S. STOCK MOVERS
Costco (COST -0.32%) was upgraded to 'Outperform' from 'Perform' at Oppenheimer with a $160 price target.
Heineken (HEINY +1.96%) was upgraded to 'Buy' from 'Neutral' at CitiGroup.
IntercontinentalExchange (ICE +1.16%) was upgraded to 'Buy' from 'Hold' at Deutsche Bank.
Ameriprise (AMP +0.92%) was downgraded to 'Neutral' from 'Buy' at Goldman Sachs.
Mosaic (MOS -0.86%) was upgraded to 'Overweight' from 'Neutral' at Atlantic Equities.
J.M. Smucker (SJM -0.15%) announced a 4.92 million share common stock offering.
Gartner reported that Q2 worldwide PC shipments were down 9.5% y/y to 68.4 million units.
Carl Icahn reported a 6.51% stake in Tegna (TGNA +2.61%) .
Soros Fund Management reported a 5.32% passive stake in Cypress Semiconductor (CY +0.09%) .
Verizon (VZ -0.69%) coverage was resumed with a 'Buy' at Stifel with a price target of $60.
AT&T (T -1.15%) coverage was resumed with a 'Buy' at Stifel with a price target of $41.50.
Wolverine Asset Management reported an 8.8% passive stake in Viggle (VGGL unch) .
The Gap (GPS -1.56%) reported June same-store-sales were down -1.0% y/y.
September E-mini S&Ps (ESU15 +1.20%) this morning are up sharply by +26.00 points (+1.27%). Thursday's closes: S&P 500 +0.23%, Dow Jones +0.19%, Nasdaq +0.01%. The S&P 500 on Thursday closed higher on a sharp rebound in Chinese stocks and on strength in commodity producers after crude oil and copper rallied. Stocks fell back, however, on bearish factors that included the unexpected +15,000 increase in U.S. weekly jobless claims, and the IMF's cut in its global 2015 GDP forecast to 3.3% from April's 3.5% and in its U.S. GDP estimate to +2.5% from +3.1%.
Sep 10-year T-notes (ZNU15 -0.33%) this morning are down -15.5 ticks. Thursday's closes: TYU5 -22.50, FVU5 -11.25. Sep T-notes on Thursday closed lower on reduced safe-haven demand tied to the upward rebound in Chinese and U.S. stocks and on weak demand for Thursday's 30-year T-bond auction that had a bid-to-cover ratio of 2.23, below the 12-auction average of 2.40.
The dollar index (DXY00 -1.01%)this morning is down -1.082 (-1.12%) at a 1-week low. EUR/USD (^EURUSD) is up +0.0159 (+1.44%) at a 1-1/2 week high. USD/JPY (^USDJPY) is up +1.03 (+0.85%). Thursday's closes: Dollar Index +0.312 (+0.32%), EUR/USD -0.00404 (-0.36%), USD/JPY +0.627 (+0.52%). The dollar on Thursday closed higher on (1) reduced safe-haven demand for the yen as USD/JPY strengthened after global stock markets rallied, and (2) weakness in EUR/USD ahead of Thursday night's deadline for Greece to present its creditors with a new plan.
Aug WTI crude oil (CLQ15 +0.40%) this morning is up +58 cents (+1.10%). Aug gasoline (RBQ15 -0.81%) is down -0.0083 (-0.41%). Thursday's closes: CLQ5 +1.13 (+2.19%), RBQ5 +0.0305 (+1.53%). Aug crude and gasoline on Thursday closed higher on short-covering and the sharp recovery in Chinese stocks. In addition, Iranian nuclear talks are not going well, which would keep economic sanctions against Iran in place and limit Iranian crude exports after President Obama said he sees less than a 50-50 chance of a nuclear deal with Iran.
GLOBAL EVENT CALENDAR07/10/2015
|US||1000 ET||May wholesale inventories expected +0.3%, Apr +0.4%. May wholesale trade sales expected +0.9%, Apr +1.6%.|
|1135 ET||Boston Fed President Eric Rosengren is the keynote speaker at the 7th Annual Rocky Mountain Economic Summit.|
|1200 ET||USDA Jul WASDE crop production.|
|1230 ET||Fed Chair Janet Yellen speaks on the U.S. economic outlook at an event in Cleveland.|
|JPN||0100 ET||Japan Jun consumer confidence expected +0.3 to 41.7, May 41.4.|
|UK||0430 ET||UK May construction output expected +0.8% m/m and +3.1% y/y, Apr -0.8% m/m and +1.5% y/y.|
U.S. STOCK CALENDAR07/10/2015
|American Airlines Group Inc||AAL US||Bef-mkt||June 2015 Sales and Revenue Release - Traffic Results||2015|
|Armstrong World Industries Inc||AWI US||Annual General Meeting|