Tuesday, November 3rd, 2015
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OVERNIGHT MARKETS AND NEWS
December E-mini S&Ps (ESZ15 -0.29%) are down -0.16% on some give back from Monday's rally to a 2-3/4 month high. European stocks are up +0.02% as a +1.04% rally in Dec crude oil (CLZ15 +0.76%) boosts energy producers while weakness in European banks limits gains. UBS is down over 4% after it postponed the date on when it expects to return to profitability and Standard Chartered fell over 9% after it reported an unexpected Q3 quarterly loss of -$139 million and said it will raise $5.1 billion in a rights offer. Also, Volkswagen AG is down over 3% after U.S. regulators said that after testing they found other Volkswagen models, including Porsche, have equipment to alter emissions systems. Asian stocks settled mixed: Japan closed for holiday, Hong Kong +0.89%, China -0.25%, Taiwan +1.14%, Australia +1.42%, Singapore +0.85%, South Korea +0.61%, India +0.12%.
Dec T-note prices (ZNZ15 -0.01%) are unchanged.
According to the Xinhua News Agency, Chinese President Xi Jinping said that China's annual growth should be no less than 6.5% in the next 5 years in order to realize the goal to double 2010 gross domestic product and per capita income by 2020. He added that it's still possible to maintain growth at about 7%, the government's current goal, despite the many uncertainties facing the economy.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) Oct New York ISM (expected +1.2 to 45.7, Sep -6.6 to 44.5), (2) Sep factory orders (expected -0.9%, Aug -1.7% and-0.8% ex transportation), and (3) Oct total vehicle sales (expected 17.70 million, Sep 18.07 million).
There are 27 of the S&P 500 companies that report earnings today with notable reports including: Kellogg (consensus $0.84), ADM (0.70), Emerson Electric (0.97), McGraw Hill Financial (1.06), CBS (0.81).
U.S. IPO's scheduled to price today: Revance Therapeutics (NASDAQ:RVNC).
Equity conferences during the remainder of this week include: Gabelli & Company Automotive Aftermarket Symposium on Tue, Goldman Sachs Industrials Conference on Tue-Wed, Citi China Investor Conference on Wed, Citi Industrials Conference on Wed, Citi Global Health Care Conference on Thu, Needham Next Generation Storage Networking Conference on Thu, Bernstein Technology Innovation Summit on Thu-Fri, BancAnalysts Association of Boston Conference on Thu-Fri.
OVERNIGHT U.S. STOCK MOVERS
Archer-Daniels-Midland (ADM +1.36%) reported Q3 EPS of 60 cents, below consensus of 70 cents.
Allstate (ALL -0.13%) rose 1.3% in pre-market trading after it reported Q3 operating EPS of $1.52. better than consensus of $1.32.
King Digital Entertainment Plc (KING +3.88%) jumped 14% in pre-market trading after it agreed to a $5.9 billion takeover offer from Activision Blizzard.
AMC Entertainment (AMC +0.47%) slid nearly 2% in after-hours trading after it reported Q3 EPS of 12 cents, below consensus of 16 cents.
Avis Budget (CAR +4.73%) sank over 9% in after-hours trading after it cut guidance on fiscal 2015 adjusted EPS to $3.10-$3.25 from an Aug estimate of $3.15-$3.45, below consensus of $3.36
Fitbit (FIT +0.64%) slipped nearly 8% in after-hours trading after it reported Q3 EPS of 24 cents, higher than consensus of 10 cents, but then announced a secondary offering of 7 million shares of common stock.
Luminex (LMNX +5.71%) climbed over 10% in after-hours trading after it reported Q3 EPS of 15 cents, better than consensus of 10 cents, and then raised guidance on fiscal 2015 revenue to $235 million-$238 million from a previous estimate of $232 million-$236 million, higher than consensus of $234.7 million.
Texas Roadhouse (TXRH +1.92%) rose over 4% in after-hours trading after it reported Q3 EPS of 29 cents, below consensus of 30 cents, but said comparable sales for the first four weeks of Q4 are up +5.0% y/y.
American International Group (AIG +1.08%) slid 3% in after-hours trading after it reported Q3 operating EPS of 52 cents, well below consensus of $1.03.
Nautilus (NLS +0.35%) jumped over 11% in after-hours trading after it reported Q3 continuing operations EPS of 12 cents, higher than consensus of 9 cents.
Qualys (QLYS +1.61%) slumped nearly 12% in after-hours trading after it reported Q3 EPS of 19 cents, higher than consensus of 13 cents, but then lowered guidance on fiscal 2015 revenue to $164.1 million-$164.6 million from an Aug estimate of $165.0 million-$166.5 million, below consensus of $165.6 million.
Alon USA Energy (ALJ +2.15%) rose over 1% in after-hours trading after it reported Q3 adjusted EPS of 60 cents, well above consensus of 46 cents.
SS&C Technologies (SSNC +0.40%) climbed over 2% in after-hours trading after it reported Q3 adjusted EPS of 68 cents, higher than consensus of 62 cents.
Dec E-mini S&Ps (ESZ15 -0.29%) this morning are down -3.25 points (-0.16%). Monday's closes: S&P 500 +1.19%, Dow Jones +0.94%, Nasdaq +1.18%. The S&P 500 on Monday rose to a 2-3/4 month high and closed higher on positive carryover from a rally in European stocks after the Eurozone Oct Market manufacturing PMI was revised higher. Stocks also received a boost from the decline of only -0.1 point in the Oct ISM manufacturing index to 50.1, stronger than expectations of -0.2 to 50.0. Health-care stocks rallied on increased M&A activity after Shire Plc bought Dyax for $5.9 billion and after reports that Pfizer is making progress in talks to buy Allergan Plc. Stocks were initially undercut by Chinese economic concerns after the China Oct manufacturing PMI was unchanged at 49.8, weaker than expectations of +0.2 to 50.0.
Dec 10-year T-notes (ZNZ15 -0.01%) this morning are unch. Monday's closes: TYZ5 -10.00, FVZ5 -6.00. Dec T-notes on Monday fell to a 1-1/4 month low and closed lower on negative carryover from a decline in German bund prices after hawkish comments from ECB President Draghi dampened speculation the ECB will soon expand QE. T-notes were also hurt by the stronger-than-expected Oct ISM manufacturing index and by reduced safe-haven demand as stocks rallied.
The dollar index (DXY00 +0.27%) this morning is up +0.234 (+0.24%). EUR/USD (^EURUSD) is down -0.0046 (-0.42%). USD/JPY (^USDJPY) is up +0.13 (+0.11%). Monday's closes: Dollar Index -0.018 (-0.02%), EUR/USD +0.0010 (+0.09%), USD/JPY +0.14 (+0.12%). The dollar index on Monday closed lower on concerns that China's economy that may keep the Fed from raising interest rates after the China Oct manufacturing PMI contracted for the third straight month. In addition, EUR/USD saw strength after ECB President Draghi cooled speculation the ECB will expand QE when he said that further monetary stimulus is still an "open question."
Dec crude oil (CLZ15 +0.76%) this morning is up +48 cents (+1.04%) and Dec gasoline (RBZ15 +0.74%) is up +0.0112 (+0.81%). Monday's closes: CLZ5-0.51 (-1.09%), RBZ5 +0.0023 (+0.17%). Dec crude oil and gasoline on Monday settled mixed. Crude oil prices was undercut by news that Russian Oct crude and gas condensate production rose +1.3% y/y to a record 10.78 million bpd. In addition, there were Chinese demand concerns after the China Oct manufacturing PMI contracted for the third straight month. Crude oil prices found support from a weaker dollar and the rally in the S&P 500 to a 2-3/4 month high.
GLOBAL EVENT CALENDAR11/03/2015
|US||0945 ET||Oct New York ISM expected +1.2 to 45.7, Sep -6.6 to 44.5.|
|1000 ET||Sep factory orders expected -0.9%, Aug -1.7% and -0.8% ex transportation.|
|n/a||Oct total vehicle sales expected 17.70 million, Sep 18.07 million. Oct domestic sales expected 14.05 million, Sep 14.36 million.|
|UK||0430 ET||UK Oct Markit/CIPS construction PMI expected -1.1 to 58.8, Sep 59.9.|
|1901 ET||UK Oct BRC shop price index, Sep -1.9% y/y.|
|EUR||1300 ET||ECB President Mario Draghi speaks at the European Cultural Days 2015 event in Frankfurt.|
|JPN||2035 ET||Japan Oct Nikkei services PMI, Sep 51.4.|
|n/a||Japanese markets closed for Culture Day.|
|CHI||2045 ET||China Oct Caixin services PMI, Sep 50.5.|
U.S. STOCK CALENDAR11/03/2015
|Archer-Daniels-Midland Co||ADM US||Bef-mkt||Q3 2015 Earnings Release||Q3 2015||0.696|
|Frontier Communications Corp||FTR US||Bef-mkt||Q3 2015 Earnings Release||Q3 2015||-0.006|
|Emerson Electric Co||EMR US||Bef-mkt||Q4 2015 Earnings Release||Q4 2015||0.968|
|HCP Inc||HCP US||Bef-mkt||Q3 2015 Earnings Release||Q3 2015||0.782|
|NiSource Inc||NI US||Bef-mkt||Q3 2015 Earnings Release||Q3 2015||0.025|
|Vulcan Materials Co||VMC US||Bef-mkt||Q3 2015 Earnings Release||Q3 2015||0.968|
|Expeditors International of Washington Inc||EXPD US||Bef-mkt||Q3 2015 Earnings Release||Q3 2015||0.6|
|Martin Marietta Materials Inc||MLM US||Bef-mkt||Q3 2015 Earnings Release||Q3 2015||2.171|
|Fidelity National Information Services Inc||FIS US||Bef-mkt||Q3 2015 Earnings Release||Q3 2015||0.904|
|Zoetis Inc||ZTS US||Bef-mkt||Q3 2015 Earnings Release||Q3 2015||0.397|
|Columbia Pipeline Group Inc||CPGX US||Bef-mkt||Q3 2015 Earnings Release||Q3 2015||0.208|
|Harris Corp||HRS US||6:30||Q1 2016 Earnings Release||Q1 2016||1.283|
|Mosaic Co/The||MOS US||7:00||Q3 2015 Earnings Release||Q3 2015||0.53|
|Discovery Communications Inc||DISCA US||7:00||Q3 2015 Earnings Release||Q3 2015||0.42|
|McGraw Hill Financial Inc||MHFI US||7:15||Q3 2015 Earnings Release||Q3 2015||1.063|
|American International Group Inc||AIG US||8:00||Q3 2015 Earnings Call||Q3 2015|
|Kellogg Co||K US||8:00||Q3 2015 Earnings Release||Q3 2015||0.837|
|Dun & Bradstreet Corp/The||DNB US||8:00||Q3 2015 Earnings Call||Q3 2015|
|Frontier Communications Corp||FTR US||8:30||Q3 2015 Earnings Call||Q3 2015|
|Harris Corp||HRS US||8:30||Q1 2016 Earnings Call||Q1 2016|
|McGraw Hill Financial Inc||MHFI US||8:30||Q3 2015 Earnings Call||Q3 2015|
|Fidelity National Information Services Inc||FIS US||8:30||Q3 2015 Earnings Call||Q3 2015|
|Discovery Communications Inc||DISCA US||8:30||Q3 2015 Earnings Call||Q3 2015|
|Zoetis Inc||ZTS US||8:30||Q3 2015 Earnings Call||Q3 2015|
|Archer-Daniels-Midland Co||ADM US||9:00||Q3 2015 Earnings Call||Q3 2015|
|NiSource Inc||NI US||9:00||Q3 2015 Earnings Call||Q3 2015|
|Eversource Energy||ES US||9:00||Q3 2015 Earnings Call||Q3 2015|
|Morgan Stanley||MS US||9:00||Fixed Income Investor Conference Call|
|General Growth Properties Inc||GGP US||9:00||Q3 2015 Earnings Call||Q3 2015|
|Allstate Corp/The||ALL US||9:00||Q3 2015 Earnings Call||Q3 2015|
|Sempra Energy||SRE US||9:00||Q3 2015 Earnings Release||Q3 2015||0.883|
|Mosaic Co/The||MOS US||9:00||Q3 2015 Earnings Call||Q3 2015|
|Ford Motor Co||F US||9:15||October 2015 Sales and Revenue Release||2015|
|Kellogg Co||K US||9:30||Q3 2015 Earnings Call||Q3 2015|
|Columbia Pipeline Group Inc||CPGX US||9:30||Q3 2015 Earnings Call||Q3 2015|
|Ford Motor Co||F US||10:00||October 2015 Sales and Revenue Call||2015|
|Tenet Healthcare Corp||THC US||10:00||Q3 2015 Earnings Call||Q3 2015|
|Vornado Realty Trust||VNO US||10:00||Q3 2015 Earnings Call||Q3 2015|
|Biogen Inc||BIIB US||10:00||Investor R&D Day||Y 2015|
|Pioneer Natural Resources Co||PXD US||10:00||Q3 2015 Earnings Call||Q3 2015|
|HCP Inc||HCP US||12:00||Q3 2015 Earnings Call||Q3 2015|
|L Brands Inc||LB US||12:00||Investor Day||Y 2015|
|Varian Medical Systems Inc||VAR US||12:00||Investor Meeting||Y 2015|
|Vulcan Materials Co||VMC US||12:00||Q3 2015 Earnings Call||Q3 2015|
|Symantec Corp||SYMC US||12:00||Annual General Meeting||Y 2015|
|Sempra Energy||SRE US||13:00||Q3 2015 Earnings Call||Q3 2015|
|Emerson Electric Co||EMR US||14:00||Q4 2015 Earnings Call||Q4 2015|
|Martin Marietta Materials Inc||MLM US||14:00||Q3 2015 Earnings Call||Q3 2015|
|Cerner Corp||CERN US||16:01||Q3 2015 Earnings Release||Q3 2015||0.544|
|CBS Corp||CBS US||16:01||Q3 2015 Earnings Release||Q3 2015||0.805|
|Activision Blizzard Inc||ATVI US||16:30||Q3 2015 Earnings Call||Q3 2015|
|Cerner Corp||CERN US||16:30||Q3 2015 Earnings Call||Q3 2015|
|CBS Corp||CBS US||16:30||Q3 2015 Earnings Call||Q3 2015|
|DaVita HealthCare Partners Inc||DVA US||17:00||Q3 2015 Earnings Call||Q3 2015|
|ONEOK Inc||OKE US||Aft-mkt||Q3 2015 Earnings Release||Q3 2015||0.403|
|Cablevision Systems Corp||CVC US||Aft-mkt||Q3 2015 Earnings Release||Q3 2015||0.226|
|Newfield Exploration Co||NFX US||Aft-mkt||Q3 2015 Earnings Release||Q3 2015||0.154|
|Apartment Investment & Management Co||AIV US||Aft-mkt||Q3 2015 Earnings Release||Q3 2015||0.564|
|DaVita HealthCare Partners Inc||DVA US||Aft-mkt||Q3 2015 Earnings Release||Q3 2015||0.965|
|Devon Energy Corp||DVN US||Aft-mkt||Q3 2015 Earnings Release||Q3 2015||0.525|
|Cimarex Energy Co||XEC US||Aft-mkt||Q3 2015 Earnings Release||Q3 2015||-0.075|
|Sigma-Aldrich Corp||SIAL US||Q3 2015 Earnings Release||Q3 2015||1.055|
|Delta Air Lines Inc||DAL US||October 2015 Sales and Revenue Release - Traffic Results||2015|