Barchart.com - Wed Aug 2, 6:36AM CDT
OVERNIGHT MARKETS AND NEWS
Sep E-mini S&Ps (ESU17 +0.02%) this morning are up +0.06% due to strength in technology stocks as shares of Apple rally 6% in pre-market trading after it gave an upbeat revenue forecast ahead of the launch of its new iPhone next quarter. Apple suppliers Cirrus Logic and Skyworks Solutions are also up 3% in pre-market trading. European stocks are down -0.14% as exporter stocks decline after EUR/USD (^EURUSD) climbed to a new 2-1/2 year high, which undercuts European exporters' earnings prospects. Asian stocks settled mixed: Japan +0.47%, Hong Kong +0.24%, China -0.23%, Taiwan +0.79%, Australia -0.49%, Singapore +0.32%, South Korea +0.21%, India -0.30%. A rally in technology stocks in Asia after Apple's upbeat revenue forecast sent China's Shanghai Composite up to a 2-1/2 year high, although losses in raw-material producing stocks spurred long liquidation and the Shanghai Composite gave up its gains and closed lower.
Sep 10-year T-note prices (ZNU17 -0.14%) are down -4.5 ticks ahead of the Treasury's announcement later this morning on the size of next week's quarterly refunding.
As expected, the Reserve Bank of India (RBI) cut its repurchase rate by 25 bp to 6.00% from 6.25% in a 5-1 vote and said, "some of the upside risks to inflation have either reduced or not materialized."
Eurozone Jun PPI of -0.1% m/m and +2.5% y/y was right on expectations with the +2.5% y/y gain the smallest year-on-year increase in 6-months.
The Japan Jul consumer confidence index rose +0.5 to 43.8, stronger than expectations of +0.2 to 43.5 and a 4-month high.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) weekly MBA mortgage applications (previous +0.4%, purchase sub-index -2.2%, refi sub-index +3.4%), (2) Jul ADP employment (expected +190,000, Jun +158,000), (3) Cleveland Fed President Lorretta Mester (non-voter) is keynote speaker at the Community Bankers Association of Ohio annual convention, (4) San Francisco Fed President John Williams (non-voter) speaks at an event in Las Vegas on “Monetary Policy’s Role in Fostering Sustainable Growth,” (5) EIA Weekly Petroleum Status Report.
Notable S&P 500 earnings reports today include: Time Warner (consensus $1.19), Exelon (0.52), Humana (3.07), Southern Co (0.71), Lincoln National (1.75), Occidental Petroleum (0.09), Prudential Financial (2.70), Williams Cos (0.20), MetLife (1.28), Fortune Brands (0.87), Marathon Oil (-0.15), Symantec (0.31), AIG (1.20).
U.S. IPO's scheduled to price today: Venator Materials (VNTR).
Equity conferences this week: UBS Transport Conference on Thu.
OVERNIGHT U.S. STOCK MOVERS
Apple (AAPL +0.89%) rallied over 6% in pre-market trading to a record high after it reported Q3 EPS of $1.67, better than consensus of $1.57, and then said it sees Q4 revenue of $49 billion-$52 billion, the midpoint well above consensus of $49.12 billion. Apple suppliers Cirrus Logic (CRUS +2.67%) and Skyworks Solutions (SWKS -0.56%) are also up 3% in pre-market trading.
Ultimate Software Group (ULTI +0.57%) tumbled 11% in after-hours trading after it reported Q2 revenue of $224.7 million, weaker than consensus of $228 million, and then said it sees Q3 revenue of $201 million-$203 million, below consensus of $245.4 million.
Illumina (ILMN -0.89%) jumped 9% in after-hours trading after it reported Q2 adjusted EPS 0of 82 cents, better than consensus of 68 cents, and then said it sees full-year adjusted EPS of $3.560-$3.70, the midpoint above consensus of $3.63.
Allstate (ALL unch) gained 2% in after-hours trading after it reported Q2 operating EPS of $1.38, well above consensus of 87 cents and said its board approved a new $2 billion share repurchase program.
Fiserv (FISV +0.60%) dropped over 2% in after-hours trading after it reported Q2 adjusted EPS of $1.19, less than consensus of $1.23, and then said it sees full-year adjusted EPS of $5.02-$5.17, the midpoint below consensus of $5.12.
Hanesbrands (HBI +0.52%) rose over 3% in after-hours trading after it said it sees full-year net sales of $6.45 billion to $6.55 billion, above consensus of $6.44 billion.
Terex (TEX -1.22%) rose 4% in after-hours trading after it raised guidance on its full-year EPS view to $1.05-$1.15 from a prior view of 80 cents-95 cents, above consensus of 98 cents.
Coherent (COHR +2.26%) sank 18% in after-hours trading after it reported Q3 net sales of $464.1 million, weaker than consensus of $467 million.
Herbalife (HLF +0.02%) lost 4% in after-hours trading after it said it sees full-year adjusted EPS of $4.30-$4.70, the midpoint below consensus of $4.62.
FireEye (FEYE +0.41%) climbed nearly 7% in after-hours trading after it reported a Q2 adjusted loss of -4 cents per share, a smaller loss than expectations of -12 cents, and then raised its 2017 revenue estimate to $734 million-$746 million from a prior view of $724 million-$736 million.
MACOM Technology Solutions Holdings (MTSI +0.84%) plunged 20% in after-hours trading after it reported Q3 adjusted EPS of 67 cents, weaker than consensus of 68 cents, and then said it sees Q4 adjusted EPS of 45 cents-50 cents, below consensus of 75 cents.
Frontier Communications (FTR +3.79%) lost nearly 6% in after-hours trading after it reported a Q2 adjusted loss per share of -$1.10, a wider loss than expectations of -$1.02.
Big 5 Sporting Goods (BGFV +1.86%) tumbled over 13% in after-hours trading after it said it expects Q3 same store sales to be in the negative low single-digit range with Q3 EPS of 22 cents-32 cents, below consensus of 39 cents.
Sep S&P 500 E-mini stock futures (ESU17 +0.02%) this morning are up +1.50 points (+0.06%). Tuesday's closes: S&P 500 +0.24%, Dow Jones +0.33%, Nasdaq +0.25%. The S&P 500 on Tuesday closed higher on signs of strength in the global economy after Eurozone Q2 GDP grew at a +2.1% y/y pace, the strongest year-on-year increase in 6 years, and after the China Jul Caixin manufacturing PMI rose +0.7 to 51.1, the fastest pace of expansion in 4 months. Stocks also continued to see underlying strength from the positive Q2 earnings season. Stocks were undercut by the U.S. Jun personal income report of unchanged (weaker expectations of +0.4%) and by the unexpected -1.3% decline in U.S. Jun construction spending (weaker than expectations of +0.4%).
Sep 10-year T-note prices (ZNU17 -0.14%) this morning are down -4.5 ticks. Tuesday's closes: TYU7 +11, FVU7 +4.75. Sep 10-year T-notes on Tuesday closed higher on the unexpected stagnation in U.S. Jun personal income report of unchanged (weaker than expectations of +0.4%) and the unexpected -1.3% m/m decline in U.S. Jun construction spending. T-notes were also supported by the -2% slide in crude oil prices, which reduces inflation expectations.
The dollar index (DXY00 -0.07%) this morning is down -0.067 (-0.07%). EUR/USD (^EURUSD) is up +0.0030 (+0.25%) at a new 2-1/2 year high and USD/JPY (^USDJPY) is up +0.38 (+0.34%). Tuesday's closes: Dollar Index +0.180 (+0.19%), EUR/USD -0.0040 (-0.34%), USD/JPY +0.10 (+0.09%). The dollar index on Tuesday closed higher on weakness in the currencies of the crude-oil-exporting countries of Canada and Russia after crude oil prices tumbled -2%. The dollar also found support on U.S. Jul ISM manufacturing index report of -1.5 to 56.3, which was close to expectations and signaled that U.S. manufacturing activity remains in expansionary territory.
Sep crude oil (CLU17 -0.02%) this morning is up +7 cents (+0.14%). Sep gasoline (RBU17 +0.12%) is up +0.0034 (+0.20%). Tuesday's closes: Sep WTI crude -1.01 (-2.01%), Sep gasoline -0.0153 (-0.91%). Sep crude oil and gasoline on Tuesday closed lower on a stronger dollar and on increased OPEC crude output that may prolong the global oil glut after OPEC Jul crude production rose +210,000 bpd to 7-month high of 32.87 million bpd.
GLOBAL EVENT CALENDAR08/02/2017
|Wednesday, Aug 2|
|US||0700 ET||Weekly MBA mortgage applications, previous +0.4%, purchase sub-index -2.2%, refi sub-index +3.4%.|
|0815 ET||Jul ADP employment change expected +190,000, Jun +158,000.|
|0830 ET||Treasury announces amount of 3-year T-notes (previous $24 billion), 10-year T-notes (previous $20 billion) and 30-year T-bonds (previous $12 billion) to be auctioned Aug 8-10 in the Treasurys quarterly refunding.|
|1030 ET||EIA Weekly Petroleum Status Report.|
|1200 ET||Cleveland Fed President Lorretta Mester (non-voter) is keynote speaker at the Community Bankers Association of Ohio annual convention.|
|1530 ET||San Francisco Fed President John Williams (non-voter) speaks at an event in Las Vegas on Monetary Policys Role in Fostering Sustainable Growth.|
|Thursday, Aug 3|
|US||0730 ET||Jul Challenger job cuts, Jun -19.3% y/y.|
|0830 ET||Weekly initial unemployment claims expected -2,000 to 242,000, previous +10,000 to 244,000. Weekly continuing claims expected -6,000 to 1.958 million, previous -13,000 to 1.964 million.|
|0830 ET||USDA weekly Export Sales.|
|0945 ET||Final-Jul Markit U.S. services PMI expected unch at 54.2, prelim-Jul unch at 54.2.|
|1000 ET||Jul ISM non-manufacturing expected -0.5 to 56.9, Jun +0.5 to 57.4.|
|1000 ET||Jun factory orders expected +3.0%, May -0.8% and -0.3% ex transportation.|
U.S. STOCK CALENDAR08/02/2017
|GGP Inc||GGP US||Bef-mkt||Q2 2017 Earnings Release||Q2 17||0.353|
|Cardinal Health Inc||CAH US||Bef-mkt||Q4 2017 Earnings Release||Q4 17||1.244|
|Fidelity National Information Services Inc||FIS US||Bef-mkt||Q2 2017 Earnings Release||Q2 17||0.972|
|Vulcan Materials Co||VMC US||Bef-mkt||Q2 2017 Earnings Release||Q2 17||1.201|
|AMETEK Inc||AME US||Bef-mkt||Q2 2017 Earnings Release||Q2 17||0.623|
|Time Warner Inc||TWX US||Bef-mkt||Q2 2017 Earnings Release||Q2 17||1.19|
|Dominion Energy Inc||D US||Bef-mkt||Q2 2017 Earnings Release||Q2 17||0.667|
|AutoNation Inc||AN US||Bef-mkt||Q2 2017 Earnings Release||Q2 17||0.972|
|Exelon Corp||EXC US||Bef-mkt||Q2 2017 Earnings Release||Q2 17||0.524|
|Entergy Corp||ETR US||Bef-mkt||Q2 2017 Earnings Release||Q2 17||1.184|
|Garmin Ltd||GRMN US||Bef-mkt||Q2 2017 Earnings Release||Q2 17||0.809|
|NiSource Inc||NI US||Bef-mkt||Q2 2017 Earnings Release||Q2 17||0.101|
|Humana Inc||HUM US||06:30||Q2 2017 Earnings Release||Q2 17||3.068|
|Delphi Automotive PLC||DLPH US||06:45||Q2 2017 Earnings Release||Q2 17||1.655|
|Mondelez International Inc||MDLZ US||07:00||Q2 2017 Earnings Release||Q2 17||0.457|
|Southern Co/The||SO US||07:30||Q2 2017 Earnings Release||Q2 17||0.709|
|Level 3 Communications Inc||LVLT US||08:00||Q2 2017 Earnings Release||Q2 17||0.376|
|Mondelez International Inc||MDLZ US||08:00||Q2 2017 Earnings Call||Q2 17|
|Molson Coors Brewing Co||TAP US||08:00||Q2 2017 Earnings Release||Q2 17||2.117|
|Principal Financial Group Inc||PFG US||08:00||Roadshow - Day 1|
|Assurant Inc||AIZ US||08:00||Q2 2017 Earnings Call||Q2 17|
|Cardinal Health Inc||CAH US||08:30||Q4 2017 Earnings Call||Q4 17|
|Fidelity National Information Services Inc||FIS US||08:30||Q2 2017 Earnings Call||Q2 17|
|AMETEK Inc||AME US||08:30||Q2 2017 Earnings Call||Q2 17|
|Verisk Analytics Inc||VRSK US||08:30||Q2 2017 Earnings Call||Q2 17|
|NiSource Inc||NI US||08:30||Q2 2017 Earnings Call||Q2 17|
|GGP Inc||GGP US||09:00||Q2 2017 Earnings Call||Q2 17|
|Range Resources Corp||RRC US||09:00||Q2 2017 Earnings Call||Q2 17|
|Humana Inc||HUM US||09:00||Q2 2017 Earnings Call||Q2 17|
|FMC Corp||FMC US||09:00||Q2 2017 Earnings Call||Q2 17|
|EOG Resources Inc||EOG US||09:00||Q2 2017 Earnings Call||Q2 17|
|Allstate Corp/The||ALL US||09:00||Q2 2017 Earnings Call||Q2 17|
|Delphi Automotive PLC||DLPH US||09:00||Q2 2017 Earnings Call||Q2 17|
|Dominion Energy Inc||D US||09:00||Q2 2017 Earnings Call||Q2 17|
|Pioneer Natural Resources Co||PXD US||10:00||Q2 2017 Earnings Call||Q2 17|
|Boston Properties Inc||BXP US||10:00||Q2 2017 Earnings Call||Q2 17|
|Entergy Corp||ETR US||10:00||Q2 2017 Earnings Call||Q2 17|
|Garmin Ltd||GRMN US||10:30||Q2 2017 Earnings Call||Q2 17|
|Devon Energy Corp||DVN US||11:00||Q2 2017 Earnings Call||Q2 17|
|Newfield Exploration Co||NFX US||11:00||Q2 2017 Earnings Call||Q2 17|
|Extra Space Storage Inc||EXR US||11:00||Q2 2017 Earnings Call||Q2 17|
|Vulcan Materials Co||VMC US||11:00||Q2 2017 Earnings Call||Q2 17|
|Molson Coors Brewing Co||TAP US||11:00||Q2 2017 Earnings Call||Q2 17|
|ONEOK Inc||OKE US||11:00||Q2 2017 Earnings Call||Q2 17|
|AutoNation Inc||AN US||11:00||Q2 2017 Earnings Call||Q2 17|
|Exelon Corp||EXC US||11:00||Q2 2017 Earnings Call||Q2 17|
|Southern Co/The||SO US||13:00||Q2 2017 Earnings Call||Q2 17|
|Lincoln National Corp||LNC US||Aft-mkt||Q2 2017 Earnings Release||Q2 17||1.745|
|CenturyLink Inc||CTL US||Aft-mkt||Q2 2017 Earnings Release||Q2 17||0.489|
|Occidental Petroleum Corp||OXY US||Aft-mkt||Q2 2017 Earnings Release||Q2 17||0.089|
|Prudential Financial Inc||PRU US||Aft-mkt||Q2 2017 Earnings Release||Q2 17||2.703|
|Concho Resources Inc||CXO US||Aft-mkt||Q2 2017 Earnings Release||Q2 17||0.428|
|Macerich Co/The||MAC US||Aft-mkt||Q2 2017 Earnings Release||Q2 17||0.937|
|CF Industries Holdings Inc||CF US||Aft-mkt||Q2 2017 Earnings Release||Q2 17||(0.015)|
|Williams Cos Inc/The||WMB US||Aft-mkt||Q2 2017 Earnings Release||Q2 17||0.202|
|MetLife Inc||MET US||Aft-mkt||Q2 2017 Earnings Release||Q2 17||1.281|
|AvalonBay Communities Inc||AVB US||Aft-mkt||Q2 2017 Earnings Release||Q2 17||2.099|
|ANSYS Inc||ANSS US||Aft-mkt||Q2 2017 Earnings Release||Q2 17||0.914|
|Fortune Brands Home & Security Inc||FBHS US||Aft-mkt||Q2 2017 Earnings Release||Q2 17||0.872|
|Qorvo Inc||QRVO US||16:00||Q1 2018 Earnings Release||Q1 18||0.805|
|CA Inc||CA US||Aft-mkt||Q1 2018 Earnings Release||Q1 18||0.553|
|Citrix Systems Inc||CTXS US||Aft-mkt||Q2 2017 Earnings Release||Q2 17||0.996|
|Equinix Inc||EQIX US||Aft-mkt||Q2 2017 Earnings Release||Q2 17||3.305|
|American Water Works Co Inc||AWK US||Aft-mkt||Q2 2017 Earnings Release||Q2 17||0.792|
|Hologic Inc||HOLX US||Aft-mkt||Q3 2017 Earnings Release||Q3 17||0.494|
|Cincinnati Financial Corp||CINF US||Aft-mkt||Q2 2017 Earnings Release||Q2 17||0.495|
|Federal Realty Investment Trust||FRT US||Aft-mkt||Q2 2017 Earnings Release||Q2 17||1.458|
|Marathon Oil Corp||MRO US||Aft-mkt||Q2 2017 Earnings Release||Q2 17||(0.149)|
|Symantec Corp||SYMC US||16:05||Q1 2018 Earnings Release||Q1 18||0.307|
|American International Group Inc||AIG US||16:15||Q2 2017 Earnings Release||Q2 17||1.196|
|CenturyLink Inc||CTL US||16:30||Q2 2017 Earnings Call||Q2 17|
|Fortune Brands Home & Security Inc||FBHS US||16:30||Q2 2017 Earnings Call||Q2 17|
|Hologic Inc||HOLX US||16:30||Q3 2017 Earnings Call||Q3 17|
|Citrix Systems Inc||CTXS US||16:45||Q2 2017 Earnings Call||Q2 17|
|Qorvo Inc||QRVO US||17:00||Q1 2018 Earnings Call||Q1 18|
|Symantec Corp||SYMC US||17:00||Q1 2018 Earnings Call||Q1 18|
|CA Inc||CA US||17:00||Q1 2018 Earnings Call||Q1 18|
|Level 3 Communications Inc||LVLT US||17:30||Q2 2017 Earnings Call||Q2 17|
|Equinix Inc||EQIX US||17:30||Q2 2017 Earnings Call||Q2 17|