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OVERNIGHT MARKETS AND NEWS
Mar E-mini S&Ps (ESH18 -0.09%) this morning are down -0.07% as they retreated from a new record nearest-futures high in overnight trade. Mar E-mini S&Ps had risen to a new record high after President Trump signed a stopgap funding bill to end the government shutdown that will fund the government through Feb 8. However, a sell-off in mining stocks led the overall market lower after Mar COMEX copper (HGH18 -1.95%) tumbled -1.80% to a 6-week low on signs of ample supplies when LME copper inventories surged by +36,300 MT to a 2-1/4 month high of 248,075 MT. European stocks are up +0.12% at a 2-1/2 month high and found support after the German Jan ZEW survey expectations of economic growth rose +3.0 to an 8-month high of 20.4. European stocks also fell back from their best levels on weakness in mining stocks. Asian stocks settled higher: Japan +1.29%, Hong Kong +1.66%, China +1.29%, Taiwan +0.19%, Australia +0.75%, Singapore +0.63%, South Korea +1.43%, India +0.96%. Asian markets shrugged off the negative trade implications of President Trump's tariffs on solar panels and washing machines and moved higher, with the Shanghai Composite at a new 2-year high and the Nikkei Stock Index at a new 26-year high after BOJ Governor Kuroda signaled the BOJ will maintain its overly easy monetary policies following today's BOJ policy meeting.
Mar 10-year T-note prices (ZNH18 +0.19%) are up +8 ticks.
The BOJ voted 8-1 to keep its interest rates and asset purchases at current levels following their 2-day policy meeting. The BOJ also kept its price and economic forecasts unchanged and BOJ Governor Kuroda said the BOJ must maintain its current monetary easing program as inflation is still distant from its 2% target and price risks remain "skewed to the downside."
The German Jan ZEW survey expectations of economic growth rose +3.0 to an 8-month high of 20.4, stronger than expectations of +0.3 to 17.7.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) Jan Richmond Fed manufacturing index (expected -1 to 19, Dec -10 to 20), (2) Treasury auctions $26 billion of 2-year T-notes, (3) USDA Dec Cold Storage.
Notable S&P 500 earnings reports today include: Capital One (consensus $1.87), Johnson & Johnson (1.72), Procter & Gamble (1.14), Texas Instruments (1.09), Verizon (0.88), Navigent (0.42).
U.S. IPO's scheduled to price today: Pagseguro Digital (PAGS).
Equity conferences this week: U.S. Capital Advisors Midstream Corporate Access Day on Tue, National Business Aviation Association Regional Conference on Wed.
OVERNIGHT U.S. STOCK MOVERS
Netflix (NFLX +3.23%) climbed 9% in after-hours trading after it reported Q4 revenue of $3.29 billion, above consensus of $3.28 billion, and said it sees Q1 domestic streaming net additions of 1.45 million, higher than consensus of 1.28 million.
ResMed (RMD -1.32%) jumped over 11% in after-hours trading after it reported Q2 revenue of $601.3 million, better than consensus of $581.7 million.
ONEOK (OKE +2.67%) gained almost 2% in after-hours trading after it said it sees 2018 net income of $955 million to $1.16 billion, well above consensus of $874 million.
Rockwell Automation (ROK +0.21%) was rated a new 'Buy' at UBS with a 12-month target price of $240.
Whirlpool (WHR -0.53%) rose 3% in after-hours trading after President Trump imposed a tariff of up to the legal maximum of 50% on imports of large residential washing machines.
First Solar (FSLR -1.53%) rallied 5%, SunPower (SPWR +0.81%) climbed 4% and Vivint Solar (VSLR -4.05%) gained more than 1% in after-hours trading after President Trump imposed a 30% tariff on solar imports to the U.S.
Caterpillar (CAT +0.28%) was upgraded to 'Buy' from 'Neutral' at Seaport Global with a price target of $195.
TD Ameritrade Holding (AMTD +1.29%) gained 2% in after-hours trading after it said it sees full-year adjusted EPS of $2.55 to $3.05, the midpoint above consensus of $2.71.
Ultragenyx Pharmaceutical (RARE +8.60%) fell 2% in after-hours trading after it proposed a public offering of $175 million of its common stock.
Adamas Pharmaceuticals (ADMS +6.81%) lost 5% in after-hours trading after it announced it intends to sell $85 million of its common stock in an underwritten public offering.
Stemline Therapeutics (STML +5.17%) slid almost 5% in after-hours trading after it announced it intends to sell 3.7 million shares of its common stock in an underwritten public offering.
Jamba (JMBA -0.11%) dropped nearly 6% in after-hours trading after holders offered a 2.1 million block of shares at $8.25-$8.40.
ShiftPixy (PIXY +6.79%) rallied over 12% in after-hours trading after it reported Q1 revenue jumped +14.6% y/y to $6.5 million and Q1 gross billings climbed +14.7% y/y to $40.2 million.
Harvard Bioscience (HBIO -1.27%) jumped over 15% in after-hours trading after it sold its subsidiary Denville Scientific to Thomas Scientific for $20 million and acquired Data Sciences International for about $70 million.
Mar S&P 500 E-mini stock futures (ESH18 -0.09%) this morning are down -2.00 points (-0.07%) after it had rallied to a new record hign in overnight trade. Monday's closes: S&P 500 +0.81%, Dow Jones +0.55%, Nasdaq +1.05%. The S&P 500 rallied to a fresh record high and closed higher on the end of the 3-day U.S. government shutdown and the IMF's hike in its global 2018 GDP estimate to 3.9% from an Oct forecast of 3.7%, the fastest pace of expansion in 7 years. There was also increased M&A activity after Celgene acquired Juno Therapeutics for $9 billion and Sanofi bought Bioverativ for $11.6 billion.
Mar 10-year T-note prices (ZNH18 +0.19%) this morning are up +8 ticks. Monday's closes: TYH8 -6.00, FVH8 -3.50. Mar 10-year T-notes on Monday fell to a new contract low and the 10-year T-note yield rose to a new 3-1/2 year high. T-note prices were undercut by the rally in the S&P 500 to a new all-time high, which curbs the safe-haven demand for T-notes, and by hawkish comments from San Francisco Fed President Williams who said there’s a greater chance of economic performance prompting four rate hikes this year than a downturn that would force policymakers to pull back on expectations of three quarter-point rate hikes.
The dollar index (DXY00 +0.09%) this morning is up +0.093 (+0.10%). EUR/USD (^EURUSD) is down -0.0026 (-0.21%) and USD/JPY (^USDJPY) down -0.41 (-0.37%). Monday's closes: Dollar Index -0.171 (-0.19%), EUR/USD +0.0040 (+0.33%), USD/JPY +0.15 (+0.14%). The dollar index on Monday closed lower on strength in EUR/USD on improved prospects for a coalition government in Germany after Social Democrats on Sunday voted in favor of beginning formal coalition talks with Chancellor Merkel's Christian Democratic Party.
Mar crude oil (CLH18 +0.42%) this morning is unch and Mar gasoline (RBH18 +0.60%) is +0.0086 (+0.46%). Monday's closes: Mar WTI crude +0.26 (+0.41%), Mar gasoline +0.0154 (+0.83%). Mar crude oil and gasoline on Monday closed higher on a weaker dollar, on comments from Russian Energy Minister Novak who said Russia is prepared to continue cooperating with OPEC even after the current crude production cut agreement expires, and on comments from Oman Oil Minister Mohammed Al Rumhy who said OPEC and its allies see merit in maintaining their crude output limits into 2019.
Metals prices this morning are mixed with Feb gold +4.4 (0+.33%), Mar silver -0.014 (-0.08%), and Mar copper -0.058(-1.80%) at a 6-week low. Monday's closes: Feb gold -1.2 (-0.09%), Mar silver -0.047 (-0.28%), Mar copper +0.0110 (+0.35%). Metals on Monday settled mixed. Metals prices were boosted by a weaker dollar and fund-buying of gold as gold holdings in ETFs rose to a 4-1/2 year high of 2,249.02 MT on Friday. Metals prices were undercut by increased Chinese copper production as 2017 refined copper production rose +7.7% y/y to a record high 8.89 MMT and by the rally in the S&P 500 to a new record high, which reduced safe-haven demand for precious metals.
GLOBAL EVENT CALENDAR01/23/2018
|Tuesday, Jan 23|
|US||1000 ET||Jan Richmond Fed manufacturing index expected -2 to 18, Dec -10 to 20.|
|1300 ET||Treasury auctions $26 billion of 2-year T-notes.|
|1500 ET||USDA Dec Cold Storage.|
|Wednesday, Jan 24|
|US||0700 ET||Weekly MBA mortgage applications, previous +4.1% with purchase sub-index +2.7% and refi sub-index +4.4%.|
|0900 ET||Nov FHFA house price index expected +0.5% m/m, Oct +0.5% m/m.|
|0945 ET||Jan Markit manufacturing PMI expected -0.1 to 55.0, Dec +1.2 to 55.1. Jan Markit services PMI expected +0.5 to 54.2, Dec -0.8 to 53.7.|
|1000 ET||Dec existing home sales expected -1.9% to 5.70 million, Nov +5.6% to 5.81 million.|
|1030 ET||EIA weekly Petroleum Status Report.|
|1130 ET||Treasury auctions $15 billion 2-year floating-rate notes.|
|1300 ET||Treasury auctions $34 billion 5-year T-notes.|
U.S. STOCK CALENDAR01/23/2018
|Prologis Inc||PLD US||Bf-Mkt||Q4 2017 Earnings Release||Q4 17||0.663|
|State Street Corp||STT US||Bf-mkt||Q4 2017 Earnings Release||Q4 17||1.699|
|Waters Corp||WAT US||Bf-mkt||Q4 2017 Earnings Release||Q4 17||2.451|
|Huntington Bancshares Inc/OH||HBAN US||Bf-mkt||Q4 2017 Earnings Release||Q4 17||0.262|
|Fifth Third Bancorp||FITB US||06:30||Q4 2017 Earnings Release||Q4 17||0.477|
|Johnson & Johnson||JNJ US||06:40||Q4 2017 Earnings Release||Q4 17||1.724|
|Procter & Gamble Co/The||PG US||07:00||Q2 2018 Earnings Release||Q2 18||1.139|
|Verizon Communications Inc||VZ US||07:00||Q4 2017 Earnings Release||Q4 17||0.884|
|Kimberly-Clark Corp||KMB US||07:30||Q4 2017 Earnings Release||Q4 17||1.545|
|Waters Corp||WAT US||08:00||Q4 2017 Earnings Call||Q4 17|
|Procter & Gamble Co/The||PG US||08:30||Q2 2018 Earnings Call||Q2 18|
|Johnson & Johnson||JNJ US||08:30||Q4 2017 Earnings Call||Q4 17|
|Verizon Communications Inc||VZ US||08:30||Q4 2017 Earnings Call||Q4 17|
|Travelers Cos Inc/The||TRV US||09:00||Q4 2017 Earnings Call||Q4 17|
|Travelers Cos Inc/The||TRV US||09:00||Q4 2017 Earnings Release||Q4 17||1.502|
|Fifth Third Bancorp||FITB US||09:00||Q4 2017 Earnings Call||Q4 17|
|Huntington Bancshares Inc/OH||HBAN US||09:00||Q4 2017 Earnings Call||Q4 17|
|State Street Corp||STT US||09:30||Q4 2017 Earnings Call||Q4 17|
|Kimberly-Clark Corp||KMB US||10:00||Q4 2017 Earnings Call||Q4 17|
|Prologis Inc||PLD US||12:00||Q4 2017 Earnings Call||Q4 17|
|Becton Dickinson and Co||BDX US||13:00||Annual General Meeting|
|Texas Instruments Inc||TXN US||16:00||Q4 2017 Earnings Release||Q4 17||1.086|
|Navient Corp||NAVI US||Aft-mkt||Q4 2017 Earnings Release||Q4 17||0.416|
|United Continental Holdings Inc||UAL US||Aft-mkt||Q4 2017 Earnings Release||Q4 17||1.314|
|Capital One Financial Corp||COF US||16:05||Q4 2017 Earnings Release||Q4 17||1.872|
|Total System Services Inc||TSS US||16:15||Q4 2017 Earnings Release||Q4 17||0.785|
|United Continental Holdings Inc||UAL US||16:30||Investor Day|
|Texas Instruments Inc||TXN US||16:30||Q4 2017 Earnings Call||Q4 17|
|Total System Services Inc||TSS US||17:00||Q4 2017 Earnings Call||Q4 17|
|Capital One Financial Corp||COF US||17:00||Q4 2017 Earnings Call||Q4 17|