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Morning Call 9/4

Summary

News.

Earnings.

Conference calls.

Morning Call: Global Stocks Mixed; Sep E-Mini S&Ps Up +0.01%; Oct WTI Crude Up +2.13% At A 1-3/4 Month High As Tropical Storm Gordon Nears Oil Fields Along The U.S. Gulf. Coast

Barchart.com - 14 minutes ago

Overnight Markets And News

Sep E-mini S&Ps (ESU18 -0.19%) this morning are up +0.01% on strength in energy producing stocks with Oct WTI crude oil (CLV18 +1.91%) up +2.13% at a 1-3/4 month high. Crude oil rallied on concern about disruption of U.S. oil supplies as Tropical Storm Gordon approaches offshore oil fields along the U.S. Gulf Coast. Stock gains were limited on trade concerns as U.S. negotiators are in difficult talks with Canada over a revision to NAFTA. Also, President Trump on Thursday may announce implementation of tariffs on as much as $200 billion in additional Chinese goods. European stocks are down -0.88%, led by losses sin mining stocks and commodity producers, with Dec COMEX copper (HGZ18 -2.64%) down -2.43% at a 2-week low. A rally in the dollar index to a 1-week high pressured most metals prices, as did concern that implementation of additional U.S. tariffs on China will sink Chinese copper demand. Asian stocks settled mixed: Japan -0.05%, Hong Kong +0.94%, China +1.10%, Taiwan +0.52%, Australia -0.28%, Singapore +0.10%, South Korea +0.44%, India -0.40%. China's Shanghai Composite shed early losses and moved higher on strength in telecommunication stocks on reports the Chinese government is exploring a merger of China Unicom Hong Kong Ltd. and China Telecom Corp. Japan's Nikkei Stock Index fell to a 1-week low on trade tensions as the U.S. grapples with Canada and China over trade.

The dollar index (DXY00 +0.41%) is up +0.43% at a 1-week high. EUR/USD (^EURUSD -0.50%) is down -0.55% at a 1-week low. USD/JPY (^USDJPY +0.10%) is up +0.24%.

Dec 10-year T-note prices (ZNZ18 -0-025) are down -4.5 ticks.

Eurozone Jul PPI rose +0.4% m/m and +4.0% y/y, stronger than expectations of +0.3% m/m and +3.9% y/y with the +4.0% y/y gain the largest year-on-year increase in 15-months.

UK Aug Markit/CIPS construction PMI fell -2.9 to 52.9, weaker than expectations of -0.9 to 54.9.

U.S. Stock Preview

Key U.S. news today includes: (1) revised Aug Markit manufacturing PMI (prelim-Aug -0.8 to 54.5), (2) Jul construction spending (expected +0.5% m/m, Jun -1.1% m/m), (3) Aug ISM manufacturing index (expected -0.5 to 57.6, Jul -2.1 to 58.1), (4) Chicago Fed President Charles Evans (non-voter) takes part in a roundtable discussion on “Dealing with Monetary Policy Normalization” during a Central Bank of Argentina Money and Banking Conference in Buenos Aires.

Notable Russell 2000 earnings reports today include: WPP (consensus $0.43), Casey's General Store (1.68), Workday (0.26).

U.S. IPO's scheduled to price today: none.

Equity conferences during the remainder of this week: Artificial Intelligence Conference on Tue, Barclays CEO Energy Power Conference on Tue-Wed, Barclays Consumer Staples Conference on Tue-Thu, Baird Global Healthcare Conference on Wed, Cowen Global Transportation Conference on Wed, Buckingham Research Group Consumer Banking, Cards and Payments Conference on Wed, Evercore ISI Real Estate Conference on Wed, Guggenheim Securities Autos Technology Assembly on Wed, Goldman Sachs Global Retailing Conference on Wed-Thu, Keefe, Bruyette, & Woods Insurance Conference on Wed-Thu, UBS Global Chemicals & Paper and Packaging Conferences on Wed-Thu, Wells Fargo Health Care Conference on Wed-Thu, Citi Global Technology Conference on Wed-Fri, Citi Biotech Conference on Thu, Bank of America Merrill Lynch Media, Communications & Entertainment Conference on Thu-Fri, Good Food Conference on Thu-Fri.

Market Comments

Sep S&P 500 E-minis (ESU18 -0.19%) this morning are little changed, up +0.25 points (+0.01%). Friday's closes: S&P 500 +0.01%, Dow Jones -0.09%, Nasdaq 100 +0.16%. The S&P 500 on Friday closed little changed. Stocks were undercut by US/Chinese trade tensions on reports that the Trump administration will impose new tariffs on $200 billion of Chinese imports shortly after Sep 6. Stocks were also undercut by US/Canadian trade tensions on doubts about whether Canada would agree to revised NAFTA terms before Friday's U.S.-imposed deadline. Stocks found support on the stronger-than-expected final-Aug University of Michigan U.S. consumer sentiment index of +0.9 to 96.2 (vs expectations of +0.2 to 95.5).

Dec 10-year T-notes (ZNZ18 -0-025) this morning are down -4.5 ticks. Friday's closes: TYZ8 +3.5, FVZ8 +3.25. Dec 10-year T-notes on Friday closed higher on U.S. trade tensions with China and Canada. T-notes also found carry-over support from a rally in German bunds after the Eurozone Aug CPI report of +2.0% y/y was slightly weaker than market expectations of +2.1%. T-note prices were also supported by the -1.4 bp drop in the 10-year breakeven inflation expectations rate to 2.090%.

The dollar index (DXY00 +0.41%) this morning is up +0.406 (+0.43%) at a 1-week high, EUR/USD (^EURUSD -0.50%) is down -0.0064 (-0.55%) at a 1-week low, USD/JPY (^USDJPY +0.10%) is up +0.27 (+0.24%). Friday's closes: Dollar Index +0.417 (+0.44%), EUR/USD -0.0069 (-0.59%), USD/JPY +0.05 (+0.05%). The dollar index on Friday closed higher on the stronger-than-expected final-Aug University of Michigan U.S. consumer sentiment index of +0.9 to 96.2 (vs expectations of +0.2 to 95.5). There was also weakness in EUR/USD on the weaker-than-expected Eurozone Aug CPI report of +2.0% y/y (vs expectations of +2.1%).

Metals prices this morning are weaker with Dec gold (GCZ18 -0.59%) -7.0 (-0.58%) at a 1-week low, Dec silver SIZ18-2.11%) -0.287 (-1.97%) and Dec copper (HGZ18 -2.64%) down -0.065 (-2.43%) at a 2-week low. Friday's closes: Dec gold +1.7 (+0.14%), Dec silver -0.037 (-0.25%), Dec copper -4.65 (-1.71%). Metals on Friday closed mixed. Metals prices were undercut by the rally in the dollar index and by weakness in industrial metals on trade tensions.

Oct WTI crude oil prices (CLV18 +1.91%) this morning are sharply high by +$1.49 a barrel at a 1-3/4 month high and Oct gasoline (RBV18 +2.66%) is up +6.17 +3/09%) at a 1-month high. Friday's closes: Oct crude oil -0.45 (-0.64%), Oct gasoline -1.20 (-0.60%). Oct crude oil and gasoline on Friday closed lower on trade tensions and some pre-weekend long liquidation pressure after the sharp rally seen in the second half of August to Thursday's 1-1/2 month high.

Overnight U.S. Stock Movers

Cognizant Technology Solutions (CTSH +1.34%) was downgraded to 'Underperform' from 'Buy' as Bank of America/Merrill Lynch who lowered their price target on the stock to $81 from $91.

Signet Jewelers Ltd (SIG -5.14%) was downgraded to 'Sell' from 'Neutral' at Citigroup with a price target of $52.

Zumiez (ZUMZ +4.36%) was upgraded to 'Buy' from 'Hold' at Pivotal Research Group LLC with a price target of $36.

FifthThird Bancorp (FITB +0.51%) was upgraded to 'Outperform' from 'Neutral' at Wedbush with a price target of $34.

Albemarle (ALB +0.49%) was upgraded to 'Buy' from 'Hold' at SunTrust Robinson Humphrey with a price target of $115.

Crispr Therapeutics Files (CRSP +6.00%) fell -1% in after-hours trading on Friday after news that it will offer up to $125 million in new shares.

Burlington Stores (BURL +1.93%) was rated at Neutral at Goldman with a price target of $179.

Ross Stores (ROST +0.92%) was rated Neutral at Goldman with a price target of $104.

Macy's (M +1.61%) was rated as a Sell at Goldman with a price target of $33

Kohl's (KSS +1.06%) was trading as a Buy at Goldman with a price target of $91.

Nordstrom (JWN +0.96%) was rated as a Buy at Goldman with a price target of $73.

Dollar Tree (DLTR +0.92%) was downgraded to neutral at JPMorgan with price target of $90.

Catalyst Pharmaceuticals (CPRX +11.96%) rallied 4% in after-hours trading.

Related Symbols

Symbol

Last

Chg

%Chg

ESU18

2,897.00

-5.00

-0.17%

S&P 500 E-Mini

CLV18

71.12

+1.32

+1.89%

Crude Oil WTI

HGZ18

2.6040

-0.0670

-2.51%

High Grade Copper

DXY00

95.537

+0.397

+0.42%

U.S. Dollar Index

^EURUSD

1.15604

-0.00570

-0.49%

Euro Fx/U.S. Dollar

^USDJPY

111.234

+0.214

+0.19%

U.S. Dollar/Japanese Yen

ZNZ18

120-065

-0-020

-0.05%

10-Year T-Note

GCZ18

1,199.1

-7.6

-0.63%

Gold

SIZ18

14.210

-0.347

-2.38%

Silver

RBV18

2.0460

+0.0490

+2.45%

Gasoline RBOB

CTSH

78.43

+1.04

+1.34%

Cognizant Tech Sol

SIG

64.20

-3.48

-5.14%

Signet Jewelers Ltd

ZUMZ

31.15

+1.30

+4.36%

Zumiez Inc

FITB

29.43

+0.15

+0.51%

Fifth Third Bncp

ALB

95.52

+0.47

+0.49%

Albemarle Corp

CRSP

56.67

+3.21

+6.00%

Crispr Therapeutics Ag

BURL

168.18

+3.18

+1.93%

Burlington Stores Inc

ROST

95.78

+0.87

+0.92%

Ross Stores Inc

M

36.55

+0.58

+1.61%

Macy's Inc

KSS

79.11

+0.83

+1.06%

Kohl's Corp

JWN

62.85

+0.60

+0.96%

Nordstrom

DLTR

80.51

+0.73

+0.92%

Dollar Tree Inc

CPRX

3.37

+0.36

+11.96%

Catalyst Pharm Inc

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