Dec E-mini S&Ps (ESZ16 +0.27%) are up +0.28% at a record high and European stocks are up +0.66% as strength in crude oil and copper boosts mining companies and commodity-producing stocks. Jan WTI crude oil (CLF17 +0.10%) is up +0.37% at a 3-week high on optimism OPEC will agree to reduce output when it meets next week in Vienna and Dec COMEX copper (HGZ16 +1.43%) is up +1.41% at a 1-week high on optimism President-elect Trump’s pledge to cut taxes and increase fiscal spending will boost economic growth. Global government bond markets rallied, with the German 10-year bund yield falling to a 1-1/2 week low of 0.221%, on speculation the ECB will extend QE beyond March of next year after ECB President Draghi on Monday said that the ECB is “committed to preserving the very substantial degree of monetary accommodation necessary to secure a sustained convergence of inflation toward” the target of just under 2%. Asian stocks settled higher: Japan +0.31%, Hong Kong +1.43%, China +0.94%, Taiwan +1.02%, Australia +1.16%, Singapore +0.20%, South Korea +1.15%, India +0.76%. China’s Shanghai Composite and Japan’s Nikkei Stock Index both rallied to 10-1/2 month highs as a rally in crude oil and metals prices lifted commodity-producing stocks.
The dollar index (DXY00 -0.10%) is down -0.20%. EUR/USD (^EURUSD) is down -0.06%. USD/JPY (^USDJPY) is down -0.01%.
Dec 10-year T-note prices (ZNZ16 +0.27%) are up +11.5 ticks.
Key U.S. news today includes: (1) Nov Richmond Fed manufacturing index (expected +4 to 0, Oct +4 to -4), (2) Oct existing home sales (expected -0.6% to 5.44 million, Sep +3.2% to 5.47 million), (3) Treasury auctions $ 34 billion of 5-year T-notes, and (5) USDA Oct Cold Storage.
S&P 500 earnings reports today include: HP (consensus $ 0.36), HP Enterprise (0.61), Urban Outfitters (0.44), Analog Devices (0.90), Campbell Soup (0.95), Signet Jewelers (0.21), Medtronic (1.11), Hormel Foods (0.45), Patterson Companies (0.61), Jacobs Engineering (0.77).
U.S. IPO’s scheduled to price today: none.
Equity conferences this week include: none.
Facebook (FB +4.06%) was upgraded to ‘Buy’ from ‘Hold’ at First Shanghai Securities Ltd with a price target of $ 135.
FireEye (FEYE +1.76%) dropped 5% in pre-market trading after it was downgraded to ‘Sell’ from ‘Neutral’ at Goldman Sachs.
Sina Corp. (SINA -1.33%) rose over 2% in after-hours trading after it reported Q3 adjusted EPS of 24 cents, better than consensus of 20 cents, and then said it sees Q4 net revenue of $ 205 million-$ 210 million, above consensus of $ 196.8 million.
Palo Alto Networks (PANW -0.18%) sank over 11% in pre-market trading after it reported Q1 revenue of $ 398.1 million, weaker than consensus of $ 400.1 million, and then forecast Q2 revenue of $ 426 million-$ 432 million, below consensus of $ 439.1 million.
Dycom Industries (DY +1.24%) slumped 10% in after-hours trading after it reported Q1 contract revenue of $ 799.2 million, below consensus of $ 801.2 million, and said it sees Q2 adjusted EPS of 61 cents-73 cents, at the low end of consensus of 71 cents.
Enanta Pharmaceuticals (ENTA +0.23%) climbed 3% in after-hours trading after it reported a Q4 loss of -9 cents per share, a narrower loss than consensus of -14 cents.
Jack in the Box (JACK -0.02%) fell over 2% in after-hours trading after it lowered guidance on full-year operating EPS to $ 4.55-$ 4.75, below consensus of $ 4.75.
Bright Horizons Family Solutions (BFAM +1.36%) slipped nearly 2% in after-hours trading after it announced a secondary offering of 2.0 million shares of common stock.
Whiting Petroleum (WLL +8.60%) gained over 3% in pre-market trading after it said it will sell 50% of its stake in the Robinson Lake natgas processing plant along with a 50% stake in the Belfield natgas plant to Tesoro Logistics Rockies LLC for $ 700 million.
Hudson Pacific Properties (HPP -1.59%) lost over 1% in after-hours trading after it announced an underwritten offering of 18.7 million shares
Pennant Park Investment Corp. (PNNT -0.26%) lost 7% in after-hours trading after it said Q4 net investment income was 21 cents a share, weaker than consensus of 26 cents a share and then it will cut its quarterly dividend to 18 cents per share from 28 cents per share,
Star Bulk Carriers (SBLK +0.19%) jumped 9% in after-hours trading after it reported Q3 revenue of $ 59.9 million, higher than consensus of $ 43.1 million.
Dec E-mini S&Ps (ESZ16 +0.27%) this morning are up +6.25 points (+0.28%) at a new all-time nearest-futures high. Monday’s closes: S&P 500 +0.75%, Dow Jones +0.47%, Nasdaq +1.06%. The S&P 500 on Monday rallied to a fresh all-time high and closed higher on strength in energy-producer stocks as Jan WTI crude oil gained +4.25% to a 3-week high and on speculation that President-elect Trump’s policies will spur economic growth.
Dec 10-year T-notes (ZNZ16 +0.27%) this morning are up +11.5 ticks. Monday’s closes: TYZ6 -0.50, FVZ6 -1.50. Dec 10-year T-notes on Monday closed slightly lower on reduced safe-haven demand with the rally in stocks and on lackluster demand for the Treasury’s $ 26 billion auction of 2-year T-notes that had a bid-to-cover ratio of 2.73, below the 12-auction average of 2.77.
The dollar index (DXY00 -0.10%) this morning is down -0.200 (-0.20%). EUR/USD (^EURUSD) is -0.0006 (-0.06%). USD/JPY (^USDJPY) is down -0.01 (-0.01%). Monday’s closes: Dollar index -0.160 (-0.16%), EUR/USD +0.0042 (+0.40%), USD/JPY -0.09 (-0.08%). The dollar index on Monday closed lower on profit-taking after Friday’s surge in the dollar index to a 13-1/2 year high. In addition, the euro got a boost from the Bundesbank’s monthly report that said Q4 German economic growth “is likely to pick up again considerably” and that monetary indicators “don’t show the need for more monetary policy action.”
Jan crude oil prices (CLF17 +0.10%) this morning are up +18 cents (+0.37%) at a 3-week high and Jan gasoline (RBF17 +1.03%) is up +0.0167 (+1.19%) at a 2-1/2 week high. Monday’s closes: Jan crude +1.97 (+4.25%), Jan gasoline +0.0596 (+4.44%). Jan crude oil and gasoline on Monday closed sharply higher with Jan crude at a 3-week high and Jan gasoline at a 2-week high. Bullish factors included a weaker dollar and comments from Iranian Oil Minister Bijan Namdar Zanganeh who said it is “highly probable” that OPEC members will reach a consensus on oil production cuts. In addition, Russian President Putin said that he sees no obstacles to OPEC reaching a pact later this month and that Russia is willing to freeze its crude oil output at current levels.
|Tuesday, Nov 22|
|US||1000 ET||Nov Richmond Fed manufacturing survey expected +4 to 0, Oct +4 to -4.|
|1000 ET||Oct existing home sales expected -0.6% to 5.44 million, Sep +3.2% to 5.47 million.|
|1300 ET||Treasury auctions $ 34 billion of 5-year T-notes.|
|1500 ET||USDA Oct Cold Storage.|
|Wednesday, Nov 23|
|US||0700 ET||Weekly MBA mortgage applications, previous -9.2% with purchase sub-index -6.2% and refi sub-index -10.9%.|
|0830 ET||Oct durable goods orders expected +1.5% and +0.2% ex transportation, Sep -0.3% and +0.1% ex transportation. Oct capital goods new orders nondefense ex aircraft expected +0.3%, Sep -1.3%.|
|0830 ET||Weekly initial unemployment claims expected +15,000 to 250,000, previous -19,000 to 235,000. Weekly continuing claims expected +31,000 to 2.008 million, previous -66,000 to 1.977 million.|
|0900 ET||Sep FHFA house price index expected +0.5% m/m, Aug +0.7% m/m. Q3 house price purchase index, Q2 +1.2%.|
|0945 ET||Nov Markit manufacturing PMI expected +0.1 to 53.5, Oct +1.9 to 53.4.|
|1000 ET||Oct new home sales expected -0.5% to 590,000, Sep +3.1% to 593,000.|
|1000 ET||Final-Nov University of Michigan U.S. consumer sentiment index expected unch at 91.6, prelim-Nov +4.2 to 91.6.|
|1030 ET||EIA Weekly Petroleum Status Report.|
|1130 ET||Treasury auctions $ 13 billion of 2-year floating-rate notes.|
|1300 ET||Treasury auctions $ 28 billion of 7-year T-notes.|
|1400 ET||Minutes of the Nov 1-2 FOMC meeting.|
|Jacobs Engineering Group Inc||JEC US||Bef-mkt||Q4 2016 Earnings Release||Q4 2016||0.771|
|Patterson Cos Inc||PDCO US||Bef-mkt||Q2 2017 Earnings Release||Q2 2017||0.605|
|Hormel Foods Corp||HRL US||6:30||Q4 2016 Earnings Release||Q4 2016||0.454|
|Medtronic PLC||MDT US||6:45||Q2 2017 Earnings Release||Q2 2017||1.11|
|Signet Jewelers Ltd||SIG US||7:00||Q3 2017 Earnings Release||Q3 2017||0.205|
|Campbell Soup Co||CPB US||7:15||Q1 2017 Earnings Release||Q1 2017||0.947|
|Dollar Tree Inc||DLTR US||7:30||Q3 2017 Earnings Release||Q3 2017||0.777|
|Analog Devices Inc||ADI US||8:00||Q4 2016 Earnings Release||Q4 2016||0.895|
|Medtronic PLC||MDT US||8:00||Q2 2017 Earnings Call||Q2 2017|
|Campbell Soup Co||CPB US||8:30||Q1 2017 Earnings Call||Q1 2017|
|Signet Jewelers Ltd||SIG US||8:30||Q3 2017 Earnings Call||Q3 2017|
|Dollar Tree Inc||DLTR US||9:00||Q3 2017 Earnings Call||Q3 2017|
|Hormel Foods Corp||HRL US||9:30||Q4 2016 Earnings Call||Q4 2016|
|Analog Devices Inc||ADI US||10:00||Q4 2016 Earnings Call||Q4 2016|
|Jacobs Engineering Group Inc||JEC US||10:00||Q4 2016 Earnings Call||Q4 2016|
|Patterson Cos Inc||PDCO US||10:00||Q2 2017 Earnings Call||Q2 2017|
|Urban Outfitters Inc||URBN US||16:05||Q3 2017 Earnings Release||Q3 2017||0.444|
|Hewlett Packard Enterprise Co||HPE US||16:30||Q4 2016 Earnings Call||Q4 2016|
|Urban Outfitters Inc||URBN US||17:00||Q3 2017 Earnings Call||Q3 2017|
|HP Inc||HPQ US||Aft-mkt||Q4 2016 Earnings Release||Q4 2016||0.363|
|Hewlett Packard Enterprise Co||HPE US||Aft-mkt||Q4 2016 Earnings Release||Q4 2016||0.605|
|HP Inc||HPQ US||17:30||Q4 2016 Earnings Call||Q4 2016|