Dec E-mini S&Ps (ESZ16 +0.03%) are up +0.03% as the market consolidates following Thursday’s rally to an all-time high. European stocks are up +0.31% at an 11-month high on positive carry-over from the ECB’s decision Thursday to extend QEE until the end of next year. European equities also received a boost after the Bundesbank raised its German 2016 and 2017 GDP forecasts. Jan WTI crude oil (CLF17 +0.81%) is up +0.75% ahead of Saturday’s meeting in Vienna between OPEC and 14 non-OPEC nations to discuss production cuts. Asian stocks settled mixed: Japan +1.23%, Hong Kong -0.44%, China +0.54%, Taiwan +0.18%, Australia +0.31%, Singapore -0.09%, South Korea -0.42%, India +0.20%. Japan’s Nikkei Stock Index rose to an 11-1/4 month high after the ECB’s decision to extend QE fueled a rally in exporter stocks. Mar COMEX copper (HGH17 +0.82%) is up +0.82% after LME copper inventories slumped -7,800 MT to a 3-1/2 month low along with an increase in Chinese producer prices after the China Nov PPI jumped +3.3% y/y, the biggest increase in 5 years. The South Korean won fell against the dollar and the Kospi Stock Index closed lower after the South Korean National Assembly voted to impeach South Korean President Park for influence peddling.
The dollar index (DXY00 +0.40%) is up +0.31%. EUR/USD (^EURUSD) is down -0.35%. USD/JPY (^USDJPY) is up +0.74%.
Mar 10-year T-note prices (ZNH17 -0.26%) are down -12 ticks.
The Bundesbank raised its 2016 German GDP estimate to 1.9% from a Jun estimate of 1.7% and raised its 2017 GDP forecast to 1.5% from 1.4% saying the German economy is on a “sound upward path.” The Bundesbank also raised its German inflation forecast to +0.3% from +0.2%, but lowered its 2017 inflation estimate to 1.4% from 1.5%.
China Nov CPI rose +2.3% y/y, stronger than expectations of +2.2% y/y and the fastest pace of increase in 7 months.
China Nov PPI rose +3.3% y/y, stronger than expectations of +2.3% y/y and the fastest pace of increase in 5 years.
Key U.S. news today includes: (1) revised Oct wholesale inventories (expected -0.4%, prelim-Oct -0.4%) and Oct wholesale trade sales (expected +0.7% m/m, Sep +0.2%), (2) preliminary-Dec University of Michigan U.S. consumer sentiment index (expected +0.7 to 94.5, Nov +6.6 to 93.8), (3) USDA WASDE Dec crop production.
Russell 1000 earnings reports today include: Vail Resorts (consensus $ -1.57).
U.S. IPO’s scheduled to price today: none.
Equity conferences today: none.
Fluor (FLR +2.43%) was upgraded to ‘Buy’ from ‘Neutral’ at Citigroup.
Aflac (AFL +0.23%) was downgraded to ‘Underperform’ from ‘Sector Perform’ at RBC Capital Markets with a 12-month target price of $ 65.
Finisar (FNSR +5.86%) rallied over 3% in after-hours trading after it reported Q2 adjusted EPS of 58 cents, higher than consensus of 46 cents, and then said it sees Q3 adjusted EPS of 58 cents-64 cents, above consensus of 48 cents.
NCI Building Systems (NCI +2.45%) tumbled 10% in after-hours trading after it reported Q4 adjusted EPS of 28 cents, weaker than consensus of 32 cents, and then said it sees Q1 revenue of $ 370 million-$ 390 million, weaker than consensus of $ 399 million.
USA Compression Partners LP (USAC -0.77%) dropped 3% in after-hours trading after it announced a public offering of 4.5 million common units.
Broadcom Ltd (AVGO +1.28%) climbed nearly 4% in after-hours trading after it reported Q4 adjusted EPS continuing operations of $ 3.47, above consensus of $ 3.36.
Restoration Hardware (RH +2.77%) slid 2% in after-hours trading after it lowered guidance on full-year adjusted EPS to $ 1.19-$ 1.29 from a September 8 view of $ 1.60-$ 1.80.
Galapagos NV (GLPG +1.22%) rose 3% in after-hours trading after it said its first patient dosed in a “Selection” Phase 2b/3 study of filgotinib in ulcerative colitis triggered a $ 10 million milestone payment from Gilead.
Xactly (XTLY +2.50%) slipped 2% in after-hours trading after it said it sees Q4 revenue of $ 23.6 million-$ 24.4 million, below consensus of $ 25.9 million.
Fred’s (FRED +1.40%) dropped 4% in after-hours trading after it said during a conference call that it will take no questions due to a pending transaction that it declined to identify.
Valley National Bancorp (VLY +0.76%) lost 2% in after-hours trading after it filed to sell 8.4 million shares of common stock.
Frontline Ltd (FRO +5.04%) dropped 4% in after-hours trading after it offered 13.4 million shares.
Duluth Holdings (DLTH +9.10%) tumbled over 13% in after-hours trading after it cut its full-year GAAP EPS view to 52 cent-60 cents from a September 8 view of 66 cents-70 cents.
Dec E-mini S&Ps (ESZ16 +0.03%) this morning are up +0.75 of a point (+0.03%). Thursday’s closes: S&P 500 +0.22%, Dow Jones +0.33%, Nasdaq +0.15%. The S&P 500 on Thursday rose to a new all-time high on carry-over support from a rally in European stocks to an 11-month high after the ECB extended its QE program until the end of next year. U.S. stocks were also boosted by signs of strength in China’s economy after China Nov exports unexpectedly rose +0.1% y/y (stronger than expectations of -5.0% y/y and the first increase in 8 months) and after China Nov imports unexpectedly rose +6.7% y/y (stronger than expectations of -1.9% y/y and the biggest increase in 2 years).
Mar 10-year T-notes (ZNH17 -0.26%) this morning are down -12 ticks. Thursday’s closes: TYH7 -9.00, FVH7 -2.50. Mar 10-year T-notes on Thursday closed lower on carry-over weakness from a slide in German bunds to a 10-1/2 month low after the ECB said it will cut its asset purchases to 60 billion euros a month from 80 billion euros a month starting in Apr 2017. T-notes were also undercut by the rally in the S&P 500 to a new record high, which curbed the safe-haven demand for T-notes.
The dollar index (DXY00 +0.40%) this morning is up +0.310 (+0.31%). EUR/USD (^EURUSD) is -0.0037 (-0.35%). USD/JPY (^USDJPY) is +0.84 (+0.74%). Thursday’s closes: Dollar index +0.870 (+0.87%), EUR/USD -0.0138 (-1.28%), USD/JPY +0.27 (+0.24%). The dollar index on Thursday rebounded from a 3-week low and closed higher on weakness in EUR/USD which retreated from a 4-week high and closed lower after the ECB extended QE until the end of next year and ECB President Draghi said the ECB stands ready to expand QE if current asset purchases fail to shore up the economy. USD/JPY showed strength as the rally in the S&P 500 to an all-time high reduced the safe-haven demand for the yen.
Jan WTI crude oil prices (CLF17 +0.81%) this morning are up +38 cents (+0.75%) and Jan gasoline (RBF17 +0.38%) is +0.0051 (+0.34%). Thursday’s closes: Jan crude +1.19 (+2.39%), Jan gasoline -0.0036 (-0.24%). Jan crude oil and gasoline on Thursday settled mixed. Crude oil prices were boosted by speculation that Saturday’s meeting in Vienna between OPEC and non-OPEC oil producers will lead to curbs in oil production. Crude oil prices were undercut by a stronger dollar and by the slide in the crack spread to a 1-week low, which may reduce refiner demand for crude to refine into gasoline and distillate products.
|Friday, Dec 9|
|US||1000 ET||Revised Oct wholesale inventories expected -0.4%, prelim-Oct -0.4%. Oct wholesale trade sales expected +0.7% m/m, Sep +0.2%.|
|1000 ET||Preliminary-Dec University of Michigan U.S. consumer sentiment index expected +0.7 to 94.5, Nov +6.6 to 93.8.|
|1200 ET||USDA WASDE Dec crop production.|
|Monday, Dec 12|
|US||1100 ET||USDA weekly grain export inspections.|
|1130 ET||Treasury auctions 3-year T-notes.|
|1300 ET||Treasury auctions 10-year T-notes.|
|1400 ET||Nov monthly budget statement expected -$ 84.0 billion, Oct -$ 44.2 billion.|
|Medtronic PLC||MDT US||2:00||Annual General Meeting||Y 2016|
|Vail Resorts Inc||MTN US||Bef-mkt||Q1 2017 Earnings Release||Q1 2017||-1.57|
|AGNC Investment Corp||AGNC US||9:00||Special Meeting|
|Watsco Inc||WSO US||10:00||Analyst Meeting||Y 2016|
|Madison Square Garden Co/The||MSG US||10:00||Annual General Meeting|
|Vail Resorts Inc||MTN US||11:30||Q1 2017 Earnings Call||Q1 2017|
|Thor Industries Inc||THO US||13:00||Annual General Meeting||Y 2016|
|Copa Holdings SA||CPA US||November 2016 Sales and Revenue Release – Traffic Statistics||2016|