US : Pre Market News – 15 Dec 2016

PREMARKET WORLD NEWS

Mar E-mini S&Ps (ESH17 -0.08%) are up +0.04% and European stocks are up +0.98% at an 11-1/4 month high. Gains in U.S. equities were muted as the 10-year T-note yield jumped to a 2-year high of 2.63% as the Fed yesterday signaled a faster pace of rate hikes next year. As expected, the BOE kept its benchmark interest rate unchanged at 0.25% and maintained its asset purchase target at 435 billion pounds with a 9-0 vote following today’s policy meeting. European stocks rallied on signs of economic strength after the Eurozone Dec Markit manufacturing PMI expanded at its fastest pace since the data series began in 2013. Also, European exporters received a boost as EUR/USD tumbled -1.21% to a 13-3/4 year low, which boosts the earnings prospects of exporters. Asian stocks settled mostly lower: Japan +0.10%, Hong Kong -1.77%, China -0.73%, Taiwan -0.09%, Australia -0.82%, Singapore -0.79%, South Korea -0.21%, Inia -0.31%. China’s Shanghai Composite fell to a 1-month low as the yuan tumbled to an 8-1/2 year low against the dollar, which bolsters concern over capital outflows out of China due to weakness in the yuan. Japan’s Nikkei Stock Index bucked the bearish trend in Asian equities and climbed to a 11-1/4 month high, led by a rally in exporter stocks, as a rally in USD/JPY to a 10-1/4 month high improves the earnings prospects of exporter companies.

The dollar index (DXY00 +1.20%) is up +1.31% at a 13-3/4 year high. EUR/USD (^EURUSD) is down -1.21% at a 13-3/4 year low. USD/JPY (^USDJPY) is up +0.99% at a 10-1/4 month high.

Mar 10-year T-note prices (ZNH17 -0.52%) are down -25.5 ticks at a new contract low and the 10-year T-note yield climbed to a 2-year high of 2.63% after the FOMC yesterday signaled a faster pace of rate hikes next year than previously anticipated.

The Eurozone Dec Markit manufacturing PMI rose +1.2 to 54.9, stronger than expectations of no change at 53.7 and the fastest pace of expansion since the data series began in 2013.

The Japan Dec Nikkei manufacturing PMI rose +0.6 to 51.9, the fastest pace of expansion in 11 months.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly initial unemployment claims (expected -3,000 to 255,000, previous -10,000 to 258,000) and continuing claims (expected unch at 2.005 million, previous -79,000 to 2.005 million), (2) Nov CPI (expected +0.2% m/m and +1.7% y/y, Oct +0.4% m/m and +1.6% y/y) and Nov CPI ex food & energy (expected +0.2% m/m and +2.2% y/y, Oct +0.1% m/m and +2.1% y/y), (3) Dec Empire manufacturing survey business conditions index (expected +2.5 to 4.0, Nov +8.3 to 1.5), (4) Dec Philadelphia Fed business outlook survey index (expected +1.5 to 9.1, Nov -2.1 to 7.6), (5) Q3 current account balance (expected -$ 111.6 billion, Q2 -$ 119.9 billion), (6) Dec Markit manufacturing PMI (expected +0.4 to 54.5, Nov +0.7 to 54.1), (7) Dec NAHB housing market index (expected unch at 63, Nov unch at 63), and (8) USDA weekly Export Sales.

Russell 1000 earnings reports today include: Adobe Systems (consensus $ 0.86), Oracle (0.60), Jabil Circuit (0.64).

U.S. IPO’s scheduled to price today: travel BV (TRVG).

Equity conferences today include: RBC Capital Markets’ Healthcare Investor Day on Thu.

PREMARKET U.S. STOCKS

Chevron (CVX -1.24%) was upgraded to ‘Outperform’ from ‘Neutral’ at Macquarie Research with a 12-month target price of $ 130.

Hilton Worldwide Holdings (HLT +1.14%) was upgraded to ‘Buy’ from ‘Neutral’ at Bank of America/Merrill Lynch.

Yahoo! (YHOO -1.35%) declined over 2% in after-hours trading after it said it believes 1 billion user accounts may have been hacked in August 2013, twice as many as the 500 million accounts it initially said were affected.

Athenahealth (ATHN -2.10%) rallied 20% in after-hours trading after it said it sees 2017 revenue of $ 1.29 billion-$ 1.33 billion, above consensus of $ 1.29 billion.

United Technologies (UTX -0.94%) said it sees 2017 sales of $ 57.5 billion-$ 59 billion, weaker than consensus of $ 59.2 billion.

Pier 1 Imports (PIR -0.46%) surged 18% in after-hours trading after it reported Q3 adjusted EPS of 22 cents, well above consensus of 15 cents, and then raised guidance on fiscal 2017 adjusted EPS to 37 cents-41 cents from a prior view of 24 cents-32 cents.

Mondelez (MDLZ -0.58%) rallied almost 10% in after-hours trading after Bilanz magazine cited an unidentified “very well-informed” source that said Kraft Heinz plans to acquire Mondelez.

General Mills (GIS -1.36%) lost almost 2% in after-hours trading after Bilanz reported that Kraft Heinz plans to acquire Mondelez.

Diamondback Energy (FANG -3.58%) dropped 3% in after-hours trading after it filed to sell 10.5 million shares and proposed a $ 250 million offering of senior notes due 2025.

Apogee Enterprises (APOG +2.01%) rose over 2% in after-hours trading after it reported Q3 EPS of 78 cents, better than consensus of 77 cents, and then raised guidance on fiscal 2017 EPS to $ 2.85-$ 2.95 from a prior view of $ 2.80-$ 2.90.

VTv Therapeutics (VTVT -2.55%) jumped 16% in after-hours trading after it said it met its primary endpoint in a Phase 2 study of patients with Type 2 diabetes that demonstrated a statistically significant reduction in HbA1c.

Gulfport Energy (GPOR -3.69%) slid 3% in after-hours trading after it announced an offering of 29 million shares of common stock.

Amicus Therapeutics (FOLD +0.52%) dropped over 10% in after-hours trading after it proposed a $ 225 million offering of convertible senior notes due 2023.

MARKET COMMENTS

Mar E-mini S&Ps (ESH17 -0.08%) this morning are up +1.00 point (+0.04%). Wednesday’s closes: S&P 500 -0.81%, Dow Jones -0.60%, Nasdaq -0.30%. The S&P 500 on Wednesday closed lower on the weaker-than-expected U.S Nov retail sales report of +0.1% and +0.2% ex autos (vs expectations of +0.3% and +0.4% ex autos) and on increased price pressures after U.S. Nov core PPI rose +1.6% y/y (stronger than expectations of +1.3% y/y and the largest year-on-year increase in 1-3/4 years). Stocks were also undercut by the FOMC’s +25 bp rate hike and its projection for three 25 bp rate hikes next year, up from a projection of two 25 bp rates hikes in Sep.

Mar 10-year T-notes (ZNH17 -0.52%) this morning are down -25.5 ticks at a fresh contract low. Wednesday’s closes: TYH7 -16.50, FVH7 -14.00. Mar 10-year T-notes on Wednesday fell to a contract low and closed lower. The 10-year T-note yield jumped to a 2-year high of 2.58%. T-note prices were undercut by the Fed’s 25 bp rate hike and its projection for three 25 bp rate hikes in 2017 versus the previous two hikes. T-notes were also undercut by increased inflation pressures after U.S. Nov PPI rose more than expected.

The dollar index (DXY00 +1.20%) this morning is up +1.330 (+1.31%) at a new 13-3/4 year high. EUR/USD (^EURUSD) is down -0.0128 (-1.21%) at a 13-3/4 year low. USD/JPY (^USDJPY) is up +1.16 (+0.99%) at a 10-1/2 month high. Wednesday’s closes: Dollar index +0.690 (+0.68%), EUR/USD -0.0009 (-0.08%), USD/JPY +1.85 (+1.61%). The dollar index on Wednesday raced up to a 13-3/4 year high and closed higher on the 25 bp rate hike by the FOMC and by the FOMC’s projection for three 25 bp rate hikes in 2017 versus its previous projection of two hikes.

Jan WTI crude oil (CLF17 -0.06%) prices this morning are up +16 cents (+0.31%) and Jan gasoline (RBF17 -0.16%) is up +0.0017 (+0.11%). Wednesday’s closes: Jan crude -1.94 (-3.66%), Jan gasoline -0.0090 (-0.85%). Jan crude oil and gasoline on Wednesday closed lower. Crude oil prices were undercut by the rally in the dollar index to a 13-3/4 year high and by the bearish EIA report. The EIA report showed a +1.1% increase in U.S. crude production in the week ended Dec 9 to a 7-month high of 8.796 million bpd and a +1.22 million bbl increase in crude supplies at Cushing to a 6-1/2 month high.

GLOBAL EVENT CALENDAR 12/15/2016
Thursday, Dec 15
US0830 ETWeekly initial unemployment claims expected -3,000 to 255,000, previous -10,000 to 258,000. Weekly continuing claims expected unch at 2.005 million, previous -79,000 to 2.005 million.
0830 ETNov CPI expected +0.2% m/m and +1.7% y/y, Oct +0.4% m/m and +1.6% y/y. Nov CPI ex food & energy expected +0.2% m/m and +2.2% y/y, Oct +0.1% m/m and +2.1% y/y.
0830 ETDec Empire manufacturing survey business conditions expected +2.5 to 4.0, Nov +8.3 to 1.5.
0830 ETDec Philadelphia Fed business outlook survey expected +1.5 to 9.1, Nov -2.1 to 7.6.
0830 ETQ3 current account balance expected -$ 111.6 billion, Q2 -$ 119.9 billion.
0830 ETUSDA weekly Export Sales.
0945 ETDec Markit manufacturing PMI expected +0.4 to 54.5, Nov +0.7 to 54.1.
1000 ETDec NAHB housing market index expected unch at 63, Nov unch at 63.
1100 ETTreasury announces amount of 5-year TIPS to be auctioned Dec 22 (previous $ 14 billion).
Friday, Dec 16
US0830 ETNov housing starts expected -7.0% to 1.23 million, Oct +25.5% to 1.323 million. Nov building permits expected -1.6% to 1.24 million, Oct +2.9% to 1.260 million.
1230 ETRichmond Fed President Jeffrey Lacker (non-voter) speaks on a panel at the Charlotte Chambers 2016 Economic Outlook Conference.
U.S. STOCK CALENDAR 12/15/2016
CompanyTickerTimeEvent DescriptionPeriodEstimate
CVS Health CorpCVS US8:00Analyst DayY 2016
Unum GroupUNM US8:00Investor MeetingY 2016
Delta Air Lines IncDAL US8:30Investor DayY 2016
athenahealth IncATHN US8:30Investor MeetingY 2016
Danaher CorpDHR US9:30Investor and Analyst MeetingY 2016
Eli Lilly & CoLLY US10:00Q4 2017 Guidance CallQ4 2017
Prudential Financial IncPRU US11:00Q4 2017 Guidance CallQ4 2017
Axalta Coating Systems LtdAXTA US11:00Q4 2017 Guidance CallQ4 2017
Pinnacle Foods IncPF US12:00Investor Luncheon and PresentationY 2016
Celanese CorpCE US12:30Investor ConferenceY 2016
American Water Works Co IncAWK US13:00Investor ConferenceY 2016
Adobe Systems IncADBE US16:05Q4 2016 Earnings ReleaseQ4 20160.862
Jabil Circuit IncJBL US16:30Q1 2017 Earnings CallQ1 2017
Adobe Systems IncADBE US17:00Q4 2016 Earnings CallQ4 2016
Oracle CorpORCL US17:00Q2 2017 Earnings CallQ2 2017
Oracle CorpORCL USAft-mktQ2 2017 Earnings ReleaseQ2 20170.6
Jabil Circuit IncJBL USAft-mktQ1 2017 Earnings ReleaseQ1 20170.642
American Express CoAXP USCredit-card Charge-offs and Delinquencies
JPMorgan Chase & CoJPM USCredit-card Charge-offs and Delinquencies
Bank of America CorpBAC USCredit-card Charge-offs and Delinquencies
Citigroup IncC USCredit-card Charge-offs and Delinquencies
IAC/InterActiveCorpIAC USAnnual General Meeting
Capital One Financial CorpCOF USCredit-card Charge-offs and Delinquencies
Alliance Data Systems CorpADS USCredit-card Charge-offs and Delinquencies
Spectra Energy CorpSE USSpecial Meeting – M&A Vote
Discover Financial ServicesDFS USCredit-card Charge-offs and Delinquencies
Synchrony FinancialSYF USCredit-card Charge-offs and Delinquencies

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Discussion on US : Pre Market News – 15 Dec 2016