Mar E-mini S&Ps (ESH17 +0.06%) are up +0.02% and European stocks are down -0.18% in thin year-end holiday trade. Energy producing stocks are weaker as Feb WTI crude oil (CLG17 -0.26%) falls -0.30% after the API late yesterday reported that U.S. crude inventories rose +4.2 million bbl last week. European government bonds are higher, with the 10-year German bund yield falling to a 1-1/2 month low of 0.166%, which has fueled a rally in 10-year T-notes (ZNH17 +0.15%) to a 2-week high. Asian stocks settled mixed: Japan -1.32%, Hong Kong +0.17%, China -0.20%, Taiwan -0.53%, Australia +0.25%, Singapore -0.32%, South Korea +0.12%, India +0.59%. Japan’s Nikkei Stock Index tumbled to a 2-week low as exporter stocks sold-off on reduced earnings prospects after USD/JPY fell to a 2-week low.
The dollar index (DXY00 -0.44%) is down -0.42%. EUR/USD (^EURUSD) is up +0.40%. USD/JPY (^USDJPY) is down -0.58% at a 2-week low.
Mar 10-year T-note prices (ZNH17 +0.15%) are up +8 ticks to a 2-week high.
Eurozone Nov M3 money supply rose +4.8% y/y, stronger than expectations of +4.4% y/y.
Key U.S. news today includes: (1) weekly initial unemployment claims (expected -11,000 to 264,000, previous +21,000 to 275,000) and continuing claims (expected -9,000 to 2.027 million, previous +15,000 to 2.036 million), (2) Nov wholesale inventories (expected +0.2%, Oct -0.4%), (3) the Treasury’s auction of $ 28 billion of 7-year T-notes, and (4) EIA Weekly Petroleum Status Report.
Russell 1000 earnings reports today include: none.
U.S. IPO’s scheduled to price today: none.
Equity conferences this week: none.
Senior Housing Properties (SNH -0.28%) was initiated with a recommendation of ‘Overweight’ at Cantor Fitzgerald with a 12-month target price of $ 23.
Patrick Industries (PATK -1.22%) was initiated with a ‘Buy’ at Sidoti & Company with a 12-month target price of $ 100.
Sears Holdings (SHLD -1.33%) said it received a secured standby letter of credit for an initial $ 200 million that may be expanded with consent of lenders up to an additioanl $ 300 million.
Cempra (CEMP +3.39%) plunged 30% in pre-market trading after the U.S. FDA failed to approve Cempra’s Solithromycin to treat community-acquired baterial pneumonia in adults.
PHH Corp. (PHH -1.38%) said it will sell its portfolio of mortgage servicing rights and related servicing advances to New Residential Investment and said it sees $ 912 million in proceeds.
MainSource Financial Group (MSFG +0.35%) announced the retirement of President and CEO, Daryl R. Tressler, effective December 31 of this year.
McKesson (MCK -0.38%) cut its accretion view of its acquisition view of Rexall to flat adjusted fiscal-2107 earnings, weaker than a March 2 view that saw the deal modestly adding to earnings.
Fortress Biotech (FBIO -5.37%) surged 30% in after-hours trading after it said its MB-101 drug achieved complete remission in a patient with recurrent glioblastoma after a Phase 1 clinical trial.
Mar E-mini S&Ps (ESH17 +0.06%) this morning are up +0.50 of a point (+0.02%). Wednesday’s closes: S&P 500 -0.84%, Dow Jones -0.56%, Nasdaq -0.80%. The S&P 500 on Wednesday tumbled to a 2-week low and closed lower on weakness in real-estate stocks and home-building companies after U.S. Nov pending home sales unexpectedly fell -2.5% m/m, weaker than expectations of +0.5% m/m. There was also year-end profit taking and position squaring after the recent rally in the S&P 500 to a record high.
Mar 10-year T-notes (ZNH17 +0.15%) this morning are up +8 ticks at a 2-week high. Wednesday’s closes: TYH7 +14.00, FVH7 +8.75. Mar 10-year T-notes on Wednesday closed higher on carry-over support from a rally in German bunds to a 1-1/2 month high and on the unexpected decline in U.S. Nov pending home sales. T-notes were also boosted by strong demand for the Treasury’s $ 34 billion auction of 5-year T-notes that had a bid-to-cover ratio of 2.72, stronger than the 12-auction average of 2.42 and the highest in 2 years.
The dollar index (DXY00 -0.44%) this morning is down -0.43 (-0.42%). EUR/USD (^EURUSD) is up +0.0042 (+0.40%). USD/JPY (^USDJPY) is down -0.68 (-0.58%) at a 2-week low. Wednesday’s closes: Dollar index +0.280 (+0.27%), EUR/USD -0.0044 (-0.42%), USD/JPY -0.17 (-0.14%). The dollar index on Wednesday rose to a 1-week high and settled higher on weakness in EUR/USD which slid to a 1-week low as a fall in the German 10-year bund yield to a 1-1/2 month low reduced the euro’s interest rate differentials versus the dollar.
Feb WTI crude oil prices (CLG17 -0.26%) this morning are down -16 cents (-0.30%) and Feb gasoline (RBG17 +1.06%) is +0.0121 (+0.72%). Wednesday’s closes: Feb crude -0.24 (-0.45%), Feb gasoline +0.0135 (+0.81%). Feb crude oil and gasoline on Wednesday settled mixed with Feb gasoline at a 16-month high. Crude oil fell on dollar strength. However, oil prices saw underlying support from expectations for Thursday’s EIA report to show a -1.5 million bbl decline in U.S. crude oil inventories and by expectations that the global oil glut will dissipate next year as OPEC and 11 other oil producing nations begin to implement their 1.8 million bpd production cut agreement starting Jan 1.
|Thursday, Dec 29|
|US||0830 ET||Weekly initial unemployment claims expected -11,000 to 264,000, previous +21,000 to 275,000. Weekly continuing claims expected -9,000 to 2.027 million, previous +15,000 to 2.036 million.|
|0830 ET||Nov wholesale inventories expected +0.2%, Oct -0.4%.|
|1100 ET||EIA Weekly Petroleum Status Report.|
|1300 ET||Treasury auctions $ 28 billion of 7-year T-notes.|
|Friday, Dec 30|
|US||0830 ET||USDA weekly Export Sales.|
|0945 ET||Dec Chicago PMI expected -0.6 to 57.0, Nov +7.0 to 57.6.|