Mar E-mini S&Ps (ESH17 +0.20%) are up +0.21% in thin year-end trading as raw-material stocks move higher with a rally in gold and silver prices to 2-week highs. A -0.46% slide in the dollar index (DXY00 -0.45%) to a 2-week gave metals prices a boost with Feb COMEX gold (GCG17 +0.14%) up +0.11% and Mar COMEX silver (SIH17 +0.29%) up +0.29%, both at 2-week highs. European stocks are down -0.22% in quiet trade on weakness in bank stocks and exporters. The Bank of Italy said that the cost to rescue Banca dei Paschi di Siena SpA will cost the government about 6.6 billion euros ($ 7 billion), 4.6 billion euros to meet capital requirements and about 2 billion euros to compensate the bank’s retail bondholders. Asian stocks settled mixed: Japan -0.16%, Hong Kong +0.96%, China +0.24%, Taiwan +1.10%, Australia -0.58%, Singapore -0.29%, South Korea closed for holiday, India +0.99%. Japan’s Nikkei Stock Index finished the year at a 3-week low after USD/JPY dropped to a 2-week low, which fueled selling in exporter stocks on reduced earnings prospects.
The dollar index (DXY00 -0.45%) is down -0.46% at a 2-week low. EUR/USD (^EURUSD) is up +0.63% at a 2-week high as a rush of computer-generated algorithmic buy orders into a thinly traded holiday market caused a sharp rally in EUR/USD in overnight trade. USD/JPY (^USDJPY) is up +0.33% as it rebounds from a 2-week low in overnight trade.
Mar 10-year T-note prices (ZNH17 +0.03%) are unchanged.
ECB Governing Council member Nowotny said he sees much higher inflation rates in 2017 because of energy prices and that he expects Eurozone monetary policy to remain expansive, “but not for an unlimited period of time.”
Key U.S. news today includes: (1) Dec Chicago PMI expected -0.6 to 57.0, Nov +7.0 to 57.6, (2) USDA weekly Export Sales.
Russell 1000 earnings reports today include: none.
U.S. IPO’s scheduled to price today: none.
Equity conferences this week: none.
Syndax Pharmaceuticals (SNDX -3.49%) was rated a new ‘Buy’ at BTIG with a price target of $ 25.
Yandex (YNDX +0.59%) was rated a new ‘Outperform’ at Credit Suisse with a price target of $ 26.
Cempra (CEMP -57.38%) was upgraded to ‘Equalweight’ from ‘Underweight’ at Morgan Stanley with a 12-month target price of $ 3.
Gulfport Energy (GPOR -0.77%) CFO Aaron Gaydosik resigned effective January 4 and will be replaced by Keri Crowell.
Mylan NV (MYL +0.46%) rose 2% in after-hours trading after it said it launched a generic version of Janssen’s Concerta tablets.
Mar E-mini S&Ps (ESH17 +0.20%) this morning are up +4.75 points (+0.21%). Thursday’s closes: S&P 500 -0.03%, Dow Jones -0.07%, Nasdaq -0.16%. The S&P 500 on Thursday dropped to a 3-week low and closed lower on weakness in energy producers after crude oil prices fell -0.39%. Stocks were also undercut by year-end profit taking after the recent rally in the S&P 500 to a record high. Stocks saw some support from news that U.S. weekly jobless claims fell -10,000 to 265,000, right on expectations and the third decline in the last 4 weeks.
Mar 10-year T-notes (ZNH17 +0.03%) this morning are unch. Thursday’s closes: TYH7 +9.50, FVH7 +7.75. Mar 10-year T-notes on Thursday rose to a 2-week high and settled higher on carry-over support from a rally in German bunds to a 1-1/2 month high and on firm demand for the Treasury’s $ 28 billion auction of 7-year T-notes that had a bid-to-cover ratio of 2.54, higher than the 12-auction average of 2.50.
The dollar index (DXY00 -0.45%) this morning is down -0.47 (-0.46%) at a 2-week low. EUR/USD (^EURUSD) is up +0.0066 (+0.63%) at a 2-week high. USD/JPY (^USDJPY) is up +0.38 (+0.33%). Thursday’s closes: Dollar index -0.620 (-0.60%), EUR/USD +0.0077 (+0.74%), USD/JPY -0.72 (-0.61%). The dollar index on Thursday closed lower on the decline in the S&P 500 to a 3-week low, which boosted safe-haven demand for the yen as USD/JPY tumbled to a 2-week low. The dollar index was also undercut by the drop in the 10-year T-note yield to a 2-week low, which reduced the dollar’s interest rate differentials.
Feb WTI crude oil prices (CLG17 -0.19%) this morning are up +5 cents (+0.09%) and Feb gasoline (RBG17 -1.10%) is -0.0141 (-0.84%). Thursday’s closes: Feb crude -0.21 (-0.39%), Feb gasoline -0.0004 (-0.02%). Feb crude oil and gasoline on Thursday closed lower on the unexpected +614,000 bbl increase in weekly EIA crude inventories (versus expectations for a -1.5 million bbl decline) and on the +172,000 bbl increase in crude supplies at Cushing. Crude oil found support from a weaker dollar and by the unexpected -1.59 million bbl decline in EIA gasoline stockpiles (versus expectations for an increase of +1.0 million bbl).
|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.|
|Tuesday, Jan 3|
|US||0945 ET||Revised Dec Markit manufacturing PMI, prelim-Dec +0.1 to 54.2.|
|1000 ET||Dec ISM manufacturing index expected +0.5 to 53.7, Nov +1.3 to 53.2. Dec ISM new orders, Nov +0.9 to 53.0. Dec ISM employment, Nov -0.6 to 52.3. Dec ISM prices paid expected +1.0 to 55.5, Nov unch at 54.5.|
|1000 ET||Nov construction spending expected +0.5% m/m, Oct +0.5% m/m.|
|1100 ET||USDA weekly grain export inspections.|