Mar E-mini S&Ps (ESH17 -0.20%) are down -0.03% and European stocks are up +0.14%. U.S. stock futures are being dragged lower by weakness in retailers with Kohl’s down 13% and Macy’s down 10% in pre-market trading after both companies cut their 2017 EPS forecasts. Losses were limited as energy producers rose with Feb WTI crude oil (CLG17 +0.79%) up +0.94% after the API reported late Wednesday that U.S. crude supplies fell -7.43 million bbl last week. Feb COMEX gold (GCG17 +0.82%) is up +0.64% at a 3-week high and the German 10-year bund yield climbed to a 2-week high on increased price pressures after Eurozone Nov producer prices posted their first year-on-year increase in more than 3 years. Asian stocks settled mixed: Japan -0.37%, Hong Kong +1.46%, China +0.21%, Taiwan +0.77%, Australia +0.30%, Singapore +1.12%, South Korea -0.43%, India +0.92%. Japan’s Nikkei Stock Index closed lower as exporter stocks sold-off after USD/JPY fell to a 3-week low, which reduces exporters’ earnings prospects. China’s Shanghai Composite climbed to a 3-week high on signs of strength in the Chinese economy after a gauge of growth in the service sector last month expanded at the fastest pace in 17 months.
The dollar index (DXY00 -0.43%) is down -0.31% at a 3-week low. EUR/USD (^EURUSD) is up +0.07%. USD/JPY (^USDJPY) is down -0.43% at a 3-week low.
Mar 10-year T-note prices (ZNH17 +0.13%) are up +3.5 ticks at a 3-week high.
The China Dec Caixin services PMI rose +0.3 to 53.4, the fastest pace of expansion in 17 months.
Eurozone Nov PPI unexpectedly rose +0.1% y/y, stronger than expectations of -0.1% y/y and the first year-on-year increase in 3-1/3 years.
Key U.S. news today includes: (1) Dec Challenger job cuts (Nov -13.0% y/y), (2) Dec ADP employment (expected +175,000, Nov +216,000), (3) weekly initial unemployment claims (expected -5,000 to 260,000, previous -10,000 to 265,000) and continuing claims (expected -51,000 to 2.051 million, previous +63,000 to 2.102 million), (4) revised Dec Markit services PMI (prelim-Dec -1.2 to 53.4), (5) Dec ISM non-manufacturing index (expected -0.5 to 56.7, Nov +2.4 to 57.2), (6) EIA Weekly Petroleum Status Report.
Russell 1000 earnings reports today include: Monsanto (consensus $ 0.02), Walgreens (1.09), Constellation Brands (1.72), RPM International (0.61).
U.S. IPO’s scheduled to price today: none.
Equity conferences this week include: Citi Global Internet, Media and Telecommunications Conference on Tue-Thu, Goldman Sachs CEOs Unplugged Conference on Thu, J.P. Morgan CES Tech Forum on Thu, JP Morgan Chase & Co., Inc. International Tech Forum on Thu.
Macy’s (M +1.73%) sank almost 10% in pre-market trading after it cut its 2017 EPS forecast to $ 2.95-$ 3.10 from a prior view of $ 3.15-$ 3.40 and said it plans to close 68 stores and cut 6,200 jobs.
Kohl’s (KSS +4.22%) tumbled over 13% in pre-market trading after it said comparable same-store sales fell -2.1% y/y in the fiscal months of November and December combined, and then it cut its 2017 adjusted EPS forecast to $ 3.60-$ 3.65 from a November 10 estimate of $ 3.80-$ 4.00.
Adobe Systems (ADBE +0.64%) was rated a new ‘Outperform’ at BMO Capital Markets with a target price of $ 125.
McKesson (MCK +0.78%) was downgraded to ‘Neutral’ from ‘Overweight’ at JPMorgan Chase with an 18-month target price of $ 169.
Helix Energy Solutions Group (HLX +3.53%) sank 10% in after-hours trading after it proposed an offering of 21 million shares of common stock.
Buffalo Wild Wings (BWLD +1.32%) was downgraded to ‘Neutral’ from ‘Outperform’ at Wedbush with a price target of $ 155.
Mistras Group (MG +2.41%) slumped 10% in after-hours trading after it reported Q2 EPS of 26 cents, below consensus of 31 cents.
Kilroy Realty (KRC +1.48%) slid 3% in after-hours trading after it commenced an offering of 3.5 million shares of common stock.
Hudson Pacific Properties (HPP +1.23%) lost 1% in after-hours trading after holders offered 18.7 million shares of stock.
Alexion Pharmaceuticals (ALXN +3.65%) rallied over 3% in after-hours trading after a board audit committee concluded that it sees no need to restate financial results after investigating a claim made by a former employee about Soliris sales and practices.
Moelis (MC +2.65%) fell 4% in after-hours trading after it offered 5 million shares of Class A common stock.
Heron Therapeutics (HRTX +2.99%) dropped nearly 10% in after-hours trading after it forecast 2017 sales of its Sustol nausea treatment drug at $ 15 million to $ 25 million, well below consensus of $ 50 million.
Synergy Pharmaceuticals (SGYP +6.88%) climbed 3% in after-hours trading after it was rated a new ‘Outperform’ at Oppenheimer with a price target of $ 10.
Loxo Oncology (LOXO +5.28%) fell over 3% in after-hours trading after it proposed a public offering of common stock, although no amount or size was given.
Mar E-mini S&Ps (ESH17 -0.20%) this morning are down -0.75 of a point (-0.03%). Wednesday’s closes: S&P 500 +0.57%, Dow Jones +0.30%, Nasdaq +0.53%. The S&P 500 on Wednesday closed higher on strength in mining stocks after the price of copper rose +2.7% to a 2-week high and on strength in oil companies after the price of crude oil climbed +1.78%. Auto makers also saw strength after U.S. Dec auto sales soared to 18.29 million units, stronger than expectations of 17.70 million and the most in 11-1/3 years.
Mar 10-year T-notes (ZNH17 +0.13%) this morning are yp +3.5 ticks at a 3-week high. Wednesday’s closes: TYH7 unch, FVH7 -0.50. Mar 10-year T-notes on Wednesday closed little changed. T-notes were undercut by weakness in German bunds on increased price pressures after the Eurozone Dec CPI rose more than expected. T-notes recovered their losses after the Dec 13-14 FOMC minutes said that most FOMC policy makers saw a gradual rate hike pace as “appropriate.”
The dollar index (DXY00 -0.43%) this morning is down -0.32 (-0.31%) at a 3-week low. EUR/USD (^EURUSD) is up +0.0007 (+0.07%). USD/JPY (^USDJPY) is down -0.51 (-0.43%) at a 3-week low. Wednesday’s closes: Dollar index -0.680 (-0.66%), EUR/USD +0.0084 (+0.81%), USD/JPY -0.50 (-0.42%). The dollar index on Wednesday closed lower on strength in EUR/USD after Eurozone Dec CPI rose +1.1% y/y, stronger than expectations of +1.0% y/y and the largest increase in 3-1/4 years, which dampened expectations that the ECB will expand stimulus measures. The dollar was also undercut by the comment in the Dec 13-14 FOMC meeting minutes that most FOMC members saw a gradual rate hike pace as “appropriate.”
Feb WTI crude oil prices (CLG17 +0.79%) this morning are up +50 cents (+0.94%) and Feb gasoline (RBG17 -0.13%) is +0.0006 (+0.04%). Wednesday’s closes: Feb crude +0.93 (+1.78%), Feb gasoline +0.0170 (+1.05%). Feb crude oil and gasoline on Wednesday closed higher on a weaker dollar and expectations for Thursday’s weekly EIA crude inventories to fall -2.00 million bbl.
Thursday, Jan 5 | ||
US | 0730 ET | Dec Challenger job cuts, Nov -13.0% y/y. |
0815 ET | Dec ADP employment change expected +175,000, Nov +216,000. | |
0830 ET | Weekly initial unemployment claims expected -5,000 to 260,000, previous -10,000 to 265,000. Weekly continuing claims expected -51,000 to 2.051 million, previous +63,000 to 2.102 million. | |
0945 ET | Revised Dec Markit services PMI, prelim-Dec -1.2 to 53.4. | |
1000 ET | Dec ISM non-manufacturing index expected -0.5 to 56.7, Nov +2.4 to 57.2. | |
1100 ET | EIA Weekly Petroleum Status Report. | |
1100 ET | Treasury announces amount of 3-year T-notes (previous $ 24 billion), 10-year T-notes (previous $ 20 billion) and 30-year T-bonds (previous $ 12 billion) to be auctioned Jan 10-12. | |
Friday, Jan 6 | ||
US | 0830 ET | Dec non-farm payrolls expected +180,000, Nov +178,000. Dec private payrolls expected +170,000, Nov +156,000. Dec manufacturing payrolls expected unch, Nov -4,000. Dec unemployment rate expected +0.1 to 4.7%, Nov -0.3 to 4.6%. |
0830 ET | Dec avg hourly earnings expected +0.3% m/m and +2.8% y/y, Nov -0.1% m/m and +2.5% y/y. Dec avg weekly hours all-employees expected unch at 34.4 hours, Nov unch at 34.4 hours. | |
0830 ET | Nov trade balance expected -$ 44.7 billion, Oct -$ 42.6 billion. | |
0830 ET | USDA weekly Export Sales. | |
1000 ET | Nov factory orders expected -2.3%, Dec +2.7% and +0.8% ex transportation. | |
1215 ET | Chicago Fed President Charles Evans (voter) participates in a NABE and AEA panel discussion titled Responders of First or Last Resort: Central Bank Strategies in an Era of Ultra-Low Interest Rates. | |
1300 ET | Richmond Fed President Jeffrey Lacker (non-voter) speaks at the Maryland Bankers Associations Economic Outlook Forum. |
Company | Ticker | Time | Event Description | Period | Estimate |
---|---|---|---|---|---|
RPM International Inc | RPM US | Bef-mkt | Q2 2017 Earnings Release | Q2 2017 | 0.605 |
Constellation Brands Inc | STZ US | Bef-mkt | Q3 2017 Earnings Release | Q3 2017 | 1.718 |
Walgreens Boots Alliance Inc | WBA US | 7:00 | Q1 2017 Earnings Release | Q1 2017 | 1.093 |
L Brands Inc | LB US | 7:30 | December 2016 Sales and Revenue Call | 2016 | |
Monsanto Co | MON US | 8:00 | Q1 2017 Earnings Release | Q1 2017 | 0.017 |
Walgreens Boots Alliance Inc | WBA US | 8:30 | Q1 2017 Earnings Call | Q1 2017 | |
Ionis Pharmaceuticals Inc | IONS US | 9:30 | IONIS-GCGR Rx Phase 2 Study Results Call | ||
Monsanto Co | MON US | 9:30 | Q1 2017 Earnings Call | Q1 2017 | |
RPM International Inc | RPM US | 10:00 | Q2 2017 Earnings Call | Q2 2017 | |
Constellation Brands Inc | STZ US | 10:30 | Q3 2017 Earnings Call | Q3 2017 | |
Gap Inc/The | GPS US | 16:15 | December 2016 Sales and Revenue Release | 2016 | |
L Brands Inc | LB US | December 2016 Sales and Revenue Release | 2016 |
Rules of Discussion on Dow Futures
2. Member's comments should lead to value addition in forum discussion.
3. If anyone is found making repetitive Explicit/Abusive/Racial comments, his account shall be banned and old posts will be deleted.
4. Providing Advice/Recommendations/Tips is fine but it should be free. Members cannot ask to be paid for it. Paid Advice is strictly prohibited
5. Spam links are not allowed. Too much promotion or using Contact info in ID will lead to account ban.
IMP : Members are requested to flag any violations to keep Forum Clean.