Mar E-mini S&Ps (ESH17 -0.01%) are little changed, down -0.03%, and European stocks are down -0.38%, ahead of the monthly U.S. jobs report. Losses were contained as a +0.63% rally in Feb WTI crude oil (CLG17 +0.76%) lifted energy producing stocks. Crude oil garnered support in comments from someone familiar with Saudi Arabian policy who said the Saudis will be in full compliance in their cut in crude production by 486,000 bpd so that other OPEC members do the same. Another positive for European stocks is increased optimism in the economic outlook after Eurozone Nov retail sales rose more-than-expected and as Eurozone Dec economic confidence climbed to a 5-3/4 year high. Asian stocks settled mixed: Japan -0.34%, Hong Kong +0.21%, China -0.35%, Taiwan +0.15%, Australia +0.04%, Singapore +0.28%, South Korea +0.47%, India -0.44%. Japanese stocks closed lower after USD/JPY tumbled to a 3-week low, although stock prices closed near their highs as USD/JPY recovered its losses and moved higher.
The dollar index (DXY00 +0.19%) is up +0.14%. EUR/USD (^EURUSD) is down -0.23%. USD/JPY (^USDJPY) is up +0.61%.
Mar 10-year T-note prices (ZNH17 +0.09%) are up +3.5 ticks.
Eurozone Nov retail sales rose +2.3% y/y, stronger than expectations of +1.9% y/y, and Oct was revised upward to +3.0% y/y from the originally reported +2.4% y/y.
Eurozone Dec economic confidence rose +1.2 to 107.8, stronger than expectations of +0.3 to 106.8 and the highest in 5-3/4 years. The Dec business climate indicator rose +0.38 to 0.79, stronger than expectations of +0.05 to 0.47 and the highest in 5-1/2 years.
Key U.S. news today includes: (1) Dec non-farm payrolls (expected +180,000, Nov +178,000) and Dec unemployment rate (expected +0.1 to 4.7%, Nov -0.3 to 4.6%), (2) Nov trade deficit (expected -$ 44.7 billion, Oct -$ 42.6 billion), (3) Nov factory orders (expected -2.3%, Dec +2.7% and +0.8% ex transportation), (4) 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,” (5) Richmond Fed President Jeffrey Lacker (non-voter) speaks at the Maryland Bankers Association’s Economic Outlook Forum, (6) USDA weekly Export Sales.
Russell 1000 earnings reports today include: Orbital ATK (consensus $ 1.39).
U.S. IPO’s scheduled to price today: none.
Equity conferences today include: none.
Travelers (TRV -1.60%) was downgraded to ‘Underweight’ from ‘Neutral’ at Atlantic Equities LLP with a 12-month target price of $ 110.
McDonald’s (MCD +0.18%) was downgraded to ‘Neutral’ from ‘Buy’ at UBS with a 12-month target price of $ 130.
The Gap (GPS -3.93%) jumped 12% in after-hours trading after Retail Metrics reported an unexpected 4% increase in December total comparable sales, stronger than consensus of a -1.7% decline.
Amgen (AMGN +0.07%) rallied over 5% in after-hours trading after it won a court ruling blocking Sanofi and Regeneron from selling their Praluent cholesterol-lowering drug in the U.S. because it infringes patents. Regeneron (REGN -0.57%) dropped 1% and Sanofi (SNY +1.59%) slid 3% on the news.
Burlington Stores (BURL +0.29%) was rated a new ‘Outperform’ at Wedbush with a 12-month target price of $ 107.
G-III Apparel Group Ltd (GIII -4.47%) sold-off 8% in after-hours trading after it cut its view on 2017 adjusted Ebitda to $ 148 million-$ 155 million from a prior view of $ 163 million-$ 171 million.
Expedia (EXPE +0.84%) gained almost 1% in after-hours trading after it was upgraded to ‘Buy’ from ‘Hold’ at Stifel.
Helen of Troy Ltd (HELE +1.83%) climbed 3% in after-hours trading after it reported Q3 adjusted EPS of $ 2.37, higher than consensus of $ 1.90, and said it sees fiscal 2017 adjusted EPS of $ 6.20-$ 6.50, above consensus of $ 6.13.
Momenta Pharmaceuticals (MNTA -1.46%) climbed 7% in after-hours trading after it joined into a pact with CSL to develop and commercialize Fc mutimer proteins and will receive $ 50 million in upfront license fee and is eligible for up to $ 550 million in potential clinical, regulatory and commercialization milestones.
Summit Materials (SUM -1.54%) fell over 5% in after-hours trading after it offered 10 million shares of common stock.
Quotient Ltd (QTNT +6.52%) jumped 18% in after-hours trading after it reported positive results from MosaiQ study for antigen typing and affirmed that European field trials for blood grouping and initial disease screening panel to be completed in the first half of 2017.
Stemline Therapeutics (STML -4.62%) surged over 20% in after-hours trading after it reported a “positive” meeting with the FDA on an expedited registration pathway to full approval of its SL-401, a treatment for an aggressive form of leukemia.
Pandora Media (P unch) fell over 2% in after-hours trading after Sirius XM CFO said M&A with Pandora is “not very likely.”
Ruby Tuesday (RT +0.28%) tumbled 19% in after-hours trading after it reported Q2 revenue of $ 214.7 million versus $ 261 million y/y, and said same-restaurant sales were “disappointing” due to a net reduction of 109 company-owned restaurants.
Mar E-mini S&Ps (ESH17 -0.01%) this morning are down -0.75 of a point (-0.03%). Thursday’s closes: S&P 500 -0.08%, Dow Jones -0.21%, Nasdaq +0.56%. The S&P 500 on Thursday closed slightly lower on the +153,000 increase in Dec ADP employment, weaker than expectations of +175,000. There was also a sell-off in retail stocks led by an -18% plunge in Kohl’s and a -13% sell-off in Macy’s after both companies cut their 2017 EPS forecasts. Stocks were boosted by the -28,000 decline in U.S. weekly jobless claims to a 7-week low of 235,000 (vs expectations of -5,000) and the U.S. Dec ISM non-manufacturing index of unchanged at 57.2, stronger than expectations of -0.4 to 56.8 and the fastest pace of expansion in 14 months.
Mar 10-year T-notes (ZNH17 +0.09%) this morning are up +3.5 ticks. Thursday’s closes: TYH7 +23.00, FVH7 +13.25. Mar 10-year T-notes on Thursday climbed to a 1-month high and settled higher on the weaker-than-expected U.S. Dec ADP employment report and the slide in stocks, which boosted the safe-haven demand for T-notes.
The dollar index (DXY00 +0.19%) this morning is up +0.14 (+0.14%). EUR/USD (^EURUSD) is down -0.0024 (-0.23%). USD/JPY (^USDJPY) is up +0.70 (+0.61%). Thursday’s closes: Dollar index -1.310 (-1.28%), EUR/USD +0.0118 (+1.12%), USD/JPY -1.90 (-1.62%). The dollar index on Thursday fell to a 3-week low and closed lower on the smaller-than-expected increase in the U.S Dec ADP employment and on the drop in the 10-year T-note yield to a 3-week low, which undercut the dollar’s interest rate differentials.
Feb WTI crude oil prices (CLG17 +0.76%) this morning are up +34 cents (+0.63%) and Feb gasoline (RBG17 +1.14%) is +0.0166 (+1.01%). Thursday’s closes: Feb crude +0.50 (+0.94%), Feb gasoline -0.0066 (-0.40%). Feb crude oil and gasoline on Thursday settled mixed with Feb gasoline at a 1-1/2 week low. Crude oil prices were undercut by the +1.07 million bbl increase in crude supplies at Cushing to a 7-1/4 month high and the +8.31 million bbl surge in EIA gasoline stockpiles (well above expectations of +1.0 million bbl). Crude oil prices were boosted by the slide in the dollar index to a 3-week low and by the -7.05 million bbl plunge in EIA crude inventories (vs expectations of -2.0 million bbl).
|Friday, Jan 6|
|US||0830 ET||Dec non-farm payrolls expected +178,000, 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.|
|1115 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.|
|1530 ET||Dallas Fed President Robert Kaplan (voter) takes part in a panel discussion on the U.S. and global economic outlook at the annual AEA conference in Chicago.|
|Monday, Jan 9|
|US||0900 ET||Boston Fed President Eric Rosengren (non-voter) speaks at the Connecticut Business & Industry Associations annual Economic Summit and Outlook.|
|1100 ET||USDA weekly grain export inspections.|
|1245 ET||Atlanta Fed President Dennis Lockhart (non-voter) gives an annual forecast to the Rotary Club of Atlanta.|
|1500 ET||Nov consumer credit expected +$ 18.300 billion, Oct +$ 16.018 billion.|
|Biogen Inc||BIIB US||10:00||Analyst Day||Y 2017|
|Acuity Brands Inc||AYI US||11:00||Annual General Meeting||Y 2017|
|Orbital ATK Inc||OA US||Q3 2016 Earnings Release||Q3 2016||1.386|
|Baker Hughes Inc||BHI US||December 2016 Sales and Revenue Release – Rig Counts||2016|