Mar E-mini S&Ps (ESH17 +0.32%) are up +0.26% at a new all-time nearest-futures high and European stocks are up +1.10% at a 1-week high on optimism over the global economic outlook. Mar COMEX copper (HGH17 -0.55%) climbed to a 1-3/4 month high in overnight trade before falling back as expectations for stronger economic growth fueled gains in commodity producing stocks. European bourses found support on strength in bank stocks and insurance companies, while the CBOE Volatility Index, or VIX, a gauge of fear in the equity market, fell to a 2-1/2 year low today. Positive Japanese trade data also gave global equity markets a boost after Japan Dec exports climbed +5.4% y/y, the biggest increase in 17 months. Mar WTI crude oil (CLH17 -0.92%) is down -0.96% after API data late Tuesday showed U.S. crude supplies rose +2.93 million bbl last week. Asian stocks settled mostly higher: Japan +1.43%, Hong Kong +0.43%, China +0.22%, Taiwan closed for holiday, Australia +0.38%, Singapore -0.07%, South Korea +0.32%, India +1.21%.

The dollar index (DXY00 -0.42%) is down -0.32%. EUR/USD (^EURUSD) is up +0.18%. USD/JPY (^USDJPY) is down -0.27%.

Mar 10-year T-note prices (ZNH17 +0.01%) are down -1.5 ticks.

ECB Executive Board member Lautenschlaeger said “all preconditions for a stable rise in inflation exist and I am optimistic that we can soon turn to the question of an exit” from the ECB’s bond-buying program.

The German Jan IFO business climate unexpectedly fell -1.2 to 109.8, weaker than expectations of +0.3 to 111.3.

The Japan Dec trade balance widened to a surplus of 641.4 billion yen, larger than expectations of 281.1 billion yen. Dec exports rose +5.4% y/y, stronger than expectations of +1.1% y/y and the largest increase in 17 months. Dec imports fell -2.6% y/y, weaker than expectations of -0.8% y/y.


Key U.S. news today includes: (1) weekly MBA mortgage applications (previous +0.8% with purchase sub-index -5.2% and refi sub-index +6.8%), (2) Nov FHFA house price index (expected +0.4%, Oct +0.4% m/m), (3) the Treasury auctions $ 15 billion of 2-year floating-rate notes and $ 34 billion of 5-year T-notes, (4) House and Senate Republicans begin a 3-day policy retreat in Philadelphia, (5) EIA Weekly Petroleum Status Report.

Notable S&P 500 earnings reports today include: Abbott Labs (consensus $ 0.65), Boeing (2.32), Citrix (1.50), eBay (0.54), AT&T (0.66).

U.S. IPO’s scheduled to price today: App Dynamics (APPD), ObsEva (OBSV), AnaptysBio (ANAB).

Equity conferences: Hart Energy DUG Marcellus Utica Midstream Conference on Wed-Thu.


Boeing (BA +1.72%) climbed 1.5% in pre-market trading after it reported Q4 core EPS of $ 2.47, above consensus of $ 2.32.

Seagate Technology PLC (STX +2.94%) jumped 10% in after-hours trading after it reported Q2 adjusted EPS of $ 1.38, higher than consensus of $ 1.08, and said it sees fiscal 2017 EPS “at least” $ 4.50, above consensus of $ 3.77.

Discover Financial Service (DFS +0.87%) lost 1% in after-hours trading after it reported Q4 provision for loan losses of $ 579 million, up from $ 445 million in Q3.

Intuitive Surgical (ISRG +1.68%) rose 1% in after-hours trading after it reported Q4 adjusted EPS of $ 6.09, better than consensus of $ 5.98.

Capital One Financial (COF +2.14%) slipped nearly 2% in after-hours trading after it reported Q4 adjusted EPS of $ 1.45, weaker than consensus of $ 1.62.

Alcoa (AA +3.33%) gained over 2% in after-hours trading after it said it sees 2017 adjusted Ebitda ex-items $ 2.1 billion-$ 2.3 billion, up from $ 1.1 billion in 2016.

Phillips 66 Partners (PSXP +1.17%) was upgraded to ‘Buy’ from ‘Neutral’ by Citigroup, citing strong organic growth, ability to attract third-party revenue and compete with large non-sponsored MLPs.

Cree Inc (CREE -0.29%) rallied 4% in after-hours trading after it reported Q2 adjusted EPS of 20 cents, higher than consensus of 11 cents.

CA Technologies (CA +1.54%) fell over 2% in after-hours trading after it cut its full year adjusted EPS from continuing operations growth estimate to flat to up +2%, below a previous projection of up 2%-5%.

Bob Evans (BOBE -0.39%) jumped 15% in after-hours trading after it announce a sale of its restaurants to Golden Gate Capital for $ 565 million.

Concho Resources (CXO +2.24%) rose nearly 3% in after-hours trading after it sold a Permian Basin crude oil gathering system to Plains All-American for $ 1.2 billion.

Mercury Systems (MRCY +8.37%) lost 3% in after-hours trading after it announced a public offering of 5 million shares of common stock.

Newtek Business Services (NEWT +2.33%) dropped nearly 5% in after-hours trading after it announced a public offering of 1.5 million shares of common stock.

Michaels Cos. (MIK +0.65%) slid 2% in after-hours trading after it announced a secondary offering of 18 million shares of common stock.


Mar E-mini S&Ps (ESH17 +0.32%) this morning are up +6.00 points (+0.26%) at a new all-time nearest-futures high. Tuesday’s closes: S&P 500 +0.66%, Dow Jones +0.57%, Nasdaq +0.70%. The S&P 500 on Tuesday rallied to a fresh record high and closed higher on the +0.8 point increase in the U.S. Jan Markit manufacturing PMI o 55.1, stronger than expectations of +0.2 to 54.5 and the fastest pace of expansion in 1-3/4 years. In addition, mining stocks rallied after copper prices rose to a 1-week high and energy producers rallied as the price of crude oil rose +0.36%. Stocks were undercut by the -2.8% decline in U.S. Dec existing home sales to 5.49 million, weaker than expectations of -1.6% to 5.52 million.

Mar 10-year T-notes (ZNH17 +0.01%) this morning are down -1.5 ticks. Tuesday’s closes: TYH7 -19.00, FVH7 -11.00. Mar 10-year T-notes on Tuesday closed lower on signs of strength in U.S. manufacturing that bolstered the case for additional Fed rate hikes after the Jan Markit manufacturing PMI rose +0.8 to a 1-3/4 year high of 55.1. T-notes were also undercut by reduced safe-haven with the rally in stocks and supply pressures as the Treasury auctions $ 103 billion of T-notes this week.

The dollar index (DXY00 -0.42%) this morning is down -0.32 (-0.32%). EUR/USD (^EURUSD) is up +0.0019 (+0.18%). USD/JPY (^USDJPY) is down -0.31 (-0.27%). Tuesday’s closes: Dollar index +0.19 (+0.19%), EUR/USD -0.0034 (-0.32%), USD/JPY +1.08 (+0.96%). The dollar index on Tuesday closed higher on the stronger than expected U.S. Jan Markit manufacturing PMI report and the increase in T-note yields, which improved the dollar’s interest rate differentials.

Mar WTI crude oil prices (CLH17 -0.92%) this morning are down -51 cents (-0.96%) and Mar gasoline (RBH17 -1.55%) is -0.0274 (-1.71%). Tuesday’s closes: Mar crude +0.19 (+0.36%), Mar gasoline -0.0087 (-0.55%). Mar crude oil and gasoline on Tuesday settled mixed. Oil prices were boosted by signs that OPEC members are adhering to their production cut agreements after Iraq, OPEC’s second-biggest producer, said it has already reduced crude output by 180,000 bpd and will cut its output by another 30,000 bpd by the end of the month. Crude oil prices were undercut by a stronger dollar and by expectations that Wednesday’s EIA crude inventories will climb by 2.5 million bbl.


Wednesday, Jan 25
US0700 ETWeekly MBA mortgage applications, previous +0.8% with purchase sub-index -5.2% and refi sub-index +6.8%.
0900 ETNov FHFA house price index expected +0.4%, Oct +0.4% m/m.
1030 ETEIA Weekly Petroleum Status Report.
1130 ETTreasury auctions $ 15 billion of 2-year floating-rate notes.
1300 ETTreasury auctions $ 34 billion of 5-year T-notes.
n/aHouse and Senate Republicans begin a 3-day policy retreat in Philadelphia.
US0830 ETWeekly initial unemployment claims expected +13,000 to 247,000, previous -15,000 to 234,000. Weekly continuing claims expected -6,000 to 2.040 million, previous -47,000 to 2.046 million.
0830 ETDec wholesale inventories expected +0.1% m/m, Nov +1.0% m/m. Dec retail inventories, Nov +1.0% m/m.
0830 ETDec Chicago Fed national activity index expected +0.22 to -0.05, Nov -0.22 to -0.27.
0830 ETUSDA weekly Export Sales.
0945 ETJan Markit services PMI expected +0.5 to 54.4, Dec -0.7 to 53.9.
1000 ETDec new home sales expected -0.8% to 587,000, Nov +5.2% to 592,000.
1000 ETDec leading indicators expected +0.5%, Nov unch. LEI benchmark revisions.
1100 ETJan Kansas City Fed manufacturing survey expected -3 to 8, Dec +10 to 11.
1300 ETTreasury auctions $ 28 billion of 7-year T-notes.
n/aPresident Trump is scheduled to meet with House and Senate Republicans at their 3-day policy retreat in Philadelphia.
U.S. STOCK CALENDAR 01/25/2017
CompanyTickerTimeEvent DescriptionPeriodEstimate
Progressive Corp/ThePGR USBef-mktQ4 2016 Earnings ReleaseQ4 20160.506
McCormick & Co Inc/MDMKC USBef-mktQ4 2016 Earnings ReleaseQ4 20161.276
Huntington Bancshares Inc/OHHBAN USBef-mktQ4 2016 Earnings ReleaseQ4 20160.222
TE Connectivity LtdTEL USBef-mktQ1 2017 Earnings ReleaseQ1 20171.003
Textron IncTXT US6:30Q4 2016 Earnings ReleaseQ4 20160.865
United Technologies CorpUTX US6:55Q4 2016 Earnings ReleaseQ4 20161.564
State Street CorpSTT US7:00Q4 2016 Earnings ReleaseQ4 20161.325
Rockwell Automation IncROK US7:00Q1 2017 Earnings ReleaseQ1 20171.449
Abbott LaboratoriesABT US7:30Q4 2016 Earnings ReleaseQ4 20160.646
Hess CorpHES US7:30Q4 2016 Earnings ReleaseQ4 2016-1.074
Boeing Co/TheBA US7:30Q4 2016 Earnings ReleaseQ4 20162.322
WW Grainger IncGWW US7:30Q4 2016 Earnings ReleaseQ4 20162.358
Freeport-McMoRan IncFCX US8:00Q4 2016 Earnings ReleaseQ4 20160.35
Illinois Tool Works IncITW US8:00Q4 2016 Earnings ReleaseQ4 20161.372
Norfolk Southern CorpNSC US8:00Q4 2016 Earnings ReleaseQ4 20161.362
Amphenol CorpAPH US8:00Q4 2016 Earnings ReleaseQ4 20160.72
Kinder Morgan Inc/DEKMI US9:00Analyst MeetingY 2017
McKesson CorpMCK US16:00Q3 2017 Earnings ReleaseQ3 20172.915
F5 Networks IncFFIV US16:00Q1 2017 Earnings ReleaseQ1 20171.938
Citrix Systems IncCTXS US16:05Q4 2016 Earnings ReleaseQ4 20161.495
Western Digital CorpWDC US16:15Q2 2017 Earnings ReleaseQ2 20172.125
eBay IncEBAY US16:15Q4 2016 Earnings ReleaseQ4 20160.535
Murphy Oil CorpMUR USAft-mktQ4 2016 Earnings ReleaseQ4 2016-0.162
AT&T IncT USAft-mktQ4 2016 Earnings ReleaseQ4 20160.66
Varian Medical Systems IncVAR USAft-mktQ1 2017 Earnings ReleaseQ1 20171.053
Lam Research CorpLRCX USAft-mktQ2 2017 Earnings ReleaseQ2 20172.196
QUALCOMM IncQCOM USAft-mktQ1 2017 Earnings ReleaseQ1 20171.181
Vertex Pharmaceuticals IncVRTX USAft-mktQ4 2016 Earnings ReleaseQ4 20160.297
Xilinx IncXLNX USAft-mktQ3 2017 Earnings ReleaseQ3 20170.49
SL Green Realty CorpSLG USAft-mktQ4 2016 Earnings ReleaseQ4 20161.433
United Rentals IncURI USAft-mktQ4 2016 Earnings ReleaseQ4 20162.296
Crown Castle International CorpCCI USAft-mktQ4 2016 Earnings ReleaseQ4 20161.111