Mar E-mini S&Ps (ESH17 +0.31%) are up +0.30% and European stocks are up +0.40%. EUR/USD (^EURUSD) is down -0.71% at a 1-week low, which is giving European exporter stocks a boost, as the weaker euro boosts the earnings prospects of exporters. EUR/USD was undercut after German Dec industrial production unexpectedly fell -3.0% m/m, the largest decline in nearly 8 years, which may keep the ECB from tapering its asset purchases. Asian stocks settled mostly lower: Japan -0.35%, Hong Kong -0.07%, China -0.12%, Taiwan +0.17%, Australia +0.11%, Singapore +0.48%, South Korea -0.19%, India -0.37%. Chinese stocks were under pressure after China Jan foreign currency reserves fell to their lowest in nearly 6 years, which may prompt the government to tighten measures for controlling currency outflows and on companies from transferring money abroad. Japan’s Nikkei Stock Index fell to a 2-week low as exporter stocks sold-off when USD/JPY tumbled to a 2-1/4 month low Monday, which reduces the earnings prospects of exporting companies.
The dollar index (DXY00 +0.65%) is up +0.70% at a 1-week high. EUR/USD (^EURUSD) is down -0.71% at a 1-week low. USD/JPY (^USDJPY) is up +0.61%. GBP/USD is down -0.76% at a 2-week low after a gauge of UK retail sales unexpectedly fell last month.
Mar 10-year T-note prices (ZNH17 -0.06%) are down -2.5 ticks.
China Jan foreign currency reserves fell -$ 12.3 billion to $ 2.998 trillion, weaker than expectations of $ 3.004 trillion and the lowest in nearly 6 years.
German Dec industrial production unexpectedly fell -3.0% m/m, weaker than expectations of +0.3% m/m and the largest monthly decline in 7-3/4 years.
UK Jan BRC sales like-for-like unexpectedly fell -0.6% y/y, weaker than expectations of +0.9% y/y and the biggest decline in 5 months.
Key U.S. news today includes: (1) Dec trade balance (expected -$ 45.0 billion, Nov -$ 45.2 billion), (2) Dec JOLTS job openings (expected +47,000 to 5.569 million, Nov +71,000 to 5.522 million), (3) Treasury auctions $ 24 billion of 3-year T-notes, (4) Dec consumer credit (expected +$ 20.0 billion, Nov +$ 24.532 billion).
Notable S&P 500 earnings reports today include: GM (consensus $ 1.17), Disney (1.49), ADM (0.77), Emerson Electric (0.43), Church & Dwight (0.43), Gilead Sciences (2.54), Regeneron (3.05).
U.S. IPO’s scheduled to price today: none.
Equity conferences: Credit Suisse Financial Services Forum on Tue-Wed, Cowen Aerospace/Defense & Industrials Conference on Wed-Thu.
Biogen (BIIB +0.09%) is up 1% in pre-market trading after it was upgraded to a ‘Buy’ at Citigroup with a price target of $ 305.
Sysco (SYY -2.55%) was upgraded to ‘Outperform’ from ‘Neutral’ at Credit Suisse with a price target of $ 59.
Twenty-First Century Fox (FOXA -1.08%) gained 1% in after-hours trading after it reported Q2 adjusted EPS continuing operations of 53 cents, higher than consensus of 49 cents.
FMC Corp. (FMC +0.61%) fell nearly 5% in after-hours trading after it reported Q4 revenue of $ 865.6 million, below consensus of $ 916.1 million.
The Gap (GPS +0.04%) rose 3% in after-hours trading after it said it sees Q4 adjusted EPS of 50 cents-51 cents, above consensus of 45 cents.
Allison Transmission Holdings (ALSN -0.34%) rallied 5% in after-hours trading after it said it will buy back all ValueAct’s holdings in the company at $ 34.50 a share.
HealthEquity (HQY -0.70%) lost over 5% in after-hours trading after it forecast preliminary 2017 EPS of 38 cents-42 cents, below consensus of 42 cents.
Fabrinet (FN -0.64%) climbed over 3% in after-hours trading after it reported Q2 adjusted EPS of 91 cents, better than consensus of 79 cents, and then said it sees Q3 revenue of $ 360 million-$ 364 million, higher than consensus of $ 334.7 million.
YRC Worldwide (YRCW -1.31%) dropped 4% in after-hours trading after it reported a Q4 loss of -23 cents, a wider loss than consensus of -12 cents.
Teva Pharmaceutical (TEVA -0.26%) lost nearly 1% in after-hours trading after CEO Erez Vigodman was said to step down immediately.
Houlihan Lokey (HLI -0.58%) slid nearly 2% in after-hours trading after it announced a primary offering of 10 million shares of Class A common stock.
Luminex (LMNX -0.50%) fell 2% in after-hours trading after it reported Q4 adjusted EPS of 11 cents, weaker than consensus of 18 cents.
Cellectis SA (CLLS +0.05%) climbed nearly 5% in after-hours trading after it received an Investigational New Drug (IND) approval from the FDA to conduct a Phase 1 trial with its UCART123 in patients with acute leukemia and blastic plasmacytoid dendreitic cell neoplasm.
Antero Midstream Partners LP (AM +0.39%) slid 3% in after-hours trading after it launched a public offering of 5-million common units.
Mar E-mini S&Ps (ESH17 +0.31%) this morning are up +6.75 points. Monday’s closes: S&P 500 -0.21%, Dow Jones -0.09%, Nasdaq +0.12%. The S&P 500 on Monday closed lower on negative carry-over from a slide in European stocks on French election risks after French Presidential candidate Marine Le Pen said she will pull France out of the EU if she is elected in April. There was also weakness in energy producing stocks as crude oil prices fell -1.36%.
Mar 10-year T-notes (ZNH17 -0.06%) this morning are down -2.5 ticks. Monday’s closes: TYH7 +21.00, FVH7 +1.25. Mar 10-year T-notes on Monday rallied to a 2-week high and closed higher on carry-over support from a rally in German bunds to a 2-week high on increased safe-haven demand over French election risks after French presidential candidate Marine Le Pen unveiled her plans to take France out of the EU should she be elected in April. T-note prices were also boosted by reduced inflation expectations after the 10-year T-note breakeven inflation rate fell to a 2-week low.
The dollar index (DXY00 +0.65%) this morning is up +0.703 (+0.70%) at a 1-week high. EUR/USD (^EURUSD) is down -0.0076 (-0.71%) at a 1-week low. USD/JPY (^USDJPY) is up +0.68 (+0.61%). Monday’s closes: Dollar index +0.039 (+0.04%), EUR/USD -0.0033 (-0.31%), USD/JPY -0.87 (-0.77%). The dollar index on Monday closed higher on EUR/USD negative comments from ECB President Draghi who said that “support from our monetary measures is still needed if inflation rates are to converge toward our objective,” which suggests he does not expect to taper QE this year. EUR/USD was also hurt by European political concerns after French National Front Presidential candidate Marine Le Pen signaled she will pull France out of the EU if she is elected in April. Dollar gains were contained after USD/JPY tumbled to a 2-1/4 month low.
Mar WTI crude oil prices (CLH17 -0.34%)this morning are down -13 cents (-0.25%) and Mar gasoline (RBH17 -0.60%) is -0.0074 (-0.49%). Monday’s closes: Mar crude -0.73 (-1.36%), Mar gasoline -0.0434 (-2.79%). Mar crude oil and gasoline on Monday closed lower on a stronger dollar and on concern about increased U.S. crude oil production after last Friday’s data from Baker Hughes showed U.S. active oil rigs increased for a third week, up by 17 rigs to a 1-1/4 year high of 583 rigs. Crude oil was also undercut by expectations for Wednesday’s EIA crude inventories to increase by +2.5 million bbl.
|Tuesday, Feb 7|
|US||0830 ET||Dec trade balance expected -$ 45.0 billion, Nov -$ 45.2 billion.|
|1000 ET||Dec JOLTS job openings expected +47,000 to 5.569 million, Nov +71,000 to 5.522 million.|
|1300 ET||Treasury auctions $ 24 billion of 3-year T-notes.|
|1500 ET||Dec consumer credit expected +$ 20.0 billion, Nov +$ 24.532 billion.|
|Wednesday, Feb 8|
|US||0700 ET||Weekly MBA mortgage applications, previous -3.2% with purchase sub-index -5.6% and refi sub-index -1.4%.|
|1030 ET||EIA Weekly Petroleum Status Report.|
|1300 ET||Treasury auctions $ 23 billion of 10-year T-notes.|
|Church & Dwight Co Inc||CHD US||Bf-mkt||Q4 2016 Earnings Release||Q4 2016||0.425|
|Emerson Electric Co||EMR US||Bf-mkt||Q1 2017 Earnings Release||Q1 2017||0.422|
|Omnicom Group Inc||OMC US||Bf-mkt||Q4 2016 Earnings Release||Q4 2016||1.438|
|Vulcan Materials Co||VMC US||Bf-mkt||Q4 2016 Earnings Release||Q4 2016||0.851|
|Cardinal Health Inc||CAH US||Bf-mkt||Q2 2017 Earnings Release||Q2 2017||1.229|
|AMETEK Inc||AME US||Bf-mkt||Q4 2016 Earnings Release||Q4 2016||0.582|
|Fidelity National Info Services||FIS US||Bf-mkt||Q4 2016 Earnings Release||Q4 2016||1.141|
|TransDigm Group Inc||TDG US||Bf-mkt||Q1 2017 Earnings Release||Q1 2017||2.507|
|Michael Kors Holdings Ltd||KORS US||Bf-mkt||Q3 2017 Earnings Release||Q3 2017||1.633|
|Mallinckrodt PLC||MNK US||Bf-mkt||C1 2017 Earnings Release||C1 2017||1.787|
|Centene Corp||CNC US||6:00||Q4 2016 Earnings Release||Q4 2016||1.108|
|National Oilwell Varco Inc||NOV US||6:45||Q4 2016 Earnings Release||Q4 2016||-0.293|
|Archer-Daniels-Midland Co||ADM US||7:00||Q4 2016 Earnings Release||Q4 2016||0.781|
|Mosaic Co/The||MOS US||7:00||Q4 2016 Earnings Release||Q4 2016||0.129|
|S&P Global Inc||SPGI US||7:15||Q4 2016 Earnings Release||Q4 2016||1.189|
|Intercontinental Exchange Inc||ICE US||7:30||Q4 2016 Earnings Release||Q4 2016||0.693|
|General Motors Co||GM US||7:30||Q4 2016 Earnings Release||Q4 2016||1.17|
|Michael Kors Holdings Ltd||KORS US||8:00||Q3 2017 Earnings Call||Q3 2017|
|S&P Global Inc||SPGI US||8:30||Q4 2016 Earnings Call||Q4 2016|
|Omnicom Group Inc||OMC US||8:30||Q4 2016 Earnings Call||Q4 2016|
|Tesoro Corp||TSO US||8:30||Q4 2016 Earnings Call||Q4 2016|
|Cardinal Health Inc||CAH US||8:30||Q2 2017 Earnings Call||Q2 2017|
|AMETEK Inc||AME US||8:30||Q4 2016 Earnings Call||Q4 2016|
|Centene Corp||CNC US||8:30||Q4 2016 Earnings Call||Q4 2016|
|Intercontinental Exchange Inc||ICE US||8:30||Q4 2016 Earnings Call||Q4 2016|
|Fidelity National Info Services||FIS US||8:30||Q4 2016 Earnings Call||Q4 2016|
|Mallinckrodt PLC||MNK US||8:30||C1 2017 Earnings Call||C1 2017|
|Archer-Daniels-Midland Co||ADM US||9:00||Q4 2016 Earnings Call||Q4 2016|
|FMC Corp||FMC US||9:00||Q4 2016 Earnings Call||Q4 2016|
|National Oilwell Varco Inc||NOV US||9:00||Q4 2016 Earnings Call||Q4 2016|
|Mosaic Co/The||MOS US||9:00||Q4 2016 Earnings Call||Q4 2016|
|Credicorp Ltd||BAP US||9:30||Q4 2016 Earnings Call||Q4 2016|
|General Motors Co||GM US||10:00||Q4 2016 Earnings Call||Q4 2016|
|Emerson Electric Co||EMR US||11:00||Annual General Meeting|
|Vulcan Materials Co||VMC US||11:00||Q4 2016 Earnings Call||Q4 2016|
|TransDigm Group Inc||TDG US||11:00||Q1 2017 Earnings Call||Q1 2017|
|Church & Dwight Co Inc||CHD US||12:30||Q4 2016 Earnings Call||Q4 2016|
|Emerson Electric Co||EMR US||14:00||Q1 2017 Earnings Call||Q1 2017|
|Macerich Co/The||MAC US||14:00||Q4 2016 Earnings Call||Q4 2016|
|Mondelez International Inc||MDLZ US||16:00||Q4 2016 Earnings Release||Q4 2016||0.49|
|Akamai Technologies Inc||AKAM US||16:01||Q4 2016 Earnings Release||Q4 2016||0.678|
|Walt Disney Co/The||DIS US||16:30||Q1 2017 Earnings Call||Q1 2017|
|Gilead Sciences Inc||GILD US||16:30||Q4 2016 Earnings Call||Q4 2016|
|O’Reilly Automotive Inc||ORLY US||16:30||Q4 2016 Earnings Release||Q4 2016||2.541|
|Akamai Technologies Inc||AKAM US||16:30||Q4 2016 Earnings Call||Q4 2016|
|Microchip Technology Inc||MCHP US||17:00||Q3 2017 Earnings Call||Q3 2017|
|Mondelez International Inc||MDLZ US||17:00||Q4 2016 Earnings Call||Q4 2016|
|CSRA Inc||CSRA US||17:00||Q3 2017 Earnings Call||Q3 2017|
|Walt Disney Co/The||DIS US||Aft-mkt||Q1 2017 Earnings Release||Q1 2017||1.493|
|Gilead Sciences Inc||GILD US||Aft-mkt||Q4 2016 Earnings Release||Q4 2016||2.544|
|Microchip Technology Inc||MCHP US||Aft-mkt||Q3 2017 Earnings Release||Q3 2017||0.903|
|Pioneer Natural Resources Co||PXD US||Aft-mkt||Q4 2016 Earnings Release||Q4 2016||0.315|
|Assurant Inc||AIZ US||Aft-mkt||Q4 2016 Earnings Release||Q4 2016||0.527|
|CSRA Inc||CSRA US||Aft-mkt||Q3 2017 Earnings Release||Q3 2017||0.457|
|Fortive Corp||FTV US||Aft-mkt||Q4 2016 Earnings Release||Q4 2016||0.668|
|Fortive Corp||FTV US||17:30||Q4 2016 Earnings Call||Q4 2016|
|Rockwell Automation Inc||ROK US||18:30||Annual General Meeting||Y 2017|
|Regeneron Pharmaceuticals Inc||REGN US||Q4 2016 Earnings Release||Q4 2016||3.047|