US : Pre Market News – 07 Feb 2017

PREMARKET WORLD NEWS

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.

U.S. STOCK PREVIEW

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.

PREMARKET U.S. STOCKS

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.

MARKET COMMENTS

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.

 

GLOBAL EVENT CALENDAR 02/07/2017
Tuesday, Feb 7
US0830 ETDec trade balance expected -$ 45.0 billion, Nov -$ 45.2 billion.
1000 ETDec JOLTS job openings expected +47,000 to 5.569 million, Nov +71,000 to 5.522 million.
1300 ETTreasury auctions $ 24 billion of 3-year T-notes.
1500 ETDec consumer credit expected +$ 20.0 billion, Nov +$ 24.532 billion.
Wednesday, Feb 8
US0700 ETWeekly MBA mortgage applications, previous -3.2% with purchase sub-index -5.6% and refi sub-index -1.4%.
1030 ETEIA Weekly Petroleum Status Report.
1300 ETTreasury auctions $ 23 billion of 10-year T-notes.
U.S. STOCK CALENDAR 02/07/2017
CompanyTickerTimeEvent DescriptionPeriodEstimate
Church & Dwight Co IncCHD USBf-mktQ4 2016 Earnings ReleaseQ4 20160.425
Emerson Electric CoEMR USBf-mktQ1 2017 Earnings ReleaseQ1 20170.422
Omnicom Group IncOMC USBf-mktQ4 2016 Earnings ReleaseQ4 20161.438
Vulcan Materials CoVMC USBf-mktQ4 2016 Earnings ReleaseQ4 20160.851
Cardinal Health IncCAH USBf-mktQ2 2017 Earnings ReleaseQ2 20171.229
AMETEK IncAME USBf-mktQ4 2016 Earnings ReleaseQ4 20160.582
Fidelity National Info ServicesFIS USBf-mktQ4 2016 Earnings ReleaseQ4 20161.141
TransDigm Group IncTDG USBf-mktQ1 2017 Earnings ReleaseQ1 20172.507
Michael Kors Holdings LtdKORS USBf-mktQ3 2017 Earnings ReleaseQ3 20171.633
Mallinckrodt PLCMNK USBf-mktC1 2017 Earnings ReleaseC1 20171.787
Centene CorpCNC US6:00Q4 2016 Earnings ReleaseQ4 20161.108
National Oilwell Varco IncNOV US6:45Q4 2016 Earnings ReleaseQ4 2016-0.293
Archer-Daniels-Midland CoADM US7:00Q4 2016 Earnings ReleaseQ4 20160.781
Mosaic Co/TheMOS US7:00Q4 2016 Earnings ReleaseQ4 20160.129
S&P Global IncSPGI US7:15Q4 2016 Earnings ReleaseQ4 20161.189
Intercontinental Exchange IncICE US7:30Q4 2016 Earnings ReleaseQ4 20160.693
General Motors CoGM US7:30Q4 2016 Earnings ReleaseQ4 20161.17
Michael Kors Holdings LtdKORS US8:00Q3 2017 Earnings CallQ3 2017
S&P Global IncSPGI US8:30Q4 2016 Earnings CallQ4 2016
Omnicom Group IncOMC US8:30Q4 2016 Earnings CallQ4 2016
Tesoro CorpTSO US8:30Q4 2016 Earnings CallQ4 2016
Cardinal Health IncCAH US8:30Q2 2017 Earnings CallQ2 2017
AMETEK IncAME US8:30Q4 2016 Earnings CallQ4 2016
Centene CorpCNC US8:30Q4 2016 Earnings CallQ4 2016
Intercontinental Exchange IncICE US8:30Q4 2016 Earnings CallQ4 2016
Fidelity National Info ServicesFIS US8:30Q4 2016 Earnings CallQ4 2016
Mallinckrodt PLCMNK US8:30C1 2017 Earnings CallC1 2017
Archer-Daniels-Midland CoADM US9:00Q4 2016 Earnings CallQ4 2016
FMC CorpFMC US9:00Q4 2016 Earnings CallQ4 2016
National Oilwell Varco IncNOV US9:00Q4 2016 Earnings CallQ4 2016
Mosaic Co/TheMOS US9:00Q4 2016 Earnings CallQ4 2016
Credicorp LtdBAP US9:30Q4 2016 Earnings CallQ4 2016
General Motors CoGM US10:00Q4 2016 Earnings CallQ4 2016
Emerson Electric CoEMR US11:00Annual General Meeting
Vulcan Materials CoVMC US11:00Q4 2016 Earnings CallQ4 2016
TransDigm Group IncTDG US11:00Q1 2017 Earnings CallQ1 2017
Church & Dwight Co IncCHD US12:30Q4 2016 Earnings CallQ4 2016
Emerson Electric CoEMR US14:00Q1 2017 Earnings CallQ1 2017
Macerich Co/TheMAC US14:00Q4 2016 Earnings CallQ4 2016
Mondelez International IncMDLZ US16:00Q4 2016 Earnings ReleaseQ4 20160.49
Akamai Technologies IncAKAM US16:01Q4 2016 Earnings ReleaseQ4 20160.678
Walt Disney Co/TheDIS US16:30Q1 2017 Earnings CallQ1 2017
Gilead Sciences IncGILD US16:30Q4 2016 Earnings CallQ4 2016
O’Reilly Automotive IncORLY US16:30Q4 2016 Earnings ReleaseQ4 20162.541
Akamai Technologies IncAKAM US16:30Q4 2016 Earnings CallQ4 2016
Microchip Technology IncMCHP US17:00Q3 2017 Earnings CallQ3 2017
Mondelez International IncMDLZ US17:00Q4 2016 Earnings CallQ4 2016
CSRA IncCSRA US17:00Q3 2017 Earnings CallQ3 2017
Walt Disney Co/TheDIS USAft-mktQ1 2017 Earnings ReleaseQ1 20171.493
Gilead Sciences IncGILD USAft-mktQ4 2016 Earnings ReleaseQ4 20162.544
Microchip Technology IncMCHP USAft-mktQ3 2017 Earnings ReleaseQ3 20170.903
Pioneer Natural Resources CoPXD USAft-mktQ4 2016 Earnings ReleaseQ4 20160.315
Assurant IncAIZ USAft-mktQ4 2016 Earnings ReleaseQ4 20160.527
CSRA IncCSRA USAft-mktQ3 2017 Earnings ReleaseQ3 20170.457
Fortive CorpFTV USAft-mktQ4 2016 Earnings ReleaseQ4 20160.668
Fortive CorpFTV US17:30Q4 2016 Earnings CallQ4 2016
Rockwell Automation IncROK US18:30Annual General MeetingY 2017
Regeneron Pharmaceuticals IncREGN USQ4 2016 Earnings ReleaseQ4 20163.047

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