US : Pre Market News – 21 Feb 2017

PREMARKET WORLD NEWS

Mar E-mini S&Ps (ESH17 +0.24%) are up +0.23% at a new all-time nearest-futures high and European stocks are up +0.38%. Signs of strength in the European economy are giving stocks a lift after the Eurozone Feb Markit composite PMI expanded at the fastest pace since the data series began in 2014. A +1.67% rally in Mar WTI crude oil (CLH17 +1.59%) to a 2-week high is also giving energy producing stocks a boost. Asian stocks settled mostly higher: Japan +0.68%, Hong Kong -0.76%, China +0.41%, Taiwan +0.11%, Australia -0.07%, Singapore -0.08%, South Korea +0.88%, India +0.35%. China’s Shanghai Composite climbed to a 2-1/2 month high on optimism in the global economic outlook and Japanese stocks found support on strength in manufacturing activity after the Japan Feb Nikkei manufacturing PMI expanded at the fastest pace in 2-3/4 years.

The dollar index (DXY00 +0.56%) is up +0.52% after Philadelphia Fed President Harker said that he would “not take the March FOMC meeting off the table for a rate hike.” EUR/USD (^EURUSD) is down -0.72%. USD/JPY (^USDJPY) is up +0.46%.

Mar 10-year T-note prices (ZNH17 -0.20%) are down -7 ticks.

Philadelphia Fed President Harker (voter) said the Fed needs to keep moving along a path of gradual rate hikes to minimize the risk of falling behind the curve on inflation and that he would “not take the March FOMC meeting off the table for a rate hike at this point.”

The Eurozone Feb Markit composite PMI rose +1.6 to 56.0, stronger than expectations of -0.1 to 54.3 and the fastest pace of expansion since the data series began in 2014.

Eurozone Feb Markit manufacturing PMI unexpectedly rose +0.3 to 55.5, stronger than expectations of -0.2 to 55.0 and the fastest pace of expansion since the data series began in 2014.

The Japan Feb Nikkei manufacturing PMI rose +0.8 to 53.5, the fastest pace of expansion in 2-3/4 years.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Minneapolis Fed President Neel Kashkari (voter) participates in a discussion about the economy and the role of the Federal Reserve at a meeting of the Financial Planning Association of Minnesota in Golden Valley, MN, (2) Feb Markit manufacturing PMI (expected +0.3 to 55.3, Jan +0.7 to 55.0) and Feb Markit services PMI (expected +0.2 to 55.8, Jan +1.7 to 55.6), (3) Philadelphia Fed President Patrick Harker (voter) speaks on the economic outlook at the Wharton School of the University of Pennsylvania, (4) Treasury auctions $ 26 billion of 2-year T-notes, (5) San Francisco Fed President John Williams (non-voter) gives an economic presentation to students at Boise State University, and (6) USDA weekly grain export inspections.

Notable S&P 500 earnings reports today include: Wal-Mart (consensus $ 1.29), Home Depot (1.33), Medtronic (1.11), Macy’s (1.96), Newmont Mining (0.32), First Solar (0.98), Verisk Analytics (0.78).

U.S. IPO’s scheduled to price today: none.

Equity conferences: CAGNY Investor Conference on Tue-Fri, Barclays Industrial Select Conference on Wed-Thu, RBC Capital Markets Health Care Conference on Wed-Thu, Cantor Fitzgerald Internet & Technology Services Conference on Thu.

PREMARKET U.S. STOCKS

Wal-Mart (WMT +0.73%) rose 2% in pre-market trading after it reported Q4 adjusted EPS of $ 1.30, above consensus of $ 1.29, as it said Q4 comparable sales were up +1.8%, higher than consensus of up +1.3%.

Colgate-Palmolive (CL +4.32%) was upgraded to ‘Outperform’ from ‘Neutral at Exane BNP Paribas with a price target of $ 90.

Dick’s Sporting Goods (DKS +2.66%) was downgraded to ‘Market Perform’ form ‘Outperform’ at Oppenheimer.

Henry Schein (HSIC +0.51%) reported Q4 adjusted EPS of $ 1.88, better than consensus of $ 1.84.

Avangrid (AGR +0.32%) reported Q4 operating revenue of $ 1.49 billion, below consensus of $ 1.55 billion.

Verizon Communications (VZ +1.51%) was upgraded to ‘Buy’ from ‘Neutral’ at MoffetNathanson with a price target of $ 54.

Freeport-McMoRan (FCX -1.06%) was downgraded to ‘Sell’ from ‘Hold’ at Deutsche Bank.

Eaton Vance (EV +0.35%) was upgraded to ‘Neutral’ from ‘Underperform’ at Bank of America/Merrill Lynch.

Credit Acceptance Corp. (CACC -5.14%) authorized an additional 1 million shares to its stock repurchase program.

Sucampo Pharmaceuticals (SCMP +0.43%) jumped nearly 6% in after-hours trading after it was announced that it will replace Blue Nile in the S&P SmallCap 600 at the open of trade Thursday, February 23.

DryShips (DRYS +2.76%) plunged 20% in after-hours trading after it entered into a pact with Kalani Investments where DryShips may sell up to $ 200 million of stock to Kalani over a period of 2-years.

MARKET COMMENTS

Mar E-mini S&Ps (ESH17 +0.24%) this morning are up +5.50 points (+0.23%) at a new all-time nearest-futures high. Friday’s closes: S&P 500 +0.17%, Dow Jones +0.02%, Nasdaq +0.45%. The S&P 500 on Friday closed higher on the +0.6% increase in U.S. Jan leading indicators (stronger than expectations of +0.5% and the biggest increase in 1-1/2 years) and on a late-day rally in industrial and defense stocks after President Trump reiterated his promise to rebuild the U.S. military. Stock prices were undercut by weakness from a slide in European stocks on French presidential election fears.

Mar 10-year T-notes (ZNH17 -0.20%) this morning are down -7 ticks. Friday’s closes: TYH7 +15.50, FVH7 +9.50. Mar 10-year T-notes on Friday closed higher on carry-over support from a rally in German bunds to a 1-week high on increased safe-haven demand from European political risks as concerns arose about a discussion of a left-wing alliance in France’s presidential election campaign may boost the chances of anti-euro Marine Le Pen winning France’s presidential election. T-notes were also boosted by reduced inflation expectations after the 10-year T-note breakeven inflation rate fell to a 1-week low.

The dollar index (DXY00 +0.56%) this morning is up +0.52 (+0.52%). EUR/USD (^EURUSD) is down -0.0078 (-0.72%). USD/JPY (^USDJPY) is up +0.52 (+0.46%). Friday’s closes: Dollar index +0.46 (+0.45%), EUR/USD -0.0058 (-0.54%), USD/JPY -0.40 (-0.35%). The dollar index on Friday closed higher on the stronger-than-expected U.S. Jan leading indicators report and on weakness in EUR/USD after Credit Suisse Bank said there’s “little benefit” in being long EUR/USD over the next two to three months due to political risks in Europe.

Mar WTI crude oil prices (CLH17 +1.59%) this morning are up +89 cents (+1.67%) at a 2-week high and Mar gasoline (RBH17 +0.06%) is +0.0003 (+0.02%). Friday’s closes: Mar crude +0.04 (+0.07%), Mar gasoline -0.0081 (-0.53%). Mar crude oil and gasoline on Friday settled mixed with Mar gasoline at a 1-week low. Crude oil prices were undercut by a stronger dollar and by concern about increased U.S. crude production after Baker Hughes reported that U.S. active oil rigs rose by 6 rigs in the week ended Feb 17 to 597 rigs, a 16-month high. Crude oil prices were also undercut by the plunge in the crack spread to an 11-3/4 month low, which may curb refinery demand for crude to refine into gasoline. Crude closed higher after Russian Energy Minister Novak said Russia may cut its crude output by more than 100,000 bpd this month, more than initially agreed to under the deal with OPEC.

 

GLOBAL EVENT CALENDAR 02/21/2017
Tuesday, Feb 21
US0850 ETMinneapolis Fed President Neel Kashkari (voter) participates in a discussion about the economy and the role of the Federal Reserve at a meeting of the Financial Planning Association of Minnesota in Golden Valley, MN.
0945 ETFeb Markit manufacturing PMI expected +0.3 to 55.3, Jan +0.7 to 55.0. Feb Markit services PMI expected +0.2 to 55.8, Jan +1.7 to 55.6.
1100 ETUSDA weekly grain export inspections.
1200 ETPhiladelphia Fed President Patrick Harker (voter) speaks on the economic outlook at the Wharton School of the University of Pennsylvania.
1300 ETTreasury auctions $ 26 billion of 2-year T-notes.
1530 ETSan Francisco Fed President John Williams (non-voter) gives an economic presentation to students at Boise State University.
Wednesday, Feb 22
US0700 ETWeekly MBA mortgage applications, previous -3.7% with purchase sub-index -4.5% and refi sub-index -2.9%.
1000 ETJan existing home sales expected +0.9% to 5.54 million, Dec -2.8% to 5.49 million.
1130 ETTreasury auctions $ 13 billion 2-year floating-rate notes.
1300 ETFed Governor Jerome Powell speaks on the economic outlook and monetary policy at a Forecasters Club of New York luncheon.
1300 ETTreasury auctions $ 34 billion of 5-year T-notes.
1400 ETMinutes of the Jan 31-Feb1 FOMC meeting.
U.S. STOCK CALENDAR 02/21/2017
CompanyTickerTimeEvent DescriptionPeriodEstimate
Ecolab IncECL USBf-mktQ4 2016 Earnings ReleaseQ4 20161.273
Expeditors Intl of WashingtonEXPD USBf-mktQ4 2016 Earnings ReleaseQ4 20160.597
Henry Schein IncHSIC USBf-mktQ4 2016 Earnings ReleaseQ4 20161.842
Quanta Services IncPWR USBf-mktQ4 2016 Earnings ReleaseQ4 20160.565
Advance Auto Parts IncAAP USBf-mktQ4 2016 Earnings ReleaseQ4 20161.084
Scripps Networks Interactive IncSNI USBf-mktQ4 2016 Earnings ReleaseQ4 20161.071
Medtronic PLCMDT US6:45Q3 2017 Earnings ReleaseQ3 20171.109
Wal-Mart Stores IncWMT US7:00Q4 2017 Earnings ReleaseQ4 20171.291
Wal-Mart Stores IncWMT US7:00Q4 2017 Earnings Call – Pre-RecordedQ4 2017
Macy’s IncM US8:00Q4 2017 Earnings ReleaseQ4 20171.95
Medtronic PLCMDT US8:00Q3 2017 Earnings CallQ3 2017
Advance Auto Parts IncAAP US8:00Q4 2016 Earnings CallQ4 2016
Genuine Parts CoGPC US8:30Q4 2016 Earnings ReleaseQ4 20161.013
United Parcel Service IncUPS US8:30Investor ConferenceY 2017
Home Depot Inc/TheHD US9:00Q4 2017 Earnings ReleaseQ4 20171.333
Home Depot Inc/TheHD US9:00Q4 2017 Earnings CallQ4 2017
Quanta Services IncPWR US9:00Q4 2016 Earnings CallQ4 2016
Cerner CorpCERN US9:30Investment Community MeetingY 2017
Macy’s IncM US10:00Q4 2017 Earnings CallQ4 2017
Mattel IncMAT US10:00Analyst Meeting – Q&AY 2017
Wal-Mart Stores IncWMT US10:00Q4 2017 Earnings Call – Follow-UpC4 2017
Henry Schein IncHSIC US10:00Q4 2016 Earnings CallQ4 2016
Scripps Networks Interactive IncSNI US10:00Q4 2016 Earnings CallQ4 2016
Genuine Parts CoGPC US11:00Q4 2016 Earnings CallQ4 2016
Tractor Supply CoTSCO US12:00Investment Community MeetingY 2017
Ecolab IncECL US13:00Q4 2016 Earnings CallQ4 2016
Eversource EnergyES US16:15Q4 2016 Earnings ReleaseQ4 20160.743
Edison InternationalEIX US16:30Q4 2016 Earnings ReleaseQ4 20160.957
Edison InternationalEIX US16:30Q4 2016 Earnings CallQ4 2016
First Solar IncFSLR US16:30Q4 2016 Earnings CallQ4 2016
Newmont Mining CorpNEM USAft-mktQ4 2016 Earnings ReleaseQ4 20160.316
Newfield Exploration CoNFX USAft-mktQ4 2016 Earnings ReleaseQ4 20160.368
FirstEnergy CorpFE USAft-mktQ4 2016 Earnings ReleaseQ4 20160.394
Extra Space Storage IncEXR USAft-mktQ4 2016 Earnings ReleaseQ4 20160.976
First Solar IncFSLR USAft-mktQ4 2016 Earnings ReleaseQ4 20160.982
Concho Resources IncCXO USAft-mktQ4 2016 Earnings ReleaseQ4 2016-0.075
American Water Works Co IncAWK USAft-mktQ4 2016 Earnings ReleaseQ4 20160.57
Verisk Analytics IncVRSK USAft-mktQ4 2016 Earnings ReleaseQ4 20160.778

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