Mar E-mini S&Ps (ESH17 -0.09%) this morning are down -0.10% as they consolidate following Wednesday’s rally to a new all-time high. European stocks are down -0.13% on concern that mounting price pressures may prompt the ECB to begin tapering QE. Eurozone Feb CPI rose +2.0% y/y, the fastest pace in 4 years, and Eurozone Jan PPI climbed +3.5% y/y, the largest annual increase in 4-3/4 years. Energy producing stocks are also lower as record U.S. crude inventories and a stronger dollar undercuts crude prices with Apr WTI crude (CLJ17 -0.87%) down -0.80%. Asian stocks settled mixed: Japan +0.88%, Hong Kong -0.20%, China -0.52%, Taiwan +0.18%, Australia +1.26%, Singapore +0.44%, South Korea +0.96%, India -0.50%. Japan’s Nikkei Stock Index rallied to a 14-1/2 month high on carry-over support from the rally in the S&P 500 Wednesday to a new record high along with weakness in the yen that boosted exporter stocks as USD/JPY climbed to a 2-week high.
The dollar index (DXY00 +0.30%) is up +0.22% at a 1-1/2 month high after Fed Governor Brainard became the latest Fed official to support a rate hike when she said late Wednesday that a rate hike “will likely be appropriate soon.” EUR/USD (^EURUSD) is down -0.25%. USD/JPY (^USDJPY) is up +0.49% at a 2-week high.
Jun 10-year T-note prices (ZNM17 -0.14%) are down -2.5 ticks.
The Eurozone Jan unemployment rate remained unchanged at 9.6%, right on expectations and a 7-1/2 year low.
Eurozone Feb CPI rose +2.0% y/y, right on expectations and the fastest pace of increase in 4 years. The Feb core CPI rose +0.9% y/y, right on expectations.
Eurozone Jan PPI rose +3.5% y/y, stronger than expectations of +3.2% y/y and the fastest pace of increase in 4-3/4 years.
Key U.S. news today includes: (1) Feb Challenger job cuts (Jan -38.8% y/y), (2) weekly initial unemployment claims (expected +1,000 to 245,000, previous +6,000 to 244,000) and continuing claims (expected unch at 2.060 million, previous -17,000 to 2.060 million), (3) Cleveland Fed President Loretta Mester (non-voter) speaks on leadership at the Athena Center for Leadership Studies at Barnard College in New York, (4) USDA weekly Export Sales.
Notable S&P 500 earnings reports today include: Costco (consensus $ 1.36), Kroger (0.52), Cooper Cos (1.87), Autodesk (-0.34).
U.S. IPO’s scheduled to price today: none.
Equity conferences: J.P. Morgan Gaming, Lodging, Restaurant & Leisure Management Access Forum on Thu, Bank of America Merrill Lynch Global Agriculture and Chemicals Conference on Wed-Thu, BTIG Healthcare Conference on Thu, Capital Link Master Limited Partnership Investing Forum on Thu, Simmons Energy Conference on Thu-Fri.
Time Warner (TWX +0.70%) was downgraded to ‘Hold’ from ‘Buy’ at Loop Capital with a price target of $ 107.50
Broadcom Ltd (AVGO +2.00%) rallied 4% in pre-market trading after it reported Q1 adjusted EPS continuing operations of $ 3.63, better than consensus of $ 3.48.
Shake Shack (SHAK +0.81%) fell 4% in after-hours trading after it said it sees full-year revenue of $ 349 million-$ 353 million, below consensus of $ 354.5 million.
Monster Beverage (MNST +1.38%) jumped 14% in pre-market trading after it reported Q4 sales of $ 753.8 million, stronger than consensus of $ 722.1 million.
Planet Fitness (PLNT +1.58%) dropped almost 6% in after-hours trading after it said it sees full-year adjusted EPS of 72 cents-75 cents, below consensus of 75 cents.
Glaukos (GKOS +0.64%) rallied over 7% in after-hours trading after it said it sees full-year net sales of $ 160 million-$ 165 million, better than consensus of $ 147.5 million.
Retrophin (RTRX +1.08%) dropped 5% in after-hours trading after it said it sees fiscal 2017 net revenue of $ 150 million-$ 160 million, less than consensus of $ 162.7 million.
Box Inc. (BOX +3.63%) slipped nearly 3% in after-hours trading after it said it sees a Q1 adjusted loss of -14 cents to -15 cents a share, wider than consensus of -12 cents.
Health Insurance Innovations (HIIQ -0.56%) climbed 4% in after-hours trading after it reported Q4 EPS of 35 cents, well above consensus of 18 cents.
Juno Therapeutics (JUNO +5.28%) dropped 6% in after-hours trading after it reported a Q4 adjusted loss of -65 cents a share, wider than consensus of -63 cents.
Pacific Ethanol (PEIX +6.37%) rose 4% in after-hours trading after it reported Q4 revenue of $ 441.7 million, above consensus of $ 423.8 million.
Nektar Therapeutics (NKTR -0.54%) lost nearly 3% in after-hours trading after it reported Q4 revenue of $ 37.5 million, below consensus of $ 40.7 million.
Kratos Defense & Security Solutions (KTOS -2.67%) slid 4% in after-hours trading after it announced a proposed public offering of common stock, although no amount was given.
Casella Waste Systems (CWST +3.68%) jumped 7% in after-hours trading after it said it sees 2017 revenue of $ 577 million-$ 587 million, better than consensus of $ 575.3 million.
Synergy Pharmaceuticals (SGYP -1.90%) lost nearly 3% in after-hours trading after it reported a Q4 loss of -31 cents a share, wider than consensus of -18 cents.
AXT Inc. (AXTI +5.63%) tumbled nearly 10% in after-hours trading after it announced a proposed public offering of common stock.
Mar E-mini S&Ps (ESH17 -0.09%) this morning are down -2.50 points (-0.10%). Wednesday’s closes: S&P 500 +1.37%, Dow Jones +1.46%, Nasdaq +1.14%. The S&P 500 on Wednesday rallied to a new record high and settled higher on signs of strength in Chinese manufacturing activity after the China Feb manufacturing PMI unexpectedly rose +0.3 to 51.6, stronger than expectations of -0.1 to 51.2. There was also positive U.S. data in the form of the +1.7 point increase in the U.S. Feb ISM manufacturing index to 57.7 (stronger than expectations of +0.2 to 56.2 and the fastest pace of expansion in 2-1/2 years) and the +0.4% increase in Jan personal income (stronger than expectations of +0.3%, which may help sustain the U.S. recovery).
Jun 10-year T-notes (ZNM17 -0.14%) this morning are down -2.5 ticks. Wednesday’s closes: TYM7 -27.50, FVM7 -18.25. Jun 10-year T-notes on Wednesday fell to a 1-1/2 week low and closed lower on the sharp rise in expectations to 80% for a Fed rate hike at its next meeting on March 14-15. T-notes were also undercut by the stronger-than-expected U.S. Feb ISM manufacturing index (+1.7 to a 2-1/2 year high of 57.7) and by the rally in the S&P 500 to a fresh all-time high, which curbs the safe-haven demand for T-notes.
The dollar index (DXY00 +0.30%) this morning is up +0.22 (+0.22%) at a 1-1/2 month high. EUR/USD (^EURUSD) is down -0.0026 (-0.25%). USD/JPY (^USDJPY) is up +0.56 (+0.49%) at a 2-week high. Wednesday’s closes: Dollar index +0.66 (+0.65%), EUR/USD -0.0029 (-0.27%), USD/JPY +0.96 (+0.85%). The dollar index on Wednesday climbed to a 1-1/2 month high and closed higher on the sharp increase in expectations for a March Fed rate hike and on the increase in the 10-year T-note yield to a 1-1/2 week high, which improves the dollar’s interest rate differentials.
Apr WTI crude oil prices (CLJ17 -0.87%) this morning are down -43 cents (-0.80%) and Apr gasoline (RBJ17 -1.41%) is -0.0287 (-1.71%). Wednesday’s closes: Apr crude -0.18 (-0.33%), Apr gasoline -0.0514 (-2.97%). Apr crude oil and gasoline on Wednesday closed lower on the rally in the dollar index to a 1-1/2 month high and the +0.3% increase in U.S. crude production in the week of Feb 24 to 9.032 million bpd, an 11-month high. Losses were contained after EIA crude inventories rose +1.501 million bbl, less than expectations of +3.0 million bbl.
|Thursday, Mar 2|
|US||0730 ET||Feb Challenger job cuts, Jan -38.8% y/y.|
|0830 ET||Weekly initial unemployment claims expected +1,000 to 245,000, previous +6,000 to 244,000. Weekly continuing claims expected unch at 2.060 million, previous -17,000 to 2.060 million.|
|0830 ET||USDA weekly Export Sales.|
|1100 ET||Treasury announces amount of 3-year T-notes (previous $ 24 billion), 10-year T-notes (previous $ 23 billion) and 30-year T-bonds (previous $ 15 billion) to be auctioned Mar 7-9.|
|1900 ET||Cleveland Fed President Loretta Mester (non-voter) speaks on leadership at the Athena Center for Leadership Studies at Barnard College in New York.|
|Friday, Mar 3|
|US||0945 ET||Revised Feb Markit services PMI expected +0.1 to 54.0, prelim-Feb -1.7 to 53.9. Revised Feb Markit composite PMI, prelim-Feb -1.5 to 54.3.|
|1000 ET||Feb ISM non-manufacturing PMI expected unch at 56.5, Jan -0.1 to 56.5.|
|1015 ET||Chicago Fed President Charles Evans (voter) and Richmond Fed President Jeffrey Lacker (non-voter) speak on a panel at the Chicago Booth Schools Monetary policy forum in New York.|
|1215 ET||Fed Governor Jerome Powell speaks on innovation, technology and the payment system at a roundtable hosted by Yale Law School on blockchain: the future of finance and capital markets.|
|1230 ET||Fed Vice Chair Stanley Fischer delivers a speech at the Chicago Booth Schools Monetary policy forum in New York.|
|1300 ET||Fed Chair Janet Yellen speaks on the economic outlook at an Executive Club of Chicago event.|
|L Brands Inc||LB US||7:30||February 2017 Sales and Revenue Call||2017|
|Waters Corp||WAT US||8:30||Investor Day||Y 2017|
|Kroger Co/The||KR US||10:00||Q4 2017 Earnings Release||Q4 2017||0.52|
|Kroger Co/The||KR US||10:00||Q4 2017 Earnings Call||Q4 2017|
|Cooper Cos Inc/The||COO US||16:15||Q1 2017 Earnings Release||Q1 2017||1.874|
|Costco Wholesale Corp||COST US||16:15||Q2 2017 Earnings Release||Q2 2017||1.357|
|Cooper Cos Inc/The||COO US||17:00||Q1 2017 Earnings Call||Q1 2017|
|Autodesk Inc||ADSK US||17:00||Q4 2017 Earnings Call||Q4 2017|
|Costco Wholesale Corp||COST US||17:00||Q2 2017 Earnings Call||Q2 2017|
|Autodesk Inc||ADSK US||Aft-mkt||Q4 2017 Earnings Release||Q4 2017||-0.338|
|Equifax Inc||EFX US||Investor Meeting||Y 2017|
|L Brands Inc||LB US||February 2017 Sales and Revenue Release||2017|
|AmerisourceBergen Corp||ABC US||Annual General Meeting|