US : Pre Market News – 02 Mar 2017

PREMARKET WORLD NEWS

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.

U.S. STOCK PREVIEW

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.

PREMARKET U.S. STOCKS

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.

MARKET COMMENTS

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.

GLOBAL EVENT CALENDAR 03/02/2017
Thursday, Mar 2
US0730 ETFeb Challenger job cuts, Jan -38.8% y/y.
0830 ETWeekly 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 ETUSDA weekly Export Sales.
1100 ETTreasury 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 ETCleveland 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
US0945 ETRevised 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 ETFeb ISM non-manufacturing PMI expected unch at 56.5, Jan -0.1 to 56.5.
1015 ETChicago 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 ETFed 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 ETFed Vice Chair Stanley Fischer delivers a speech at the Chicago Booth Schools Monetary policy forum in New York.
1300 ETFed Chair Janet Yellen speaks on the economic outlook at an Executive Club of Chicago event.
U.S. STOCK CALENDAR 03/02/2017
CompanyTickerTimeEvent DescriptionPeriodEstimate
L Brands IncLB US7:30February 2017 Sales and Revenue Call2017
Waters CorpWAT US8:30Investor DayY 2017
Kroger Co/TheKR US10:00Q4 2017 Earnings ReleaseQ4 20170.52
Kroger Co/TheKR US10:00Q4 2017 Earnings CallQ4 2017
Cooper Cos Inc/TheCOO US16:15Q1 2017 Earnings ReleaseQ1 20171.874
Costco Wholesale CorpCOST US16:15Q2 2017 Earnings ReleaseQ2 20171.357
Cooper Cos Inc/TheCOO US17:00Q1 2017 Earnings CallQ1 2017
Autodesk IncADSK US17:00Q4 2017 Earnings CallQ4 2017
Costco Wholesale CorpCOST US17:00Q2 2017 Earnings CallQ2 2017
Autodesk IncADSK USAft-mktQ4 2017 Earnings ReleaseQ4 2017-0.338
Equifax IncEFX USInvestor MeetingY 2017
L Brands IncLB USFebruary 2017 Sales and Revenue Release2017
AmerisourceBergen CorpABC USAnnual General Meeting

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