US : Pre Market News – 13 Mar 2017

PREMARKET WORLD NEWS

Jun E-mini S&Ps (ESM17 -0.03%) this morning are down -0.08% and European stocks are down -0.09% as weakness in crude oil prices undercuts energy producing stocks. Apr WTI crude oil (CLJ17 -0.39%) is down -0.80% at a fresh 3-1/2 month low on negative carryover from Friday’s data from Baker Hughes that showed U.S. active oil rigs rose to a 17-1/2 month high, offsetting efforts by OPEC to reduce a global oil output. German bunds erased losses and moved higher and EUR/USD retreated from a 1-month high after the Belgian Central Bank Governor said the ECB’s latest policy statement policy “does not in itself signal a coming change in the monetary policy stance.” Asian stocks settled mostly higher: Japan +0.15%, Hong Kong +1.11%, China +0.76%, Taiwan +0.72%, Australia -0.32%, Singapore +0.44%, South Korea +1.15%, India closed for holiday. China’s Shanghai Composite recovered from a 1-month ow and moved higher on signs of reduced U.S.-China trade tensions after Steve Schwarzman, one of the Trump administration’s top economic advisors said in a CNN interview that President Trump will likely moderate his criticisms of China, including his campaign claim that the country manipulates its currency.

The dollar index (DXY00 +0.01%) is unchanged. EUR/USD (^EURUSD) is down -0.02%. USD/JPY (^USDJPY) is down -0.20%.

Jun 10-year T-note prices (ZNM17 +0.08%) are up +4 ticks.

Belgian Central Bank Governor Smelts said in a WSJ interview that the ECB’s policy statement last Thursday “does not in itself signal a coming change in the monetary policy stance.”

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) USDA weekly grain export inspections.

Notable Russell 1000 earnings reports today include: Extraction Oil & Gas (consensus -$ 0.17), AquaBounty Technology.

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

Equity conferences: JP Morgan Aviation, Transportation & Industrials Conference on Mon-Wed, Bank of America Merrill Lynch Consumer and Retail Tech Conference on Tue-Wed, Barclays Emerging Payments Forum on Tue-Wed, Barclays Global Health Care Conference on Tue-Thu, Gabelli & Co. Waste & Environmental Services Symposium on Thu, American College of Cardiology Meeting on Fri.

PREMARKET U.S. STOCKS

American International Group (AIG -0.21%) was downgraded to ‘Sell’ from ‘Hold’ at Deutsche Bank with a price target of $ 57.

Mobileye (MBLY +0.83%) surged 30% in pre-market trading after Intel was said to agree to buy the company for $ 63.54 a share or $ 15 billion.

Boeing (BA -1.04%) was downgraded to ‘Equal-Weight’ from ‘Overweight’ at Morgan Stanley.

Marvell Technology Group Ltd (MRVL +3.54%) was upgraded to ‘Buy’ from ‘Hold’ at Needham.

Gamestop (GME +0.72%) was downgraded to ‘Market Perform’ from ‘Outperform’ at Telsey Advisory Group.

Finisar (FNSR -22.69%) was upgraded to ‘Strong Buy’ from ‘Outperform’ at Raymond James with a 12-month target price of $ 40.

Rockwell Collins (COL +0.20%) was upgraded to ‘Overweight’ from ‘Equal-Weight’ at Morgan Stanley with a price target of $ 121.

Incyte (INCY +8.13%) filed a 34 million-share shelf on behalf of holder Baker Brothers Advisors.

Alexandria Real Estate Equities (ARE -4.30%) may move to the upside this morning when it was announced after the close Friday that it will be added to the S&P 500 before the open on Monday, March 20.

Raymond James Financial (RJF +0.10%) may move to the upside this morning when it was announced after the close Friday that it will be added to the S&P 500 before the open on Monday, March 20.

Advanced Micro Devices (AMD +4.35%) gained over 1% in after-hours trading when it was announced that it will be added to the S&P 500 before the open on Monday, March 20.

First Solar (FSLR -0.25%) fell over 1% in after-hours trading when it was announced that it will be removed from the S&P 500 and put into the S&P MidCap 400 before the open on Monday, March 20.

Kronos Worldwide (KRO -0.21%) jumped 9% in after-hours trading after it reported Q4 EPS of 20 cents, well above consensus of 6 cents.

MARKET COMMENTS

Jun E-mini S&Ps (ESM17 -0.03%) this morning are down -2.00 points (-0.08%). Friday’s closes: S&P 500 +0.33%, Dow Jones +0.21%, Nasdaq +0.41%. The S&P 500 on Friday closed higher on the +235,000 increase in U.S. Feb non-farm payrolls, stronger than expectations of +200,000 and the mildly higher close in June T-note prices. Stock prices were undercut by a continued decline in energy producers as the price of crude oil fell by another -1.60% to a 3-1/2 month low.

Jun 10-year T-notes (ZNM17 +0.08%) this morning are up +4 ticks. Friday’s closes: TYM7 +6.00, FVM7 +3.25. Jun 10-year T-notes on Friday recovered from a 2-1/2 month low and closed higher on some relief after the U.S. Feb average hourly earnings report rose by only +0.2% m/m, slightly weaker than expectations of +0.3% m/m. T-notes were also supported by the slump in crude oil prices to a 3-1/2 month low, which reduced inflation expectations. T-notes initially dropped to a 2-1/2 month low after U.S. Feb non-farm payrolls rose +235,000, stronger than expectations of +200,000.

The dollar index (DXY00 +0.01%) this morning is unchanged. EUR/USD (^EURUSD) is down -0.0002 (-0.02%). USD/JPY (^USDJPY) is -0.23 (-0.20%). Friday’s closes: Dollar index -0.60 (-0.59%), EUR/USD +0.0096 (+0.91%), USD/JPY -0.16 (-0.14%). The dollar index on Friday closed lower on strength in EUR/USD which rallied to a 3-week high after a report that the ECB at Thursday’s policy meeting discussed whether interest rates could rise before their bond-buying program comes to an end. The dollar was also undercut by slightly lower T-note yields, which undercut the dollar’s interest rate differentials.

Apr WTI crude oil prices (CLJ17 -0.39%) this morning are down -39 cents (-0.80%) at a fresh 3-1/2 month low and Apr gasoline (RBJ17 -0.80%) is -0.0192 (-1.20%). Friday’s closes: Apr crude -0.79 (-1.60%), Apr gasoline -0.0242 (-1.49%). Apr crude oil and gasoline on Friday closed lower with Apr crude at a 3-1/2 month low. Crude oil continued to be hurt by technical selling and negative carry-over from Wednesday’s EIA data that showed a +8.21 million bbl increase in EIA crude inventories to a record 528.39 million bbl (well above expectations for a +2.0 million bbl gain) and a +0.6% increase in U.S. crude production to a 1-year high of 9.088 million bpd. Crude oil prices were also hurt by Friday’s news from Baker Hughes that U.S. active oil rigs in the week ended Mar 10 rose 8 to a 17-1/2 month high of 617.

 

GLOBAL EVENT CALENDAR 03/13/2017
Monday, Mar 13
US1100 ETUSDA weekly grain export inspections.
Tuesday, Mar 14
US0830 ETFeb PPI final demand expected +0.1% m/m and +1.9% y/y, Jan +0.6% m/m and +1.6% y/y. Feb PPI ex food & energy expected +0.2% m/m and +1.5% y/y, Jan +0.4% m/m and +1.2% y/y.
n/aPresident Trump and German Chancellor Merkel meet at the White House.
1200 ETFOMC begins 2-day policy meeting.
U.S. STOCK CALENDAR 03/13/2017
CompanyTickerTimeEvent DescriptionPeriodEstimate
Adient PLCADNT USAnnual General Meeting
Cooper Cos Inc/TheCOO USAnnual General Meeting
AquaBounty Technologies IncAQB USY 2016 Earnings ReleaseY 16
Extraction Oil & Gas IncXOG USAft-mktQ4 2016 Earnings ReleaseQ4 16-0.172

You may also like...

Rules of Discussion on US : Pre Market News – 13 Mar 2017

1. This forum is for discussion of financial markets. Please respect others view even if they are contrary to you.
2. Member's comments should lead to value addition in forum discussion.
3. If anyone is found making repetitive Explicit/Abusive/Racial comments, his account shall be banned and old posts will be deleted.
4. Providing Advice/Recommendations/Tips is fine but it should be free. Members cannot ask to be paid for it. Paid Advice is stricly prohibited
5. Spam links are not allowed. Too much promotion or using Contact info in ID will lead to account ban.
IMP : Memebrs are requeuested to flag any violations to keep Forum Clean