Jun E-mini S&Ps (ESM17 unch) this morning are little changed, down -0.01%, as the markets focus on a meeting today in Washington D.C. between U.S. President Trump and German Chancellor Merkel. Stock losses were limited as a +0.47% increase in Apr WTI crude oil prices (CLJ17 +0.55%) lifted energy producing companies. European stocks are up +0.43% on strength in bank stocks and mining companies. May COMEX copper (HGK17 +0.15%) is up +0.30% after LME and Shanghai copper inventories declined. The markets will also pay attention to comments from the G-20 meeting that begins today in Baden-Baden, Germany. EUR/USD posted a 1-1/4 month high before falling back and European government bonds sold-off after hawkish comments from ECB Council member Nowotny who said the ECB can raise interest rates before its bond-purchase program has ended. Asian stocks settled mixed: Japan -0.35%, Hong Kong +0.09%, China -0.96%, Taiwan +0.72%, Australia +0.24%, Singapore +0.19%, South Korea +0.62%, India +0.21%.
The dollar index (DXY00 +0.04%) is down -0.14% at a 1-1/4 month low. EUR/USD (^EURUSD) is down -0.13%. USD/JPY (^USDJPY) is down -0.07%.
Jun 10-year T-note prices (ZNM17 -0.01%) are down -1.5 ticks.
ECB Council member Nowotny said he sees no deflation risks for Europe anymore and he told Handelsblatt in an interview that the U.S. model to finish bond purchases first before raising interest rates might not transfer well to Europe and that the ECB can raise interest rates before its bond-purchase program is phased out.
Key U.S. news today includes: (1) Feb industrial production (expected +0.2%, Jan -0.3% m/m), (2) prelim-March University of Michigan U.S. consumer sentiment index (expected +0.7 to 97.0, Feb -2.2 to 96.3), (3) Feb leading indicators (expected +0.5%, Jan +0.6%), (4) President Trump and German Chancellor Merkel meet at the White House, (5) G-20 2-day meeting begins of finance ministers and central banks in Baden-Baden, Germany.
Notable Russell 1000 earnings reports today include: Tiffany (1.39), Cintas (1.07).
U.S. IPO’s scheduled to price today: Valeritas Holdings (VLRXD),
Equity conferences: American College of Cardiology Meeting on Fri.
Macerich (MAC -0.42%) was downgraded to ‘Sell’ from ‘Neutral’ at Goldman Sach.
Adobe Systems (ADBE +0.20%) rose over 3% in after-hours trading after it reported Q1 adjusted EPS of 94 cents, higher than consensus of 87 cents. Adobe was then upgraded to ‘Buy’ from ‘Hold’ at Wunderlich Securities with an 18-month target price of $ 145.
Texas Roadhouse (TXRH +0.52%) was upgraded to ‘Buy’ from ‘Neutral’ at BTIG LLC with a 12-month target price of $ 50.
Booz Allen (BAH -0.56%) was initiated with a ‘Buy’ at Vertical Research Partners with a 12-month target price of $ 42.
T Rowe Price Group (TROW +0.26%) was downgraded to ‘Underweight’ from ‘Equalweight’ at Morgan Stanley who lowered its target price on the stock to $ 64 from $ 67.
Franklin Resources (BEN +2.14%) was downgraded to ‘Underweight’ from ‘Equalweight’ at Morgan Stanley who lowered its target price on the stock to $ 38 from $ 39.
Caleres (CAL +1.28%) sold-off nearly 8% in after-hours trading after it reported Q4 adjusted EPS of 3 cents, below consensus of 38 cents, and said it sees full-year adjusted EPS pf $ 2.10-$ 2.20, weaker than consensus of $ 2.35.
Rayonier (RYN +0.03%) slipped 3% in after-hours trading after it proposed an offering of 5 million shares of its common stock.
AveXis (AVXS -2.80%) rallied 12% in after-hours trading after it reported positive results from the Phase 1 trial of its AVXS-101 drug in treatment of spinal muscular atrophy.
Veritiv (VRTV -5.46%) dropped 5% in after-hours trading after it proposed a secondary offering of 1.8 million shares of common stock for holders.
MidwestOne Financial Group (MOFG -0.49%) fell 4% in after-hours trading after it announced an underwritten public offering of shares of its common stock by a selling shareholder, the John M. Morrison Revocable Trust #4, although no size was given.
Valeant Pharmaceuticals International (VRX +1.73%) climbed 4% in after-hours trading after ValueAct Holdings said it increased its stake in the company to 5.2% from 4.3%.
Exa Corp. (EXA +4.11%) sank over 15% in after-hours trading after it reported Q4 revenue of $ 19.5 million, below consensus of $ 20.2 million, and said it sees Q1 revenue in the range of $ 16 million-$ 17 million, less than consensus of $ 18.7 million.
Inventure Foods (SNAK +2.23%) slumped 16% in after-hours trading after it failed to file its 10-K, citing not yet completed Fresh Frozen Foods trademark and goodwill impairment tests.
Jun E-mini S&Ps (ESM17 unch) this morning are down -0.25 points (-0.01%). Thursday’s closes: S&P 500 -0.16%, Dow Jones -0.07%, Nasdaq -0.08%. The S&P 500 on Thursday closed lower on weakness in energy producer stocks after crude oil prices fell -0.23% and on the -6.2% decline in U.S. Feb building permits, a proxy for future construction, weaker than expectations of -1.9% to 1.268 million. On the positive side, the U.S. Mar Philadelphia Fed business outlook survey fell -10.5 to 32.8, stronger than expectations of -13.3 to 30.0.
Jun 10-year T-notes (ZNM17 -0.01%) this morning are down -1.5 ticks. Thursday’s closes: TYM7 -4.50, FVM7 -2.50. Jun 10-year T-notes on Thursday fell back from a 2-week high and closed lower on negative carry-over from a sell-off in German bunds on reduced safe-haven demand after European political risks eased when the anti-EU Freedom Party was trounced in elections Wednesday in the Netherlands. T-notes were also undercut by the stronger-than-expected U.S. economic data on Feb housing starts and the Mar Philadelphia Fed business outlook survey.
The dollar index (DXY00 +0.04%) this morning is down -0.14 (-0.14%) at a fresh 1-1/4 month low. EUR/USD (^EURUSD) is down -0.0014 (-0.13%) and USD/JPY (^USDJPY) is down -0.08 (-0.07%). Thursday’s closes: Dollar index -0.38 (-0.38%), EUR/USD +0.0032 (+0.30%), USD/JPY -0.07 (-0.06%). The dollar index on Thursday fell to a 1-1/4 month low and closed lower on negative carry-over from Wednesday’s FOMC meeting where the Fed did not tighten up its Fed dot projections as some market participants had expected. There was also strength in EUR/USD which rallied to a 5-week high on reduced European political risks after the anti-EU Freedom party was trounced by the pro-EU Liberal Party in Wednesday’s Dutch election.
Apr WTI crude oil prices (CLJ17 +0.55%) this morning are up +23 cents (+0.47%) and Apr gasoline (RBJ17 +0.42%) is up +0.0063 (+0.40%). Thursday’s closes: Apr crude -0.11 (-0.23%), Apr gasoline +0.0108 (+0.68%). Apr crude oil and gasoline on Thursday settled mixed. Crude oil prices were undercut by the statement from Iraqi Oil Minister Jabbar Al-Luaibi that Iraq plans to increase its crude output to 5 million bpd by the end of this year and by negative carry-over from Wednesday’s EIA data that showed a +0.2% increase in U.S. crude production in the week of Mar 10 to 9.109 million bpd, a 13-month high. The main bullish factor was the fall in the dollar index to a 1-1/4 month low.
|Friday, Mar 17|
|US||0915 ET||Feb industrial production expected +0.2%, Jan -0.3% m/m. Feb manufacturing production expected +0.5%, Jan +0.2% m/m. Feb capacity utilization expected +0.2 to 75.5%, Jan -0.3 to 75.3%.|
|1000 ET||Prelim-March University of Michigan U.S. consumer sentiment index expected +0.7 to 97.0, Feb -2.2 to 96.3.|
|1000 ET||Feb leading indicators expected +0.5%, Jan +0.6%.|
|n/a||President Trump and German Chancellor Merkel meet at the White House.|
|n/a||G-20 2-day meeting begins of finance ministers and central banks in Baden-Baden, Germany.|
|Monday, Mar 20|
|US||0830 ET||Feb Chicago Fed national activity index, Jan -0.23 to -0.05.|
|1100 ET||USDA weekly grain export inspections.|
|1310 ET||Chicago Fed President Charles Evans (voter) speaks about current economic conditions and monetary policy at a National Association for Business Economics (NABE) luncheon in New York.|
|Tiffany & Co||TIF US||06:40||Q4 2017 Earnings Release||Q4 17||1.385|
|Tiffany & Co||TIF US||08:30||Q4 2017 Earnings Call||Q4 17|
|HEICO Corp||HEI US||Annual General Meeting|
|MDU Resources Group Inc||MDU US||09:00||Investor and Analyst Seminar|
|Xcel Energy Inc||XEL US||Barclays Europe Meeting|
|Cintas Corp||CTAS US||Q3 2017 Earnings Release||Q3 17||1.068|