Jun E-mini S&Ps (ESM17 -0.01%) this morning are up +0.05% and European stocks are up +0.21% as a rally in crude oil pushes energy producing stocks higher. May WTI crude oil (CLK17 +0.82%) is up +0.69% on global supply concerns after Libya said its crude output dropped to 560,000 bpd from 700,000 bpd when it shut down its pipeline from the Sharara field, its biggest pipeline. Asian stocks settled mostly higher: Japan +1.14%, Hong Kong +0.63%, China -0.43%, Taiwan unchanged, Australia +1.30%, Singapore +0.99%, South Korea +0.32%, India +0.59%. Japanese stocks found support as exporter companies rallied after USD/JPY stabilized above Monday’s 4-1/4 month low.
The dollar index (DXY00 +0.11%) is up +0.10%. EUR/USD (^EURUSD) is down -0.11% after ECB Executive Board member Praet said that it’s too soon to start discussing when to withdraw stimulus. USD/JPY (^USDJPY) is down -0.11%.
Jun 10-year T-note prices (ZNM17 +0.01%) are up +1 tick.
ECB Executive Board member Praet said that it’s too soon to start discussing when to withdraw stimulus, and that the exit will happen when Eurozone inflation is sustainable. He said the ECB’s current guidance that it won’t raise interest rates until well after the end of QE, similar to the strategy used by the Fed, has a “strong logic.”
Key U.S. news today includes: (1) wholesale inventories (expected +0.2%, Jan -0.2% m/m), (2) Jan S&P CoreLogic composite-20 home price index (expected +0.7% m/m and +5.6% y/y, Dec +0.93% m/m and +5.58% y/y), (3) Mar Conference Board U.S. consumer confidence index (expected -0.8 to 114.0, Feb +3.2 to 114.8), (4) Mar Richmond Fed manufacturing index (expected -2 to 15, Feb +5 to 17), (5) Kansas City Fed President Esther George (non-voter) gives keynote speech at an event hosted by the Kansas City Fed titled “Banking and the Economy: A Forum for Women in Banking,” (6) Fed Chair Janet Yellen speaks at the National Community Reinvestment Coalition Annual Conference on “Addressing Workforce Development Challenges in Low-Income Communities,” (7) Treasury auctions $ 34 billion of 5-year T-notes, (8) Dallas Fed President Robert Kaplan (voter) holds a moderated Q&A session with the Dallas Committee on Foreign Relations, and (9) Fed Governor Jerome Powell speaks at the West Virginia University College of Business and Economics on “America’s Central Bank: The History and Structure of the Federal Reserve.”
Notable Russell 1000 earnings reports today include: Darden Restaurants (consensus $ 1.27), Carnival (0.35), McCormick (0.74), FactSet Research (1.80).
U.S. IPO’s scheduled to price today: none.
Equity conferences: Scotia Howard Weil Energy Conference on Mon-Tue, Barclays Materials ROC Stars Conference on Tue, Jefferies Animal Health Summit on Thu.
Darden Restaurants (DRI -1.47%) rallied nearly 4% in after-hours trading after it reported Q3 adjusted EPS continuing operations of $ 1.32, above consensus of $ 1.27.
Red Hat (RHT -0.92%) climbed nearly 5% in after-hours trading after it reported Q4 revenue of $ 629 million, higher than consensus of $ 618.7 million.
SYNNEX (SNX +1.18%) rose 2% in after-hours trading after it reported Q1 revenue of $ 3.52 billion, above consensus of $ 3.48 billion.
Golden Ocean Group Ltd (GOGL -2.62%) was upgraded to ‘Overweight’ from ‘Underweight’ at Morgan Stanley with a price target of $ 10.
Power Solutions International (PSIX +1.11%) soared over 40% in after-hours trading when it said China’s Weichai Power’s Weichai American unit will invest $ 60 million in the company through a combination of newly issued common shares and preferred share that will lift its stake in the company to 40.7%, which could climb to 51% if warrants are exercised.
TESARO (TSRO -2.04%) jumped nearly 6% in after-hours trading after its Niraparib treatment for Ovarian Cancer was approved by the U.S. FDA.
STORE Capital (STOR -1.05%) slipped 3% in after-hours trading after it announced that it had commenced an underwritten public offering of 7.6 million shares of its common stock.
Deck Outdoor Corp. (DECK +0.41%) gained nearly 3% in after-hours trading after holder Red Mountain, the tenth largest shareholder, said the company should explore a sale.
Editas Medicine (EDIT +7.42%) rose over 2% in after-hours trading after it was initiated a new ‘Buy’ at Chardan Capital Markets with a price target of $ 65.
Selecta Biosciences (SELB -1.00%) surged 16% in after-hours trading after it reported Q4 revenue of $ 2.9 million versus $ 2.1 million y/y and said it sees sufficient cash to fund operations into mid-2018.
Hi-Crush Partners LP (HCLP +0.33%) rose 2% in after-hours trading after it was initiated a new ‘Buy’ at Guggenheim with a price target of $ 31.
Evolent Health (EVH +1.92%) dropped nearly 5% in after-hours trading after it launched a secondary public offering of 7.5 million Class A common shares.
Fairmount Santrol Holdings (FMSA -1.17%) climbed 3% in after-hours trading after it was initiated a ‘Buy’ at Guggenheim with a price target of $ 12.
Jun E-mini S&Ps (ESM17 -0.01%) this morning are up +1.25 points (+0.05%). Monday’s closes: S&P 500 -0.10%, Dow Jones -0.22%, Nasdaq +0.19%. The S&P 500 on Monday tumbled to a 1-1/2 month low and closed lower on long-liquidation pressure after last Friday’s failure of the House Republican’s health care plan, which raised questions about the rest of the Republican agenda. There was also weakness in energy-producing stocks as crude oil prices moved lower. Hospital stocks rallied after legislators on Friday failed to repeal the Affordable Care Act.
Jun 10-year T-notes (ZNM17 +0.01%) this morning are up +1 tick. Monday’s closes: TYM7 +4.50, FVM7 +2.75. Jun 10-year T-notes on Monday rallied to a 1-month high and closed higher on speculation that economic growth may be sub-par if the Trump administration is unable to pass its pro-growth economic policies. T-notes also saw some safe-haven demand on the early slump in stocks.
The dollar index (DXY00 +0.11%) this morning is up +0.103 (+0.10%). EUR/USD (^EURUSD) is down -0.0012 (-0.11%) and USD/JPY (^USDJPY) is down -0.12 (-0.11%). Monday’s closes: Dollar index -0.461 (-0.46%), EUR/USD +0.0066 (+0.61%), USD/JPY -0.68 (-0.61%). The dollar index on Monday sank to a 4-1/2 month low and closed lower on technical selling on concern that the Trump administration may have difficulty enacting its pro-growth economic policies after Friday’s failure to pass the health-care bill. There was also strength in EUR/USD which rallied to a 4-1/2 month high after the German Mar IFO business climate index rose +1.2 to a 5-1/2 year high of 112.3 and after after German Chancellor Merkel’s party did well in state elections on Sunday. The yen was boosted by safe-haven demand with USD/JPY falling to a 4-1/4 month low.
May WTI crude oil (CLK17 +0.82%) prices this morning are up +33 cents (+0.69%) and May gasoline (RBK17 +0.68%) is +0.0085 (+0.52%). Monday’s closes: May crude -0.24 (-0.50%), May gasoline +0.0109 (+0.67%). May crude oil and gasoline on Monday settled mixed. Crude oil prices were undercut by comments from Russian Energy Minister Novak who said Russia needs more time to assess the market before it can agree to extend its crude production cuts. There was also negative carry-over from Friday’s data from Baker Hughes that U.S. active oil rigs rose +21 in the week ended Mar 24 to 652, the most in 1-1/2 years. Crude oil prices were supported by the plunge in the dollar index to a 4-1/2 month low, and by the increase in the crack spread to a 4-3/4 month high, which may boost refinery demand for crude to refine into gasoline.
|Tuesday, Mar 28|
|US||0830 ET||Feb wholesale inventories expected +0.2%, Jan -0.2% m/m. Feb retail inventories, Jan +0.8% m/m.|
|0900 ET||Jan S&P CoreLogic composite-20 home price index expected +0.7% m/m and +5.6% y/y, Dec +0.93% m/m and +5.58% y/y.|
|1000 ET||Mar Conference Board U.S. consumer confidence index expected -0.8 to 114.0, Feb +3.2 to 114.8.|
|1000 ET||Mar Richmond Fed manufacturing index expected -2 to 15, Feb +5 to 17.|
|1245 ET||Kansas City Fed President Esther George (non-voter) gives keynote speech at an event hosted by the Kansas City Fed titled Banking and the Economy: A Forum for Women in Banking.|
|1250 ET||Fed Chair Janet Yellen speaks at the National Community Reinvestment Coalition Annual Conference on Addressing Workforce Development Challenges in Low-Income Communities.|
|1300 ET||Treasury auctions $ 34 billion of 5-year T-notes.|
|1300 ET||Dallas Fed President Robert Kaplan (voter) holds a moderated Q&A session with the Dallas Committee on Foreign Relations.|
|1630 ET||Fed Governor Jerome Powell speaks at the West Virginia University College of Business and Economics on Americas Central Bank: The History and Structure of the Federal Reserve.|
|Wednesday, Mar 29|
|US||0700 ET||Weekly MBA mortgage applications, previous -2.7% with purchase sub-index -2.1% and refi sub-index -3.3%.|
|0920 ET||Chicago Fed President Charles Evans (voter) speaks on current economic conditions and monetary policy at the DZ Bank-OMFIF International Capital Markets Conference in Frankfurt.|
|1000 ET||Feb pending home sales expected +2.5% m/m, Jan -2.8% m/m and +2.7% y/y.|
|1030 ET||EIA Weekly Petroleum Status Report.|
|1130 ET||Treasury auctions $ 13 billion 2-year floating-rate notes.|
|1130 ET||Boston Fed President Eric Rosengren (non-voter) speaks on the economic outlook to the Economic Club of Boston.|
|1300 ET||Treasury auctions $ 28 billion of 7-year T-notes.|
|1315 ET||San Francisco Fed President John Williams speaks to the Forecasters Club of New York on From Sustained Recovery to Sustainable Growth: What a Difference Four Years Makes.|
|Darden Restaurants Inc||DRI US||Bef-mkt||Q3 2017 Earnings Release||Q3 17||1.272|
|Carnival Corp||CCL US||Bef-mkt||Q1 2017 Earnings Release||Q1 17||0.347|
|McCormick & Co Inc/MD||MKC US||Bef-mkt||Q1 2017 Earnings Release||Q1 17||0.739|
|FactSet Research Systems Inc||FDS US||07:00||Q2 2017 Earnings Release||Q2 17||1.797|
|McCormick & Co Inc/MD||MKC US||08:00||Q1 2017 Earnings Call||Q1 17|
|Darden Restaurants Inc||DRI US||08:30||Q3 2017 Earnings Call||Q3 17|
|Carnival Corp||CCL US||10:00||Q1 2017 Earnings Call||Q1 17|
|FactSet Research Systems Inc||FDS US||11:00||Q2 2017 Earnings Call||Q2 17|
|Cypress Semiconductor Corp||CY US||12:00||Analyst Day|
|Intel Corp||INTC US||12:00||Technology and Manufacturing Day|
|VCA Inc||WOOF US||Shareholders Meeting – M&A Vote|