US : Pre Market News – 31 Mar 2017

PREMARKET WORLD NEWS

Jun E-mini S&Ps (ESM17 -0.22%) this morning are down -0.25% on concern over the future of U.S. trade policies after Commerce Secretary Ross said President Trump will order a comprehensive study to identify every form of “trade abuse” that contributes to U.S. deficits with foreign countries. European stocks are down -0.29% on deflation concerns after Eurozone Mar core CPI rose +0.7% y/y, the slowest pace of increase in 11-months. Losses in European stocks were limited after the Mar German unemployment rate unexpectedly fell -0.1 to 5.8%, the lowest since the reunification of Germany in 1990. Asian stocks settled mostly lower: Japan -0.81%, Hong Kong -0.78%, China +0.38%, Taiwan -0.37%, Australia -0.53%, Singapore +0.06%, South Korea -0.36%, India -0.09%. China’s Shanghai Stock Index closed higher on signs of strength in the Chinese economy after the China Mar manufacturing PMI rose +.2 to 51.8, the fastest pace of expansion in 4-3/4 years. Japan’s Nikkei Stock Index fell to a 1-1/2 month low as consumer staples companies sold-off after data showed Japan Feb overall household spending fell a more-than-expected -3.8% y/y, the biggest decline in 6-months.

The dollar index (DXY00 +0.10%) is up +0.15% at a 2-week high. EUR/USD (^EURUSD) is up +0.08%. USD/JPY (^USDJPY) is down -0.06%.

Jun 10-year T-note prices (ZNM17 +0.01%) are up +1 tick.

The Eurozone Mar CPI estimate rise +1.5% y/y, weaker than expectations of +1.8% y/y. Mar core CPI rose +0.7% y/y, weaker than expectations of +0.8% y/y and the slowest pace of increase in 11-months.

ECB Executive Board member Coeure said that recent Eurozone economic data have pointed to robust growth, “but at the same time, measures of underlying inflation remain subdued.”

German Mar unemployment fell -30,000 to 2.6 million, stronger than expectations of -10,000. The Mar unemployment rate unexpectedly fell -0.1 to 5.8%, stronger than expectations of no change at 5.09% and a record low since the reunification of Germany in 1990.

The China Mar manufacturing PMI rose +0.2 to 51.8, stronger than expectations of +0.1 to 51.7 and the fastest pace of expansion in 4-3/4 years.

Japan Feb industrial production rose +2.0% m/m, stronger than expectations of +1.2% m/m and the biggest increase in 8-months.

The Japan Feb jobless rate unexpectedly fell -0.2 to 2.8%, stronger than expectations of no change at 3.0% and the lowest in 23-years.

Japan Feb overall household spending fell -3.8% y/y, weaker than expectations of -1.7% y/y and the biggest decline in 6-months.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Feb personal spending (expected +0.2%, Jan +0.2%) and Feb personal income (expected +0.4%, Jan +0.4%), (2) Feb PCE deflator (expected +0.1% m/m and +2.1% y/y, Jan +0.4% m/m and +1.9% y/y) and Feb core PCE deflator (expected +0.2% m/m and +1.7% y/y, Jan +0.3% m/m and +1.7% y/y), (3) Mar Chicago PMI (expected -0.5 to 56.9, Feb +7.1 to 57.4), (4) final-Mar University of Michigan U.S. consumer sentiment index (expected unch at 97.6, prelim-Mar +1.3 to 97.6), (5) Minneapolis Fed President Neel Kashkari participates in a Q&A at the Annual Banking Law Institute conference in Minneapolis, (6) USDA Q1 Quarterly Grain Stocks and prospective planting data.

Notable Russell 1000 earnings reports today include: None.

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

Equity conferences: None:

 

PREMARKET U.S. STOCKS

Corning (GLW +0.29%) was downgraded to ‘Neutral’ from ‘Buy’ at Citigroup on valuation.

Boeing (BA +0.20%) was awarded a $ 2.2 billion contact for 17 P-8A Poseidon jets.

The U.S. Environmental Protection Agency announced that Sherwin-Williams (SHW +0.02%) will pay $ 14 million to clean up a paint dump in Gibbsboro, New Jersey.

Intel (INTC +0.51%) was rated new ‘Outperform’ at Macquarie Research with a 12-month target price of $ 40.

CME Group (CME +0.30%) was upgraded to ‘Outperform’ at RBC Capital Markets with a 12-month target price of $ 134.

Amazon.com (AMZN +0.23%) was initiated with a ‘Buy’ at Loop Capital Markets with a 12-month target price of $ 1,100.

Broadcom Ltd (AVGO -0.57%) was rated new ‘Outperform’ at Macquarie Research with a 12-month target price of $ 265.

MacroGenics (MGNX -6.48%) gained nearly 2% in after-hours trading after it was rated a new ‘Outperform’ at Raymond James with a price target of $ 26.

Exelixis (EXEL +0.33%) was initiated with a ‘Buy’ at Needham & Co with a 12-month target price of $ 28.

Akari Therapeutics (AKTX +4.96%) rallied 7% in after-hours trading after the U.S. FDA granted Fast Track designation for Coversin to treat the rare blood disorder, paroxysmal noctutnal hemoglobinuria.

CytoSorbents (CTSO -0.91%) dropped 8% in after-hours trading after it announced that it had commenced an underwritten public offering of its common stock, although no size was given.

Orexigen Therapeutics (OREX -2.51%) lost 1% in after-hours trading after it filed a prospectus for $ 20 million of its common stock.

BioTime (BTX +0.30%) climbed nearly 5% in after-hours trading after it was rated a new ‘Outperform’ at Raymond James with a price target of $ 6.

MARKET COMMENTS

Jun E-mini S&Ps (ESM17 -0.22%) this morning are down -6.00 points (-0.25%). Thursday’s closes: S&P 500 +0.29%, Dow Jones +0.33%, Nasdaq +0.17%. The S&P 500 on Thursday climbed to a 1-week high and settled higher on the upward revision to U.S. Q4 GDP to +2.1% from +1.9%, which featured a large upward revision in Q4 personal consumption to +3.5% from +3.0%. There was also strength in energy producing stocks after crude oil prices jumped +1.7% to a 3-week high.

Jun 10-year T-notes (ZNM17 +0.01%) this morning are up +1 tick. Thursday’s closes: TYM7 -7.5, FVM7 -4.00. Jun 10-year T-notes on Thursday closed lower on the stronger than expected U.S Q4 GDP of +2.1% and the upward revision in Q4 personal consumption to +3.5% from +3.0%.

The dollar index (DXY00 +0.10%) this morning is up +0.15 (+0.15%) at a 1-week high. EUR/USD (^EURUSD) is up +0.0009 (+0.08%) and USD/JPY (^USDJPY) is down -0.07 (-0.06%). Thursday’s closes: Dollar index +0.412 (+0.41%), EUR/USD -0.0092 (-0.85%), USD/JPY +0.88 (+0.79%). The dollar index on Thursday rose to a 1-week high and closed higher on the larger-than-expected upward revision to U.S. Q4 GDP (+2.1% vs expectations of +2.0%) and on weakness in EUR/USD which fell to a 1-week low after German Mar CPI rose +1.5% y/y, weaker than expectations of +1.9% y/y, which was dovish for ECB policy.

May WTI crude oil prices (CLK17 -0.40%) this morning are down -28 cents (-0.56%) and May gasoline (RBK17 -0.36%) is -0.0094 (-0.56%). Thursday’s closes: May crude +0.84 (+1.70%), May gasoline +0.0103 (+0.62%). May crude oil and gasoline on Thursday rose to 3-week highs and settled higher on signs that OPEC may extend its production cuts past June after Kuwaiti Oil Minister Issam Almarzooq said that Kuwait and other countries support extending OPEC crude production cuts. Crude oil was also boosted by the action by the Zawiya and Mellitah oil terminals in Libya to declare force majeure on oil shipments due to the closure of the pipeline that leads to the terminals.

GLOBAL EVENT CALENDAR 03/31/2017
Friday, Mar 31
US0830 ETFeb personal spending expected +0.2%, Jan +0.2%. Feb personal income expected +0.4%, Jan +0.4%.
0830 ETFeb PCE deflator expected +0.1% m/m and +2.1% y/y, Jan +0.4% m/m and +1.9% y/y. Feb core PCE deflator expected +0.2% m/m and +1.7% y/y, Jan +0.3% m/m and +1.7% y/y.
0945 ETMar Chicago PMI expected -0.5 to 56.9, Feb +7.1 to 57.4.
1000 ETFinal-Mar University of Michigan U.S. consumer sentiment index expected unch at 97.6, prelim-Mar +1.3 to 97.6.
1000 ETMinneapolis Fed President Neel Kashkari participates in a Q&A at the Annual Banking Law Institute conference in Minneapolis.
1200 ETUSDA Q1 Quarterly Grain Stocks and prospective planting data.
Monday, April 3
US0945 ETRevised Mar Markit manufacturing PMI, prelim-Mar -0.8 to 53.4.
1000 ETMar ISM manufacturing PMI expected -0.7 to 57.0, Feb +1.7 to 57.7. Mar ISM new orders, Feb +4.7 to 65.1. Mar ISM employment, Feb -1.9 to 54.2. Mar ISM prices paid, Feb -1.0 to 68.0.
1000 ETFeb construction spending expected +1.0% m/m, Jan -1.0% m/m.
1030 ETNew York Fed President William Dudley (voter) delivers remarks and takes questions at a press briefing on trends in U.S. household debt.
1100 ETUSDA weekly grain export inspections.
1500 ETPhiladelphia Fed President Patrick Harker (voter) speaks on the topic of fintech in a lecture at the University of Pennsylvania School of Engineering and Applied Sciences Technology, Business and Government.
1700 ETRichmond Fed President Jeffrey Lacker (non-voter) speaks on From Real Bills to Too Big to Fail at Washington & Lee University.
n/aMar total vehicle sales expected 17.30 million, Feb 17.47 million. Mar domestic vehicle sales, Feb 13.65 million.
U.S. STOCK CALENDAR 03/31/2017
CompanyTickerTimeEvent DescriptionPeriodEstimate
DXP Enterprises Inc/TXDXPE US07:00Q4 2016 Earnings ReleaseQ4 160.007
DXP Enterprises Inc/TXDXPE US10:00Q4 2016 Earnings CallQ4 16
Roadrunner Transportation Systems IncRRTS USAft-mktQ4 2016 Earnings ReleaseQ4 160.182

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