Barchart.com - Thu Mar 29, 6:37AM CDT
Jun E-mini S&Ps (ESM18 +0.34%) this morning are up +0.37% and European stocks are up +0.66% as technology stocks recover after two days of losses. Also, European automakers are higher on M&A activity after Renault SA and Nissan Motor were said to be in merger talks. Strength in Germany's labor market is another positive for European equities after the German Mar unemployment rate fell to a record low 5.3%. Trading activity was subdued ahead of the long holiday weekend with the U.S. and Europe closed Friday and Europe also closed Monday for the Easter holiday. Asian stocks settled mostly higher: Japan +0.61%, Hong Kong +0.24%, China +1.22%, Taiwan -0.18%, Australia -0.52%, Singapore +1.34%, South Korea +0.64%, India closed for holiday. China's Shanghai Composite recovered from losses in the last hour of trade and closed higher on reports of buying from state sponsored funds. Wednesday's rally in USD/JPY to a 2-week high boosted Japanese exporter stocks as the Nikkei Stock Index closed higher.
The dollar index (DXY00 -0.11%) is down -0.08%. EUR/USD (^EURUSD+0.19%) is up +0.10%. USD/JPY (^USDJPY-0.32%) is down -0.29%.
Jun 10-year T-note prices (ZNM18 +0-015) are up +2.5 ticks.
Philadelphia Fed President Harker told the WSJ he raised his Fed rate hike estimate for this year to a total of three 25 bp rate increases, up from two rate hikes he projected in Jan, saying "it's more the firming of inflation that has moved me from two to three" projected rate increases this year.
The German Mar unemployment change fell -19,000 to 2.373 million, better than expectations of -15,000. The Mar unemployment rate fell -0.1 to a record low of 5.3%, right on expectations.
UK Mar GfK consumer confidence rose +3 to a 10-month high of -7, stronger than expectations of no change at -10.
Key U.S. news today includes: (1) weekly initial unemployment claims (expected +1,000 to 230,000, previous +3,000 to 229,000) and continuing claims (expected +37,000 to 1.865 million, previous -57,000 to 1.828 million), (2) Feb personal spending (expected +0.1%, Jan +0.2%) and Feb personal income (expected +0.4%, Jan +0.4%), (3) Feb PCE deflator (expected +0.2% m/m and +1.7% y/y, Jan +0.4% m/m and +1.7% y/y) and Feb core PCE deflator (expected +0.2% m/m and +1.6% y/y, Jan +0.3% m/m and +1.5% y/y), (4) USDA weekly Export Sales, (5) Mar Chicago PMI (expected +0.1 to 62.0, Feb -3.8 to 61.9), (6) final-March University of Michigan U.S. consumer sentiment index (expected unch at 102.0, prelim-Mar +2.3 to 102.0), (7) USDA planting intentions and USDA Q1 quarterly grain stocks, (8) Philadelphia Fed President Patrick Harker (non-voter) speaks on the economic outlook at an NABE luncheon, (9) USDA Q1 Hogs & Pigs Inventory.
Notable Russell 1000 earnings reports today include: Constellation Brands (consensus $1.75).
U.S. IPO's scheduled to price today: iQIYI Inc (Pending:IQ).
Equity conferences this week: none.
Jun S&P 500 E-mini stock futures (ESM18 +0.34%) this morning are up +9.75 points (+0.37%). Wednesday's closes: S&P 500 -0.29%, Dow Jones -0.04%, Nasdaq -1.06%. The S&P 500 on Wednesday closed lower on continued weakness in technology stocks as further reports emerged on the Trump administration's drive to halt Chinese investment in sensitive U.S. industries. In addition, energy stocks were undercut by the -1.33% decline in crude oil prices. Stocks found some support on the upward revision in U.S. Q4 GDP to 2.9% from 2.5% and on the +3.1% m/m increase in U.S. Feb pending home sales, stronger than expectations of +2.0% m/m.
Jun 10-year T-note prices (ZNM18 +0-015) this morning are up +2.5 ticks. Wednesday's closes: TYM8 unch, FVM8 -0.75. Jun 10-year T-notes on Wednesday fell back from a 1-1/2 month high and closed little changed. T-notes found support on a decline in inflation expectations after the 10-year T-note breakeven inflation rate fell to a 1-1/2 month low. T-notes were also supported by the continued weakness in stocks. T-note prices were undercut by the stronger-than-expected U.S. economic data on Q4 GDP and Feb pending home sales.
The dollar index (DXY00 -0.11%) this morning is down -0.069 (-0.08%). EUR/USD (^EURUSD +0.19%) is up +0.0012 (+0.10%) and USD/JPY (^USDJPY -0.32%) is down -0.31 (-0.29%). Wednesday's closes: Dollar Index +0.686 (+0.77%), EUR/USD -0.0095 (-0.77%), USD/JPY +1.51 (+1.43%). The dollar index on Wednesday closed higher on the stronger-than-expected upward revision to U.S. Q4 GDP to 2.9% from +2.5% and the stronger-than-expected U.S. Feb pending home sales report of +3.1% m/m, which was hawkish for Fed policy.
May crude oil (CLK18 -0.11%) this morning is down -3 cents (-0.05%) and May gasoline (RBK18 -0.29%) is -0.0073 (-0.36%). Wednesday's closes: May crude -0.87 (-1.33%), May gasoline -0.0018 (-0.09%). May crude oil and gasoline on Wednesday closed lower on a stronger dollar and on the bearish EIA report that showed a +1.64 million bbl increase in EIA crude inventories (vs expectations of +850,000 bbl) and a +0.2% increase in U.S. crude production to a record high 10.433 million bpd. Crude oil prices found support on the -3.47 million bbl draw in EIA gasoline supplies (vs expectations of -2.25 million bbl) and the increase in the crack spread to a 4-1/2 month high, which gives an increased incentive to refineries to purchase crude oil to refine into gasoline.
Metals prices this morning are mixed with Apr gold (GCJ18 +0.09%) +0.9 (+0.07%), May silver (SIK18 +0.04%) -0.018 (-0.11%), and May copper (HGK18 +0.75%) +0.020 (+0.67%). Wednesday's closes: Apr gold -17.8 (-1.33%), May silver -0.288 (-1.74%), May copper +0.0015 (+0.05%). Metals on Wednesday settled mixed. Metals prices were undercut by a stronger dollar and by the decline in inflation expectations that reduces demand for gold as an inflation hedge after the 10-year T-note breakeven inflation rate fell to a 1-1/2 month low. Copper prices were undercut by the +4,200 MT increase in LME copper inventories to a 4-1/4 year high of 388,175 MT. Copper found support on stronger-than-expected U.S. economic data on Q4 GDP and Feb pending home sales.
Northrop Grumman (NOC -1.31%) was rated a new 'Overweight' at Barclays with a price target of $400.
PVH Corp (PVH +0.60%) rose nearly 3% in after-hours trading after it reported Q4 adjusted EPS of $1.58, above consensus of $1.47, and then said it sees full-year adjusted EPS of $9.00 to $9.10, higher than consensus of $8.96.
Boeing (BA -0.34%) was rated a new 'Overweight' at Barclays with a price target of $388.
Starbucks (SBUX +0.77%) fell over 1% in pre-market trading after it was downgraded to 'Neutral' from 'Outperform' at Wedbush with a price target of $56.
Realty Income (O +2.86%) was upgraded to 'Buy' from 'Neutral' at D.A. Davidson with a price target of $57.
General Dynamics (GD -1.71%) was rated a new 'Overweight' at Barclays with a price target of $282.
Duke Energy (DUK +0.42%) was downgraded to 'Sell' from 'Neutral' at Goldman Sachs.
Verint Systems (VRNT -0.66%) jumped 7% in after-hours trading after it reported Q4 adjusted EPS of $1.05 higher, than consensus of $1.00, and forecast fiscal year 2019 adjusted EPS of $3.09 at the midpoint, above consensus of $3.06.
Progress Software (PRGS -0.29%) climbed over 4% in after-hours trading after it reported Q1 adjusted EPS of 54 cents, better than consensus of 47 cents, and said it sees full-year adjusted EPS of $2.36-$2.41, higher than consensus of $2.35.
GameStop (GME +1.95%) gained almost 2% in after-hours trading after it reported Q4 comparable sales up +12.2%, better than consensus of +10.6%.
Heron Therapeutics (HRTX +0.36%) dropped 6% in after-hours trading after it announced it intends to off $125 million of its common stock in an underwritten registered public offering.
Global Medical REIT (GMRE +5.31%) was upgraded to 'Buy' from 'Neutral' at D.A. Davidson with a price target of $8.
Sportsman's Warehouse Holdings (SPWH +8.66%) rose nearly 4% in after-hours trading after it said it sees Q1 sales of $173 million to $180 million, above consensus of $166.8 million, and then forecast full-year sales of $830 million-$860 million, better than consensus of $808.4 million.
Cloud Peak Energy (CLD +2.23%) fell over 5% in after-hours trading after JPMorgan Chase downgraded it to 'Underweight' from 'Neutral.'