Америка сегодня. Торговый баланс и потребительское кредитование.

 

 

 On The Wires

• Manchester United (MANU) confirmed season & match ticket prices for the 2017-18 campaign, which will see prices frozen for the sixth consecutive year, along with additional reductions for young Season Ticket holders.  The Club has reduced the cost of Season Tickets by a minimum of 50% for Under 16s in East Stand Tier 2, Sir Alex Ferguson Stand Tier 2 and Quadrants Tier 2. This is in addition to the dedicated Family Stand and Sir Alex Ferguson Stand Tier 3 which will remain at just £10 per game.  There will also be a 25% reduction applied to EFL home match tickets next season, in addition to the 25% discount already applied to UEFA Europa League games (if applicable), providing further savings.  The seventh price freeze in eight years will see Season Ticket prices start from £532 for adults, with a variety of concessionary tickets available.
• Fluor Corporation (FLR) announced its joint venture team, KPJV, has been selected by Tengizchevroil LLP (TCO) to execute the front-end engineering and design (FEED) for the Multi-Phase Pump Project in Kazakhstan. Fluor booked its share of the contract value in the fourth quarter of 2016.
• EnSync (ESNC) announced they are working with ENMAX Energy Corporation at the District Energy Centre site in Calgary, Alberta, to integrate Solar and Energy Storage with a Combined Heat and Power system using EnSync's patented Matrix technology. ENMAX will utilize EnSync's Matrix Supply Response on Demand capability as part of the system integration and test several operating scenarios for optimal system performance and efficiency. ENMAX will provide the combined heat and power and purchase the energy storage from EnSync. EnSync will provide the Matrix technology in combination with EnSync's new proprietary control platform for complete system integration and testing at the District Energy Centre.
• Clean Energy Fuels Corp (CLNE) announced that it has signed a fueling agreement with Mountain Valley Express, an express shipping company based out of Manteca, California, that has purchased nine Heavy-Duty trucks equipped with the new CWI 9L ISL G Zero NOx natural gas engine. The fueling agreement will allow Mountain Valley to use Clean Energy's Redeem brand of renewable natural gas (RNG) vehicle fuel for the new trucks. These revolutionary engines reduce smog forming NOx emissions by 90% over the current EPA standard, and when combined with Redeem, have 70% less greenhouse gas (GHG) emissions than diesel trucks.
• Lombard Medical (EVAR) announced that physicians in Japan have successfully treated the first 15 patients using its innovative new IntelliFlex LP Delivery System for the Aorfix Endovascular Stent Graft since launch on February 1, 2017.

 

 

 Overnight Summary — World markets rising with the greenback this morning

• The global equity markets are doing little more than treading water this morning, with a mixed bag across the equity landscape. With that said, US futures are trading on the positive side, with S&P Futures trading near the highs of the session. Most of the currency pairs are weaker against the dollar this morning. The Dollar Index is up 0.8%, thus far and equity markets have seemed to echo its movement overnight.
• The trading in Asia's major indices was unexciting and saw small net changes across the board. Japanese equities struggled gain any traction on Tuesday, with the Nikkei closing 0.4% lower after suffering from notable strength in the yen against the dollar on Monday. The Shanghai also sputtered throughout the session with traders seemingly uninspired by the lack of participation by PBOC, refraining from adding any liquidity to the markets today.
• As a side note, the Reserve Bank of Australia met today, but left interest rates unchanged at 1.50%. India's Central Bank is on deck with a policy update due out tomorrow. The Sensex was off by 0.3% with traders taking some money off the table following a 4-day rally.
• In Europe, the major bourses are trading slightly higher in the early stages of today's action. France's CAC is lagging its regional peers, stymied by BNP Paribas' soft quarter. The French lender is trading ~5% lower and limiting gains across the financial sector. The FTSE is trading 0.4% higher and shrugging off weakness in energy names. BP (-2%) is among the worst stocks of the group after the co posted Q4 results.

Market updates: 

• S&P Futures vs Fair Value: +5.00 
• 10 yr Note: 2.4207% 
• USD/JPY: 112.47 +0.75
• EUR/USD: 1.0669 -0.0080
• Europe: FTSE +0.4% DAX +04% CAC +0.1% 
• Asia: Hang Seng -0.1% Shanghai -0.1% Nikkei -0.4% 
• Commodities: Gold (1230.40 -1.70) Silver (17.59 -0.10) crude (52.85 -0.16) 

US Econ Data

• December Trade Balance (8:30am)
• JOLTS- Job Openings (10am)
• 3-year Note Auction (1pm)
• December Consumer Credit (3pm)

 

 

 

 

 On The Wires

• Essent Guaranty (ESNT) announced today that ordering Essent MI services through the Mortgage Cadence Enterprise Lending Center  loan origination solution (LOS), is now even easier for underwriters. The Essent MI integration, already available to lenders through Mortgage Cadence's LOS, now provides even greater efficiency.
• SK Telecom (SKM) will determine dividend amounts with respect to the 2017 fiscal year in light of the business environment and the Company's financial condition, among other factors. Currently, the Company expects that the dividend amounts with respect to the 2017 fiscal year will be similar to the dividend amounts with respect to the 2016 fiscal year.
• On February 6, 2017, Clean Energy Fuels (CLNE) signed a negotiated note repurchase agreement with one of its directors and significant stockholders, T. Boone Pickens (the «Holder»), pursuant to which the Company agreed to purchase from the Holder the 7.5% Convertible Note due July 2018 having an outstanding principal amount of $25.0 million issued by the Company and held by the Holder (the «Note»). The Company agreed to pay to the Holder a cash purchase price of $21.75 million for the Note, reflecting a 13% discount on the outstanding principal amount of the Note. The Company offered to purchase the other outstanding 7.5% Convertible Notes due July 2018, which have an aggregate outstanding principal amount of $25.0 million, from the holders of such notes on the same terms and for the same purchase price, but such holders declined to participate in the note repurchase transaction.
• Farmer (FARM) previously reported that Isaac N. Johnston, Jr. resigned as Treasurer and Chief Financial Officer of the Company effective January 6, 2017 to pursue another opportunity. While the Company's search for a permanent Treasurer and Chief Financial Officer is ongoing, on February 1, 2017, the Board of Directors of the Company appointed Rene E. Peth to perform the functions of interim principal financial and accounting officer, effective immediately. Ms. Peth is currently the Company's Vice President, Corporate Controller and has served in this role since December 2013, responsible for the Company's financial statements, general ledger, managing all accounting functions, and communications with external auditors.
• International Game Technology PLC (IGT) announced that its subsidiary, IGT Global Services Limited, has signed contracts with Norsk Tipping to provide interactive casino and Instant Win game libraries and custom games through a Remote Game Server as part of a recent competitive procurement process. Norsk Tipping, Norway's state lottery operator and a World Lottery Association member, has been a valued customer of IGT, previously legacy GTECH, since 2013.
• The Reels Division of Sonoco (SON) announced it is implementing a general price increase for both new and recycled molded wooden plugs in the United States and Canada. Sonoco has not increased prices for its plug products since 2011. The price increase is expected to be in the range of 6-8%.
• The European Commission has approved under the EU Merger Regulation the acquisition of two Cargill oilseed processing facilities by Bunge (BG) of the Netherlands. The two Cargill oilseed facilities are an oilseed crushing and seed oil refining facilities located in Amsterdam, the Netherlands and an oilseed crushing and storage facilities located in Brest, France. The Commission concluded that the proposed acquisition would raise no competition concerns because of the presence of several alternative competitors in the soybean meal and oil markets, including importers.

 Asian Markets Close: Nikkei -0.4%, Hang Seng -0.1%, Shanghai -0.1%

Equity indices in the Asia-Pacific region ended Tuesday on a mostly lower note, but trading ranges were fairly narrow. Japan's Nikkei (-0.4%) saw a modest downtick while the yen began retreating at the end of the Tokyo session. The yen is currently down 0.6% against the dollar at 112.43, erasing the bulk of yesterday's advance. The Reserve Bank of Australia made no changes to its policy stance, keeping its key rate at 1.50%, as expected. Elsewhere, Reserve Bank of New Zealand Governor Graeme Wheeler said he plans to retire at the end of his term in late September.

In economic data:

• Japan's December Leading Index 105.2 (expected 105.6; previous 102.8) and December Coincident Indicator +0.1% (last 1.6%)
• China's FX Reserves fell to $2.99 trillion for the first time since early 2011 (expected $3.00 trillion; last $3.01 trillion)
• Australia's January AIG Construction Index 47.7 (last 47.0)
• New Zealand's Inflation Expectations 1.9% (last 1.7%)

---Equity Markets---

• Japan's Nikkei slipped 0.4%, returning to last week's lows. Japan Steel Works, Sony Financial Holdings, Toyota Motor, J Front Retailing, Yamaha, Suzuki Motor, Japan Tobacco, Konami, and Fast Retailing ended among the laggards with losses between 1.5% and 5.2%.
• Hong Kong's Hang Seng shed 0.1%. Gaming and casino names struggled with Tencent Holdings, Sands China, and Galaxy Entertainment falling between 1.6% and 2.0%. BoC Hong Kong, Bank of East Asia, and HSBC lost between 0.2% and 0.8% while property names held up well. New World Development, Henderson Land, Hang Lung Properties, and Cheung Kong Property Holdings added between 0.6% and 1.0%.
• China's Shanghai Composite slipped 0.1%. Wanhua Chemical Group, Shenzhen Geoway, Sinochem International, North Electro-Optic, and Phenix Optical lost between 2.0% and 2.5%.
• India's Sensex settled lower by 0.4% amid losses in most components. Tata Motors fell 3.5% while financials like AXIS Bank, ICICI Bank, and HDFC Bank lost between 0.5% and 0.9%. Infosys outperformed, climbing 1.1%.

---FX---

• USDJPY +0.6% to 112.43
• USDCNY +0.3% to 6.8835
• USDINR +0.3% to 67.424

 

 

 

 

 

 

 

 

 

 

 Early premarket gappersGapping up: PIP +26.7%, ADHD +11.5%, DRYS +8.2%, RE +8.1%, JLL +7.8%, PMD +7.2%, MFIN +7.1%, HQY +6.4%, GLBS +6.2%, ACM +5.7%, NOV +5.3%, ALSN +5.1%, AVXL +4.9%, FN +4%, GPS +2.7%, PAHC +2%, NOK +1.9%, EMR +1.8%, CHD +1.4%, CAT +1.1%, BIIB +1%, CNC +1%, QSR +0.8%, RIO +0.7%, NVDA +0.6%, TWO +0.6%

Gapping down: GIGA -26.6%, KTOV -24.3%, AUPH -8.1%, KORS -6.7%, YRCW -4.8%, FMC -4.4%, KN -4.3%, ALLT -3.4%, ARWR -3.2%, BP -3.2%, MAC -2.9%, HLI -2.6%, TEVA -2.5%, LMNX -2.4%, KGC -2.2%, AM -2.1%, AUY -2%, TLLP -2%, STO -1.9%, BMI -1.8%, AU -1.7%, CLLS -1.6%, ABX -1.4%, HMY -1.4%, GFI -1.4%, ING -1.4%, NEM -1.2%, CS -1.1%, GAIN -1.1%, GDX -1%, EBAY -0.9%, GOLD -0.8%, SLV -0.7%, AG -0.7%, FOXA -0.7%

 

 

 

 

 

 

 

 Overseas Research Calls

Upgrades: 

• Caixabank (CAIXY) upgraded to Buy from Neutral at Goldman
• Bankia (BNKXF) upgraded to Neutral from Sell at Goldman
• ThyssenKrupp AG (TYEKF) upgraded to Outperform from Neutral at Macquarie
• Randgold Resources (GOLD) upgraded to Buy from Add at Numis
• Smiths Group (SMGZY) upgraded to Buy from Add at Numis
• Reckitt Benckiser (RBGLY) upgraded to Add from Hold at Numis
• Cairn Energy (CRNCY) upgraded to Buy from Hold at Deutsche Bank

Downgrades: 

• AstraZeneca (AZN) downgraded to Sell from Hold at Shore Capital
• Premier Oil plc (PMOIY) downgraded to Hold from Buy at Deutsche Bank
• Reckitt Benckiser (RBGLY) downgraded to Underperform from Sector Perform at RBC Capital Mkts

Miscellaneous: 

• Worldpay (WDDYF) initiated with a Hold at Deutsche Bank
• Svenska Cellulosa (SVCBY) resumed with an Overweight at JP Morgan

 

 

 

 

 Overnight Treasury Summary

Treasuries Slip as Dollar and Stocks Rebound

• U.S. Treasuries are trading lower this morning as global equities bounced and the U.S. Dollar Index rallied 0.66% to 100.57. On Monday afternoon, Philadelphia Fed President Patrick Harker said that a rate hike is on the table at the March 15 FOMC meeting although the Fed funds futures market only implies a 9% probability of a hike, according to the CME website. Internationally, the Reserve Bank of Australia held its bank rate at 1.50% and signaled that it may be at the end of its easing cycle. German industrial production unexpectedly fell 3.0% in December and U.K. house prices declined 0.9% in January. The S&P 500 is set to open up 0.22% to 2,297.6 and WTI crude is off by 0.49% to $52.75/bbl., firmly within its two-month range. Gold is up just 0.07% to $1,233/troy oz. as the greenback strengthens
• Yield Check:
  
  • 2-yr: +1 bp to 1.16%
  • 5-yr: +1 bp to 1.86%
  • 10-yr: +1 bp to 2.42%
  • 30-yr: +2 bps to 3.06%

• International News:
  
  • Philadelphia Fed President Harker (FOMC voter) said on Monday that a rate hike should be on the table at the March 15 FOMC meeting
    
    • Harker said that a precondition for a rate hike would be further output growth and strengthening in the labor market, «not just in terms of the job numbers but also seeing continued wage growth and income growth because that will ultimately feed into inflation»
    • Those words have added meaning after last Friday's release of the January employment report showed nonfarm payrolls growing rapidly but wage growth decelerating
    • Harker also said that he is still supportive of three 25-basis point rate hikes in 2017, data dependent
  • The Reserve Bank of Australia held its main policy rate at 1.50% today, as expected, but indicated that further easing is done for the time being
    
    • The RBA is currently navigating between the Scylla of below-target inflation and the Charybdis of a strong housing market. The RBA's statement noted that lending standards strengthened
    • Separately, Australia's AIG Construction Index rose to a four-month high of 47.7 in January (47.0 in December)
  • Japan's Leading Index increased by a smaller-than-expected 2.6% m/m in December (+1.9% in November)
    
    • Japan's Coincident Index ticked up by 0.1% m/m in December (+1.6% in November)
  • Switzerland's SECO Consumer Climate Index jumped more than expected to -3 for Q1 from -13 in Q4 2016
  • German industrial production dropped 3.0% m/m in December, missing estimates for modest growth after a 0.5% increase in November
  • France's current account deficit narrowed more than expected to EUR1.1 bln for December from EUR2.8 bln for November
    
    • France's budget deficit narrowed to EUR69.0 bln for December from EUR93.3 bln for November
  • The U.K.'s Halifax House Price Index fell 0.9% m/m in January (+5.7% y/y), missing forecasts after 1.6% growth in December
    
    • The U.K.'s BRC Retail Sales Monitor slipped by 0.6% y/y in January, missing expectations after a 1.0% rise in December

• Data out Tuesday:
  
  • December Trade Balance (08:30 ET)
  • December JOLTS — Job Openings (10:00 ET)
  • December Consumer Credit (15:00 ET)
• Treasury Auction:
  
  • $24 bln 3-year Treasury auction (results at 13:00 ET)

 On The Wires

• BMO Harris Bank is expanding its ATM branding relationship with Cardtronics (CATM) to provide its customers with surcharge-free ATM access at more than 60 BMO Harris Bank-branded ATMs at Speedway convenience stores in Wisconsin, including the Milwaukee metro area.
• Zix Corporation (ZIXI) has modernized its company brand to strengthen its communication to customers and prospects and enable the brand to advance with future growth opportunities. The rebrand includes an evolution of the company's name and logo from ZixCorp to Zix and reflects a modern and fresh design with messaging that affirms Zix as the gold standard in email encryption.  With the company rebrand, Zix's goals were to build on its trusted reputation and energize customers, prospects, partners, employees and shareholders around the company's purpose and vision.

 

 

 Gapping down

Gapping down
In reaction to disappointing earnings/guidance:

• GIGA -26.6%, KORS -7.3%, MOS -6.7%, ALLT -5.6%, YRCW -4.8%, FMC -4.4%, KN -4.3%, BP -3.6%, ARWR -3.2%, MAC -3%, LMNX -2.4%, VSH -2.4%
• TLLP -2%, STO -1.9%, BMI -1.8%
• AM -1.6% (provides prelim Q4 results; announces the formation of a joint venture to develop processing and fractionation assets in Appalachia; increases 2017 guidance; upsizes/prices offering)
• GAIN -1.1%, FOXA -0.7%

Select EU financial related names showing weakness in sympathy with BNP Paribas (-5% in France after earnings):

• CS -0.9%, DB -0.6%, HSBC -0.5%, SAN -0.5%

Select metals/mining stocks trading lower:

• AUY -2.5%, KGC -1.9%, HMY -1.4%, GFI -1.4%, ING -1.4%, NEM -1.2%, AU -1.1%, ABX -0.9%, AG -0.9%, GOLD -0.8%, GDX -0.8%, SLV -0.5%

Other news:

• KTOV -23.9% (late decline on speculation of an investigation involving the company's CEO)
• FXCM -19.7% (confirms settlement with NFA and CFTC and non-binding letter of intent for GAIN Capital [GCAP] to purchase FXCM's U.S. customer accounts)
• AUPH -8.1% (accepted the resignation of Charles Rowland as CEO and appointed Dr. Richard Glickman as new CEO)
• HLI -3.4% (commences 10 mln common stock offering, consisting of 7.5 mln shares offered by the co and 2.5 shares offered by certain of its employees and members of management)
• TEVA -3.3% (appoints Dr. Yitzhak Peterburg as Interim CEO succeeding Erez Vigodman and names Dr. Sol J. Barer as Chairman)
• EBAY -0.9% (after disclosing material weakness in its internal control over financial reporting and filing mixed securities shelf offering)

Analyst comments:

• RH -4.6% (downgraded to Underperform from Neutral at Buckingham Research)
• AKG -1.6% (downgraded to Hold from Speculative Buy at Canaccord Genuity)
• CMO -1.2% (downgraded to Market Perform from Outperform at Wells Fargo)

 

 Gapping up/down: HQY +6%, GWPH +6%, GPS +4% and GM +1.5% after earnings, CAT and BIIB +2% after upgrades; KORS -7%, MOS -7%, BP -4%, and LMNX -2% after earnings

Gapping up
In reaction to strong earnings/guidance:

• RE +8.1%, JLL +7.8%, PMD +7.2%, AVXL +6.5%, HQY +6.4%, GWPH +6%, ACM +5.7%, ALSN +5.1% (also will buyback all of ValueAct's holdings)
• WWW +4.4% (announces leadership appointments; indicates quarterly results were in-line with expectations), FN +4.4%, NOV +3.2%, ITUB +3.2%
• GPS +2.7% (issued upside Q4 guidance and reported January same store sales +1%)
• TDG +2.2%, PAHC +2%, EMR +1.8%, GM +1.5%, CHD +1.4%, CNC +1%, QSR +0.8%

Other news:

• PIP +22.8% (continued strength following yesterday's 159% move)
• ADHD +11.5% (announces FDA meeting on its ADAIR product candidate defined a 505(b)(2) development path, to be funded with existing cash balance, and targeting a 2H 2018 NDA submission)
• DRYS +6.6% (after closing near highs — up 30% on the day)
• GLBS +4.6% (after closing near highs — up 20% on the day)

Analyst comments:

• ATHX +8.6% (initiated with a Buy at Needham; tgt $7)
• NOK +2.1% (upgraded to Overweight from Equal-Weight at Morgan Stanley)
• CAT +1.7% (upgraded to Overweight from Equal Weight at Barclays)
• BIIB +1.7% (upgraded to Buy from Neutral at Citigroup)

Gapping down
In reaction to disappointing earnings/guidance:

• GIGA -26.6%, KORS -7.3%, MOS -6.7%, ALLT -5.6%, YRCW -4.8%, FMC -4.4%, KN -4.3%, BP -3.6%, ARWR -3.2%, MAC -3%, LMNX -2.4%, VSH -2.4%
• TLLP -2%, STO -1.9%, BMI -1.8%
• AM -1.6%, (provides prelim Q4 results; announces the formation of a joint venture to develop processing and fractionation assets in Appalachia; increases 2017 guidance; prices/upsizes offering)
• GAIN -1.1%, FOXA -0.7%

Select EU financial related names showing weakness in sympathy with BNP Paribas (-5% in France after earnings):

• CS -0.9%, DB -0.6%, HSBC -0.5%, SAN -0.5%

Select metals/mining stocks trading lower:

• AUY -2.5%, KGC -1.9%, HMY -1.4%, GFI -1.4%, ING -1.4%, NEM -1.2%, AU -1.1%, ABX -0.9%, AG -0.9%, GOLD -0.8%, GDX -0.8%, SLV -0.5%

Other news:

• KTOV -23.9% (continued weakness on speculation of an investigation involving the company's CEO)
• FXCM -19.7% (confirms settlement with NFA and CFTC and non-binding letter of intent for GAIN Capital [GCAP] to purchase FXCM's U.S. customer accounts)
• AUPH -8.1% (Aurinia Pharma accepted the resignation of Charles Rowland as CEO and appointed Dr. Richard Glickman as new CEO)
• HLI -3.4% (commences 10 mln common stock offering, consisting of 7.5 mln shares offered by the co and 2.5 shares offered by certain of its employees and members of management)
• TEVA -3.3% (appoints Dr. Yitzhak Peterburg as Interim CEO succeeding Erez Vigodman and names Dr. Sol J. Barer as Chairman)
• EBAY -0.9% (eBay lower after disclosing material weakness in its internal control over financial reporting and filing mixed securities shelf offering)

Analyst comments:

• RH -4.6% (downgraded to Underperform from Neutral at Buckingham Research)
• AKG -1.6% (downgraded to Hold from Speculative Buy at Canaccord Genuity)
• CMO -1.2% (downgraded to Market Perform from Outperform at Wells Fargo)

 

 

 S&P futures vs fair value: +3.50. Nasdaq futures vs fair value: +4.90.

The S&P 500 futures trade four points above fair value.

Equity indices in the Asia-Pacific region ended Tuesday on a mostly lower note, but trading ranges were fairly narrow. Japan's Nikkei (-0.4%) saw a modest downtick while the yen began retreating at the end of the Tokyo session. The yen is currently down 0.7% against the dollar at 112.45, erasing the bulk of yesterday's advance. The Reserve Bank of Australia made no changes to its policy stance, keeping its key rate at 1.50%, as expected. Elsewhere, Reserve Bank of New Zealand Governor Graeme Wheeler said he plans to retire at the end of his term in late September.

In economic data:

• Japan's December Leading Index 105.2 (expected 105.6; previous 102.8) and December Coincident Indicator +0.1% (last 1.6%)
• China's FX Reserves fell to $2.99 trillion for the first time since early 2011 (expected $3.00 trillion; last $3.01 trillion)
• Australia's January AIG Construction Index 47.7 (last 47.0)
• New Zealand's Inflation Expectations 1.9% (last 1.7%)

---Equity Markets---

• Japan's Nikkei slipped 0.4%, returning to last week's lows. Japan Steel Works, Sony Financial Holdings, Toyota Motor, J Front Retailing, Yamaha, Suzuki Motor, Japan Tobacco, Konami, and Fast Retailing ended among the laggards with losses between 1.5% and 5.2%.
• Hong Kong's Hang Seng shed 0.1%. Gaming and casino names struggled with Tencent Holdings, Sands China, and Galaxy Entertainment falling between 1.6% and 2.0%. BoC Hong Kong, Bank of East Asia, and HSBC lost between 0.2% and 0.8% while property names held up well. New World Development, Henderson Land, Hang Lung Properties, and Cheung Kong Property Holdings added between 0.6% and 1.0%.
• China's Shanghai Composite slipped 0.1%. Wanhua Chemical Group, Shenzhen Geoway, Sinochem International, North Electro-Optic, and Phenix Optical lost between 2.0% and 2.5%.
• India's Sensex settled lower by 0.4% amid losses in most components. Tata Motors fell 3.5% while financials like AXIS Bank, ICICI Bank, and HDFC Bank lost between 0.5% and 0.9%. Infosys outperformed, climbing 1.1%.

 

Major European indices trade mostly in the green with France's CAC (unch) showing relative weakness. The IMF commented on Greece, but the remarks were similar to what the Fund has said in the past. The Fund noted that Greece has made progress towards unwinding imbalances, but non-performing loans need to be reduced and tax evasion still needs to be addressed.

In economic data:

• Germany's December Industrial Production -3.0% month-over-month (expected 0.3%; last 0.5%)
• UK's January Halifax House Price Index -0.9% month-over-month (expected 0.2%; last 1.6%); +5.7% year-over-year (consensus 6.0%; last 6.5%)
• France's December Current Account deficit EUR1.10 billion (expected deficit of EUR1.40 billion; last deficit of EUR2.80 billion). Trade deficit narrowed to EUR3.40 billion from EUR4.40 billion (expected deficit of EUR4.20 billion)
• Swiss Q1 SECO Consumer Climate -3 (expected -11; last -13)

---Equity Markets---

• France's CAC trades flat as gains in most components have been offset by losses among financials. Nokia, Klepierre, Airbus Group, Danone, and L'Oreal are up between 0.6% and 3.2%. On the downside, BNP Paribas, Societe Generale, and Credit Agricole show losses between 1.5% and 3.5%.
• Germany's DAX has climbed 0.6%. Heavyweights Siemens, BASF, Bayer, Adidas, and SAP are among the leaders with gains between 0.9% and 1.6%. Exporters are mixed with BMW and Volkswagen adding 0.5% apiece, while Daimler has shed 0.5%. Deutsche Bank and Commerzbank are down 0.4% and 0.1%, respectively.
• UK's FTSE trades up 0.7%. DCC has surged 5.7% after acquiring Esso Retail Norway. Homebuilders also outperform with Persimmon, Taylor Wimpey, and Barratt Developments rising between 2.1% and 2.7%. BP has given up 2.4% in reaction to disappointing results.

 Filings, Offerings and Pricings

Filings:

• eBay (EBAY) files mixed securities shelf offering
• PURE Bioscience (PURE) files for offering of 3,145,882 shares of common stock by selling stockholders

Offerings:

• Houlihan Lokey (HLI) commences 10 mln common stock offering, consisting of 7.5 mln shares offered by the co and 2.5 shares offered by certain of its employees and members of management

Pricings:

• Antero Midstream Partners (AM 33.89) prices common units offering of 6 mln shares (upsized from 5 mln shares) at $33.00/unit
• Paramount Gold Nevada (PZG 1.87) enters into definitive agreements with accredited investors to issue common stock and warrants in a $3.66 million private transaction at $1.75/unit

 

 

 S&P futures vs fair value: +3.50. Nasdaq futures vs fair value: +6.10.

The equity market is on track for a higher open on Tuesday as the S&P 500 futures trade four points above fair value.

A handful of notable names reported earnings results between yesterday's close and today's open, including General Motors (GM 36.08, -0.75), Twenty-First Century Fox (FOXA 31.05, -0.01), and Michael Kors (KORS 36.20, -5.08), among others. GM and KORS are down 2.0% and 12.4%, respectively, in the earnings aftermath while FOXA trades flat.

U.S. Treasuries have given back some of Monday's gains this morning amid the uptick in equity futures. The benchmark 10-yr yield is currently two basis points higher at 2.43%.

Earlier this morning on the data front, the December trade balance showed a deficit of $44.3 billion while the Briefing.com consensus expected the deficit to hit $45.0 billion. The previous month's deficit was revised to $45.7 billion from $45.2 billion.

Tuesday's economic data will also include December Job Openings and Labor Turnover Survey at 10:00 am ET and Consumer Credit at 3:00 pm ET.

 

 

 

 

 

 Opening Market Summary: Stock Market Opens Tuesday Slightly Higher

The stock market opened Tuesday's session by recouping Monday's modest loss. The S&P 500 currently holds a 0.2% gain.

Eight of the eleven sectors are higher as financials (+0.3%) and industrials (+0.5%) lead the small advance. Conversely, materials (-0.3%) and energy (-0.3%) sit at the bottom of the leaderboard in early action, with the latter space suffering from a 1.3% downtick in crude oil. The commodity currently trades at $52.32/bbl.

Treasuries continue to hold their pre-market losses. The benchmark 10-yr yield is two basis points higher at 2.43%.

 

 Economic Summary: December Trade Deficit slightly lower than expected

Economic Data Summary:

• December Trade Balance -$44.3 bln vs Briefing.com consensus of -$45.0 bln; November was revised to -$45.7 bln from -$45.2 bln
  • The key takeaway from the report is that it could stir the political trade pot since there were trade deficits recorded with China, the European Union, Japan, Germany, and Mexico. That isn't new, yet there's a new administration that isn't too fond of that dynamic.
• December JOLTS 5.501 M — Jobs Openings (November was 5.522 M).

Upcoming Economic Data:

• December Consumer Credit due out Tuesday at 15:00 (Briefing.com consensus of $19.4 bln; November was $24.5 bln)
• Weekly MBA Mortgage Applications due out Wednesday at 7:00 (Last Week was -3.2%)

Upcoming Fed/Treasury Events:

• The Treasury is expected to auction off new debt this week.
  • Tuesday: $24 bln in 3 Year Treasury Note Auction
  • Wednesday: $23 bln in 10 Year Treasury Note Auction
  • Thursday: $15 bln in 30 Year Treasury Bond Auction

Other International Events of Interest

• Germany's December Industrial Production -3.0% month-over-month (expected 0.3%; last 0.5%)

 

 

 Morning Commodities: Gold hovers just above yesterday's 3-month high despite strength in the dollar index; crude extends losses ahead of tonight's API

• In precious metals, gold hovered just above yesterday's 3-month high, silver traded nearly flat despite strength in the dollar index
  • April gold futures were up about $0.40 (+0.01%) around the $1232.50/oz level
• The dollar index was +0.7% around the 100.58 level
  • Commodities, as measured by the Bloomberg Commodity Index, were -0.1% around the 87.77 level
• Natural gas resumed its previous 3-day uptrend after closing modestly lower yesterday, ahead of Thursday's EIA release
  • Mar 2017 natural gas futures were up about $0.07 (+2.3%) around the $3.12/MMBtu level
  • EIA natural gas data will be released Thursday at 10:30 am ET
• Crude oil extended yesterday's losses ahead of tonight's API, note that crude has been trading in a tight $52.00-54.00/barrel range so far this year - see yesterday's Energy Sector Summary comment at 15.13 pm ET for contributing factors affecting the price of oil this week
  • Mar 2017 crude oil futures were down about $0.79 (-1.5%) around the $52.22/barrel level
  • Baker Hughes announced in a PR this morning that the avg US rig count for Jan 2017 was 683, up 49 from the 634 counted in Dec 2016, and up 29 from the 654 counted in Jan 2016
    • The international rig count for Jan 2017 was 933, up 4 from the 929 counted in Dec 2016, and down 112 from the 1,045 counted in Jan 2016
    • The international offshore rig count for Jan 2017 was 206, down 4 from the 210 counted in Dec 2016, and down 36 from the 242 counted in Jan 2016
    • The avg Canadian rig count for Jan 2017 was 302, up 93 from the 209 counted in Dec 2016, and up 110 from the 192 counted in Jan 2016
    • The worldwide rig count for Jan 2017 was 1,918, up 146 from the 1,772 counted in Dec 2016, and up 27 from the 1,891 counted in Jan 2016
  • Data reminders:
    • API petroleum data will be released today at 4:30 pm ET
    • EIA petroleum data will be released Wednesday at 10:30 am ET
    • Baker Hughes weekly rig count data will be released Friday at 1 pm ET

 

 Sector Summary: S&P Consumer Discretionary Index flat, underperforming the broader marketThe consumer discretionary group is underperforming the broader market. The retail group is holding up well and in the green — the Retail HOLDRS Trust (RTH) +0.5% and the SPDR S&P Retail ETF (XRT) +0.3%.

Notable earnings/guidance: 

• Trading higher following earnings/guidance: WWW 7.6% (announces leadership appointments; indicates quarterly results were in-line with expectations), ABG +7.2%, SPGI +2.7%, QSR 0.9% (Restaurant Brands Int'l provides selected FY16 guidance that it provided lenders regarding potential amendment/extension of its Term Loan B Facility), PAG +0.4%
• Trading lower following earnings/guidance: KORS -15%, SABR -13%, GM -4.5%, OMC -2.7%, TEN -1.6%, GPS -0.8% (Gap sees Q4 EPS of $0.50-0.51 ex items, vs $0.45 consensus and reports prelim Q4 sales of $4.43 bln vs $4.39 bln CapIQ consensus; January same store sales +1%), PSMT -0.1% (PriceSmart reports Jan comps of +0.2% vs -0.3% year ago and 3.1% last month), AMZN 0.6% (announced that more than 33 million customers have used Amazon Payments to make a purchase)

Earnings/guidance secondary plays: 

• Michael Kors (KORS -15%) disappointing earnings is weighing on accessory focused retailers: FOSL -4.2%, TIF -0.7%, KATE -0.6%, COH -0.5%
• Asbury Automotive +7% after topping Q4 estimates on top and bottom lines — auto vehicles, parts & service retailers higher in sympathy: MPAA +2.8%, SAH +1.3%, LAD +1.3%, PRTS +1.2% are all expected to report earnings this month, GPI +1.3% reported earnings last week… while auto manufacturers are lower following GM earnings: FCAU -4.2%, DDAIF -1.4%, POAHY -1%, F -0.9%, VLVLY -0.7%, VLKAY -0.3%, TM -0.2%

In the news:

• Leaders: BWLD 0.9% (Buffalo Wild Wings responds to Marcato; will review the nomination notice and present its formal recommendation in its definitive proxy materials), EBAY 0.7% (shaking off yesterday's after hours pullback from disclosing material weakness in its internal control over financial reporting and filing mixed securities shelf offering), HAS 2.8% and MAT 3.2% (Hasbro for Mattel chatter), COKE 0.6% and KO 0.5% (Coca-Cola Bottling Co. signs a non-binding LOI w/ The Coca-Cola Company to expand the Company's distribution territory in northern Ohio)
• Laggards: PERY -1.6% (appoints David Rattner as Chief Financial Officer), KR -0.6% (Kroger has purchased the equity of Murray's Cheese, as well as its flagship location; Financial terms of the merger were not disclosed)

Other notable trends:

• Homebuilders are under pressure:  LGIH -2.1%, CHCI -2%, MTH -1.3%, KBH -1.3%, TPH -1%, TMHC -0.8%, LEN -0.8%, TOL -0.7%, BZH -0.6%, MHO -0.5%, MDC -0.3%, DHI -0.2%, CAA -0.2%

Analyst related:

• Upgrades: SSI 2.5% (upgraded to Neutral from Sell at Northcoast), PH 0.1% (upgraded to Buy from Hold at Argus), CAT 1.1% (upgraded to Overweight from Equal Weight at Barclays)
• Downgrades: RH -4.8% (cont weakness; downgraded to Underperform from Neutral at Buckingham Research)
• Misc: TGT 0.7% (initiated with a Outperform at Bernstein; tgt $77)

Looking ahead:

• On the earnings front: BWLD, TCS, MDLZ, ORLY, PNRA, DIS report today after the close; CSTE, GT, GRUB, TWX tomorrow before the open.

 

 

 

 

 New Supply

Treasury Auction Preview

• $24 bln 3-year Treasury auction (results at 13:00 ET)
  
  • Prior auction results
    • High yield: 1.472%
    • Bid-to-cover: 2.97
    • Indirect bid: 54.6%
    • Direct bid: 6.6%
  • Average results of prior 12 auctions
    
    • High yield: 1.012%
      
    • Bid-to-cover: 2.80
      
    • Indirect bid: 50.1%
      
    • Direct bid: 10.0%

 

 Today's biggest % gainers/losersThe following are today's top 20 percentage gainers and top 20 percentage losers, categorized by sectors (over $300 mln market cap and 100K average daily volume).

Today's top 20 % gainers

• Healthcare: AKAO (18.56 +6.27%), CNC (67.5 +6.08%), OMER (10.47 +5.76%)
• Materials: CENX (16.18 +4.76%)
• Industrials: ALSN (37.75 +6.76%), WATT (16.57 +6.63%), MLI (42.21 +4.9%), TDG (242.07 +4.82%), EMR (62.72 +4.78%)
• Consumer Discretionary: FRED (15.14 +7.3%), ABG (68.05 +6.58%), WWW (22.33 +6.23%), ARMK (35.25 +5.29%)
• Information Technology: WUBA (29.32 +4.71%), CDW (55.91 +4.7%), LITE (40.6 +4.64%)
• Financials: GCAP (8.07 +5.49%)
• Energy: NOV (39.71 +6.01%)
• Consumer Staples: STKL (7.4 +5.71%), ELF (26.63 +5.17%)

Today's top 20 % losers

• Healthcare: LMNX (18.48 -7.46%), STE (66.27 -6.91%), MNKD (0.51 -5.73%), MD (65.06 -5.6%), HQY (44.66 -4.98%)
• Materials: AKG (3.25 -13.79%), FMC (57.61 -5.05%)
• Industrials: YRCW (13.46 -10.39%)
• Consumer Discretionary: KORS (36.14 -12.45%), MOD (12.2 -9.29%), RH (24.53 -6.8%)
• Information Technology: SABR (22.16 -10.68%), BMI (35.75 -7.02%), ARW (69.79 -6.42%), MSI (77.18 -5.57%)
• Energy: CRC (19.16 -9.41%), EPE (5 -8.33%), SDLP (4.31 -7.91%), BTE (3.59 -5.66%), CIE (0.89 -5.33%)

 

 

 

 

 

 

 

 

 

 Midday Market Summary: Equity Indices Flat at Midday

The major averages have ticked down in recent action, with the S&P 500 (-0.1%) exchanging a slim gain for a slim loss. The Nasdaq (+0.1%) and the Dow (+0.2%) still hold a portion of their early gains, but have also given up some ground amid a recent uptick in the Treasury market.

Demand for U.S. Treasuries has picked up this afternoon, pushing the government-issued debt to a new session high. The benchmark 10-yr yield, which was up two basis points this morning, is currently lower by three basis points at 2.38%.

Sectors are divided fairly evenly with five posting gains and six holding losses. The consumer staples sector (+0.6%) has emerged as the day's leader, with the top-weighted technology sector (+0.4%) just a step behind. Apple (AAPL 131.85, +1.56) has underpinned the tech space's performance again, trading higher by 1.2%.

Industrials (+0.3%) are also in the mix for the top spot on today's leaderboard, with Emerson Electric (EMR 62.49, +2.63) leading the charge. EMR shares have jumped 4.4% after the company reported better than expected top and bottom lines this morning in addition to raising earnings guidance for 2017.

General Motors (GM 35.05, -1.76) also produced a positive earnings report this morning, beating earnings and revenue estimates. However, the earnings beat may have taken a back seat to the company's 3.8% year-over-year decline in January sales. Shares of GM trade lower by 4.9%.

The consumer discretionary sector (-0.1%) has been weighed down by GM and other automakers, joining materials (-0.7%) and energy (-1.6%) in negative territory. The energy space has suffered from a 2.0% loss from crude oil as an uptick in U.S. production, signs of slowing demand growth, and a 0.4% climb in the U.S. Dollar Index (100.20, +0.36) have weighed on the commodity. WTI crude currently trades at $51.92/bbl.

Although the U.S. Dollar Index continues trading in the green, it has backed away from its high. The index has cut its gain in half due to a recent rebound in the Japanese yen (111.90) and the euro (1.0693).

Economic data reported this morning included December Trade Balance and December Job Openings and Labor Turnover Survey:

• The December trade balance showed a deficit of $44.3 billion while the Briefing.com consensus expected the deficit to hit $45.0 billion. The previous month's deficit was revised to $45.7 billion from $45.2 billion.
  • The key takeaway from the report is that it could stir the political trade pot since there were trade deficits recorded with China, the European Union, Japan, Germany, and Mexico. That isn't new, yet there's a new administration that isn't too fond of that dynamic.
• The December Job Openings and Labor Turnover Survey showed that job openings decreased to 5.501 million from a revised 5.505 million (from 5.522 million) in November.

The Consumer Credit report (Briefing.com consensus $19.4 billion), which will be released at 3:00 pm ET, will be the last economic report of the day.

 

 

 

 

 

 

 

 

 

 

 

 

 Currency Market Summary

Dollar Reverses Big Gains

• The U.S. Dollar Index added 0.36% to 100.27 today after trading as high as 100.72 early in the session. The overnight buying interest was driven by three factors. First, Philadelphia Fed President Harker said that a March rate hike is on the table for him and that sent Treasury yields higher along with the dollar. Second, there were more political worries about the eurozone with the IMF potentially not participating in the Greek bailout and traders still fretting about France's upcoming election in April. Third, German industrial production fell by the most since 2009 during December and that unwound some of the optimism that Monday's German factory orders surprise had created. Those concerns faded throughout the course of today's session as Treasury yields moved sharply lower which drove money flows back towards the yen, euro, and British pound. Again, the dollar does remain higher along with the pound and the greenback is broadly gaining against emerging market currencies
• EUR/USD: -0.44% to 1.0692
  
  • German industrial production dropped 3.0% m/m in December, missing estimates for modest growth after a 0.5% increase in November
  • France's current account deficit narrowed more than expected to EUR1.1 bln for December from EUR2.8 bln for November
• GBP/USD: +0.40% 1.2514
  
  • The U.K.'s Halifax House Price Index fell 0.9% m/m in January (+5.7% y/y), missing forecasts after 1.6% growth in December
  • The U.K.'s BRC Retail Sales Monitor slipped by 0.6% y/y in January, missing expectations after a 1.0% rise in December
• USD/CHF: +0.50% 0.9968
  
  • Switzerland's SECO Consumer Climate Index jumped more than expected to -3 for Q1 from -13 in Q4 2016
• USD/JPY: +0.33% to 112.11
  
  • Japan's Leading Index increased by a smaller-than-expected 2.6% m/m in December (+1.9% in November)
  • Japan's Coincident Index ticked up by 0.1% m/m in December (+1.6% in November)
• USD/CNY: +0.33% to 6.886
  
• USD/RUB: +0.67% to 69.34
  
• USD/TRY: +1.57% to 3.747
  
• USD/BRL: +0.18% to 3.122
• USD/MXN: +0.23% to 20.596
  
• USD/CAD: +0.61% to 1.317
  
  • Canada's Ivey PMI fell to 57.2 for January (seasonally adjusted basis) from 60.8 in December. Economists had expected a smaller decline
  • Canada's trade surplus narrowed less than expected to CAD0.92 bln for December from CAD1.01 bln in November
  • Building permits fell 6.6% m/m in December, missing expectations after a 1.2% dip in November
• AUD/USD: -0.16% to 0.7631
  
  • The Reserve Bank of Australia held its main policy rate at 1.50% today, as expected, but indicated that further easing is done for the time being
    
    • The RBA is currently navigating between the Scylla of below-target inflation and the Charybdis of a strong housing market. The RBA's statement noted that lending standards strengthened
  • Separately, Australia's AIG Construction Index rose to a four-month high of 47.7 in January (47.0 in December)
• NZD/USD: -0.08% to 0.7313