Tuesday, July 17, 2018

07/17/2018 - **Overnight Markets and News**

**Overnight Markets and News**

Sep E-mini S&Ps (ESU18 -0.15%) this morning are down -0.13% and European stocks are down -0.44% on position squaring and long liquidation ahead of Fed Chair Powell's testimony before the Senate Banking Committee later this morning.  The markets will scour Powell's comments as to clues about the future pace of Fed tightening.  Also, a 12% slide in Netflix in pre-market trading is leading technology stocks lower after the company reported fewer new subscribers than expected.  Asian stocks settled mostly lower: Japan +0.44%, Hong Kong -1.25%, China -0.57%, Taiwan -0.36%, Australia -0.61%, Singapore +0.21%, South Korea -0.16%, India +0.54%.  Japan's Nikkei Stock Index climbed to a 1-month high on strength in automakers and exporters as USD/JPY consolidates just below Friday's 6-1/4 month high.

The dollar index (DXY00 +0.05%) is down -0.01%.  EUR/USD (^EURUSD -0.02%) is up +0.06%.  USD/JPY (^USDJPY +0.22%) is up +0.20%.

Sep 10-year T-note prices (ZNU18 unch) are little changed, down -0.5 of a tick.

Eurozone Jun new car registrations rose +5.2% y/y at 1,569,067 and year-to-date are up +2.9% y/y at 8,449,247.

The UK ILO unemployment rate was unchanged for the three months through May at 4.2%, right on expectations.

UK May avg weekly earnings were +2.5% 3-mo avg y/y, right on expectations.  May weekly earnings ex-bonus were up +2.7% 3-mo avg y/y, right on expectations.

China Jun new home prices rose +1.1% n/n and +5.8% y/y.




**U.S. Stock Preview**

Key U.S. news today includes: (1) Jun industrial production (expected +0.5%, May -0.1%) and Jun manufacturing production (expected +0.7%, May -0.7%), (2) Jul NAHB housing market index (expected unch at 68, Jun -2 to 68), (3) Fed Chair Jerome Powell delivers semi-annual report on the economy before the Senate Banking Committee and then answers lawmaker questions.

Notable S&P 500 earnings reports today include: Golman Sachs (consensus $4.66), UnitedHealth Group (3.04), Comerica (1.66), Progressive Corp (1.11), Johnson & Johnson (2.07), Charles Schwab (0.48), CSX (0.87), United Continental Holdings (3.06).

U.S. IPO's scheduled to price today: Coastal Financial Corp (CCB), Crinetics Pharmaceuticals (CRNX).

Equity conferences during the remainder of this week: Sprott Natural Resource Symposium on Wed, 64th ISTH (International Society on Thrombosis and Haemostasis) Conference on Wed.




**Overnight U.S. Stock Movers**

Netflix (NFLX +1.18%) tumbled 12% in pre-market trading after it reported Q2 revenue of $3.91 billion, weaker than consensus of $3.94 billion, and said that it added 5.2 million users in Q2, 1 million below expectations of 6.2 million subscribers.

Amazon.com (AMZN +0.52%) is down more than 1% in pre-market trading after the company reported technical glitches on its website and app during its Prime Day sales promotion.

Intel (INTC -0.40%) was downgraded to 'In-line' from 'Outperform' at Evercore ISI.

Manitowoc (MTW -1.50%) was downgraded to 'Sell' from 'Neutral' at Goldman Sachs with a price target of $22.

First American Financial (FAF +0.12%) was upgraded to 'Outperform' from 'Market Perform' at Keefe, Bruyette & Woods with a price target of $61.

Wolverine World Wide (WWW +0.86%) was upgraded to 'Strong Buy' from 'Buy' at CL King & Associates with a price target of $41.

Goodyear Tire & Rubber (GT -1.15%) is down almost 3% in pre-market trading after it was downgraded to 'Sell' from 'Neutral' at Goldman Sachs with a price target of $18.

International Game Technology PLC (IGT -1.97%) rose nearly 3% in after-hours trading after FanDuel announced that IGT will be the sport's betting platform provider at Meadowlands Racetrack in East Rutherford, NJ.

Carbonite (CARB -0.13%) dropped 6% in after-hours trading after it announced that it had commenced a proposed public offering of 4.0 million shares of its common stock.

Xeris Pharmaceuticals (XERS -0.54%) was rated a new 'Buy' at Mizuho Securities with a price target of $26.

Redfin (RDFN +2.00%) fell almost 5% in after-hours trading after it announced that it intends to offer 3.5 million shares of its common stock in an underwritten public offering.

Evolus (EOLS -3.97%) sank 12% in after-hours trading after it commenced a proposed underwritten public offering of 5.0 million shares of its common stock with 2.5 million shares being offered by Evolus and 2.5 million shares to be offered by a selling stockholder of Evolus.

Switch (SWCH +1.02%) was rated a new 'Buy' at Stifel with a price target of $15.

Avid Bioservices (CDMO -3.66%) climbed 6% in after-hours trading after it reported an unexpected Q4 profit of 3 cents, better than consensus of a -15 cents per share loss.




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