Friday, July 20, 2018

07/20/2018 - **Overnight Markets and News**

**Overnight Markets and News**

Sep E-mini S&Ps (ESU18 -0.16%) this morning are down -0.23% and European stocks are down -0.34% on escalation of trade tensions after President Trump told CNBC this morning that he's "ready to go to" with $500 billion in new tariffs on Chinese goods.  European automakers also tumbled after German Chancellor Merkel said the European Union is ready to retaliate against any U.S. auto tariffs.  Asian stocks settled mostly higher: Japan -0.29%, Hong Kong +0.76%, China +2.05%, Taiwan +0.89%, Australia +0.37%, Singapore +0.62%, South Korea +0.35%, India +0.40% .  China's Shanghai Composite fell to a 1-week low as the yuan sank to a new 1-year low against the dollar.  However, Chinese stocks recovered and lifted most other Asian bourses as the Shanghai Stock Index reversed course and rallied to a 1-week high after a 21st Century Business Herald report said that Chinese mutual funds will be allowed to buy non-standard products.  Japanese stocks closed lower after a stronger yen undercut exporter stocks.

The dollar index (DXY00 -0.10%) is down -0.07%.  EUR/USD (^EURUSD +0.15%) is up +0.07%.  USD/JPY (^USDJPY -0.06%) is down -0.03%.

Sep 10-year T-note prices (ZNU18 -0-015) are little changed, down -0.5 of a tick.

Japan Jun national CPI rose +0.7% y/y, weaker than expectations of +0.8% y/y.  Jun national CPI ex fresh food rose +0.8.% y/y, right on expectations.  Jun national CPI ex fresh food & energy rose +0.2% y/y, weaker than expectations of +0.4% y/y and the smallest pace of increase in 8 months.

German Jun PPI rose +0.3% m/m and +3.0% y/y, right on expectations with the +3.0% y/y gain the largest year-on-year increase in 9 months.




**U.S. Stock Preview**

Key U.S. news today includes: (1) St. Louis Fed President James Bullard (non-voter) speaks on the U.S. economy and monetary policy at the Glasgow Chamber of Commerce in Glasgow, KY, (2) USDA Jun Cattle on Feed.

Notable S&P 500 earnings reports today include: GE (consensus $0.18), Honeywell (2.01), Rockwell Collins (1.87), Citizens Financial (0.85), Stanley Black (2.02), Regions Financials (0.33), Suntrust Banks (1.31), Baker Hughes (0.14), VF Corp (0.33), Schlumberger (0.43), State St (2.01), Kansas City Southern (1.51).

U.S. IPO's scheduled to price today: none.

Equity conferences during the remainder of this week: none.




**Overnight U.S. Stock Movers**

Yum China (YUMC -2.20%) was downgraded to 'Underperform' from 'Neutral' at Bank of America/Merrill Lynch with a price target of $34.

Microsoft (MSFT -0.68%) is up more than 3% in pre-market trading after it reported Q4 revenue of $30.09 billion, better than consensus of $29.22 billion.

Intuitive Surgical (ISRG -1.25%) climbed more than 4% in after-hours trading after it reported Q2 adjusted EPS of $2.76, higher than consensus of $2.49.

Capital One Financial (COF -1.77%) gained more than 1% in after-hours trading after it reported Q2 adjusted EPS of $3.22, well above consensus of $2.63.

Skyworks Solutions (SWKS +0.44%) rallied more than 4% in after-hours trading after it reported Q3 adjusted EPS of $1.64, higher than consensus of $1.60.

General Electric (GE -0.15%) climbed nearly 3% in pre-market trading after it reported Q2 revenue of $30.1 billion, higher than consensus of $29.38 billion.

Celanese (CE -0.88%) moved up nearly 5% in after-hours trading after it reported Q2 adjusted EPS of $2.90, well above consensus of $2.43, and then forecast full-year adjusted EPS of $10.50 to $10.75, stronger than consensus of $9.65.

Exponent (EXPO +0.20%) fell more than 2% in after-hours trading after it reported Q2 EPS of 34 cents, below consensus of 46 cents.

Keurig Dr Pepper (KDP -1.45%) may initially open higher this morning after Mondelez reported a 13.8% stake in the company.

Semtech (SMTC +0.10%) was rated a new 'Buy' at Stifel with a price target of $60.

PTC Therapeutics (PTCT +4.46%) jumped 9% in after-hours trading after it acquired Agilis in a cash and stock deal worth about $200 million.

Skechers (SKX +1.84%) sank more than 20% in after-hours trading after it reported Q2 EPS of 29 cents, weaker than consensus of 41 cents, and then forecast Q3 EPS to be between 50 cents and 55 cents, well below consensus of 68 cents.

Zynerba Pharmaceuticals (ZYNE +2.36%) fell more than 16% in after-hours trading after it announced that it intends to offer $30 million of its common stock in an underwritten public offering.

Manhattan Bridge Capital (LOAN +1.42%) slipped almost 5% in after-hours trading after it announced that it proposing to offer its common stock in an underwritten public offering, although no size was given.

FTD Cos (FTD +1.35%) dropped 6% in after-hours trading after President and CEO John Walden stepped down effective immediately after the company reported Q2 preliminary revenue of $299 million, much weaker than expectations of $321.5 million.




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