Wednesday, July 25, 2018

07/25/2018 - *Overnight Markets and News*

*Overnight Markets and News*

Sep E-mini S&Ps (ESU18 -0.14%) this morning are down -0.11% and European stocks are down -0.21% ahead of key trade talks between President Trump and European Commission President Jean-Claude Juncker.  NXP Semiconductors NV is down almost 2% in pre-market trading after Reuters reported that Qualcomm is unlikely to get Chinese approval on its acquisition of NXP Semiconductors and is making preparations to pay NXP Semiconductors the $2 billion termination fee.  Losses in European stocks were contained after the German Jul IFO business confidence fell less than expected.  Asian stocks settled mixed: Japan +0.46%, Hong Kong +0.90%, China -0.07%, Taiwan -0.27%, Australia -0.29%, Singapore +1.04%, South Korea -0.22%, India +0.09%.  Asian stocks found support on improved market sentiment due to better-than-expected S&P 500 company quarterly earnings results that pushed the S&P 500 up to a 5-3/4 month high Tuesday.

The dollar index (DXY00 -0.13%) is down -0.12%.  EUR/USD (^EURUSD +0.06%) is up +0.04%.  USD/JPY (^USDJPY -0.08%) is down -0.09%.

Sep 10-year T-note prices (ZNU18 +0-015) are up +1 tick.

The German Jul IFO business climate fell -0.1 to 101.7, stronger than expectations of -0.3 to 101.5.

The Eurozone Jun M3 money supply rose +4.4% y/y, stronger than expectations of +4.0% y/y and the biggest increase in 5 months.

UK Jul CBI retailing reported sales fell -12 to 20, stronger than expectations of -17 to 15.



*U.S. Stock Preview*

Key U.S. news today includes: (1) weekly MBA mortgage applications (previous -2.5% to 363.6 with purchase sub-index down -5.2% to 247.9 and refi sub-index up +2.2% to 979.6), (2) Jun new home sales (expected -3.0% to 669,000, May +6.7% to 689,000), (3) EIA weekly Petroleum Status Report, (4) Treasury auctions $18 billion of 2-year floating-rate notes and $36 billion 5-year T-notes.

Notable S&P 500 earnings reports today include: Facebook (consensus $1.71), Visa (1.09), UPS (1.93), GM (1.77), Coca-Cola (0.60), Boeing (3.25), AMD (0.13), PayPal (0.57), Ford (0.31).

U.S. IPO's scheduled to price today: Focus Financial Partners (FOCS), Liquidia Technologies (LQDA), Berry Petroleum Corp (BRRP), Cango Inc (CANG), Aurora Mobile (JG), Tenable Holdings (TENB), Aquestive Therapeutics (AQST), Pinduoduo (PDD).

Equity conferences during the remainder of this week: Google Cloud Next 18 on Tue-Thu


*Overnight U.S. Stock Movers*

Fiat Chrysler Automobiles NV (FCAU +1.58%) dropped 4% in pre-market trading after it reported Q2 adjusted Ebit of 1.66 billion euros, below consensus of 2.02 billion euros.

NXP Semiconductos NV (NXPI -4.22%) is down nearly 2% in pre-market trading after Reuters reported that Qualcomm is unlikely to get Chinese approval on its acquisition of NXP Semiconductors and is making preparartions to pay NXPI the $2 billion termination fee.

Lululemon Athletica (LULU -1.91%) gained 1% in after-hours trading after it named Calvin McDonald, former top executive of Sephora, as CEO effective August 20.

iRobot (IRBT -2.81%) surged almost 20% in after-hours trading after it reported Q2 revenue of $226.3 million, higher than consensus of $220.4 million.

Stryker (SYK -1.01%) fell 2% in after-hours trading after it forecast Q3 adjusted EPS of $1.65 to $1.70, the midpoint below consensus of $1.69.

IDEX (IEX +1.56%) rose 3% in after-hours trading after it reported Q2 adjusted EPS of $1.40, above consensus of $1.31, and then forecast full-year adjusted EPS of $5.27 to $5.35, higher than consensus of $5.18.

MKS Instruments (MKSI -2.49%) fell 4% in after-hours trading after it forecast Q3 sales of $470 million to $510 million, weaker than consensus of $522.5 million.

USANA Health Sciences (USNA -0.77%) jumped almost 12% in after-hours trading after it reported Q2 EPS of $1.36, higher than consensus of $1.11, and then forecast full-year EPS of $4.75 to $5.05, the midpoint well above consensus of $4.56.

Texas Instruments (TXN -0.76%) gained almost 1% in after-hours trading after it reported Q1 revenue of $4.02 billion, better than consensus of $3.97 billion, and then forecast Q3 revenue of $4.11 billion to $4.45 billion, the midpoint above consensus of $4.25 billion.

Robert Half International (RHI -0.12%) rose almost 5% in after-hours trading after it forecast Q3 income/share of 88 cents to 94 cents, higher than consensus of 87 cents.

Vicor (VICR -1.19%) climbed more than 8% in after-hours trading after it reported Q2 bookings increased to $87.4 million from $59.4 million y/y.

Radius Health (RDUS -2.36%) lost almost 6% in after-hours trading it said the CHMP panel of the European Medicines Agency will maintain its negative opinion at its formal final vote of its abaloparatide-SC for treatment of osteoporosis in postmenopausal women.

Knowles (KN +0.26%) rose more than 5% in after-hours trading after it reported Q2 adjusted EPS of 18 cents, better than consensus of 13 cents, and then forecast Q3 adjusted EPS of 27 cents to 33 cents, the mid-point above consensus of 29 cents.

Navient (NAVI +0.28%) dropped 7% in after-hours trading after it reported Q2 GAAP net income of $83 million versus $112 million y/y.

ViewRay (VRAY -3.24%) rallied 7% in after-hours trading after it reported Q2 revenue of $16 million, higher than consensus of $12.5 million.




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