**Overnight Markets and News**
*Sep E-mini S&Ps (ESU18 +0.46%) this morning are up +0.57% and European stocks are up +0.53% on signs of a thaw in China/U.S. trade tensions after China announced that Vice Commerce Minister Shouwen will lead a delegation to the U.S. later this month for trade talks. Also, a 6% jump in Walmart in pre-market trading is giving the overall market a lift after Walmart raised its full-year earnings forecast. Another positive for stocks is the rally in the Turkish lira by more than 2% against the dollar, its third day of gains. Asian stocks settled lower: Japan -0.05%, Hong Kong -0.82%, China -0.66%, Taiwan -0.31%, Australia -0.01%, Singapore -0.69%, South Korea -0.98%, India -0.50%. Asian equity markets were undercut by losses in technology stocks, led by a 5% decline in Chinese tech giant Tencent Holdings, which sent the Shanghai Composite down to its lowest in 2-1/3 years. Tencent sold-off after it reported its first profit decline in more than a decade.
*The dollar index (DXY00 -0.12%) is down -0.06%. EUR/USD (^EURUSD +0.25%) is up +0.24%. USD/JPY (^USDJPY +0.13%) is up +0.14%.
*Sep 10-year T-note prices (ZNU18 -0-060) are down -8.5 ticks.
*China Jul foreign direct investment rose +14.9% y/y, the largest increase in 8 months.
*UK Jul retail sales ex auto fuel rose +0.9% m/m, stronger than expectations of no change. Jul retail sales including auto fuel rose +0.7% m/m, stronger than expectations of +0.2% m/m.
*The Japan Jul trade balance was in deficit by -231.2 billion yen, wider than expectations of -41.2 billion yen. Jul exports rose +3.9% y/y, weaker than expectations of +6.3% y/y. Jul imports rose +14.6% y/y, stronger than expectations of +14.2% y/y and the largest increase in 5-months.
**U.S. Stock Preview**
*Key U.S. news today includes: (1) weekly initial unemployment claims (expected +2,000 to 215,000, previous -6,000 to 213,000) and continuing claims (expected -15,000 to 1.740 million, previous +29,000 to 1.755 million), (2) Aug Philadelphia Fed business outlook survey general conditions index (expected -3.7 to 22.0, Jul +5.8 to 25.7), (3) Jul housing starts (expected +7.4% to 1.260 million, Jun -12.3% to 1.173 million), (4) USDA weekly Export Sales, (5) Treasury announces amount of 5-year TIPS to be auctioned Aug 23.
*Notable Russell 2000 earnings reports today include: Walmart (consensus $1.22), Nordstrom (0.85), Applied Materials (1.17), NVIDIA (1.85), Williams-Sonoma (0.68), Madison-Square Garden (-2.00).
*U.S. IPO's scheduled to price today: none.
*Equity conferences during the remainder of this week: D&H Technology Conference 2018 on Thu.
**Overnight U.S. Stock Movers**
*Walmart (WMT -0.69%) jumped more than 6% in pre-market trading after it raised its full=year adjusted EPS forecast es-Flipkart to $4.90 to $5.05 from a February view of $4.75 to $5.00, and said it sees full-year net sales up +2.0% in constant currency from a prior forecast of +1.5%-2.0%
*United Technologies (UTX -0.51%) was rated a new 'Buy' at UBS with a price target of $160.
*Stryker (SYK +0.34%) was rate da new 'Buy' at BTIG with a price target of $187
*Conn's (CONN -4.38%) was rated a new 'Buy' at Jefferies with a price target of $44.
*Illumina (ILMN -0.71%) lost 2% in after-hours trading after it said it will offer $650 million convertible senior notes due 2023.
*NetApp (NTAP -0.35%) gained more than 1% in after-hours trading after it reported Q1 adjusted EPS of $1.04, well above consensus of 80 cents, and then forecast Q2 adjusted EPS of 94 cents to $1.00, the midpoint right on consensus of 97 cents.
*Cisco Systems (CSCO -0.32%) climbed more than 5% in after-hours trading after it forecast Q1 revenue would gain 5% to 7%, higher than consensus of +3.7%.
*Healthcare Realty Trust (HR +2.01%) was downgraded to 'Equal-Weight' from 'Overweight' at Morgan Stanley with a price target of $28.
*Global Net Lease (GNL +0.05%) lost nearly 4% in after-hours trading after it announced the launch of an underwritten public offering of 4 million shares of its common stock.
*Briggs & Stratton (BGG -0.70%) rose almost 4% in after-hours trading after it reported Q4 net sales of $502 million, better than consensus of $495.7 million.
*SpartanNash (SPTN -1.00%) tumbled nearly 10% in after-hours trading after it reported Q2 adjusted EPS from continuing operations of 50 cents, below consensus of 56 cents, and then forecast full-year adjusted EPS from continuing operations of $1.96 to $2.08, weaker than consensus of $2.25.
*Lifevantage (LFVN -5.42%) jumped 6% in after-hours trading after it reported Q4 revenue of $54 million, up +7% y/y, and said that Q4 adjusted Ebitda increased 59% y/y to $5.2 million.
*HTG Molecular Diagnostics (HTGM -1.49%) climbed almost 5% in after-hours trading after it delivered its first orders of its HTG EdgeSeq Precision Immuno-Oncology Panel.
**Market Comments**
*Sep S&P 500 E-minis (ESU18 +0.46%) this morning are up +16.00 points (+0.57%). Wednesday's closes: S&P 500 -0.76%, Dow Jones -0.54%, Nasdaq 100 -1.24%. The S&P 500 on Wednesday sold off to a 1-1/2 week low and closed lower on negative carry-over from a slide in European and Chinese stocks on concern that the financial turmoil in Turkey and China/U.S. trade tensions will derail economic growth. There was also weakness in mining stocks and raw-material producers after copper prices fell -4.55% to a 13-3/4 month low. Energy stocks were undercut by the -3.03% drop in crude oil prices to a 1-3/4 month low. Stocks found support on the positive U.S. Jul retail sales report of +0.5% and +0.6% ex autos, stronger than expectations of +0.1% and +0.3% ex autos.
*Sep 10-year T-notes (ZNU18 -0-060) this morning are down -8.5 ticks. Wednesday's closes: TYU8 +10.50, FVU8 +6.00. Sep 10-year T-notes on Wednesday rose to a 1-1/4 month high and closed higher on the the slump in the S&P 500 to a 1-1/2 week low and on the unexpected -0.9% decline in U.S. Q2 unit labor costs, weaker than expectations of unch and the biggest decline in 3-1/2 years. T-note prices were also supported by a decline in inflation expectations after the 10-year T-note breakeven inflation rate fell to a 3-week low.
*The dollar index (DXY00 -0.12%) this morning is down -0.058 (-0.06%). EUR/USD (^EURUSD +0.25%) is up +0.0027 (+0.24%). USD/JPY (^USDJPY +0.13%) is up +0.16 (+0.14%). Wednesday's closes: Dollar Index -0.035 (-0.04%), EUR/USD +0.0001 (+0.01%), USD/JPY -0.41 (-0.37%). The dollar index on Wednesday rose to a new 13-1/2 month high but fell back and closed little changed. The dollar was undercut by the decline in the 10-year T-note yield to a 3-week low, which reduced the dollar's interest rate differentials, and by Qatar's promise to invest $15 billion in Turkey, which pushed the Turkish real up more than 5% against the dollar. The dollar found support on the much stronger than expected U.S. Jul retail sales report of +0.5%, which bolsters the case for Fed tightening.
*Metals this morning are higher with Dec gold (GCZ18 +0.24%) +1.2 (+0.10%), Sep silver (SIU18 +1.15%) +0.136 (+0.94%) and Sep copper (HGU18 +1.76%) +0.049 (+1.91%). Wednesday's closes: Dec gold -15.7 (-1.31%), Sep silver -0.599 (-3.98%), Sep copper -0.1220 (-4.55%). Metals on Wednesday sold off with Dec gold at a 1-1/2 year low, Sep silver at a 2-1/2 year low and Sep copper at a 13-3/4 month low. Metals prices were undercut by the rally in the dollar index to a 13-1/2 month high and by concern the financial turmoil in Turkey and the ongoing China/U.S. trade spat will lead to slower global growth and weaker industrial metals demand. Copper prices were undercut by news that LME copper inventories rose +2,755 MT to a 4-week high of 257,635.
*Sep WTI crude oil (CLU18 +0.20%) this morning is up +5 cents (+0.08%). Sep gasoline (RBU18 -0.45%) is -1.07 cents (-0.54%). Wednesday's closes: Sep crude oil -2.03 (-3.03%), Sep gasoline -3.67 (-1.80%). Sep crude oil and gasoline on Wednesday sold off sharply with Sep crude at a 1-3/4 month low. Crude oil prices were undercut by the rally in the dollar index to a 13-1/2 month high and by the unexpected +6.81 million bbl increase in EIA crude inventories (more than expectations for a -2.5 million bbl draw).
General Advice Disclosure: Please note that the advice contained herein is general advice and is for the purposes of education only. The risk of loss in trading futures contracts, commodity options, stocks, stock options and forex currencies can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results. You are reminded that past performance is no guarantee or reliable indication of future results. It has not been prepared taking into account your particular investment objectives, financial situation and particular needs.You should therefore assess whether the advice is appropriate to your individual investment objectives, financial situation and particular needs. You should do this before making an investment decision based on this general advice. You can either make the assessment yourself or seek the help of a professional adviser. This commentary is not a recommendation to buy or sell, but rather a guideline to interpreting the specified indicators. This information should only be used by investors who are aware of the risk inherent in securities trading. The Vulcan Report accepts no liability whatsoever for any loss arising from any use of this expert or its contents.liability whatsoever for any loss arising from any use of this expert or its contents. For Related news and other stories please visit - http://www.wideawakenews.com/ For Related videos on our Youtube channel please visit - http://www.youtube.com/user/pulsescan72 Be Sure to register for faster updates and commentaries at - BLOG 1: - http://pulsescan.blogspot.com/ BLOG 2: - http://seekingalpha.com/instablog/466159-pulsescan72/ BULLS make money... BEARS make money.... PIGS get slaughtered! "TAKE WHAT YOU CAN .........GIVE NOTHING BACK"!!
No comments:
Post a Comment