Friday, August 17, 2018

08/17/2018 - **Overnight Markets and News**

**Overnight Markets and News**

*Sep E-mini S&Ps (ESU18 -0.11%) this morning are down -0.09% and European stocks are down -0.10% as losses in technology stocks weigh on the overall market.  Nvidia is down almost 4% in pre-market trading and Applied Materials dropped nearly 6% after both companies gave disappointing guidance on future earnings.  Another negative is the 5% decline in the Turkish lira which resumed its slide after a three-day pause.  The lira came under pressure after U.S. Treasury Secretary Mnuchin urged Turkey to release American pastor Brunson or face additional sanctions.  Turkish financial markets are closed next week for a public holiday.  Asian stocks settled mixed: Japan +0.35%, Hong Kong +0.42%, China -1.34%, Taiwan +0.07%, Australia +0.17%, Singapore -0.08%, South Korea +0.11%, India +0.75%.  China's Shanghai Composite fell to a new 2-1/3 year low after President Trump prodded China to offer more at the bargaining table as the two countries prepare for trade talks for the first time in more than two months.  The yuan strengthened against the dollar after the New York Times reported the U.S. will seek to pressure China to lift the value of the yuan in coming trade talks.

*The dollar index (DXY00 -0.19%) is down -0.15%.  EUR/USD (^EURUSD +0.16%) is up +0.11%.  USD/JPY (^USDJPY -0.38%) is down -0.33%. 

*Sep 10-year T-note prices (ZNU18 +0-055) are up +5.5 ticks.

*The Eurozone Jun current account balance shrank to a surplus of +23.5 billion euros from an upward revised +24.4 billion euros in May, the smallest surplus in 14-months.


**U.S. Stock Preview**

*Key U.S. news today includes: (1) Jul leading indicators (expected +0.4%, Jun +0.5%), (2) preliminary-Aug University of Michigan U.S. consumer sentiment (expected +0.1 to 98.0, Jul -0.3 to 97.9).

*Notable Russell 2000 earnings reports today include: Deere & Co (consensus $2.74).

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

*Equity conferences during the remainder of this week: none.


**Overnight U.S. Stock Movers**

*Nvidia (NVDA -0.63%) dropped nearly 4% in pre-market trading after it reported Q2 revenue for cryptocurrency-specific products was only $18 million, well below its guidance of about $100 million, and then the CFO said, "we are now projecting no contributions from cryptocurrency going forward."

*Applied Materials (AMAT -0.17%) slid almost 6% in pre0market trading after it forecast Q4 net sales of $3.85 billion to $4.15 billion, weaker than consensus of $4.45 billion.

*Micron Technology (MU -0.82%) lost 1% in pre-market trading after it was named in a class-action suit in the U.S. over alleged antitrust violations from 2016-2018 in the DRAM chip market.

*Fluor (FLR +1.16%) was upgraded to 'Buy' from 'Hold' at Canaccord Genuity with a price target of $63.

*Nordstrom (JWN +0.81%) rallied over 10% in after-hours trading after it reported Q2 total comparable sales rose +4.0%, well above expectations of +1.1%, and then raised its full-year comparable sales view to up +1.5% to +2.0% from a prior view of +0.5% to +1.5%.

*Walmart (WMT +9.33%) was downgraded to 'Outperform' from 'Strong Buy' at Raymond James.

*Dean Foods (DF +0.93%) was downgraded to 'Underweight' from 'Neutral' at JPMorgan Chase with  a price target of $6.

*Adtalem Global Education (ATGE -0.54%) dropped almost 7% in after-hours trading after it reported Q4 revenue of $319.8 million, well below consensus of $352.7 million,

*Adecoagro (AGRO +0.12%) may move higher initially this morning after it reported Q2 adjusted Ebitda of $137 million, well above consensus of $58.6 million.

*Zoes's Kitchen (ZOES +0.74%) fell almost 4% in after-hours trading after it postponed the release of its Q2 earnings until Friday.

*Boxlight (BOXL -1.21%) gained 4% in after-hours trading after it reported Q2 revenue jumped +61% y/y to $9.7 million, better than consensus of $6.5 million.

*Accuray (ARAY +1.44%) jumped nearly 8% in after-hours trading after it forecast full-year revenue of $415 million to $425 million, stronger than consensus of $411.2 million.


**Market Comments**

*Sep S&P 500 E-minis (ESU18 -0.11%) this morning are down -2.50 points (-0.09%).  Thursday's closes: S&P 500 +0.79%, Dow Jones +1.58%, Nasdaq 100 +0.27%.  The S&P 500 on Thursday closed higher on a possible easing of China/U.S. trade tensions after the countries agreed to meet for trade talks in Washington later this month.  The broad stock market was also supported by strength in retail stocks led by a +9% jump in Walmart after it reported better-than-expected Q2 earnings and boosted its full-year sales and earnings estimates.

*Sep 10-year T-notes (ZNU18 +0-055) this morning are up +5.5 ticks.  Thursday's closes: TYU8 -5.50, FVU8 -3.75.  Sep 10-year T-notes on Thursday closed lower on the the rally in stocks that curbed safe-haven demand for T-notes after China and the U.S. agreed to meet for trade talks later this month.  T-notes were also undercut by the unexpected decline in U.S. weekly jobless claims of -2,000 to 212,000 versus expectations of +2,000 to 215,000.

*The dollar index (DXY00 -0.19%) this morning is down -0.144 (-0.15%).  EUR/USD (^EURUSD +0.16%) is up +0.0012 (+0.11%).  USD/JPY (^USDJPY -0.38%) is down -0.37 (-0.33%).  Thursday's closes: Dollar Index -0.051 (-0.05%), EUR/USD +0.0032 (+0.28%), USD/JPY +0.16 (+0.14%).  The dollar index on Thursday closed lower on reduced China/U.S. trade tensions that boosted the yuan against the dollar and on strength in the Turkish lira that gained for a third day against the dollar.  The dollar was also undercut by the weaker-than-expected U.S. economic data on July housing starts and Aug Philadelphia Fed business outlook survey.

*Metals this morning are mixed with Dec gold (GCZ18 unch) +0.3 (+0.03%), Sep silver (SIU18 -0.60%) -0.058 (-0.39%) and Sep copper (HGU18 -0.17%) +0.002 (+0.06%).  Thursday's closes: Dec gold -1.0 (-0.08%), Sep silver +0.259 (+1.79%), Sep copper +0.0565 (+2.21%).  Metals on Thursday settled mixed with Dec gold at a 1-1/2 year low.  Metals prices were boosted by a weaker dollar and by reduced China/U.S. trade tensions that bolstered short-covering in metals after the countries agreed to meet for trade talks later this month.  Gold prices fell on continued fund selling as long positions in ETFs fell to a 7-1/4 month low.

*Sep WTI crude oil (CLU18 +0.55%) this morning is up +39 cents (+0.60%).  Sep gasoline (RBU18 +0.40%) is +1.09 (+0.55%).  Thursday's closes: Sep crude oil +0.45 (+0.69%), Sep gasoline -1.00 (-0.50%).  Sep crude oil and gasoline on Thursday settled mixed with Sep gasoline at a 4-1/4 month nearest-futures low.  Crude oil prices were undercut by negative carry-over from Wednesday's EIA data that showed U.S. crude inventories unexpectedly rose +6.81 million bbl.  Crude oil prices were also undercut by reduced crude oil demand by Japan, the world's third-largest economy, after Japan's MOF reported Japan July crude imports fell -10.2% y/y to 14.3 million kilos. 




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