**Overnight Markets and News**
*Sep S&P 500 E-minis (ESU18 -0.21%) this morning are slighter lower on trade woes. The market is waiting to see whether Canada will agree to a revised NAFTA deal by today's U.S.-imposed deadline. President Trump on Thursday said, "Canada's going to make a deal at some point. It may be by Friday or it may be within a period of time, but ultimately they have no choice. I think we're close to a deal."
*On trade, the markets are also concerned about yesterday's reports that President Trump may move ahead with his plan for tariffs on another $200 billion of Chinese goods late next week when the public comment period ends on Thursday (Sep 6). Europe became a new source of concern on trade after President Trump seemed to reject Europe's reported offer to cut tariffs to zero on industrial products including autos. President Trump said in a Bloomberg interview on Thursday that Europe is "almost as bad as China, just smaller," suggesting that Mr. Trump may be close to ending his trade truce with Europe and reinstating his threat for 25% tariffs on European autos. A European automaker stock index is sharply lower by -1.7% this morning. The Eurostoxx 50 index this morning is down by -0.85%.
*Asian stocks today closed lower nearly across the board on US/Chinese trade tensions: Nikkei index -0.02%, Hong Kong -0.98%, China Shanghai Composite -0.46%, Taiwan -0.27%, Australia -0.51%, Singapore -0.38%, South Korea +0.68%, India -0.12%, Turkey -0.66%.
*The Eurozone Aug CPI of +2.0% y/y eased from July's +2.1% was slightly weaker than market expectations of +2.1%. The Aug core CPI of +1.0% y/y eased from July's +1.1% and was weaker than expectations of +1.1%. The report was dovish for ECB policy and led to some weakness in EUR/USD.
*The Eurozone July unemployment rate of 8.2% was at a 10-year low, illustrating an improved Eurozone labor market.
*The Turkish lira is up +1.2% against the dollar after the Turkish officials raised the tax on dollar deposits, making it less attractive to hold dollars and more attractive to hold lira.
**U.S. Stock Preview**
*Key U.S. news today includes: (1) Aug Chicago PMI (expected -2.5 to 63.0, Jul +1.4 to 65.5), (2) revised-Aug University of Michigan U.S. consumer sentiment index (expected +0.2 to 95.5, prelim-Aug -2.6 to 95.3).
*Notable Russell 2000 earnings reports today include: none.
*U.S. IPO's scheduled to price today: none.
*Equity conferences during the remainder of this week: none.
**Overnight U.S. Stock Movers**
*Ulta Beauty (ULTA +1.11%) dropped 6% in after-hours trading after it reported Q2 comparable sales rose +6.5%, below consensus of +6.9%, and then forecast Q3 EPS of $2.11 to $2.16, weaker than consensus of $2.31.
*Lululemon Athletica (LULU -1.23%) jumped more than 8% in after-hours trading after it reported Q2 adjusted EPS of 71 cents, better than consensus of 49 cents, and then forecast full-year EPS of $3.45 to $3.53, well above consensus of $3.25.
*Cooper Cos (COO -0.72%) declined nearly 4% in after-hours trading after it reported Q3 adjusted EPS of $3.00, below consensus of $3.07, and then forecast full-year adjusted EPS of $11.55 to $11.65, weaker than consensus of $11.81.
*Nutanix (NTNX -0.51%) fell more than 4% in after-hours trading after it forecast a Q1 adjusted loss per share of -26 cents to -28 cents, wider than consensus of -23 cents.
*Ambarella (AMBA -0.80%) slumped more than 12% in after-hours trading after it forecast Q3 revenue of $55.5 million to $58.5 million, well below consensus of $73.4 million.
*Zuora (ZUO +1.83%) slid 6% in after-hours trading after it forecast a Q3 adjusted loss per share of -13 cents to -14 cents, wider than consensus of -12 cents.
*Yext Inc (YEXT -5.42%) fell 5% in after-hours trading after it reported Q2 gross margins of +74.4%, below consensus of +75.5%.
*American Outdoor Brands (AOBC -3.46%) surged nearly 19% in after-hours trading after it reported Q1 adjusted EPS of 21 cents, well above consensus of 12 cents, and then forecast full-year adjusted EPS of 62 cents to 66 cents, stronger than consensus of 50 cents.
*Spirit Realty Capital (SRC -1.76%) dropped 5% in after-hours trading after it unexpectedly cut its quarterly cash dividend to 12.5 cents per share from 18 cents a share.
*A10 Networks (ATEN +0.43%) climbed 3% in after-hours trading after it reported Q2 revenue of $60.7 million, higher than consensus of $58.9 million.
*MEI Pharma (MEIP +5.65%) tumbled 14% in after-hours trading after it reported a fiscal 2018 loss of -97 cents a share, wider than consensus of -73 cents.
**Market Comments**
*Sep S&P 500 E-minis (ESU18 -0.21%) this morning are slighter lower on trade woes. Thursday's closes: S&P 500 -0.44%, Dow Jones -0.53%, Nasdaq 100 -0.23%. The S&P 500 on Thursday closed lower on concern about the escalation of Chinese trade tensions with the U.S. set to impose 25% tariffs on $200 billion of Chinese imports as soon as Sep 6. There was also negative carry-over from a slide in European stocks after Eurozone Aug economic confidence fell -0.5 to a 1-year low of 111.6. Stocks were also undercut by the +0.3% increase in U.S. Jul personal income, weaker than expectations of +0.4%. Energy stocks were supported by the +1.05% rally in crude oil prices to a 1-month high.
*Dec 10-year T-notes are up +4 ticks this morning on Chinese and European trade tensions. Thursday's closes: TYU8 +6.00, FVU8 +3.75. Dec 10-year T-notes on Thursday closed higher on carry-over support from a rally in German bunds after Eurozone Aug economic confidence fell to a 1-year low and German Aug CPI rose less than expected. T-notes were also supported by weakness in stocks, which boosted safe-haven demand for T-notes.
*The dollar index this morning is slightly lower by -0.05%. EUR/USD is down -0.0010 (-0.09%) on today's weak Eurozone CPI report. USD/JPY is down -0.17% as the yen is seeing some safe-haven demand on revived trade tensions. Thursday's closes: Dollar Index +0.123 (+0.13%), EUR/USD -0.0036 (-0.31%), USD/JPY -0.70 (-0.63%). The dollar index on Thursday closed higher on the as-expected +0.4% increase in U.S. Jul personal spending, which was hawkish for Fed policy. The dollar was also supported by weakness in EUR/USD on news that the Eurozone Aug economic confidence index fell -0.5 to a 1-year low of 111.6 and that the German Aug CPI (EU harmonized) rose +1.9% y/y, weaker than expectations of +2.1% y/y.
*Metals prices are mixed with Dec gold up +7.7 (+0.64%), Dec silver up +0.121 (+0.83%), and Dec copper down -0.009 (-0.33%). Precious metals are seeing support from the slightly lower dollar, while copper is lower on trade woes. Thursday's closes: Dec gold -6.5 (-0.54%), Dec silver -0.216 (-1.46%), Dec copper -0.0190 (-0.69%). Metals on Thursday closed lower with Dec silver at a 2-week low. Metals prices were undercut by a stronger dollar and by weakness in the yuan which fell to a 4-session low against the dollar on U.S./China trade tensions and concern that industrial metals demand will suffer from reduced trade.
*Oct WTI crude oil prices this morning (CLV18 -0.34%) are down -0.46 (-0.65%) and Oct gasoline (RBV18 -0.34%) is down -0.0102 (-0.51%). Thursday's closes: Oct crude oil +0.74 (+1.05%), Oct gasoline +0.92 (+0.46%). Oct crude oil and gasoline on Thursday rose to 1-month highs and closed higher. Crude oil prices were boosted by carry-over support from Wednesday's EIA data that showed a -2.57 million bbl decline in EIA crude inventories (vs expectations of -1.5 million bbl) and the -1.55 million bbl drop in EIA gasoline supplies (vs expectations of unchanged). Crude oil prices were also undercut by increased geopolitical risks on bellicose comments from Iran which said it will block Middle East oil exports from going through the Strait of Hormuz if it is not able to export its own crude.
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"!!
*Sep S&P 500 E-minis (ESU18 -0.21%) this morning are slighter lower on trade woes. The market is waiting to see whether Canada will agree to a revised NAFTA deal by today's U.S.-imposed deadline. President Trump on Thursday said, "Canada's going to make a deal at some point. It may be by Friday or it may be within a period of time, but ultimately they have no choice. I think we're close to a deal."
*On trade, the markets are also concerned about yesterday's reports that President Trump may move ahead with his plan for tariffs on another $200 billion of Chinese goods late next week when the public comment period ends on Thursday (Sep 6). Europe became a new source of concern on trade after President Trump seemed to reject Europe's reported offer to cut tariffs to zero on industrial products including autos. President Trump said in a Bloomberg interview on Thursday that Europe is "almost as bad as China, just smaller," suggesting that Mr. Trump may be close to ending his trade truce with Europe and reinstating his threat for 25% tariffs on European autos. A European automaker stock index is sharply lower by -1.7% this morning. The Eurostoxx 50 index this morning is down by -0.85%.
*Asian stocks today closed lower nearly across the board on US/Chinese trade tensions: Nikkei index -0.02%, Hong Kong -0.98%, China Shanghai Composite -0.46%, Taiwan -0.27%, Australia -0.51%, Singapore -0.38%, South Korea +0.68%, India -0.12%, Turkey -0.66%.
*The Eurozone Aug CPI of +2.0% y/y eased from July's +2.1% was slightly weaker than market expectations of +2.1%. The Aug core CPI of +1.0% y/y eased from July's +1.1% and was weaker than expectations of +1.1%. The report was dovish for ECB policy and led to some weakness in EUR/USD.
*The Eurozone July unemployment rate of 8.2% was at a 10-year low, illustrating an improved Eurozone labor market.
*The Turkish lira is up +1.2% against the dollar after the Turkish officials raised the tax on dollar deposits, making it less attractive to hold dollars and more attractive to hold lira.
**U.S. Stock Preview**
*Key U.S. news today includes: (1) Aug Chicago PMI (expected -2.5 to 63.0, Jul +1.4 to 65.5), (2) revised-Aug University of Michigan U.S. consumer sentiment index (expected +0.2 to 95.5, prelim-Aug -2.6 to 95.3).
*Notable Russell 2000 earnings reports today include: none.
*U.S. IPO's scheduled to price today: none.
*Equity conferences during the remainder of this week: none.
**Overnight U.S. Stock Movers**
*Ulta Beauty (ULTA +1.11%) dropped 6% in after-hours trading after it reported Q2 comparable sales rose +6.5%, below consensus of +6.9%, and then forecast Q3 EPS of $2.11 to $2.16, weaker than consensus of $2.31.
*Lululemon Athletica (LULU -1.23%) jumped more than 8% in after-hours trading after it reported Q2 adjusted EPS of 71 cents, better than consensus of 49 cents, and then forecast full-year EPS of $3.45 to $3.53, well above consensus of $3.25.
*Cooper Cos (COO -0.72%) declined nearly 4% in after-hours trading after it reported Q3 adjusted EPS of $3.00, below consensus of $3.07, and then forecast full-year adjusted EPS of $11.55 to $11.65, weaker than consensus of $11.81.
*Nutanix (NTNX -0.51%) fell more than 4% in after-hours trading after it forecast a Q1 adjusted loss per share of -26 cents to -28 cents, wider than consensus of -23 cents.
*Ambarella (AMBA -0.80%) slumped more than 12% in after-hours trading after it forecast Q3 revenue of $55.5 million to $58.5 million, well below consensus of $73.4 million.
*Zuora (ZUO +1.83%) slid 6% in after-hours trading after it forecast a Q3 adjusted loss per share of -13 cents to -14 cents, wider than consensus of -12 cents.
*Yext Inc (YEXT -5.42%) fell 5% in after-hours trading after it reported Q2 gross margins of +74.4%, below consensus of +75.5%.
*American Outdoor Brands (AOBC -3.46%) surged nearly 19% in after-hours trading after it reported Q1 adjusted EPS of 21 cents, well above consensus of 12 cents, and then forecast full-year adjusted EPS of 62 cents to 66 cents, stronger than consensus of 50 cents.
*Spirit Realty Capital (SRC -1.76%) dropped 5% in after-hours trading after it unexpectedly cut its quarterly cash dividend to 12.5 cents per share from 18 cents a share.
*A10 Networks (ATEN +0.43%) climbed 3% in after-hours trading after it reported Q2 revenue of $60.7 million, higher than consensus of $58.9 million.
*MEI Pharma (MEIP +5.65%) tumbled 14% in after-hours trading after it reported a fiscal 2018 loss of -97 cents a share, wider than consensus of -73 cents.
**Market Comments**
*Sep S&P 500 E-minis (ESU18 -0.21%) this morning are slighter lower on trade woes. Thursday's closes: S&P 500 -0.44%, Dow Jones -0.53%, Nasdaq 100 -0.23%. The S&P 500 on Thursday closed lower on concern about the escalation of Chinese trade tensions with the U.S. set to impose 25% tariffs on $200 billion of Chinese imports as soon as Sep 6. There was also negative carry-over from a slide in European stocks after Eurozone Aug economic confidence fell -0.5 to a 1-year low of 111.6. Stocks were also undercut by the +0.3% increase in U.S. Jul personal income, weaker than expectations of +0.4%. Energy stocks were supported by the +1.05% rally in crude oil prices to a 1-month high.
*Dec 10-year T-notes are up +4 ticks this morning on Chinese and European trade tensions. Thursday's closes: TYU8 +6.00, FVU8 +3.75. Dec 10-year T-notes on Thursday closed higher on carry-over support from a rally in German bunds after Eurozone Aug economic confidence fell to a 1-year low and German Aug CPI rose less than expected. T-notes were also supported by weakness in stocks, which boosted safe-haven demand for T-notes.
*The dollar index this morning is slightly lower by -0.05%. EUR/USD is down -0.0010 (-0.09%) on today's weak Eurozone CPI report. USD/JPY is down -0.17% as the yen is seeing some safe-haven demand on revived trade tensions. Thursday's closes: Dollar Index +0.123 (+0.13%), EUR/USD -0.0036 (-0.31%), USD/JPY -0.70 (-0.63%). The dollar index on Thursday closed higher on the as-expected +0.4% increase in U.S. Jul personal spending, which was hawkish for Fed policy. The dollar was also supported by weakness in EUR/USD on news that the Eurozone Aug economic confidence index fell -0.5 to a 1-year low of 111.6 and that the German Aug CPI (EU harmonized) rose +1.9% y/y, weaker than expectations of +2.1% y/y.
*Metals prices are mixed with Dec gold up +7.7 (+0.64%), Dec silver up +0.121 (+0.83%), and Dec copper down -0.009 (-0.33%). Precious metals are seeing support from the slightly lower dollar, while copper is lower on trade woes. Thursday's closes: Dec gold -6.5 (-0.54%), Dec silver -0.216 (-1.46%), Dec copper -0.0190 (-0.69%). Metals on Thursday closed lower with Dec silver at a 2-week low. Metals prices were undercut by a stronger dollar and by weakness in the yuan which fell to a 4-session low against the dollar on U.S./China trade tensions and concern that industrial metals demand will suffer from reduced trade.
*Oct WTI crude oil prices this morning (CLV18 -0.34%) are down -0.46 (-0.65%) and Oct gasoline (RBV18 -0.34%) is down -0.0102 (-0.51%). Thursday's closes: Oct crude oil +0.74 (+1.05%), Oct gasoline +0.92 (+0.46%). Oct crude oil and gasoline on Thursday rose to 1-month highs and closed higher. Crude oil prices were boosted by carry-over support from Wednesday's EIA data that showed a -2.57 million bbl decline in EIA crude inventories (vs expectations of -1.5 million bbl) and the -1.55 million bbl drop in EIA gasoline supplies (vs expectations of unchanged). Crude oil prices were also undercut by increased geopolitical risks on bellicose comments from Iran which said it will block Middle East oil exports from going through the Strait of Hormuz if it is not able to export its own crude.
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