Wednesday, September 5, 2018

09/05/2018 - **Overnight Markets and News**

**Overnight Markets and News**

*Sep E-mini S&Ps (ESU18 -0.27%) this morning are down -0.22% at a 1-week low and European stocks are down -0.62% at a 4-month low on concern about contagion from weakness in emerging markets.  The Indonesian rupiah, Mexican peso, Turkish lira and South African rand all sold-off and raised concerns that their slumping currencies could lead to higher corporate borrowing costs in their economies that chokes off economic growth.  Emerging market currencies remain under pressure after Tuesday's stronger-than-expected U.S. Aug ISM manufacturing report boosted the odds of additional Fed rate hikes and strengthened the dollar.  Energy stocks are weaker as well with Oct WTI crude oil (CLV18 -1.22%) down -1.36% after Tropical Storm Gordon pushed inland and did little damage to U.S. Gulf Coast oil installations.  Asian stocks settled lower: Japan -0.51%, Hong Kong -2.61%, China-1.68%, Taiwan -0.24%, Australia -1.00%, Singapore -1.69%, South Korea -1.29%, India -0.37%.   Asian stock markets moved lower due to wider turmoil in emerging markets and possible escalation of U.S./China trade tensions with the U.S. set to go ahead with tariffs on another $200 billion of Chinese goods.  Japan's Nikkei Stock Index fell to a 1-week low on trade worries after data from the U.S. Aug ISM manufacturing index showed U.S. export orders fell to a 10-month low in Aug and imports dropped to their lowest in 11-months, a sign that trade tensions are taking a toll on trade.

*The dollar index (DXY00 +0.03%) is down -0.04%.  EUR/USD (^EURUSD +0.03%) is up +0.09%.  USD/JPY (^USDJPY +0.22%) is up +0.16%. 

*Dec 10-year T-note prices (ZNZ18 +0-035) are up +1.5 ticks.

*Eurozone Jul retail sales fell -0.2% m/m, weaker than expectations of -0.1% m/m.

*The Eurozone Aug Markit composite PMI was revised upward to 54.5 from 54.4.

*The German Aug Markit services PMI was revised downward to 55.0 from 55.2, still the strongest pace of expansion in 6-months.

*The UK Aug Markit/CIPS services PMI rose +0.8 to 54.3, stronger than expectations of +0.4 to 53.9.

*The China Aug Caixin services PMI fell -1.3 to 51.5, weaker than expectations of -0.2 to 52.6 and the slowest pace of expansion in 10-months.



**U.S. Stock Preview**

*Key U.S. news today includes: (1) weekly MBA mortgage applications (previous -1.7% to 344.0 with purchase sub-index -0.9% to 230.1 and refi sub-index -3.0% to 952.9), (2) Jul trade balance (expected -$50.2 billion, Jun -$46.3 billion), (3) St. Louis Fed President James Bullard (non-voter) speaks at the Real Return XII-Euromoney Conference in New York, (4) Minneapolis Fed President Neel Kashkari (non-voter) speaks at a town hall forum in Bozeman, Montana.

*Notable Russell 2000 earnings reports today include: HD Supply (consensus $0.96), DocuSign (0.01), Guidewire Software (0.76).

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

*Equity conferences during the remainder of this week: Barclays CEO Energy Power Conference on Tue-Wed, Barclays Consumer Staples Conference on Tue-Thu, Baird Global Healthcare Conference on Wed, Cowen Global Transportation Conference on Wed, Buckingham Research Group Consumer Banking, Cards and Payments Conference on Wed, Evercore ISI Real Estate Conference on Wed, Guggenheim Securities Autos Technology Assembly on Wed, Goldman Sachs Global Retailing Conference on Wed-Thu, Keefe, Bruyette, & Woods Insurance Conference on Wed-Thu, UBS Global Chemicals & Paper and Packaging Conferences on Wed-Thu, Wells Fargo Health Care Conference on Wed-Thu, Citi Global Technology Conference on Wed-Fri, Citi Biotech Conference on Thu, Bank of America Merrill Lynch Media, Communications & Entertainment Conference on Thu-Fri, Good Food Conference on Thu-Fri.


**Overnight U.S. Stock Movers**

*Golar LNG Partners LP (GMLP -0.81%) was downgraded to 'Sell' from 'Hold' at DNB Markets with a price target of $11.10.

*CSX Corp (CSX +0.92%) was downgraded to 'Market Perform' from 'Outperform' at BMO Capital Markets.

*Universal Display (OLED +1.72%) was rated a new 'Buy' at Citigroup with a price target of $153.

*Xylem (XYL -0.33%) was rated a new 'Outperform' at Raymond James with a price target of $90.

*Workday (WDAY +1.39%) slid nearly 3% in after-hours trading despite reporting Q2 revenue of $671.7 million, above consensus of $662.8 million.

*RH (RH -4.86%) jumped 6% in after-hours trading after it forecast full-year adjusted EPS of $7.35 to $7.75, well above consensus of $6.72. 

*Coupa Software (COUP +0.40%) jumped 11% in after-hours trading after it reported Q2 revenue of $61.7 million, higher than consensus of $56.6 million, and then forecast Q3 revenue of $62 million to $63 million, stronger than consensus of $58.6 million.

*HealthEquity (HQY +0.28%) lost almost 4% in after-hours trading after it forecast full-year revenue of $279 million to $285 million, the midpoint below consensus of $282.6 million.

*Caleres (CAL -0.30%) dropped more than 10% in after-hours trading after it reported Q2 adjusted EPS of 59 cents, below consensus of 60 cents, and then forecast full-year adjusted EPS of $2.40 to $2.50, the midpoint below consensus of $2.48.

*PetIQ (PETQ +6.13%) fell 4% in after-hours trading after it filed to sell a $100 million mixed securities shelf.

*Agree Realty (ADC -0.82%) slid almost 3% in after-hours trading after it announced that it had commenced an underwritten public offering of 3.5 million shares of its common stock in connection with a forward sale agreement.

*Smartsheet (SMAR +6.63%) rose 4% in after-hours trading after it raised guidance on its full-year revenue estimate to $167 million to $169 million from a June 4 estimate of $159 million to $162 million, stronger than consensus of $161.3 million.

*Tilly's (TLYS +6.89%) fell nearly 5% in after-hours trading after it announced that certain stockholders intend to offer 8.1 million shares of Class A common stock in a registered public offering.

*Sol-Gel Technologies Ltd (SLGL +2.23%) rallied almost 9% in after-hours trading after the FDA approved the company's Phase 3 study for its TWIN drug in the treatment of acne vulgaris.

*Novus Therapeutics (NVUS -3.58%) fell more than 9% in after-hours trading after it announced that it had commenced an underwritten public offering of 6.0 million shares of its common stock.


**Market Comments**

*Sep S&P 500 E-minis (ESU18 -0.27%) this morning are down -6.25 points (-0.22%) at a 1-week low.  Tuesday's closes: S&P 500 -0.17%, Dow Jones -0.05%, Nasdaq 100 -0.42%.  The S&P 500 on Tuesday closed lower on trade tensions as the U.S. could impose tariffs on $200 billion of additional Chinese products as soon as Thursday.  U.S. stocks were also undercut by the slide in European stocks to a 2-month low.  Stocks found support on news that the U.S. Aug ISM manufacturing index rose +2.2 to 61.3, stronger than expectations of -0.5 to 57.6 and the fastest pace of expansion in 14-1/4 years.

*Dec 10-year T-notes (ZNZ18 +0-035) this morning are up +1.5 ticks.  Tuesday's closes: TYZ8 -11.0, FVZ8 -6.25.  Dec 10-year T-notes on Tuesday closed lower on the stronger-than-expected U.S. Aug ISM manufacturing index report, which posted a 14-1/4 year high.  T-note prices were also undercut by hawkish comments from St. Louis Fed President Bullard who said, "most of my colleagues see a high chance of a September Fed rate hike."

*The dollar index (DXY00 +0.03%) this morning is down -0.035 (-0.04%), EUR/USD (^EURUSD +0.03%) is up +0.0010 (+0.09%), USD/JPY (^USDJPY +0.22%) is up +0.18 (+0.16%).  Tuesday's closes: Dollar Index +0.285 (+0.30%), EUR/USD -0.0037 (-0.32%), USD/JPY +0.34 (+0.31%).  The dollar index on Tuesday rallied to a 2-week high and closed higher on the jump in the U.S. Aug ISM manufacturing index to a 14-1/4 year high (+2.2 to 61.3), which is hawkish for Fed policy.  The dollar was also boosted by the jump in the 10-year T-note yield to a 3-week high, which improves the dollar's interest rate differentials.

*Metals prices this morning are higher with Dec gold (GCZ18 +0.10%) +1.3 (+0.11%), Dec silver (SIZ18 +0.04%) +0.020 (+0.14%) and Dec copper (HGZ18 +0.33%) +0.010 (+0.38%).  Tuesday's closes: Dec gold -7.6 (-0.63%), Dec silver -0.377 (-2.59%), Dec copper -6.90 (-2.58%).  Metals on Tuesday closed lower with Dec gold at a 1-week low, Dec silver at a contract low and Dec copper at a 2-1/2 week low.  Metals prices were undercut by the rally in the dollar index to a 2-week high and by concern that Chinese industrial metals demand will suffer if the U.S. imposes tariffs on an additional $200 billion of Chinese goods late this week.

*Oct WTI crude oil prices (CLV18 -1.22%) this morning are down -95 cents (-1.36%) and Oct gasoline (RBV18 -0.80%) is -2.07 (-1.04%).  Tuesday's closes: Oct crude oil +0.07 (+0.10%), Oct gasoline -0.28 (-0.14%).  Oct crude oil and gasoline on Tuesday settled mixed with Oct crude at a 1-3/4 month high.  Crude oil prices were boosted by concern about a disruption to U.S. crude supplies as Tropical Storm Gordon moves toward oil fields along the U.S. Gulf Coast.  Crude oil prices were also boosted by the jump in the U.S. Sep ISM manufacturing index to a 14-1/4 year high, which signals economic strength that is positive for energy demand.  Crude oil prices were undercut by the rally in the dollar index to a 2-week high.




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