OVERNIGHT MARKETS AND NEWS
June E-mini S&Ps (ESM14 -0.13%) this morning are down -0.19% and European stocks are down -0.41% after Q1 sales results from IBM and Google missed estimates. European stocks are also under pressure from a slide in SAP AG, Germany's biggest technology company, which is down nearly 3% after it reported quarterly sales and earnings that were below consensus. Ukrainian forces killed three pro-Russian militants after an attack on a National Guard base in the country's east as U.S. and EU officials talk in Geneva with Ukraine and Russia about the crisis. Limiting losses in European stocks was a rally in automakers after European Mar car sales rose for a seventh consecutive month. Asian stocks closed mixed: Japan unch, Hong Kong +0.28%, China -0.35%, Taiwan +0.23%, Australia +0.63%, Singapore +0.02%, South Korea -0.07%, India +1.58%. Chinese stocks declined after foreign investment in China fell for the first time in 14-months last month and after Premier Li Keqiang said China isn't considering "strong" stimulus measures and will keep its prudent monetary policy and proactive fiscal policy unchanged. Japanese stocks were undercut after Japan Mar consumer confidence dropped to a 2-1/2 year low. Commodity prices are mixed. May crude oil (CLK14 -0.15%) is up +0.36%. May gasoline (RBK14 -0.37%) is up +0.03%. Jun gold (GCM14 -0.15%) is down -0.34%. May copper (HGK14 +0.41%) is up +0.36%. Agriculture and livestock prices are mixed, although May soybeans are up +0.64% at a 9-1/4 month nearest-futures high. The dollar index (DXY00 -0.21%) is down -0.20%. EUR/USD (^EURUSD) is up +0.28%. USD/JPY (^USDJPY) is down -0.12%. European government bond yields tumbled with Spain's 10-year bond yield at 3.04%, an 8-1/2 year low, at 3.66% on Portugal's 10-year bond, an 8-year low, and at 3.07% on Italy's 10-year bond, the lowest since records began in 1993, as German Mar producer prices fell for an eighth month and boosted the case for additional ECB stimulus. June T-note prices (ZNM14 +0.04%) are up +3 ticks.
China Mar foreign direct investment unexpectedly fell -1.5% y/y, less than expectations of a +2.0% y/y increase and the first decline in 14 months.
Eurozone Mar new car registrations rose +10.6% y/y, the seventh consecutive month that car sales have advanced.
German Mar PPI fell -0.3% m/m and -0.9% y/y, a faster pace of decline than expectations of unch m/m and -0.7% y/y.
Japan Mar consumer confidence fell -1.0 to 37.5, a bigger decline than expectations of -0.6 to 37.7 and the lowest level in 2-1/2 years.
Japan Mar nationwide department store sales surged +25.4% y/y, the largest increase since data began in 1991.
U.S. STOCK PREVIEW
Today’s weekly initial unemployment claims report is expected to show an increase of +15,000 to 315,000, reversing about one-half of last week’s -32,000 decline to 300,000. Meanwhile, continuing claims are expected to show a small increase of +2,000 to 2.778 million, stabilizing after last week’s sharp drop of -62,000 to 2.776 million. Today’s April Philadelphia Fed manufacturing index is expected to show a +1.0 point increase to 10.0, adding to the sharp increase of +15.3 points to 9.0 seen in March. The Treasury today will auction $18 billion of 5-year TIPS. There are 25 of the S&P 500 companies that report earnings today. Notable reports include Morgan Stanley (consensus $0.60), Goldman Sachs (3.49), Blackrock (4.10), GE (0.32), and Honeywell (1.26). There are no equity conferences during the remainder of this week.
OVERNIGHT U.S. STOCK MOVERS
Google (GOOG +3.75%) slid over 3% in after-hours trading after it reported Q1 EPS of $6.27, below consensus of $6.40.
PepsiCo (PEP +0.96%) reported Q1 EPS of 83 cents, stronger than consensus of 75 cents.
Morgan Stanley (MS +1.15%) reported Q1 EPS of 68 cents, higher than consensus of 60 cents.
General Electric (GE +1.16%) reported Q1 EPS of 33 cents, better than consensus of 32 cents.
Mattel (MAT -1.51%) reported a Q1 EPS loss of -3 cents, weaker than consensus of a 7 cent gain.
Honeywell International (HON +1.73%) reported Q1 EPS of $1.36, stronger than consensus of $1.26.
Schlumberger Ltd, (SLM +2.61%) reported Q1 EPS of $1.21, better than consensus of $1.20.
Universal Forest (UFPI +2.38%) reported Q1 EPS of 36 cents, weaker than consensus of 38 cents.
International Business Machines (IBM -0.31%) fell nearly 4% in after-hours trading after it reported Q1 adjusted EPS of $2.54, right on consensus, although Q1 revenue of $22.50 billion was below consensus of $22.91 billion.
Capital One (COF +0.86%) reported Q1 continuing operations EPS of $1.91, well above consensus of $1.69.
American Express (AXP +1.58%) reported Q1 EPS of $1.33, higher than consensus of $1.30.
SanDisk (SNDK +0.68%) gained over 6% in after-hours trading after it reported Q1 EPS of $1.44, well ahead of consensus of $1.25.
Kansas City Southern (KSU +2.30%) reported Q1 adjusted EPS of $1.05, higher than consensus of 99 cents.
Danaher (DHR +0.89%) reported Q1 EPS of 81 cents, better than consensus of 80 cents.
June E-mini S&Ps (ESM14 -0.13%) this morning are down -3.50 points (-0.19%). The S&P 500 on Wed closed higher. Bullish factors included (1) the +0.7% rise in U.S. Mar industrial production, better than expectations of +0.5%, (2) the +0.8 point rise in Mar capacity utilization to 79.2%, stronger than expectations of +0.3 to 78.7% and the highest in 5-3/4 years, (3) the upbeat Fed Beige Book stating that the U.S. economy continued to expand as harsh winter weather abated, and (4) optimism that Q1 company earnings results can beat consensus. Closes: S&P 500 +1.05%, Dow Jones +1.00%, Nasdaq +1.30%.
Jun 10-year T-notes (ZNM14 +0.04%) this morning are up +3 ticks. Jun 10-year T-note futures prices on Wednesday closed lower. Bearish factors included (1) signs of strength in the U.S. economy after Mar industrial production rose more than expected and Mar capacity utilization climbed to its highest level in 5-3/4 years, and (2) reduced safe-haven demand for T-notes as stocks rallied. Closes: TYM4 -7.00, FVM4 -5.50.
The dollar index (DXY00 -0.21%) this morning is down -0.158 (-0.20%). EUR/USD (^EURUSD) is up +0.0038 (+0.28%). USD/JPY (^USDJPY) is down -0.12 (-0.12%). The dollar index on Wednesday closed unchanged as strength in stocks offset strong U.S. economic data. Bullish factors included (1) the stronger-than-expected U.S. Mar industrial production, which bolsters the outlook for the Fed to continue to taper QE3, and (2) the rally in USD/JPY to a 1-week high after China Q1 GDP grew more than expected, which reduced safe-haven demand for the yen. Closes: Dollar index +0.074 (+0.09%), EUR/USD +0.00008 (+0.01%), USD/JPY +0.318 (+0.31%).
May WTI crude oil (CLK14 -0.15%) this morning is up +37 cents (+0.36%) and May gasoline (RBK14 -0.37%) is up +0.0009 (+0.03%). May crude and gasoline prices on Wednesday closed little changed. May crude posted a 1-1/2 month high and May gasoline rose to a 7-1/2 month high after China Q1 GDP grew more than expected and after weekly crude supplies at Cushing, Ok, the delivery point of WTI futures, fell -771,000 bbl to a 4-1/3 yr low of 26.828 million bbl. Prices fell back from their best levels after U.S. crude production in the week ended Apr 11 rose +0.9% to a 26-year high of 8.301 million bpd and after weekly EIA crude inventories surged +10.01 million bbl to a 9-1/2 month high of 394.135 million bbl. Closes: CLK4 +0.01 (+0.01%). RBK4 -0.0016 (-0.05%).
GLOBAL EVENT CALENDAR04/17/2014
U.S. STOCK CALENDAR04/17/2014
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