OVERNIGHT MARKETS AND NEWS
September E-mini S&Ps (ESU15 -0.80%) are down -0.93% and European stocks are down -0.40% as they consolidate the sharp 2-day rally from Wednesday and Thursday. Losses in European stocks were limited after Eurozone Aug economic confidence unexpectedly rose to the highest in 4 years. The markets will look to cues from Fed members and other global central bankers to the timing of a U.S. interest rate increase as they meet at the Kansas City Fed's annual symposium in Jackson Hole, Wyoming. The WSJ reported that Cleveland Fed President Mester hinted that she is still in favor of a Fed rate hike this year when she said that in her view the U.S. economy is ready for a modest increase in interest rates, despite recent market turmoil. Asian stocks closed mostly higher: Japan +3.03%, Hong Kong -1.04%, China +4.82%, Taiwan +2.49%, Australia +0.58%, Singapore +0.36%, South Korea +1.49%, India +0.61%. China raised margin requirements on stock-index futures contracts to 30% from 20% in the latest effort by the government to limit market speculation. Japanese stocks found support on stronger-than-expected economic data on Jul retail sales and Jul unemployment.
Sep T-note prices (ZNU15 +0.01%) are up +5.5 ticks.
Eurozone Aug economic confidence unexpectedly rose +0.2 to 104.2, stronger than expectations of -0.2 to 103.8 and the highest in 4 years. The Aug business climate indicator fell -0.20 to 0.21, weaker than expectations of -0.05 to 0.34.
The Japan Jul jobless rate unexpectedly fell -0.1 to 3.3%, better than expectations of unch at 3.4% and matched the levels from May and Apr of this year as the lowest in 18-1/4 years. The Jul job-to-applicant ratio rose +0.02 to 1.21, stronger than expectations of unch at 1.19 and the highest since Feb of 1992.
Japan Jul retail sales rose +1.2% m/m and +1.6% y/y, stronger than expectations of +0.6% m/m and +1.1% y/y.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) July personal spending (expected +0.4%, Jun +0.2%) and July personal income (expected +0.4%, Jun +0.4%), (2) July PCE deflator (expected +0.1% m/m and +0.3% y/y, Jun +0.2% m/m and +0.3% y/y) and July core PCE deflator (expected +0.1% m/m and +1.3% y/y, Jun +0.1% m/m and +1.3% y/y), and (3) final-Aug U.S. consumer sentiment index from the University of Michigan (expected +0.1 to 93.0, prelim-Aug -0.2 to 92.9).
There is 1 of the S&P 500 companies that reports earnings today: Pall Corp (consensus $1.10).
U.S. IPO's scheduled to price today include: none.
Equity conferences during the remainder of this week include: Pareto Healthcare Conference on Fri.
OVERNIGHT U.S. STOCK MOVERS
BorgWarner (BWA +0.36%) was downgraded to 'Neutral' from 'Outperform' at Baird.
Teradata (TDC +2.41%) was downgraded to 'Neutral' from 'Overweight' at Atlantic Equities.
Ryder (R +2.90%) was upgraded to 'Strong Buy' from 'Outperform' at Raymond James.
United Continental Holdings (UAL -1.09%) rallied over 2% in after-hours trading after it was announced that it will replace Hospira (HSP +0.09%) in the S&P 500 after the close of trading on Wednesday, September 2.
Baker Bros. Advisors reported a 20.6% stake in Invitae (NVTA +3.17%) .
OmniVision (OVTI +1.12%) reported Q1 adjusted EPS of 46 cents, better than consensus of 39 cents.
Smith & Wesson (SWHC +1.76%) rose 5% in after-hours trading after it reported Q1 adjusted EPS of 32 cents, well above consensus of 22 cents, and then raised guidance on fiscal 2016 EPS view to $1.14-$1.19 from $1.02-$1.07, higher than consensus of $1.04.
ULTA Beauty & Salon (ULTA +1.39%) climbed over 4% in after-hours trading after it reported Q2 EPS of $1.15, better than consensus of $1.12, and then raised guidance on fiscal 2015 sales growth to 8% to 10% from previous guidance of 7% to 9%.
Freeport McMoRan (FCX +28.66%) jumped over 14% in after-hours trading after Carl Icahn reported an 8.46% stake in the company.
GameStop (GME +1.85%) reported Q2 adjusted EPS of 31 cents, higher than consensus of 25 cents.
Aeropostale (ARO +10.53%) reported a Q2 adjusted EPS loss of -56 cents, a slightly bigger loss than consensus of 55 cents.
Autodesk (ADSK +1.77%) dropped over 7% in after-hours trading after it reported Q2 adjusted EPS of 19 cents, higher than consensus of 17 cents, but then lowered guidance on fiscal 2016 adjusted EPS to 60 cents-72 cents, well below consensus of $1.04.
Caleres (CAL +1.63%) lowered guidance on fiscal 2015 adjusted EPS to $1.84-$1.94, below consensus of $1.95.
Sep E-mini S&Ps (ESU15 -0.80%) this morning are down -18.50 points (-0.93%). Thursday's closes: S&P 500 +2.43%, Dow Jones +2.27%, Nasdaq +2.49%. The S&P 500 on Thursday closed sharply higher on carryover support from the +5.3% rally in China's Shanghai Composite, which closed higher for the first time in a week. Stocks also received a boost from the upward revision in U.S. Q2 GDP to 3.7% from +2.3% and from strength in raw-material and energy producers after most commodity prices rallied sharply.
Sep 10-year T-notes (ZNU15 +0.01%) this morning are up +5.5 ticks. Thursday's closes: TYU5 +0.50, FVU5 -2.25. Sep T-notes Thursday fell to a 1-week low and closed little changed. T-notes were undercut by the upward rebound in stocks and the sharp upward revision in Q2 GDP to +3.7% from +2.3%. In addition, initial unemployment claims fell by -6,000.
The dollar index (DXY00 +0.03%) this morning is down -0.052 (-0.05%). EUR/USD (^EURUSD) is up +0.0033 (+0.29%). USD/JPY (^USDJPY) is down -0.24 (-0.20%). Thursday's closes: Dollar Index +0.510 (+0.54%), EUR/USD -0.00674 (-0.60%), USD/JPY +1.111 (+0.93%). The dollar index on Thursday closed higher on the larger-than-expected upward revision in U.S. Q2 GDP to +3.7% from +2.3%, which signals strength in the economy that may yet prompt the Fed to raise interest rates this year.
Oct crude oil (CLV15 -0.96%) this morning is down -27 cents (-0.63%) and Oct gasoline (RBV15 -1.48%) is down -0.0170 (-1.28%). Thursday's closes: CLV5 +4.18 (+10.83%), RBV5 +0.0953 (+7.74%). Oct crude and gasoline on Thursday closed sharply higher with Oct crude at a 1-week high. Crude oil found support on the sharp +5.3% rally in the China Shanghai Composite index and the larger-than-expected upward revision to U.S. Q2 GDP, which signals improved energy consumption and demand.
GLOBAL EVENT CALENDAR08/28/2015
U.S. STOCK CALENDAR08/28/2015