Morning Call: Global stocks mixed as they await new trade headlines; Sep E-mini S&Ps up +0.18%; Shanghai Composite closed down -0.93% at a fresh 2-year low; Aug COMEX gold down -0.19% at a 6-1/2 month low.
Barchart.com - Thu Jun 28, 6:48AM CDT
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 ESU18 - S&P 500 E-Mini
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ESU182,797.50+1.00+0.04%
DXY0094.488-0.023-0.02%
ZNU18120-025-0-030-0.08%
GCQ181,241.2+1.5+0.12%
SIN1815.735s-0.004-0.03%
HGN182.7680+0.0110+0.40%
CLQ1868.05-0.01-0.01%
RBQ182.0081+0.0059+0.29%
TMUS61.63-0.05-0.08%
MSG325.24-1.08-0.33%
IBM145.46-0.44-0.30%
ZG63.61+0.04+0.06%
BECN39.76-0.18-0.45%
PRGS39.06+0.34+0.88%
GILD77.26-0.12-0.16%
CAMP23.97-0.08-0.33%
BBBY19.29-0.58-2.92%
KURA19.95-0.25-1.24%
XON14.56-0.82-5.33%
ZFGN10.04+0.16+1.62%
PIR2.22-0.01-0.45%

Overnight Markets and News

Sep E-mini S&Ps this morning (ESU18 +0.15%) are up +0.18%, led by strength in new Dow component Walgreens Boots Alliance, which is up more than 2% in pre-market trading after it reported better-than-expected Q3 EPS and boosted its quarterly dividend. European stocks are down -0.61% and followed losses in Asian markets on concern an escalation of trade tensions will undercut economic growth. The ECB's monthly report released today warned the balance of risks for global activity and trade in the short term "has worsened recently" due to the implementation of higher trade tariffs and the possibility of wider protectionist measures. Asian stocks settled mostly lower: Japan -0.01%, Hong Kong +0.50%, China -0.93%, Taiwan -0.44%, Australia +0.32%, Singapore +0.09%, South Korea -1.32%, India -0.51%. China's Shanghai Composite fell to a new 2-year low on heightened trade risks between the U.S. and China after China Commerce Ministry spokesman Gao Feng said China will fight back with "quantitative and qualitative measures" should the U.S. roll out a new tariff list. Concern that Chinese economic growth will suffer from trade risks has undercut the yuan which fell to a 7-1/4 month low of 6.6345 against the dollar today.

The dollar index (DXY00 -0.11%) is down -0.16%. EUR/USD (^EURUSD +0.23%) is up +0.29%. USD/JPY (^USDJPY -0.01%) is down -0.03%.

Sep 10-year T-note prices (ZNU18 unch) are unchanged.

The ECB in its monthly report said, "the balance of risks for global activity and trade in the short term has worsened recently, with risks remaining skewed to the downside in the medium term. The implementation of higher trade tariffs and the possibility of wider protectionist measures represent a key risk."

Eurozone Jun economic confidence fell -0.2 to 112.3, stronger than expectations of -0.5 to 112.0, but still a 10-month low. The Jun business climate indicator fell -0.05 to 1.39, weaker than expectations of -0.5 to 1.40.

German Jul GfK consumer confidence was unch at 10.7, stronger than expectations of -0.1 to 10.6.

Japan May retail sales fell -1.7% m/m, weaker than expectations of -0.8% m/m and the biggest decline in 1-3/4 years.

U.S. Stock Preview

Key U.S. news today includes: (1) weekly initial unemployment claims (expected +2,000 to 220,000, previous -3,000 to 218,000) and continuing claims (expected -5,000 to 1.718 million, previous +22,000 to 1.723 million), (2) Q1 GDP (expected unrevised at 2.2% q/q annualized), (3) USDA weekly Export Sales, (4) St. Louis Fed President James Bullard speaks on the U.S. economy and monetary policy to a conference in St. Louis, (5) Jun Kansas City Fed manufacturing activity (expected -3 to 26, May +3 to 29), (6) Treasury auctions $30 billion of 7-year T-notes, (7) USDA Q2 Hogs & Pigs Inventory.

Notable Russell 1000 earnings reports today include: NIKE (consensus $0.64), Walgreens Boots Alliance (1.48), Accenture (1.72), McCormick (0.93).

U.S. IPO's scheduled to price today: Domo (DOMO).

Equity conferences this week: JMP Securities Boston Real Estate Forum on Thu, Berenberg Blockchain Conference on Thu, GSMA Mobile World Congress Shanghai on Fri.

Market Comments

Sep S&P 500 E-minis (ESU18 +0.15%) this morning are up +4.75 pints (+0.18%). Wednesday's closes: S&P 500 -0.86%, Dow Jones -0.68%, Nasdaq 100 -1.39%. The S&P 500 on Wednesday closed lower as trade concerns dominate the market and on the unexpected -0.5% m/m decline in U.S. May pending home sales, weaker than expectations of +0.5% m/m. On the positive side, energy stocks rallied after Aug WTI crude prices jumped +3.16% to a fresh 3-1/2 year high.

Sep 10-year T-notes (ZNU18 unch) this morning are unch. Wednesday's closes: TYU8 +12.50, FVU8 +7.50. Sep 10-year T-notes on Wednesday climbed to a 3-1/2 week high and settled higher on the unexpected decline in U.S. May pending home sales and on continued trade concerns ahead of the Trump administration's announcement by Friday on Chinese investment restrictions.

The dollar index (DXY00 -0.11%) this morning is down -0.157 (-0.16%), EUR/USD (^EURUSD +0.23%) is up +0.0033 (+0.29%) and USD/JPY (^USDJPY -0.01%) is down -0.03 (-0.03%). Wednesday's closes: Dollar Index +0.609 (+0.64%), EUR/USD -0.0094 (-0.81%), USD/JPY +0.20 (+0.18%). The dollar index on Wednesday closed higher on weakness in the Chinese yuan which fell to a 6-1/4 month low against the dollar as ongoing U.S.-China trade tensions sent the Shanghai Stock Index down to a new 2-year low. There were also dollar-positive comments from U.S. Treasury Secretary Mnuchin who said he expects a "big" U.S. Q2 GDP number.

Metals this morning are weaker with Aug gold (GCQ18 -0.22%) -2.4 (-0.19%) at a 6-1/2 month low, July silver (SIN18 -0.63%) -0.091 (-0.56%), and July copper (HGN18 -0.85%) -0.026 (-0.87%) at a 3-month low. Wednesday's closes: Aug gold -3.80 (-0.30%), Jul silver -0.099 (-0.61%), Jul copper -0.080 (-0.27%). Metals on Wednesday closed lower with Aug gold at a 6-1/2 month low, Jul silver at a 1-3/4 month low and Jul copper at a 3-month low. Metals prices were undercut by a stronger dollar and by the unexpected decline in U.S. May pending home sales, which was negative for copper demand.

Aug WTI crude oil prices (CLQ18 +0.04%) this morning are down -1 cent (-0.01%) and Aug gasoline (RBQ18 +0.22%) is +0.0025 (+0.12%). Wednesday's closes: Aug crude +2.23 (+3.16%), Aug gasoline +5.36 (+2.61%). Aug crude oil and gasoline on Wednesday settled sharply higher as Aug crude surged to a 3-1/2 year nearest-futures high and Aug gasoline posted a 3-week high. Crude oil prices were boosted by the -9.89 million bbl plunge in EIA crude inventories to a 5-month low, more than expectations of -3.0 million bbl, and by the -2.713 million bbl decline in crude supplies at Cushing, OK, delivery point of WTI futures. Crude oil prices were also boosted by the +26.4% w/w increase in U.S. crude exports the week of Jun 22 to a record high 3.0 million bpd.

Overnight U.S. Stock Movers

Walgreens Boots Alliance (WAG) is up more than 2% in pre-market trading after it reported Q3 adjusted EPS of $1.53, better than consensus of $1.48, and then boosted its quarterly dividend to 44 cents a share from 40 cents, higher than expectations of 43 cents. In addition, the company authorized a $10 billion share buyback program.

T-Mobile (TMUS -0.60%) was upgraded to 'Outperform' from 'Market Perform' at Wells Fargo Securities with a price target of $77.

Madison Square Garden (MSG -2.00%) rallied 5% in after-hours trading after it said it was exploring the spinoff of its sports franchises, including the New Yok Knicks and New York Rangers.

International Business Machines (IBM -1.15%) was rated a new 'Buy' at Nomura Instinet with a price target of $160.

Zillow Group (ZG -0.12%) fell 3% in after-hours trading after it announced a proposed public offering of $325 million of Class C capital stock and $325 million of convertible senior notes due 2023.

Beacon Roofing Supply (BECN -1.15%) was rated a new 'Buy' at MKM Partners with a price target of $61.

Progress Software (PRGS -2.74%) gained 2% in after-hours trading after it reported Q2 adjusted EPS of 60 cents, higher than consensus of 53 cents, and then forecast full-year adjusted EPS of $2.45 to $2.50, above consensus of $2.42.

Gilead Sciences (GILD -2.29%) was rated a 'Strong Buy' at Raymond James with a price target of $93.

CalAmp (CAMP -3.50%) rose 3% in after-hours trading after it reported Q1 revenue of $94.9 million, above consensus $93.1 million.

Bed Bath & Beyond (BBBY +0.70%) dropped 6% in after-hours trading after it reported an unexpected -0.6% decline in Q1 comparable sales, weaker than expectations of a +0.1% increase.

Kura Oncology (KURA -1.73%) fell more than 3% in after-hours trading after it announced that it had commenced an underwritten public offering of its common stock, although no size was given.

Intrexon (XON -6.29%) slid almost 4% in after-hours trading after it announced that it intends to sell $200 million convertible senior notes due 2023.

Zafgen (ZFGN -2.41%) dropped nearly 5% in after-hours trading after it announced that it had commenced an underwritten public offering of its common stock, although no size was given.

Pier 1 Imports (PIR +1.01%) tumbled 12% in after-hours trading after it reported Q1 comparable sales fell -8.2%, weaker than expectations of -7.6%, and then forecast a Q2 adjusted loss per share of -54 cents to -58 cents, wider than consensus of -21 cents.