Morning Call For Friday, August 4
OVERNIGHT MARKETS AND NEWS
Sep E-mini S&Ps (ESU17 +0.10%) this morning are up +0.07% ahead of this morning's monthly U.S. payroll report that may provide clues on economic strength and the path of interest rates. European stocks were little changed, up +0.05%, and garnered support from stronger-than-expected German Jun factory orders. Gains were limited as energy stocks fell with the price of Sep WTI crude oil (CLU17 -0.33%) down -0.90%. Asian stocks settled mostly lower: Japan -0.38%, Hong Kong +0.12%, China -0.33%, Taiwan +0.35%, Australia -0.25%, Singapore -0.49%, South Korea +0.37%, India +0.27%. Japanese stocks were under pressure after data showed Japanese worker earnings unexpectedly fell in Jun at the fastest pace in 2-years, along with strength in the yen that undercut exporter stocks as USD/JPY fell to a 1-1/2 month low.
The dollar index (DXY00 -0.03%) is down -0.04. EUR/USD (^EURUSD) is down -0.01%. USD/JPY (^USDJPY) is up +0.03%.
Sep 10-year T-note prices (ZNU17 -0.02%) are down -1 tick.
German Jun factory orders rose +1.0% m/m and +5.1% y/y, stronger than expectations of +0.5% m/m and +4.4% y/y.
Japan Jun labor cash earnings unexpectedly fell -0.4% y/y, weaker than expectations of +0.5% y/y and the largest decline in 2-years. Jun real cash earnings fell -0.8% y/y, weaker than expectations of +0.1% y/y and the biggest decline in 2-years.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) Jul non-farm payrolls (expected +180,000, Jun +222,000) and Jul unemployment rate (expected -0.1 to 4.3%, Jun +0.1 to 4.4%), (2) Jul avg hourly earnings (expected +0.3% m/m and +2.4% y/y, Jun +0.2% m/m and +2.5% y/y), (3) Jun U.S. trade deficit (expected -$44.5 billion, May -$46.5 billion).
Notable S&P 500 earnings reports today include: Berkshire Hathaway (consensus $2,800), CBOE (0.86), Newell Brands (0.87), Cigna (2.48), Amergen (0.71), Sempra Energy (0.86).
U.S. IPO's scheduled to price today:
Equity conferences this week: none.
OVERNIGHT U.S. STOCK MOVERS
Activision Blizzard (ATVI +4.10%) was upgraded to 'Buy' from 'Neutral' at Bank of America/Merrill Lynch with a price target of $76.
Universal Display (OLED -0.79%) gained 1% in after-hours trading after it reported Q2 revenue of $102.5 million, higher than consensus of $85.3 million, and then said it sees full-year revenue of $285 million to $300 million, above consensus of $281 million
Fluor (FLR +0.05%) tumbled nearly 10% in after-hours trading after it reported Q2 revenue of $4.72 billion, weaker than consensus of $4.90 billion, and then lowered guidance on full-year EPS to $1.40-$1.70 from a prior view of $2.25-$2.75.
Arista Networks (ANET +0.41%) jumped 13% in after-hours trading after it reported Q2 revenue of $405.2 million, higher than consensus of $360.8 million, and then said it sees Q3 revenue of $405 million-$420 million, above consensus of $377.7 million.
Global Blood Therapeutics (GBT unch) gained over 1% in after-hours trading after it was rated a new 'Outperform' at Oppenheimer with a price target of $53.
Synaptics (SYNA -1.90%) sank 15% in after-hours trading after it forecast Q1 revenue of $380 million-$420 million, weaker than consensus of $445.5 million.
Wingstop (WING -1.92%) climbed over 7% in after-hours trading after it reported Q2 revenue of $24.7 million, better than consensus of $24.6 million.
Carbonite (CARB +1.52%) slumped 14% in after-hours trading after it reported a Q2 net loss of -23 cents, wider than consensus of -2 cents, and then said it sees Q3 non-GAAP EPS of 19 cents-21 cents, below consensus of 23 cents.
Viacom (VIAB +2.87%) slid over 6% in after-hours trading after it said it expects subscribers to its cable-TV networks will drop by about 3% this quarter.
Weight Watchers International (WTW -0.45%) jumped over 12% in after-hours trading after it reported Q2 EPS of 67 cents, above consensus of 51 cents, and then said it sees full-year EPS of $1.57-$1.67, well above consensus of $1.27.
Applied Optoelectronics (AAOI +4.80%) plunged over 20% in after-hours trading after it said it sees Q3 revenue of $107 million-$115 million, weaker than consensus of $123.7 million.
B&G Foods (BGS -0.28%) lost 7% in after-hours trading after it reported Q2 adjusted EPS of 41 cents, weaker than consensus of 48 cents, and then said it sees full-year adjusted EPS of $2.03-$2.17, below consensus of $2.19.
GoPro (GPRO +2.86%) rallied 13% in after-hours trading after it reported Q2 revenue of $296.5 million, higher than consensus of $269.2 million, and then said it sees Q3 revenue of $300 million, + or - $10 million, above consensus of $277.8 million.
Impinj (PI -2.30%) slumped over 21% in after-hours trading after it said it sees Q3 revenue of $31.8 million-$33.3 million, weaker than consensus of $37.7 million.
Yelp (YELP -2.73%) surged 20% in after-hours trading after it reported Q2 net revenue of $208.9 million, better than consensus of $204.9 million, and then said it sees full-year revenue of $855 million to $865 million, the midpoint higher than consensus of $856 million.
MARKET COMMENTS
Sep S&P 500 E-mini stock futures (ESU17 +0.10%) this morning are up +1.75 points (+0.07%). Thursday's closes: S&P 500 -0.22%, Dow Jones +0.04%, Nasdaq -0.39%. The S&P 500 on Thursday closed lower on the U.S. Jul ISM non-manufacturing index report of -3.5 to an 11-month low of 53.9, weaker than expectations of -0.5 to 56.9. There was also weakness in energy stocks after crude oil prices fell -1.13%.
Sep 10-year T-note prices (ZNU17 -0.02%) this morning are down -1 tick. Thursday's closes: TYU7 +8.0, FVU7 +4.5. Sep 10-year T-notes rallied to a 5-week high Thursday and settled higher on the the decline in the U.S. Jul ISM non-manufacturing index to an 11-month low. T-notes were also supported by reduced inflation expectations after the 10-year T-note breakeven inflation rate fell to a 1-1/2 week low.
The dollar index (DXY00 -0.03%) this morning is down -0.04 (-0.04%). EUR/USD (^EURUSD) is down -0.0001 (-0.01%) and USD/JPY (^USDJPY) is up +0.03 (+0.03%). Thursday's closes: Dollar Index +0.003 (+0.00%), EUR/USD +0.0014 (+0.12%), USD/JPY -0.67 (-0.61%). The dollar index on Thursday closed little changed. The dollar was undercut by the weaker-than-expected U.S. Jul ISM non-manufacturing index that fell to an 11-month low. The dollar was also undercut by the decline in the 10-year T-note yield to a 5-week low, which hurt the dollar's interest rate differentials.
Sep crude oil (CLU17 -0.33%) this morning is down -44 cents (-0.90%). Sep gasoline (RBU17 +0.36%) is -0.0024 (-0.15%). Thursday's closes: Sep WTI crude -0.56 (-1.13%), Sep gasoline -0.0129 (-0.78%). Sep crude oil and gasoline on Thursday closed lower on negative carry-over from Wednesday's EIA data that showed U.S. crude production rose to a 2-year high of 9.43 million bpd last week. Crude oil prices were also undercut by the decline in the crack spread to a 4-session low, which gives refiners less incentive to purchase crude oil to refine into gasoline.
Disclosure: None.