Explore More Commentaries
E-Mini S&P 500: Employment on tap

The Non-farm Payrolls forecast at 168,000 while the previous reading was 151,000. Any number much lower may have a sentiment change. The Fed is

FX Board: USD trying to spread its wings

The US dollar picked up the pace again today after an early dip, with a new low for the cycle in GBPUSD coming alongside a rise in dollar/yen. To

The Energy Report: In The Eye of the Storm

Crude oil prices are just shy of $50.00 as Hurricane Matthew is barreling towards the East Coast. U.S. oil supply continues to fall and OPEC and

Grain Traders Positioning For Next Move

Good Morning! Paul Georgy with the early morning commentary for October 6, 2016 Grain markets are mostly lower as weather forecasts open up for

Strong NFP could see USD rally for real

After a head-spinning comeback in the ISM non-manufacturing survey in September, a November Federal Reserve rate hike could even be in play if

E-Mini S&P 500: Signs of strength!

The ADP is often viewed as a precursor to the Friday Employment report. The ADP Employment Report for September was 154,000 while the previous

The Energy Report: Goodbye Oil Glut

While global markets are worried about EU tapering and the possibility off a hard Brexit, oil seems oblivious to those threats as the US oil glut is

BT Morning Call for October 5

OVERNIGHT MARKETS AND NEWS Dec E-mini S&Ps (ESZ16 +0.01%) are down -0.08% and European stocks are down -0.65% on the prospects for tighter Fed

Money On The Move Support Grains

Good Morning!Paul Georgy with the early morning commentary forOctober 5, 2016 Grain marketsare mixed as global supplies continue to grow. The US

Commentary

Financials

BT Morning Call for October 6

Commentary — BT analyst Date — October 6, 2016

Share:
342 views0 comments — Join The Discussion
—Dow Jones Index

OVERNIGHT MARKETS AND NEWS

Dec E-mini S&Ps (ESZ16 -0.16%) are down -0.21% and European stocks are down -0.24% as speculation mounts that the Fed will raise interest rates this year. Friday's monthly U.S. payroll report will be scoured for clues as to the timing of a Fed rate hike after Richmond Fed President Lacker said Wednesday night that a strong U.S. jobs report is going to bolster the case for an interest rate increase sooner rather than later. Mining stocks are raw-material producing companies are leading the overall market lower as the price of copper (HGZ16 -0.46%) falls -0.46% to a 3-week low. Asian stocks settled mostly higher: Japan +0.47%, Hong Kong +0.69%, China closed for holiday, Taiwan +0.13%, Australia +0.55%, Singapore +0.12%, South Korea +0.83%, India -0.41%. Japan's Nikkei Stock Index climbed to a 4-week high after a rally in USD/JPY to a 1-month high fueled gains in exporting companies.

The dollar index (DXY00 +0.23%) is up +0.20%. EUR/USD (^EURUSD) is down -0.16%. USD/JPY (^USDJPY) is up +0.14% at a 1-month high.

Dec 10-year T-note prices (ZNZ16 +0.05%) are up +3 ticks.

Richmond Fed President Lacker said a strong U.S. jobs report is going to bolster the case for an interest rate increase sooner rather than later, and that "every FOMC meeting is a live meeting" to raise interest rates.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Sep Challenger job cuts (Aug -21.8% y/y), (2) weekly initial unemployment claims (expected +2,000 to 256,000, previous +3,000 to 254,000) and continuing claims (expected +19,000 to 2.081 million, previous -46,000 to 2.062 million), (3) G-20 finance ministers and central bankers meet in Washington D.C., and (4) USDA weekly Export Sales.

Russell 1000 companies that report earnings today: none.

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

Equity conferences during the remainder of this week include: ACI European Biomass to Power Conference on Wed, Seaport Global Securities Dallas Energy Day on Thu.

OVERNIGHT U.S. STOCK MOVERS

Twitter (TWTR +5.74%) tumbled 13% in pre-market trading after Alphabet said it is not interested in acquiring the company.

Trade Desk (TTD +3.99%) was rated a new 'Buy' at Cantor Fitzgerald with a 12-month target price of $30.

Raytheon (RTN -0.03%) was rated a new 'Outperform' at Baird with a 12-month target price of $170.

Walgreens Boots Alliance (WBA +0.34%) was rated a new 'Buy' at UBS with a price target of $94.

Yum! Brands (YUM -1.84%) slid over 2% in pre-market trading after it reported Q3 adjusted EPS of $1.09, less than consensus of $1.10, and said Q3 China comparable sales fell -1%, weaker than expectations of +4.1%.

Athenahealth (ATHN +0.58%) was rated a new 'Buy' at UBS with a price target of $147.

Zumiez (ZUMZ -1.03%) rallied over 10% in after-hours trading after it said Sep comparable sales were up +6.3%, stronger than expectations of down -0.4%, and after it raised its view on Q3 EPS to 29 cents-30 cents from a prior view of 21 cents-26 cents.

Resources Connection (RECN +1.35%) fell 3% in after-hours trading after it reported Q1 EPS of 15 cents, below consensus of 16 cents.

JD.com (JD +1.60%) jumped nearly 7% in after-hours trading after Wal-Mart raised its stake in the company to 10.8% from 5.9%.

Alnylam Pharmaceuticals (ALNY +2.52%) plunged nearly 40% in after-hours trading after the company said it will discontinue development of its reusiran saying the benefit-risk profile no longer supported continued dosing.

Scynexis (SCYX +6.90%) surged over 15% in after-hours trading after it reported full results from Phase 2 studies on patients using its SCY-078 for candida infections.

Idera Pharmaceuticals (IDRA +2.35%) slumped over 10% in after-hours trading after offering up to $50 million in shares of common stock.

MARKET COMMENTS

Dec E-mini S&Ps (ESZ16 -0.16%) this morning are down -4.50 points (-0.21%). Wednesday's closes: S&P 500 +0.43%, Dow Jones +0.62%, Nasdaq +0.38%. The S&P 500 on Wednesday closed higher on the +5.7 point increase in the U.S. Sep ISM non-manufacturing PMI to 57.1, stronger than expectations of +1.6 to 53.0 and the fastest pace of expansion in 11 months. The stock market was also encouraged by the unexpected +0.2% increase in U.S. Aug factory orders, stronger than expectations of -0.2%. Energy producer stocks rallied after the price of crude oil climbed to a 3-1/4 month high.

Dec 10-year T-notes (ZNZ16 +0.05%) this morning are up +3 ticks. Wednesday's closes: TYZ6 -9.00, FVZ6 -5.25. Dec 10-year T-notes on Wednesday sold off to a 3-week low and closed lower on Chicago Fed President Evans' comment that he expects a Fed rate hike before the end of the year. Other negative factors including the stronger-than-expected Sep ISM non-manufacturing index and increased inflation expectations after the 10-year T-note breakeven inflation rate rose to a 4-1/2 month high.

The dollar index (DXY00 +0.23%) this morning is up +0.197 (+0.20%). EUR/USD (^EURUSD) is down -0.0018 (-0.16%). USD/JPY (^USDJPY) is up +0.14 (+0.14%). Wednesday's closes: Dollar index -0.044 (-0.05%), EUR/USD +0.0001 (+0.01%), USD/JPY +0.60 (+0.58%). The dollar index on Wednesday closed slightly lower on the smaller-than-expected increase in Sep ADP employment and on strength in the currencies of the crude-exporting countries of Russia and Canada after the price of crude oil climbed to a 3-1/4 month high. The dollar found support on Chicago Fed President Evans' comment that he expects the Fed to increase interest rates once by the end of the year.

Nov WTI crude oil (CLX16 -0.14%) this morning is down -6 cents (-0.12%) and Nov gasoline (RBX16 -1.43%) is down -0.0218 (-1.46%). Wednesday's closes: Nov crude +1.01 (+2.07%), Nov gasoline -0.0180 (-1.20%). Nov crude oil and gasoline on Wednesday settled mixed with Nov crude at a 3-1/4 month high. Crude oil prices were boosted by the unexpected decline in EIA crude inventories for a fifth week, down -2.98 million bbl to an 8-month low (versus expectations were for a build of +1.5 million bbl) and the -0.4% decline in U.S. crude production. There was also concern that Hurricane Matthew may disrupt crude supplies on the East Coast and cause a further drawdown in U.S. crude supplies in the weeks ahead. Nov gasoline retreated from a 1-1/2 month high and closed lower on speculation that Hurricane Matthew will cause gasoline demand to plunge as businesses close and economic activity declines as the hurricane makes its way up the U.S. East Coast.

GLOBAL EVENT CALENDAR10/06/2016

Thursday, Oct 6
US 0730 ET Sep Challenger job cuts, Aug -21.8% y/y.
0830 ET Weekly initial unemployment claims expected +2,000 to 256,000, previous +3,000 to 254,000. Weekly continuing claims expected +19,000 to 2.081 million, previous -46,000 to 2.062 million.
0830 ET USDA weekly Export Sales.
1100 ET Treasury announces amount of 3-year T-notes (previous $24 billion), 10-year T-notes (previous $20 billion) and 30-year T-bonds (previous $12 billion) to be auctioned Oct 12-13.
n/a G-20 finance ministers and central bankers meet in Washington D.C.
Friday, Oct 7
US 0830 ET Sep non-farm payrolls expected +173,000, Aug +151,000. Sep private payrolls expected +170,000, Aug +126,000. Sep manufacturing payrolls expected -4,000, Aug -14,000. Sep unemployment rate expected unch at 4.9%, Aug unch at 4.9%.
0830 ET Sep avg hourly earnings expected +0.3% m/m and +2.6% y/y, Aug +0.1% m/m and +2.4% y/y. Sep avg weekly hours all employees expected +0.1 to 34.4 hours, Aug -0.1 to 34.3 hours.
1000 ET Aug wholesale inventories expected -0.1%, Jul unch. Aug wholesale trade sales expected +0.1% m/m, Jul -0.4% m/m.
1030 ET Fed Vice Chair Stanley Fischer speaks at the Institute of International Finance annual meeting.
1245 ET Cleveland Fed President Loretta Mester (voter) speaks before the Shadow Open Market Committee.
1500 ET Aug consumer credit expected +$16.5 billion, Jul +$17.713 billion.
1500 ET Kansas City Fed President Esther George (voter) speaks on the U.S. economic outlook at the Institute of International Finance annual meeting.
1600 ET Fed Governor Lael Brainard takes part in a panel discussion at the IMF on trade as an engine for growth.

U.S. STOCK CALENDAR10/06/2016

CompanyTickerTimeEvent DescriptionPeriodEstimate
RPM International Inc RPM US 3:00 Annual General Meeting
L Brands Inc LB US 7:30 September 2016 Sales and Revenue Call - Pre-Recorded 2016
Wal-Mart Stores Inc WMT US 9:00 Investment Community Meeting 2016
Lam Research Corp LRCX US 9:00 KLA-Tencor Corp and Lam Research Corp Divestment Call
Yum! Brands Inc YUM US 9:15 Q3 2016 Earnings Call Q3 2016
KLA-Tencor Corp KLAC US 10:00 KLA-Tencor Corp and Lam Research Corp Divestment Call
Progressive Corp/The PGR US 13:00 Investor Meeting Y 2016
Gap Inc/The GPS US 16:15 September 2016 Sales and Revenue Release 2016
L Brands Inc LB US September 2016 Sales and Revenue Release 2016
Xcel Energy Inc XEL US Investor Meeting - Day 3 Y 2016

—Advertisement

Full service commodity broker specializing in grain and livestock trading for over 20 years

—Bull Trend

Comments

Have something to say?

Sign in or register
to leave a comment
Explore More Commentaries
E-Mini S&P 500: Employment on tap

The Non-farm Payrolls forecast at 168,000 while the previous reading was 151,000. Any number much lower may have a sentiment change. The Fed is

FX Board: USD trying to spread its wings

The US dollar picked up the pace again today after an early dip, with a new low for the cycle in GBPUSD coming alongside a rise in dollar/yen. To

The Energy Report: In The Eye of the Storm

Crude oil prices are just shy of $50.00 as Hurricane Matthew is barreling towards the East Coast. U.S. oil supply continues to fall and OPEC and

Grain Traders Positioning For Next Move

Good Morning! Paul Georgy with the early morning commentary for October 6, 2016 Grain markets are mostly lower as weather forecasts open up for

Strong NFP could see USD rally for real

After a head-spinning comeback in the ISM non-manufacturing survey in September, a November Federal Reserve rate hike could even be in play if

E-Mini S&P 500: Signs of strength!

The ADP is often viewed as a precursor to the Friday Employment report. The ADP Employment Report for September was 154,000 while the previous

The Energy Report: Goodbye Oil Glut

While global markets are worried about EU tapering and the possibility off a hard Brexit, oil seems oblivious to those threats as the US oil glut is

BT Morning Call for October 5

OVERNIGHT MARKETS AND NEWS Dec E-mini S&Ps (ESZ16 +0.01%) are down -0.08% and European stocks are down -0.65% on the prospects for tighter Fed

Money On The Move Support Grains

Good Morning!Paul Georgy with the early morning commentary forOctober 5, 2016 Grain marketsare mixed as global supplies continue to grow. The US