December 23, 2016 – TGIF Edition- Stock Market News

December 23, 2016 – TGIF Edition- Stock Market News

Overnight Markets and News

Mar E-mini S&Ps (ESH17 -0.04%) are unchanged in thin pre-holiday trade and European stocks are up +0.04% on strength in bank stocks led by a nearly 3% increase in Deutsche Bank after it agreed to pay $7.2 billion to resolve a years-long U.S. investigation into its dealings in mortgage-backed securities. Also, Italian bank stocks rallied after the government said it will put as much as 20 billion euros ($21 billion) into the country’s banks. GBP/USD fell -0.24% to a 1-1/2 month low, despite UK Q3 GDP being revised higher, on concern Article 50 of Brexit will be triggered early next year. Asian stocks settled mostly lower: Japan closed for holiday, Hong Kong -0.28%, China -0.94%, Taiwan -0.44%, Australia -0.28%, Singapore -0.38%, South Korea -0.14%, India +0.24%. Concerns over capital outflows pressured Chinese stocks, while a -1.10% slide in Feb WTI crude oil prices (CLG17 -1.10%) undercuts energy producing stocks.

The dollar index (DXY00 -0.10%) is down -0.08%. EUR/USD (^EURUSD) is up +0.11%. USD/JPY (^USDJPY) is down -0.14%.

Mar 10-year T-note prices (ZNH17 +0.08%) are up +2.5 ticks.

UK Q3 GDP was revised upward to +0.6% q/q from the previously reported +0.5% q/q.

German Jan GfK consumer confidence rose +0.1 to 9.9, right on expectations.

U.S. Stock Preview

Key U.S. news today includes: (1) Nov new home sales (expected +2.1% to 575,000, Oct -1.9% to 563,000), (2) final-Dec University of Michigan U.S. consumer sentiment index (expected unch at 98.0, prelim-Dec +4.2 to 98.0), (3) USDA Nov Cattle on Feed, (4) USDA Q4 Hogs & Pigs inventory, (5) USDA Nov Cold Storage.

Russell 1000 earnings reports today include: none.

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

Equity conferences this week: none.

Market Comments

Mar E-mini S&Ps (ESH17 -0.04%) this morning are unch. Thursday’s closes: S&P 500 -0.19%, Dow Jones -0.12%, Nasdaq -0.29%. The S&P 500 on Thursday closed lower on the +21,000 increase in U.S weekly jobless claims to 275,000 (more than expectations of +3,000 to 257,000 and the most in 6 months) and the weaker than expected U.S. Nov personal spending report of +0.2% and personal income report of unchanged.

Mar 10-year T-notes (ZNH17 +0.08%) this morning are up +2.5 ticks. Thursday’s closes: TYH7 -1.50, FVH7 -0.50. Mar 10-year T-notes on Thursday closed lower on the stronger-than-expected upward revision to U.S. Q3 GDP to 3.5% (q/q annualized), the fastest pace of growth in 2-years, and on the stronger-than-expected U.S. Nov durable goods orders report.

The dollar index (DXY00 -0.10%) this morning is down -0.080 (-0.08%). EUR/USD (^EURUSD) is up +0.0011 (+0.11%). USD/JPY (^USDJPY) is down -0.16 (-0.14%). Thursday’s closes: Dollar index +0.070 (+0.07%), EUR/USD +0.0013 (+0.12%), USD/JPY -0.01 (-0.01%). The dollar index on Thursday closed slightly higher on the stronger-than-expected upward revision for U.S. Q3 GDP and the stronger-than-expected U.S. Nov durable goods orders report. The dollar was undercut by the weaker-than-expected U.S. Nov personal spending and personal income data.

Feb WTI crude oil prices (CLG17 -1.10%) this morning are down -58 cents (-1.10%) and Feb gasoline (RBG17 -1.41%) is -0.0243 (-1.50%). Thursday’s closes: Feb crude +0.16 (+0.39%), Feb gasoline -0.0060 (-0.37%). Feb crude oil and gasoline on Thursday settled mixed. Crude oil prices were boosted by the stronger-than-expected U.S. Q3 GDP report and by comments from Iraqi Oil Minister Jabbar al-Luaibi who said the Kurdish region of Iraq also agreed to cut its crude oil output. Crude oil prices were undercut by the stronger dollar.

Overnight U.S. Stock Movers

FedEx (FDX -0.64%) was initiated with a ‘Buy’ at Aegis Capital wih a 12-month target price of $215.

Time Warner (TWX +0.49%) was downgraded to ‘Hold’ from ‘Buy’ at Brean Capital.

Cal-Maine Foods (CALM -1.64%) gained over 1% in after-hours trading after it reported a Q2 loss of -48 cents per share, right on expectations.

Lockheed Martin (LMT +0.11%) slid 2% in after-hours trading after President-elect Trump said that based on tremendous cost and cost overruns he asked Boeing to price-out a comparable F-18 Super Hornet jet.

Global Partners LP (GLP +13.74%) was upgraded to ‘Buy’ from ‘Hold’ at Stifel with a 12-month target price of $19.

Fred’s (FRED -4.77%) rose over 6% in after-hours trading after Alden Global Capital reported a 24.8% stake in the company.

GameStop (GME -5.04%) was initiated with a ‘Buy’ by Mizuho Securities with a 12-month target price of $35.

Cintas (CTAS +0.49%) dropped 3% in after-hours trading after it reported Q2 continuing operations EPS of $1.13, below consensus of $1.15.

Progenics Pharmaceuticals (PGNX -0.23%) jumped 7% in after-hours trading after an independent review of its Phase 3 clinical trial of agent 1404 for treatment of prostate cancer recommended a continuation of the trial.

Synergy Pharmaceuticals (SGYP -1.46%) climbed nearly 3% in after-hours trading after the company said its Phase 3 trial of its plecanatide met primary endpoints in treatment of chronic idiopathic constipation.

Ref: Barchart

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