Morning Call For August 17, 2015


OVERNIGHT MARKETS AND NEWS

September E-mini S&Ps (ESU15 -0.08%) are down -0.08% as weaker oil prices (CLU15 -1.53%) undercuts energy producers and leads the overall market lower with Chevron down -1.3% in pre-market trading. European stocks are up +0.42% after Chinese stocks closed higher and as Greek stocks rose after German Chancellor Merkel said she’s confident the IMF will join Greece’s third bailout if debt relief for Greece is included. Germany’s lower house votes on the bailout on Wednesday and Merkel said that IMF Managing Director Lagarde made it clear she will back the IMF’s participation in Greece’s third bailout if conditions are met including an easing of terms on previous Greek aid loans. European automakers rose, led by a +1.5% gain in BMW AG, after Barclays Plc raised its rating on the stock to the equivalent of a buy. Asian stocks closed mixed: Japan +0.42%, Hong Kong -0.74%, China +0.71%, Taiwan -1.11%, Australia +0.21%, Singapore -1.51%, South Korea -0.82%, India -0.67%. Japanese stocks rose after Japan’s Q2 GDP contracted less than expected, and Chinese stocks closed higher as the yuan stabilized.

The dollar index (DXY00 +0.26%) is up +0.23%. EUR/USD (^EURUSD) is down -0.22%. USD/JPY (^USDJPY) is up +0.19%.

Sep T-note prices (ZNU15 +0.15%) are up +5.5 ticks.

Japan Q2 GDP fell -1.6% q/q annualized, better than expectations of -1.8% q/q annualized, but still the steepest pace of contraction in a year. The Q2 GDP deflator rose +1.6% y/y, less than expectations of +2.1% y/y and the slowest pace of increase since Q1 of 2014.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Aug Empire manufacturing survey of general business conditions (expected +0.94 to 4.80, Jul +5.84 to 3.86), (2) Aug NAHB housing market index (expected +1 to 61, Jul unch at 60).

There are 3 of the Russell 1000 companies that reports earnings today: Estee Lauder (consensus $0.34), Urban Outfitters (0.49), Agilent Technologies (0.41).

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