Morning Call: U.S. and European stocks lower ahead of today's meeting on trade between President Trump and European Commission President Juncker; Sep E-mini S&Ps down -0.11%; Dollar index down -0.12%.
Barchart.com - Wed Jul 25, 6:35AM CDT
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 ESU18 - S&P 500 E-Mini
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DXY0096.292+0.191+0.20%
ZNU18120-110+0-030+0.08%
GCQ181,184.8+8.3+0.71%
SIU1814.795+0.164+1.12%
HGU182.6750+0.0460+1.75%
CLU1866.06+0.15+0.23%
RBU181.9862+0.0053+0.27%
FCAU15.77+0.16+1.02%
NXPI89.77+0.13+0.15%
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IRBT94.77+4.92+5.48%
SYK169.98+1.29+0.76%
IEX152.12+0.09+0.06%
MKSI88.90-1.30-1.44%
USNA129.50+0.60+0.47%
TXN109.64+0.24+0.22%
RHI76.96-1.13-1.45%
VICR59.45-1.20-1.98%
RDUS19.99-1.29-6.06%
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Overnight Markets and News

Sep E-mini S&Ps (ESU18 -0.14%) this morning are down -0.11% and European stocks are down -0.21% ahead of key trade talks between President Trump and European Commission President Jean-Claude Juncker. NXP Semiconductors NV is down almost 2% in pre-market trading after Reuters reported that Qualcomm is unlikely to get Chinese approval on its acquisition of NXP Semiconductors and is making preparations to pay NXP Semiconductors the $2 billion termination fee. Losses in European stocks were contained after the German Jul IFO business confidence fell less than expected. Asian stocks settled mixed: Japan +0.46%, Hong Kong +0.90%, China -0.07%, Taiwan -0.27%, Australia -0.29%, Singapore +1.04%, South Korea -0.22%, India +0.09%. Asian stocks found support on improved market sentiment due to better-than-expected S&P 500 company quarterly earnings results that pushed the S&P 500 up to a 5-3/4 month high Tuesday.

The dollar index (DXY00 -0.13%) is down -0.12%. EUR/USD (^EURUSD +0.06%) is up +0.04%. USD/JPY (^USDJPY -0.08%) is down -0.09%.

Sep 10-year T-note prices (ZNU18 +0-015) are up +1 tick.

The German Jul IFO business climate fell -0.1 to 101.7, stronger than expectations of -0.3 to 101.5.

The Eurozone Jun M3 money supply rose +4.4% y/y, stronger than expectations of +4.0% y/y and the biggest increase in 5 months.

UK Jul CBI retailing reported sales fell -12 to 20, stronger than expectations of -17 to 15.

U.S. Stock Preview

Key U.S. news today includes: (1) weekly MBA mortgage applications (previous -2.5% to 363.6 with purchase sub-index down -5.2% to 247.9 and refi sub-index up +2.2% to 979.6), (2) Jun new home sales (expected -3.0% to 669,000, May +6.7% to 689,000), (3) EIA weekly Petroleum Status Report, (4) Treasury auctions $18 billion of 2-year floating-rate notes and $36 billion 5-year T-notes.

Notable S&P 500 earnings reports today include: Facebook (consensus $1.71), Visa (1.09), UPS (1.93), GM (1.77), Coca-Cola (0.60), Boeing (3.25), AMD (0.13), PayPal (0.57), Ford (0.31).

U.S. IPO's scheduled to price today: Focus Financial Partners (FOCS), Liquidia Technologies (LQDA), Berry Petroleum Corp (BRRP), Cango Inc (CANG), Aurora Mobile (JG), Tenable Holdings (TENB), Aquestive Therapeutics (AQST), Pinduoduo (PDD).

Equity conferences during the remainder of this week: Google Cloud Next 18 on Tue-Thu


Market Comments

Sep S&P 500 E-minis (ESU18 -0.14%) this morning are down -3.00 points (-0.12%). Tuesday's closes: S&P 500 +0.48%, Dow Jones +0.79%, Nasdaq 100 +0.47%. The S&P 500 on Tuesday rose to a 5-3/4 month high on positive economic data as the U.S. Jul Markit manufacturing PMI unexpectedly rose +0.1 to 55.5, stronger than expectations of -0.3 to 55.1. In addition, energy stocks showed strength as crude oil prices climbed +0.93% and mining stocks showed strength as copper prices rose +2.33% to a 2-week high.

Sep 10-year T-notes (ZNU18 +0-015) this morning are up +1 tick. Tuesday's closes: TYU8 +2.50, FVU8 +1.25. Sep 10-year T-notes on Tuesday rebounded from a 1-1/4 month low and closed higher on strong demand for the Treasury's $35 billion auction of 2-year T-notes that had a bid-to-cover ratio of 2.92, above the 12-auction average of 2.82 and the highest in 6 months. T-note prices were also supported by global trade tensions after President Trump said that "tariffs are the greatest."

The dollar index (DXY00 -0.13%) this morning is down -0.116 (-0.12%), EUR/USD (^EURUSD +0.06%) is up +0.0005 (+0.04%) and USD/JPY (^USDJPY -0.08%) is down -0.10 (-0.09%). Tuesday's closes: Dollar Index -0.061 (-0.06%), EUR/USD -0.0032 (-0.27%), USD/JPY -0.06 (-0.05%). The dollar index on Tuesday closed little changed. The dollar index was undercut by the decline in T-note yields, which undercut the dollar's interest rate differentials. There was also long liquidation in the dollar ahead of Wednesday's meeting on trade between President Trump and European Commission President Juncker. The dollar found support on the mildly stronger-than-expected U.S. Jul Markit manufacturing PMI report.

Metals this morning are mixed with Aug gold (GCQ18 +0.47%) +5.0 (+0.41%), Sep silver (SIU18 +0.48%) +0.065 (+0.42%), and Sep copper (HGU18 -0.11%) -0.002 (-0.07%). Tuesday's closes: Aug gold -0.1 (-0.01%), Sep silver +0.095 (+0.62%), Sep copper +0.0640 (+2.33%). Metals on Tuesday settled mixed with Sep copper at a 2-week high. Metals prices were supported by a weaker dollar and by the stronger-than-expected manufacturing data from U.S. and Europe, which was positive for industrial metals demand. Copper prices were supported by news that LME copper inventories fell -275 MT to a 6-month low of 214,425 MT.

Sep WTI crude oil prices (CLU18 -0.18%) this morning are down -8 cents (-0.12%) and Sep gasoline (RBU18 +0.84%) is up +1.58 cents (+0.77%). Tuesday's closes: Sep crude +0.63 (+0.93%), Sep gasoline +0.59 (+0.29%). Sep crude oil and gasoline on Tuesday closed higher with Sep gasoline at a 1-week high. Crude oil prices were supported by expectations for Wednesday's EIA crude inventories to fall -3.0 million bbl and by an increase in the crack spread to a 1-month high, which provides added incentive for refiners to boost crude purchases to refine the crude into gasoline.

Overnight U.S. Stock Movers

Fiat Chrysler Automobiles NV (FCAU +1.58%) dropped 4% in pre-market trading after it reported Q2 adjusted Ebit of 1.66 billion euros, below consensus of 2.02 billion euros.

NXP Semiconductos NV (NXPI -4.22%) is down nearly 2% in pre-market trading after Reuters reported that Qualcomm is unlikely to get Chinese approval on its acquisition of NXP Semiconductors and is making preparartions to pay NXPI the $2 billion termination fee.

Lululemon Athletica (LULU -1.91%) gained 1% in after-hours trading after it named Calvin McDonald, former top executive of Sephora, as CEO effective August 20.

iRobot (IRBT -2.81%) surged almost 20% in after-hours trading after it reported Q2 revenue of $226.3 million, higher than consensus of $220.4 million.

Stryker (SYK -1.01%) fell 2% in after-hours trading after it forecast Q3 adjusted EPS of $1.65 to $1.70, the midpoint below consensus of $1.69.

IDEX (IEX +1.56%) rose 3% in after-hours trading after it reported Q2 adjusted EPS of $1.40, above consensus of $1.31, and then forecast full-year adjusted EPS of $5.27 to $5.35, higher than consensus of $5.18.

MKS Instruments (MKSI -2.49%) fell 4% in after-hours trading after it forecast Q3 sales of $470 million to $510 million, weaker than consensus of $522.5 million.

USANA Health Sciences (USNA -0.77%) jumped almost 12% in after-hours trading after it reported Q2 EPS of $1.36, higher than consensus of $1.11, and then forecast full-year EPS of $4.75 to $5.05, the midpoint well above consensus of $4.56.

Texas Instruments (TXN -0.76%) gained almost 1% in after-hours trading after it reported Q1 revenue of $4.02 billion, better than consensus of $3.97 billion, and then forecast Q3 revenue of $4.11 billion to $4.45 billion, the midpoint above consensus of $4.25 billion.

Robert Half International (RHI -0.12%) rose almost 5% in after-hours trading after it forecast Q3 income/share of 88 cents to 94 cents, higher than consensus of 87 cents.

Vicor (VICR -1.19%) climbed more than 8% in after-hours trading after it reported Q2 bookings increased to $87.4 million from $59.4 million y/y.

Radius Health (RDUS -2.36%) lost almost 6% in after-hours trading it said the CHMP panel of the European Medicines Agency will maintain its negative opinion at its formal final vote of its abaloparatide-SC for treatment of osteoporosis in postmenopausal women.

Knowles (KN +0.26%) rose more than 5% in after-hours trading after it reported Q2 adjusted EPS of 18 cents, better than consensus of 13 cents, and then forecast Q3 adjusted EPS of 27 cents to 33 cents, the mid-point above consensus of 29 cents.

Navient (NAVI +0.28%) dropped 7% in after-hours trading after it reported Q2 GAAP net income of $83 million versus $112 million y/y.

ViewRay (VRAY -3.24%) rallied 7% in after-hours trading after it reported Q2 revenue of $16 million, higher than consensus of $12.5 million.