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EU Market Open: July 20, 2016

Published 20/07/2016, 10:54
Updated 09/07/2023, 11:32

Asia Market News
Profit taking on Wednesday after a record run on Wall Street showed signs of slowing down the positive run recently experienced. Stocks rose in Hong Kong but retreated in South Korea and China. The Nikkei fell 0.7% to 16,608.32.

Currency Market News
Strong U.S. data and rising expectations that the Bank of Japan will take additional easing steps allowed the USD to strengthen against several other currencies but weakened against the yen.. The USD/JPY edged down 0.2% against the yen to 105.96 yen. The EUR/USD was last down 0.1% at $1.1013.

Commodity Market News

Crude oil futures rose in early trading on Wednesday but gains were limited and U.S. crude traded sideways in advance of the release of official weekly inventory figures later in the day. Brent crude was up 18 cents at $46.84 a barrel. U.S. West Texas Intermediate crude was up 4 cents at $44.69 a barrel, after initially trading higher then falling. U.S. crude rose earlier after industry group the American Petroleum Institute reported crude stockpiles fell by 2.3 million barrels last week. Spot gold was up 0.1% at $1,332.81 an ounce.

US Market News
The S&P 500 pulled back from record highs on Tuesday as investors digested mixed earnings reports amid lowered expectations for global economic growth. The S&P 500 lost 0.14%, to 2,163.78. Netflix (NASDAQ:NFLX) fell 13.1% after its subscriber numbers missed estimates. Stocks of health insurers were stung by reports that U.S. antitrust officials plan to block Anthem’s (NYSE:ANTM) acquisition of Cigna (NYSE:CI) and Aetna’s (NYSE:AET) takeover of Humana (NYSE:HUM). Goldman Sachs (NYSE:GS) lost 1.2%, with most of its businesses under pressure even as the bank reported a higher quarterly profit.

US Equity Earnings

  • EMC (NYSE:EMC) – Q2 EPS USD 0.45 vs. Exp. USD 0.42 and Q2 revenue USD 6.02bln vs. Exp. USD 6bln.
  • Goldman Sachs (GS) – Q2 EPS USD 3.72 vs. Exp. USD 3.08, Q2 net revenue USD 7.93bln vs. Exp. USD 7.55bln, Q2 FICC Sales and Trading revenue USD 1.93bln vs. Exp. USD 1.80bln and Q2 AUM USD 1.31trln.
  • IBM (NYSE:IBM) – Q2 EPS USD 2.95 vs. Exp. USD 2.89 and Q2 revenue USD 20.24bln vs. Exp. USD 20.03bln.
  • Johnson & Johnson (NYSE:JNJ) – Q2 Adj. EPS USD 1.74 vs. Exp. USD 1.68, Q2 sales USD 18.5bln vs. Exp. USD 18.0bln and Q2 remicade revenue USD 1.78bln vs. Exp. USD 1.71bln.
  • Lockheed Martin (NYSE:LMT) – Q2 Adj. EPS USD 3.32 vs. Exp. USD 2.93 (May not compare), Q2 net sales USD 12.90bln vs. Exp. USD 12.58bln and the Co. boosts 2016 outlook for EPS, sales and operating profit.
  • Netflix (NFLX) – Q2 EPS USD 0.09 vs. Exp. USD 0.03, Q2 revenue USD 1.97bln vs. Exp. USD 2.11bln, Q2 international streaming net ads 1.52mln vs. Exp. USD 2.15mln, Q2 domestic steaming net ads 160K vs. Exp. 509K and forecast Q3 international streaming net adds 2mln vs. Exp. 2.54mln.
  • Philip Morris (NYSE:PM) – Q2 EPS USD 1.15 vs. Exp. USD 1.19 and Q2 revenue USD 6.65bln vs. Exp. USD 6.77bln.
  • Prologis (NYSE:PLD) – Q2 EPS USD 0.60 vs. EXP. USD 0.59 and Q2 revenue USD 0.602bln vs. Exp. USD 0.59bln.
  • UnitedHealth (NYSE:UNH) – Q2 EPS USD 1.96 vs. Exp. USD 1.89, Q2 revenue USD 46.5bln vs. Exp. USD 45.4bln and forecast FY Adj. EPS USD 7.80-7.95 vs. Prev. USD 7.75-7.95 vs. Exp. USD 7.89.
  • VMWare (NYSE:VMW) – Q2 GAAP EPS USD 0.97 vs. Exp. USD 0.95 and Q2 free cash flow USD 539mln.
  • Yahoo! (NASDAQ:YHOO) – Q2 EPS USD 0.09 vs. Exp. USD 0.10, Q2 revenue USD 1.31bln vs. Exp. USD 1.08bln, Q2 price-per-click rose 8% and recorded a non-cash goodwill impairment charge of USD 395mln in Q2.

Bond Market News
U.S. Treasury debt prices gained on Tuesday as risk appetite waned following declines in stocks, hurt by the fall in oil prices as well as soft consumer sentiment data in Germany. In late trading, benchmark U.S. 10-year Treasury notes were up 8/32 in price for a yield of 1.557 percent, down from 1.587 percent late on Monday. U.S. 30-year bond prices were higher as well, up 19/32 in price, yielding 2.2746 percent, down from 2.302 percent late Monday. U.S. two-year notes were little changed in price, with a yield of 0.693 percent, while U.S. five-year notes were up 3/32 in price, yielding 1.11 percent.

Economic Calendar

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