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06 Jan 2017 07:16 GMT+0 - Opening Wrap

In Asian Equity Markets Japan's Nikkei fell on Friday as automakers dragged after incoming U.S President Donald Trump threatened to slap punitive taxes on Toyota cars imported into the United States from Mexico, while Fast Retailing weighed on the market. The Nikkei fell 0.3 percent to 19,454.33. For the week, it was up 1.8 percent. The broader Topix lost 0.2 percent to 1,553.32 and the JPX-Nikkei Index 400 fell 0.2 percent to 13,928.49. The MSCI's ex-Japan Asia-Pacific stocks index hit four-week high before paring gains to stand little changed. It has gained 2.7 percent in the first week of 2017. The Shanghai Composite Index fell 0.05 percent, while Hong Kong's Hang Seng Index was last up 0.45 percent. 

 

In Currency Markets the dollar crawled up on Friday as the dust settled from its tumble overnight to a three-week low, although gains were limited ahead of the U.S. non-farm payrolls due out later in the session. The greenback was up 0.4 percent at 115.825 yen after falling 1.6 percent overnight. The euro was down 0.2 percent at $1.0584 after rallying 1.3 percent the previous day to pull away from a 14-year trough of $1.0340 set on Tuesday. The Australian dollar nudged down 0.2 percent to $0.7327 after gaining 0.7 percent overnight, when it touched a three-week high of $0.7356. The New Zealand dollar inched down 0.1 percent to $0.7017 after climbing to a three-week peak of $0.7040. The dollar index was up 0.1 percent at 101.610. 

 

In Commodities Markets oil prices were steady on Friday as the start of supply cuts by Saudi Arabia and Abu Dhabi supported the market, but doubts that all producers will implement output reductions agreed in a landmark deal last year kept markets from rising further. Brent crude futures were trading at $56.85 per barrel, down 4 cents from their close the previous day. In the United States, West Texas Intermediate crude futures were at $53.74 a barrel, two cents below their last settlement. Spot gold eased 0.3 percent to $1,176.36 per ounce and spot silver fell 0.8 percent to $16.42. Platinum was down 0.9 percent at $959.24. Palladium was down nearly 0.3 percent at $736.72, after hitting a 4-week high of $747.80 on Thursday.

 

In US Equity Markets  the Nasdaq squeaked out a record high close on Thursday thanks to Amazon.com, while deep falls in Macy's, Kohl's and other department stores weighed on the broader stock market. The Dow Jones Industrial Average lost 0.21 percent to end at 19,899.29 while the S&P 500 lost 0.08 percent to 2,269. The Nasdaq Composite rose 0.2 percent to end at 5,487.94. Department stores Macy's fell 13.89 percent while Kohl's lost 19.02 percent after the companies said their holiday sales fell more than expected. The warnings swept up other department stores in their wake - Nordstrom  fell 6.87 percent and J.C. Penney fell 7.20 percent. Online retailer Amazon.co rose 3.07 percent. 

 

In Bond Markets the Japanese government bond prices rose on Friday, lifted by overnight gains in U.S. Treasuries and a debt-buying operation by the Bank of Japan. The 20-year JGB yield and the 30-year yield both fell by 1.5 basis points to 0.595 percent and 0.745 percent, respectively. The benchmark 10-year yield stood flat at 0.055 percent amid caution towards the U.S. non-farm payrolls report due later in the day. The 10-year U.S. Treasuries yield hit a one-month low of 2.344 percent, having fallen about 30 basis points from its two-year high of 2.641 percent touched on Dec. 15.

 

 

Economic Calendar

  • 14:30 GMT+0 CAD Employment Change
  • 14:30 GMT+0 CAD Trade Balance
  • 14:30 GMT+0 CAD Unemployment Rate
  • 14:30 GMT+0 CAD Average Hourly Earnings m/m
  • 14:30 GMT+0 US Non-Farm Employment Change
  • 14:30 GMT+0 US Unemployment Rate

 

US Equity Earnings

  • Constellation Brands (STZ) - Q1 Adj. EPS USD 1.98 vs. Exp. USD 1.70 and revenue USD 1.81bln vs. Exp. USD 1.78bln.
  • Monsanto (MON) - Q1 Adj. EPS USD 0.21 vs. USD 0.00 and revenue USD 2.65bln vs. Exp. USD 2.22bln.
  • Walgreens Boots Alliance (WBA) - Q1 Adj. EPS USD 1.10 vs. Exp. USD 1.09Íž Co. raise the lower end of their FY17 guidance by USD 0.05/shr and report Q1 sales USD 28.5bln vs. Exp. USD 29.24bln.

 

US Equity Upgrades

  • C.R. BARD (BCR) UPGRADED TO STRONG BUY FROM OUTPERFORM AT RAYMOND JAMES
  • CAMDEN PROPERTY (CPT) UPGRADED TO NEUTRAL FROM UNDERWEIGHT AT MUFG
  • CULLEN/FROST (CFR) UPGRADED TO NEUTRAL FROM UNDERWEIGHT AT JPMORGAN
  • DCP MIDSTREAM (DPM) UPGRADED TO BUY FROM HOLD AT STIFEL
  • DELEK US (DK) UPGRADED TO NEUTRAL FROM UNDERPERFORM AT BOFA/MERRILL
  • FIRST HORIZON (FHN) UPGRADED TO OVERWEIGHT FROM NEUTRAL AT JPMORGAN
  • MASTERCARD (MA) UPGRADED TO TOP PICK FROM OUTPERFORM AT RBC CAPITAL
  • MONOGRAM RESIDENTIAL TRUST (MORE) UPGRADED TO OVERWEIGHT FROM NEUTRAL AT MUFG
  • PROGRESSIVE (PGR) UPGRADED TO EQUAL WEIGHT FROM UNDERWEIGHT AT MORGAN STANLEY
  • PURE STORAGE (PSTG) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT BMO CAPITAL
  • RAYMOND JAMES (RJF) UPGRADED TO BUY FROM NEUTRAL AT NOMURA
  • SOUTHWEST (LUV) UPGRADED TO OVERWEIGHT FROM EQUAL WEIGHT AT MORGAN STANLEY
  • TD AMERITRADE (AMTD) UPGRADED TO BUY FROM NEUTRAL AT NOMURA
  • VALERO (VLO) UPGRADED TO BUY FROM NEUTRAL AT BOFA/MERRILL
  • WELLTOWER (HCN) UPGRADED TO OVERWEIGHT FROM NEUTRAL AT MUFG
  • WESTERN DIGITAL (WDC) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT BMO CAPITAL

 

US Equity Downgrades

  • AGREE REALTY (ADC) DOWNGRADED TO HOLD FROM BUY AT JEFFERIES
  • BECTON DICKINSON (BDX) DOWNGRADED TO OUTPERFORM FROM STRONG BUY AT RAYMOND JAMES
  • BJ'S RESTAURANTS (BJRI) DOWNGRADED TO UNDERPERFORM FROM NEUTRAL AT WEDBUSH
  • BRF S.A. (BRFS) DOWNGRADED TO HOLD FROM BUY AT DEUTSCHE BANK
  • COVENANT TRANSPORTATION (CVTI) DOWNGRADED TO HOLD FROM BUY AT STIFEL
  • DCP MIDSTREAM (DPM) DOWNGRADED TO SECTOR PERFORM FROM OUTPERFORM AT RBC CAPITAL
  • ENDO (ENDP) DOWNGRADED TO NEUTRAL FROM BUY AT CITI
  • GREENHILL & CO. (GHL) DOWNGRADED TO REDUCE FROM NEUTRAL AT NOMURA
  • INTERPUBLIC GROUP (IPG) DOWNGRADED TO EQUAL WEIGHT FROM OVERWEIGHT AT MORGAN STANLEY
  • KOHL'S (KSS) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT TELSEY ADVISORY
  • KOHL'S (KSS) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT BAIRD
  • LAZARD (LAZ) DOWNGRADED TO NEUTRAL FROM BUY AT NOMURA
  • LA-Z-BOY (LZB) DOWNGRADED TO MARKET PERFORM FROM STRONG BUY AT RAYMOND JAMES
  • LIFE STORAGE (LSI) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT BAIRD
  • LTC PROPERTIES (LTC) DOWNGRADED TO NEUTRAL FROM OVERWEIGHT AT MUFG
  • MACY'S (M) DOWNGRADED TO HOLD FROM BUY AT DEUTSCHE BANK
  • MCKESSON (MCK) DOWNGRADED TO NEUTRAL FROM OVERWEIGHT AT JPMORGAN
  • MYLAN (MYL) DOWNGRADED TO NEUTRAL FROM BUY AT CITI
  • P.A.M. TRANSPORTATION (PTSI) DOWNGRADED TO HOLD FROM BUY AT STIFEL
  • PENN NATIONAL (PENN) DOWNGRADED TO NEUTRAL FROM OVERWEIGHT AT JPMORGAN
  • PNM RESOURCES (PNM) DOWNGRADED TO HOLD FROM BUY AT JEFFERIES
  • PUBLIC STORAGE (PSA) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT BAIRD
  • SHERWIN-WILLIAMS (SHW) DOWNGRADED TO NEUTRAL FROM BUY AT LONGBOW
  • TERRENO REALTY (TRNO) DOWNGRADED TO NEUTRAL FROM OVERWEIGHT AT MUFG
  • TRAVELERS (TRV) DOWNGRADED TO UNDERWEIGHT FROM EQUAL WEIGHT AT MORGAN STANLEY
  • UNITED CONTINENTAL (UAL) DOWNGRADED TO EQUAL WEIGHT FROM OVERWEIGHT AT MORGAN STANLEY
  • UNIVERSAL LOGISTICS (ULH) DOWNGRADED TO HOLD FROM BUY AT STIFEL

 

US Equity Initiations

  • ADOBE (ABDE) INITIATED WITH AN OUTPERFORM AT BMO CAPITAL
  • ATLASSIAN (TEAM) INITIATED WITH A MARKET PERFORM AT BMO CAPITAL
  • BLACKHAWK (HAWK) INITIATED WITH A NEUTRAL AT GUGGENHEIM
  • CHECK POINT (CHKP) INITIATED WITH A MARKET PERFORM AT BMO CAPITAL
  • COMMERCIAL METALS (CMC) INITIATED WITH A BUY AT DEUTSCHE BANK
  • FIREEYE (FEYE) INITIATED WITH A MARKET PERFORM AT BMO CAPITAL
  • GREAT PLAINS ENERGY (GXP) INITIATED WITH A NEUTRAL AT UBS
  • GREEN DOT (GDOT) INITIATED WITH A BUY AT GUGGENHEIM
  • HCP (HCP) REINSTATED WITH AN EQUAL WEIGHT AT BARCLAYS
  • HILTON GRAND VACATIONS (HGV) INITIATED WITH A NEUTRAL AT GOLDMAN
  • PALO ALTO NETWORKS (PANW) INITIATED WITH A MARKET PERFORM AT BMO CAPITAL
  • PARK HOTELS & RESORTS (PK) INITIATED WITH A NEUTRAL AT GOLDMAN
  • PAYPAL (PYPL) INITIATED WITH A BUY AT GUGGENHEIM
  • SYNERGY PHARMACEUTICALS (SGYP) INITIATED WITH AN OUTPERFORM AT OPPENHEIMER
  • TREVENA (TRVN) INITIATED WITH AN OUTPERFORM AT OPPENHEIMER
  • WESTERN UNION (WU) INITIATED WITH A NEUTRAL AT GUGGENHEIM

 

 

 


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