Economic Events and Earnings for September 9

Published: Mon, 09/08/14

The stock market started the first full week of September on a cautious note. The S&P 500 lost 0.3%, but the relative strength of small cap stocks helped the Russell 2000 (+0.2%) and Nasdaq Composite (+0.2%) finish ahead of the benchmark index. 

Equity indices struggled from the get-go with the overall risk sentiment dampened by continued dollar strength that sent the US Dollar Index (+0.54, 84.28) near its best level of the year. The greenback surged on the back of yen weakness following a downward revision to Japan's Q2 GDP (to -7.1% from -6.8%), while also drawing strength from weakness in  the British  pound. The pound fell to 1.6110 from 1.6330 against the greenback after a weekend YouGov poll revealed majority support for Scottish independence with the referendum coming up on September 18. 

Conversely, the dollar strength weighed on commodities with gold futures falling 0.9% to $1255.80/ozt. Similarly, crude oil also retreated, testing its 2014 low, before narrowing its loss to 0.7% by the pit close. The energy component settled at $92.64/bbl, but continued its rebound in electronic trading. 

The early weakness in crude contributed to a defensive start for the energy sector (-1.6%), which ended near its worst level of the session. Dow components  Chevron ( CVX 126.21, -1.19) and ExxonMobil (XOM  97.77, -1.49) posted respective losses of 0.9% and 1.5% as the stronger dollar and cheaper oil weighed on earnings prospects of the two multinational giants. 

Energy notwithstanding, other sectors ended much closer to their flat lines. The consumer discretionary sector (-0.5%) weighed amid weakness in the shares of Ford (F  16.80, -0.34) and General Motors (GM 33.24, -1.04) after Morgan Stanley downgraded the U.S. auto sector. 

Elsewhere, the consumer staples sector (-0.6%) was pressured by  Campbell Soup ( CPB 43.39, -1.15), which fell 2.6% in reaction to an in-line report and disappointing guidance. Manufacturers of cosmetics also lagged after the CEO of L'Oreal (LRLCY  32.60, -0.73) made cautious comments about the industry. Peers Avon Products (AVP13.66, -0.18) and Estee Lauder  (EL 75.59, -1.19) lost 1.3% and 1.6%, respectively. 

On the upside, the technology sector (+0.2%) outperformed throughout the session, which underpinned the Nasdaq. Top-weighted components like Google (GOOGL  601.63, +3.85), Microsoft (MSFT 46.47, +0.56), and Intel  (INTC35.33, +0.33) posted gains between 0.6% and 1.2%, while the top index member by weight-Apple ( AAPL 98.35, -0.62)-lost 0.6%. 

High-beta Nasdaq components also provided a measure of support with the  PHLX  Semiconductor Index adding 0.2% and the iShares Nasdaq Biotechnology ETF (IBB 273.06, +2.46) climbing 0.9%. Meanwhile, the broader health care sector (+0.1%) ended just above its flat line. 

Treasuries rallied overnight, but spend the day in a steady retreat. The 10-yr note shed four ticks to boost its yield to 2.47%. 

Participation remained light with fewer than 590 million shares changing hands at the  NYSE floor.

Economic data was limited to the Consumer Credit report for July, which pointed to a $26.00 billion increase from an upwardly revised $18.80 billion (from $17.30 billion) in June, while the Briefing.com consensus expected an increase of $17.40 billion. 

Tomorrow's data will be limited to the Job Openings and Labor Turnover Survey, which will be released at 10:00 ET. 
Economic Events

Time Cur. Imp. Event Actual Forecast Previous
Tuesday, September 9
07:30   USD NFIB Small Business Optimism   95.9 95.7  
07:45   USD Chain Store Sales (YoY)     4.8%  
07:45   USD Chain Store Sales (WoW)     0.0%  
08:55   USD Redbook (MoM)     0.7%  
08:55   USD Redbook (YoY)     4.9%  
10:00   USD FOMC Member Tarullo Speaks          
10:00   USD JOLTs Job Openings   4.72M 4.67M  
11:30   USD 4-Week Bill Auction     0.015%  
13:00   USD 3-Year Note Auction     0.924%  
16:30   USD API Weekly Crude Stock     -0.545M  
16:30   USD API Weekly Distillates Stocks     0.385M  
16:30   USD API Weekly Gasoline Stock     0.362M  

Earnings Reports for Tuesday September 9th

Ticker Quarter Your estimate Popularity
Wall St
Estimize
You
BKSBarnes & Noble, Inc.
FQ1 '15BMO
EPS: 
REV:
-0.68 
1,278
-0.67 
1,295
 
KKDKrispy Kreme Doughnuts, Inc.
FQ2 '15AMC
EPS: 
REV:
0.16 
117.50
0.16 
117.43
 
PANWPalo Alto Networks, Inc.
FQ4 '14AMC
EPS: 
REV:
0.11 
160.84
0.12 
163.77
 
OXMOxford Industries Inc.
FQ2 '15AMC
EPS: 
REV:
0.93 
253.20
 
 
FRANFrancesca's Holdings Corporation
FQ2 '15BMO
EPS: 
REV:
0.27 
100.46
0.27 
99.72
 
TITNTitan Machinery, Inc.
FQ2 '15BMO
EPS: 
REV:
0.13 
450.19
 
 
LDK *LDK Solar Co., Ltd.
FQ2 '14BMO
EPS: 
REV:
-0.66 
148.90
 
 
LAYNLayne Christensen Co.
FQ2 '15BMO
EPS: 
REV:
-0.48 
218.26
 
 
CVGWCalavo Growers Inc.
FQ3 '14BMO
EPS: 
REV:
0.46 
223.97
 
 
JW-A *John Wiley & Sons Inc.
FQ1 '15BMO
EPS: 
REV:
0.63 
420.60
 
 
CNSIComverse, Inc.
FQ2 '15BMO
EPS: 
REV:
0.02 
119.67
 
 
NXQuanex Building Products Corporation
FQ3 '14BMO
EPS: 
REV:
0.21 
162.10