In European Equity Markets stocks were little changed on Wednesday with gains capped by new concerns about deflationary pressures in China, while technology group ASML and builder Skanska slid after weak business updates. The pan-European FTSEurofirst 300 index fell 0.13 percent while the euro zone's blue-chip Euro STOXX 50 index declined by 0.06 percent. However, British financial company Hargreaves Lansdown rose 3.8 percent, the third best performer on the pan-European STOXX 600 index. ASML, a supplier to top global semiconductor makers, fell 4.5 percent after its third-quarter earnings came in slightly below analysts' expectations, and with fewer than expected new bookings.
In Currency Markets the US dollar fell to a 3-1/2-week low against a basket of currencies on Wednesday as more signs of slowing growth in the United States and China raised doubts the U.S. FED will raise interest rates later this year. Data on the world's two biggest economies hinted at disinflationary pressure due to flagging domestic demand with U.S. retail sales barely growing in September. The dollar index was last down 0.4 percent at 94.380. It hit a 3-1/2-week low of 94.224 after the U.S. government said retail sales rose by a tiny 0.1 percent and producer prices fell by 1.1 percent. Against the yen, the dollar fell 0.3 percent to 119.375 yen . The euro reached a 3-1/2-week high against the greenback. It was last up 0.4 percent at $1.1429.
In Commodities Markets oil prices fell again on Wednesday as concerns of a growing global supply glut negated optimism in recent weeks about declining U.S. production. Crude futures have lost 7 percent so far this week, sliding without stop since Monday after OPEC reportedly pumped 110,000 barrels per day more in September than in August, and nearly 2 million bpd above forecast demand for 2015. Brent, the global benchmark for crude, was down 23 cents, or 0.5 percent, at $49.01 a barrel by 11:30 a.m. EDT. U.S. crude slipped 37 cents, or 0.8 percent, to $46.29. OPEC trimmed its estimate of 2016 world oil demand growth by 40,000 bpd to 1.25 million bpd, citing slower growth in China.
In US Equity Markets stocks retreated on Wednesday as investors absorbed mixed earnings from major banks and Wal-Mart's weak forecast wiped more than $20 billion off the retailer's market value. Six of the 10 major S&P sectors fell. The S&P 500 was down 9.18 points, or 0.46 percent, at 1,994.51 and the Nasdaq Composite was down 20.28 points, or 0.42 percent, at 4,776.33. Wells Fargo fell 1.7 percent to $50.98 after reporting results. Bank of America rose 1.5 percent to $15.75 after the bank reported a profit, compared with a year-earlier loss. Wal-Mart sank 8.6 percent to $60.99, on track for its worst one-day performance in more than 17 years, after the retailer said the strong dollar was likely to take $15 billion out of its full-year revenue.
In Bond Markets U.S. Treasury yields hit their lowest levels in over a week on Wednesday after weaker-than-expected U.S. retail sales and producer prices data supported views the Federal Reserve would delay a rate hike until 2016. The Commerce Department said retail sales edged up 0.1 percent last month, below expectations for a 0.2 percent rise according to a Reuters poll of economists. Other data showed producer prices in September posted their biggest decline in eight months, suggested disinflation was reemerging. U.S. 30- and 10-year yields hit their lowest levels since Oct. 5 of 2.8510 percent and 1.9999 percent, respectively.
US Equity Pre-Market Upgrades
ADOBE (ADBE) UPGRADED TO OVERWEIGHT FROM NEUTRAL AT ATLANTIC EQUITIES
AMERSECO (AMRC) UPGRADED TO OUTPERFORM FROM PERFORM AT OPPENHEIMER
ANALOG DEVICES (ADI) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT BMO CAPITAL
CF INDUSTRIES (CF) UPGRADED TO MARKET PERFORM FROM UNDERPERFORM AT COWEN
DIPLOMAT PHARMACY (DPLO) UPGRADED TO NEUTRAL FROM UNDERPERFORM AT BOFA/MERRILL
DYAX (DYAX) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT LEERINK
ENCANA (ECA) UPGRADED TO BUY FROM HOLD AT DEUTSCHE BANK
HEARTWARE (HTWR) UPGRADED TO NEUTRAL FROM SELL AT GOLDMAN
INTEL (INTC) UPGRADED TO BUY FROM HOLD AT SUMMIT RESEARCH
INTREPID POTASH (IPI) UPGRADED TO MARKET PERFORM FROM UNDERPERFORM AT COWEN
ROYAL DUTCH SHELL (RDS.A) UPGRADED TO BUY FROM HOLD AT ARGUS
SAP (SAP) UPGRADED TO BUY FROM HOLD AT HSBC
SKY (SKYAY) UPGRADED TO OUTPERFORM FROM UNDERPERFORM AT CREDIT SUISSE
TAUBMAN CENTERS (TCO) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT COWEN
VF CORP. (VFC) UPGRADED TO OVERWEIGHT FROM NEUTRAL AT PIPER JAFFRAY
VIVENDI (VIVHY) UPGRADED TO CONVICTION BUY FROM BUY AT GOLDMAN
US Equity Pre-Market Downgrades
BROWN & BROWN (BRO) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT WELLS FARGO
CEPHEID (CPHD) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT RAYMOND JAMES
DISCOVERY (DISCA) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT MACQUARIE
GOPRO (GPRO) DOWNGRADED TO NEUTRAL FROM OVERWEIGHT AT PIPER JAFFRAY
ITV PLC (ITVPF) DOWNGRADED TO BUY FROM CONVICTION BUY AT GOLDMAN
K+S (KPLUF) DOWNGRADED TO SELL FROM NEUTRAL AT UBS
KEY ENERGY (KEG) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT BAIRD
LEGACY RESERVES (LGCY) DOWNGRADED TO HOLD FROM BUY AT WUNDERLICH
LINDE (LNEGY) DOWNGRADED TO SELL FROM NEUTRAL AT UBS
METALDYNE PERFORMANCE (MPG) DOWNGRADED TO NEUTRAL FROM BUY AT GOLDMAN
ORACLE (ORCL) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT JMP SECURITIES
ORACLE (ORCL) DOWNGRADED TO UNDERPERFORM FROM MARKET PERFORM AT JMP SECURITIES
RLJ LODGING TRUST (RLJ) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT WELLS FARGO
RYMAN HOSPITALITY (RHP) DOWNGRADED TO UNDERPERFORM FROM MARKET PERFORM AT WELLS FARGO
SAFE BULKERS (SB) DOWNGRADED TO SELL FROM HOLD AT EVERCORE ISI
SOLVAY (SVYZY) DOWNGRADED TO SELL FROM NEUTRAL AT UBS
STILLWATER MINING (SWC) DOWNGRADED TO SECTOR PERFORMER FROM OUTPERFORMER AT CIBC
TWITTER (TWTR) DOWNGRADED TO MARKET PERFORM ON LIMITED VISIBILITY AT JMP SECURITIES
UNDER ARMOUR (UA) DOWNGRADED TO NEUTRAL FROM OVERWEIGHT AT PIPER JAFFRAY
WHITING PETROLEUM (WLL) DOWNGRADED TO HOLD FROM BUY AT DEUTSCHE BANK
US Equity Pre-Market Initiations
8POINT3 ENERGY (CAFD) INITIATED WITH AN OUTPERFORM AT OPPENHEIMER
AMERICAN EQUITY (AEL) INITIATED WITH A BUY AT CITI
ARTHUR J. GALLAGHER (AJG) INITIATED WITH AN OUTPERFORM AT WELLS FARGO
AXALTA COATING (AXTA) INITIATED WITH AN OUTPERFORM AT RBC CAPITAL
DIPEXIUM PHARMACEUTICALS (DPRX) INITIATED WITH A STRONG BUY AT RAYMOND JAMES
EASTMAN CHEMICAL (EMN) INITIATED WITH AN OUTPERFORM AT RBC CAPITAL
HAIN CELESTIAL (HAIN) INITIATED WITH AN OUTPERFORM AT COWEN
HANNON ARMSTRONG (HASI) INITIATED WITH AN OUTPERFORM AT OPPENHEIMER
JAZZ PHARMACEUTICALS (JAZZ) INITIATED WITH AN OUTPERFORM AT NORTHLAND
MALLINCKRODT (MNK) INITIATED WITH AN OUTPERFORM AT NORTHLAND
MCGRAW HILL FINANCIAL (MHFI) INITIATED WITH AN OVERWEIGHT AT ATLANTIC EQUITIES
MICROSEMI (MSCC) INITIATED WITH A BUY AT MIZUHO
PRIMA BIOMED (PBMD) INITIATED WITH A BUY AT H.C. WAINWRIGHT
SHIRE (SHPG) INITIATED WITH AN OUTPERFORM AT NORTHLAND
VIVENDI (VIVHY) INITIATED WITH AN OUTPERFORM AT CREDIT SUISSE
WILLIS GROUP (WSH) INITIATED WITH AN UNDERPERFORM AT WELLS FARGO
WPX ENERGY (WPX) REINITIATED WITH AN OUTPERFORM AT IMPERIAL CAPITAL
US Equity Pre-Market Earnings
Bank of America (BAC) - Q3 Adj. EPS USD 0.35 vs. Exp. USD 0.33 and Q3 Adj. sales USD 20.6bln vs. Exp. USD 20.5bln. Q3 net interest margin 2.1% vs. Exp. 2.2%. Q3 fixed income, currencies, commodities and trading sales Y/Y (excluding net DVA) 11.0%.
BlackRock (BLK) - Q3 adj. EPS USD 5.00 vs. Exp. USD 4.53 and Q3 revenue USD 2.91bln vs. Exp. USD 2.77bln. Co. report Q3 assets under management USD 4.51trl as well as Q3 operating margin 42.0% vs. Prev. 42.6%. CSX Corp (CSX) - Q3 EPS USD 0.52 vs. Exp. USD 0.50 and Q3 revenue USD 2.94bln vs. Exp. USD 2.97bln. Co. reaffirms their FY'15 EPS outlook.
Delta Air Lines (DAL) - Q3 Adj. EPS USD 1.74 vs. Exp. USD 1.72 and Q3 operating revenue USD 11.1bln vs. Exp. USD 11.1bln. Co. forecasts Q4 unit revenue down 2.54.5% but EPS to grow over 40%.
Intel (INTC) - Q3 EPS USD 0.64 vs. Exp. USD 0.59 and Q3 revenue USD 14.5bln vs. Exp. USD 14.2bln. Co. Q3 gross margin 63% vs. Exp. 63%. Co. forecasts Q4 revenue of approximately USD 14.8bln vs. Exp. USD 14.81bln. Co. forecasts FY capital spending of approximately USD 7.3bln.
JPMorgan Chase (JPM) - Q3 Adj. EPS USD 1.32 vs. Exp. USD 1.38 and Q3 revenue USD 23.50bln vs. Exp. USD 24.04bln. Co. report Q3 fixed income markets revenue USD 2.93bln vs. Exp. USD 2.9bln, Q3 equity markets revenue USD 1.40bln vs. Exp. USD 1.39bln, Q3 investment banking revenue USD 1.53bln vs. Exp. USD 1.41bln. They also state their Q3 report is inclusive of USD 1bln in legal fees.
PNC Financial (PNC) - Q3 EPS USD 1.90 vs Exp. USD 1.78 (May not compare) and Q3 sales USD 3.78bln vs. Exp. USD 3.8bln. Q3 net interest margin 2.67% vs. Exp. 2.68%. Q3 noninterest income USD 1.7bln. Co. forecasts "modest growth" to their Q4 loans net interest income and fee income. They also forecast USD 50100mln in loan loss provisions.