Before the Open (Jun 29)

Good morning. Happy Wednesday.
The Asian/Pacific markets closed up across-the-board. Indonesia gained more than 2%, and Japan, Hong Kong, Singapore, New Zealand and South Korea rallied better than 1%. Europe is currently posting solid gains. France, London, Belgium, the Netherlands, Denmark, Finland, Spain and Portugal are up more than 2%, and several other indexes, including Germany, Italy and Russia, are up more than 1%. Futures in the States point towards a moderate gap up open for the cash market.
—————
List of Indexes and ETFs – here
—————
The dollar is down. Oil is up; copper is flat. Gold and silver are up. Bonds are mixed.
The biggest 2-day drop since last August has been followed by the biggest single-day gain in four months. This is what increased volatility looks like. This is what uncertainty looks like. Expect more of this.
On any given the day the market can gap up or gap down big based on the latest news headline. This isn’t always the case. A quick glance at the daily SPY chart tells us the market jumps around a little, but there are lots of overlapping candles and few truly big moves. The market spends more time doing nothing than it does doing something, but now things have heated up. Although this would be considered the summer doldrums, the market won’t be quiet for the foreseeable future.
I’ve said it many times, and I’ll say it again. The UK leaving the EU is not big deal. They’ll be fine on their own (did you know Norway and Switzerland are not in the EU?). The question is whether others put the wheels in motion to leave and it appears as if the entire block will dissolve. That would be a major structural change. That would lead to so much uncertainty, the market would surely drop. But if the UK vote is contained to just the UK, this will pass.
Given this, several breadth indicators diverged from their underlying price action and are heading south. So even without the Brexit vote, the market was likely to correct anyways. I’m guessing we’ll have another leg down that pushes the indicators into oversold territory. Then the foundation will be set for a more lasting rally.
Be on your toes. More after the open.
Stock headlines from barchart.com…
Chicago Bridge & Iron (CBI +2.91%) was rated a new ‘Buy’ at MKM Partners with a 12-month price target of $46.
Autoliv (ALV +2.48%) slid over 6% in pre-market trading after it confirmed that Toyota had recalled some its cars that involved the company’s airbags.
Symantex (SYMC +0.90%) was upgraded to ‘Hold’ rom ‘Sell’ at Evercore ISI.
Nike (NKE +2.31%) fell nearly 4% in pre-market trading after it reported Q4 revenue of $8.24 billion, less than consensus of $8.28 billion, and said Q4 worldwide futures orders ex-FX were up 11%, below consensus of +13%.
CalAmp (CAMP +3.07%) fell -0.5% in after-hours trading after it said it sees Q2 revenue of $90 million-$95 million, below consensus of $96.5 million.
Neurocrine Biosciences (NBIX +5.00%) was rated a new ‘Buy’ at HC Wainwright & Co. LLC with a target price of $80.
A Schulman (SHLM -2.53%) declined over 1% in after-hours trading after it filed a lawsuit versus sellers of Citadel Plastics, saying it identified quality reporting issues affecting certain product lines at two Lucent Polymer manufacturing facilities in Evansville, IN.
Eclipse Resources (ECR +3.53%) dropped 5% in after-hours trading after it started an underwritten public offering of 37.5 million shares of common stock.
Aerovironment (AVAV +0.32%) slid over 3% in after-hours trading after t said it sees fiscal 2017 revenue of $260 million-$280 million, below consensus of $286.4 million.
Esperion Therapeutics (ESPR +8.30%) plunged over 20% in after-hours trading after the company said its experimental drug ‘Bempedoic acid’ may not be able to win FDA approval based solely on its ability to cut cholesterol, which raises concern it may take 6 or more years for the drug to reach the U.S. market.
Hutchinson Technology (HTCH -0.27%) fell 4% in after-hours trading after it said the FTC has not indicated when Hutchinson’s merger with Headway Technologies will be approved.
Anthera Pharmaceuticals (ANTH +2.68%) fell nearly 7% in after-hours trading after it said data from “Bright-SC” study of blisibmod for IgA nephropathy failed to meet the primary endpoint at 24 weeks.
KemPharm (KMPH +6.63%) jumped over 16% in after-hours trading after it reported positive Phase 1 results in a trial of its Prodrug of Hydromorphone KP511.
Tuesday’s Key Earnings
Carnival (NYSE:CCL) +0.2% after beating expectations.
Nike (NYSE:NKE) -3.7% AH on sluggish North American sales.
Today’s Economic Calendar
7:00 MBA Mortgage Applications
8:30 Personal Income and Outlays
10:00 Pending Home Sales
10:30 EIA Petroleum Inventories
3:00 Farm Prices
Today’s Earnings here
Other…
today’s upgrades/downgrades from briefing.com
this week’s Earnings
this week’s Economic Numbers