US equities are seeing strong gains this morning, with the DJIA within 100 points of all-time highs. Global bond markets have quieted down, with yields remaining subdued. Greece rhetoric remains opaque, with all sides repeating stale rhetoric, although Finance Minister Varoufakis raised eyebrows after suggesting that Greek debt repayments to the ECB be pushed into the "distant future." EUR/USD rose to 1.1350 yesterday and made a run for 1.1450 earlier today, although the failure to take the level sent the pair right back to where they were yesterday. As of writing, the DJIA is up 0.82%, the S&P500 is up 0.66% and the Nasdaq is up 0.92%.
The headline April PPI data surprised people, coming in much weaker than expected. However, the core PPI measure, which excludes food, energy, and the erratic trade services component, posted an as-expected 0.1% increase. Analysts expect to see similar weakness in food and energy in next week's CPI reading. Weekly initial jobless claims sank to within a hair of the 15-year low seen two weeks ago.
Cisco reported a modest y/y gain in revenue in its third quarter, with both earnings and revenues just a hair above expectations. The firm's fourth-quarter guidance was right in line. CEO Chambers addressed emerging technologies head on, claiming that Cisco was slimming teams and speeding up development to compete with software-defined networking startups. Shares of security company FireEye spiked yesterday on rumors that Cisco was in talks to buy it for $8 billion. On the conference call yesterday evening, Chambers said his company never comments on rumors and speculation, but then said, "I wouldn't bet on the one you heard today." Shares of CSCO are unchanged on the day, while FEYE was down about 4%.
Abstracts ahead of the annual American Society of Clinical Oncology conference were released last night. Something around 5,000 datasets were released, with a big focus on immunotherapies at this year's event. Two of the biggest movers this morning on the data are Oncothyreon and Discovery Labs. DSCO gained more than 20% in the post-market after disclosing its Phase II AEROSURF trial met endpoints, however the stock has given up all of those gains in cash trading this morning. ONTY is up more than 20% on positive breast cancer data. Shares of PBYI are down 19% on disappointment with its ExteNet study data.
***Looking Ahead***
- 13:00 (US) Treasury to sell $16B in 30-Year Bonds
- 17:00 (CO) Colombia Mar Retail Sales Y/Y: 3.5%e v 4.3% prior
- 17:00 (CO) Colombia Mar Industrial Production Y/Y: -1.1%e v -1.3% prior
- 18:00 (CL) Chile Central Bank (BCCh) Interest Rate Decision: Expected to leave Overnight Rate Target unchanged at 3.00%
- 19:00 (PE) Peru Central Bank Interest Rate Decision: Expected to leave Reference Rate unchanged at 3.25%
- 19:50 (JP) Japan Apr PPI M/M: No est v 0.3% prior; Y/Y: No est v 0.7% prior
- 21:00 (KR) Bank of Korea (BoK) Interest Rate Decision: expected to leave 7-Day Repo Rate unchanged at 1.75%
- 22:00 (ID) Indonesia Apr Trade Balance: $0.1Be v $1.1B prior; Imports Y/Y: -19.3%e v -13.4% prior
***Economic Data***
- (ZA) South Africa Total Mining Production M/M: +7.1% v -0.1%e; Y/Y: 18.8% v 5.9%e; Gold Production Y/Y: +3.3% v -7.0% prior; Platinum Production Y/Y: 132.2% v 26.7% prior
- (IE) Ireland Apr CPI M/M: 0.0% v 0.6% prior; Y/Y: -0.7% v -0.6% prior
- (IE) Ireland Apr CPI EU Harmonized M/M: -0.1 v +0.6% prior; Y/Y: -0.4% v -0.3% prior
- (PL) Poland Apr CPI M/M: 0.4% v 0.2%e; Y/Y: -1.1% v -1.2%e
- (PL) Poland Apr M3 Money Supply M/M: -0.9% v +0.3%e; Y/Y: 7.2% v 8.4%e
- (RU) Russia Gold and Forex Reserve w/e May 8th: $358.0B v $358.5B prior
- (BR) Brazil Mar Retail Sales M/M: -0.9% v -0.4%e; Y/Y: 0.4% v 1.4%e
- (BR) Brazil Mar Broad Retail Sales M/M: -1.6% v -0.5%e; Y/Y: -0.7% v +1.4%e
- (US) Apr PPI Final Demand M/M: -0.4% v +0.1%e; Y/Y: -1.3% v -0.8%e
- (US) Apr PPI Ex Food and Energy M/M: -0.2% v +0.1%e; Y/Y: 0.8% v 1.1%e
- (US) Apr PPI Ex Food, Energy, Trade M/M: 0.1% v 0.1%e; Y/Y: 0.7% v 0.8%e
- (US) Initial Jobless Claims: 264K v 273Ke; Continuing Claims: 2.23M v 2.23Me
- (CA) Canada Mar New Housing Price Index M/M: 0.0% v 0.1%e; Y/Y: 1.2% v 1.3%e
- (US) Weekly EIA Natural Gas Inventories +111 bcf v +115 to +119 bcf expected
[I]Contributed by Trade The News[/I]
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