• US stock market, economy and companies update (August 17, 2015)

    China set a stronger yuan for the second consecutive session and declared its currency revaluation campaign over in the Asia session. European indices and US futures found their session lows as the Empire survey came out ahead of the US open, however stocks have moved back up to unchanged in mid-morning trading. Sovereign yields are still lower, with the UST 10-year yield down four basis points to 2.15%. The DJIA is up 0.17%, the S&P500 is flat and the Nasdaq is up 0.35%.

    The August Empire Manufacturing survey published before the US open was very ugly. The index collapsed to its lowest level in six years, employment levels were flat and 34% of respondents said conditions had worsened while 19% said they had improved. The Empire report is the first regional Fed manufacturing report for August. The NAHB survey of housing market participants matched its highest level ever in the August reading.

    In a note this morning, Morgan Stanley increased the price target for Tesla to $465 from $280 (the stock is currently at about $243). The reasoning in MS's note was built on a hypothetical and projected the potential value of TSLA if it were to launch an app-based, on-demand car service built something along the lines of Uber. The report projected that while Apple and Google are both working hard to enter auto space, Tesla was positioned to get a very significant market share. Shares of TSLA are up 3.8%.

    Liberty Interactive, which owns shopping channel QVC, reached a deal to acquire online retailer Zulily in a transaction valued around $2.4 billion. Liberty agreed to pay $18.75 a share in cash, more than a 45% premium to Friday's closing price. Zulily is an e-commerce website specializing in selling discounted clothing and merchandise. Note that last May, Chinese e-commerce giant Alibaba disclosed a 9% stake in Zulily.

    ***Looking Ahead***
    - 16:00 (US) Jun Net Long-term TIC Flows: No est v $93.0B prior; Total Net TIC Flows: No est v $115.0B prior
    - 16:00 (US) Crop Condition Report
    - 21:30 (CN) China July Property Prices
    - 21:30 (AU) RBA Aug Policy Minutes
    - 23:45 (JP) Japan to sell 20-Year JGB Bonds

    ***Economic data***
    - (US) Aug Empire Manufacturing: -14.92 v 4.50e
    - (CA) Canada Jun Int'l Securities Transactions: +8.5B v -6.0Be
    - (PL) Poland July YTD Budget Balance Level (PLN): -26.6B v -26.2B prior; Budget Balance Performance: 57.7% v 56.7% prior
    - (RU) Russia July Industrial Production Y/Y: -4.7% v -4.8%e
    - (US) Aug NAHB Housing Market Index: 61 v 61e

    [I]Contributed by Trade The News[/I]
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