In Asian Equity Markets Japan’s Nikkei index fell on Friday morning after tech shares fell sharply following weakness on the Nasdaq market, while investors stayed cautious as the dollar fell against the yen. By the midday break, the Nikkei lost 0.4 percent to 19,994.54. For the week, it is on track to fall 0.5 percent. The broader Topix shed 0.2 percent to 1,623.79. MSCI’s broadest index of Asia-Pacific stocks outside Japan fell 0.8 percent but was still on track for a 0.4 percent weekly gain, with Samsung Electric, Asia’s largest company by market capitalization, falling 3.5 percent.

 

In Currency Markets the dollar decreased against its major peers on Friday, its mild bounce earlier petering out ahead of the second quarter U.S. economic growth data due later in the session. The dollar was down 0.2 percent at 111.070 yen to reverse the previous day’s modest gains. The common currency was last up 0.1 percent at $1.1686. The Swiss franc extended its slide against the buoyant euro, touching 1.1364 francs per euro. The Australian dollar was 0.1 percent higher at $0.7975. The New Zealand dollar stood at $0.7487 after rising to $0.7557 on Thursday, its highest since May 2015. The dollar index against a basket of six major currencies was a shade lower at 93.826 after edging up 0.2 percent the previous day.

 

In Commodities Markets oil prices edged lower on Friday but were still near 8-week highs, buoyed by a decline in U.S. inventories and OPEC’s ongoing efforts to curb production. Brent crude futures were down 0.1 percent, at $51.43 per barrel. U.S. West Texas Intermediate crude futures were down 0.1 percent, at $48.99 per barrel. Both benchmarks rose to their highest levels since May 31 in the previous session, buoyed by a rally in U.S. gasoline futures after earlier support from OPEC’s latest efforts to cut exports and a sharp fall in U.S. crude inventories. Spot gold rose 0.2 percent to $1,260.50 per ounce. U.S. gold futures for August delivery held steady at $1,259.90 per ounce.

 

In US Equity Markets   a swoon in technology and transportation shares led the S&P 500 slightly lower on Thursday on a day full of corporate earnings reports, but the Dow industrials set a record closing high, helped by a jump in Verizon. The Dow Jones Industrial Average rose 0.39 percent, to 21,796.55, the S&P 500 lost 0.10 percent, to 2,475.42 and the Nasdaq Composite fell 0.63 percent, to 6,382.19. After the bell, Amazon.com shares fell 2.7 percent after the e-commerce company’s results. Verizon shares rose 7.7 percent. The No. 1 U.S. wireless carrier’s quarterly revenue topped expectations. Twitter shares fell 14.1 percent. The social media platform disappointed investors with stagnant monthly active user growth.

 

In Bond Markets Japanese government bond prices fell across the board on Friday as the market tracked an overnight retreat by U.S. Treasuries, although losses were limited as Tokyo’s Nikkei share average fell. The two-year and 10-year JGB yields rose 0.5 basis point to minus 0.115 percent and 0.070 percent, respectively. The 30-year yield climbed 1 basis point to 0.865 percent.

 

 

Economic Calendar

• 13:30 GMT+1 CAD GDP m/m
• 13:30 GMT+1 US Advance GDP q/q

 

US Equity Upgrades

• ANADARKO (APC) UPGRADED TO OVERWEIGHT FROM NEUTRAL AT MUFG
• BOEING (BA) UPGRADED TO BUY FROM NEUTRAL AT BOFA/MERRILL
• BOEING (BA) UPGRADED TO NEUTRAL FROM SELL AT GOLDMAN SACHS
• BOEING (BA) UPGRADED TO OUTPERFORM FROM NEUTRAL AT CREDIT SUISSE
• BOEING (BA) UPGRADED TO SECTOR PERFORM FROM UNDERPERFORM AT RBC CAPITAL
• DDR CORP. (DDR) UPGRADED TO BUY FROM HOLD AT DEUTSCHE BANK
• FIRST BANCSHARES (FBMS) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT KEEFE BRUYETTE
• FIRST FINANCIAL BANCORP (FFBC) UPGRADED TO OVERWEIGHT FROM EQUAL WEIGHT AT STEPHENS
• ORRSTOWN FINANCIAL (ORRF) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT KEEFE BRUYETTE
• OWENS CORNING (OC) UPGRADED TO NEUTRAL FROM SELL AT MKM PARTNERS
• ROCKWELL AUTOMATION (ROK) UPGRADED TO NEUTRAL FROM UNDERWEIGHT AT JPMORGAN
• STATE STREET (STT) UPGRADED TO IN LINE FROM UNDERPERFORM AT EVERCORE ISI
• SUBURBAN PROPANE (SPH) UPGRADED TO BUY FROM NEUTRAL AT CITI
• TRINITY INDUSTRIES (TRN) UPGRADED TO BUY FROM HOLD AT STIFEL
• VALLEY NATIONAL (VLY) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT KEEFE BRUYETTE
• VERMILION ENERGY (VET) UPGRADED TO OUTPERFORM FROM SECTOR PERFORM AT RBC CAPITAL

 

US Equity Downgrades

• AK STEEL (AKS) DOWNGRADED TO NEUTRAL FROM BUY AT LONGBOW
• BUFFALO WILD WINGS (BWLD) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT TELSEY ADVISORY
• F5 NETWORKS (FFIV) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT WELLS FARGO
• F5 NETWORKS (FFIV) DOWNGRADED TO PERFORM FROM OUTPERFORM AT OPPENHEIMER
• GLOBANT (GLOB) DOWNGRADED TO HOLD FROM BUY AT SUNTRUST
• GUIDANCE SOFTWARE (GUID) DOWNGRADED TO NEUTRAL FROM BUY AT B. RILEY
• HERITAGE-CRYSTAL CLEAN (HCCI) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT BAIRD
• INTERPUBLIC GROUP (IPG) DOWNGRADED TO UNDERWEIGHT FROM NEUTRAL AT ATLANTIC EQUITIES
• SILGAN HOLDINGS (SLGN) DOWNGRADED TO NEUTRAL FROM BUY AT BOFA/MERRILL
• SPROUTS FARMERS MARKET (SFM) DOWNGRADED TO HOLD FROM BUY AT JEFFERIES
• U.S. STEEL (X) DOWNGRADED TO NEUTRAL FROM BUY AT LONGBOW
• UMC (UMC) DOWNGRADED TO UNDERPERFORM FROM NEUTRAL AT CREDIT SUISSE
• UMC (UMC) DOWNGRADED TO UNDERPERFORM FROM MARKET PERFORM AT BERNSTEIN
• USG (USG) DOWNGRADED TO NEUTRAL FROM BUY AT BOFA/MERRILL

 

US Equity Initiations

• ALPINE IMMUNE SCIENCES (ALPN) INITIATED WITH A BUY AT LADENBURG
• KINDER MORGAN (KMI) INITIATED WITH A NEUTRAL AT MIZUHO