(Les Echos) Le secteur des telécoms optimiste sur la reprise à venir

Le secteur des telécoms optimiste sur la reprise à venir

Après des années de turbulences, le marché est en train d’atterrir en Europe, selon l’Idate.Les défis à relever en termes d’investissement dans les réseaux demeurent importants.

Les opérateurs télécoms européens entrevoient le bout du tunnel. Depuis quelques semaines, les signaux de reprise se multiplient dans le secteur. Selon l’Idate, qui organisait son « DigiWorld Forum » mardi, avec de nombreux acteurs invités, le secteur devrait connaître en 2017 une « très légère croissance », après des années de turbulences. Ces prévisions confirment celles d’Arthur D.Little et Exane BNP Paribas, dans une récente étude, et sont cohérentes avec le discours plus optimiste des opérateurs depuis le début de l'année.

A cette date, la dynamique de croissance du secteur télécoms en Europe devrait même être similaire à celle des Etats-Unis, ce qui n’est pas arrivé depuis des années. « On prévoit plus ou moins 1 % de croissance en Europe et cela sera pareil aux Etats-Unis, alors qu’en 2012, il y avait 8 points d’écart entre les deux continents », explique Didier Pouillot, spécialiste des télécoms à l’Idate. En valeur, cependant, les différences restent évidemment très importantes, les abonnements télécoms au pays de l’Oncle Sam étant beaucoup plus onéreux qu’en Europe.

Pour les « telcos » européens, plus de croissance signifie plus de revenus, plus de marges et donc plus de capacités d’investissement. C’est essentiel pour faire face à l’explosion du trafic de données attendu sur les réseaux. « Le volume de datas dans le mobile double chaque année depuis deux ans », a rappelé Olivier Roussat,le patron de Bouygues Telecom, invité au Forum de l’Idate. La faute évidemment aux Google, Netflix et autres acteurs du web qui abreuvent les réseaux de toujours plus de contenus. Une aubaine pour les opérateurs qui peuvent vendre des forfaits plus gourmands, et donc plus chers, mais un véritable défi en terme d’investissement pour construire des réseaux suffisamment solides.

Bataille des réseaux

La rivalité entre « telcos » et géants du web sur le thème de l’investissement n’est pas nouvelle, les premiers reprochant aux seconds de ne pas payer le péage pour utiliser leurs autoroutes de l’information. « En trois ans, les acteurs du web ont investi 100 milliards de dollars au plan mondial dans les infrastructures du web », s’est défendu Carlo d’Asaro-Biondo, directeur des partenariats et relations stratégiques de Google pour l’Europe, lors du colloque, rappelant aussi ses projets dans la fibre aux Etats-Unis. « L’idée reçue selon laquelle les géants du webn’investissent pas dans les réseaux est fausse », a-t-il ajouté. Pas sûr que les échelles soient néanmoins comparables. « Pour la seule année 2013, les opérateurs télécoms ont dépensé à eux seuls 250 milliards d’euros », rétorque Didier Pouillot.

Si les opérateurs en Europe peuvent espérer une stabilisation du marché à court terme, ils peuvent aussi compter sur de nouveaux relais de croissance comme les objets connectés ou les services cloud. Le redressement des marges, et donc la capacité à investir, passera également par le maintien d’une bonne discipline des coûts selon l’Idate. « Des marges de 30 % restent nécessaires pour les opérateurs pour financer leurs investissements, considère Didier Pouillot. Quand un opérateur mobile a une marge d’Ebitda de moins de 20 %, comme Bouygues Telecom en France par exemple, c’est qu’il y a un problème ». Ces économies peuvent passer par la mutualisation des réseaux, le partage des infrastructures, ou encore par des rapprochements entre opérateurs.

La consolidation restera d’actualité dans les années à venir. « C’est le sens de l’histoire. Il y a une vraie corrélation entre le nombre d’opérateurs et leur capacité à investir », juge Stéphane Richard, le patron d’Orange, qui plaide encore et toujours pour un retour à trois acteurs en France, « à l’image de la logique en cours dans le reste de l’Europe ». Quitte à être en désaccord avec son principal actionnaire, l’Etat, qui ne veut plus entendre parler de consolidation... pour le bien de l’investissement.

>>> Vivendi considering increasing stake in Telecom Italia to 10-15% - report (t

Vivendi considering increasing stake in Telecom Italia to 10-15%

Listed French media group Vivendi is understood to be considering increasing its stake in Telecom Italia to 10-15%, French daily Les Echos reported. The report referred to information from Reuters claiming that businessman Vincent Bollore, who is the main shareholder in Vivendi, wants to become the “key man” in Telecom Italia as the latter has been mooted as a potential takeover target.

Les Echos

>>> What to look at today - 17th of June 2015

Dow+0.64% S&P+0.54% Nasdaq+0.51% Russell+0.63% VIX 14.81 ...Market is waiting for FOMC
US market closed higher, settle above 100d MA, Equity indices began the day near their flat lines and rallied throughout the day, unperturbed by the lack of progress between Greece and its creditors. Furthermore, the rhetoric in Athens intensified with Greek Prime Minister Alexis Tsipras saying the International Monetary Fund bears "criminal" responsibility for the current state of the Greek economy. Mr. Tsipras' remarks were made in front of the Greek parliament with the premier adding that another round of elections is not in the cards. Volume were above average @ 640mil shares US After Hours BOBE +4.0%, ITI +1.1%, DTEA -11.0%, LZB -4.2%, NR -3.5%, ADBE -1.6% following earnings/guidance...Asian indices remain mixed going into Wednesday's crucial FOMC policy update, with Australia outperforming and Shanghai Composite extending its decline to a 2-week low below 4,800. Losses on the mainland remain heavy despite outsized gains for one of China's top banks - BoCom - receiving approval from regulators to optimize the shareholding structure...Japan May merchandise trade deficit was smaller than expected, but both import and export components undershot expectations, revealing continued hardship in Asia's 2nd largest economy in spite of the recent acceleration in yen selling. Exports growth of 2.4% also marked a 9-month low, with exports to US slowing to just 7.4% v 21.4% prior and exports to Europe remaining nearly flat. Shipments from Japan to China also slowed from 2.4% to 1.1%.

Nikkei -0.16% Hang Seng +0.71% Shanghai -0.18%

Eur$ 1.1245 JPY 123.54 GBP 1.5634 EURCHF 1.0475 RUB $53.82 WTI $60.04 (+0.12%)

S&P +0.08% EuroStoxx +0.32% DAX +0.53% SMI +0.10%

Macro :
- France’s Sapin Says Greece Agreement Needed by June 30: Figaro

Keep an eye on :
- ABI BB : AB InBev CEO Prefers Acquisitions That Are ‘Near Beer,’ FT Says
- AIR FP : Airbus to Scale Back Job Cuts by About 14%, FT Says
- AF FP : Air France Wants Govt to Cut Airport Fees, Les Echos Says
- ALU FP : Alcatel CEO Says Seeing Nokia Deal Through ‘Only Priority’
- AIE LN : *KEYSIGHT TECH OFFERS 126P IN CASH PER ANITE SHR !!!!!
- BMW GY : Rolls-Royce Won’t Sell Car for Less Than EU200,000: Handelsblatt
- BMPS IM : Monte Paschi Could Name Modiano New Chairman: Messaggero
- DTE GY : German Mobile Spectrum Auction Reaches EU4.2b After 154th Round
- EUCAR FP : Europcar IPO Covered on Full Deal Size, Terms Show
- IMT LN : *IMPERIAL TOBACCO MAY BECOME TGT FOR FURTHER SECTOR M&A: GOLDMAN --> Added to conviction Buy List
- LIN GY : Linde Seeks to Enter China Market Using Lincare Business: FT
- NESN VX : Nestle Cuts African Workforce by 15%, FT Says
- NOK1V FH : Nokia CEO Says Strategic Analysis Ongoing for Co.’s Here Unit
- OMV AV : OMV Said to Work With Barclays to Sell Stake in North Sea Field
- PNN LN : *SELL PENNON, SHARES ABOVE PRIVATE EQUITY VALUATION: GOLDMAN
- RXL FP : *REXEL PULLBACK AN ATTRACTIVE ENTRY POINT, MORGAN STANLEY SAYS
- RCO FP : Remy Cointreau FY Current Oper. Profit Beats Ests.
- SIE GY : Siemens Unlikely to Make Large Software Acquisition Soon: CEO
- GLE FP : SocGen Aims for ‘Strict Discipline’ in Costs and Risks
- TLV1V FH : Finnish Govt Funding to Talvivaara May Rise: Helsingin Sanomat
- VIV FP : Vivendi Plans to Raise Stake in Telecom Italia to 10%-15%: Rtrs

>>> Europe : Brokers Upgrades & Downgrades - 17th of June 2015

(Research note attached Barcap on French Banks & European Energy, Deutsche Bank on European Banks, GS on European Strategy)

>>> Up
*BRITISH AMERICAN TOBACCO RAISED TO NEUTRAL VS SELL AT GOLDMAN
*SEB RAISED TO OUTPERFORM VS NEUTRAL AT CREDIT SUISSE
*TITAN CEMENT RAISED TO BUY VS HOLD AT DEUTSCHE BANK
*WHITBREAD RAISED TO OVERWEIGHT VS EQUALWEIGHT AT MORGAN STANLEY

>>> Down
*AMLIN CUT TO SELL VS NEUTRAL AT UBS
*ARYZTA CUT TO HOLD VS BUY AT BERENBERG
*KERING CUT TO UNDERPERFORM AT CREDIT SUISSE (YEsterday)

>>> PT Change


>>> Initiation
*BEAZLEY RATED NEW NEUTRAL AT UBS
*FERROVIAL RATED NEW BUY AT GOLDMAN, PT EU22.9
*IMPERIAL TOBACCO REINSTATED CONVICTION BUY AT GOLDMAN
*JUST EAT RATED NEW EQUALWEIGHT AT MORGAN STANLEY, PT 450P
*MORRISON RATED NEW NEUTRAL AT CREDIT SUISSE, PT 176P
*OCADO RATED NEW OUTPERFORM AT CREDIT SUISSE, PT 466P
*SAINSBURY RATED NEW UNDERPERFORM AT CREDIT SUISSE, PT 219P
*SUBSEA 7 RATED NEW MARKET PERFORM AT COWEN, PT NOK76
*TECHNIP RATED NEW OUTPERFORM AT COWEN, PT EU84
*TESCO RATED NEW UNDERPERFORM AT CREDIT SUISSE, PT 169P
*WINDELN.DE RATED NEW BUY AT DEUTSCHE BANK; PT EU17
*ZALANDO RATED NEW BUY AT UBS, PT EU43

>>> Call
>> Stock
*DEUTSCHE POST ADDED TO CITI FOCUS LIST EUROPE

(DBK) European banks : Basel 4: another capital hill to climb. Some look well pl

The “Basel 4” package aims to strengthen the risk weight system
New regulation in the seven years since the Global Financial crisis has primarily aimed at increasing the quantity and quality of equity banks hold against losses. The next steps, coming to be dubbed “Basel 4”, look to change
how banks measure the “riskiness” of their balance sheets and “advertise” their capital ratios. Last year, in our European Banks report Truth in Advertising 9 June 2014, we looked at how this could happen. We have since had detailed proposals published from the Basel Committee. In this report, we evaluate the impact of Basel 4 by using European banks’ pillar 3 data, giving us the most granular and up to date bank by bank analysis available.

The key changes in the Basel 4 package of measures
In our framework to think about RWA inflation from Basel 4 we consider four
key proposal; i) Credit risk – revisions to standardized approach; ii) Market risk - Fundamental review of the trading book. We wrote about this extensively recently in our report 9 April report, Driving change at Credit Suisse: the FRTB and RWA inflation; iii) Operational risk – revisions to simpler approach; and iv) Capital floors – for banks that use their own internal models to calculate balance sheet risk. We also take into consideration further steps to “clean up” banks’ regulatory equity base.

Basel 4 is broadly manageable but outcomes could vary widely
Depending on calibration of capital floors and other measures, Basel 4 could potentially have a wide range of outcomes. In our base case of a risk-category based floor of 75%, we expect the sector to see 14% RWA inflation. On 2015balance sheets, this would add EUR 1.2tn to listed European banks’ risk weighted assets. This would reduce our B3 forecast from 11.6% to a B4 figure of 9.9% including further measures on equity. However if capital floors are applied more granularly under the so-called portfolio-based measures, RWA inflaton could rise to 22% and impact core tier 1 ratio by a further 0.6%, reducing the sector figure to 9.3%.

Granular analysis by bank, where some may face more payout constraints
In this report we include a detailed template of RWA inflation for each bank under our coverage, with commentary on sensitivities. We summarize in the table on the next page the impacts of the various proposals on core tier 1 ratios for each bank in our universe. Compared to a doubling of equity requirements under Basel 3, the Basel 4 package of measures is likely to be more manageable. However, some banks’ ability to raise payouts will be constrained as they retain capital, thus disappointing market expectations.

2019 implementation, but the market may fully load the impact quicker
Most of the proposals we consider will come into effect in 2018/ 2019. A key piece of feedback from our DB Global Financials Conference is that Basel 4 as a topic is increasingly being discussed by management teams and investors. As such we have an expectation that pressure will increase to guide on the potential impact with the full year results or over the course of the year. The market, as with previous regulation, is likely to fully load the impact into valuations. We have already seen the potential of Basel 4 to drive share prices.
In the table below we detail the impact on capital ratios we expect to see from each source given our base case assumptions.

>>> Asian Update

Asian Mid-session Update: Shanghai continues slide; Japan exports growth slows further


***Economic Data***
- (JP) JAPAN MAY MERCHANDISE TRADE BALANCE: -¥216B V -¥259BE; ADJ TRADE BALANCE: -¥183B V -¥-184BE
- (SG) SINGAPORE MAY ELECTRONIC EXPORTS Y/Y: -2.5% V -2.6%E; NON-OIL DOMESTIC EXPORTS M/M: -3.1% V -3.2%E; Y/Y: -0.2% V 2.3%E
- (AU) AUSTRALIA MAY WESTPAC LEADING INDEX M/M: -0.1% V +0.1% PRIOR
- (NZ) NEW ZEALAND Q1 CURRENT ACCOUNT BALANCE (NZ$): 0.66B V 0.28BE; first surplus in a year

***Index Snapshot (as of 02:30 GMT)***
- Nikkei225 -0.3%, S&P/ASX +1.1%, Kospi flat, Shanghai Composite -1.8%, Hang Seng +0.3%, Sep S&P500 flat at 2,089

***Commodities/Fixed Income***
- Aug gold -0.1% at $1,180/oz, Jul crude oil +0.2% at $60.07/brl, Jul copper +0.1% at $2.62/lb
- (US) API Petroleum Inventories: Crude -2.9M (2nd straight draw) v -1.5Me; Gasoline -2.9M v -0.5Me; ; Distillate +1.6M v +1Me
- (JP) BOJ offers to buy ¥375B in 1-3yr JGBs, ¥400B in 3-5yr JGBs, and ¥400B in 5-10yr JGBs
- (AU) Australia MoF (AOFM) sells A$900M in 3.25% 2025 Bonds; avg yield: 2.9799%; bid-to-cover: 3.74x

***Market Focal Points/FX***
- Asian indices remain mixed going into Wednesday's crucial FOMC policy update, with Australia outperforming and Shanghai Composite extending its decline to a 2-week low below 4,800. Losses on the mainland remain heavy despite outsized gains for one of China's top banks - BoCom - receiving approval from regulators to optimize the shareholding structure, explore the introduction of private capital, and consider mechanism of shareholding by senior management and employees. Reform of human resources and remuneration would also be implemented in what appears to be a test of westernized financial institution on the mainland.

- Japan May merchandise trade deficit was smaller than expected, but both import and export components undershot expectations, revealing continued hardship in Asia's 2nd largest economy in spite of the recent acceleration in yen selling. Exports growth of 2.4% also marked a 9-month low, with exports to US slowing to just 7.4% v 21.4% prior and exports to Europe remaining nearly flat. Shipments from Japan to China also slowed from 2.4% to 1.1%.

- Australia's Westpac leading index slowed with a 0.1% decline, and resident economist noted the "stalling momentum mid-year is a concern given the recent reduction in interest rates and hopes that this would help generate a more convincing upswing in Australia's consumer and non-mining business sectors." Australia stock index was still higher, as investors cheered the formal signing of a free trade agreement with China, its biggest trading partner. PM Abbott called the signing, estimated to allow more than 85% of Australian goods to enter China without penalties, a "milestone in bilateral relations". Australia's top retail name Woolworth offered a trading update, and despite cutting its FY15 outlook shares were up on resignation of company CEO perceived to be ineffective.

- USD majors saw their typically low pre-FOMC volatility. AUD/USD and NZD/USD were down less than a third of a percent with respective lows below 0.7730 and 0.6970, USD/JPY up a marginal 0.1% above 123.40, and EUR/USD rising about 25pips above 1.1260.

***Equities***
US equities / ADRs:
- BOBE: Reports Q4 $0.56 (adj) v $0.44e, R$332M v $331Me; +4.4% afterhours
- ADBE: Reports Q2 $0.48 v $0.45e, R$1.16B v $1.16Be; -1.4% afterhours
- LZB: Reports Q4 $0.39 v $0.38e, R$375M v $380Me; -4.1% afterhours

Notable movers by sector:
- Consumer discretionary: Zhonghe Co 002070.CN -6.5% (profit warning); China Eastern Airlines 670.HK +1.7% (private placement); Fast Retailing 9983.JP -0.6% (strike in China)?Tsuruha Holdings 3391.JP -4.8% (FY14/15 result)
- Consumer staples: Woolworths Limited WOW.AU +1.8% (CEO to retire, cuts guidance)
- Financials: Bank of Communications 3328.HK +3.5% (approval for deepening reform); China Merchants Bank 600036.CN +0.8% (cooperation with Anbang Insurance); Bank of China 601988.CN +3.5% (participation in gold price auction); Pudong Development Bank 600000.CN -0.4% (to acquire Shanghai Trust); Sunac China Holdings 1918.HK +2.4% (terminates target company acquisitions from Kaisa); PICC Property & Casualty 1339.HK +2.8% (YTD premium income)
- Industrials: WDS Ltd WDS.AU -10.3% (lowers guidance); Austal Ltd AUB.AU -0.7% (awarded contract); GUD Holdings GUD.AU +1.2% (private placement)
- Technology: Shaanxi Broadcast & TV Network Intermediary 600831.CN +10.0% (private placement); Sharp Corp 6753.JP +0.6% (plans for capital replenishment and potential management changes)
- Materials: Metallurgical Corporation of China 601618.CN +0.9% (YTD contracts); Medusa Mining MML.AU -0.6% (guidance)

>>> US After Hours

After Hours Summary: BOBE +4.0%, ITI +1.1%, DTEA -11.0%, LZB -4.2%, NR -3.5%, ADBE -1.6% following earnings/guidance
After Hours Gainers:

Companies trading higher in after hours in reaction to earnings: BOBE +4.0%, ITI +1.1%

Companies trading higher in after hours in reaction to news: ANTH +2.9% (announced that it has met the enrollment target of its CHABLIS-SC1 Phase 3 clinical trial evaluating blisibimod for the treatment of lupus. Final data from the trial is expected in the second half of 2016), RLH +2.8% (HNA Group acquired ~3 mln shares of RLH's common stock), directly from Columbia Pacific), FFIC +0.9% (announced authorization of 1 mln share stock repurchase program), SRE +0.2% (announced Board authorization to pursue the formation and IPO of a publically traded partnership, called Sempra Partners)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: DTEA -11.0%, LZB -4.2%, NR -3.5%, ADBE -1.6%

Companies trading lower in after hours in reaction to news: AZUR -8.5% (announced public offering of 3.5 mln common units; provided quarterly update), NR -3.5% (provided operational update: seen a modest reduction in Fluids Systems revenues since May, driven by continued slide in U.S. rig counts and weather-related delay), ARNA -2.3% (announced that CFO Robert Hoffman has decided to leave the company to pursue another opportunity in the biotechnology industry, will remain in role until July, 2015), VEC -0.9% (disclosed that Theodore R. Wright, EVP and Chief Operating Officer will retire effective June 30, 2015), ADES -0.5% (provided accounting update; appointed A. Bradley Gabbard as CFO), EGN -0.4% (announced that over the past week, it has entered into swap contracts for approximately 1.1 million barrels of 2016 oil production at an average NYMEX price of $63.80 per barrel)

>>> Adobe Systems beats by $0.03, reports revs in-line; guides Q3 EPS below cons

Adobe Systems beats by $0.03, reports revs in-line; guides Q3 EPS below consensus, revs below consensus; guides FY15 EPS below consensus, revs below consensus  

--> Reports Q2 (May) earnings of $0.48 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.45; revenues rose 8.8% year/year to $1.16 bln vs the $1.16 bln consensus. Digital Media Annualized Recurring Revenue grew to $2.35 billion exiting the quarter, driven by an increase in Creative ARR of $230 million to $2.02 billion.
- Co issues downside guidance for Q3, sees EPS of $0.45-0.51, excluding non-recurring items, vs. $0.54 Capital IQ Consensus Estimate; sees Q3 revs of $1.175-1.225 bln vs. $1.24 bln Capital IQ Consensus Estimate. Q3 Guidance: Expect Digital Media segment revenue to grow on a sequential basis. Expect Adobe Marketing Cloud revenue to grow approximately 21% on a YoY basis
- Co issues downside guidance for FY15, sees EPS of $2.05, excluding non-recurring items, vs. $2.08 Capital IQ Consensus Estimate; sees FY15 revs of $4.845 bln vs. $4.88 bln Capital IQ Consensus Estimate. FY15 Guidance: Expect Digital Media ARR of ~$2.925 billion by FY15 year-end. Expect Adobe Marketing Cloud annual bookings growth of ~30%. Expect Adobe Marketing Cloud second half FY15 YoY revenue growth of ~24%.


>>> US Close Dow+0.64% S&P+0.54% Nasdaq+0.51% Russell+0.63%

Closing Market Summary: S&P 500 Settles Above 100-Day Moving Average

The stock market ended the Tuesday session on an upbeat note with the S&P 500 adding 0.6%. In addition to posting a solid gain, the benchmark index reclaimed its 100-day moving average (2,089) after settling below that mark on Monday.

Equity indices began the day near their flat lines and rallied throughout the day, unperturbed by the lack of progress between Greece and its creditors. Furthermore, the rhetoric in Athens intensified with Greek Prime Minister Alexis Tsipras saying the International Monetary Fund bears "criminal" responsibility for the current state of the Greek economy. Mr. Tsipras' remarks were made in front of the Greek parliament with the premier adding that another round of elections is not in the cards.

Similar to U.S. equities, European stocks were able to rally despite the lack of positive developments. Meanwhile, Germany's 10-yr bund climbed, sending its yield lower by three basis points to 0.80% while the U.S. 10-yr note also rallied with its yield slipping four basis points to 2.32%.

All ten sectors posted gains with consumer staples (+1.1%) leading the advance. The sector rebounded from yesterday's underperformance amid broad strength while other countercyclical groups ended mixed with respect to the broader market. Similar to consumer staples, the telecom services sector (+0.8%) outperformed while health care (+0.5%) and utilities (+0.4%) settled behind the broader market.

The health care sector ended a bit behind the S&P 500 with biotechnology contributing to the underperformance. Still, the iShares Nasdaq Biotechnology ETF (IBB 364.38, +0.70) added 0.2%.

Moving to the cyclical side, the top-weighted technology sector (+0.6%) outperformed throughout the session while three of the remaining five growth-sensitive groups also displayed relative strength. The energy sector (+0.8%) rallied alongside crude oil, which rose 0.8% to $60.00/bbl.

Also of note, the industrial sector (+0.1%) turned positive during the late afternoon, but still ended behind the remaining nine sectors as transport stocks weighed. The Dow Jones Transportation Average lost 0.3%, extending this week's decline to 0.8%. United Continental (UAL 51.23, -1.02) was the weakest performer, falling 2.0%, while Con-way (CNW 40.30, -0.96) lost 1.6% after peer Oshkosh (OSK 46.71, -3.59) lowered its guidance.

Once again, today's participation was below average with roughly 640 million shares changing hands at the NYSE floor.

Economic data was limited to Housing Starts and Building Permits:
  • Housing starts declined 11.1% in May to 1.036 million from an upwardly revised 1.165 million (from 1.135 million) in April while the consensus expected a decline to 1.100 million 
    • In April, housing starts rose 22.1%, which was a historic, multi-decade high. It was only natural for housing starts to pull back following such a large increase 
    • Even after the decline, May starts were above Q1 averages (978,000) and in-line with trends from Q4 2014 (1.055 million) 
    • Building permits rose to a seasonally adjusted annualized rate of 1.275 million in May from a revised 1.140 million for April (from 1.143 million) while the consensus expected a decline to 1.100 million 
Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET while the latest FOMC policy statement will be released at 14:00 ET.
  • Nasdaq Composite +6.8% YTD 
  • Russell 2000 +5.4% YTD 
  • S&P 500 +1.8% YTD 
  • Dow Jones Industrial Average +0.5% YTD