Friday, October 21, 2011

Barchart Morning Call 10/21

Barchart Morning Call
Overnight Developments
  • European stocks this morning are trading higher with the Euro Stoxx 50 up 0.66% and Dec S&Ps up 5.40 points (+0.45%). The market is hopeful that European leaders will be able to produce an agreement with near-term meetings including finance ministers today and summits this coming Sunday and Wednesday. The discussions now center on merging the 440 billion euro temporary EFSF and bringing the permanent 500 billion euro facility forward to mid-2012 from 2013, creating a total of 940 billion euros worth of firepower. The European stock markets were able to shake off today's news that Germany's October Ifo business climate index fell to a 16-month low of 106.4 from 107.4 in September, which was slightly weaker than market expectations of 106.2. French Oct business confidence today fell 2 points to 97 from 99 in September, which was a bit weaker than market expectations for a 1 point drop to 98. S&P today issued a report saying that in a stressed economic scenario, France would likely receive a 1-step downgrade and that Spain, Italy, Ireland and Portugal would likely receive one or two step downgrades. Microsoft is down 0.5% this morning in European trading after reporting in-line earnings. GE this morning reported in-line earnings of 21 cents per share. Groupon filed to raise $540 million in its IPO with a pricing indication of $16-18 per share. Groupon goes on the road next week to pitch the IPO to investors. Asian stocks today closed mixed with Japan -0.04%, Hong Kong +0.24%, China -0.50%, Taiwan +0.14%, Australia -0.07%, Singapopre +0.68%, South Korea +1.89%, Bombay -0.89%.
Overnight U.S. Stock News
  • December S&Ps this morning are trading +5.40 (+0.45%) on the 0.66% rally in European stocks and some optimism going into Sunday's EU summmit. The US stock market yesterday settled mixed as a strong Oct Philadelphia Fed manufacturing index and reduced European debt crisis concerns offset weakness in technology stocks: Dow Jones +0.32%, S&P 500 +0.46%, Nasdaq Composite -0.21%. The Nasdaq fell to a 1-week low. Bearish factors included (1) carry-over weakness from a slide in European stocks on concern that this weekend's EU summit will fail to find a solution the region's debt crisis after German Chancellor Merkel canceled her planned speech to parliament in Berlin on Friday because of a deadlock over proposals to leverage the EFSF to give it more firepower along with a report from the Die Welt newspaper that Germany hasn't ruled out postponing the Oct 23 summit because of stalled negotiations over the EFSF, (2) concern that Greece may yet default on its sovereign debt after the troika reported that Greece's medium-term growth prospects may be lowered as additional austerity measures will likely be needed to meet its 2012-14 targets, (3) comments from St Louis Fed President Bullard who said he's hesitant to back more stimulus because CPI inflation is "making me nervous," and (4) weakness in technology stocks after Dell slumped when Western Digital, one of its suppliers, said flooding in Thailand may hamper its production for months.
  • Bullish factors included (1) reduced concern that the U.S. economic recovery was faltering after the Oct Philadelphia Fed manufacturing index unexpectedly expanded and rose to its best level in 6 months (+26.2 to 8.7 versus expectations of +8.4 to -9.1), and (2) the joint statement from France and Germany that they agree on the need for an ambitious response to Europe's debt crisis and will hold a second summit next week, which eased concern that a rift between the two countries may keep the debt crisis from getting resolved.
Today's Market Focus
  • December 10-year T-notes this morning are down 0.5 tick as the market treads water ahead of Sunday's EU Summit. T-note prices yesterday moved lower on a strong Oct Philadelphia Fed manufacturing index and on reduced safe-haven demand after European leaders said they will hold a second summit next week to address the region's sovereign debt crisis: TYZ11 -4.5, FVZ11 -1.7, EDH12 -0.5. Bearish factors included (1) the unexpected expansion in the Oct Philadelphia Fed manufacturing index which rose to its best level in 6 months (+26.2 to 8.7 versus expectations of +8.4 to -9.1), (2) comments from St Louis Fed President Bullard who said some economic data has improved in Sep and Oct and that he's hesitant to back more stimulus because CPI inflation is "making me nervous," and (3) reduced safe-haven demand from the European debt crisis after the joint statement from France and Germany that they want Euro-Zone leaders to agree on a "comprehensive and ambitious" response to Europe's debt crisis by Oct 26 at the latest and will hold a second summit next week. Bullish factors included (1) concern that this weekend's EU summit will fail to make progress to stem the debt crisis after German Chancellor Merkel canceled her planned speech to parliament in Berlin on Friday because of a deadlock over proposals to leverage the EFSF to give it more firepower along with a report from the Die Welt newspaper that Germany hasn't ruled out postponing the Oct 23 summit because of stalled negotiations over the EFSF, and (2) concern that Greece may yet default on its sovereign debt after the troika reported that Greece's medium-term growth prospects may be lowered as additional austerity measures will likely be needed to meet its 2012-14 targets.
  • The dollar index this morning is slightly higher by +0.05 points (+0.07%) with the dollar/yen down 0.04 yen and the euro/dollar down 0.14 cents. The dollar index yesterday settled lower after the euro recovered from early losses when France and Germany issued a joint statement that they want Euro-Zone leaders to agree on a "comprehensive and ambitious" response to Europe's debt crisis: Dollar Index -0.1404, USDJPY -0.015, EURUSD +0.00204. Bearish factors included (1) euro-supportive comments from European Commission President Barroso who said a "positive outcome" was possible at the Oct 23 meeting of European finance ministers in Brussels, (2) comments from EU President Rompuy who said that reports of French-German differences over leveraging the Euro-Zone's rescue fund are exaggerated, and (3) reduced safe-haven demand for the dollar after France and Germany issued a joint statement saying they want Euro-Zone leaders to agree on a "comprehensive and ambitious" response to Europe's debt crisis. Bullish factors included (1) concern that European leaders will be unable to agree on a solution to the debt crisis after the Die Welt newspaper reported that Germany hasn't ruled out postponing the Oct 23 summit because of stalled negotiations over the EFSF, (2) the statement from the troika that Greece's medium-term growth prospects may be lowered as additional austerity measures will likely be needed to meet 2012-14 targets, and (3) the unexpected expansion in the Oct Philadelphia Fed manufacturing index to its best level in 6 months, which signals economic strength and is dollar supportive.
  • Dec crude oil prices this morning are up 26 cents a barrel (+0.30%) and Dec gasoline is down 1.51 cents per gallon (0.57%). Gasoline prices are seeing some weakness tied to Qaddafi's death and hopes for a faster resumption of Libyan crude oil production and put some downward pressure on Brent crude oil and by extension U.S. gasoline prices. Crude oil and gasoline prices yesterday settled mixed as dollar strength was offset by stronger-than-expected U.S. manufacturing data: CLZ11 -$0.22, RBZ11 +1.210. Dec gasoline posted a 1-week low. Bearish factors included (1) concern that EU leaders won't reach an agreement at a summit this weekend on strengthening the European bailout fund after the Die Welt newspaper reported that Germany hasn't ruled out postponing the Oct 23 summit because of stalled negotiations over the EFSF, and (2) optimism that the death and capture of Libya?s Muammar Qaddafi will lead to an end of civil unrest in Libya and speed up the restarting of Libyan crude production. Bullish factors included (1) the unexpected expansion in the Oct Philadelphia Fed manufacturing index to its best level in 6 months, which signals economic strength and greater fuel consumption and (2) the statement from Barclays Plc that the fall in U.S. crude inventories to their 5-year seasonal average for the first time in the last 15 months signals the end of the U.S crude oil inventory glut.
Today's U.S. Earnings Reports Earnings reports (confirmed releases, sorted by mkt cap): GE-General Electric (BEST earnings consensus $0.31), VZ-Verizon Communications (0.55), MCD-McDonalds (1.43), SLB-Schlumberger Ltd. (1.01), HON-Honeywell International (1.00), APD-Air Products & Chemicals (1.51), STI-SunTrust Banks (0.35), DOV-Dover (1.13), KSU-Kansas City Southern (0.75), KCI-Kinetic Concepts (1.29), IDXX-Idexx Labs (0.65), NVR-NVR Inc. (7.57), MAN-Manpower (0.94), HAR-Harman International Industries (0.52), GNC-GNC Holdings (0.35), KRO-Kronos Worldwide (0.79).
Global Financial Calendar
Friday 10/21/11
United States
1200 ET Former Kansas City Fed President Thomas Hoenig speaks at the Shadow Open Market Committee?s Fall Symposium.
1300 ET Minneapolis Fed President Narayana Kocherlakota speaks to the Harvard Club of Minnesota.
1320 ET Dallas Fed President Richard Fisher gives an economic update to the Friday Group in Dallas, TX.
1500 ET Fed Vice Chairman Janet Yellen speaks on ?The Outlook for the U.S. Economy and Economic Policy? at the Financial Management Association International Annual Meting in Denver, CO.
France
0245 ET Oct French business confidence indicator expected -1 to 98, Sep -3 to 99.
Euro-Zone
0340 ET ECB President Jean-Claude Trichet and fellow ECB Council member Juergen Stark speak at a conference in Warsaw.
Germany
0400 ET Oct German IFO business climate expected -1.3 to 106.2, Sep -1.2 to 107.5. Oct IFO current assessment expected -1.5 to 116.4, Sep-0.2 to 117.9. Oct IFO expectations expected -1 to 97.0, Sep -2 to 98.0.
United Kingdom
0430 ET Sep U.K. public sector net borrowing expected 11.8 billion pounds, Aug 13.2 billion pounds.
Canada
0700 ET Sep Canada CPI expected +0.1% m/m and +3.0% y/y, Aug +0.3% m/m and +3.1% y/y.
0700 ET Sep Bank of Canada core CPI expected +0.2% m/m and +1.9% y/y, Aug +0.4% m/m and +1.9% y/y.

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Allergan - AGN - Barchart Chart of the Day

Barchart.coms Chart of the Day - Allergan (AGN)
Related Stocks
AGN - Allergan
Sym Last Chg Pct
AGN 88.19 +1.61 +1.86%
The "Chart of the Day" is Allergan (AGN), which showed up on Thursday's Barchart "All Time High" list. Allergan on Thursday rallied by 1.92% and posted a new all-time high of $86.35. TrendSpotter has been Long since Sep 7 at $82.42. In recent news on the stock, Wells Fargo on Oct 17 reiterated its Outperform rating and said it believes interest is high among physicians for using botox as a migraine medication. Cowen on Oct 14 said that Allergan shares should be purchased immediately based on the company's launch of botox for migraine treatment. Cowen reiterated its Buy recommendation. Allergan, with a market cap of $26.3 billion, is a provider of eye care and specialty pharmaceutical products throughout the world with products in the eye care pharmaceutical, ophthalmic surgical device, over-the-counter contact lens care, movement disorder, and dermatological markets.

agn_700_01
How we found the Chart of the Day:
We found the "Chart of the Day" by scanning the Barchart "All Time High" list. In order to get to that list, we first clicked on the Stocks menu item on the Barchart home page, then on the "All Time Highs" menu item on the left menu bar. We then sorted the list by percentage gainers by clicking on the "Percent" column title. A stock that has posted a new All-Time high is typically showing strong upside momentum.
The status of Barchart's Opinion trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 10 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com web site when you read this report.
  • TrendSpotter: Buy
  • Short-Term Indicators: 80% Buy
  • Medium-Term Indicators: 100% Buy
  • Long-Term Indicators: 33% Buy
  • Overall Average 80% Buy


Barchart links for further information:

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Quote
Detailed Quote
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Technicals Summary
Trader's Cheat Sheet™

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Company Info
Company Profile
Key Statistics
Ratios
Income Statement-Quarterly
Income Statement-Annual
Balance Sheet-Current
Balance Sheet-Annual


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View Past Chart of the Day Reports

Wednesday, October 19, 2011

Don't count Apple out yet

Today Apple (AAPL) stores across the country will be closed around 10AM so that store employees can watch the memorial service for Steve Jobs live.  Never since the days of Ford and Edison has a company been so tied to the image of the founder.  There is one big question on all investor's minds:  Can the company continue to innovate in the future as well as it has in the past?  Over the last 25 year the stocks price has grown 13, 076% and some are predicting it will go on.  The monthly price graph of the last 7 1/2 years provided by Barchart shows the momentum:


Apple Inc.(AAPL) , together with subsidiaries, designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. The company sells its products worldwide through its online stores, retail stores, direct sales force, third-party wholesalers, resellers, and value-added resellers.

In addition, it sells third-party Mac, iPhone, iPad, and iPod compatible products, including application software, printers, storage devices, speakers, headphones, and other accessories and peripherals through its online and retail stores; and digital content and applications through the iTunes Store.

The company sells its products to consumer, small and mid-sized business, education, enterprise, government, and creative markets. As of September 25, 2010, it had 317 retail stores, including 233 stores in the United States and 84 stores internationally. The company, formerly known as Apple Computer, Inc., was founded in 1976 and is headquartered in Cupertino, California. (Yahoo Finance profile)

Factors to consider:

Barchart technical indicators:

  • 96% Barchart technical price momentum buy signal
  • Trend Spotter technical buy signal
  • Trading above its 20, 50 and 100 day moving averages
  • Trading up in 3 of the last 5 trading session and up 5.48%
  • 32.78% price gain in the last 12 months and only1.05% off its 1 year high
  • Relative Strength Index 66.81% and rising
  • Barchart computes a technical support level at 412.19
  • Recently traded at 422.24 with a 50 day moving average of 387.24
Fundamental factors:
  • This is and always has been a Wall Street darling and as each new month passes another brokerage analysts initiates coverage
  • Analysts project sales to increase by 67.80% this year and another 24.50% next year
  • Earnings estimates are off the chart with an expected increase of 84.20% this year, 19.40% next year and a 5 year annual increase of 22.95 forecasts
  • These numbers resulted in 28 strong buy, 23 buy, 3 hold and one sell.  Since that BWS Financial sell report on 10/6/2011 the stock has climbed another 11.81%
  • The recent earnings report was not what analysts expected and the stock may take a short term hit.
  • The company delayed the new iPhone 4S product launch till this quarter so none of the last quarters results have these sales in them.
  • The company enjoys an A++ financial strength rating and has had very good price growth persistence
  • Tim Cook has really been in the driver's seat for some time and it appears this was a planned leadership succession
General investor interest:
  • This is the most widely followed stock on Motley Fool and 26,912 readers have expressed an opinion on this company's future
  • The readers voted 92% that the stock would still beat the market
  • The more savvy All Stars voted 96% for the same result
  • Fool notes that 59 of the 60 Wall Street columnists they follow are writing positive articles about the company
A sample of columnists that have picked the stock:
  • Robert Walbe on 1/2007 - up 346% since the pick
  • Tobin Smith on 4/2007  - up 323% since the pick
  • Charles Payne on 3/2008 - up 195% since the pick
Competitors and sector leaders:

Its always a good idea to compare a stock's price action for the past year with that of their major competitors - Apple (AAPL) is up 36%, Google (GOOG) down 2%, Hewlett-Packard (HPQ) down 40% and Research in Motion (RIMM) down 51%:


APPL is a member of the SIC 3571 Electronic Computer sector and some of the other members have also has positive price movement in the past year with Teradata (TDC) up 59%, Super Micro Computers (SMCI) up 39%, Silicon Graphics (SGI) up 64% and Dell (DELL) up 13%:


Summary:  Apple (AAPL) has enjoyed great success and I predict that Steve Jobs left the company in good hands.  The new products like the iPhone 4S and the others in the pipeline will continue to attract the cult following that have paid premium dollar of their products in the past.  If the numbers projected are made investors could still see an annual return in the 21% - 23% range for at least the next 5 years.

Jim Van Meerten is a Marketocracy Master






Domino's Pizza - DPZ _ Barchart Chart of the Day

Barchart.coms Chart of the Day - Dominos Pizza (DPZ)
Related Stocks
DPZ - Domino's Pizza Inc
Sym Last Chg Pct
DPZ 29.85 +1.99 +7.14%
The "Chart of the Day" is Domino's Pizza (DPZ), which showed up on Tuesday's "TrendSpotter New Buy" list. Domino's Pizza on Tuesday rallied by 7.14% and posted a new all-time high of $30.27. Domino's Pizza on Tuesday reported Q3 adjusted EPS of 35 cents versus the consensus of 33 cents. Oppenheimer on Sep 6 reiterated its Outperform on Domino's and said that Domino's continues to gain market share. Domino's Pizza, with a market cap of $1.7 billion, operates franchised and Company-owned pizza stores in the United States and in more than 50 countries.

dpz_700
How we found the Chart of the Day:
We found the "Chart of the Day" by scanning the Barchart "Trading Signals" page. That page provides a summary of changes in the Barchart signals. We then clicked on the TrendSpotter "Buy" category to obtain a list of all the stocks for which the Barchart TrendSpotter trading system has just turned to a buy. We then clicked on the "Today's Opinion" column header in order to sort the list with the strongest stocks on top. Further information is available at Barchart Signals Guide help page and at TrendSpotter help page.
The status of Barchart's Opinion trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 10 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com web site when you read this report.
  • TrendSpotter: Buy
  • Short-Term Indicators: 100% Buy
  • Medium-Term Indicators: 100% Buy
  • Long-Term Indicators: 100% Buy
  • Overall Average 100% Buy


Barchart links for further information:

Quotes and Charts
Quote
Detailed Quote
Chart

Technical Analysis
Technicals Summary
Trader's Cheat Sheet™

Barchart Opinions
Barchart Opinion
Barchart Snapshot
Trading Strategies

Company Info
Company Profile
Key Statistics
Ratios
Income Statement-Quarterly
Income Statement-Annual
Balance Sheet-Current
Balance Sheet-Annual


Chart of the Day Archive
View Past Chart of the Day Reports

Tuesday, October 18, 2011

Barchart Morning Call 10/18

Barchart Morning Call
Overnight Developments
  • Global stocks this morning are lower with the Euro Stoxx 50 down -1.02% and Dec S&Ps down -3.40 points. Commodities fell and the dollar gained after China's economy grew at the slowest pace in 2 years and after the Oct German ZEW economic sentiment survey fell -5.0 to -48.3, more than expected and its lowest level in nearly 3 years. The euro weakened and BNP Paribas SA and Societe Generale, France's biggest banks, tumbled more than 5% after Moody's Investors Service warned that France's Aaa credit rating is under pressure from deterioration in debt metrics and the potential for additional liabilities from Europe's debt crisis. The extra yield investors demand to hold French 10-year bonds instead of benchmark German bunds widened over 100 bp for the first time since the introduction of the euro in 1999. Treasuries rallied as stocks weakened and after Chicago Fed President Evans late yesterday said the U.S. faces "massive shortfalls" in output and job creation and reiterated his proposal to keep the Fed funds rate near zero until either the unemployment rate falls below 7% or the medium-term inflation outlook rises above 3%. U.S. stock futures were also under cut as IBM fell 4% in European trading after the company reported late yesterday Q3 sales of $26.2 billion, below analysts' estimates of $26.3 billion.
  • Asian stocks today closed weaker with Japan down -1.55%, China -2.80%, Australia -2.07%, South Korea -1.48%, Inida -1.63%. China's economy grew at a +9.1% y/y pace in Q3, weaker than the +9.3% y/y expected and the slowest pace of growth since 2009 amid tighter credit and slower demand from Europe. Asian banks declined after German Chancellor Merkel dampened speculation of a quick resolution to the European debt crisis, while Japanese consumer-electronics makers closed lower after Goldman Sachs cut ratings and price targets on concern a strong yen and falling prices for televisions will hurt earnings. Asian mining companies and energy and raw-material producers also fell on demand concerns, while Chinese steel producers tumbled as steel prices in China dropped to their lowest level in 10 months amid the slowing economy.
Overnight U.S. Stock News
  • December S&Ps this morning are trading down -3.40 points. The US stock market yesterday slumped after Germany dampened optimism of a quick fix to the European debt crisis and bank stocks tumbled after Wells Fargo reported disappointing Q2 revenue results: Dow Jones -2.13%, S&P 500 -1.94%, Nasdaq Composite -1.98%. Bearish factors included (1) carry-over weakness from a slide in European stocks after comments from German Chancellor Merkel's chief spokesman that threw cold water on expectations for a quick resolution to the European sovereign debt crisis when he said that European leaders won't fulfill any "dreams" of a quick end to the European debt crisis at their Oct 23 summit, (2) the smaller-than-expected increase in the Oct Empire manufacturing index (+0.3 to -8.5 versus expectations of +4.8 to -4.0), (3) comments from ECB Council member Stark who said the consequences of Greece leaving the Euro-Zone would be "incalculable," and (4) the slump in bank stocks after Wells Fargo tumbled after it reported Q2 revenue of $19.6 billion, below estimates of $20.2 billion.
  • Bullish factors included (1) increased M&A activity as El Paso surged after Kinder Morgan agreed to buy the company for $21.1 billion and (2) the Sep U.S. industrial production which rose +0.2% as-expected and the Sep capacity utilization which rose +0.1 and matched a 3-year high at 77.4%.
  • International Business Machines (IBM) slipped 4.1% in European trading after the company reported late yesterday Q3 sales of $26.2 billion, below analysts' estimates of $26.3 billion.
Today's Market Focus
  • December 10-year T-notes this morning are up +10.5 ticks. T-note prices yesterday shed early losses and settled higher on weak U.S. manufacturing data along with increased safe-haven demand after stocks fell on concern Europe may take longer to contain its sovereign debt crisis: TYZ11 -10, FVZ11 +0.7, EDH12 +1.5. Bullish factors included (1) the smaller-than-expected increase in the Oct Empire manufacturing index (+0.3 to -8.5 versus expectations of +4.8 to -4.0) and (2) increased safe-haven demand for Treasuries as equity markets tumbled when Germany threw cold water on expectations for a quick resolution to the European sovereign debt crisis after Chancellor Merkel?s spokesman said that European leaders won't fulfill any "dreams" of a quick end to the European debt crisis at their Oct 23 summit. Bearish factors included (1) the Sep U.S. industrial production which rose as-expected +0.2% and the Sep capacity utilization which rose +0.1 and matched a 3-year high at 77.4% and (2) reduced foreign demand for Treasuries after Fed data showed that its holdings of U.S. government debt on behalf of foreign central banks and institutions fell -$76.5 billion in the last 7 weeks, the most in 4 years.
  • The dollar index this morning is stronger with the dollar/yen -0.13 yen and the euro/dollar -0.55 cents. The dollar index yesterday rebounded from a 1-month low and settled higher on increased safe-safe haven demand after the euro and equity markets tumbled when Germany expressed doubts about a quick resolution to the European debt crisis: Dollar Index +0.523, USDJPY -0.379, EURUSD -0.01433. Bullish factors included (1) euro weakness after German Chancellor Merkel's chief spokesman said that European leaders won't fulfill any "dreams" of a quick end to the European debt crisis at their Oct 23 summit, (2) the statement from the German Institute for Economic Research that said enlarging the EFSF may lead to France "losing its top AAA rating," (3) comments from ECB Council member Stark who said the consequences of Greece leaving the Euro-Zone would be "incalculable," and (4) increased safe-haven demand for the dollar as equity markets slid and after Canadian Finance Minister Flaherty said "time is running out" for European leaders to solve the debt crisis that has begun to spread as Europe risks a banking crisis if it doesn't dedicate more funding or an "adequate restructuring" of Greek debt. Bearish factors included (1) the weaker than expected Oct Empire manufacturing index, which indicates economic weakness and is dollar negative and (2) the action by G-20 leaders meeting in Paris over the weekend to endorse parts of plan to bolster banks and avoid a Greek default which temporarily boosted stocks and reduced safe-haven demand for the dollar in early trade.
  • Nov crude oil prices this morning are down -22 cents a barrel and Nov gasoline is -1.96 cents per gallon. Crude oil and gasoline prices yesterday fell back from an early rally and closed lower after Germany dampened optimism for a quick fix to the European debt crisis and after manufacturing data in the New York region contracted more than expected: CLX11 -$0.42, RBX11 -8.18. Nov crude posted a 1-month high and Nov gasoline climbed to a 1-1/4 month high before both contracts shed their gains and closed lower. Bearish factors included (1) a reversal in the dollar after the dollar index rebounded from a 1-month low and settled higher, which reduced investment demand for commodities, (2) comments from German Chancellor Merkel's chief spokesman who said expectations that the European debt crisis will be resolved at the Oct 23 summit were "dreams," and (3) the larger-than-expected contraction in the Oct Empire manufacturing index, which signals reduced energy demand. Bullish factors included (1) early optimism that G-20 leaders would come up with a plan avoid a Greek default and bolster European banks and (2) speculation that Chinese energy demand will remain strong on optimism Q3 China GDP, to be released late Monday, will show China's economy expanding above +9.0% y/y for the ninth straight quarter.
Today's U.S. Earnings Reports Earnings reports (confirmed releases, sorted by mkt cap): AAPL-Apple (BEST earnings consensus $7.35), JNJ-Johnson & Johnson (1.21), KO-Coca-Cola (1.02), INTC-Intel (0.62), BAC-Bank of America (0.24), UNH-UnitedHealth Group (1.12), GS-Goldman Sachs Group (-0.11), EMC-EMC Corp. (0.36), CSX-CSX Corp. (0.44), YHOO-Yahoo! (0.17), STT-State Street (0.89), ISRG-Intuitive Surgical (2.76), CHKP-Check Point Software Technolgy (0.69), OMC-Omnicom Group (0.70), JNPR-Juniper Networks (0.28), GWW-WW Grainger (2.34), HOG-Harley-Davidson (0.79).
Global Financial Calendar
Tuesday 10/18/11
United States
0745 ET ICSC (Int?l Council of Shopping Centers) weekly retailer sales.
0815 ET Boston Fed President Eric Rosengren delivers opening remarks at the Boston Federal Reserve Conference titled ?Long-Term Effects of the Great Recession.?.
0830 ET Sep PPI expected +0.2% m/m and +6.4% y/y, Aug unchanged m/m and +6.5% y/y. Sep PPI ex food & energy expected +0.1% m/m and +2.4% y/y, Aug +0.1% m/m and +2.5% y/y.
0855 ET Redbook weekly retailer sales.
0900 ET Aug net long-term TIC flows expected -$20.0 billion, Jul +$9.5 billion.
1000 ET Oct NAHB housing market index expected +1 to 15, Sep -1 to 14.
1130 ET Weekly 4-week and monthly 1-year T-bill auctions.
1315 ET Fed Chairman Ben Bernanke speaks at the Boston Federal Reserve Conference.
1830 ET Atlanta Fed President Dennis Lockhart speaks on the economic outlook in Chattanooga, TN.
Japan
0130 ET Sep Japan nationwide department store sales, Aug -1.7% y/y.
0200 ET Revised Sep Japan machine tool orders, previous +20.3% y/y.
United Kingdom
0430 ET Sep U.K. CPI expected +0.4% m/m and +4.9% y/y, Aug +0.6% m/m and +4.5% y/y.
0430 ET Sep U.K. core CPI expected +3.2% y/y, Aug +3.1% y/y.
0430 ET Sep U.K. RPI expected +0.5% m/m and +5.4% y/y, Aug +0.6% m/m and +5.2% y/y.
0430 ET Sep U.K.RPI ex-mortgage interest payments expected +5.5% y/y, Aug +5.3% y/y.
Germany
0500 ET Oct German ZEW economic sentiment survey expected -1.7 to -45.0, Sep -5.7 to -43.3. Oct ZEW current situation survey expected -3.6 to 40.0, Sep -9.9 to 43.6.

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CenterPoint Energy - CNP - Barchart Cahrt of the Dat

Barchart.coms Chart of the Day - CenterPoint Energy (CNP)
Related Stocks
CNP - Centerpoint Energy Inc
Sym Last Chg Pct
CNP 20.51 +0.16 +0.79%
The "Chart of the Day" is CenterPoint Energy (CNP), which showed up on Barchart's "NYSE 12-Month High" list. CenterPoint Energy on Monday rallied by 0.79% and posted a new 10-year high. TrendSpotter has been Long since Sep 29 at $19.96. In recent news on the stock, SunTrust on Aug 23 upgraded CenterPoint to Buy from Neutral based on valuation and set a target of $21. Deutsche Bank on Aug 5 upgraded CenterPoint to Buy from Hold and raised its target to $20.00 from $19.50 on a pullback in the stock and on ideas that deployment of the company's cash may be a potential catalyst. CenterPoint Energy, with a market cap of $8.5 billion, sells electricity and natural gas primarily in central United States.

cnp_700
How we found the Chart of the Day:
We found the "Chart of the Day" by scanning the Barchart "New Highs/Lows" page. Then we clicked on the entry for NYSE 12-month highs. A new 12-month high is a popular sign of upside momentum. Then we applied a "Custom View" heading with the Barchart Opinion ranking as one of the columns. we then sorted the list by the Barchart Opinion ranking in order to find the stocks with the highest Opinion.
The status of Barchart's Opinion trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 10 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com web site when you read this report.
  • TrendSpotter: Buy
  • Short-Term Indicators: 80% Buy
  • Medium-Term Indicators: 100% Buy
  • Long-Term Indicators: 100% Buy
  • Overall Average 96% Buy


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Monday, October 17, 2011

Barchart Morning Call 10/17

Barchart Morning Call
Overnight Developments
  • Global stocks this morning are mostly higher with the Euro Stoxx 50 up +0.17% and Dec S&Ps down -0.70 of a point. Most commodities rallied with copper at a 2-1/2 week high after G-20 finance ministers and central bank governors concluded weekend talks in Paris endorsing parts of an emerging plan to avoid a Greek default, bolster banks and curb contagion. The Euro-Zone plan, which has yet to be made public, includes writing down Greek bonds by as much as 50%, establishing a backstop for banks, and fortifying the 440 billion-euro ($611 billion) rescue fund or EFSF. The euro retreated from a 1-month high against the dollar and stocks relinquished most of their gains after German Chancellor Merkel's chief spokesman said that European leaders won't fulfill any "dreams" of a quick end to the European debt crisis at their Oct 23 summit. Increased M&A activity is boosting U.S. equity markets as El Paso surged 37% in European trading after Kinder Morgan agreed to buy the company for $21.1 billion that would create the largest U.S. natural-gas pipeline network.
  • Asian stocks today closed mostly higher with Japan up +1.50%, China +0.50%, Australia +1.66%, South Korea +1.59%, India -0.34%. Asian stock markets closed higher on optimism European leaders will find a solution to the region's debt crisis. Chinese stocks also rose on speculation that the nation's economic growth remains strong. Tomorrow's Q3 China GDP is expected up +9.3% y/y, while below the +9.5% y/y increase in Q2, will still be the ninth straight quarter of expansion above +9.0% y/y. South Korean stocks were supported after South Korean Finance Minister Jae Wan said his country's economy is performing better than expected, while gains in Japanese stocks were limited after the Japanese government downgraded its assessment of the economy for the first time since April as the surging yen and slowing global growth weighed on economic prospects. In its monthly report, Japan's Cabinet Office said "The Japanese economy is still picking up although the pace is decelerating."
Overnight U.S. Stock News
  • December S&Ps this morning are trading down -0.70 of a point. The US stock market last Friday moved higher on optimism G-20 leaders meeting over the weekend in France will find a resolution to the European debt crisis along with strength in U.S. retail sales: Dow Jones +1.45%, S&P 500 +1.74%, Nasdaq Composite +1.82%. The S&P 500 and the Dow rose to 1-1/2 month highs and the Nasdaq posted a 2-1/2 month high. Bullish factors included (1) optimism that a resolution to the European debt crisis may be near after G-20 and IMF officials said nations are considering increasing the IMF's lending resources to help stem the crisis and Treasury Secretary Geithner said "Europe is clearly" moving to a crisis solution, (2) signs of strength in the U.S. economy after Sep retail sales rose more than forecast and Aug was revised higher (Sep +1.1% and +0.6% less autos versus expectations of +0.7% and +0.3% less autos, while Aug retail sales were revised up to +0.3% and +0.5% less autos from the originally reported unchanged and +0.1% less autos), and (3) strength in technology stocks as Google soared after posting stellar Q3 profits and Apple gained as it began selling the new version of its iPhone.
  • Bearish factors included (1) the unexpected decline in Oct U.S. University of Michigan consumer confidence (-1.9 to 57.5 versus expectations of +0.8 to 60.2), (2) the action by Standard & Poor's to cut Spain's credit rating one level to AA- with a negative outlook, and (3) weakness in bank stocks after people familiar with the discussions said European officials are considering writedowns of as much as 50% on Greek bonds.
  • El Paso (EP) surged 35% in European trading after the owner of the largest network of interstate natural-gas pipeines in the U.S was purchased by Kinder Morgan for $21.1 billion.
Today's Market Focus
  • December 10-year T-notes this morning are up +9 ticks. T-note prices last Friday settled lower after U.S. retail sales rose more than forecast along with reduced safe-haven demand on optimism G-20 leaders meeting in France will find a resolution to the European debt crisis: TYZ11 -10, FVZ11 +0.7, EDH12 +1.5. Bearish factors included (1) the stronger-than-expected Sep U.S. retail sales along with the upward revision to Aug (Sep +1.1% and +0.6% less autos versus expectations of +0.7% and +0.3% less autos, while Aug retail sales were revised up to +0.3% and +0.5% less autos from the originally reported unchanged and +0.1% less autos), (2) the larger-than-expected increase in the Sep import price index (+0.3% m/m and +13.4% y/y versus expectations of -0.4% m/m and +12.4% y/y), and (3) reduced safe-haven demand for Treasuries after the S&P 500 rallied to a 1-1/2 month high on reduced European debt concerns when G-20 and IMF officials said nations are considering increasing the IMF's lending resources to help stem the European debt crisis. Bullish factors included (1) the unexpected decline in Oct U.S. University of Michigan consumer confidence (-1.9 to 57.5 versus expectations of +0.8 to 60.2) and (2) increased safe-haven demand for Treasuries after Standard & Poor's cut Spain's credit rating one level to AA- with a negative outlook.
  • The dollar index this morning is higher as it rebounds from a 1-month low in overnight trade with the dollar/yen -0.01 yen and the euro/dollar -1.11 cents. The dollar index last Friday tumbled to a 1-month low on reduced safe-haven demand on optimism that G-20 leaders will find a resolution to the European debt crisis: Dollar Index -0.385, USDJPY +0.310, EURUSD +0.01033. Bearish factors included (1) strength in the euro which rallied to a 1-month high against the dollar after G-20 and IMF officials said nations are considering increasing the IMF's lending resources to stem the debt crisis and Treasury Secretary Geithner said "Europe is clearly" moving to a crisis solution, (2) the fall in the 1-year cross-currency basis swap rate, the rate banks pay to convert euro payments into dollars, to a 1-month low of 64 bp below the euro interbank offered rate, a sign of increased confidence in the euro, and (3) the unexpected decline in Oct U.S. University of Michigan consumer confidence, which is dollar negative. Bullish factors included (1) increased safe-haven demand for the dollar after Standard & Poor's cut Spain's credit rating one level to AA- with a negative outlook, and (2) the stronger-than-expected Sep U.S. retail sales, which signals economic strength and is dollar supportive.
  • Nov crude oil prices this morning are down -13 cents a barrel and Nov gasoline is -1.98 cents per gallon. Crude oil and gasoline prices last Friday rallied on optimism the G-20 talks in Paris will lead to a solution to the European debt crisis along with stronger-than-expected U.S. retail sales: CLX11 +$2.57, RBX11 +6.72. Nov crude posted a 3-week high and Nov gasoline climbed to a 1-month high. Bullish factors included (1) the slump in the dollar index to a 1-month low, which encourages investment demand in commodities, (2) optimism that a resolution to the European debt crisis may be near after G-20 and IMF officials said the IMF may bolster its lending resources to help stem the crisis, and (3) strength in U.S retail sales, which reduces concern over a slowdown in economic growth and energy demand. Bearish factors included (1) concern the European debt crisis may widen and curb economic growth after Standard & Poor's cut Spain's credit rating and (2) the unexpected decline in the Oct U.S. University of Michigan consumer confidence, which may lead to subdued consumer spending and fuel demand.
Today's U.S. Earnings Reports Earnings reports (confirmed releases, sorted by mkt cap): IBM-International Business Machines (BEST earnings consensus $3.22), WFC-Wells Fargo (0.72), C-Citigroup (0.82), VMW-VMware (0.49), HAL-Halliburton (0.91), SCHW-Charles Schwab (0.19), SWK-Stanley Black & Decker (1.31), HAS-Hsbro (1.30), BRO-Brown & Brown (0.30), GCI-Gannett (0.44), PKG-Packaging Corp. (0.43), STLD-Steel Dynamics (0.21), FHN-First Horizon National (0.16), MMR-McMoRan Exploration (-0.16), WDFC-WD-40 (0.53).
Global Financial Calendar
Monday 10/17/11
United States
0830 ET Oct Empire manufacturing index expected +4.8 to -4.0, Sep -1.1 to -8.8.
0915 ET Sep industrial production expected +0.2%, Aug +0.2%. Sep capacity utilization expected +0.1 to 77.5%, Aug +0.1 to 77.4%.
1130 ET Weekly 3-mo and 6-mo T-bill auctions.
1900 ET Chicago Fed President Charles Evans speaks at the Michigan Council on Economic Education?s Michigan Economic Summit Dinner.
1930 ET Richmond Fed President Jeffrey Lacker speaks on the economic outlook at the Salisbury-Wicomico Economic Development Annual Meeting.
Japan
0030 ET Revised Aug Japan industrial production, previous +0.8% m/m and +0.6% y/y. Revised Aug capacity utilization, previous +0.6% m/m.
Canada
1030 ET Q3 Canada business outlook future sales, Q2 20.0.
Euro-Zone
1035 ET ECB Council member Juergen Stark speaks before the Committee on Economic and Monetary Affairs of the European Parliament on ?Economic Governance and Crisis Management in the EU.?
CHI
2200 ET Q3 China GDP expected +9.3% y/y, Q2 +9.5% y/y.
2200 ET Sep China industrial production expected +13.4% y/y, Aug +13.5% y/y.
2200 ET Sep China retail sales expected +17.0% y/y, Aug +17.0% y/y.

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Amazon (AMZN) Barchart Chart of the Day

Barchart.coms Chart of the Day - Amazon.com (AMZN)
Related Stocks
AMZN - Amazon.Com
Sym Last Chg Pct
AMZN 242.36 -4.35 -1.76%
The "Chart of the Day" is Amazon.com (AMZN), which showed up on Friday's Barchart "All Time High" list. Amazon on Friday rallied by 4.47% and posted a new all-time high of $246.71. TrendSpotter has been Long on Amazon since Oct 10 at $231.32. In recent news on the stock, Comscore reported that Amazon.com's U.S. pageviews were up 26% in September and 19% in Q3 vs. a year ago. Stifel Nicolaus on Oct 3 upgraded Amazon to Buy from Hold and set at target of $280. Amazon.com, with a market cap of $107 billion, is the world's largest online retailer.

amzn_700
How we found the Chart of the Day:
We found the "Chart of the Day" by scanning the Barchart "All Time High" list. In order to get to that list, we first clicked on the Stocks menu item on the Barchart home page, then on the "All Time Highs" menu item on the left menu bar. We then sorted the list by percentage gainers by clicking on the "Percent" column title. A stock that has posted a new All-Time high is typically showing strong upside momentum.
The status of Barchart's Opinion trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 10 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com web site when you read this report.
  • TrendSpotter: Buy
  • Short-Term Indicators: 100% Buy
  • Medium-Term Indicators: 100% Buy
  • Long-Term Indicators: 100% Buy
  • Overall Average 100% Buy


Barchart links for further information:

Quotes and Charts
Quote
Detailed Quote
Chart

Technical Analysis
Technicals Summary
Trader's Cheat Sheet™

Barchart Opinions
Barchart Opinion
Barchart Snapshot
Trading Strategies

Company Info
Company Profile
Key Statistics
Ratios
Income Statement-Quarterly
Income Statement-Annual
Balance Sheet-Current
Balance Sheet-Annual


Chart of the Day Archive
View Past Chart of the Day Reports