Thursday, July 23, 2015

BARCHART MORNING CALL 7/23

OVERNIGHT MARKETS AND NEWS
September E-mini S&Ps (ESU15 +0.06%) are up +0.14% and European stocks are up +0.09% led by an increase in M&A activity. Cigna rose nearly 7% in pre-market trading after people familiar with the matter said Anthem is close to a deal to buy Cigna for $48 billion. Also, technology stocks are higher, led by a 13% surge in SanDisk, after the company reported Q2 earnings that were nearly double analysts' estimates. Representatives of Greece's creditor institutions will meet in Athens on Friday to hold formal negotiations on a new bailout after the Greek parliament passed a second round of reforms needed for a bailout. A Greek government official said decisions about reopening the Athens Stock Exchange and Greek financial markets will be deferred to next week. Asian stocks closed mixed: Japan +0.44%, Hong Kong +0.46%, China +2.43%, Taiwan -1.43%, Australia -0.43%, Singapore -0.08%, South Korea -0.23%, India -0.47%. Japanese stocks closed higher after Japan Jun exports rose by the most in 5 months, and China's Shanghai Composite rallied to a 3-week high, led by gains in financial companies, after data showed margin traders increased holdings of stock purchased on margin debt for a fourth day on Wednesday.
Commodity prices are mostly higher due to a weak dollar. Sep crude oil (CLU15 +0.08%) is up +0.06%. Sep gasoline (RBU15 +0.84%) is up +0.74%. Metals prices are mixed. Aug gold (GCQ15 +0.80%) is up +0.84%. Sep copper (HGU15 +0.14%) is down -0.04%. Agricultural prices are higher.
The dollar index (DXY00 -0.63%) is down -0.56% at a 1-week low. EUR/USD (^EURUSD) is up +0.59% at a 1-week high after Greece's parliament approved a second round of reforms needed for a bailout. USD/JPY (^USDJPY) is down -0.14%.

Sep T-note prices (ZNU15 +0.01%) are up +1 tick.
The Japan Jun trade balance narrowed to a -69.0 billion yen deficit from a downward revised -217.2 billion yen deficit in May, weaker than expectations of a +45.8 billion yen surplus. Jun exports rose +9.5% y/y, weaker than expectations of +10.0% y/y, although the largest increase in 5 months. Jun imports fell -2.9% y/y, a smaller decline than expectations of -4.3% y/y.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) weekly initial unemployment claims (expected -3,000 to 278,000 after last week's -15,000 to 281,000) and continuing claims report (expected +25,000 to 2.240 million after last week's -112,000 to 2.215 million), (2) Jun Chicago Fed national activity index (expected +0.12 to -0.05 after May's +0.02 to -0.17), (3) Jun leading indicators (expected +0.3% after May's +0.7%), (4) Jul Kansas City Fed manufacturing activity (expected +4 to -5 after June's +4 to -9), (5) the Treasurys's auction of $15 billion of 10-year TIPS.
There are 56 of the S&P 500 companies that report earnings today with notable reports including: Amazon.com (consensus -0.14), Visa ($0.58), AT&T (0.64), Starbucks (0.41), Caterpillar ($1.26), McDonald's (1.23), PulteGroup (0.26), Comcast (0.84), GM (1.08), Nasdaq (0.80), Under Armour (0.05), E-Trade (0.27).
U.S. IPO's scheduled to price today include: Exelixis (EXEL).
Equity conferences during the remainder of this week include: Wells Fargo Securities Telecom Symposium on Thu.
OVERNIGHT U.S. STOCK MOVERS
Eli Lilly (LLY +0.95%) gained 3% in pre-market trading after it reported Q2 EPS of 90 cents, well above consensus of 74 cents.
Texas Instruments (TXN -1.85%) reported Q2 EPS of 65 cents, right on consensus, although Q2 revenue of $3.23 billion was below consensus of $3.26 billion.
Equifax (EFX +0.76%) reported Q2 adjusted EPS of $1.15, above consensus of $1.10.
United Rentals (URI -1.45%) slid 5% in after-hours trading after it reported Q2 adjusted EPS of $1.95, better than consensus of $1.74, but then lowered guidance on fiscal 2015 revenue view to $5.8 billion-$5.9 billion from $6 billion-$6.1 billion, lower than consensus of $6 billion.
Cheesecake Factory (CAKE +1.83%) reported Q2 EPS of 69 cents, higher than consensus of 62 cents.
Crown Castle (CCI -0.22%) reported Q2 AFFO of $1.03, less than consensus of $1.06.
Fortune Brands (FBHS +0.14%) reported Q2 adjusted EPS of 59 cents, higher than consensus of 57 cents.
Covanta (CVA -2.06%) reported an unexpected Q2 EPS loss of -6 cents, below consensus of a 3 cent profit.
Discover (DFS +0.12%) reported Q2 EPS of $1.33, better than consensus $1.32, although Q2 revenue of $2.18 billion was below consensus of $2.22.
F5 Networks (FFIV +0.19%) reported Q3 EPS of $1.67, higher than consensus of $1.60.
Tractor Supply (TSCO +1.34%) reported Q2 EPS of $1.12, above consensus of $1.11.
Las Vegas Sands (LVS +0.24%) reported Q2 adjusted EPS of 60 cents, less than consensus of 61 cents.
American Express (AXP +0.05%) reported Q2 EPS of $1.42, better than consensus of $1.32.
Plexus (PLXS -0.28%) reported Q3 EPS of 69 cents, below consensus of 70 cents.
Qualcomm (QCOM -1.46%) dropped 2% in after-hours trading after it reported Q3 adjusted EPS of 99 cents, higher than consensus of 95 cents, but then lowered guidance on fiscal 2015 adjusted EPS view to $4.50-$4.70 from $4.60-$5.00, below consensus of $4.79.
MARKET COMMENTS
September E-mini S&Ps (ESU15 +0.06%) this morning are up +3.00 points (+0.14%). Wednesday's closes: S&P 500 -0.24%, Dow Jones -0.38%, Nasdaq -1.09%. The S&P 500 on Wednesday closed lower on a slide in technology stocks due to disappointing earnings results from the likes of Apple, Microsoft and Yahoo, and weakness in basic-resource companies after commodity prices plunged. Stocks recovered from their worst levels after U.S. Jun existing home sales rose by +3.2% to an 8-1/3 year high of 5.49 million units.
Sep 10-year T-notes (ZNU15 +0.01%) this morning are up +1 tick. Wednesday's closes: TYU5 +3.50, FVU5 -1.00. Sep T-notes in Wednesday rose to a 1-week high and closed higher on increased safe-haven demand for T-notes after stock prices tumbled and on reduced inflation expectations as the 10-year T-note break-even inflation rate fell to a 1-3/4 month low.
The dollar index (DXY00 -0.63%) this morning is down -0.547 (-0.56%) at a 1-week low. EUR/USD (^EURUSD) is up +0.0064 (+0.59%) at a 1-week high. USD/JPY (^USDJPY) is down -0.17 (-0.14%). Wednesday's closes: Dollar Index +0.270 (+0.28%), EUR/USD -0.00075 (-0.07%), USD/JPY +0.07 (+0.06%). The dollar index on Wednesday closed higher on the stronger-than-expected U.S. June existing home sales report of +3.2% to an 8-1/3 year high of 5.49 million units and on weakness in the commodity currencies of Canada, Australia and New Zealand against the dollar after the CRB commodity price index fell to a 3-month low.
Sep WTI crude oil (CLU15 +0.08%) this morning is up +3 cents (+0.06%). Sep gasoline (RBU15 +0.84%)is up +0.0134 (+0.74%). Wednesday's closes: CLU5 -1.67 (-3.28%), RBU5 -0.0556 (-2.97%). Sep crude and gasoline on Wednesday closed sharply lower with Sep crude at a 3-1/2 month low on the (1) a stronger dollar, (2) the unexpected +2.47 million bbl increase in weekly EIA crude inventories, more than expectations of a -1.75 million bbl draw, and (3) the +813,000 bbl increase in crude supplies at Cushing, OK, the delivery point of WTI futures, the fourth straight increase.
GLOBAL EVENT CALENDAR07/23/2015
US0830 ETWeekly initial unemployment claims expected -3,000 to 278,000, previous -15,000 to 281,000. Weekly continuing claims expected +25,000 to 2.240 million, previous 112,000 to 2.215 million.
0830 ETJun Chicago Fed national activity index expected +0.12 to -0.05, May +0.02 to -0.17.
0830 ETUSDA weekly Export Sales.
1000 ETJun leading indicators expected +0.3%, May +0.7%.
1100 ETJul Kansas City Fed manufacturing activity expected +4 to -5, Jun +4 to -9.
1100 ETTreasury announces amount of 2-year T-notes (previous $26 billion), 2-year floating-rate notes (previous $13 billion), 5-year T-notes (previous $35 billion) and 7-year T-notes (previous $29 billion) to be auctioned Jul 28-30.
1300 ETTreasury auctions $15 billion of 10-year TIPS.
UK0430 ETUK Jun retail sales including auto fuel expected +0.4% m/m and +4.8% y/y, May +0.2% m/m and +4.6% y/y.
0430 ETUK Jun retail sales ex-auto fuel expected +0.4% m/m and +5.1% y/y, May +0.2% m/m and +4.4% y/y.
EUR1000 ETEurozone Jul consumer confidence expected -0.2 to -5.8, Jun unch at -5.6.
U.S. STOCK CALENDAR07/23/2015
CompanyTickerTimeEvent DescriptionPeriodEstimate
American Electric Power Co IncAEP USBef-mktQ2 2015 Earnings ReleaseQ2 20150.806
Boston Scientific CorpBSX USBef-mktQ2 2015 Earnings ReleaseQ2 20150.214
Dow Chemical Co/TheDOW USBef-mktQ2 2015 Earnings ReleaseQ2 20150.819
EQT CorpEQT USBef-mktQ2 2015 Earnings ReleaseQ2 20150.017
Kimberly-Clark CorpKMB USBef-mktQ2 2015 Earnings ReleaseQ2 20151.359
Eli Lilly & CoLLY USBef-mktQ2 2015 Earnings ReleaseQ2 20150.737
McDonald's CorpMCD USBef-mktQ2 2015 Earnings ReleaseQ2 20151.232
Nucor CorpNUE USBef-mktQ2 2015 Earnings ReleaseQ2 20150.251
PulteGroup IncPHM USBef-mktQ2 2015 Earnings ReleaseQ2 20150.262
Snap-on IncSNA USBef-mktQ2 2015 Earnings ReleaseQ2 20152
Southwest Airlines CoLUV USBef-mktQ2 2015 Earnings ReleaseQ2 20151.009
Comcast CorpCMCSA USBef-mktQ2 2015 Earnings ReleaseQ2 20150.842
Celgene CorpCELG USBef-mktQ2 2015 Earnings ReleaseQ2 20151.23
Huntington Bancshares Inc/OHHBAN USBef-mktQ2 2015 Earnings ReleaseQ2 20150.206
T Rowe Price Group IncTROW USBef-mktQ2 2015 Earnings ReleaseQ2 20151.201
Macerich Co/TheMAC USBef-mktQ2 2015 Earnings ReleaseQ2 20150.929
AmerisourceBergen CorpABC USBef-mktQ3 2015 Earnings ReleaseQ3 20151.146
Cameron International CorpCAM USBef-mktQ2 2015 Earnings ReleaseQ2 20150.772
Quest Diagnostics IncDGX USBef-mktQ2 2015 Earnings ReleaseQ2 20151.235
Fidelity National Information Services IncFIS USBef-mktQ2 2015 Earnings ReleaseQ2 20150.708
Mead Johnson Nutrition CoMJN USBef-mktQ2 2015 Earnings ReleaseQ2 20150.771
Dr Pepper Snapple Group IncDPS USBef-mktQ2 2015 Earnings ReleaseQ2 20151.1
General Motors CoGM USBef-mktQ2 2015 Earnings ReleaseQ2 20151.081
Danaher CorpDHR US6:00Q2 2015 Earnings ReleaseQ2 20151.04
Raytheon CoRTN US7:00Q2 2015 Earnings ReleaseQ2 20151.634
NASDAQ OMX Group Inc/TheNDAQ US7:00Q2 2015 Earnings ReleaseQ2 20150.795
Under Armour IncUA US7:15Q2 2015 Earnings ReleaseQ2 20150.048
Bristol-Myers Squibb CoBMY US7:30Q2 2015 Earnings ReleaseQ2 20150.363
Caterpillar IncCAT US7:30Q2 2015 Earnings ReleaseQ2 20151.262
CMS Energy CorpCMS US7:30Q2 2015 Earnings ReleaseQ2 20150.292
3M CoMMM US7:30Q2 2015 Earnings ReleaseQ2 20151.995
Waste Management IncWM US7:30Q2 2015 Earnings ReleaseQ2 20150.629
Alliance Data Systems CorpADS US7:30Q2 2015 Earnings ReleaseQ2 20153.245
Ryder System IncR US7:55Q2 2015 Earnings ReleaseQ2 20151.615
Boston Scientific CorpBSX US8:00Q2 2015 Earnings CallQ2 2015
Danaher CorpDHR US8:00Q2 2015 Earnings CallQ2 2015
Freeport-McMoRan IncFCX US8:00Q2 2015 Earnings ReleaseQ2 20150.077
Union Pacific CorpUNP US8:00Q2 2015 Earnings ReleaseQ2 20151.347
NASDAQ OMX Group Inc/TheNDAQ US8:00Q2 2015 Earnings CallQ2 2015
CMS Energy CorpCMS US8:30Q2 2015 Earnings CallQ2 2015
Equifax IncEFX US8:30Q2 2015 Earnings CallQ2 2015
PulteGroup IncPHM US8:30Q2 2015 Earnings CallQ2 2015
Comcast CorpCMCSA US8:30Q2 2015 Earnings CallQ2 2015
Quest Diagnostics IncDGX US8:30Q2 2015 Earnings CallQ2 2015
Alliance Data Systems CorpADS US8:30Q2 2015 Earnings CallQ2 2015
Fidelity National Information Services IncFIS US8:30Q2 2015 Earnings CallQ2 2015
Under Armour IncUA US8:30Q2 2015 Earnings CallQ2 2015
Union Pacific CorpUNP US8:45Q2 2015 Earnings CallQ2 2015
American Electric Power Co IncAEP US9:00Q2 2015 Earnings CallQ2 2015
Dow Chemical Co/TheDOW US9:00Q2 2015 Earnings CallQ2 2015
Eli Lilly & CoLLY US9:00Q2 2015 Earnings CallQ2 2015
3M CoMMM US9:00Q2 2015 Earnings CallQ2 2015
Raytheon CoRTN US9:00Q2 2015 Earnings CallQ2 2015
Celgene CorpCELG US9:00Q2 2015 Earnings CallQ2 2015
Ameriprise Financial IncAMP US9:00Q2 2015 Earnings CallQ2 2015
Brown-Forman CorpBF/B US9:30Annual General MeetingY 2015
Cameron International CorpCAM US9:30Q2 2015 Earnings CallQ2 2015
Mead Johnson Nutrition CoMJN US9:30Q2 2015 Earnings CallQ2 2015
Freeport-McMoRan IncFCX US10:00Q2 2015 Earnings CallQ2 2015
Kimberly-Clark CorpKMB US10:00Q2 2015 Earnings CallQ2 2015
Newmont Mining CorpNEM US10:00Q2 2015 Earnings CallQ2 2015
Snap-on IncSNA US10:00Q2 2015 Earnings CallQ2 2015
Huntington Bancshares Inc/OHHBAN US10:00Q2 2015 Earnings CallQ2 2015
Waste Management IncWM US10:00Q2 2015 Earnings CallQ2 2015
General Motors CoGM US10:00Q2 2015 Earnings CallQ2 2015
Bristol-Myers Squibb CoBMY US10:30Q2 2015 Earnings CallQ2 2015
EQT CorpEQT US10:30Q2 2015 Earnings CallQ2 2015
Crown Castle International CorpCCI US10:30Q2 2015 Earnings CallQ2 2015
Caterpillar IncCAT US11:00Q2 2015 Earnings CallQ2 2015
McDonald's CorpMCD US11:00Q2 2015 Earnings CallQ2 2015
Ryder System IncR US11:00Q2 2015 Earnings CallQ2 2015
AmerisourceBergen CorpABC US11:00Q3 2015 Earnings CallQ3 2015
United Rentals IncURI US11:00Q2 2015 Earnings CallQ2 2015
Dr Pepper Snapple Group IncDPS US11:00Q2 2015 Earnings CallQ2 2015
Southwest Airlines CoLUV US12:30Q2 2015 Earnings CallQ2 2015
Nucor CorpNUE US14:00Q2 2015 Earnings CallQ2 2015
SL Green Realty CorpSLG US14:00Q2 2015 Earnings CallQ2 2015
Stryker CorpSYK US16:00Q2 2015 Earnings ReleaseQ2 20151.168
Principal Financial Group IncPFG US16:00Q2 2015 Earnings ReleaseQ2 20151.043
Robert Half International IncRHI US16:02Q2 2015 Earnings ReleaseQ2 20150.661
Stericycle IncSRCL US16:02Q2 2015 Earnings ReleaseQ2 20151.141
CR Bard IncBCR US16:05Q2 2015 Earnings ReleaseQ2 20152.176
Capital One Financial CorpCOF US16:05Q2 2015 Earnings ReleaseQ2 20151.98
E*TRADE Financial CorpETFC US16:05Q2 2015 Earnings ReleaseQ2 20150.269
VeriSign IncVRSN US16:05Q2 2015 Earnings ReleaseQ2 20150.746
Visa IncV US16:05Q3 2015 Earnings ReleaseQ3 20150.584
Altera CorpALTR US16:15Q2 2015 Earnings ReleaseQ2 20150.251
AT&T IncT US16:30Q2 2015 Earnings CallQ2 2015
Stryker CorpSYK US16:30Q2 2015 Earnings CallQ2 2015
Macerich Co/TheMAC US16:30Q2 2015 Earnings CallQ2 2015
VeriSign IncVRSN US16:30Q2 2015 Earnings CallQ2 2015
TripAdvisor IncTRIP US16:30Q2 2015 Earnings CallQ2 2015
CR Bard IncBCR US17:00Q2 2015 Earnings CallQ2 2015
CA IncCA US17:00Q1 2016 Earnings CallQ1 2016
Robert Half International IncRHI US17:00Q2 2015 Earnings CallQ2 2015
Skyworks Solutions IncSWKS US17:00Q3 2015 Earnings CallQ3 2015
Starbucks CorpSBUX US17:00Q3 2015 Earnings CallQ3 2015
Capital One Financial CorpCOF US17:00Q2 2015 Earnings CallQ2 2015
Stericycle IncSRCL US17:00Q2 2015 Earnings CallQ2 2015
E*TRADE Financial CorpETFC US17:00Q2 2015 Earnings CallQ2 2015
Amazon.com IncAMZN US17:00Q2 2015 Earnings CallQ2 2015
Republic Services IncRSG US17:00Q2 2015 Earnings CallQ2 2015
Juniper Networks IncJNPR US17:00Q2 2015 Earnings CallQ2 2015
Visa IncV US17:00Q3 2015 Earnings CallQ3 2015
Chubb Corp/TheCB USAft-mktQ2 2015 Earnings ReleaseQ2 20151.858
CA IncCA USAft-mktQ1 2016 Earnings ReleaseQ1 20160.617
AT&T IncT USAft-mktQ2 2015 Earnings ReleaseQ2 20150.636
Skyworks Solutions IncSWKS USAft-mktQ3 2015 Earnings ReleaseQ3 20151.286
Starbucks CorpSBUX USAft-mktQ3 2015 Earnings ReleaseQ3 20150.409
Amazon.com IncAMZN USAft-mktQ2 2015 Earnings ReleaseQ2 2015-0.142
Republic Services IncRSG USAft-mktQ2 2015 Earnings ReleaseQ2 20150.51
Juniper Networks IncJNPR USAft-mktQ2 2015 Earnings ReleaseQ2 20150.404
TripAdvisor IncTRIP USAft-mktQ2 2015 Earnings ReleaseQ2 20150.545
Hanesbrands IncHBI USQ2 2015 Earnings ReleaseQ2 20150.5

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