Educational and Instructional Stock Market Investing Newsletter for the hands-on investor. I use my 40+ years of experience in Accounting, Law and Financial Services To show you how to find stocks that will not only beat the market but consistently beat Warren Buffett, his Berkshire Hathaway fund and most of the Morningstar 5 Star mutual funds.
Everything you need to know about the markets in one free daily newsletter.
You will also receive a free subscription to the Barchart family of newsletters.
OVERNIGHT MARKETS AND NEWS
March E-mini S&Ps (ESH16-2.17%) are down sharply by -2.24% at a 3-month low and European stocks are down -3.10% at a 3-1/4 month low after China's stock exchanges closed less than half an hour after opening when they fell 7% and triggered a halt to trading for the second time this week. Chinese stocks tumbled as the PBOC cut its reference rate for the yuan for an eighth straight day, which sent the yuan plunging to a 4-3/4 year low against the dollar as China is attempting to spur economic growth through a weaker yuan. Freeport-McMoRan and Alcoa are both down more than 4% in pre-market trading as the price of copper (HGH16-2.83%) dropped -3.04% to a 1-1/2 month low, and energy producers are lower as the price of crude oil (CLG16-3.62%) plummeted -3.15% to a 12-year low. Another negative for stocks was the action by the World Bank to lower its 2016 global growth estimate to 2.9% from a 3.3% estimate in Jun. Asian stocks settled sharply lower: Japan -2.33%, Hong Kong -3.09%, China -7.04%, Taiwan-1.73%, Australia -2.20%, Singapore -2.65%, South Korea -1.14%, India -2.18%.
The dollar index (DXY00-0.39%) is down -0.47%. EUR/USD (^EURUSD) is up +0.69%. USD/JPY (^USDJPY) is down -0.86% to a 4-1/2 month low.
Mar T-note prices (ZNH16 +0.21%) are up +9.5 ticks at a 2-month high on a flight-to-safety with the plunge in global equity markets.
The PBOC reported that China's foreign exchange reserves shrank by a record $108 billion in Dec, which cut its total foreign-exchange reserves to a 3-year low of $3.33 trillion as the PBOC has burnt through its reserves in an attempt to prop up the yuan.
The World Bank cut its 2016 global growth estimate to 2.9% from a 3.3% estimate in Jun, citing a weaker outlook for the U.S., China, Japan and Russia. The World Bank also cut its 2016 China growth outlook to 6.7% from a 7.0% estimate in Jun.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) Dec challenger job cuts (Nov -13.9% y/y), (2) weekly initial unemployment claims (expected -12,000 to 275,000, previous +20,000 to 287,000) and continuing claims (expected +2,000 to 2.200 million, previous +3,000 to 2.198 million), (3) Richmond Fed President Jeffrey Lacker's speech on the 2016 economic outlook at an event hosted by the Great Raleigh Chamber of Commerce, (4) Chicago Fed President Charles Evans' speech on the economic outlook and monetary policy at the Wisconsin Economic Forecast Luncheon.
There are 3 of the Russell 3000 companies that report earnings today: Walgreens Boots Alliance (consensus $0.96), Constellation Brands (1.30), Bed Bath & Beyond (1.09).
U.S. IPO's scheduled to price today: none.
Equity conferences this week: Citi Global Internet, Media & Telecommunications Conference on Wed-Thu.
OVERNIGHT U.S. STOCK MOVERS
Freeport-McMoRan (FCX-8.05%) and Alcoa (AA-7.12%) are both down more than 4% in pre-market trading as the price of copper dropped -3.04% to a 1-1/2 month low.
Capital One Financial (COF-1.31%) was downgraded to 'Hold' from 'Buy' at Deutsche Bank.
Walgreens Boots Alliance (WBA-1.53%) reported Q1 EPS of $1.03, better than consensus of 96 cents.
Agilent Technologies (A +0.44%) was upgraded to 'Outperform' from 'Market Perform' at Cowen with a price target of $46.
Macy's (M-2.19%) climbed over 2% in after-hours trading after it initially sold-off 5% when it lowered guidance on Q4 EPS to $2.18-$2.23 from a previous estimate of $2.54-$2.64, and then said it will reduce costs by $400 million by closing 36 stores and cutting up to 4,800 jobs in early 2016.
NetApp (NTAP-2.80%) reported that CFO Nick Noviello is leaving the firm to pursue another opportunity and named VP of corporate finance, Jeffrey Bergmann, as interim CFO.
Paycom Software (PAYC +0.34%) was rated a new 'Outperform' at Robert Baird with a 12-month price target of $48.
Resource Connection (RECN-3.45%) fell over 3% in after-hours trading after it reported Q2 EPS of 23 cents, below consensus of 24 cents.
Zumiez (ZUMZ-1.50%) jumped over 10% in after-hours trading after it raised guidance on Q4 EPS to 45 cents-47 cents from a previous estimate of 40 cents-46 cents, above consensus of 43 cents.
Mistras Group (MG-1.74%) surged over 12% in after-hours trading after it reported Q2 EPS of 39 cents, well above consensus of 26 cents.
Globus Medical (GMED +1.92%) slipped over 2% in after-hours trading after it forecast 2016 sales of $583 million, below consensus of $590.4 million.
Clear Channel Outdoor Holdings (CCO +5.56%) climbed over 2% in after-hours trading after Lamar Advertising said it was near an agreement to acquire billboard assets valued at about $450 million from CCO.
Mar E-mini S&Ps (ESH16-2.17%) this morning are down sharply by -44.50 points (-2.24%) to a 3-month low. Wednesday's closes: S&P 500 -1.31%, Dow Jones -1.47%, Nasdaq -0.90%. The S&P 500 on Wednesday dropped to a 3-month low and closed lower on the PBOC's cut in its daily reference rate for the yuan for the seventh day in a row, which stoked Chinese economic concerns that undercut global stocks and pushed the yuan down to a 4-3/4 year low against the dollar. Stocks were also undercut by the unexpected -0.6 point decline in the Dec ISM U.S. non-manufacturing index to 55.3, weaker than expectations of +0.1 to 56.0 and the slowest pace of expansion in 20 months. On the positive side, the Dec ADP employment change rose +257,000, stronger than expectations of +198,000 and the biggest increase in a year.
Mar 10-year T-notes (ZNH16 +0.21%) this morning are up +9.5 ticks to a 2-month high. Wednesday's closes: TYH6 +19.50, FVH6 +12.25. Mar T-notes on Wednesday climbed to a 3-week high and settled higher on increased safe-haven demand with the plunge in global equity markets and on the slide in energy prices, which undercut inflation expectations as the 10-year T-note breakeven inflation rate fell to a 1-week low.
The dollar index (DXY00-0.39%) this morning is down -0.471 (-0.47%). EUR/USD (^EURUSD) up +0.0074 (+0.69%). USD/JPY (^USDJPY) is down-1.02 (-0.86%) to a 4-1/2 month low. Wednesday's closes: Dollar Index -0.223 (-0.22%), EUR/USD +0.0033 (+0.31%), USD/JPY -0.59 (-0.50%). The dollar index on Wednesday closed lower on (1) the fall in USD/JPY to a 2-1/2 month low after the plunge in global equity markets boosted the safe-haven demand for the yen, and (2) speculation that this week's sell-off in global equity markets may prompt the Fed to delay the next interest rate increase.
Feb crude oil (CLG16-3.62%) this morning is down -$1.07 a barrel (-3.15%) to a 12-year low and Feb gasoline (RBG16-1.39%) is down -0.0118(-1.02%) to a fresh 6-3/4 year low. Wednesday's closes: CLG6 -1.91 (-5.31%), RBG6 -0.0932 (-7.42%). Feb crude and gasoline on Tuesday closed sharply lower as Feb crude and Feb gasoline posted 6-3/4 year nearest-futures lows. Crude oil prices were hurt by the +917,000 bbl increase in crude supplies at Cushing to a record high 63.91 million bbl and by the +10.58 million bbl surge in weekly EIA gasoline inventories to a 9-1/2 month high. On the positive side, EIA crude supplies unexpectedly fell -5.09 million bbl versus expectations of +1.0 million bbl.
GLOBAL EVENT CALENDAR01/07/2016
Dec challenger job cuts, Nov -13.9% y/y.
Weekly initial unemployment claims expected -12,000 to 275,000, previous +20,000 to 287,000. Weekly continuing claims expected +2,000 to 2.200 million, previous +3,000 to 2.198 million.
USDA weekly Export Sales.
Richmond Fed President Jeffrey Lacker speaks on the 2016 economic outlook at an event hosted by the Great Raleigh Chamber of Commerce.
Treasury announce amount of 3-year T-notes (previous $24 billion), 10-year T-notes (previous $21 billion) and 30-year T-bonds (previous $13 billion) to be auctioned Jan 12-14.
Chicago Fed President Charles Evans speaks on the economic outlook and monetary policy at the Wisconsin Economic Forecast Luncheon.
German Nov factory orders expected +0.1% m/m and +1.1% y/y, Oct +1.8% m/m and -1.4% y/y.
German Nov retail sales expected +0.5% m/m and +3.7% y/y, Oct -0.1% m/m and +2.1% y/y.
German Dec Markit construction PMI, Nov 52.5.
UK Dec new car registrations, Nov +3.8% y/y.
Eurozone Dec economic confidence expected -0.1 to 106.0, Nov 106.1. Dec business climate indicator expected +0.03 to 0.39, Nov 0.36.
Revised Eurozone Dec consumer confidence, preliminary +0.2 to 5.7.
Eurozone Nov retail sales expected +0.2% m/m and +2.0% y/y, Oct -0.1% m/m and +2.5% y/y.
Eurozone Nov unemployment rate expected unch at 10.7%.
Japan Nov labor cash earnings expected +0.7% y/y, Oct +0.7% y/y. Nov real cash earnings, Oct +0.4% y/y.