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.
Mar E-mini S&Ps (ESH17-0.09%) are down -0.09% and European stocks are down -0.04% in quiet trade. A -1.18% decline in Mar COMEX copper (HGH17-0.92%) to a 1-month low is undercutting mining stocks, while a -0.40% fall in Feb WTI crude oil (CLG17-0.53%) is putting pressure on energy producing stocks. Asian stocks settled mixed: Japan -0.09%, Hong Kong -0.80%, China +0.07%, Taiwan -0.93%, Australia +0.54%, Singapore -0.68%, South Korea -0.05%, India -1.00%.
The dollar index (DXY00-0.10%) is down -0.07%. EUR/USD (^EURUSD) is up +0.26% after the ECB in its monthly bulletin said that it sees the recovery in the Eurozone continuing and that headline inflation will pick up in 2017. USD/JPY (^USDJPY) is down -0.20%
Mar 10-year T-note prices (ZNH17-0.05%) are down -2 ticks.
The ECB in its monthly economic bulletin said that it sees a moderate, firming Eurozone recovery proceeding and that headline inflation to pick up strongly at the turn of the year.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) weekly initial unemployment claims (expected +3,000 to 257,000, previous -4,000 to 254,000) and continuing claims (expected -8,000 to 2.010 million, previous +11,000 to 2.018 million), (2) revised Q3 GDP expected 3.3% (q/q annualized) vs previous +3.2% (3) Nov durable goods orders (expected -4.9% and +0.2% ex transportation, Oct +4.6% and +0.8% ex transportation), (4) Nov Chicago Fed national activity index (expected -0.02 to -0.10, Oct +0.15 to -0.08), (5) Oct FHFA house price index (expected +0.5% m/m, Sep +0.6% m/m), (6) Nov personal spending (expected +0.3%, Oct +0.3%) and Nov personal income (expected +0.3%, Oct +0.6%), (7) Nov PCE deflator (expected +0.2% m/m and +1.5% y/y, Oct +0.2% m/m and +1.4% y/y) and Nov core PCE deflator (expected +0.1% m/m and +1.7% y/y, Oct +0.1% m/m and +1.7% y/y), (8) Nov leading indicators (expected +0.1%, Oct +0.1%), (9) Dec Kansas City Fed manufacturing activity (expected +3 to 4, Nov -5 to 1), (10) Treasury auctions $14 billion of 5-year TIPS, and (11) USDA weekly Export Sales.
Russell 1000 earnings reports today include: Cintas (consensus $1.15), Rite Aid (0.05), Conagra (0.45).
U.S. IPO's scheduled to price today: none.
Equity conferences this week: none.
OVERNIGHT U.S. STOCK MOVERS
Finish Line (FINL-8.74%) was downgraded to 'Hold' from 'Buy' at Canaccord Genuity.
Akamai Technologies (AKAM-1.21%) was rated a new 'Buy' at Guggenheim Securities with a 12-month target price of $75.
Microsoft (MSFT unch) was rated a new 'Overweight' at Piper Jaffray with a price target of $80.
Cubic (CUB-0.41%) was initiated with a 'Buy' at Drexel Hamilton LLC with a 12-month target price of $58.
Micron Technology (MU-0.34%) rallied over 9% in after-hours trading after it said it sees fiscal year Q2 adjusted EPS of 58 cents-68 cents, well above consensus of 46 cents.
Bed Bath & Beyond (BBBY-1.39%) lost over 2% in after-hours trading after it said Q3 comparable same store sales unexpectedly fell -1.4%, weaker than consensus of a +0.5% increase.
Power Integrations (POWI-1.10%) was rated a new 'Buy' at Drexel Hamilton LLC with a 12-month target price of $79.
Herman Miller (MLHR-0.98%) fell over 6% in after-hours trading after it reported Q2 net sales of $577.5 million, less than consensus of $593 million. and said it sees Q3 EPS of 31 cents-35 cents, weaker than consensus of 46 cents.
Red Hat (RHT +0.50%) plunged 12% in after-hours trading after it forecast Q4 revenue of $614 million-$622 million, below consensus of $638.2 million, and then lowered guidance on fiscal 2017 revenue to $2.40 to $2.41 billion, less than consensus of $2.42 billion.
Alexion Pharmaceuticals (ALXN +1.94%) slipped 1% in after-hours trading after its Soliris drug failed to prevent complications in a trial of kidney transplant patients.
CalAmp Corp. (CAMP +1.22%) dropped nearly 6% in after-hours trading after it reported Q3 adjusted EPS of 21 cents, below consensus of 26 cents.
XOMA Corp. (XOMA-3.00%) jumped 13% in after-hours trading after it generated up to $22 million through the sale of royalty streams from two license agreements to HealthCare Royalty Partners.
Mar E-mini S&Ps (ESH17-0.09%) this morning are down -2.00 points (-0.09%). Wednesday's closes: S&P 500 -0.25%, Dow Jones -0.16%, Nasdaq -0.10%. The S&P 500 on Wednesday closed lower on carry-over weakness from a slide in European stocks that were pulled down by a sell-off in Spanish bank stocks after the EU Court of Justice ruled that borrowers in Spain who paid too much interest on home loans are entitled to a refund from their banks. There was also weakness in energy producer stocks after the price of crude oil fell -1.48%. Stocks were boosted by an unexpected +0.7% increase in U.S. Nov existing home sales to 5.61 million (stronger than expectations of -1.8% to 5.50 million and the most in 9-3/4 years) and by reduced market anxiety after the VIX volatility index fell to a 16-1/2 month low.
Mar 10-year T-notes (ZNH17-0.05%) this morning are down -2 ticks. Wednesday's closes: TYH7 +5.50, FVH7 +3.00. Mar 10-year T-notes on Wednesday closed higher on carry-over support from a rally in German bunds to a 3-week high and on increased safe-haven demand after stocks fell.
The dollar index (DXY00-0.10%) this morning is down -0.070 (-0.07%). EUR/USD (^EURUSD) is up +0.0027 (+0.26%). USD/JPY (^USDJPY) is up +0.10 (+0.09%). Wednesday's closes: Dollar index -0.270 (-0.26%), EUR/USD +0.0036 (+0.35%), USD/JPY -0.31 (-0.26%). The dollar index on Wednesday closed lower on a decline in U.S. Treasury yields, which reduced the dollar's interest rate differentials. There was also strength in EUR/USD after Eurozone Dec consumer confidence rose to a 1-1/2 year high.
Feb WTI crude oil prices (CLG17-0.53%) this morning are down -21 cents (-0.40%) and Feb gasoline (RBG17-1.46%) is -0.0219 (-1.35%). Wednesday's closes: Feb crude -0.79 (-1.48%), Feb gasoline +0.0005 (+0.03%). Feb crude oil and gasoline on Wednesday settled mixed. Crude oil prices fell after weekly EIA crude inventories unexpectedly rose +2.26 million bbl versus expectations for a -2.5 million bbl decline. Crude oil prices were boosted by a weaker dollar and by the unexpected -1.31 million bbl decline in EIA gasoline stockpiles (vs expectations for a +1.375 million bbl increase).
GLOBAL EVENT CALENDAR12/22/2016
Thursday, Dec 22
Weekly initial unemployment claims expected +3,000 to 257,000, previous -4,000 to 254,000. Weekly continuing claims expected -8,000 to 2.010 million, previous +11,000 to 2.018 million.
Revised Q3 GDP expected 3.3% (q/q annualized), previous +3.2%. Q3 personal consumption expected unrevised at +2.8%. Q3 GDP price index expected unrevised at +1.4%. Q3 core PCE expected unrevised at +1.7% q/q.
Nov durable goods orders expected -4.9% and +0.2% ex transportation, Oct +4.6% and +0.8% ex transportation. Nov capital goods new orders nondefense ex aircraft expected +0.4%, Oct +0.2%.
Nov Chicago Fed national activity index expected -0.02 to -0.10, Oct +0.15 to -0.08.
USDA weekly Export Sales.
Oct FHFA house price index expected +0.5% m/m, Sep +0.6% m/m.
Nov personal spending expected +0.3%, Oct +0.3%. Nov personal income expected +0.3%, Oct +0.6%.
Nov PCE deflator expected +0.2% m/m and +1.5% y/y, Oct +0.2% m/m and +1.4% y/y. Nov core PCE deflator expected +0.1% m/m and +1.7% y/y, Oct +0.1% m/m and +1.7% y/y.
Nov leading indicators expected +0.1%, Oct +0.1%.
Dec Kansas City Fed manufacturing activity expected +3 to 4, Nov -5 to 1.
Treasury announces amount of 2-year T-notes (previous $26 billion), 2-year floating-rate notes (previous $13 billion), 5-year T-notes (previous $34 billion) and 7-year T-notes (previous $28 billion) to be auctioned Dec 27-29.
Treasury auctions $14 billion of 5-year TIPS.
Friday, Dec 23
Nov new home sales expected +2.1% to 575,000, Oct -1.9% to 563,000.
Final-Dec University of Michigan U.S. consumer sentiment index expected unch at 98.0, prelim-Dec +4.2 to 98.0.