Thursday, March 9, 2017


Barchart Morning Call

Mar E-mini S&Ps (ESH17 -0.11%) this morning are down -0.08% at a 1-week low and European stocks are little changed, up +0.02%, as weakness in energy producers drags the overall market lower. Apr WTI crude oil (CLJ17 -2.29%) is down -1.73% at a 3-1/4 month low on signs the global oil glut will persist after Wednesday's EIA data showed U.S crude inventories climbed to another record high. Losses in European stocks were limited ahead of the conclusion of today's ECB meeting and press conference from ECB President Draghi. Expectations are for no change in monetary policy but the markets will parse ECB President Draghi's comments to see if the ECB intends to maintain its asset purchases until the end of the year. The likelihood of a Fed rate hike next week has led to fund selling of precious metals with Apr COMEX gold (GCJ17 -0.20%) down -0.45% and May COMEX silver (SIK17 -0.48%) down -0.80%, both at 5-week lows, and May COMEX copper (HGK17 -1.25%) down -1.40% to a 1-3/4 month low. Asian stocks settled mostly lower: Japan +0.34%, Hong Kong -1.18%, China -0.74%, Taiwan -0.97%, Australia -0.32%, Singapore -0.84%, South Korea -0.25%, India +0.09%. Japanese stocks bucked the slide in other global bourses and closed higher as exporter stocks rallied due to a weaker yen after USD/JPY climbed to a 3-week high.
The dollar index (DXY00 -0.04%) is down -0.04%. EUR/USD (^EURUSD) is up +0.21%. USD/JPY (^USDJPY) is up +0.26% at a 3-week high.
Jun 10-year T-note prices (ZNM17 -0.08%) are down -3 ticks.
China Feb CPI rose +0.8% y/y, weaker than expectations of +1.7% y/y and the smallest pace of increase in 2 years.
China Feb PPI rose +7.8% y/y, stronger than expectations of +7.7% y/y and the fastest pace of increase in 8-1/3 years.
Key U.S. news today includes: (1) weekly initial unemployment claims (expected +15,000 to 238,000, previous -19,000 to 223,000) and continuing claims (expected -4,000 to 2.062 million, previous +3,000 to 2.066 million), (2) Feb import price index (expected +0.1% m/m and +4.4% y/y, Jan +0.4% m/m and +3.7% y/y), (3) Treasury auctions $12 billion 30-year T-bonds, (4) USDA weekly Export Sales, (5) USDA WASDE Mar crop production.
Notable Russell 1000 earnings reports today include: Staples (consensus $0.26), International Game Technology (0.51), Signet Jewelers $4.00), Tahoe Resources (0.15), Ulta Beauty (2.14), VeriFone Systems (0.20).
U.S. IPO's scheduled to price today: Presidio (PSDO), Matlin Acquisition Corp (MPACU),
Equity conferences: Susquehanna Financial Group LLLP Semi Storage & Technology Conference on Thu, UBS Global Consumer & Retail Conference on Thu-Fri.

Tiffany & Co. (TIF +0.41%) was downgraded to 'Sell' from 'Hold' at SBG Securities with a 12-month target price of $90.
Semtech (SMTC +2.39%) rallied 5% in after-hours trading after it reported Q4 adjusted EPS of 37 cents, better than consensus of 35 cents, and then said it sees Q1 adjusted EPS of 39 cents-43 cents, above consensus of 36 cents.
Camping World Holdings (CWH +0.65%) slid 4% in after-hours trading after it reported Q4 revenue of $670 million, below consensus of $679.0 million.
Sinclair Broadcast Group (SBGI -1.65%) slipped almost 2% in after-hours trading after it announced a public offering of 12.0 million shares of Class A common stock.
Planet Fitness (PLNT +1.30%) lost 1% in after-hours trading after it announced a secondary offering of 15 million shares of Class A common stock.
Comtech Telecommunications (CMTL +0.82%) rose 3% in after-hours trading after it said it sees full-year EPS of 68 cents, above consensus of 28 cents.
Tech Data (TECD -4.19%) was upgraded to 'Buy' from 'Hold' at Needham & Co. with a 12-month target price of $107.
elf Beauty (ELF -2.39%) surged 14% in after-hours trading after it reported Q4 adjusted EPS of 19 cents, higher than consensus of 13 cents, and then said it sees full-year net sales of $285 million-$295 million, better than consensus of $281.3 million.
Tailored Brands (TLRD +1.08%) plunged over 25% in after-hours trading after it reported Q4 net sales of $793.3 million, weaker than consensus of $811.3 million, and then said its sees full-year EPS of $1.45-$1.75, well below consensus of $2.10.
Bankrate (RATE +1.39%) dropped over 7% in after-hours trading after it reported Q4 adjusted EPS of 16 cents, below consensus of 19 cents.
Amplify Snack Brands (BETR -4.18%) gained nearly 2% in after-hours trading after it reported Q4 net sales of $88,6 million, above consensus of $87.4 million, and said it sees 2017 net sales of $404 million-$420 million, above consensus of $404 million.
BioCryst Pharmaceuticals (BCRX +8.38%) fell over 4% in after-hours trading after it began a public offering of $45 million in common stock.
21Vianet Group (VNET +0.71%) dropped 6% in after-hour trading after it reported a Q4 loss per ads of 60 cents.
Mar E-mini S&Ps (ESH17 -0.11%) this morning are down -2.00 points (-0.08%). Wednesday's closes: S&P 500 -0.23%, Dow Jones -0.33%, Nasdaq +0.16%. The S&P 500 on Wednesday closed lower on weakness in energy producing stocks after crude oil plunged by -5.38% to a 2-3/4 month low. There were also interest rate concerns after the 10-year T-note yield jumped to a 2-1/4 month high. Stocks found support on signs that Chinese domestic demand may be picking up, which would boost overall global growth, after China Feb imports rose +38.1% y/y, stronger than expectations of +20.0% y/y and the largest increase in 5 years. Stocks were also boosted by the +298,000 increase in U.S. Feb ADP employment, stronger than expectations of +187,000 and the biggest increase in 2-3/4 years.
Jun 10-year T-notes (ZNM17 -0.08%) this morning are down -3 ticks: Wednesday's closes: TYM7 -10.00, FVM7 -5.50. Jun 10-year T-notes sold off to a 2-1/4 month low Wednesday and closed lower on the stronger-than-expected Feb ADP employment report of +298,000, which may prompt the Fed into a faster pace of interest rate hikes. There were also supply pressures as the Treasury auctions $56 billion of T-notes and T-bonds this week.
The dollar index (DXY00 -0.04%) this morning is down -0.04 (-0.04%). EUR/USD (^EURUSD) is up +0.002 (+0.21%). USD/JPY (^USDJPY) is up +0.30 (+0.26%) at a 3-week high. Wednesday's closes: Dollar index +0.26 (+0.26%), EUR/USD -0.0025 (-0.24%), USD/JPY +0.37 (+0.32%). The dollar index on Wednesday closed higher on the surge in U.S. Feb ADP employment by +298,000, the most in 2-3/4 years, which bolsters the case for additional Fed rate hikes. The dollar was also supported by the jump in 10-year T-note yields to a 2-1/4 month high, which boosts the dollar's interest rate differentials.
Apr WTI crude oil prices (CLJ17 -2.29%) this morning are down -87 cents (-1.73%) to a 3-1/4 month low and Apr gasoline (RBJ17 -1.97%) is -0.0284 (-1.72%). Wednesday's closes: Apr crude -2.86 (-5.38%), Apr gasoline -0.0272 (-1.62%). Apr crude oil and gasoline on Wednesday closed sharply lower with Apr crude at a 2-3/4 month low. Crude oil prices were undercut by a stronger dollar, the +8.21 million bbl increase in EIA crude inventories to a record 528.39 million bbl (well above expectations for a +2.0 million bbl gain), and the +0.6% increase in U.S. crude production in the week of Mar 3 to 9.088 million bpd, a 1-year high.
Thursday, Mar 9
US0830 ETWeekly initial unemployment claims expected +15,000 to 238,000, previous -19,000 to 223,000. Weekly continuing claims expected -4,000 to 2.062 million, previous +3,000 to 2.066 million.
0830 ETFeb import price index expected +0.1% m/m and +4.4% y/y, Jan +0.4% m/m and +3.7% y/y.
0830 ETUSDA weekly Export Sales.
1200 ETUSDA WASDE Mar crop production.
1300 ETTreasury auctions $12 billion 30-year T-bonds.
Friday, Mar 10
US0830 ETFeb non-farm payrolls expected +190,000, Jan +227,000. Feb private payrolls expected +195,000, Jan +237,000. Feb manufacturing payrolls expected +9,000, Jan +5,000. Feb unemployment rate expected -0.1 to 4.7%, Jan +0.1 to 4.8%.
0830 ETFeb avg hourly earnings expected +0.3% m/m and +2.7% y/y, Jan +0.1% m/m and +2.5% y/y. Feb avg weekly hours all employees expected unch at 34.4 hours, Jan unch at 34.4 hours.
1400 ETFeb monthly budget statement expected -$170.0 billion, Jan +$51.257 billion.

CompanyTickerTimeEvent DescriptionPeriodEstimate
International Game Technology PLCIGT USBef-mktQ4 2016 Earnings ReleaseQ4 160.507
Staples IncSPLS USBef-mktQ4 2017 Earnings ReleaseQ4 170.255
Signet Jewelers LtdSIG US07:00Q4 2017 Earnings ReleaseQ4 174.004
International Game Technology PLCIGT US08:00Q4 2016 Earnings CallQ4 16
Staples IncSPLS US08:00Q4 2017 Earnings CallQ4 17
Signet Jewelers LtdSIG US08:30Q4 2017 Earnings CallQ4 17
B/E Aerospace IncBEAV US10:00Extraordinary Shareholders Meeting - M&A Vote
National Fuel Gas CoNFG USAnnual General Meeting
Rockwell Collins IncCOL USExtraordinary Shareholders Meeting - M&A Vote
Xcel Energy IncXEL USRoadshow
Johnson Controls International plcJCI USAnnual General Meeting
Applied Materials IncAMAT USAnnual General Meeting
Xcel Energy IncXEL USRoadshow
F5 Networks IncFFIV US14:00Annual General Meeting
Tahoe Resources IncTHO CNAft-mktQ4 2016 Earnings ReleaseQ4 160.15
Ulta Beauty IncULTA USAft-mktQ4 2017 Earnings ReleaseQ4 172.135
VeriFone Systems IncPAY USAft-mktQ1 2017 Earnings ReleaseQ1 170.204
Cabot CorpCBT US16:00Annual General Meeting
VeriFone Systems IncPAY US16:30Q1 2017 Earnings CallQ1 17
Ulta Beauty IncULTA US17:00Q4 2017 Earnings CallQ4 17

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