Tuesday, May 16, 2017


Barchart Morning Call

Jun E-mini S&Ps (ESM17 +0.07%) this morning are little changed, up +0.01%, as stock prices consolidate following Monday's rally to a new record high. European stocks are down -0.12% as exporter companies weakened after EUR/USD climbed to a 6-1/4 month high. Losses were contained on signs of European economic optimism after the German May ZEW survey expectations of economic growth rose to a 1-3/4 year high. Asian stocks settled mostly higher: Japan +0.25%, Hong Kong -0.14%, China +0.74%, Taiwan -0.05%, Australia +0.21%, Singapore -1.12%, South Korea +0.27%, India +0.86%. China's Shanghai Composite erased early declines and climbed to a 1-week high on signs that policy makers are trying to stabilize the market with state-sponsored buying of equities. Japan's Nikkei Stock Index rallied to a 17-1/2 month high as optimism over corporate earnings boosts stock prices. Japanese telecommunication stocks rose, led by gains in Nippon Telegraph & Telephone, after it announced plans to raise its dividend this year.
The dollar index (DXY00 -0.47%) is down -0.42% at a 6-month low. EUR/USD (^EURUSD) is up +0.75% at a 6-1/4 month high. USD/JPY (^USDJPY) is down -0.11%.
Jun 10-year T-note prices (ZNM17 -0.05%) are down -1 tick.
ECB Governing Council member Smets said risks to Eurozone economic growth "are certainly close to balance," although "in my opinion, it is still too early to declare that inflation is durably converging to its target."
Eurozone Apr new car registrations fell -6.6% y/y to 1.191 million, the largest decline in 4 years. Year-to-date registrations are up +4.7% y/y to 3,819,086.
The German May ZEW survey expectations of economic growth rose +1.1 to 20.6, weaker than expectations of +2.5 to 22.0, but still the highest in 1-3/4 years.
Key U.S. news today includes: (1) Apr housing starts (expected +3.7% to 1.260 million, Mar -6.8% to 1.215 million), (2) Apr industrial production (expected +0.4%, Mar +0.5%).
Notable Russell 2000 earnings reports today include: Home Depot (consensus $1.61), TJX (0.79), Staples (0.17), Dick's Sporting Goods (0.54), Alere (0.54), Urban Outfitters (0.15).
U.S. IPO's scheduled to price today: G1 Therapeutics (GTHX), Modern Media Acquisition (MMDMU).
Equity conferences: JP Morgan Denver Energy Bus Tour on Mon-Tue, Bank of America Merrill Lynch Global Mining Metals & Steel Conference on Tue, Deutsche Bank Clean Tech Utility & Power Conference on Tue, Needham Emerging Technology Conference on Tue-Wed, Goldman Sachs Basic Materials Conference on Tue-Wed, Bank of America Merrill Lynch Health Care Conference on Tue-Thu, Barclays Americas Select Franchise Conference on Tue-Fri, Stephens Energy Executive Summit on Wed, BMO Capital Markets Farm to Market Conference on Wed-Thu, J.P. Morgan Homebuilding & Building Products Conference on Wed-Thu, MoffettNathanson Media & Communications Summit on Wed-Thu, RBC Capital Markets Canadian Automotive, Transportation & Industrials Conference on Thu, Barclays Water Symposium - Panel on Thu.
Yum! Brands (YUM +0.46%) was upgraded to 'Buy' from 'Hold' at Argus with a price target of $80.
Dr Pepper Snapple Group (DPS +0.82%) was upgraded to 'Overweight' from 'Equalweight' at Morgan Stanley with a price target of $104.
Pfizer (PFE +0.33%) is down over 1% in pre-market trading after it was downgraded to 'Sell' from 'Neutral' at Citigroup.
Sysco (SYY +0.17%) was initiated with a 'Buy' at Loop Capital Markets with a 12-month price target of $61.
LGI Homes ({=LGIH was upgraded to 'Market Perform' from 'Underperform' at Wells Fargo Securities with a price target of $33.
Sage Therapeutics (SAGE -0.58%) was initiated with a 'Buy' at Needham & Co. with a 12-month target price of $82.
Vipshop Holdings Ltd (VIPS -0.87%) rose over 2% in after-hours trading after it reported Q1 revenue of $2.32 billion, above consensus of $2.27 billion.
Kornit Digital Ltd (KRNT +0.68%) slid 3% in after-hours trading after it announced the launch of an underwritten secondary public offering of 4.25 million shares of its stock by the company's largest shareholder, Fortissimo Capital Fund II LP.
Editas Medicine (EDIT +3.73%) lost nearly 7% in after-hours trading after it reported a Q1 loss of -85 cents a share, wider than consensus of -70 cents.
Akebia Therapeutics (AKBA +1.65%) jumped 12% in after-hour trading after it entered into an exclusive license pact with Fresenius Medical to exclusively distribute vadadustat upon FDA approval.
Etsy Inc (ETSY +0.53%) may move higher today after TPG Group reported a 4.3% stake in Etsy and Dragoneer reported a 3.7% stake in the company.
Pernix Therapeutics Holdings (PTX -2.05%) plunged 30% in after-hours trading after it reported a Q1 net loss of -$29.5 million and said it is still analyzing strategic and refinancing alternatives.
June E-mini S&Ps (ESM17 +0.07%) this morning are up +0.25 of a point (+0.01%). Monday's closes: S&P 500 +0.48%, Dow Jones +0.41%, Nasdaq +0.31%. The S&P 500 on Monday rallied to a new record high and closed higher on the unexpected +2 point increase in the U.S. May NAHB housing market index, stronger than expectations of unchanged at 68, and on strength in energy producing companies after crude oil rose 2.11% to a 2-week high. Stocks were undercut by the -6.2 point decline in the U.S. May Empire manufacturing index to -1.0, weaker than expectations of +2.3 to 7.5 and the steepest pace of contraction in 7 months.
June 10-year T-notes (ZNM17 -0.05%) this morning are down -1 tick. Monday's closes: TYM7 -0.50, FVM7 -0.50. Jun 10-year T-notes on Monday fell back from a 1-1/2 week high and closed slightly lower on the unexpected increase in the U.S. May NAHB housing market index (+2 to 70), and (2) the rally in the S&P 500 to a new record high, which reduces the safe-haven demand for T-notes.
The dollar index (DXY00 -0.47%) this morning is down -0.419 (-0.42%) to a 6-month low. EUR/USD (^EURUSD) is up +0.0082 (+0.75%) at a 6-1/4 month high and USD/JPY (^USDJPY) is down -0.12 (-0.11%). Monday's closes: Dollar index -0.341 (-0.34%), EUR/USD +0.0044 (+0.40%), USD/JPY +0.41 (+0.36%). The dollar index on Monday closed lower on the rally in crude oil that boosted the currencies of the crude oil exporting countries of Russia and Canada to 2-week highs against the dollar. The dollar index was also undercut by the unexpected contraction in the U.S. May Empire manufacturing survey of general business conditions (-6.2 to -1.0), which bolsters the case for the Fed to refrain from further raising interest rates.
June WTI crude oil prices (CLM17 +0.63%) this morning are up +18 cnts (+0.37%) and June gasoline (RBM17 +0.81%) is +0.0080 (+0.50%). Monday's closes: Jun crude +1.01 (+2.11%), Jun gasoline +0.0139 (+1.22%). Jun crude oil and gasoline on Monday rallied to 2-week highs and settled higher. Crude oil prices rallied on a weaker dollar and comments from Saudi Arabia's and Russia's energy ministers that they favor extending their crude oil production cuts until Mar 2018, three months longer than expectations for an extension to the end of 2017.
Tuesday, May 16
US0830 ETApr housing starts expected +3.7% to 1.260 million, Mar -6.8% to 1.215 million. Apr building permits expected +0.2% to 1.270 million, Mar +4.2% to 1.267 million.
0915 ETApr industrial production expected +0.4%, Mar +0.5%. Apr manufacturing production expected +0.4%, Mar -0.4%. Apr capacity utilization expected +0.2 to 76.3%, Mar +0.4 to 76.1%.
Wednesday, May 17
US0700 ETWeekly MBA mortgage applications, previous +2.4% with purchase sub-index +1.7% and refi sub-index +3.3%.
1030 ETEIA Weekly Petroleum Status Report.
CompanyTickerTimeEvent DescriptionPeriodEstimate
Staples IncSPLS USBef-mktQ1 2018 Earnings ReleaseQ1 180.173
Dick's Sporting Goods IncDKS USBef-mktQ1 2018 Earnings ReleaseQ1 180.542
Murphy USA IncMUSA US08:00Investor Day
Staples IncSPLS US08:00Q1 2018 Earnings CallQ1 18
Diamond Offshore Drilling IncDO US08:30Annual General Meeting
Hanover Insurance Group Inc/TheTHG US09:00Annual General Meeting
Stanley Black & Decker IncSWK US09:00Investor Day
FirstEnergy CorpFE US09:00Annual General Meeting
Home Depot Inc/TheHD US09:00Q1 2018 Earnings CallQ1 18
Home Depot Inc/TheHD US09:00Q1 2018 Earnings ReleaseQ1 181.614
TJX Cos Inc/TheTJX US09:30Q1 2018 Earnings ReleaseQ1 180.79
Avis Budget Group IncCAR US09:30Annual General Meeting
BankUnited IncBKU US10:00Annual General Meeting
Dick's Sporting Goods IncDKS US10:00Q1 2018 Earnings CallQ1 18
JPMorgan Chase & CoJPM US10:00Annual General Meeting
Principal Financial Group IncPFG US10:00Annual General Meeting
Arthur J Gallagher & CoAJG US10:00Annual General Meeting
Halliburton CoHAL US10:00Annual General Meeting
Quest Diagnostics IncDGX US10:30Annual General Meeting
Square IncSQ US11:00Investor Day
Vectren CorpVVC US11:00Annual General Meeting
TJX Cos Inc/TheTJX US11:00Q1 2018 Earnings CallQ1 18
Stanley Black & Decker IncSWK USInvestor Day
Realty Income CorpO USAnnual General Meeting
WR Berkley CorpWRB USAnnual General Meeting
Alere IncALR USQ1 2017 Earnings ReleaseQ1 170.54
Newfield Exploration CoNFX USAnnual General Meeting
ConocoPhillipsCOP USAnnual General Meeting
QEP Resources IncQEP USAnnual General Meeting
Packaging Corp of AmericaPKG USAnnual General Meeting
Arconic IncARNC USAnnual General Meeting - Proxy Fight for Board Representation
Masco CorpMAS US13:00Investor Day
Nordstrom IncJWN US14:00Annual General Meeting
Essex Property Trust IncESS US16:00Annual General Meeting
Urban Outfitters IncURBN USAft-mktQ1 2018 Earnings ReleaseQ1 180.151
Charles Schwab Corp/TheSCHW US17:00Annual General Meeting
Urban Outfitters IncURBN US17:00Q1 2018 Earnings CallQ1 18

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