Thursday, June 15, 2017

Morning Call 6/15

Barchart Morning Call

Sep E-mini S&Ps (ESU17 -0.65%) this morning are down -0.62% and European stocks are down -1.13% at a 1-1/2 month low. U.S. stock indexes retreated after people familiar with the story said that the special counsel investigating Russia's interference in the 2016 election plans to interview two top U.S. intelligence officials about whether President Trump sought their help to get the FBI to end the probe of former NSA Adviser Flynn. European stocks dropped on weakness in mining companies, energy stocks and commodity producers as Jul WTI crude oil (CLN17 -0.65%) slid -0.31% to a 1-1/4 month low, Aug COMEX gold (GCQ17 -1.43%) fell -1.21% to a 2-1/2 week low and Jul COMEX copper (HGN17 -0.35%) dropped -0.21% to a 1-week low. Asian stocks settled mostly lower: Japan -0.26%, Hong Kong -1.20%, China +0.06%, Taiwan +0.16%, Australia -1.21%, Singapore -0.66%, South Korea -0.41%, India -0.26%. Japan's Nikkei Stock Index sold-off to a 2-week low after Wednesday's plunge in USD/JPY to a 1-3/4 month low undercut Japanese exporter stocks.
The dollar index (DXY00 +0.36%) is up +0.35%. EUR/USD (^EURUSD) is down -0.46% at a 2-week low. USD/JPY (^USDJPY) is up +0.16%.
Sep 10-year T-note prices (ZNU17 -0.12%) are down -2 ticks.
The BOE as expected kept its benchmark rate unchanged at 0.25% with a 5-3 vote, the most dissenters since 2011, and maintained its asset purchase target at 435 billion pounds. BOE policy makers said that with the pound's recent decline, inflation could overshoot the central bank's 2% target by more than previously thought.
Key U.S. news today includes: (1) weekly initial unemployment claims (expected -4,000 to 241,000, previous -10,000 to 245,000) and continuing claims (expected +3,000 to 1.920 million, previous -2,000 to 1.917 million), (2) Jun Empire manufacturing index (expected +6.0 to 5.0, May -6.2 to -1.0), (3) Jun Philadelphia Fed business outlook index (expected -13.8 to 25.0, May +16.8 to 38.8), (4) May import price index (expected -0.1% m/m, Apr +0.5% and +0.4% ex petroleum), (5) May industrial production (expected +0.2%, Apr +1.0%), (6) Jun NAHB housing market index (expected unch at 70, May +2 to 70), (7) USDA weekly Export Sales.
Notable Russell 2000 earnings reports today include: Kroger (consensus $0.58).
U.S. IPO's scheduled to price today: none.
Equity conferences: William Blair & Company Growth Stock Conference on Tue-Thu, Deutsche Bank dbAccess Global Consumer Conference on Tue-Thu, Golddman Sachs European Payment Conference on Tue-Thu, Goldman Sachs Global Health Care Conference on Tue-Thu, Drexel Hamilton Aerospace & Defense Conference on Thu, Stifel, Nicolaus & Co Industrials Conference on Thu, NASDAQ Investor Program on Thu.

Alphabet (GOOGL -0.26%) was downgraded to 'Hold' from 'Buy' at Canaccord Genuity.
TransMontaigne Partners LP (TLP -2.25%) was upgraded to 'Buy' from 'Neutral at D.A. Davidson with a price target of $51.
Mattel (MAT -2.21%) was downgraded to 'Neutral' from 'Buy' at D.A. Davidson.
Delphi Automotive (DLPH -0.80%) was initiated with a recommendation of 'Outperform' by Raymond James with a 12-month target price of $95.
U.S. Silica (SLCA -7.04%) was initiated with a 'Buy' rating at Janney Montgomery Scott LLC with a 12-month target price of $51.
Lantheus Holdings (LNTH +1.88%) slid 5% in after-hours trading after it announced a public secondary offering by selling stockholders of 3.0 million shares of its common stock.
Jabil (JBL -0.71%) climbed nearly 4% in after-hours trading after it reported Q3 core EPS of 31 cents, better than consensus of 29 cents, and said it sees 2018 core EPS of $2.60, higher than consensus of $2.43.
Lakeland Industries (LAKE +0.77%) jumped over 10% in after-hours trading after it reported Q1 EPS of 23 cents, well above consensus of 16 cents.
Smart Sand (SND -5.81%) was initiated with a 'Buy' rating at Janney Montgomery Scott LLC with a 12-month target price of $13.
Five Oaks Investment Corp. (OAKS -2.03%) dropped 5% in after-hours trading after it announced that it had commenced an underwritten public offering of 4.0 million shares of its common stock.
Pacific Biosciences of California (PACB -3.19%) tumbled 8% in after-hours trading after it announced that it intends to offer shares of its common stock in an underwritten public offering, although no size was given.
Sep E-mini S&Ps (ESU17 -0.65%) this morning are down -15.00 points (-0.62%). Wednesday's closes: S&P 500 -0.10%, Dow Jones +0.22%, Nasdaq -0.43%. The S&P 500 on Wednesday closed lower on unexpected weakness in U.S. May retail sales which fell -0.3% and -0.3% ex autos (weaker than expectations of unch and +0.1% ex autos) and on weakness in energy stocks after crude oil prices tumbled -3.72% to a 1-1/4 month low. There was also renewed selling in technology stocks.
Sep 10-year T-notes (ZNU17 -0.12%) this morning are down -2 ticks. Wednesday's closes: TYU7 +17.50, FVU7 +8.00. Sep 10-year T-notes on Wednesday rallied to a contract high and the 10-year T-note yield fell to a 7-month low. T-note prices were boosted by weaker-than-expected U.S. economic data on May CPI and May retail sales and weaker inflation expectations after the 10-year T-note breakeven inflation rate fell to a 7-month low. The T-note market took in stride the Fed's balance sheet roll-off plan, which will start off at $10 billion per month.
The dollar index (DXY00 +0.36%) this morning is up +0.241 (+0.35%). EUR/USD (^EURUSD) is down -0.0052 (-0.46%) at a 2-week low and USD/JPY (^USDJPY) is up +0.18 (+0.16%). Wednesday's closes: Dollar index -0.061 (-0.06%), EUR/USD +0.0007 (+0.06%), USD/JPY -0.49 (-0.45%). The dollar index on Wednesday dropped to a 7-month low and closed lower on the softer-than-expected U.S. May retail sales and CPI reports and strength in EUR/USD which climbed to a 7-month high on signs of strength in the European economy after Eurozone Q1 employment rose +1.5% y/y, the largest year-on-year increase in 9 years.
Jul WTI crude oil prices (CLN17 -0.65%) this morning are down -14 cents (-0.31%) at a 1-1/4 month low and July gasoline (RBN17 -1.12%) is -0.0108 (-0.75%). Wednesday's closes: Jul crude -1.73 (-3.72%), Jul gasoline -0.0668 (-4.45%). Jul crude oil and gasoline on Wednesday sold off with Jul crude at a 1-1/4 month low and Jul gasoline at a 6-1/2 month low. Crude oil prices were undercut by the -1.66 million bbl decline in EIA crude inventories (vs expectations of -2.4 million bbl) and by the unexpected +2.1 million bbl increase in EIA gasoline stockpiles (vs expectations for a -1.15 million bbl decline).

Thursday, June 15
US0830 ETWeekly initial unemployment claims expected -4,000 to 241,000, previous -10,000 to 245,000. Weekly continuing claims expected +6,000 to 1.923 million, previous -2,000 to 1.917 million.
0830 ETJun Empire manufacturing survey general business conditions expected +6.0 to 5.0, May -6.2 to -1.0.
0830 ETJun Philadelphia Fed business outlook survey expected -13.8 to 25.0, May +16.8 to 38.8.
0830 ETMay import price index expected -0.1% m/m, Apr +0.5% and +0.4% ex petroleum.
0830 ETUSDA weekly Export Sales.
0915 ETMay industrial production expected +0.2%, Apr +1.0%. May manufacturing production expected +0.1%, Apr +1.0%. May capacity utilization expected +0.1 to 76.8%, Apr +0.5 to 76.7%.
1000 ETJun NAHB housing market index expected unch at 70, May +2 to 70.
1100 ETTreasury announces amount of 30-year TIPS to be auctioned Jun 22 (previous $7 billion).
Friday, June 16
US0830 ETMay housing starts expected +3.9% to 1.218 million, Apr -2.6% to 1.172 million. May building permits expected +1.7% to 1.249 million, Apr -2.5% to 1.228 million.
1000 ETPrelim-Jun University of Michigan U.S. consumer sentiment expected -0.1 to 97.0, May +0.1 to 97.1.
1245 ETDallas Fed President Robert Kaplan (voter) speaks to the Park Cities Rotary Club.

CompanyTickerTimeEvent DescriptionPeriodEstimate
Weatherford International PLCWFT US04:00Annual General Meeting
Kroger Co/TheKR USBef-mktQ1 2018 Earnings ReleaseQ1 180.575
Hormel Foods CorpHRL US08:25Investor Day
Michaels Cos Inc/TheMIK US08:30Investor Conference
PVH CorpPVH US08:45Annual General Meeting
Equity ResidentialEQR US09:00Annual General Meeting
Kroger Co/TheKR US10:00Q1 2018 Earnings CallQ1 18
WP Carey IncWPC USAnnual General Meeting
Juno Therapeutics IncJUNO USAnnual General Meeting
Hospitality Properties TrustHPT USAnnual General Meeting
Yelp IncYELP USAnnual General Meeting
Marvell Technology Group LtdMRVL USAnnual General Meeting
OPKO Health IncOPK USAnnual General Meeting
Gaming and Leisure Properties IncGLPI USAnnual General Meeting
Dollar Tree IncDLTR USAnnual General Meeting
Time Warner IncTWX US12:30Annual General Meeting
Principal Financial Group IncPFG US12:30Roadshow

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