Thursday, October 26, 2017

Morning Call 10/26

Barchart Morning Call

OVERNIGHT MARKETS AND NEWS
Dec E-mini S&Ps (ESZ17 +0.12%) this morning are up +0.06% and European stocks recovered from a 3-1/2 week low and are up +0.33% as a rally in Spain's IBEX Stock Index leads European stocks higher. Spain's IBEX Stock Index jumped +1.54% and gave European stocks a lift after people familiar with the matter said that Catalonia President Puigdemont may call regional elections this week, rather than declare independence from Spain. Catalonia President Puigdemont is set to address the Catalan parliament Thursday evening. Market activity remains subdued ahead of the outcome of this morning's ECB meeting where expectations are for the ECB to announce a reduction in monetary stimulus. Asian stocks settled mostly higher: Japan +0.15%, Hong Kong -0.36%, China +0.31%, Taiwan -0.15%, Australia +0.18%, Singapore +0.37%, South Korea -0.70%, India +0.32%. China's Shanghai Composite climbed to a 1-3/4 year high, led by a rally in railway stocks, on speculation the government will boost investment in the sector.

The dollar index (DXY00 +0.01%) is down -0.01%. EUR/USD (^EURUSD) is down -0.02%. USD/JPY (^USDJPY) is down -0.09%.
Dec 10-year T-note prices (ZNZ17 +0.14%) are up +5 ticks.
Eurozone Sep M3 money supply rose +5.1% y/y, stronger than expectations of +5.0% y/y and the fastest pace of increase in 6-months.
German Nov GfK consumer confidence unexpectedly fell -0.1 to 10.7, weaker than expectations of unch at 10.8.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) weekly initial unemployment claims (expected +13,000 to 235,000, previous -22,000 to 222,000) and continuing claims (expected +7,000 to 1.895 million, previous -16,000 to 1.88 million), (2) Sep wholesale inventories (expected +0.4%, Aug +0.9%), (3) Sep pending home sales (expected +0.4% m/m, Aug -2.6% m/m and -3.1%y/y), (4) Oct Kansas City Fed manufacturing activity index (expected unch at 17, Sep +1 to 17), (5) Treasury auctions $28 billion of 7-year T-notes, and (6) USDA weekly Export Sales.
Notable S&P 500 earnings reports today include: Amazon.com (consensus $0.03), Alphabet (8.33) Microsoft (0.72), UPS (1.45), Intel (0.80), Ford (0.33), Comcast (0.50),
U.S. IPO's scheduled to price today: ForeScout Technologies (FSCT), Merchants Bancorp (MBIN), Nexa Resources (NEXA).
Equity conferences this week: European Committee for Treatment and Research in Multiple Sclerosis on Thu, Society of Women Engineers National Conference on Fri.
OVERNIGHT U.S. STOCK MOVERS
Buffalo Wild Wings (BWLD -4.12%) surged 20% in after-hours trading after it reported Q3 adjusted EPS of $1.36, well above consensus of 79 cents, and then said it sees full-year EPS of $4.85 to $5.15, better than consensus of $4.40.
O'Reilly Automotive (ORLY -0.30%) dropped 6% in after-hours trading after it said it sees Q4 EPS of $2.65 to $2.75, weaker than consensus of $2.80, and then lowered its full-year revenue estimate to $8.9 billion to $9.0 billion from a prior view of $8.9 billion to $9.1 billion, the mid-point below consensus of $8.98 billion.
Tractor Supply (TSCO -0.65%) rose 2% in after-hours trading after it reported Q3 EPS of 72 cents, above consensus of 68 cents, and then raised guidance on full-year EPS to $3.25 to $3.29 from a prior view of $3.22 to $3.27, higher than consensus of $3.25.
PRA Health Sciences (PHAH) gained 2% in after-hours trading after it reported Q3 adjusted EPS of 88 cents, better than consensus of 84 cents, and then said it sees full-year adjusted EPS of $3.28 to $3.35, higher than consensus of $3.20.
Citrix Systems (CTXS -0.91%) lost 3% in after-hours trading after it reported Q3 net revenue of $690.9 million, below consensus of $691.6 million, and then said it sees 2018 revenue growth of 1% to 2%, below consensus of 4%.
Sarepta Therapeutics (SRPT -1.23%) climbed almost 4% in after-hours trading after it reported Q3 revenue of $46.0 million, higher than consensus of $40.7 million, and then said its sees full-year revenue of $150 million to $155 million, better than consensus of $139.7 million.
Dolby Laboratories (DLB -1.30%) slid 4% in after-hours trading after it reported Q4 revenue of $242 million, weaker than consensus of $244.8 million, and then said it sees full-year revenue of $1.14 billion to $1.17 billion, the mid-point below consensus of $1.16 billion.
Netgear (NTGR -4.87%) fell 5% in after-hours trading after it forecast Q4 revenue of $375 million-$390 million, below consensus of $393 million.
Las Vegas Sands (LVS -0.38%) rose almost 2% in after-hours trading after it reported Q3 net revenue of $3.20 billion, better than consensus of $3.13 billion.
Nutrisystem (NTRI +0.09%) tumbled 11% in after-hours trading after it said it expects Q4 EPS between 37 cents and 42 cents, the mid-point below consensus of 40 cents.
Callaway Golf (ELY -1.26%) gained almost 2% in after-hours trading after it reported Q3 net sales of $243.6 million, better than consensus of $207.8 million, and then said it sees full-year sales of $1.03 billion to $1.04 billion, higher than consensus of $998.7 million.
Coeur Mining (CDE -0.83%) fell 4% in after-hours trading after it reported Q3 revenue of $176 million, less than consensus of $180 million.
Whiting Petroleum (WLL +1.88%) rallied almost 5% in after-hours trading after it reported a Q3 adjusted loss per share of -14 cents, narrower than expectations of -19 cents.
MARKET COMMENTS
Dec S&P 500 E-mini stock futures (ESZ17 +0.12%) this morning are up +1.50 points (+0.06%). Wednesday's closes: S&P 500 -0.47%, Dow Jones -0.48%, Nasdaq -0.41%. The S&P 500 on Wednesday dropped to a 2-week low and closed lower on the rise in the 10-year T-note yield to a 7-month high of 2.473% and on the intra-Republican strife that could threaten tax reform. Stocks were supported by the sharp +18.9% increase in Sep new home sales to a 10-year high of 667,000 and the +1.3% increase in U.S. Sep capital goods new orders nondefense ex-aircraft, a proxy for capital spending, stronger than expectations of +0.3%.
Dec 10-year T-note prices (ZNZ17 +0.14%) this morning are up +5 ticks. Wednesday's closes: TYZ7 -9.00, FVZ7 -4.25. Dec 10-year T-notes on Wednesday fell to a 7-month nearest-futures low and closed lower on technical selling after the 10-year T-note yield broke out above the 2.42% support level and on the stronger than expected Sep durable goods orders and Sep new home sales reports, which bolstered the case for additional Fed rate hikes. T-note prices recovered from their worst levels after the slide in stocks boosted safe-haven demand for T-notes.
The dollar index (DXY00 +0.01%) this morning is down -0.013 (-0.01%). EUR/USD (^EURUSD) is down -0.0002 (-0.02%) and USD/JPY (^USDJPY) is down -0.10 (-0.09%). Wednesday's closes: Dollar Index -0.061 (-0.11%), EUR/USD +0.0052 (+0.44%), USD/JPY -0.16 (-0.14%). The dollar index on Wednesday closed lower on strength in USD/JPY as a slide in stocks boosted the safe-haven demand for the yen. The dollar was also undercut by strength in EUR/USD ahead of Thursday's ECB policy meeting where the ECB is expected to announce steps to begin tapering QE. Losses in the dollar were limited after the 10-year T-note yield climbed to a 7-month high of 2.473%, which boosted the dollar's interest rate differentials.
Dec crude oil (CLZ17 -0.04%) this morning is unchanged and Dec gasoline (RBZ17 -0.84%) is -0.0127 (-0.75%). Wednesday's closes: Dec WTI crude -0.29 (-0.55%), Dec gasoline +0.0127 (+0.76%). Dec crude oil and gasoline on Wednesday settled mixed. Crude oil prices were undercut by the unexpected +856,000 bbl increase in EIA crude inventories (vs expectations of -3.0 million bbl) and by the +13.1% w/w increase in U.S. crude production to 9.507 million bpd in the week ended Oct 20 as U.S. Gulf oil platforms reopened after being closed due to Hurricane Nate. Crude oil prices were supported by the unexpected -5.47 million bbl decline in EIA gasoline inventories (vs expectations of +1.75 million bbl) and the -5.246 million bbl decline in EIA distillate inventories to a 2-1/2 year low.
Metals prices this morning are mixed with Dec gold (GCZ17 -0.03%) unch, Dec silver (SIZ17 +0.27%) +0.060 (+0.35%) and Dec copper (HGZ17 -0.30%-0.011 (-0.33%). Wednesday's closes: Dec gold +0.7 (+0.05%), Dec silver -0.041 (-0.24%), Dec copper -0.0150 (-0.47%). Metals on Wednesday settled mixed. Metals prices were undercut by the rise in U.S. interest rates and the decline in stocks, which reduces optimism in the economic outlook and in industrial metals demand. Metals prices were supported by the weaker dollar.

GLOBAL EVENT CALENDAR10/26/2017
Thursday, Oct 26
US0830 ETWeekly initial unemployment claims expected +13,000 to 235,000, previous -22,000 to 222,000. Weekly continuing claims expected +2,000 to 1.890 million, previous -16,000 to 1.88 million.
0830 ETSep wholesale inventories expected +0.4%, Aug +0.9%.
0830 ETUSDA weekly Export Sales.
1000 ETSep pending home sales expected +0.3% m/m and -4.2% y/y, Aug -2.6% m/m and -3.1% y/y.
1100 ETOct Kansas City Fed manufacturing activity expected unch at 17, Sep +1 to 17.
1300 ETTreasury auctions $28 billion of 7-year T-notes.
Friday, Oct 27
US0830 ETQ3 GDP expected +2.5% (q/q annualized), Q2 +3.1%. Q3 personal consumption expected +2.1%, Q2 +3.3%. Q3 GDP price index expected +1.7%, Q2 +1.0%. Q3 core PCE expected +1.3% q/q, Q2 +0.9% q/q.
1000 ETFinal-Oct University of Michigan U.S. consumer sentiment expected -0.4 to 100.7, previous +6.0 to 101.1.
U.S. STOCK CALENDAR10/26/2017

NameTickerTimeDescriptionPeriodEstimate
DTE Energy CoDTE USBef-mktQ3 2017 Earnings ReleaseQ3 171.541
Allegion PLCALLE US05:30Q3 2017 Earnings ReleaseQ3 171.018
Hilton Worldwide Holdings IncHLT US06:00Q3 2017 Earnings ReleaseQ3 170.50
Comcast CorpCMCSA US06:00Q3 2017 Earnings ReleaseQ3 170.496
Air Products & Chemicals IncAPD US06:00Q4 2017 Earnings ReleaseQ4 171.678
Time Warner IncTWX USBef-mktQ3 2017 Earnings ReleaseQ3 171.586
Quintiles IMS Holdings IncQ USBef-mktQ3 2017 Earnings ReleaseQ3 171.136
L3 Technologies IncLLL USBef-mktQ3 2017 Earnings ReleaseQ3 171.93
LKQ CorpLKQ USBef-mktQ3 2017 Earnings ReleaseQ3 170.425
Valero Energy CorpVLO USBef-mktQ3 2017 Earnings ReleaseQ3 171.835
Southwest Airlines CoLUV USBef-mktQ3 2017 Earnings ReleaseQ3 170.865
Marathon Petroleum CorpMPC USBef-mktQ3 2017 Earnings ReleaseQ3 171.48
Waste Management IncWM USBef-mktQ3 2017 Earnings ReleaseQ3 170.879
Praxair IncPX US06:01Q3 2017 Earnings ReleaseQ3 171.447
EQT CorpEQT US06:25Q3 2017 Earnings ReleaseQ3 17(0.033)
Boston Scientific CorpBSX US06:30Q3 2017 Earnings ReleaseQ3 170.308
Alexion Pharmaceuticals IncALXN US06:30Q3 2017 Earnings ReleaseQ3 171.32
BorgWarner IncBWA US06:30Q3 2017 Earnings ReleaseQ3 170.876
Invesco LtdIVZ US06:55Q3 2017 Earnings ReleaseQ3 170.657
American Electric Power Co IncAEP US06:57Q3 2017 Earnings ReleaseQ3 171.161
Bristol-Myers Squibb CoBMY US06:59Q3 2017 Earnings ReleaseQ3 170.772
Ford Motor CoF US07:00Q3 2017 Earnings ReleaseQ3 170.326
ConocoPhillipsCOP US07:00Q3 2017 Earnings ReleaseQ3 170.082
Hershey Co/TheHSY US07:00Q3 2017 Earnings ReleaseQ3 171.293
Xerox CorpXRX US07:00Q3 2017 Earnings ReleaseQ3 170.826
Marsh & McLennan Cos IncMMC US07:00Q3 2017 Earnings ReleaseQ3 170.781
CME Group IncCME US07:00Q3 2017 Earnings ReleaseQ3 171.156
Raytheon CoRTN US07:00Q3 2017 Earnings ReleaseQ3 171.906
Altria Group IncMO US07:00Q3 2017 Earnings ReleaseQ3 170.874
WEC Energy Group IncWEC US07:00Q3 2017 Earnings ReleaseQ3 170.665
S&P Global IncSPGI US07:15Q3 2017 Earnings ReleaseQ3 171.535
American Airlines Group IncAAL US07:30Q3 2017 Earnings ReleaseQ3 171.402
SCANA CorpSCG US07:30Q3 2017 Earnings ReleaseQ3 171.19
T Rowe Price Group IncTROW US07:30Q3 2017 Earnings ReleaseQ3 171.423
Celgene CorpCELG US07:30Q3 2017 Earnings ReleaseQ3 171.873
McKesson CorpMCK US07:30Q2 2018 Earnings ReleaseQ2 182.797
NextEra Energy IncNEE US07:30Q3 2017 Earnings ReleaseQ3 171.768
Charter Communications IncCHTR US07:30Q3 2017 Earnings ReleaseQ3 170.964
United Parcel Service IncUPS US07:45Q3 2017 Earnings ReleaseQ3 171.446
McKesson CorpMCK US08:00Q2 2018 Earnings CallQ2 18
Allegion PLCALLE US08:00Q3 2017 Earnings CallQ3 17
Newmont Mining CorpNEM US08:00Q3 2017 Earnings ReleaseQ3 170.328
Unum GroupUNM US08:00Q3 2017 Earnings CallQ3 17
Boston Scientific CorpBSX US08:00Q3 2017 Earnings CallQ3 17
Union Pacific CorpUNP US08:00Q3 2017 Earnings ReleaseQ3 171.493
TechnipFMC PLCFTI US08:00Q3 2017 Earnings CallQ3 17
Raymond James Financial IncRJF US08:15Q4 2017 Earnings CallQ4 17
Franklin Resources IncBEN US08:30Q4 2017 Earnings ReleaseQ4 170.719
CME Group IncCME US08:30Q3 2017 Earnings CallQ3 17
Marsh & McLennan Cos IncMMC US08:30Q3 2017 Earnings CallQ3 17
United Parcel Service IncUPS US08:30Q3 2017 Earnings CallQ3 17
Comcast CorpCMCSA US08:30Q3 2017 Earnings CallQ3 17
CMS Energy CorpCMS US08:30Q3 2017 Earnings ReleaseQ3 170.564
S&P Global IncSPGI US08:30Q3 2017 Earnings CallQ3 17
Hershey Co/TheHSY US08:30Q3 2017 Earnings CallQ3 17
CMS Energy CorpCMS US08:30Q3 2017 Earnings CallQ3 17
Union Pacific CorpUNP US08:45Q3 2017 Earnings CallQ3 17
NextEra Energy IncNEE US09:00Q3 2017 Earnings CallQ3 17
Quintiles IMS Holdings IncQ US09:00Q3 2017 Earnings CallQ3 17
Invesco LtdIVZ US09:00Q3 2017 Earnings CallQ3 17
Raytheon CoRTN US09:00Q3 2017 Earnings CallQ3 17
Universal Health Services IncUHS US09:00Q3 2017 Earnings CallQ3 17
Packaging Corp of AmericaPKG US09:00Q3 2017 Earnings CallQ3 17
Celgene CorpCELG US09:00Q3 2017 Earnings CallQ3 17
American Electric Power Co IncAEP US09:00Q3 2017 Earnings CallQ3 17
Marathon Petroleum CorpMPC US09:00Q3 2017 Earnings CallQ3 17
Altria Group IncMO US09:00Q3 2017 Earnings CallQ3 17
Ford Motor CoF US09:00Q3 2017 Earnings CallQ3 17
Aflac IncAFL US09:00Q3 2017 Earnings CallQ3 17
Xcel Energy IncXEL US09:00Q3 2017 Earnings ReleaseQ3 170.922
BorgWarner IncBWA US10:00Q3 2017 Earnings CallQ3 17
Air Products & Chemicals IncAPD US10:00Q4 2017 Earnings CallQ4 17
Charter Communications IncCHTR US10:00Q3 2017 Earnings CallQ3 17
Hilton Worldwide Holdings IncHLT US10:00Q3 2017 Earnings CallQ3 17
Alexion Pharmaceuticals IncALXN US10:00Q3 2017 Earnings CallQ3 17
Waste Management IncWM US10:00Q3 2017 Earnings CallQ3 17
Mid-America Apartment Communities IncMAA US10:00Q3 2017 Earnings CallQ3 17
Xerox CorpXRX US10:00Q3 2017 Earnings CallQ3 17
Kimco Realty CorpKIM US10:00Q3 2017 Earnings CallQ3 17
Newmont Mining CorpNEM US10:00Q3 2017 Earnings CallQ3 17
LKQ CorpLKQ US10:00Q3 2017 Earnings CallQ3 17
American Airlines Group IncAAL US10:00Q3 2017 Earnings CallQ3 17
Valero Energy CorpVLO US10:00Q3 2017 Earnings CallQ3 17
Xcel Energy IncXEL US10:00Q3 2017 Earnings CallQ3 17
EQT CorpEQT US10:30Q3 2017 Earnings CallQ3 17
Bristol-Myers Squibb CoBMY US10:30Q3 2017 Earnings CallQ3 17
L3 Technologies IncLLL US11:00Q3 2017 Earnings CallQ3 17
Praxair IncPX US11:00Q3 2017 Earnings CallQ3 17
Franklin Resources IncBEN US11:00Q4 2017 Earnings CallQ4 17
Citigroup IncC US11:00Q3 2017 Earnings Call - Fixed IncomeQ3 17
O'Reilly Automotive IncORLY US11:00Q3 2017 Earnings CallQ3 17
ConocoPhillipsCOP US12:00Q3 2017 Earnings CallQ3 17
Mettler-Toledo International IncMTD USQ3 2017 Earnings ReleaseQ3 174.33
Southwest Airlines CoLUV US12:30Q3 2017 Earnings CallQ3 17
Public StoragePSA US13:00Q3 2017 Earnings CallQ3 17
WEC Energy Group IncWEC US14:00Q3 2017 Earnings CallQ3 17
Realty Income CorpO US14:30Q3 2017 Earnings CallQ3 17
SCANA CorpSCG US15:00Q3 2017 Earnings CallQ3 17
Duke Realty CorpDRE US15:00Q3 2017 Earnings CallQ3 17
Intel CorpINTC US16:00Q3 2017 Earnings ReleaseQ3 170.803
Alphabet IncGOOGL USAft-mktQ3 2017 Earnings ReleaseQ3 178.328
Fortive CorpFTV USAft-mktQ3 2017 Earnings ReleaseQ3 170.73
Arthur J Gallagher & CoAJG USAft-mktQ3 2017 Earnings ReleaseQ3 170.793
Cerner CorpCERN USAft-mktQ3 2017 Earnings ReleaseQ3 170.622
FirstEnergy CorpFE USAft-mktQ3 2017 Earnings ReleaseQ3 170.862
ResMed IncRMD US16:00Q1 2018 Earnings ReleaseQ1 180.65
Stryker CorpSYK US16:00Q3 2017 Earnings ReleaseQ3 171.494
Align Technology IncALGN US16:00Q3 2017 Earnings ReleaseQ3 170.815
Western Digital CorpWDC USAft-mktQ1 2018 Earnings ReleaseQ1 183.308
National Oilwell Varco IncNOV USAft-mktQ3 2017 Earnings ReleaseQ3 17(0.082)
Wynn Resorts LtdWYNN USAft-mktQ3 2017 Earnings ReleaseQ3 171.425
Amazon.com IncAMZN US16:01Q3 2017 Earnings ReleaseQ3 170.033
Expedia IncEXPE US16:01Q3 2017 Earnings ReleaseQ3 172.619
Gilead Sciences IncGILD US16:01Q3 2017 Earnings ReleaseQ3 172.132
Chubb LtdCB US16:01Q3 2017 Earnings ReleaseQ3 17(0.253)
Cincinnati Financial CorpCINF US16:05Q3 2017 Earnings ReleaseQ3 170.523
VeriSign IncVRSN US16:05Q3 2017 Earnings ReleaseQ3 170.973
Mohawk Industries IncMHK US16:05Q3 2017 Earnings ReleaseQ3 173.736
Leggett & Platt IncLEG US16:05Q3 2017 Earnings ReleaseQ3 170.603
Mattel IncMAT US16:05Q3 2017 Earnings ReleaseQ3 170.583
Cadence Design Systems IncCDNS US16:05Q3 2017 Earnings ReleaseQ3 170.341
Microsoft CorpMSFT US16:09Q1 2018 Earnings ReleaseQ1 180.718
Principal Financial Group IncPFG US16:15Q3 2017 Earnings ReleaseQ3 171.297
KLA-Tencor CorpKLAC US16:15Q1 2018 Earnings ReleaseQ1 181.646
Gilead Sciences IncGILD US16:30Q3 2017 Earnings CallQ3 17
Cerner CorpCERN US16:30Q3 2017 Earnings CallQ3 17
Expedia IncEXPE US16:30Q3 2017 Earnings CallQ3 17
Stryker CorpSYK US16:30Q3 2017 Earnings CallQ3 17
Alphabet IncGOOGL US16:30Q3 2017 Earnings CallQ3 17
ResMed IncRMD US16:30Q1 2018 Earnings CallQ1 18
VeriSign IncVRSN US16:30Q3 2017 Earnings CallQ3 17
Eastman Chemical CoEMN US16:30Q3 2017 Earnings ReleaseQ3 172.033
Align Technology IncALGN US16:30Q3 2017 Earnings CallQ3 17
Wynn Resorts LtdWYNN US16:30Q3 2017 Earnings CallQ3 17
Mattel IncMAT US17:00Q3 2017 Earnings CallQ3 17
Western Digital CorpWDC US17:00Q1 2018 Earnings CallQ1 18
Apartment Investment & Management CoAIV US17:00Q3 2017 Earnings ReleaseQ3 170.614
Intel CorpINTC US17:00Q3 2017 Earnings CallQ3 17
Cadence Design Systems IncCDNS US17:00Q3 2017 Earnings CallQ2 17
Arthur J Gallagher & CoAJG US17:15Q3 2017 Earnings CallQ3 17
Microsoft CorpMSFT US17:30Q1 2018 Earnings CallQ1 18
Fortive CorpFTV US17:30Q3 2017 Earnings CallQ3 17
Amazon.com IncAMZN US17:30Q3 2017 Earnings CallQ3 17
KLA-Tencor CorpKLAC US18:00Q1 2018 Earnings CallQ1 18

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