Friday, June 3, 2011

Barchart Morning Call 6/3

Barchart Morning Call
Overnight Developments
  • Global stocks are mostly lower with the European Euro Stoxx 50 down -0.49% and June S&Ps down -3.90 points. Treasuries are higher and the dollar is little changed as the market awaits the US May payrolls report later this morning. The euro is little changed as European Union and IMF officials today complete a review of Greece's plan for 78 billion euros ($113 billion) in asset sales and austerity measures as they prepare for the nation's second bailout in little more than a year. The British pound slipped to a 1-week low against the dollar after May UK PMI services fell -0.5 to 53.8, weaker than expectations of -0.1 to 54.2. A drop in EON AG and RWE AG, Germany's biggest utilities, is weighing on European stocks after Financial Times Deutschland reported that Germany's four largest electric companies will lose about 3.5 billion euros in sales per year from the permanent shut down of 8 out of Germany's 17 nuclear power plants. Limiting stock declines was the unexpected upward revisions of May German PMI services to 56.1 from the originally reported 54.9, and to the May Euro-Zone PMI composite to 55.8 from the originally reported 55.4.
  • The Asian stock markets today closed mixed with Japan down -0.66%, Hong Kong -1.31%, China +1.04%, Taiwan +0.61%, Australia -0.38%, Singapore -0.47%, South Korea +0.03%, India -0.64%. Most Asian markets closed lower on concern recent economic data that point to a slowdown in the US economy will lead to weakened demand for Asian goods. A rally in the yen to a 2-1/2 week high against the dollar undercut Japanese exporters, while Prime Minister Kan's pledge to step down sparked a contest to select the next Japanese leader. Kan survived a no-confidence vote in parliament yesterday, but the process of selecting a new leader may add to delays in reconstruction from the March earthquake and to approval of plans to boost taxes and shrink the deficit needed to restore growth and ease credit concerns.
Overnight U.S. Stock News
  • June S&Ps this morning are tradingdown -3.90 points ahead of May US nonfarm payrolls. The US stock market yesterday settled mixed as concern the economy is slowing weighed on prices: Dow Jones -0.34%, S&P 500 -0.12%, Nasdaq Composite +0.15%. The Dow and S&P 500 fell to 1-1/2 month lows while the Nasdaq slipped to a 1-week low. Bearish factors for stocks included (1) the smaller-than-expected drop in weekly initial unemployment claims (-6,000 to 422,000 versus expectations -7,000 to 417,000), (2) the larger than expected decline in Apr factory orders which posted their largest monthly drop in 11 months (-1.2% versus expectations of -1.0%), (3) weakness in financial stocks after Moody's Investors Service placed the deposit, senior debt and senior subordinated debt ratings of Bank of America, Citigroup and Wells Fargo and their subsidiaries on review for possible downgrade, and (4) the sell-off in retailers after May sales trailed analysts' estimates amid rising prices and soaring gasoline costs.
  • Bullish factors included (1) reduced concerns over the European debt crisis after German Chancellor Merkel said the European Union remains committed to the euro and the outlook for German growth is "very positive," and (2) a rally in for-profit colleges after the US Education Department gave the industry more time to comply with rules that will cut off federal aid to institutions whose students struggle the most to repay their government loans.
Today's Market Focus
  • September 10-year T-notes this morning are up +6 ticks. T-note prices yesterday fluctuated on either side of unchanged until late morning as weaker-than-expected economic data supported prices but T-notes headed lower in the afternoon and finished with modest losses after Moody's warned it may put the US government's rating under review: TYU11 -11, FVU11 -6.2, EDZ11 -0.5. Sep T-notes posted a 6-month nearest-futures high but erased their gains and closed lower. Bearish factors included (1) long-liquidation and position squaring ahead of Friday's all-important monthly payrolls report, (2) reduced concerns over the European debt crisis which cut the safe-haven demand for Treasuries after German Chancellor Merkel said the European Union remains committed to the euro and the outlook for German growth is "very positive," and (3) the warning from Moody's Investors Service that it will place the US government's rating under review for possible downgrade if there is no progress on increasing the statutory debt limit in coming weeks. Bullish factors included (1) the smaller-than-expected drop in weekly initial unemployment claims (-6,000 to 422,000 versus expectations -7,000 to 417,000), (2) the larger than expected decline in Apr factory orders which posted their largest monthly drop in 11 months (-1.2% versus expectations of -1.0%), and (3) increased safe-haven demand for Treasuries over debt concerns in the banking sector after Moody's Investors Service placed the deposit, senior debt and senior subordinated debt ratings of Bank of America, Citigroup and Wells Fargo and their subsidiaries on review for possible downgrade.
  • The dollar index this morning is little changed with the dollar/yen -0.33 yen and the euro/dollar +0.02 cents. The dollar index yesterday slid to a 3-1/2 week low and finished modestly lower after comments from German Chancellor Merkel lifted the euro while weaker-than-expected US economic data undercut the dollar: Dollar Index -0.344, USDJPY -0.052, EURUSD +0.01621. Bearish factors included (1) comments from German Chancellor Merkel who said the European Union remains committed to the euro and the outlook for German growth is "very positive," (2) weaker-than-expected US economic data on weekly jobless claims and Apr factory orders, which indicate economic weakness and is dollar negative, and (3) the warning from Moody's that it will place the US government's rating under review for possible downgrade if there is no progress on increasing the statutory debt limit in coming weeks. Bullish factors included (1) increased safe-haven demand for the dollar after credit-default swaps to insure Portuguese and Irish government debt rose to records, which indicate the European sovereign-debt crisis may worsen, and (2) the early slide in stock prices which also boosted the safe-haven demand for the dollar.
  • July crude oil prices this morning are trading down -87 cents a barrel and July gasoline -1.50 cents per gallon. Crude oil and gasoline prices yesterday fell to 1-week lows and finished mixed as an increase in fuel demand and a weak dollar offset weaker-than-expected economic data and an unexpected increase in weekly crude inventories: CLN11 +$0.11, RBN11 -0.73. Bearish factors included (1) weaker-than-expected US economic data that showed a smaller-than-expected decline in weekly US jobless claims along with the biggest monthly decline in Apr factory orders in 11 months, which suggests economic weakness that may curtail energy demand, (2) the unexpected increase in weekly DOE crude oil inventories for a second week (+2.88 million bbl versus expectations of -1.6 million bbl), and (3) the larger-than-expected rise in weekly DOE gasoline supplies (+2.55 million bbl versus expectations of +800,000 bbl). Bullish factors included (1) the drop in the dollar index to a 3-1/2 week low, which boosts investment demand in commodities, and (2) increased demand after US gasoline demand in the week ended May 27 rose +4.5% w/w to 9.43 million barrels a day, the highest in 9 months.
Today's U.S. Earnings Reports Earnings reports (confirmed releases, sorted by mkt cap) BTH-Blyth (BEST earnings consensus $2.13), AMWD-American Woodmark (-0.23), JRJC-China Finance Online Co. Ltd. (0.07).
Global Financial Calendar
Friday 6/3/11
United States
0830 ET May nonfarm payrolls expected +170,000, Apr +244,000. May private payrolls (ex-government) expected +180,000, Apr +268,000. May unemployment rate expected -0.1 to 8.9%, Apr +0.2 to 9.0%. May manufacturing payrolls expected +10,000, Apr +29,000. May avg hourly earnings all employees expected +0.2% m/m, Apr +0.1% m/m and +1.9% y/y. May avg weekly hours all employees expected unchanged at 34.3 hours, Apr unchanged at 34.3 hours.
0830 ET USDA weekly export sales.
1000 ET May ISM non-manufacturing index expected +1.2 to 54.0, Apr -4.5 to 52.8.
1230 ET Fed Governor Daniel Tarullo speaks on the international discussions on new financial regulation at the Peterson Institute for International Economics.
1530 ET Boston Fed President Eric Rosengren will be the keynote speaker at the Stanford Finance Forum at Stanford University.
Euro-Zone
0300 ET ECB Executive Board member Jose Manuel Gonzalez-Paramo, Bank of Spain Governor Miguel Angel Fernandez Ordonez and IMF Director of Capital Markets Jose Vinals speak at a conference in Sitges, Spain.
0400 ET Revised May Euro-Zone PMI composite expected no change at 55.4.
France
0350 ET Revised May French PMI services expected no change at 62.8.
Germany
0355 ET Revised May German PMI services expected no change at 54,9.
United Kingdom
0430 ET May UK PMI services expected -0.1 to 54.2, Apr -2.8 to 54.3.

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Diageo - Barchart Chart of the Day

Barchart.coms Chart of the Day - Diageo (DEO)
Related Stocks
DEO - Diageo Plc
Sym Last Chg Pct
DEO 85.42 +1.21 +1.44%
The "Chart of the Day" is Diageo (DEO), which showed up on Thursday's Barchart "All Time High" list. Diageo on Thursday rallied by 1.44% and posted a new all-time high of $85.53. TrendSpotter has been Long on Diageo since April 6 at 78.44. In recent news on the stock, Bloomberg on May 24 reported that Diageo is in talks to buy Jose Cuervo for more than $2 billion. Jefferies on April 12 initiated coverage on Diageo with a Buy. Morgan Stanley on March 28 named Diageo as a long Research Tactical idea. Diageo, with a market cap of $53 billion, is a multinational food and drinks company with brands including Smirnoff, Johnnie Walker, J&B, Gordon's, Malibu, Baileys, Guinness and Tanqueray.

deo_700
How we found the Chart of the Day:
We found the "Chart of the Day" by scanning the Barchart "All Time High" list. In order to get to that list, we first clicked on the Stocks menu item on the Barchart home page, then on the "All Time Highs" menu item on the left menu bar. A stock that has posted a new All-Time high is typically showing strong upside momentum.
Barchart's Opinion trading systems are mostly a Buy and Barchart's daily TrendSpotter trading system is a "Buy." Please note that the Barchart Opinion indicators are updated live during the session every 10 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com web site when you read this report.
  • TrendSpotter: Buy
  • Short-Term Indicators: 80% Buy
  • Medium-Term Indicators: 100% Buy
  • Long-Term Indicators: 100% Buy
  • Overall Average 96% Buy


Barchart links for further information:

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Quote
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Chart

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Company Info
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Key Statistics
Ratios
Income Statement-Quarterly
Income Statement-Annual
Balance Sheet-Current
Balance Sheet-Annual


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Thursday, June 2, 2011

Hanger Orthopedics sell signals

This morning on Barchart I detected sell signals on Hanger Orthopedics (HGR) and deleted it from the Barchart Van Meerten New High portfolio for negative price momentum.


Barchart techical indicators:
  • 100% Barchart short term technical sell signal
  • Trend Spotter sell signal
  • Below its 20, 50 and 100 day moving averages
  • 17.60% off its recent high
  • Relative Strength Index is 35.44% and falling
Jim Van Meerten is a Marketocracy Master

Barchart Morning Call 6/2

Barchart Morning Call
Overnight Developments
  • Global stocks are mostly lower with the European Euro Stoxx 50 down -0.78% and June S&Ps are up +3.40 points. Treasuries are little changed and the euro climbed to a 3-1/2 week high against the dollar after German Chancellor Merkel said the European Union remains committed to the euro and the outlook for German growth is "very positive." European stocks weakened on concern the economic recovery is faltering and as Portuguese and Greek debt insurance surged to records after Moody's Investors Service late yesterday said Greece has a 50% chance of default. US stock futures gained after yesterday's plunge left the S&P 500 at 13.2 times estimated earnings of its companies, its lowest valuation since March 18.
  • The Asian stock markets today closed lower with Japan down -1.69%, Hong Kong -1,58%, China -1.61%, Taiwan -0.78%, Australia -2.27%, Singapore -0.39%, South Korea -1.41%, India -0.62%. Asian stocks were undercut after May US manufacturing data expanded at its weakest pace in 20 months and employers hired fewer workers than forecast, which fueled concern the global economic recovery will slow. Japanese automakers led declines in Japanese stocks as Toyota's May US monthly sales fell -33% y/y, Honda's US sales fell -23% y/y and Nissan's May US sales slipped -9.1% y/y, as the quake crisis limited production and supplies of some models ran low. China's Shanghai Stock Index tumbled to a 4-1/4 month low on concern slowing economic growth and government tightening policies will hurt corporate earnings. The Shanghai Daily News reported that the PBOC may raise interest rates ahead of a public holiday on Jun 6 because consumer prices are expected to rise to a new high in May. Chinese automakers closed lower after China's Passenger Car Association reported that China's May passenger car sales, excluding minivans, fell -11% m/m and -1.0% y/y to 850,000 units.
Overnight U.S. Stock News
  • June S&Ps this morning are trading up +3.40 points. The US stock market yesterday fell sharply as slower than expected job growth along with weakness in manufacturing activity fueled concern that the economy is faltering: Dow Jones -2.22%, S&P 500 -2.28%, Nasdaq Composite -2.33%. The Dow fell to a 1-1/4 month low. Bearish factors for stocks included (1) the smaller-than-expected increase in the May ADP employment change which posted its smallest job gain in 8 months (+38,000 versus expectations of +175,000), (2) the sharper-than-expected decline in the May ISM manufacturing index which expanded at its slowest pace in 20-months (-6.9 to 53.5 versus expectations of -2.9 to 57.5), (3) the action by Moody's Investors Service to cut Greece's local and foreign currency bond ratings to Caa1 from B1 with a negative outlook, and said there's a growing risk that Greece will default on its debt, and (4) concern that economic growth is slowing globally as well after the May Euro-Zone manufacturing PMI was unexpectedly revised down to a 7-month low (-0.2 to 54.6), the May UK PMI manufacturing slipped to a 1-1/2 year low (-2.3 to 52.1), and China's May PMI manufacturing expanded at its slowest pace in 9 months (-0.9 to 52.0).
  • Bullish factors included (1) reduced inflation concerns after the larger-than-expected decline in the May ISM prices-paid sub-index (-9.0 to 76.5 versus expectations of -3.7 to 81.8), (2) comments from Cleveland Fed President Pianalto who said she "expects the economy to continue on a gradual recovery pace over the next few years, with annual growth just above 3% a year," and (3) reduced interest rate concerns after the yield on the 10-year T-note fell to a 5-3/4 month low of 2.95%.
  • Joy Global (JOYG) jumped 3.4% in pre-market trading after the company raised its earnings estimates for this year to $5.30 to $5.60 a share, up from an earlier estimate of $5.10 to $5.40 as orders increased.
Today's Market Focus
  • September 10-year T-notes this morning are unchanged. T-note prices yesterday rallied sharply the entire day as weaker-than-expected economic data suggest the economy is slowing: TYU11 +22.5, FVU11 +12, EDZ11 unchanged. Sep T-notes posted a 6-month nearest-futures high and the 10-year T-note yield fell to a 5-3/4 month low of 2.95%. Bullish factors included (1) the smaller-than-expected increase in the May ADP employment change which posted its smallest job gain in 8 months (+38,000 versus expectations of +175,000), (2) the action by Goldman Sachs to cut its forecast for Friday's May nonfarm payrolls to +100,000 from +150,000, (3) the sharper-than-expected decline in the May ISM manufacturing index which expanded at its slowest pace in 20-months (-6.9 to 53.5 versus expectations of -2.9 to 57.5), (4) reduced inflation concerns after the larger-than-expected decline in the May ISM prices-paid sub-index (-9.0 to 76.5 versus expectations of -3.7 to 81.8), and (5) technical buying after the yield on the 10-year T-note fell below 3.00%. A bearish factor was comments from Cleveland Fed President Pianalto who said she "expects the economy to continue on a gradual recovery pace over the next few years, with annual growth just above 3% a year."
  • The dollar index this morning is weaker and slipped to a 3-1/2 week low in overnight trade with the dollar/yen -0.13 yen and the euro/dollar +1.40 cents. The dollar index yesterday fell to a 3-1/2 week low on weaker-than-expected US economic data but erased its losses and closed higher on increased safe-haven demand after Moody's cut Greece's bond ratings and the stock market tumbled: Dollar Index +0.039, USDJPY -0.578, EURUSD -0.00681. Bullish factors included (1) the unexpected downward revision to May Euro-Zone PMI manufacturing, which is euro negative, (2) weakness in the British pound which declined against the dollar after May UK PMI manufacturing fell to its lowest level in 1-1/2 years, (3) increased safe-haven demand for the dollar as the equity market sold off and after Moody's Investors Service cut Greece's local and foreign currency bond ratings to Caa1 from B1 with a negative outlook. Bearish factors included (1) the weaker than expected May ADP employment change which showed its smallest job gain in 8 months, (2) the weaker-than-expected May ISM manufacturing index which expanded at its slowest pace in 20-months, and (3) the fall in the 10-year T-note yield to a 5-3/4 month low, which further weakens the dollar's interest rate differentials.
  • July crude oil prices this morning are trading up +8 cents a barrel and July gasoline is +0.96 of a cent per gallon. Crude oil and gasoline prices yesterday closed sharply lower as OPEC increased production in May and after weaker-than-expected global economic data hint at reduced energy demand: CLN11 -$2.41, RBN11 -6.45. Bearish factors included (1) weaker-than-expected US economic data that showed the smallest gain in May ADP employment in 8 months and May ISM manufacturing activity expanded at its lowest level in 20-months, (2) the unexpected downward revision to May Euro-Zone PMI manufacturing to a 7-month low, (3) the fall in May China PMI manufacturing activity to a 9-month low, and (4) Bloomberg data that shows OPEC crude production in May rose +0.6% to 28.895 million barrels a day, the highest since Feb. Bullish factors included (1) the fall in the dollar index to a 3-1/2 week low, which boosts investment demand in commodities, and (2) the statement from Iran's OPEC Governor who said that maintaining current OPEC production quotas is the only way to balance the oil market. Expectations for the weekly DOE inventory report (delayed 1 day because of the Memorial Day holiday) are for crude oil supplies to drop -1.6 million bbl, gasoline stockpiles to increase +800,000 bbl, distillate inventories to remain unchanged and the refinery capacity rate to rise +0.5 to 86.8%.
Today's U.S. Earnings Reports Earnings reports (confirmed releases, sorted by mkt cap) JOYG-Joy Global (BEST earnings consensus $1.35), SAI-SAIC Inc. (0.33), PAY-Verifone Systems (0.43), COO-Cooper Companies (0.93), UTIW-UTi Worldwide (0.13), UNFI-United Natural Foods (0.48), TFM-Fresh Market (0.20), DMND-Diamond Foods (0.48), JOSB-JOS A Bank Clothiers (0.66), CYBX-Cyberonics (0.29), ZQK-Quicksilver (0.07), XIDE-Exide Technologies (0.28).
Global Financial Calendar
Thursday 6/2/11
United States
0830 ET Weekly initial unemployment claims expected -7,000 to 417,000, previous +10,000 to 424,000. Weekly continuing claims expected -15,000 to 3.675 million, previous 46,000 to 3.690 million.
0830 ET Revised Q1 nonfarm productivity expected +1.7%, previous +1.6%. Revised Q1 unit labor costs expected +0.8%, previous +1.0%.
1000 ET Apr factory orders expected -1.0%, Mar +3.4%.
1030 ET May ICSC chain store sales, Apr +8.5% y/y.
1100 ET Treasury announces amounts of 3-year T-notes (previous $32 billion), 10-year T-notes (previous $24 billion) and 30-year T-bonds (previous $16 billion) to be auctioned Jun 7-9.
1630 ET Weekly money supply report and Fed balance sheet.
United Kingdom
0430 ET May UK PMI construction expected +0.2 to 53.5, Apr -3.1 to 53.3.
CHI
2100 ET May China non-manufacturing PMI, Apr +2.3 to 62.5.

Barchart.com provides Financial Quotes, Charts and Technical Analysis for Stock and Commodity Traders.

J M Smucker - Barchart Chart oif the Day

Barchart.com's Chart of the Day - J.M. Smucker (SJM)
Related Stocks
SJM - J.M. Smucker Company
Sym Last Chg Pct
SJM 79.34 +0.06 +0.08%
The "Chart of the Day" is J.M. Smucker (SJM), which showed up on Wednesday's Barchart "All Time High" list. Smucker on Wednesday posted a new all-time high of $79.84 and closed 0.08% higher. TrendSpotter has been Long on Smucker since May 10 at $74.95. Smucker was featured in "Chart of the Day" on April 14 when the stock was trading at $73.40. Smucker on May 16 completed its $360 million acquisition of Rowland Coffee Roasters. J.M. Smucker, with a market cap of $9 billion, is the leading marketer of jams, jellies, preserves, and other fruit spreads in the U.S. The company is also the leader in dessert toppings, natural peanut butter, and health and natural foods juice products, and market a wide variety of other specialty products throughout the U.S. and in many foreign countries.

sjm_700_01
How we found the Chart of the Day:
We found the "Chart of the Day" by scanning the Barchart "All Time High" list. In order to get to that list, we first clicked on the Stocks menu item on the Barchart home page, then on the "All Time Highs" menu item on the left menu bar. We then sorted the list by percentage gainers by clicking on the "Percent" column title. A stock that has posted a new All-Time high is typically showing strong upside momentum.
Barchart's Opinion trading systems are all a Buy and Barchart's daily TrendSpotter trading system is a "Buy." Please note that the Barchart Opinion indicators are updated live during the session every 10 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com web site when you read this report.
  • TrendSpotter: Buy
  • Short-Term Indicators: 100% Buy
  • Medium-Term Indicators: 100% Buy
  • Long-Term Indicators: 100% Buy
  • Overall Average 100% Buy


Barchart links for further information:

Quotes and Charts
Quote
Detailed Quote
Chart

Technical Analysis
Technicals Summary
Trader's Cheat Sheet™

Barchart Opinions
Barchart Opinion
Barchart Snapshot
Trading Strategies

Company Info
Company Profile
Key Statistics
Ratios
Income Statement-Quarterly
Income Statement-Annual
Balance Sheet-Current
Balance Sheet-Annual


Chart of the Day Archive
View Past Chart of the Day Reports

Wednesday, June 1, 2011

Frequency Electronics sell signals

This morning Frequency Electronics (FEIM) gave sell signals on Barchart and exhibited negative price momentum.


Barchart technical indicators:
  • 80% Barchart technical sell signals
  • Trend Spotter sell signal
  • Below its 20 and 50 day moving averages
  • 18.41% off its recent high
  • Relative Strength Index 42.03% and falling

Lowe's sell signals

This morning I detected sell signals on Barchart for Lowe's (LOW).  It is having negative price trends.


Barchart technical indicators:
  • 80% Barchart technical sell signals
  • Trend Spotter sell signals
  • Below its 20, 50 and 100 day moving averages
  • 11.71% off its recent high
  • Relative Strength Index 29.86% and falling

Barchart Morning Call 6/1

Barchart Morning Call
Overnight Developments
  • Global stocks are mixed with the European Euro Stoxx 50 down -0.19% and June S&Ps down -1.60 points. The dollar index is little changed after falling to a 3-1/2 week low in overnight trade and most commodities are weaker. The euro fell back from a 3-1/2 week high against the dollar after the German newspaper Frankfurter Allgemene Zeitung reported that the IMF may not pay out its fifth tranche of aid to Greece in June after officials assess the country's progress in cutting its budget deficit. European stocks fell back after manufacturing activity in the Euro-Zone was unexpectedly revised lower in May. The May German PMI manufacturing index was revised down to 57.7 from the originally reported 58.2 and the May Euro-Zone PMI manufacturing index was revised down to 54.6 from 54.8, both to 7-month lows. The British pound weakened against the dollar after the May UK PMI manufacturing index fell -2.3 to 52.1, a 1-1/2 year low and weaker than expectations of -0.5 to 54.1.
  • The Asian stock markets today closed mixed with Japan up +0.27%, Hong Kong -0.24%, China +0.09%, Taiwan +0.82%, Australia -0.02%, Singapore +0.41%, South Korea unchanged, India +0.57%. Chinese manufacturing activity in May fell to its slowest pace in 9 months as the May China PMI manufacturing index slid -0.9 to 52.0, although it was slightly stronger than expectations of -1.3 to 51.6. Asian technology companies gained, especially those that are rivals to Nokia Oyj such as HTC, LG Electronics and Samsung, after Nokia said mobile phone sales will "substantially" fall short of expectations and it lowered its sales and profit forecasts as it lost market share to competitors. Australian stocks finished slightly lower after Q1 Australia GDP slumped -1.2% q/q, its biggest quarterly decline in 20 years, after flooded coal mines, railways and farmland hurt exports.
Overnight U.S. Stock News
  • June S&Ps this morning are trading down -1.60 points. The US stock market yesterday strengthened throughout the day and settled sharply higher on speculation the European Union will provide additional aid for Greece: Dow Jones +1.03%, S&P 500 +1.06%, Nasdaq Composite +1.37%. The S&P 500 and the Dow posted 1-week highs while the Nasdaq climbed to a 2-week high. Bullish factors for stocks included (1) a rally in financial companies on carry-over strength from a rally in European bank stocks on speculation European leaders will provide sufficient aid to help Greece avoid default on its debt after Jean-Claude Juncker, leader of the Euro-Zone finance ministers, said EU leaders will decide on a new aid package for Greece by the end of June and that EU officials have ruled out a "total restructuring" of Greece's debt, (2) gains in energy and raw-material producers as dollar weakness prompted a broad-based rally in most commodities, and (3) reduced interest rate concerns after the yield on the 10-year T-note fell to a 5-3/4 month low of 3.04%.
  • Bearish factors included (1) the weaker-than-expected Mar S&P/CaseShiller composite-20 home price index which fell -3.6% y/y, weaker than expectations of -3.4% y/y and the biggest annual decline in 16 months, (2) the unexpected drop in May US consumer confidence which tumbled to a 6-month low (-5.2 to 60.8 versus expectations of +1.1 to 66.5), and (3) the greater-than-expected drop in the May Chicago purchasing managers index which expanded at its slowest pace in 1-1/2 years (-11.0 to 56.6 versus expectations of -5.3 to 62.3).
Today's Market Focus
  • September 10-year T-notes this morning are down -1 tick. T-note prices yesterday erased an early decline after mid-morning and finished higher on concern the economy is slowing: TYU11 +4.5, FVU11 +4.2, EDZ11 unchanged. Sep T-notes posted a 5-3/4 month nearest-futures high and the 10-year T-note yield fell to a 5-3/4 month low of 3.04%. Bullish factors included (1) the larger-than-expected decline in home prices after the Mar S&P/CaseShiller composite-20 home price index fell -3.6% y/y, weaker than expectations of -3.4% y/y and the biggest annual decline in 16 months, (2) the unexpected drop in May US consumer confidence which tumbled to a 6-month low (-5.2 to 60.8 versus expectations of +1.1 to 66.5), and (3) the greater-than-expected drop in the May Chicago purchasing managers index which expanded at its slowest pace in 1-1/2 years (-11.0 to 56.6 versus expectations of -5.3 to 62.3). Bearish factors included (1) reduced safe-haven demand for Treasuries after global stock markets rallied when Jean-Claude Juncker, leader of the Euro-Zone finance ministers, said that EU leaders will decide on a new aid package for Greece by the end of June and that EU officials have ruled out a "total restructuring" of Greece's debt, and (2) comments from former Fed Chairman Volcker who said the Fed may raise interest rates "soon" as the US budget deficit and interest rate close to zero will eventually lead to "inflationary problems."
  • The dollar index this morning is little changed with the dollar/yen -0.17 yen and the euro/dollar +0.06 cents. The dollar index yesterday slid to a 2-1/2 week low and settled lower as optimism European officials will approve additional aid for Greece boosted the euro while weaker-than-expected US economic data undercut the dollar: Dollar Index -0.335, USDJPY +1.157, EURUSD +0.00941. Bearish factors included (1) the rally in the euro to a 3-week high against the dollar on reduced European debt concerns after Jean-Claude Juncker, leader of the Euro-Zone finance ministers, said that EU leaders will decide on a new aid package for Greece by the end of June and that EU officials have ruled out a "total restructuring" of Greece's debt, and (2) weaker-than-expected US economic data on May consumer confidence, May Chicago purchasing managers, and Mar S&P CaseShiller home prices, which suggests economic weakness and is dollar negative. Bullish factors included (1) weaker-than-expected European economic data on Apr German retail sales and Apr French consumer spending, which is euro negative, and (2) weakness in the yen against the dollar after Moody's Investors Service put Japan's debt rating on review for a downgrade, citing faltering growth prospects and "a weak policy response" that may hinder government efforts to cut the nation's debt burden.
  • July crude oil prices this morning are trading down -19 cents a barrel and July gasoline is -1.12 cents per gallon. Crude oil and gasoline prices yesterday rallied to 2-week highs and finished sharply higher as the dollar slumped and after TransCanada shut its 591,000 bpd crude pipeline to the US after a leak: CLN11 +$2.11, RBN11 +1.90. Bullish factors included (1) the slide in the dollar index to a 2-1/2 week low, which boosts investment demand in commodities, (2) the action by TransCanada to shut its 591,000 bpd Keystone crude pipeline that sends Canadian oil to the US after "an issue with a fitting" caused a leak, and (3) comments from Qatar's oil minister who said there's "no noticeable urgency" for OPEC to raise its oil quotas when it meets next week. Bearish factors included (1) the weaker-than-expected US economic data on May Chicago purchasing managers, May US consumer confidence and Mar S&P/CaseShiller composite-20 home prices, which indicates economic weakness that is negative for energy demand and consumption, and (2) weaker-than-expected European economic data on Apr French consumer spending and Apr German retail sales, which may limit economic expansion and fuel demand.
Today's U.S. Earnings Reports Earnings reports (confirmed releases, sorted by mkt cap) VIP-VimpelCom Ltd. (BEST earnings consensus $0.35), DG-Dollar General (0.50), CPRT-Copart (0.70), SNDA-Shanda Interactive Entertainment (0.44), ESL-Esterline Technologies (1.10), VRA-Vera Bradley (0.27), GAME-Shanda Games Ltd. (0.19).
Global Financial Calendar
Wednesday 6/1/11
United States
0700 ET Weekly MBA mortgage applications, last market index +1.1% with purchase mortgage sub-index +1.5% and refinancing sub-index +0.9%.
0730 ET May Challenger job cuts, Apr -4.8% y/y.
0745 ET ICSC (Int?l Council of Shopping Centers) weekly retailer sales (delayed 1 day due to Memorial Day).
0815 ET May ADP employment change expected +175,000, Apr +179,000.
0855 ET Redbook weekly retailer sales (delayed 1 day due to Memorial Day).
1000 ET May ISM manufacturing index expected -2.9 to 57.5, Apr -0.8 to 60.4. May ISM prices paid expected -3.7 to 81.8, Apr +0.5 to 85.5.
1000 ET Apr construction spending expected +0.3%, Mar +1.4%.
1130 ET Weekly 4-week and monthly 1-year T-bill auctions.
1225 ET Cleveland Fed President Sandra Pianalto speaks on ?Labor Markets and Monetary Policy? at the Columbus Metropolitan Club Forum.
1700 ET May total vehicle sales expected 12.45 million, Apr 13.14 million. May domestic vehicle sales expected 9.80 million, Apr 10.20 million.
2230 ET San Francisco Fed President John Williams delivers a speech on ?Economics Instruction and the Brave New World of Monetary Policy? as part of a national conference on Teaching Economics.
Japan
0100 ET May Japan vehicle sales, Apr -51.0% y/y.
1950 ET Q1 Japan capital spending excluding software expected -1.0%, Q4 +4.8%. Q1 capital spending expected +3.0%, Q4 +3.8%.
France
0130 ET Q1 French mainland unemployment rate, Q4 9.2%. Q1 mainland unemployment change, Q4 -49,000.
0130 ET Q1 French ILO unemployment rate expected -0.2 to 9.4%, Q4 -0.2 to 9.6%.
0350 ET Revised May French PMI manufacturing expected no change at 55.0.
Germany
0355 ET Revised May German PMI manufacturing expected no change at 58.2.
Euro-Zone
0400 ET Revised May Euro-Zone PMI manufacturing expected no change at 54.8.
0900 ET ECB President Jean-Claude Trichet speaks at an event in Aachen, Germany.
United Kingdom
0430 ET May UK PMI manufacturing expected -0.5 to 54.1, Apr -2.1 to 54.6.
0430 ET Apr UK net consumer credit expected +0.2 billion pounds, Mar +0.1 billion pounds.
0430 ET Apr UL mortgage approvals expected +47,000, Mar +47,600.
0430 ET Apr UK M4 money supply, Mar +0.1% m/m and -1.1% y/y.

Barchart.com provides Financial Quotes, Charts and Technical Analysis for Stock and Commodity Traders.

BT Group - Barchart Chart of the Day

Barchart.com's Chart of the Day - BT Group (BT)
Related Stocks
BT - Bt Group Plc
Sym Last Chg Pct
BT 33.33 +0.68 +2.08%
The "Chart of the Day" is BT Group (BT), which showed up on Tuesday's list of stocks that had a new "Buy" signal from the Barchart "TrendSpotter" trading system and also showed up on the Barchart "Gap Up" list. BT Group on Tuesday rallied by 2.08% and edged to a new 3-year high. In recent news on the stock, UBS upgraded BT Group on May 23 to a Buy from Neutral. BT Group, with a market cap of $25 billion, operates primarily through British Telecommunications plc, an international provider of tele-communications services.

bt_700
How we found the Chart of the Day:
We found the "Chart of the Day" by scanning the Barchart "Trading Signals" page. That page provides a summary of changes in the Barchart signals. We then clicked on the TrendSpotter "Buy" category to obtain a list of all the stocks for which the Barchart TrendSpotter trading system has just turned to a buy. We then clicked on the "Today's Opinion" column header in order to sort the list with the strongest stocks on top. Further information is available at Barchart Signals Guide help page and at TrendSpotter help page.
Barchart's Opinion trading systems are all a Buy and Barchart's daily TrendSpotter trading system is a "Buy." Please note that the Barchart Opinion indicators are updated live during the session every 10 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com web site when you read this report.
  • TrendSpotter: Buy
  • Short-Term Indicators: 100% Buy
  • Medium-Term Indicators: 100% Buy
  • Long-Term Indicators: 100% Buy
  • Overall Average 100% Buy


Barchart links for further information:

Quotes and Charts
Quote
Detailed Quote
Chart

Technical Analysis
Technicals Summary
Trader's Cheat Sheet™

Barchart Opinions
Barchart Opinion
Barchart Snapshot
Trading Strategies

Company Info
Company Profile
Key Statistics
Ratios
Income Statement-Quarterly
Income Statement-Annual
Balance Sheet-Current
Balance Sheet-Annual


Chart of the Day Archive
View Past Chart of the Day Reports

Tuesday, May 31, 2011

G Willi-Food International sell signal

This morning on Barchart I detected sell signals on G. Willi-Food International (WILC) and deleted it from the Barchart Van Meerten Speculative portfolio for negative price momentum.



Barchart technical indicators:
  • 80% Barchart short term technical
  • Trend Spotter sell signal
  • Below its 20, 50 and 100 day moving averages
  • 9.90% off its recent high
  • Relative Strength Index 36.23% and falling


Weyerhaeuser sell signals

This morning on Barchart I detected sell signals on Weyerhaeuser (WY) and deleted it form the Barchart Van Meerten New High portfolio for negative price momentum.


Barchart technical indicators:
  • 100% Barchart short term sell signals
  • Trend Spotter sell signal
  • Below its 20, 50 and 100 day moving averages
  • 16.08% off its recent high
  • Relative Strength Index 39.08% and falling

Royal Bank of Canada sell signals

This morning on Barchart I detected sell signals on Royal Bank of Canada (RY) and deleted it from the Barchart Van Meerten New High portfolio for negative price momentum.

Barchart technical sell signals:
  • 100% Barchart short term sell signals
  • Trend Spotter sell signals
  • Below its 20 and 50 day moving averages
  • 7.59% off its recent high
  • Relative Strength Index 32.05% and falling

AON - sell signals

This morning on Barchart I detected sell signals on Aon Corp (AON) and deleted it from the Barchart Van Meerten New High portfolio for negative price momentum.


Barchart sell signals:
  • 100% Barchart short term technical sell signal
  • Trend Spotter sell signal
  • Below its 20 and 50 day moving averages
  • Lost 5.62% from its recent high
  • Relative Strength Index 41.35% and falling

Barchart Morning Call 5/31

Barchart Morning Call
Overnight Developments
  • Global stocks are higher with the European Euro Stoxx 50 up +0.90% and June S&Ps up +12.30 points. The dollar slumped to a 2-1/2 week low and Treasuries are weaker, while commodities rose with crude at a 2-week high and copper and gold at 3-week highs. Jean-Claude Juncker, leader of the Euro-Zone finance ministers, said in Paris yesterday that EU leaders will decide on a new aid package for Greece by the end of June and that EU officials have ruled out a "total restructuring" of Greece's debt, which sent the yields on Greek government bonds tumbling 30 bp and boosted the euro to a 3-week high against the dollar. The WSJ also reported that Germany may stop demanding an early rescheduling of bonds for Greece so the nation can get a new package of loans. A rally in Greek bank stocks led the rally in European equity prices, with Alpha Bank SA and EFG Eurobank Ergasias SA up over 5%. May German unemployment -8,000 to 2.97 million. its 23rd straight monthly decline, while the unemployment rate fell -0.1 to 7.0%, the lowest since records for a reunified Germany began in 1991. Another boost to European stocks was the May Euro-Zone CPI estimate which slowed to a +2.7% y/y pace, weaker than the +2.8% y/y increase expected, and eases pressure on the ECB for further interest rate increases.
  • The Asian stock markets today closed higher with Japan up +1.99%, Hong Kong +2.16%, China +1.59%, Taiwan +1.87%, Australia +0.87%, Singapore +0.63%, South Korea +2.33%, India +1.49%. Japanese stocks rallied as the yen weakened against the dollar, lifting exporters, and after a Trade Ministry survey of Japanese manufacturers said they plan to increase factory output 8% this month and a further 7.7% in June, which would confirm that Japanese factory production is coming back online to pre-quake levels. Japanese stocks gained even after Moody's Investors Service put Japan's debt rating on review for a downgrade, citing faltering growth prospects and "a weak policy response" that may hinder government efforts to cut the nation's debt burden. Separately, Apr Japan industrial production rose +1.0% m/m, half of market expectations for a +2.0% m/m increase, while Japan's Apr jobless rate rose +0.1 to 4.7%. China's Shanghai Stock Index closed higher after hte Apr China leading index rose to 102.11, its highest level in 6 months.
Overnight U.S. Stock News
  • June S&Ps this morning are trading up +12.30 points on Greek aid optimism. The US stock market last Friday moved higher after G-8 leaders said the global economy is strengthening along with an unexpected increase in US consumer confidence: Dow Jones +0.31%, S&P 500 +0.41%, Nasdaq Composite +0.50%. Bullish factors for stocks included (1) the statement from G-8 leaders meeting in France that "the global recovery is gaining strength and is becoming more self-sustained," which will pave the way for reductions in debt, (2) the unexpected increase in May US University of Michigan consumer confidence (+1.9 to 74.3 versus expectations of unchanged at 72.4), and (3) a rally in financial stocks on reduced European debt concerns after ECB Council member Wellink said he?s "fully confident" Greece will meet conditions to receive its 3.3 billion-euro ($4.7 billion) aid payment by the IMF next month.
  • Bearish factors included (1) the weaker-than-expected Apr US personal spending (+0.4% versus expectations of +0.5%), and (2) the plunge in Apr US pending home sales (-11.6% m/m versus expectations of -1.0% m/m).
  • Goldman Sachs (GS) climbed 1.0% in pre-market trading after JPMorgan Chase upgraded the stock to "overweight" from "neutral."
  • Alcoa (AA) rose 1.3% in pre-market trading after industrial metals prices rose in overnight trade, with copper climbing to a 3-week high.
Today's Market Focus
  • June 10-year T-notes this morning are down -12 ticks as global equity markets strenghten. T-note prices last Friday shook off early losses and moved higher on concern the economy is slowing along with increased safe-haven demand from Europe's debt crisis: TYM11 +2.5, FVM11 +1.2, EDU11 +1.0. Jun T-notes rose to a 5-1/2 month nearest-futures high and the 10-year T-note yield slipped to a 5-1/2 month low of 3.05%. Bullish factors included (1) the weaker-than-expected Apr US personal spending (+0.4% versus expectations of +0.5%), (2) the plunge in Apr US pending home sales (-11.6% m/m versus expectations of -1.0% m/m), and (3) increased safe-haven demand for Treasuries on concern that Greece may not receive additional bailout funds and default on its debt after Greek Prime Minister Papandreou failed to secure support from the country's main opposition parties for new austerity measures. Bearish factors included (1) the unexpected increase in May US University of Michigan consumer confidence (+1.9 to 74.3 versus expectations of unchanged at 72.4), and (2) reduced safe-haven demand for Treasuries after the statement from G-8 leaders meeting in France that "the global recovery is gaining strength and is becoming more self-sustained," which will pave the way for reductions in debt.
  • The dollar index this morning is lower and at a 2-1/2 week low with the dollar/yen +0.64 yen and the euro/dollar +1.19 cents. The dollar index last Friday plunged to a 2-week low as weaker-than-expected data on US consumer spending and home sales suggests the Fed will lag behind other central banks in raising interest rates: Dollar Index -0.595, USDJPY -0.490, EURUSD +0.01583. Bearish factors included (1) the weaker-than-expected economic data on Apr US personal spending and Apr pending home sales, which may prompt he Fed into maintaining its overly easy monetary policy, and (2) euro strength after ECB Council member Wellink said he?s "fully confident" Greece will meet conditions to receive its 3.3 billion-euro ($4.7 billion) aid payment by the IMF next month. Bullish factors included (1) the larger-than-expected decline in the May Euro-Zone economic confidence which fell to a 7-month low and is euro negative, and (2) the unexpected increase in the May US University of Michigan consumer confidence, which is dollar supportive.
  • July crude oil prices this morning are trading up +$1.61 barrel and July gasoline is +2.17 cents per gallon, both at 2-week highs. Crude oil and gasoline prices last Friday finished higher as a weak dollar and a statement from the G-8 saying the global economy is strengthening offset weaker-than-expected US economic data: CLN11 +$0.36, RBN11 +2.39. Jul gasoline rallied to a 2-week high. Bullish factors included (1) the fall in the dollar index to a 2-week low, which boosts investment demand in commodities, (2) the statement from the G-8 leaders meeting in France that the global economy is strengthening, which may lift global energy demand, and (3) strength in gasoline after a power blackout shut 3 refineries in Texas City, Texas. Bearish factors included (1) the weaker-than-expected Apr US personal spending and Apr pending home sales, which signals economic weakness that may lead to reduced fuel demand, and (2) the prediction from JPMorgan Chase that OPEC will raise oil-output quotas next month as the group seeks to "assuage" pressure on consumer nations to release emergency stockpiles.
Today's U.S. Earnings Reports Earnings reports (confirmed releases, sorted by mkt cap) PVH-Phillips-Van Heusen (BEST earnings consensus $1.16), GMLP-Golar LNG Partners LP (0.40), CRIC-China Real Estate Information (0.04), EJ-E-House China Holdings (0.09), LGF-Lions Gate Entertainment (0.20).
Global Financial Calendar
Tuesday 5/31/11
United States
0900 ET Mar S&P/CaseShiller composite-20 home price index expected -0.2% m/m and -3.4% y/y, Feb -0.2% m/m and 3.3% y/y. Q1 S&P CaseShiller composite-20 home price index, Q4 -4.1% y/y.
0945 ET May Chicago purchasing managers index expected -5.3 to 62.3, Apr -3.0 to 67.6.
1000 ET May consumer confidence expected +1.1 to 66.5, Apr +1.6 to 65.4.
1100 ET USDA weekly grain export inspections.
1130 ET Weekly 3-mo and 6-mo T-bill auctions.
Japan
0000 ET Apr Japan vehicle production, Mar -57.3% y/y.
0100 ET Apr Japan construction orders, Mar -11.0% y/y.
0100 ET Apr Japan housing starts expected -3.1% y/y, Mar -2.4% y/y.
Germany
0200 ET Apr German retail sales expected +1.8% m/m and +1.5% y/y, Mar -2.7% m/m and -3.5% y/y.
0355 ET May German unemployment change expected -30,000, Apr -37,000. May unemployment rate expected -0.1 to 7.0%, Apr unchanged at 7.1%.
France
0245 ET Apr French consumer spending expected unchanged m/m and +4.4% y/y, Mar -0.7% m/m and +2.6% y/y.
0245 ET Apr French producer prices expected +0.8% m/m and +6.4% y/y, Mar +0.9% m/m and +6.6% y/y.
Euro-Zone
0500 ET Apr Euro-Zone unemployment rate expected unchanged at 9.9%, Mar unchanged at 9.9%.
0500 ET May Euro-Zone CPI estimate expected +2.8% y/y, Apr +2.8% y/y.
1200 ET ECB Council member Ewald Nowotny speaks at an event in Vienna.
Canada
0830 ET Apr Canada industrial product prices expected +0.7% m/m, Mar +0.9% m/m.
0830 ET Apr Canada raw materials price index expected +3.5% m/m, Mar +5.7% m/m.
0900 ET Bank of Canada announces interest rate decision (expected no change to the 1.00% benchmark rate).
CHI
2100 ET May China PMI manufacturing expected -1.3 to 51.6, Apr -0.5 to 52.9.

Barchart.com provides Financial Quotes, Charts and Technical Analysis for Stock and Commodity Traders.

Master Card - MA - Barchart Chart of the Day

Barchart.com's Chart of the Day - MasterCard (MA)
Related Stocks
MA - Mastercard Inc.
Sym Last Chg Pct
MA 285.24 +3.14 +1.11%
The "Chart of the Day" is MasterCard (MA), which showed up on Friday's list of stocks that had a new "Buy" signal from the Barchart "TrendSpotter" trading system. MasterCard on Friday rallied by 1.11% and posted a new 1-month high of 286.32. A rally above the 3-year high of $286.80 posted on May 3 would be a particularly bullish technical development. In recent news on the stock, Google on May 26 announced that its Google Wallet phone payment application includes Citigroup, MasterCard and Sprint and that there are 20,000 merchants "ready to go." JP Morgan on May 4 reiterated its Overweight rating on MasterCard and increased its target to $330 from $285 due to strong Q1 results. Four other investment banks, Credit Suisse, Piper Jaffray, FBR capital and RW Baird on May 3-4 also reiterated their Buy ratings on MasterCard and raised their price targets. MasterCard, with a market cap of $34 billion, is a large financial institution that specializes in credit cards and payment processing.

ma_700
How we found the Chart of the Day:
We found the "Chart of the Day" by scanning the Barchart "Trading Signals" page. That page provides a summary of changes in the Barchart signals. We then clicked on the TrendSpotter "Buy" category to obtain a list of all the stocks for which the Barchart TrendSpotter trading system has just turned to a buy. We then clicked on the "Today's Opinion" column header in order to sort the list with the strongest stocks on top. Further information is available at Barchart Signals Guide help page and at TrendSpotter help page.
Barchart's Opinion trading systems are mostly a Buy and Barchart's daily TrendSpotter trading system is a "Buy." Please note that the Barchart Opinion indicators are updated live during the session every 10 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com web site when you read this report.
  • TrendSpotter: Buy
  • Short-Term Indicators: 80% Buy
  • Medium-Term Indicators: 100% Buy
  • Long-Term Indicators: 100% Buy
  • Overall Average 96% Buy


Barchart links for further information:

Quotes and Charts
Quote
Detailed Quote
Chart

Technical Analysis
Technicals Summary
Trader's Cheat Sheet™

Barchart Opinions
Barchart Opinion
Barchart Snapshot
Trading Strategies

Company Info
Company Profile
Key Statistics
Ratios
Income Statement-Quarterly
Income Statement-Annual
Balance Sheet-Current
Balance Sheet-Annual


Chart of the Day Archive
View Past Chart of the Day Reports