Tuesday, January 28th, 2014View Older Reports
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OVERNIGHT MARKETS AND NEWS
March E-mini S&Ps (ESH14 +0.35%) this morning are up +0.48% and European stocks are up +0.73% as equities stabilize following recent losses. Technology stocks were weaker, however, as Apple tumbled -7% in pre-market trading after it projected that revenue in the current quarter may decline for what would be the first quarterly decline in 11 years. Asian stocks closed mixed: Japan -0.17%, Hong Kong -0.07%, China +0.18%, Taiwan closed for holiday, Australia -1.26%, Singapore +0.66%, South Korea +0.3%, India -0.12%. Chinese stocks rose and borrowing costs fell after a troubled trust product was bailed out. Industrial & Commercial Bank of China Ltd. said investors in the high-yield trust, which was issued by China Credit Trust Co. and set up to lend money to a coal miner that subsequently failed, can recoup their funds. India's stocks dropped and the rupee gained after the RBI unexpectedly raised interest rates. Commodity prices are mixed. Mar crude oil (CLH14 +0.44%) is up +0.53%. Mar gasoline (RBH14 +0.30%) is up +0.37%. Feb gold (GCG14 -0.64%) is down -0.71%. March copper (HGH14 +0.12%) is up +0.20%. Agriculture and livestock prices are higher. The dollar index (DXY00 +0.22%) is up +0.21% as the FOMC begins its 2-day meeting today where expectations are for the Fed to taper QE3 by another -$10 billion. EUR/USD (^EURUSD) is down -0.23%. USD/JPY (^USDJPY) is up +0.59%. March T-note prices (ZNH14 -0.04%) are down -3.5 ticks.The Reserve Bank of India (RBI) unexpectedly raised the repurchase rate by 25 bp to 8.00% from 7.75% to fight inflation and boost the rupee. RBI Governor Rajan said "The gravest risk to the value of the rupee is from CPI inflation, which remains elevated close to double digits."
The German Dec import price index was unch m/m and fell -2.3% y/y, weaker than expectations of +0.2% m/m and -2.2% y/y and the twelfth consecutive month that prices have fallen on a year-over-year basis.
UK Q4 GDP rose +0.7% q/q and +2.8% y/y, right on expectations.
The UK Nov index of services climbed +0.4% m/m and +0.8% 3-mo/3-mo, higher than expectations of +0.3% m/m and +0.7% 3-mo/3-mo.
China Dec industrial profits rose +12.2% year-to-date y/y, the smallest increase in 5-months.
U.S. STOCK PREVIEW
The market consensus is that the FOMC at its 2-day meeting that starts today will taper its QE3 program by another $10 billion to $65 billion per month. Today’s Nov S&P/CaseShiller home price index is expected to show an increase of +0.80% m, which would be a bit smaller than the +1.05% increase seen in October. Today’s Jan U.S. consumer confidence index from the Conference Board is expected to show a -0.1 point decline to 78.0, falling back slightly after the +6.1 point surge to 78.1 seen in December. Today’s Dec durable goods orders report is expected to show a solid increase of +1.8% and +0.6% ex-transportation, adding to November’s increases of +3.4% and +1.2% ex-transportation. Today’s Jan Richmond Fed manufacturing index is expected to be unchanged at 13, remaining at 13 for the third straight month. The Treasury today will kick off this week’s $111 billion T-note package by selling $32 billion in 2-year T-notes.There are 23 of the S&P 500 companies that report earnings today. Notable reports include AT&T (consensus $0.51), Comcast (0.68), Ford (0.28), Pfizer (0.52), Yahoo (0.38), Electronic Arts (1.23), Amgen (1.69). Equity conferences this week include: Real World Evidence on Mon-Wed, Stifel Nicolaus Senior Housing and Healthcare Real Estate Conference on Tue, Canadian Power Finance Conference on Tue, and Cloudcast'14 on Thu.
OVERNIGHT U.S. STOCK MOVERS
DR Horton (DHI +0.29%) reported Q1 EPS od 36 cents, stronger than consensus of 30 cents.Corning (GLW +0.05%) reported Q4 EPS of 29 cents, higher than consensus of 28 cents.
Pfizer (PFE -1.43%) reported Q4 EPS of 56 cents, better than consensus of 52 cents.
Ford Motor (F -0.76%) reported Q4 EPS of 31 cents, higher than consensus of 28 cents.
EI du Pont de Nemours (DD +0.45%) reported Q4 EPS of 59 cents, stronger than consensus of 55 cents.
Danaher (DHR -0.04%) reported Q4 EPS of 96 cents, better than consensus of 95 cents.
Comcast (CMCSA +0.17%) climbed 3% in European trading after people familiar with the matter said the company may buy Charter's cable assets in New York City, North Carolina and New England. The sale is contingent upon shareholder approval of Charter's takeover bid for Time Warner Cable.
The New York Times reported that Martin Marietta (MLM -1.48%) will acquire Texas Industries (TXI -4.69%) for $72 per share.
STMicroelectronics (STM +0.79%) reported a Q4 adjusted EPS loss of -1 cent, weaker than consensus of a 4 cent gain.
Rent-A-Center (RCII +0.61%) plunged 13% in after-hours trading after it reported Q4 EPS of 25 cents, well below consensus of 75 cents. and then lowered guidance on fiscal 2014 EPS to $2.30-$2,50, below consensus of $3.20.
Apple (AAPL +0.81%) tumbled 7% in after-hours trading after it reported Q1 EPS of $14.50, well ahead of consensus of$14.09, but then said it sees Q2 revenue of $42 billion-$44 billion, below consensus of $46.05 billion.
Swift Transport (SWFT -4.05%) reported Q4 EPS of 36 cents, higher than consensus of 35 cents.
Sanmina (SANM -2.89%) reported Q1 EPS of 41 cents, better than consensus of 38 cents.
Seagate (STX -0.89%) slid 6% in after-hours trading after it reported Q2 EPS of $1.32, weaker than consensus of $1.38.
MARKET COMMENTS
Mar E-mini S&Ps (ESH14 +0.35%) this morning are up +8.50 points (+0.48%). The S&P 500 on Monday erased an early rally and fell to a 1-1/4 month low to finally close lower. Negative factors for stocks included (1) the -7.0% decline in U.S. Dec new home sales to 414,000, a bigger decline than expectations of -1.9% to 455,000, and (2) concern that the slump in emerging-market currencies will lead to a slowdown in the global economy. Limiting declines in stocks is strong Q4 stock earnings results with 74% of the 125 S&P 500 companies that have reported earnings results thus far beating expectations. Closes: S&P 500 -0.49%, Dow Jones -0.26%, Nasdaq 100 -0.92%.Mar 10-year T-notes (ZNH14 -0.04%) this morning are down -3.5 ticks. Mar 10-year T-note futures prices on Monday settled lower. Weakness in stocks boosted safe-haven demand for T-notes in early trade, but concern the Fed will taper its monthly bond purchases by -$10 billion when it concludes its 2-day FOMC meeting on Wed took T-note prices lower. Closes: TYH4 --8.0, FVH4 -3.25.
The dollar index (DXY00 +0.22%) this morning is up +0.167 (+0.21%). EUR/USD (^EURUSD) is down -0.0031 (-0.23%). USD/JPY (^USDJPY) is up +0.60 (+0.59%). The dollar index on Monday closed slightly higher. EUR/USD fell back on European banking concerns after Italian bank stocks slumped when Banco Poplare, Italy’s fourth biggest bank, announced an unexpected loss and plans for a capital increase, which spurred concern about the quality of assets in Italian banks. USD/JPY recovered from a 1-1/2 month low after the yen weakened when Japan’s Dec exports rose less than expected and after Japan’s Dec trade deficit widened by the most in 11 months. Closes: Dollar index +0.066 (+0.08%), EUR/USD -0.00038 (-0.03%), USD/JPY +0.288 (+0.28%).
Mar WTI crude oil (CLH14 +0.44%) this morning is up +51 cents (+0.53%) and Mar gasoline (RBH14 +0.30%) is up +0.0098 (+0.37%). Mar crude oil and gasoline prices on Monday closed lower on bearish factors that included (1) the slide in the S&P 500 to a 1-1/4 month low, reducing confidence in the economic outlook and energy demand, (2) the larger-than-expected decline in U.S. Dec home sales, which fueled concern the economy will slow, and (3) speculation the Fed will taper QE3 further this week, which may boost the dollar and reduce investment demand in commodities, including crude oil. Closes: CLH4 -0.02 (-0.95%), RBH4 -0.0377 (-1.41%).
GLOBAL EVENT CALENDAR01/28/2014
| US | 0830 ET | Dec durable goods orders expected +1.8% and +0.6% ex transportation, Nov +3.4% and +1.2% ex transportation. Dec non-defense capital goods orders ex-transportation expected +0.3%, Nov +4.1%. |
| 0900 ET | Nov S&P/CaseShiller home price index expected +0.81% m/m and +13.76% y/y, Oct +1.05% m/m and +13.61% y/y. | |
| 1000 ET | Jan U.S. consumer confidence (Conference Board) expected -0.1 to 78.0, Dec +6.1 to 78.1. | |
| 1000 ET | Jan Richmond Fed manufacturing index expected unch at 13, Dec unch at 13. | |
| 1030 ET | FOMC begins 2-day meeting. | |
| 1300 ET | Treasury auctions $32 billion 2-year T-notes. | |
| 2100 ET | President Obama delivers his State of the Union Address. | |
| GER | 0200 ET | German Dec import price index expected +0.2% m/m and -2.2% y/y, Nov +0.1% m/m and -2.9% y/y. |
| UK | 0430 ET | UK Q4 GDP expected +0.7% q/q and +2.8% y/y, Q3 +0.8% q/q and +1.9% y/y. |
| 0430 ET | UK Nov index of services expected +0.3% m/m and +0.7% 3-mo/3-mo, Oct +0.1% m/m and +0.8% 3-mo/3-mo. |
U.S. STOCK CALENDAR01/28/2014
| Company Name | Ticker | Time | Event Description | Period | Estimate |
|---|---|---|---|---|---|
| Pentair Ltd | PNR US | Bef-mkt | Q4 2013 Earnings Release | Q4 2013 | 0.845 |
| Air Products & Chemicals Inc | APD US | Bef-mkt | Q1 2014 Earnings Release | Q1 2014 | 1.333 |
| Nucor Corp | NUE US | Bef-mkt | Q4 2013 Earnings Release | Q4 2013 | 0.404 |
| Pfizer Inc | PFE US | Bef-mkt | Q4 2013 Earnings Release | Q4 2013 | 0.522 |
| T Rowe Price Group Inc | TROW US | Bef-mkt | Q4 2013 Earnings Release | Q4 2013 | 1.034 |
| DR Horton Inc | DHI US | Bef-mkt | Q1 2014 Earnings Release | Q1 2014 | 0.296 |
| Corning Inc | GLW US | Bef-mkt | Q4 2013 Earnings Release | Q4 2013 | 0.275 |
| NextEra Energy Inc | NEE US | Bef-mkt | Q4 2013 Earnings Release | Q4 2013 | 0.965 |
| Danaher Corp | DHR US | 6:00 | Q4 2013 Earnings Release | Q4 2013 | 0.954 |
| EI du Pont de Nemours & Co | DD US | 6:00 | Q4 2013 Earnings Release | Q4 2013 | 0.547 |
| Harris Corp | HRS US | 6:30 | Q2 2014 Earnings Release | Q2 2014 | 1.178 |
| Ford Motor Co | F US | 7:00 | Q4 2013 Earnings Release | Q4 2013 | 0.276 |
| Waters Corp | WAT US | 7:00 | Q4 2013 Earnings Release | Q4 2013 | 1.612 |
| Comcast Corp | CMCSA US | 7:00 | Q4 2013 Earnings Release | Q4 2013 | 0.679 |
| Danaher Corp | DHR US | 8:00 | Q4 2013 Earnings Call | Q4 2013 | |
| Illinois Tool Works Inc | ITW US | 8:00 | Q4 2013 Earnings Release | Q4 2013 | 0.913 |
| Corning Inc | GLW US | 8:30 | Q4 2013 Earnings Call | Q4 2013 | |
| Waters Corp | WAT US | 8:30 | Q4 2013 Earnings Call | Q4 2013 | |
| Comcast Corp | CMCSA US | 8:30 | Q4 2013 Earnings Call | Q4 2013 | |
| Harris Corp | HRS US | 8:30 | Q2 2014 Earnings Call | Q2 2014 | |
| Pentair Ltd | PNR US | 9:00 | Q4 2013 Earnings Call | Q4 2013 | |
| EI du Pont de Nemours & Co | DD US | 9:00 | Q4 2013 Earnings Call | Q4 2013 | |
| Ford Motor Co | F US | 9:00 | Q4 2013 Earnings Call | C4 2013 | |
| NextEra Energy Inc | NEE US | 9:00 | Q4 2013 Earnings Call | Q4 2013 | |
| Air Products & Chemicals Inc | APD US | 10:00 | Q1 2014 Earnings Call | Q1 2014 | |
| Pfizer Inc | PFE US | 10:00 | Q4 2013 Earnings Call | Q4 2013 | |
| DR Horton Inc | DHI US | 10:00 | Q1 2014 Earnings Call | Q1 2014 | |
| Illinois Tool Works Inc | ITW US | 10:00 | Q4 2013 Earnings Call | Q4 2013 | |
| Ford Motor Co | F US | 11:00 | Q4 2013 Earnings Call - Fixed Income | Q4 2013 | |
| Becton Dickinson and Co | BDX US | 13:00 | Annual General Meeting | Y 2014 | |
| Nucor Corp | NUE US | 14:00 | Q4 2013 Earnings Call | Q4 2013 | |
| Monsanto Co | MON US | 14:30 | Annual General Meeting | Y 2014 | |
| Total System Services Inc | TSS US | 16:00 | Q4 2013 Earnings Release | Q4 2013 | 0.473 |
| United States Steel Corp | X US | 16:00 | Q4 2013 Earnings Call | Q4 2013 | |
| AT&T Inc | T US | 16:30 | Q4 2013 Earnings Call | Q4 2013 | |
| Total System Services Inc | TSS US | 17:00 | Q4 2013 Earnings Call | Q4 2013 | |
| Yahoo! Inc | YHOO US | 17:00 | Q4 2013 Earnings Call | Q4 2013 | |
| Electronic Arts Inc | EA US | 17:00 | Q3 2014 Earnings Call | Q3 2014 | |
| Amgen Inc | AMGN US | 17:00 | Q4 2013 Earnings Call | Q4 2013 | |
| Owens-Illinois Inc | OI US | Aft-mkt | Q4 2013 Earnings Release | Q4 2013 | 0.523 |
| AT&T Inc | T US | Aft-mkt | Q4 2013 Earnings Release | Q4 2013 | 0.506 |
| ACE Ltd | ACE US | Aft-mkt | Q4 2013 Earnings Release | Q4 2013 | 2.015 |
| Boston Properties Inc | BXP US | Aft-mkt | Q4 2013 Earnings Release | Q4 2013 | 1.246 |
| Yahoo! Inc | YHOO US | Aft-mkt | Q4 2013 Earnings Release | Q4 2013 | 0.383 |
| Electronic Arts Inc | EA US | Aft-mkt | Q3 2014 Earnings Release | Q3 2014 | 1.231 |
| Amgen Inc | AMGN US | Aft-mkt | Q4 2013 Earnings Release | Q4 2013 | 1.689 |
| Hormel Foods Corp | HRL US | 21:00 | Annual General Meeting | Y 2014 | |
| Verizon Communications Inc | VZ US | Special Meeting | |||
| Hormel Foods Corp | HRL US | Annual General Meeting | |||
| Merck & Co Inc | MRK US | FDA Adcomm, Ragwitek, ragweed pollen allergy, immunotherapy tablet |
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