Thursday, April 24, 2014

BARCHART MORNING CALL 4/24

OVERNIGHT MARKETS AND NEWS
June E-mini S&Ps (ESM14 +0.31%) this morning are up +0.41% and European stocks are up +0.83% at 2-week highs after earnings results from Apple and Facebook beat analysts’ estimates. Another positive for European equities is the unexpected increase in German Apr IFO business confidence. Ukraine troops stepped up an offensive as they entered the eastern Ukraine town of Slovyansk and killed five pro-Russian separatists, while Russian President Putin said the use of force by Ukraine would have consequences. Asian stocks closed mixed: Japan -0.97%, Hong Kong +0.24%, China -0.19%, Taiwan -0.13%, Australia +0.24%, Singapore +0.80%, South Korea -0.05%, India closed for holiday. Commodity prices are mixed. Jun crude oil (CLM14 +0.35%) is up +0.41%. Jun gasoline (RBM14 +0.08%) is up +0.02%. Jun gold (GCM14 -0.81%) is down -0.58%. May copper (HGK14 +0.98%) is up +1.11% at a 1-1/2 month high after LME copper inventories tumbled -1,025 MT to a 17-1/2 month low. Agriculture and livestock prices are mixed. The dollar index (DXY00 -0.05%) is down -0.06%. EUR/USD (^EURUSD) is up +0.04%. USD/JPY (^USDJPY) is down -0.08%. June T-note prices (ZNM14 -0.09%) are down -4.5 ticks.
ECB President Draghi said that any worsening of the medium-term outlook for inflation in the Eurozone "would be the context for a more broad-based asset purchase program."
The ECB reported that excess liquidity in the Eurozone financial system today declined to 92.9 billion euros, the lowest level since December, 2011. This may increase pressure on the ECB to expand its stimulus measures.
The German Apr IFO business climate unexpectedly rose +0.5 to 111.2, better than expectations of -0.3 to 110.4. Apr IFO current assessment rose +0.1 to 115.3, less than expectations of +0.4 to 115.6 but still the highest in 2 years. Apr IFO expectations unexpectedly rose +0.9 to 107.3, better than expectations of -0.6 to 105.8.
UK Apr CBI reported sales jumped +17 to 30, much better than expectations of +4 to 17
The Japan Mar corporate services price index rose +0.7% y/y, right on expectations.
U.S. STOCK PREVIEW
Today’s weekly initial unemployment claims report is expected to show an increase of +11,000 to 315,000, adding to last week’s increase of +2,000 to 304,000. Meanwhile, continuing claims are expected to show an increase of +6,000 to 2.745 million after last week’s decline of -11,000 to 2.739 million. Today’s March durable goods orders report is expected to be solid with a headline increase of +2.0% and a +0.6% increase ex-transportation. That would follow the Feb report of +2.2% and +0.1% ex-transportation. The Treasury today will sell $29 billion of 7-year T-notes, concluding this week’s $96 billion T-note package.
There are 64 of the S&P 500 companies that report earnings today. Notable reports include Microsoft (consensus 0.63), Amazon ($0.23), Visa (2.18), UPS (1.08), Caterpillar (1.23), Starbucks (0.56), Verizon (0.87), Time Warner (1.67), GM (0.04), Nasdaq (0.71). There are no equity conferences during the remainder of this week.


OVERNIGHT U.S. STOCK MOVERS
Aetna (AET +0.29%) reported Q1 EPS of $1.98, well above consensus of $1.55.
Time Warner Cable (TWC +1.04%) reported Q1 EPS of $1.78, higher than consensus of $1.67.
Texas Instruments (TXN unch) reported Q1 EPS with items of 44 cents, higher than consensus of 41 cents.
Lam Research (LRCX unch) reported Q3 adjusted EPS of $1.26, better than consensus of $1.17.
Apple (AAPL -1.31%) jumped over 7% in after-hours trading after it reported Q2 EPS of $11.62, well above consensus of $10.18, and announced a 7-for-1 stock split.
Cheesecake Factory (CAKE -2.50%) reported Q1 adjusted EPS of 43 cents, below consensus of 49 cents, and then lowered guidance on fiscal 2014 EPS to $2.24-$2.33, below consensus of $2.36.
Flowserve (FLS -0.74%) reported Q1 EPS of 78 cents, better than consensus of 75 cents.
E-Trade (ETFC unch) reported Q1 EPS of 33 cents, higher than consensus of 23 cents.
Assurant (AIZ +0.36%) reported Q1 adjusted EPS of $1.68, stronger than consensus of $1.54.
Safeway (SWY -0.21%) reported Q1 EPS of 6 cents, well below consensus of 18 cents.
Chicago Bridge & Iron (CBI -0.88%) reported Q1 adjusted EPS of 87 cents, weaker than consensus of $1.10.
LSI Corporation (LSI +0.09%) reported Q1 EPS of 17 cents, better than consensus of 15 cents.
United Stationers (USTR +0.34%) reported Q1 adjusted EPS of 56 cents, weaker than consensus of 57 cents.
Stryker (SYK -0.44%) reported Q1 adjusted EPS of $1.06, below consensus of $1.08.
Facebook (FB -2.65%) rose over 5% in pre-market trading after it reported Q1 EPS of 34 cents, well above consensus of 24 cents.
Qualcomm (QCOM unch) reported Q2 adjusted EPS of $1.31, better than consensus of $1.22, and raised guidance on fiscal 2014 adjusted EPS view to $5.05-$5.25 from $5.00-$5.20.
MARKET COMMENTS
June E-mini S&Ps (ESM14 +0.31%) this morning are up +7.75 points (+0.41%) at a 2-week high. The S&P 500 index on Wednesday closed lower. Bearish factors included (1) the unexpected -14.5% slide in U.S. Mar new home sales to an 8-month low of 384,000, weaker than expectations of a +2.3% increase to 450,000, and (2) concern over Chinese economic growth after the China Apr HSBC manufacturing PMI rose +0.3 to 48.3, the fourth month that manufacturing activity in China has contracted. Closes: S&P 500 -0.22%, Dow Jones -0.08%, Nasdaq -0.88%.
Jun 10-year T-notes (ZNM14 -0.09%) this morning are down -4.5 ticks. Jun 10-year T-note futures prices on Wednesday closed higher. Bullish factors included (1) the unexpected drop in U.S. Mar new home sales to the lowest in 8 months, and (2) increased safe-haven demand for T-notes on concern that tensions in Ukraine may escalate after Ukraine's First Deputy Prime Minister said that the country's security forces are seeking to eliminate all pro-Russian militias operating in the eastern part of the country. Closes: TYM4 +10.50, FVM4 +6.00.
The dollar index (DXY00 -0.05%) this morning is down -0.048 (-0.06%). EUR/USD (^EURUSD) is up +0.0005 (+0.04%). USD/JPY (^USDJPY) is down -0.08 (-0.08%). The dollar index on Wednesday closed lower. Negative factors included (1) the unexpected slide in U.S. Mar new home sales to the lowest in 8 months, and (2) strength in EUR/USD after the Eurozone Apr Markit composite PMI unexpectedly rose +0.9 to 54.0, better than expectations of -0.1 to 53.0 and the fastest pace of expansion in 2-3/4 years. Closes: Dollar index -0.041 (-0.05%), EUR/USD +0.00117 (+0.08%), USD/JPY -0.077 (-0.08%).
Jun WTI crude oil (CLM14 +0.35%) this morning is up +42 cents (+0.41%) and Jun gasoline (RBM14 +0.08%) is up +0.0006 (+0.02%). Jun crude and gasoline prices on Wednesday closed lower with Jun crude oil at a 2-week low. Bearish factors included (1) the +3.524 million bbl increase in weekly EIA crude inventories to 397.659 million bbl, the most since EIA data began in 1982, and (2) the +0.7% increase in U.S. crude oil production for the week ended Apr 18 to a 26-yr high of 8.36 million bpd. Declines in crude were limited after crude inventories at Cushing, OK, the delivery point of WTI futures, fell -788,000 bbl to a 4-1/2 yr low of 26.04 million bbl. Closes: CLM4 -0.31 (-0.30%). RBM4 -0.0042 (-0.14%).
GLOBAL EVENT CALENDAR04/24/2014
US0830 ETWeekly initial unemployment claims expected +11,000 to 315,000, previous +2,000 to 304,000. Weekly continuing claims expected +6,000 to 2.745 million, previous -11,000 to 2.739 million.
0830 ETMar durable goods orders expected +2.0% and +0.6% ex transportation, Feb +2.2% and +0.1% ex transportation. March non-defense capital goods orders ex-aircraft expected +1.0%, Feb -1.4%.
0830 ETUSDA weekly Export Sales.
1100 ETTreasury announces amount of 2-year floating-rate notes to be auctioned Apr 29 (previous $13 billion).
1300 ETTreasury auctions $29 billion 7-year T-notes.
GER0400 ETGerman Apr IFO business climate expected -0.3 to 110.4 Mar 110.7. Apr IFO current assessment expected +0.4 to 115.6, Mar 115.2. Apr IFO expectations expected -0.6 to 105.8, Mar 106.4.
EUR0500 ETECB President Mario Draghi speaks at a conference in Amsterdam.
UK0600 ETUK Apr CBI reported sales expected +4 to 17, Mar 13.
JPN1930 ETJapan Mar national CPI expected +1.6% y/y, Feb +1.5% y/y. Mar national CPI ex-fresh food expected +1.4% y/y, Feb +1.3% y/y. Mar national CPI ex food & energy expected +0.7% y/y, Feb +0.8% y/y.
1930 ETJapan Apr Tokyo CPI expected +3.1% y/y, Mar +1.3% y/y. Apr Tokyo CPI ex-fresh food expected +2.8% y/y, Mar +1.0% y/y. Apr Tokyo CPI ex food & energy expected +2.1% y/y, Mar +0.4% y/y.
U.S. STOCK CALENDAR04/24/2014
Company NameTickerTimeEvent DescriptionPeriodEstimate
Mead Johnson Nutrition CoMJN USBef-mktQ1 2014 Earnings ReleaseQ1 20140.913
Noble Energy IncNBL USBef-mktQ1 2014 Earnings ReleaseQ1 20140.748
Nucor CorpNUE USBef-mktQ1 2014 Earnings ReleaseQ1 20140.376
Diamond Offshore Drilling IncDO USBef-mktQ1 2014 Earnings ReleaseQ1 20140.652
Nielsen Holdings NVNLSN USBef-mktQ1 2014 Earnings ReleaseQ1 20140.414
PulteGroup IncPHM USBef-mktQ1 2014 Earnings ReleaseQ1 20140.203
Bemis Co IncBMS USBef-mktQ1 2014 Earnings ReleaseQ1 20140.565
T Rowe Price Group IncTROW USBef-mktQ1 2014 Earnings ReleaseQ1 20141.036
Cabot Oil & Gas CorpCOG USBef-mktQ1 2014 Earnings ReleaseQ1 20140.262
AmerisourceBergen CorpABC USBef-mktQ2 2014 Earnings ReleaseQ2 20141.004
SCANA CorpSCG USBef-mktQ1 2014 Earnings ReleaseQ1 20141.148
Wyndham Worldwide CorpWYN USBef-mktQ1 2014 Earnings ReleaseQ1 20140.745
DR Horton IncDHI USBef-mktQ2 2014 Earnings ReleaseQ2 20140.337
Waste Management IncWM USBef-mktQ1 2014 Earnings ReleaseQ1 20140.446
Coca-Cola Enterprises IncCCE USBef-mktQ1 2014 Earnings ReleaseQ1 20140.441
Stanley Black & Decker IncSWK USBef-mktQ1 2014 Earnings ReleaseQ1 20140.964
Lorillard IncLO USBef-mktQ1 2014 Earnings ReleaseQ1 20140.719
Quest Diagnostics IncDGX USBef-mktQ1 2014 Earnings ReleaseQ1 20140.881
Time Warner Cable IncTWC USBef-mktQ1 2014 Earnings ReleaseQ1 20141.674
Entergy CorpETR USBef-mktQ1 2014 Earnings ReleaseQ1 20142.288
EQT CorpEQT USBef-mktQ1 2014 Earnings ReleaseQ1 20140.887
Peabody Energy CorpBTU USBef-mktQ1 2014 Earnings ReleaseQ1 20140.007
Helmerich & Payne IncHP USBef-mktQ2 2014 Earnings ReleaseQ2 20141.48
Hershey Co/TheHSY USBef-mktQ1 2014 Earnings ReleaseQ1 20141.143
Sigma-Aldrich CorpSIAL USBef-mktQ1 2014 Earnings ReleaseQ1 20141.032
Celgene CorpCELG USBef-mktQ1 2014 Earnings ReleaseQ1 20141.649
General Motors CoGM USBef-mktQ1 2014 Earnings ReleaseQ1 20140.041
Delphi Automotive PLCDLPH USBef-mktQ1 2014 Earnings ReleaseQ1 20141.087
Eli Lilly & CoLLY USBef-mktQ1 2014 Earnings ReleaseQ1 20140.705
Starwood Hotels & Resorts Worldwide IncHOT US6:00Q1 2014 Earnings ReleaseQ1 20140.562
Aetna IncAET US6:00Q1 2014 Earnings ReleaseQ1 20141.552
Alexion Pharmaceuticals IncALXN US6:30Q1 2014 Earnings ReleaseQ1 20141.264
Southwest Airlines CoLUV US6:30Q1 2014 Earnings ReleaseQ1 20140.165
Altria Group IncMO US7:00Q1 2014 Earnings ReleaseQ1 20140.568
Raytheon CoRTN US7:00Q1 2014 Earnings ReleaseQ1 20141.766
NASDAQ OMX Group Inc/TheNDAQ US7:00Q1 2014 Earnings ReleaseQ1 20140.711
3M CoMMM US7:30Q1 2014 Earnings ReleaseQ1 20141.796
Zimmer Holdings IncZMH US7:30Q1 2014 Earnings ReleaseQ1 20141.467
Verizon Communications IncVZ US7:30Q1 2014 Earnings ReleaseQ1 20140.869
Caterpillar IncCAT US7:30Q1 2014 Earnings ReleaseQ1 20141.23
Cameron International CorpCAM US7:30Q1 2014 Earnings ReleaseQ1 20140.715
United Parcel Service IncUPS US7:45Q1 2014 Earnings ReleaseQ1 20141.08
Zimmer Holdings IncZMH US8:00Q1 2014 Earnings CallQ1 2014
Stanley Black & Decker IncSWK US8:00Q1 2014 Earnings CallQ1 2014
Freeport-McMoRan Copper & Gold IncFCX US8:00Q1 2014 Earnings ReleaseQ1 20140.42
NASDAQ OMX Group Inc/TheNDAQ US8:00Q1 2014 Earnings CallQ1 2014
Assurant IncAIZ US8:00Q1 2014 Earnings CallQ1 2014
Pfizer IncPFE US8:30Annual General MeetingY 2014
Nielsen Holdings NVNLSN US8:30Q1 2014 Earnings CallQ1 2014
PulteGroup IncPHM US8:30Q1 2014 Earnings CallQ1 2014
Verizon Communications IncVZ US8:30Q1 2014 Earnings CallQ1 2014
Wyndham Worldwide CorpWYN US8:30Q1 2014 Earnings CallQ1 2014
CMS Energy CorpCMS US8:30Q1 2014 Earnings ReleaseQ1 20140.724
Quest Diagnostics IncDGX US8:30Q1 2014 Earnings CallQ1 2014
Time Warner Cable IncTWC US8:30Q1 2014 Earnings CallQ1 2014
Equifax IncEFX US8:30Q1 2014 Earnings CallQ1 2014
Hershey Co/TheHSY US8:30Q1 2014 Earnings CallQ1 2014
United Parcel Service IncUPS US8:30Q1 2014 Earnings CallQ1 2014
Aetna IncAET US8:30Q1 2014 Earnings CallQ1 2014
3M CoMMM US9:00Q1 2014 Earnings CallQ1 2014
Altria Group IncMO US9:00Q1 2014 Earnings CallQ1 2014
Raytheon CoRTN US9:00Q1 2014 Earnings CallQ1 2014
CMS Energy CorpCMS US9:00Q1 2014 Earnings CallQ1 2014
Celgene CorpCELG US9:00Q1 2014 Earnings CallQ1 2014
Delphi Automotive PLCDLPH US9:00Q1 2014 Earnings CallQ1 2014
Eli Lilly & CoLLY US9:00Q1 2014 Earnings CallQ1 2014
Mead Johnson Nutrition CoMJN US9:30Q1 2014 Earnings CallQ1 2014
Cabot Oil & Gas CorpCOG US9:30Q1 2014 Earnings CallQ1 2014
Cameron International CorpCAM US9:30Q1 2014 Earnings CallQ1 2014
Noble Energy IncNBL US10:00Q1 2014 Earnings CallQ1 2014
Diamond Offshore Drilling IncDO US10:00Q1 2014 Earnings CallQ1 2014
Bemis Co IncBMS US10:00Q1 2014 Earnings CallQ1 2014
T Rowe Price Group IncTROW US10:00Annual General MeetingY 2014
Regions Financial CorpRF US10:00Annual General MeetingY 2014
Caterpillar IncCAT US10:00Q1 2014 Earnings CallQ1 2014
Alexion Pharmaceuticals IncALXN US10:00Q1 2014 Earnings CallQ1 2014
DR Horton IncDHI US10:00Q2 2014 Earnings CallQ2 2014
Waste Management IncWM US10:00Q1 2014 Earnings CallQ1 2014
Coca-Cola Enterprises IncCCE US10:00Q1 2014 Earnings CallQ1 2014
Freeport-McMoRan Copper & Gold IncFCX US10:00Q1 2014 Earnings CallQ1 2014
CenterPoint Energy IncCNP US10:00Annual General MeetingY 2014
General Motors CoGM US10:00Q1 2014 Earnings CallQ1 2014
Johnson & JohnsonJNJ US10:00Annual General MeetingY 2014
Crown Castle International CorpCCI US10:30Q1 2014 Earnings CallQ1 2014
EQT CorpEQT US10:30Q1 2014 Earnings CallQ1 2014
Starwood Hotels & Resorts Worldwide IncHOT US10:30Q1 2014 Earnings CallQ1 2014
Broadcom CorpBRCM USAft-mktQ1 2014 Earnings ReleaseQ1 20140.457
Newmont Mining CorpNEM USAft-mktQ1 2014 Earnings ReleaseQ1 20140.194
Republic Services IncRSG USAft-mktQ1 2014 Earnings ReleaseQ1 20140.444
Visa IncV USAft-mktQ2 2014 Earnings ReleaseQ2 20142.181
Chubb Corp/TheCB USAft-mktQ1 2014 Earnings ReleaseQ1 20141.56
Amazon.com IncAMZN USAft-mktQ1 2014 Earnings ReleaseQ1 20140.228
Stericycle IncSRCL USAft-mktQ1 2014 Earnings ReleaseQ1 20140.987
PerkinElmer IncPKI USAft-mktQ1 2014 Earnings ReleaseQ1 20140.437
Starbucks CorpSBUX USAft-mktQ2 2014 Earnings ReleaseQ2 20140.557
Microsoft CorpMSFT USAft-mktQ3 2014 Earnings ReleaseQ3 20140.63
Cerner CorpCERN USAft-mktQ1 2014 Earnings ReleaseQ1 20140.371
Cincinnati Financial CorpCINF USAft-mktQ1 2014 Earnings ReleaseQ1 20140.544
Leggett & Platt IncLEG USAft-mktQ1 2014 Earnings ReleaseQ1 20140.378
Masco CorpMAS USAft-mktQ1 2014 Earnings ReleaseQ1 20140.175
Baker Hughes IncBHI USAnnual General Meeting
SCANA CorpSCG USAnnual General Meeting
Edison InternationalEIX USAnnual General Meeting
Snap-on IncSNA USAnnual General Meeting
Intuitive Surgical IncISRG USAnnual General Meeting
Ameren CorpAEE USAnnual General Meeting
Posted by Jim Van Meerten at
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