Wednesday, October 29, 2014

BARCHART MORNING CALL 10/29

OVERNIGHT MARKETS AND NEWS
December E-mini S&Ps (ESZ14 -0.08%) this morning are down -0.16% ahead of the FOMC decision later today and European stocks are up +0.16% on better-than-expected earnings results from Total SA an Schneider Electric SE. Asian stocks closed mostly higher: Japan +1.46%, Hong Kong +1.27%, China +1.44%, Taiwan +1.48%, Australia -0.09%, Singapore +0.39%, South Korea +2.19%, India +0.81%. Japanese stocks rallied as the Nikkei Stock Index rose to a 1-1/2 week high after Japan's industrial output last month rose more than expected by the most in 8 months. The Shanghai Stock Index climbed to a 1-1/2 week high after Hong Kong's securities regulator said the preparatory work for a planned trade link with Shanghai had been completed, which boosted optimism that the link between the two exchanges will be launched sooner than expected. Commodity prices are mixed. Dec crude oil (CLZ14 +1.44%) is up +0.98%. Dec gasoline (RBZ14 +1.94%) is up +1.23%. Dec gold (GCZ14 -0.37%) is down -0.15%. Dec copper (HGZ14 -0.03%) is up +0.26% at a 2-week high. Agriculture and livestock prices are higher. The dollar index (DXY00 -0.03%) is unch. EUR/USD (^EURUSD) is up +0.02%. USD/JPY (^USDJPY) is down -0.06%. Dec T-note prices (ZNZ14 -0.04%) are down -2.5 ticks.
Japan Sep industrial production rose +2.7% m/m and +0.6% y/y, stronger than expectations of +2.2% m/m and -0.1% y/y with the +2.7% m/m gain the biggest monthly increase in 8 months.
UK Sep net consumer credit rose +0.9 billion pounds, more than expectations of +0.8 billion pounds.
UK Sep mortgage approvals increased by 61,300, less than expectations of 62,000.
UK Sep M4 money supply fell -0.7% m/m, the biggest decline in 6 months. On a year-over-year basis Sep M4 money supply fell -2.5% y/y, the sixth straight y/y decline and the largest annual decrease in 22 months.
U.S. STOCK PREVIEW
The markets are unanimously expecting the FOMC at its 2-day meeting that ends today to end QE3 with a final $15 billion cut.  The Treasury today will sell $15 billion of 2-year floating rate notes and $35 billion of 5-year T-notes.   Equity conferences during the remainder of this week include:  GTEC (Government Technology Exhibition & Conference) 2014 on Tue-Thu.
OVERNIGHT U.S. STOCK MOVERS
U.S. Steel (X +5.10%) rallied over 5% in after-hours trading after it reported Q3 adjusted EPS of $2.16, well ahead of consensus of $1.17.
Marriott (MAR +2.41%) reported Q3 EPS of 65 cents, higher than consensus of 62 cents.
McKesson (MCK -0.74%) reported Q2 adjusted EPS of $2.79, stronger than consensus of $2.73.
Ameriprise (AMP +1.52%) reported Q3 EPS ex-items of $2.24, well above consensus of $1.96.
Western Digital (WDC +0.14%) reported Q1 adjusted EPS of $2.10, higher than consensus of $2.03.
Wynn Resorts (WYNN +0.86%) reported Q3 adjusted EPS of $1.95, stronger than consensus of $1.84.
Owens-Illinois (OI +4.55%) reported Q3 adjusted EPS of 75 cents, better than consensus of 74 cents.
Edison International (EIX +1.46%) reported Q3 core EPS of $1.52, well ahead of consensus of $1.33.
Anadarko (APC +2.30%) reported Q3 adjusted EPS of $1.16, below consensus of $1.27.
Aflac (AFL +1.34%) rose 3% in after-hours trading after it reported Q3 EPS of $1.51, stronger than consensus of $1.43.
Fiserv (FISV +1.72%) reported Q3 adjusted EPS of 86 cents, higher than consensus of 84 cents.
Total System (TSS +1.53%) reported Q3 adjusted EPS of 56 cents, better than consensus of 52 cents.
Gilead (GILD +0.76%) reported Q3 EPS of $1.84, weaker than consensus of $1.92.
AMC Entertainment (AMC +3.43%) reported Q3 EPS of 8 cents, right on consensus, although Q3 revenue of $633.9 million ws below consensus of $639.89 million.
Facebook (FB +0.61%) reported Q3 EPS of 43 cents, higher than consensus of 40 cents.
Electronic Arts (EA +1.65%) jumped over 6% in after-hours trading after it reported Q2 adjusted EPS of 73 cents, well above consensus of 53 cents, and raised guidance on fiscal 2015 EPS view to $2.05 from $1.85, well ahead of consensus of $1.92.
PriceSmart (PSMT +4.37%) reported Q4 EPS of 73 cents, less than consensus of 74 cents.
MARKET COMMENTS
Dec E-mini S&Ps (ESZ14 -0.08%) this morning are down -3.25 points (-0.16%). The S&P 500 index on Tuesday rose to a 1-month high and closed higher: S&P 500 +1.19%, Dow Jones +1.12%, Nasdaq +1.50%. Bullish factors included (1) the +5.5 point increase in U.S. Oct consumer confidence (Conference Board) to 94.5, stronger than expectations of +1.0 to 87.0 and the highest in 7 years, (2) the unexpected +6 point increase in the Oct Richmond Fed manufacturing index to 20, better than expectations of -3 to 11 and the highest in 3-3/4 years, and (3) strong Q3 stock earnings results with about 79% of reporting S&P 500 companies having beaten earnings estimates.
Dec 10-year T-notes (ZNZ14 -0.04%) this morning are down -2.5 ticks. Dec 10-year T-note futures prices on Tuesday closed lower: TYZ4 -6.00, FVZ4 -3.00. Bearish factors included (1) the larger-than-expected increase in U.S. Oct consumer confidence to a 7-year high, and (2) supply pressures as the Treasury auctions $108 billion of T-notes this week. Losses were contained after Sep durable goods orders and Aug S&P CaseShiller home prices both unexpectedly declined.
The dollar index (DXY00 -0.03%) this morning is unchanged. EUR/USD (^EURUSD) is up +0.0002 (+0.02%). USD/JPY (^USDJPY) is down -0.06 (-0.06%). The dollar index on Tuesday closed lower. Closes: Dollar index -0.087 (-0.10%), EUR/USD +0.00359 (+0.28%), USD/JPY +0.339 (+0.31%). Bearish factors included (1) the unexpected declines in U.S. Sep durable goods orders and Aug S&P CaseShiller home prices, which may prod the Fed into delaying an interest rate hike, and (2) long liquidation pressures in the dollar ahead of the conclusion of the FOMC meeting on Wednesday.
Dec WTI crude oil (CLZ14 +1.44%) this morning is up +80 cents (+0.98%) and Dec gasoline (RBZ14 +1.94%) is up +0.0265 (+1.23%). Dec crude and Dec gasoline on Tuesday closed higher. Closes: CLZ4 +0.42 (+0.52%), RBZ4 +0.0251 (+1.18%). Supportive factors included (1) a weaker dollar, and (2) the increase in Oct U.S. consumer confidence to a 7-year high. Gains were limited on expectations that Wednesday’s weekly EIA report will show a +3.8 million bbl jump in crude oil inventories.
GLOBAL EVENT CALENDAR10/29/2014
US0700 ETWeekly MBA mortgage applications, previous +11.6% with purchase sub-index -4.6% and the refi sub-index +23.3%.
1030 ETEIA Weekly Petroleum Status Report.
1130 ETTreasury auctions $15 billion 2-year floating-rate notes.
1300 ETTreasury auctions $35 billion 5-year T-notes.
1400 ETFOMC meeting announcement: no change expected in fed funds rate target range of zero to 0.25%; QE3 expected to be cut by -$15 billion to zero to end the program.
UK0530 ETUK Sep net consumer credit expected +0.8 billion pounds, Aug +0.9 billion pounds.
0530 ETUK Sep mortgage approvals expected 62,000, Aug 64,200.
0530 ETUK Sep M4 money supply, Aug +0.3% m/m and -1.5% y/y.
U.S. STOCK CALENDAR10/29/2014
Company NameTickerTimeEvent DescriptionPeriodEstimate
WellPoint IncWLP US6:00Q3 2014 Earnings ReleaseQ3 20142.263
TE Connectivity LtdTEL US6:01Q4 2014 Earnings ReleaseQ4 20141
Praxair IncPX US6:02Q3 2014 Earnings ReleaseQ3 20141.622
Eaton Corp PLCETN US6:31Q3 2014 Earnings ReleaseQ3 20141.236
Wisconsin Energy CorpWEC US7:00Q3 2014 Earnings ReleaseQ3 20140.519
Hershey Co/TheHSY US7:00Q3 2014 Earnings ReleaseQ3 20141.081
DENTSPLY International IncXRAY US7:00Q3 2014 Earnings ReleaseQ3 20140.595
Garmin LtdGRMN US7:00Q3 2014 Earnings ReleaseQ3 20140.711
McGraw Hill Financial IncMHFI US7:10Q3 2014 Earnings ReleaseQ3 20140.938
Hess CorpHES US7:30Q3 2014 Earnings ReleaseQ3 20141.068
Automatic Data Processing IncADP US7:30Q1 2015 Earnings ReleaseQ1 20150.601
Southern Co/TheSO US7:30Q3 2014 Earnings ReleaseQ3 20141.071
Waste Management IncWM US7:30Q3 2014 Earnings ReleaseQ3 20140.677
Sealed Air CorpSEE US7:30Q3 2014 Earnings ReleaseQ3 20140.454
Kroger Co/TheKR US7:45Investor Meeting - Day 2Y 2014
Dun & Bradstreet Corp/TheDNB US8:00Q3 2014 Earnings CallQ3 2014
Owens-Illinois IncOI US8:00Q3 2014 Earnings CallQ3 2014
Exelon CorpEXC US8:00Q3 2014 Earnings ReleaseQ3 20140.715
Phillips 66PSX US8:00Q3 2014 Earnings ReleaseQ3 20141.746
Ralph Lauren CorpRL US8:01Q2 2015 Earnings ReleaseQ2 20152.052
WellPoint IncWLP US8:30Q3 2014 Earnings CallQ3 2014
Automatic Data Processing IncADP US8:30Q1 2015 Earnings CallQ1 2015
Sealed Air CorpSEE US8:30Q3 2014 Earnings CallQ3 2014
Express Scripts Holding CoESRX US8:30Q3 2014 Earnings CallQ3 2014
TE Connectivity LtdTEL US8:30Q4 2014 Earnings CallQ4 2014
Hershey Co/TheHSY US8:30Q3 2014 Earnings CallQ3 2014
DENTSPLY International IncXRAY US8:30Q3 2014 Earnings CallQ3 2014
CH Robinson Worldwide IncCHRW US8:30Q3 2014 Earnings CallQ3 2014
McGraw Hill Financial IncMHFI US8:30Q3 2014 Earnings CallQ3 2014
Aflac IncAFL US9:00Q3 2014 Earnings CallQ3 2014
Anadarko Petroleum CorpAPC US9:00Q3 2014 Earnings CallQ3 2014
AGL Resources IncGAS US9:00Q3 2014 Earnings CallQ3 2014
Ralph Lauren CorpRL US9:00Q2 2015 Earnings CallQ2 2015
Gannett Co IncGCI US9:00Acquisition of Cars.com by Gannett Co Inc Call
Goodyear Tire & Rubber Co/TheGT US9:00Q3 2014 Earnings CallQ3 2014
Ameriprise Financial IncAMP US9:00Q3 2014 Earnings CallQ3 2014
Kohl's CorpKSS US9:00Investor MeetingY 2014
Hess CorpHES US10:00Q3 2014 Earnings CallQ3 2014
Marriott International Inc/DEMAR US10:00Q3 2014 Earnings CallQ3 2014
Waste Management IncWM US10:00Q3 2014 Earnings CallQ3 2014
Eaton Corp PLCETN US10:00Q3 2014 Earnings CallQ3 2014
Boston Properties IncBXP US10:00Q3 2014 Earnings CallQ3 2014
Kimco Realty CorpKIM US10:00Q3 2014 Earnings CallQ3 2014
Garmin LtdGRMN US10:30Q3 2014 Earnings CallQ3 2014
Equity ResidentialEQR US11:00Q3 2014 Earnings CallQ3 2014
Exelon CorpEXC US11:00Q3 2014 Earnings CallQ3 2014
Praxair IncPX US11:00Q3 2014 Earnings CallQ3 2014
Newfield Exploration CoNFX US11:00Q3 2014 Earnings CallQ3 2014
Phillips 66PSX US11:00Q3 2014 Earnings CallQ3 2014
Cincinnati Financial CorpCINF US11:00Q3 2014 Earnings CallQ3 2014
Southern Co/TheSO US13:00Q3 2014 Earnings CallQ3 2014
Macerich Co/TheMAC US13:30Q3 2014 Earnings CallQ3 2014
Wisconsin Energy CorpWEC US14:00Q3 2014 Earnings CallQ3 2014
Unum GroupUNM US16:00Q3 2014 Earnings ReleaseQ3 20140.898
CBRE Group IncCBG US16:00Q3 2014 Earnings ReleaseQ3 20140.348
Kraft Foods Group IncKRFT US16:00Q3 2014 Earnings ReleaseQ3 20140.741
F5 Networks IncFFIV US16:05Q4 2014 Earnings ReleaseQ4 20141.481
Allstate Corp/TheALL US16:05Q3 2014 Earnings ReleaseQ3 20141.335
F5 Networks IncFFIV US16:30Q4 2014 Earnings CallQ4 2014
Akamai Technologies IncAKAM US16:30Q3 2014 Earnings CallQ3 2014
Visa IncV US17:00Q4 2014 Earnings CallQ4 2014
CBRE Group IncCBG US17:00Q3 2014 Earnings CallQ3 2014
Kraft Foods Group IncKRFT US17:00Q3 2014 Earnings CallQ3 2014
Murphy Oil CorpMUR USAft-mktQ3 2014 Earnings ReleaseQ3 20140.986
Visa IncV USAft-mktQ4 2014 Earnings ReleaseQ4 20142.097
Noble Corp plcNE USAft-mktQ3 2014 Earnings ReleaseQ3 20140.546
Akamai Technologies IncAKAM USAft-mktQ3 2014 Earnings ReleaseQ3 20140.566
FMC CorpFMC USAft-mktQ3 2014 Earnings ReleaseQ3 20140.96
Williams Cos Inc/TheWMB USAft-mktQ3 2014 Earnings ReleaseQ3 20140.187
Lincoln National CorpLNC USAft-mktQ3 2014 Earnings ReleaseQ3 20141.425
MetLife IncMET USAft-mktQ3 2014 Earnings ReleaseQ3 20141.38
Assurant IncAIZ USAft-mktQ3 2014 Earnings ReleaseQ3 20141.607
Range Resources CorpRRC USAft-mktQ3 2014 Earnings ReleaseQ3 20140.334
Goodyear Tire & Rubber Co/TheGT USQ3 2014 Earnings ReleaseQ3 20140.704
Posted by Jim Van Meerten at
Labels: , , , , , , , , , , , , , , , , , , ,

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)