Thursday, May 7, 2015

BARACHART MORNING CALL 5/7

OVERNIGHT MARKETS AND NEWS
June E-mini S&Ps (ESM15 -0.23%) this morning are down -0.54% at a 1-month low and European stocks are down -1.35% at a 2-1/2 month low amid carry-over selling from Wednesday's rout after Fed Chair Yellen said equity market valuations are high. The slide in global government bond markets continued as well after Fed Chair Yellen said that long-term rates are low and could jump when the Fed begins to raise interest rates. The German 10-year bund yield climbed to a 4-3/4 month high of .777% and the U.S. 10-year T-note yield rose to a 4-3/4 month high of 2.31%. On the positive side, Greece's ASE Stock Index is up +2.39% as bank stocks rose after the ECB boosted emergency funding to Greece's central bank. The yield on the Greek 10-year bond fell -33 bp to 10.90% after the ECB raised the cap on Emergency Liquidity Assistance to the Greek central bank by 2 billion euros to 78.9 billion euros. Asian stocks closed lower: Japan -1.23%, Hong Kong -1.27%, China -2.77%, Taiwan -1.16%, Australia -0.82%, Singapore -0.78%, South Korea -0.59%, India -0.44%. China's Shanghai Composite slid to a 3-week low after Morgan Stanley downgraded Chinese stocks for the first time in 7 years to 'Equalweight' from 'Overweight,' citing the weakest corporate profits since 2009.
Commodity prices are mixed. Jun crude oil (CLM15 +0.13%) is down -0.03% and Jun gasoline (RBM15 -0.27%) is down -0.39%. Metals prices are mixed. Jun gold (GCM15 -0.42%) is down -0.60%. Jul copper (HGN15 +0.12%) is up +0.29%. Agriculture prices are mixed.
The dollar index (DXY00 +0.10%) is up +0.02%. EUR/USD (^EURUSD) is down -0.15%. USD/JPY (^USDJPY) is down -0.28%.

Jun T-note prices (ZNM15 +0.11%) are down -5.5 ticks at a 1-3/4 month low on negative carry-over from a slide in global bond markets. The yield on the 10-year Germany bund jumped to a 4-3/4 month high on .777% and has surged over 60 bp in the past week.
According to two officials who spoke on conditions of anonymity, ECB officials want progress at Monday's meeting of Eurozone finance ministers with Greece in reaching an agreement with international creditors or they will consider tightening Greek banks' access to emergency liquidity. One official said that are prepared to raise haircuts, the discounts imposed on collateral pledged by Greek banks in return for funding, to levels seen last year.
U.S. STOCK PREVIEW
Key U.S. reports today include: (1) Apr Challenger job cuts (Mar was +6.4% y/y), (2) weekly initial unemployment claims (expected +16,000 to 278,000 after last week's -34,000 to 262,000) and continuing claims (expected +17,000 to 2.270 million after last week's -74,000 to 2.253 million), and (3) Mar consumer credit (expected +$15.800 billion after Feb's +$15.516 billion).
There are 17 of the S&P 500 companies that report earnings today with notable reports including: Priceline (consensus $7.74), NVIDIA (0.34), CA (0.50), Monster Beverage (0.68), CBS (0.75), Molson Coors Brewing (0.68).
U.S. IPO's scheduled to price today include: International Market Centers (IMC), Bojangles Inc (BOJA), Anterios (ANTE), NephroGenex (NRX), Hemishere Media Group (HMTV), Aldeyra Therapeutics (ALDX).
Equity conferences during the remainder of this week include: Baird Growth Stock Conference on Tue-Thu, Deutsche Bank Health Care Conference on Wed-Thu, ICI General Membership Meeting on Wed-Thu, Citi Car of the Future Conference on Thu, Mitsubishi UFJ Securities Oil & Gas Conference on Thu, and RBC Capital Markets Mobile & Cloud Networking Investor Day on Thu.
OVERNIGHT U.S. STOCK MOVERS
Sunoco (SXL -0.85%) reported a Q1 EPS loss with items of -10 cents, much weaker than consensus of 40 cents.
Children's Place (PLCE +7.78%) was upgraded to 'Neutral' from 'Sell' at Goldman Sachs.
Energy Transfer Equity (ETE -1.90%) reported Q1 EPS of 52 cents, well below consensus of 70 cents.
General Cable (BGC -0.92%) reported Q1 adjusted EPS of 35 cents, much better than consensus for a -13 cent loss.
Babcock & Wilcox (BWC +0.44%) reported Q1 adjusted EPS of 47 cents, higher than consensus of 43 cents.
Transocean (RIG +0.05%) reported Q1 adjusted EPS of $1.10, well above consensus of 60 cents.
Chesapeake Energy (CHK -7.19%) was downgraded to 'Neutral' from 'Buy' at SunTrust.
Pioneer Natural Resources (PXD -1.93%) was upgraded to 'Buy' from 'Neutral' at SunTrust with a price target of $190.
Tesla (TSLA -1.08%) rose nearly 2% in pre-market trading after it reported a Q1 EPS loss of -36 cents, a smaller loss than consensus of-50 cents.
Activision Blizzard (ATVI +2.16%) reported Q1 EPS of 16 cents, more than double consensus of 7 cents.
Prudential (PRU +0.36%) reported Q1 adjusted EPS of $2.79, well above consensus of $2.38.
MetLife (MET -0.63%) reported Q1 operating EPS of $1.44, above consensus of $1.41, but Q1 operating revenue of $17.03 billion was less than consensus of $17.53 billion.
Whole Foods Market (WFM +0.40%) slid 12% in after-hours trading after it reported Q2 EPS of 44 cents, higher than consensus of 43 cents, although Q2 revenue of $3.65 billion was below consensus of $3.70 billion.
21st Century Fox (FOXA -0.71%) reported Q3 EPS of 47 cents, above consensus of 39 cents.
Keurig Green Mountain (GMCR -1.75%) fell 12% in after-hours trading after it reported Q2 EPS of $1.03, below consensus of $1.05.
MARKET COMMENTS
June E-mini S&Ps (ESM15 -0.23%) this morning are down -11.25 points (-0.54%) at a new 1-month low. Wednesday's closes: S&P 500 -0.45%, Dow Jones -0.48%, Nasdaq -0.67%. The S&P 500 on Wednesday sold off to a 1-month low on the weaker than expected +169,000 increase in the ADP employment report and Fed Chair Yellen's comment that stock market valuations are "quite high" and could be a potential source of financial instability.
Jun 10-year T-notes (ZNM15 +0.11%) this morning are down -5.5 ticks to a new 1-3/4 month low. Wednesday's closes: TYM5 -10.50, FVM5 -4.50. Jun T-notes on Wednesday fell to a 1-3/4 month low on carry-over weakness from the plunge in German bund prices to a 4-month low and on Fed Chair Yellen's comment that long-term interest rates are low and could jump when they Fed begins to raise interest rates.
The dollar index (DXY00 +0.10%) this morning is up +0.019 (+0.02%). EUR/USD (^EURUSD) is down -0.0017 (-0.15%). USD/JPY (^USDJPY) is down -0.33 (-0.28%). Wednesday's closes: Dollar Index -0.989 (-1.04%), EUR/USD +0.0162 (+1.45%), USD/JPY -0.388 (-0.32%). The dollar index on Wednesday fell sharply to a 2-1/2 month low on the weaker-than-expected Apr ADP employment report, which may delay a Fed rate hike. Meanwhile, EUR/USD climbed to a 2-1/4 month high after the Eurozone Apr Markit composite PMI was revised higher by +0.4 to 53.9.
Jun WTI crude oil (CLM15 +0.13%) this morning is down -2 cents (-0.03%) and Jun gasoline (RBM15 -0.27%) is down -0.0079 (-0.39%). Wednesday's closes: CLM5 +0.53 (+0.88%), RBM5 -0.0380 (-1.84%). Jun crude oil and gasoline prices on Wednesday settled mixed with Jun crude at a 4-3/4 month high. Crude oil prices were boosted by the unexpected -3.88 million bbl decline in EIA crude inventories, the first decline in 17 weeks. In addition, U.S. crude oil production fell by -4,000 bpd, which was the third decline in the past four weeks. Gasoline closed lower after news that U.S. fuel consumption fell to an 11-month low of 18.196 million bpd.
GLOBAL EVENT CALENDAR05/07/2015
US0730 ETApr Challenger job cuts, Mar +6.4% y/y.
0830 ETWeekly initial unemployment claims expected +17,000 to 279,000, previous -34,000 to 262,000. Weekly continuing claims expected +17,000 to 2.270 million, previous -74,000 to 2.253 million.
0830 ETUSDA weekly Export Sales.
1500 ETMar consumer credit expected +$15.800 billion, Feb +$15.516 billion.
GER0200 ETGerman Mar factory orders expected +1.5% m/m and +1.9% y/y, Feb -0.9% m/m and -1.3% y/y.
0330 ETGerman Apr Markit construction PMI, Mar 53.3.
UK0400 ETUK Apr new car registrations, Mar +6.0% y/y.
n/aUK general election.
CHIn/aChina Apr trade balance expected +$39.60 billion, Mar +$3.08 billion. Apr exports expected +1.9% y/y, Mar 15.0% y/y. Apr imports expected -12.2% y/y, Mar -12.7% y/y.
U.S. STOCK CALENDAR05/07/2015
CompanyTickerTimeEvent DescriptionPeriodEstimate
Becton Dickinson and CoBDX USBef-mktQ2 2015 Earnings ReleaseQ2 20151.535
PPL CorpPPL USBef-mktQ1 2015 Earnings ReleaseQ1 20150.684
Molson Coors Brewing CoTAP USBef-mktQ1 2015 Earnings ReleaseQ1 20150.449
Sigma-Aldrich CorpSIAL USBef-mktQ1 2015 Earnings ReleaseQ1 20151.08
Regeneron Pharmaceuticals IncREGN USBef-mktQ1 2015 Earnings ReleaseQ1 20152.682
Ameren CorpAEE USBef-mktQ1 2015 Earnings ReleaseQ1 20150.369
Teradata CorpTDC USBef-mktQ1 2015 Earnings ReleaseQ1 20150.418
Scripps Networks Interactive IncSNI USBef-mktQ1 2015 Earnings ReleaseQ1 20150.919
Priceline Group Inc/ThePCLN US7:00Q1 2015 Earnings ReleaseQ1 20157.742
L Brands IncLB US7:30April 2015 Sales and Revenue Call2015
Priceline Group Inc/ThePCLN US7:30Q1 2015 Earnings CallQ1 2015
Apache CorpAPA US8:00Q1 2015 Earnings ReleaseQ1 2015-0.595
Becton Dickinson and CoBDX US8:00Q2 2015 Earnings CallQ2 2015
United Parcel Service IncUPS US8:00Annual General Meeting
DTE Energy CoDTE US8:00Annual General MeetingY 2015
MetLife IncMET US8:00Q1 2015 Earnings CallQ1 2015
PPL CorpPPL US8:30Q1 2015 Earnings CallQ1 2015
Regeneron Pharmaceuticals IncREGN US8:30Q1 2015 Earnings CallQ1 2015
E*TRADE Financial CorpETFC US8:30Annual General MeetingY 2015
Teradata CorpTDC US8:30Q1 2015 Earnings CallQ1 2015
CVS Health CorpCVS US9:00Annual General MeetingY 2015
Tesoro CorpTSO US9:00Annual General MeetingY 2015
Marathon Oil CorpMRO US9:00Q1 2015 Earnings CallQ1 2015
CF Industries Holdings IncCF US9:00Q1 2015 Earnings CallQ1 2015
Verizon Communications IncVZ US9:30Annual General Meeting
St Jude Medical IncSTJ US9:30Annual General Meeting
Transocean LtdRIG US9:30Q1 2015 Earnings CallQ1 2015
Duke Energy CorpDUK US10:00Annual General MeetingY 2015
Ecolab IncECL US10:00Annual General MeetingY 2015
Kimco Realty CorpKIM US10:00Q1 2015 Earnings CallQ1 2015
Ameren CorpAEE US10:00Q1 2015 Earnings CallQ1 2015
Scripps Networks Interactive IncSNI US10:00Q1 2015 Earnings CallQ1 2015
Archer-Daniels-Midland CoADM US11:00Annual General Meeting
Wisconsin Energy CorpWEC US11:00Annual General Meeting
Molson Coors Brewing CoTAP US11:00Q1 2015 Earnings CallQ1 2015
Prudential Financial IncPRU US11:00Q1 2015 Earnings CallQ1 2015
Eastman Chemical CoEMN US11:30Annual General MeetingY 2015
Molson Coors Brewing CoTAP US13:00Q1 2015 Earnings Call - Follow-up SessionC1 2015
Essex Property Trust IncESS US13:00Q1 2015 Earnings CallQ1 2015
Apache CorpAPA US14:00Q1 2015 Earnings CallQ1 2015
Danaher CorpDHR US15:00Annual General MeetingY 2015
NVIDIA CorpNVDA US16:20Q1 2016 Earnings ReleaseQ1 20160.335
Cerner CorpCERN US16:30Q1 2015 Earnings CallQ1 2015
CBS CorpCBS US16:30Q1 2015 Earnings CallQ1 2015
Microchip Technology IncMCHP US16:30Q4 2015 Earnings CallC1 2015
CA IncCA US17:00Q4 2015 Earnings CallQ4 2015
Monster Beverage CorpMNST US17:00Q1 2015 Earnings CallQ1 2015
NVIDIA CorpNVDA US17:00Q1 2016 Earnings CallQ1 2016
CA IncCA USAft-mktQ4 2015 Earnings ReleaseQ4 20150.498
Cerner CorpCERN USAft-mktQ1 2015 Earnings ReleaseQ1 20150.449
Mohawk Industries IncMHK USAft-mktQ1 2015 Earnings ReleaseQ1 20151.602
Monster Beverage CorpMNST USAft-mktQ1 2015 Earnings ReleaseQ1 20150.684
CBS CorpCBS USAft-mktQ1 2015 Earnings ReleaseQ1 20150.75
Microchip Technology IncMCHP USAft-mktQ4 2015 Earnings ReleaseQ4 20150.666
Corning IncGLW USInvestor MeetingY 2015
Dover CorpDOV USAnnual General Meeting
Kansas City SouthernKSU USAnnual General Meeting
L Brands IncLB USApril 2015 Sales and Revenue Release2015
Tenet Healthcare CorpTHC USAnnual General Meeting
Health Care REIT IncHCN USAnnual General Meeting
CH Robinson Worldwide IncCHRW USAnnual General Meeting
Reynolds American IncRAI USAnnual General Meeting
Assurant IncAIZ USAnnual General Meeting
NRG Energy IncNRG USAnnual General Meeting
Kinder Morgan Inc/DEKMI USAnnual General Meeting

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