Monday, May 4, 2015

BARCHART MORNING CALL 5/4

OVERNIGHT MARKETS AND NEWS
June E-mini S&Ps (ESM15 +0.27%) this morning are up +0.23% and European stocks are up +0.83% after a gauge of Eurozone Apr manufacturing activity was revised higher. Comcast is up nearly 3% in pre-market trading after it reported Q1 profit of 79 cents a share, excluding some items, better than consensus of 74 cents. Strength in global stocks undercut government bond prices as the yield on the 10-year German bund rose to a 1-3/4 month high of 0.425%. Asian stocks closed mostly higher: Japan closed for holiday, Hong Kong -0.03%, China +0.87%, Taiwan +0.25%, Australia +0.23%, Singapore -0.13%, South Korea +0.34%, India +1.77%. Chinese stocks received a boost on speculation the government will expand stimulus measures after a gauge of Chinese manufacturing activity for last month was unexpectedly revised lower to its steepest pace of contraction in a year.
Commodity prices are mixed. Jun crude oil (CLM15 +0.66%) is up +0.32% and Jun gasoline (RBM15 +0.55%) is up +0.46% at a 5-1/4 month high. Metals prices are mixed. Jun gold (GCM15 +0.52%) is up +0.61%. Jul copper (HGN15 -0.51%) is down -0.79%. Agriculture prices are mixed.
The dollar index (DXY00 +0.31%) is up +0.28%. EUR/USD (^EURUSD) is down -0.54%. USD/JPY (^USDJPY) is up +0.06%.

Jun T-note prices (ZNM15 -0.10%) are down -3.5 ticks at a 1-1/2 month low on carry-over weakness from a slide in German bund prices to a 1-3/4 month low.
The yield on Greece's 10-year bond moved up from a 1-3/4 month low of 9.88% to over 10.50% after people with knowledge of the matter said that Greece is still far from agreement with its international creditors. They said that gaps remain on issues from fiscal forecasts to labor and pension reforms, 3 days before the ECB's next decision on emergency aid to Greece. Greece is due to make a 200-million euros payment to the IMF this week.
The China Apr HSBC flash manufacturing PMI was revised lower by -0.3 to 48.9 from the previously reported 49.2, weaker than expectations of a +0.2 upward revision to 49.4 and the steepest pace of contraction in a year.
The Eurozone Apr Markit manufacturing PMI was revised upward by +0.1 to 52.0 from the previously reported 51.9.
U.S. STOCK PREVIEW
Key U.S. reports today include: (1) March factory orders (expected +2.0% after Feb's +0.2%), (2) the April New York ISM index (March was -13.1 to 50.0), and (3) a speech by Chicago Fed President Charles Evans about current economic conditions and monetary policy at the Columbus Economic Development Board Annual Meeting in Columbus, Indiana.
There are 16 of the S&P 500 companies that report earnings today with notable reports including: Comcast (consensus $0.74), Dun & Bradstreet (1.23), Tenet Healthcare (0.31), Tyson Foods (0.72), Sysco (0.41), Lowes (0.71).
U.S. IPO's scheduled to price or trade today include: none.
Equity conferences this week include: Barclays Chemical ROC Stars Conference on Tue, Internet & Television Expo on Tue-Wed, Wells Fargo Industrial and Construction Conference on Tue-Wed, Baird Growth Stock Conference on Tue-Thu, Power & Electricity World Asia 2015 on Wed, Sanford C. Bernstein & Co. Energy Conference on Wed, 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
Comcast (CMCSA +1.13%) is up over 2% in pre-market trading after it reported Q1 EPS of 79 cents, above consensus of 74 cents.
Loews (L +0.22%) reported Q1 EPS of 27 cents, well below consensus of 71 cents.
Diamond Offshore Drilling (DO unch) reported Q1 EPS of 50 cents, above consensus of 42 cents.
Tyson Foods (TSN +2.51%) reported Q2 EPS of 77 cents, higher than consensus of 72 cents.
Cognizant Technology Solutions (CTSH +1.02%) reported Q1 EPS of 71 cents, better tgan consensus of 70 cents.
UBS reiterated its 'Buy' rating on Disney (DIS +1.66%) as it raised its pric target on the stock to $125 from $116.
Genuine Parts (GPC +1.80%) was upgraded to 'Buy' from 'Neutral' at Sterne Agee CRT.
Henry Schein (HSIC +1.27%) reported Q1 adjusted EPS of $1.28, better than consensus of $1.27, although Q1 revenue of $2.46 billion was below consensus of $2.54 billion.
Warren Buffett said he bought more shares of Internaatinal Business Machines (IBM +1.39%) in Q1.
Twitter (TWTR -2.87%) was upgraded to 'Hold' from 'Sell' at Stifel.
Buckeye Partners (BPL +0.56%) was upgraded to 'Buy' from 'Hold' at Stifel.
The Athyrium Opportunities Fund reported a 9.9% stake in Pernix Therapeutics (PTX +4.55%) .
Donaldson (DCI +0.88%) lowered guidance on fiscal 2015 EPS to $1.51-$1.61 from $1.65-$1.85, below consensus of $1.74.
MARKET COMMENTS
June E-mini S&Ps (ESM15 +0.27%) this morning are up +4.75 points (+0.23%). Friday's closes: S&P 500 +1.09%, Dow Jones +1.03%, Nasdaq +1.47%. The S&P 500 on Friday closed sharply higher on ideas that Friday's weaker-than-expected April ISM manufacturing index of unchanged at 51.5 (versus expectations of +0.5 to 52.0) will delay a Fed tightening. The broad market also received support from a rally in biotech stocks prompted by a 5% jump in Gilead Sciences on a positive Q1 earnings report.
Jun 10-year T-notes (ZNM15 -0.10%) this morning are down -3.5 ticks at a new 1-1/2 month low. Friday's closes: TYM5 -19.50, FVM5 -9.50. Jun 10-year T-notes on Friday slid to a 1-1/2 month low and closed lower on the recent jump in inflation expectations and on worries that the Fed will still raise interest rates later this year after the FOMC said this week that Q1 economic weakness was due to "transitory" factors.
The dollar index (DXY00 +0.31%) this morning is .up +0.263 (+0.28%) EUR/USD (^EURUSD) is down -0.0060 (-0.54%). USD/JPY (^USDJPY) is up +0.07 (+0.06%). Friday's closes: Dollar Index +0.697 (+0.74%), EUR/USD -0.00295 (-0.26%), USD/JPY +0.789 (+0.66%). The dollar index on Friday closed higher on the rally in the U.S. stock market and on weakness in EUR/USD after Dutch Finance Minister Dijsselboem said it was "too early to say" whether the Greek debt talks have reached a turning point.
Jun WTI crude oil (CLM15 +0.66%) this morning is up +19 cents (+0.32%) and Jun gasoline (RBM15 +0.55%) is up +0.0094 (+0.46%) at a 5-1/4 month high. Friday's closes: CLM5 -0.48 (-0.80%), RBM5 +0.0037 (-0.18%). Jun crude oil and gasoline on Friday closed lower on the stronger dollar and on reports of continued strong OPEC production in April. OPEC's Apr crude production level of 31.295 bpd was the 11th straight month that output has surpassed OPEC's 30 million bpd quota and was just below the 2-1/3 year high of 31.296 million bpd seen in March.
GLOBAL EVENT CALENDAR05/04/2015
US0945 ETApr New York ISM, Mar -13.1 to 50.0.
1000 ETMar factory orders expected +2.0%, Feb +0.2% and +0.8% ex transportation.
1100 ETUSDA weekly grain export inspections.
1225 ETChicago Fed President Charles Evans speaks about current economic conditions and monetary policy at the Columbus Economic Development Board Annual Meeting in Columbus, IN.
1600 ETUSDA weekly crop progress.
GER0355 ETRevised German Apr Markit/BME manufacturing PMI, previous -0.9 to 51.9.
EUR0400 ETRevised Eurozone Apr Markit manufacturing PMI, previous -0.3 to 51.9.
0430 ETEurozone May Sentix investor confidence expected -0.9 to 19.1, Apr 20.0.
UKn/aUK markets closed for May Day.
JPNn/aJapanese markets closed for Greenery Day.
U.S. STOCK CALENDAR05/04/2015
CompanyTickerTimeEvent DescriptionPeriodEstimate
Dominion Resources Inc/VAD USBef-mktQ1 2015 Earnings ReleaseQ1 20150.964
Loews CorpL USBef-mktQ1 2015 Earnings ReleaseQ1 20150.705
Sysco CorpSYY USBef-mktQ3 2015 Earnings ReleaseQ3 20150.413
Tyson Foods IncTSN USBef-mktQ2 2015 Earnings ReleaseQ2 20150.719
Cablevision Systems CorpCVC USBef-mktQ1 2015 Earnings ReleaseQ1 20150.172
Henry Schein IncHSIC USBef-mktQ1 2015 Earnings ReleaseQ1 20151.267
Diamond Offshore Drilling IncDO USBef-mktQ1 2015 Earnings ReleaseQ1 20150.423
Cognizant Technology Solutions CorpCTSH USBef-mktQ1 2015 Earnings ReleaseQ1 20150.696
Comcast CorpCMCSA US6:00Q1 2015 Earnings ReleaseQ1 20150.737
Comcast CorpCMCSA US7:30Q1 2015 Earnings CallQ1 2015
Cognizant Technology Solutions CorpCTSH US8:00Q1 2015 Earnings CallQ1 2015
Diamond Offshore Drilling IncDO US8:30Q1 2015 Earnings CallQ1 2015
Fidelity National Information Services IncFIS US8:30Investor DayY 2015
Tyson Foods IncTSN US9:00Q2 2015 Earnings CallQ2 2015
Aflac IncAFL US10:00Annual General MeetingY 2015
Dominion Resources Inc/VAD US10:00Q1 2015 Earnings CallQ1 2015
Sysco CorpSYY US10:00Q3 2015 Earnings CallQ3 2015
Cablevision Systems CorpCVC US10:00Q1 2015 Earnings CallQ1 2015
Henry Schein IncHSIC US10:00Q1 2015 Earnings CallQ1 2015
Loews CorpL US11:00Q1 2015 Earnings CallQ1 2015
McDonald's CorpMCD US11:00Investor ConferenceY 2015
Anadarko Petroleum CorpAPC USAft-mktQ1 2015 Earnings ReleaseQ1 2015-0.647
EOG Resources IncEOG USAft-mktQ1 2015 Earnings ReleaseQ1 20150.009
Tenet Healthcare CorpTHC USAft-mktQ1 2015 Earnings ReleaseQ1 20150.312
Vornado Realty TrustVNO USAft-mktQ1 2015 Earnings ReleaseQ1 20151.188
DaVita HealthCare Partners IncDVA USAft-mktQ1 2015 Earnings ReleaseQ1 20150.867
Dun & Bradstreet Corp/TheDNB USAft-mktQ1 2015 Earnings ReleaseQ1 20151.231
Cimarex Energy CoXEC USAft-mktQ1 2015 Earnings ReleaseQ1 2015-0.38
Eli Lilly & CoLLY USAnnual General Meeting
Masco CorpMAS USAnnual General Meeting
PG&E CorpPCG USAnnual General Meeting
AutoNation IncAN USApril 2015 Sales and Revenue Release2015
Delta Air Lines IncDAL USApril 2015 Sales and Revenue Release - Traffic Results2015
Posted by Jim Van Meerten at
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