Wednesday, August 5, 2015

BARCHART MORNING CALL 8/5

YOU ARE HERE:  Stocks » News & Commentary » Barchart Morning Call

OVERNIGHT MARKETS AND NEWS
September E-mini S&Ps (ESU15 +0.66%) are up +0.44% led by strength in energy producers as crude oil (CLU15 +0.57%) gained. The markets will look to this morning's Jul ADP employment change to gauge the strength of the U.S. labor market that may provide clues as to when the Fed will begin to raise interest rates. European stocks are up +1.06% at a 2-week high, led by a rally in bank stocks, as Societe Generale SA jumped over 8% after posting its highest profit since the financial crisis. Asian stocks closed mixed: Japan +0.46%, Hong Kong +0.44%, China -1.65%, Taiwan +0.37%, Australia -0.42%, Singapore +0.01%, South Korea -0.18%, India +0.54%. Japanese stocks rose on better-than-expected company quarterly earnings results as the Nikkei Stock Index posted a 2-week high, while China's Shanghai Composite closed lower as a total of 515 mainland Chinese companies remain halted from trading due to trading curbs.
The dollar index (DXY00 +0.14%) is up +0.16% at a 3-1/4 month high on speculation the Fed may raise interest rates as soon as September after Atlanta Fed President Lockhart on Tuesday said the Fed was "close" to raising interest rates. EUR/USD (^EURUSD) is down -0.11% at a 2-week low after Eurozone Jun retail sales fell by the most in 9 months. USD/JPY (^USDJPY) is unchanged.

Sep T-note prices (ZNU15 -0.29%) are down -11 ticks on negative carry-over from comments made Tuesday by Atlanta Fed President Lockhart who said he would only endorse putting off an interest rate increase if there was a "significant deterioration" in economic data.
Eurozone Jun retail sales fell -0.6% m/m, more than expectations of -0.2% m/m and the largest decline in 9 months. On an annual basis. Jun retail sales rose +1.2% y/y, less than expectations of +2.0% y/y.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) weekly MBA mortgage applications (previous +0.8% with purchase sub-index -0.1% and refi sub-index +1.6%), (2) July ADP employment (expected +215,000, Jun +237,000), (3) June trade deficit (expected -$43.0 billion, May -$41.87 billion), (4) final-Jul Markit U.S. services PMI (expected unrevised at 55.2, prelim-Jul +0.4 to 55.2), (5) July ISM non-manufacturing PMI (expected +0.2 to 56.2, Jun +0.3 to 56.0).
There are 24 of the S&P 500 companies that report earnings today with notable reports including: Time Warner (consensus $1.03), Motorola Solutions (0.54), Priceline (11.79), Ralph Lauren (1.00), Marathon Oil (-0.23), CBS (0.72), Prudential Financial (2.47).
U.S. IPO's scheduled to price today include: Philadelphia Energy Solutions (PESC), Planet Fitness (PLNT), Aimmune Therapeutics (AIMT), GC Aesthetics (GCAA), Benitec Biopharma (BTEBY), PG&E (PCG), Corium International (CORI), Medical Properties Trust (MPW), Summit Materials (SUM).
Equity conferences this week: Piper Jaffray Technology-Enabled Industrials Symposium on Tue-Wed, Needham Interconnect Conference on Wed.
OVERNIGHT U.S. STOCK MOVERS
IntercontinentalExchange (ICE +0.33%) reported Q2 adjusted EPS of $2.90, better than consensus of $2.77.
Time Warner (TWX -0.15%) reported Q2 EPS of $1.25, higher than consensus of $1.03.
The Priceline Group (PCLN +3.51%) reported Q2 EPS of $12.45, well above consensus of $11.79.
Discovery Communications (DISCA +0.46%) reported Q2 EPS of 47 cents, below consensus of 50 cents.
Cognizant Technology Solutions (CTSH +0.65%) reported Q2 EPS of 79 cents, higher than consensus of 73 cents.
Advance Auto Parts (AAP +0.74%) was downgraded to 'Hold' from 'Buy' at Evercore ISI.
Hyatt (H -2.63%) was downgraded to 'Hold' from 'Buy' at Deutsche Bank.
Babcock & Wilcox (BW +0.15%) reported Q2 adjusted EPS of 27 cents, above consensus of 21 cents.
Acadia (ACHC -2.90%) reported Q2 EPS of 57 cents, higher than consensus of 52 cents.
Disney (DIS +0.47%) reported Q3 EPS of $1.45, better than consensus of $1.42.
DaVita (DVA +0.61%) reported Q2 EPS of 95 cents, right on consensus, although Q2 revenue of $3.43 billion was above consensus of $3.37 billion.
Activision Blizzard (ATVI +0.59%) rose over 6% in after-hours trading after it reported Q2 EPS of 13 cents, better than consensus of 8 cents.
Cerner (CERN -0.82%) reported Q2 EPS of 52 cents, right on consensus.
Ternium (TX -0.20%) reported Q2 EPS of 21 cents, well below consensus of 34 cents.
AmSurg (AMSG +2.28%) reported Q2 adjusted EPS of 97 cents, higher than consensus of 84 cents, and then raised guidance on 2015 adjusted EPS outlook to $3.52-$3.59 from $3.31-$3.39, above consensus of $3.35.
MARKET COMMENTS
Sep E-mini S&Ps (ESU15 +0.66%) this morning are up +9.25 points (+0.44%). Tuesday's closes: S&P 500 -0.22%, Dow Jones -0.27%, Nasdaq -0.28%. The S&P 500 on Tuesday closed lower on disappointing earnings results from Allstate and CVS Health, weakness in technology stocks after Apple closed lower for a fifth day, and Atlanta Fed President Lockhart's comment that the Fed was "close" to raising interest rates. Stocks found some support on the 3% rally in China's Shanghai Composite Stock Index and the as-expected +1.8% increase in U.S. Jul factory orders.
Sep 10-year T-note prices (ZNU15 -0.29%) this morning are down -11 ticks. Tuesday's closes: TYU5 -18.0, FVU5 -13.50. Sep T-notes on Tuesday closed lower on the +0.5% increase in U.S. Jul factory orders ex-transportation, the largest increase in a year, hawkish comments from Atlanta Fed President Lockhart who said September may be the appropriate time for the Fed to begin raising interest rates, and the +3% rally in China's Shanghai Composite Stock Index, which reduced safe-haven demand for T-notes.
The dollar index (DXY00 +0.14%) this morning is up +0.154 (+0.16%) at a 3-1/4 month high. EUR/USD (^EURUSD) is down -0.0012 (-0.11%) at a 2-week low. USD/JPY (^USDJPY) is unchanged. Tuesday's closes: Dollar Index +0.437 (+0.45%), EUR/USD -0.00686 (-0.63%), USD/JPY +0.345 (+0.28%). The dollar index on Tuesday rallied to a 2-week high and closed higher on the +0.5% increase in U.S. Jul factory orders ex-transportation and hawkish comments from Atlanta Fed President Lockhart who said the Fed is "close" to raising interest rates, which suggests he favors a September rate hike.
Sep crude oil (CLU15 +0.57%) this morning is up +29 cents (+0.63%) and Sep gasoline (RBU15 +1.13%) is up +0.0193 (+1.15%). Tuesday's closes: CLU5 +0.66 (+1.46%), RBU5 +0.0198 (+1.18%). Sep crude and gasoline on Tuesday closed higher on the 3% rally in China's Shanghai Composite Index and on expectations that Wednesday's weekly EIA crude inventories will fall -1.75 million bbl.
GLOBAL EVENT CALENDAR08/05/2015
US0700 ETWeekly MBA mortgage applications, previous +0.8% with purchase sub-index -0.1% and refi sub-index +1.6%.
0815 ETJul ADP employment change expected +215,000, Jun +237,000.
0830 ETJun trade balance expected -$43.0 billion, May -$41.87 billion.
0830 ETTreasury announces amount of 3-year T-notes (previous $24 billion), 10-year T-notes (previous $21 billion) and 30-year T-bonds (previous $13 billion) to be auctioned in the Aug quarterly refunding Aug 11-13.
0945 ETFinal-Jul Markit U.S. services PMI expected unrevised at 55.2, prelim-Jul +0.4 to 55.2. Final-Jul Markit composite PMI, prelim-Jul +0.6 to 55.2.
1000 ETJul ISM non-manufacturing PMI expected +0.2 to 56.2, Jun +0.3 to 56.0.
1030 ETEIA Weekly Petroleum Status Report.
GER0355 ETRevised German Jul Markit services PMI, previous -0.1 to 53.7.
EUR0400 ETRevised Eurozone Jul Markit composite PMI, previous -0.5 to 53.7.
0500 ETEurozone Jun retail sales expected -0.2% m/m and +2.0% y/y, May +0.2% m/m and +2.4% y/y.
UK0430 ETUK Jul Markit/CIPS services PMI expected -0.5 to 58.0, Jun 58.5.
U.S. STOCK CALENDAR08/05/2015
CompanyTickerTimeEvent DescriptionPeriodEstimate
Dominion Resources Inc/VAD USBef-mktQ2 2015 Earnings ReleaseQ2 20150.725
Time Warner IncTWX USBef-mktQ2 2015 Earnings ReleaseQ2 20151.028
Chesapeake Energy CorpCHK USBef-mktQ2 2015 Earnings ReleaseQ2 2015-0.112
Quanta Services IncPWR USBef-mktQ2 2015 Earnings ReleaseQ2 20150.448
Cognizant Technology Solutions CorpCTSH USBef-mktQ2 2015 Earnings ReleaseQ2 20150.728
Intercontinental Exchange IncICE USBef-mktQ2 2015 Earnings ReleaseQ2 20152.778
Spectra Energy CorpSE USBef-mktQ2 2015 Earnings ReleaseQ2 20150.186
HCA Holdings IncHCA USBef-mktQ2 2015 Earnings ReleaseQ2 20151.369
Motorola Solutions IncMSI US7:00Q2 2015 Earnings ReleaseQ2 20150.54
Fastenal CoFAST US7:00July 2015 Sales and Revenue Release2015
Priceline Group Inc/ThePCLN US7:00Q2 2015 Earnings ReleaseQ2 201511.794
Discovery Communications IncDISCA US7:00Q2 2015 Earnings ReleaseQ2 20150.5
Priceline Group Inc/ThePCLN US7:30Q2 2015 Earnings CallQ2 2015
Perrigo Co PLCPRGO US8:00Q4 2015 Earnings ReleaseQ4 20152.048
Ralph Lauren CorpRL US8:00Q1 2016 Earnings ReleaseQ1 20160.996
Cognizant Technology Solutions CorpCTSH US8:00Q2 2015 Earnings CallQ2 2015
Genworth Financial IncGNW US8:00Q2 2015 Earnings CallQ2 2015
Motorola Solutions IncMSI US8:30Q2 2015 Earnings CallQ2 2015
Intercontinental Exchange IncICE US8:30Q2 2015 Earnings CallQ2 2015
Discovery Communications IncDISCA US8:30Q2 2015 Earnings CallQ2 2015
Chesapeake Energy CorpCHK US9:00Q2 2015 Earnings CallQ2 2015
Newfield Exploration CoNFX US9:00Q2 2015 Earnings CallQ2 2015
Ralph Lauren CorpRL US9:00Q1 2016 Earnings CallQ1 2016
Spectra Energy CorpSE US9:00Q2 2015 Earnings CallQ2 2015
Quanta Services IncPWR US9:30Q2 2015 Earnings CallQ2 2015
CA IncCA US10:00Annual General MeetingY 2015
Dominion Resources Inc/VAD US10:00Q2 2015 Earnings CallQ2 2015
Perrigo Co PLCPRGO US10:00Q4 2015 Earnings CallQ4 2015
Pioneer Natural Resources CoPXD US10:00Q2 2015 Earnings CallQ2 2015
HCA Holdings IncHCA US10:00Q2 2015 Earnings CallQ2 2015
Time Warner IncTWX US10:30Q2 2015 Earnings CallQ2 2015
ONEOK IncOKE US11:00Q2 2015 Earnings CallQ2 2015
Devon Energy CorpDVN US11:00Q2 2015 Earnings CallQ2 2015
Cimarex Energy CoXEC US11:00Q2 2015 Earnings CallQ2 2015
CBS CorpCBS US16:30Q2 2015 Earnings CallQ2 2015
CenturyLink IncCTL US17:00Q2 2015 Earnings CallQ2 2015
Keurig Green Mountain IncGMCR US17:00Q3 2015 Earnings CallQ3 2015
CenturyLink IncCTL USAft-mktQ2 2015 Earnings ReleaseQ2 20150.6
FMC CorpFMC USAft-mktQ2 2015 Earnings ReleaseQ2 20150.698
Twenty-First Century Fox IncFOXA USAft-mktQ4 2015 Earnings ReleaseQ4 20150.371
Tesoro CorpTSO USAft-mktQ2 2015 Earnings ReleaseQ2 20154.019
Marathon Oil CorpMRO USAft-mktQ2 2015 Earnings ReleaseQ2 2015-0.225
Costco Wholesale CorpCOST USAft-mktJuly 2015 Sales and Revenue Release2015
CBS CorpCBS USAft-mktQ2 2015 Earnings ReleaseQ2 20150.724
Transocean LtdRIG USAft-mktQ2 2015 Earnings ReleaseQ2 20150.517
Keurig Green Mountain IncGMCR USAft-mktQ3 2015 Earnings ReleaseQ3 20150.787
Prudential Financial IncPRU USAft-mktQ2 2015 Earnings ReleaseQ2 20152.469
Dun & Bradstreet Corp/TheDNB USAft-mktQ2 2015 Earnings ReleaseQ2 20151.308
CF Industries Holdings IncCF USAft-mktQ2 2015 Earnings ReleaseQ2 20151.491
Twenty-First Century Fox IncFOXA US17:30Q4 2015 Earnings CallQ4 2015 
Posted by Jim Van Meerten at
Labels: , , , , , , , , , , , , , , , , , , ,

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)