Barchart Morning Call
Barchart.com - 2 days ago
OVERNIGHT MARKETS AND NEWS
Dec E-mini S&Ps (ESZ16 +0.20%) are up +0.16% at a new all-time nearest-futures high as trading resumes from Thursday's Thanksgiving holiday. Stock prices are still getting a boost on optimism that President-elect Trump's pledges to increase fiscal spending and cut taxes will spur economic growth and corporate profits. European stocks are little changed, down -0.09%, as energy producing stocks decline with crude oil prices (CLF17 -1.15%) down -1.36%. Algeria's Energy Minister Boutarfa will travel to Tehran on Saturday in an effort to get Iran on board with other OPEC members in cutting production. Iran is insisting that it should be allowed to keep increasing output to pre-sanctions levels of about 4 million bpd. Also, some members in OPEC are adamant that Russia cut production as well if any OPEC plan to curb output is to succeed, according to people briefed on the matter because of the sensitive nature of the talks. Asian stocks settled higher: Japan +0.36%, Hong Kong +0.51%, China +0.62%, Taiwan +0.08%, Australia +0.41%, Singapore +0.55%, South Korea +0.09%, India +1.76%. Asian markets gained on strength in metals and commodity producing stocks, with Japan's Nikkei Stock Index climbing to a 10-1/2 month high, as the price of copper (HGZ16 +1.46%) jumps +1.51% to a 2-week high.
The dollar index (DXY00 -0.22%) is down -0.26%. EUR/USD (^EURUSD) is up +0.33%. USD/JPY (^USDJPY) is down -0.27%.
Dec 10-year T-note prices (ZNZ16 -0.12%) are down -6 ticks at a 2-year nearest-futures low as the rally in stocks to a new record high reduces the safe-haven demand for T-notes.
ECB Governing Council member Stournaras said the ECB has a long way to go to meet its inflation target so it's "far too early" to discuss the gradual removal of QE.
The German Nov IFO business climate was unch at 110.4, slightly weaker than expectations of unch at 110.5.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) Oct wholesale inventories (expected +0.2%, Sep +0.1%. Oct retail inventories, Sep +0.3%), (2) Nov Markit services PMI (expected unch at 54.8, Oct +2.5 to 54.8), (3) USDA weekly Export Sales.
Russell 1000 earnings reports today include: none.
U.S. IPO's scheduled to price today: none.
Equity conferences during the remainder of this week include: none.
OVERNIGHT U.S. STOCK MOVERS
Deere & Co. (DE +11.04%) was upgraded to 'Neutral' from 'Underperform' at Longbow Research.
Molson Coors (TAP -1.09%) was downgraded to 'Neutral' from 'Buy' at Bryan Garnier.
Eli Lilly (LLY -10.51%) was downgraded to 'Neutral' from 'Overweight' at Atlantic Equities LLP.
Juno Therapeutics (JUNO -24.50%) was downgraded to 'Hold' from 'Buy' at SunTrust.
Ctrip.com (CTRIP) reported Q3 adjusted EPS of 17 cents, better than consensus of 11 cents, and said it will buy Skyscanner in a $1.74 billion deal.
Lockheed Martin (LMT -0.10%) received a $1,28 billion down payment from the Pentagon to continue production of the F-35 jet while negotiations continue a contract for 90 aircraft, worth as much as $7.19 billion.
A Federal jury late Wednesday found that Wal-Mart (WMT +1.01%) failed to pay hundreds of California truck drivers minimum wage and awarded then $54 million in damages.
Insteel Industries (IIIN +2.12%) jumped over 5% in after-hours trading after it was announced that it will replace Littelfuse in the S&P SmallCap 600 Index as of the close of trading Monday, November 28.
Airgain (AIRG +0.75%) fell 5% in after-hours trading after it announced a release of lock-up restriction on shares of common stock that will take effect after the close of trading Monday, November 28 and it will offer $40 million shares on behalf of selling holders.
Corbus Pharmaceuticals Holdings (CRBP +0.63%) dropped almost 7% in after-hours trading after it filed an agreement to offer as much as $35 million in common stock via Cantor Fitzgerald.
MARKET COMMENTS
Dec E-mini S&Ps (ESZ16 +0.20%) this morning are up +3.50 points (+0.16%) at a new record nearest-futures high. Wednesday's closes: S&P 500 +0.08%, Dow Jones +0.31%, Nasdaq -0.41%. The S&P 500 on Wednesday closed slightly higher on positive economic reports that included +0.4% increase in U.S. Oct capital spending (stronger than expectations of +0.3%) and the unexpected +2.2 point increase in U.S. Nov University of Michigan consumer sentiment index to a 6-month high of 93.8 (stronger than expectations of unchanged at 91.6). Stocks were undercut by the -1.9%decline in U.S. Oct new home sales to 563,000 (weaker than expectations of -0.5% to 590,000) and long liquidation pressure in stocks after the 10-year T-note yield surged to a 16-month high.
Dec 10-year T-notes (ZNZ16 -0.12%) this morning are down -6 ticks at a new 2-year nearest-futures low. Wednesday's closes: TYZ6 -11.00, FVZ6 -9.50. Dec 10-year T-notes on Wednesday plunged to a 2-year nearest-futures low and settled lower. T-note prices were undercut by the stronger-than-expected U.S. economic data on Oct durable goods orders and Nov University of Michigan consumer sentiment and by a surge in inflation expectations as the 10-year T-note breakeven inflation rate rose to a 2-year high.
The dollar index (DXY00 -0.22%) this morning is down -0.260 (-0.26%). EUR/USD (^EURUSD) is up +0.0035 (+0.33%). USD/JPY (^USDJPY) is down -0.31 (-0.27%). Wednesday's closes: Dollar index +0.660 (+0.65%), EUR/USD -0.0074 (-0.70%), USD/JPY +1.38 (+1.24%). The dollar index on Wednesday soared to a 13-1/2 year high and closed higher on the stronger-than-expected U.S. Oct durable goods orders report and on the surge in the 10-year T-note yield to a 16-month high, which improves the dollar's interest rate differentials.
Jan crude oil prices (CLF17 -1.15%) this morning are down -65 cents (-1.36%) and Jan gasoline (RBF17 -1.14%) is -0.0159(-1.12%). Wednesday's closes: Jan crude -0.09 (-0.19%), Jan gasoline +0.0114 (+0.81%). Jan crude oil and gasoline prices on Wednesday settled mixed with Jan gasoline at a 3-week high. Crude oil prices were undercut by the rally in the dollar index to 13-1/2 year high and by the +2.317 million bbl increase in EIA gasoline inventories (vs expectations of +900,000 bbl). Crude oil prices were boosted by comments from Iraq Prime Minister Haider Al-Abadi who said Iraq will bear part of an oil-output cut at next week's OPEC meeting. Crude oil prices also received a boost from the unexpected -1.255million bbl decline in EIA crude inventories versus expectations for a build of +1.0 million bbl.
GLOBAL EVENT CALENDAR11/25/2016
| Friday, Nov 25 | ||
| US | 0830 ET | Oct wholesale inventories expected +0.2%, Sep +0.1%. Oct retail inventories, Sep +0.3%. |
| 0830 ET | USDA weekly Export Sales. | |
| 0945 ET | Nov Markit services PMI expected unch at 54.8, Oct +2.5 to 54.8. | |
| Monday, Nov 28 | ||
| US | 1030 ET | Nov Dallas Fed manufacturing activity expected +3.5 to 2.0, Oct -1.5. |
| 1100 ET | USDA weekly grain export inspections. | |
| 1600 ET | USDA Weekly Crop Progress. |
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