Sciclone Pharma & Trupanion - Buy Signals

Today I added Sciclone Pharmaceuticals (SCLN) and Trupanion (TRUP) to the Barchart Van Meerten Speculative portfolio.  The portfolio consists of stock selling between $1 and $10 that have a technical buy signal of 80% or better.

Sciclone Pharmaceuticals (SCLN)

Barchart technical indicators:

• 88% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 8 new highs and up 21.46% in the last month
• Relative Strength Index 65.53%
• Technical support level at 9.69
• Recently traded at 9.85 with a 50 day moving average of 8.67

Trupanion (TRUP)

Barchart technical indicators:

• 88% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 5 new highs and up 8.75% in the last month
• Relative Strength Index 58.84%
• Technical support level at 9.28
• Recently traded at 9.45 with a 50 day moving average of 8.84

Wesco Aircraft & Hawaiian Holdings - Buy Signals

Today I added Wesco Aircraft (WAIR) and Hawaiian Holdings (HA) to the Barchart Van Meerten New High Portfolio.  The portfolio consists of stocks trading over 100,000 shares a day that have a technical buy signal of 80% or better and had advances on more than 50% of the trading sessions in the last month.

Wesco Aircraft (WAIR)

Barchart technical indicators:

• 80% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 17 new highs and up 19.89% in the last month
• Relative Strength Index 78.52%
• Technical support level at 13.13
• Recently traded at 13.38 with a 50 day moving average of 11.52

Hawaiian Holdings (HA)

Barchart technical indicators:

• 96% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 17 new highs and up 34.23% in the last month
• Relative Strength Index 80.14%
• Technical support level at 44.37
• Recently traded at 45.76 with a 50 day moving average of 35.92

Vista Outdoor - Chart of the Day

Vista Outdoor (VSTO) is the Barchart Chart of the Day.  The outdoor sporting goods manufacturer has a Trend Spotter buy signal, a Weighted Alpha of 34.27+ and gained 21.60% in the last year.

The Chart of the Day belongs to Vista Outdoor (VSTO).  I found the outdoor sporting goods manufacturer by using Barchart to sort the All Time High list first for the highest technical buy signals then I used the Flipchart feature to review the charts.  Since the Trend Spotter signaled a buy on 12/22 the stock gained 16.25%.

Vista Outdoor Inc. develops, manufacture and distribute optics, accessories and eyewear. The Company operates in two segments: Shooting Sports and Outdoor Products. Its product consist of binoculars, laser rangefinders, riflescopes, trail cameras, archery accessories, blinds, decoys, game calls, gun care products, mounts, powder, reloading equipment, targets, target systems, safety and protective eyewear, fashion and sports eyewear. The company's product portfolio include Bushnell(R), Primos(R), Boll'(R), Serengeti(R), C'b', RCBS(R), Hoppe's(R), Uncle Mike's(R), Gold Tip(R), Weaver(R) and Tasco(R). Vista Outdoor Inc. is headquartered in Utah.

The status of Barchart's Opinion trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 10 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com web site when you read this report.

Barchart technical indicators:

• 100% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 11 new highs and up 12.49% in the last month
• Relative Strength Index 75.30%
• Technical support level at 49.26
• Recently traded at 52.87 with a 50 day moving average of 46.61

Fundamental factors:

• Market Cap $3.29 billion
• P/E 21.62
• Revenue is expected to grow 7.90% this year and another 11.30% next year
• Earnings estimated to increase 4.70% this year, an additional 13.80% next year and continue to increase at an annual rate of 3.20% for the next 5 years
• Wall Street analysts issued 3 strong buy, 2 buy and 3 hold recommendation on the stock

CyrusOne - Chart of the Day

CyrusOne (CONE) is the Barchart Chart of the Day.  The REIT has a trend spotter buy signal, a Weighted Alpha of 40.80+ and gained 33.05% in the last year.

The Chart of the Day belongs to CyrusOne (CONE).  I found the REIT by using Barchart to sort today's All Time High list first for the highest technical buy signals then I used the Flipchart feature to review the charts.

CyrusOne Inc. is a real estate investment trust engaged in providing enterprise data centre colocation, engineering facilities with the highest power redundancy (2N architecture) and power-density infrastructure services in the United States, Europe, and Asia. CyrusOne Inc. is headquartered in Carrollton, United States.

The status of Barchart's Opinion trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 10 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com web site when you read this report.

Barchart technical indicators:

• 96% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 12 new highs and up 13.96% in the last month
• Relative Strength Index 64.51%
• Technical support level at 39.70
• Recently traded at 39.97 with a 50 day moving average of 36.77

Fundamental factors:

• Market Cap $2.65 billion
• P/E 18.64
• Dividend yield 3.12%
• Revenue expected to grow 23.80% this year and another 14.60% next year
• Earnings estimated to increase 13.80% this year, an additional 16.60% next year and continue to increase at an annual rate of 15.00% for the next 5 years
• Wall Street analysts issued 5 strong buy, 9 buy and 4 hold recommendation on the stock.

I'm diving back in

I'm diving back into the market and by the end of the day will be 100% invested back into the market. My market proxy is the Value Line Arithmetic Index and it looks good to me.

Barchart technical indicators:

• 48% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 8 new highs and up 8.60% in the last month
• Relative Strength Index 67.72%
• 14 day Hi/Lo turtle channel hitting new Highs and the Lows have gained support

AT&T - Chart of the Day

AT&T (T) is the Barchart Chart of the Day.  The telephone communications company has a Trend Spotter buy signal, a Weighted Alpha of 16.00+ and gained 8.66% in the last year.

The Chart of the Day is AT&T (T).  I found the telephone communications stock by using Barchart to sort the Russell 3000 Index stocks for the highest technical buy signals , then used the Flipchart feature to review the charts.  Since the Trend Spotter signaled a buy on 1/22 the stock gained 7.11%.

AT&T Inc. is a premier communications holding company. Its subsidiaries and affiliates, AT&T operating companies, are the providers of AT&T services in the United States and around the world. Among their offerings are the world's most advanced IP-based business communications services, the nation's fastest 3G network and the best wireless coverage worldwide, and the nation's leading high speed Internet access and voice services. In domestic markets, AT&T is known for the directory publishing and advertising sales leadership of its Yellow Pages and YELLOWPAGES.COM organizations, and the AT&T brand is licensed to innovators in such fields as communications equipment. As part of their three-screen integration strategy, AT&T operating companies are expanding their TV entertainment offerings.

The status of Barchart's Opinion trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 10 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com web site when you read this report.

Barchart technical indicators:

• 100% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 7 new highs and up 4.38% in the last month
• Relative Strength Index 65.95%
• Technical support level at 36.95
• Recently traded at 37.65 with a 50 day moving average of 35.50

Fundamental factors:

• Market Cap $231.62 billion
• P/E 13.74
• Dividend yield 5.20%
• Revenue expected to grow 14.30% this year and another 1.90% next year
• Earnings estimated to increase 5.20% this year, an additional 4.60% next year and continue to compound at an annual rate of 5.10% for the next 5 years
• Wall Street analysts issued 9 strong buy, 4 buy, 14 hold, 2 under perform and 1 sell recommendation on the stock

This is not a trading stock and should be held for that 5.20% dividend yield.

5 Great Mid Caps

This morning I used Barchart to sort the S&P 400 Mid Cap Index stocks for the highest technical buy signals then used the Flipchart feature to review the charts.  Today's list includes:

Urban Edge Properties (UE), Teleflex (TFX), Fair Isaac & Co (FICO), Domino's Pizza (DPZ) and Bemis Company (BMS).

Urban Edge Properties (UE)

Barchart technical indicators:

• 100% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 6 new highs and up 2.34% in the last month
• Relative Strength Index 63.51%
• Technical support level at 24.26
• Recently traded at 24.93 with a 50 day moving average of 23.50

Teleflex (TFX)

Barchart technical indicators:

• 100% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 an d 100 day moving averages
• 3 new highs and up 4.90% in the last month
• Relative Strength Index 67.35%
• Technical support level at 141.70
• Recently traded at 144.79 with a 50 day moving average of 133.62

Fair Isaac & Co (FICO)

Barchart technical indicators:

• 100% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 6 new highs and up 7.40% in the last month
• Relative Strength Index 69.05%
• Technical support level at 98.58
• Recently traded at 102.63 with a 50 day moving average of 91.89

Domino's Pizza (DPZ)

Barchart technical indicators:

• 100% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 9 new highs and up 17.32% in the last month 
• Relative Strength Index 79.39%
• Technical support level at 130.27
• Recently traded at 134.15 with a 50 day moving average of 112.18

Bemis Company (BMS)

Barchart technical indicators:

• 100% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 8 new highs and up 6.04% in the last month
• Relative Strength Index 71.14%
• Technical support level at 48.48
• Recently traded at 50.07 with a 50 day moving average of 45.99

MORNING CALL 3/2

MORNING CALL

Wednesday, March 2nd, 2016View Older Reports

Everything you need to know about the markets in one free daily newsletter.

E-mail:  

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OVERNIGHT MARKETS AND NEWS

March E-mini S&Ps (ESH16 -0.14%) are down -0.28% as they follow crude oil prices lower, although European stocks are up +0.39% at a 1-month high as miners and commodity producers rallied and led the overall market higher after the price of copper jumped to a 3-1/2 month high. Crude oil is down -1.95% after data late yesterday from API showed U.S. crude inventories surged +9.9 million bbl last week. Asian stocks settled higher: Japan +4.11%, Hong Kong +3.07%, China +4.26%, Taiwan +0.69%, Australia +2.01%, Singapore +1.66%, South Korea +1.70%, India +1.95%. Chinese stocks rallied on speculation the government will announce measures to boost growth at legislative meetings that begin Saturday. China's National People's Congress will begin a 2-week meeting starting March 5 where delegates will sign off on a new 5-year economic plan. Japan's Nikkei Stock Index climbed to a 3-week high as exporter stocks rallied after the yen fell to a 2-week low against eh dollar, which improves earnings prospects of exporters

The dollar index (DXY00 +0.10%) is up +0.10%. EUR/USD (^EURUSD) is down -0.12%. USD/JPY (^USDJPY) is up +0.32% at a 2-week high.

Jun T-note prices (ZNM16 -0.12%) are down -4 ticks at a 4-week low on hawkish comments from San Francisco Fed President Williams who said the U.S. economy is set to "power ahead." which increases the chance of a Fed rate hike at the Mar 15-16 FOMC meeting.

In a telephone interview with the Financial Times, San Francisco Fed President Williams said "he doesn't see any signs in the data of any slackening of domestic demand" and that the U.S. economy is set to "power ahead" and push inflation back to target as positive U.S. domestic demand outweighs weakness from abroad.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly MBA mortgage applications (previous -4.3% with purchase sub-index +2.2% and refi sub-index -7.7%), (2) Feb ADP employment change (expected +188,000, Jan +205,000), (3) Feb New York ISM (Jan -7.4 to 54.6), (4) San Francisco Fed President John Williams' speech at the Bishop Ranch Forum in San Ramon, CA, and (5) Fed Beige Book.

There are 2 of the S&P 500 companies that report earnings today: Costco Wholesale (consensus $1.28), Brown-Forman (0.94).

U.S. IPO's scheduled to price today: Syndax Pharmaceuticals (SNDX).

Equity conferences this week include: Morgan Stanley Technology Media & Technology Conference on Mon-Thu, Pacific Crest Securities Emerging Technology Summit on Tue-Wed, UBS Natural Gas & Electric Utilities Conference on Wed, Bank of America Merrill Lynch Global Agriculture and Chemicals Conference on Wed-Thu, Bank of America Refining Conference on Thu, Citi Asset Management, Broker Dealer & Exchanges Investor Conference on Thu, Gabelli & Company Waste & Environmental Services Conference on Thu, Simmons Energy Conference on Thu-Fri.

OVERNIGHT U.S. STOCK MOVERS

Dollar Tree (DLTR +2.22%) was downgraded to 'Market Perform' from 'Strong Buy' at Raymond James.

Amazon.com (AMZN +4.80%) was rated a new 'Outperform' at BMO with a price target of $700.

Weatherford International PLC (WFT -3.28%) dropped over 3% in after-hours trading after it announced an offering of 80 million shares of common stock.

Ross Stores (ROST +2.27%) gained almost 1% in after-hours trading after it reported Q4 EPS of 66 cents, higher than consensus of 64 cents.

Ascena Retail Group (ASNA +4.73%) slid over 4% in after-hours trading after it reported Q2 revenue of $1.84 billion, weaker than consensus of $1.88 billion, and then lowered guidance in Q3 EPS to 10 cents-14 cents, below consensus of 19 cents.

Veeva Systems (VEEV +3.25%) dropped over 2% in after-hours trading after it lowered guidance on fiscal 2016 adjusted EPS to 54 cents-56 cents, below consensus of 57 cents.

Bob Evans Farms BOBE reported Q3 adjusted EPS of 62 cents, better than consensus of 55 cents.

NeoPhotonics (NPTN +5.75%) rose over 5% in after-hours trading after it reported Q4 adjusted EPS of 16 cents, better than consensus of 10 cents.

Chuy's Holdings (CHUY +2.34%) climbed over 6% in after-hours trading after it reported Q4 adjusted EPS of 18 cents, higher than consensus of 13 cents.

Guidewire Software (GWRE +2.62%) jumped 8% in after-hours trading after it raised guidance on fiscal 2016 adjusted EPS to 64 cents-71 cents from a prior view of 57 cents-66 cents, above consensus of 64 cents.

Darling Ingredients (DAR +1.44%) rose over 3% in after-hours trading after it reported Q4 pro forma adjusted Ebitda of $103.1 million, above estimates of $97.1 million.

Big 5 Sporting Goods (BGFV -2.99%) slumped over 12% in after-hours trading after it lowered guidance for Q1 EPS to between a net -5 cent loss to a 2 cent profit, below consensus of a 6 cent profit.

MARKET COMMENTS

Mar E-mini S&Ps (ESH16 -0.14%) this morning are down -5.50 points (-0.28%). Tuesday's closes: S&P 500 +2.39%, Dow Jones +2.11%, Nasdaq +3.15%. The S&P 500 on Tuesday rose to a 1-3/4 month high and closed sharply higher on the strong U.S. economic reports, which included the +1.3 point increase in the U.S. Feb ISM manufacturing index to 49.5 (stronger than expectations of +0.3 to 48.5) and the +1.5% jump in U.S Jan construction spending (stronger than expectations of +0.3% m/m and the largest increase in 8 months). Stocks were undercut by the -0.4 point decline in the China Feb manufacturing PMI to 49.0, weaker than expectations of unch at 49.4 and matched Nov 2011 as the steepest pace of contraction in 7 years.

Jun 10-year T-notes (ZNM16 -0.12%) this morning are down -4 ticks at a 4-week low. Tuesday's closes: TYM6 -29.50, FVM6 -16.00. Jun T-notes on Tuesday sold off to a 3-week low and closed lower on strength in the U.S. Feb ISM manufacturing and Jan construction spending reports, reduced safe-haven demand with the rally in stocks, and an increase in inflation expectations after the 10-year T-note breakeven inflation rate climbed to a 1-1/2 month high.

The dollar index (DXY00 +0.10%) this morning is up +0.101 (+0.10%). EUR/USD (^EURUSD) is down -0.0013 (-0.12%). USD/JPY (^USDJPY) is up +0.36 (+0.32%) at a 2-week high. Tuesday's closes: Dollar Index +0.141 (+0.14%), EUR/USD -0.00051 (-0.05%), USD/JPY +1.32 (+1.17%). The dollar index on Tuesday rose to a 4-week high and settled higher on the stronger-than-expected U.S. Feb ISM manufacturing and Jan construction spending reports, which may accelerate a Fed rate hike. In addition, EUR/USD slumped to a 1-month low on expectations for the ECB to expand stimulus at next week's policy meeting.

Apr WTI crude (CLJ16 -1.37%) this morning is down -67 cents (-1.95%) and Apr gasoline (RBJ16 +0.61%) is up +0.0007 (+0.05%). Tuesday's closes: CLJ6 +0.65 (+1.93%), RBJ6 -0.0202 (-1.53%). Apr crude oil and gasoline on Tuesday settled mixed. Metals prices were boosted by the rally in global stocks and the stronger-than-expected U.S. Feb ISM manufacturing and Jan construction spending reports, which were positive for energy demand. Metals prices were undercut by the rally in the dollar index to a 4-week high and by expectations for U.S. crude supplies to increase by +2.75 million bbl in Wednesday's EIA inventory report.

GLOBAL EVENT CALENDAR03/02/2016

US	0700 ET	Weekly MBA mortgage applications, previous -4.3% with purchase sub-index +2.2% and refi sub-index -7.7%.
	0815 ET	Feb ADP employment change expected +188,000, Jan +205,000.
	0945 ET	Feb New York ISM, Jan -7.4 to 54.6.
	1000 ET	San Francisco Fed President John Williams speaks at the Bishop Ranch Forum in San Ramon, CA.
	1030 ET	EIA Weekly Petroleum Status Report.
	1400 ET	Fed Beige Book.
UK	0430 ET	UK Feb Markit/CIPS construction PMI expected +0.5 to 55.5, Jan 55.0.
EUR	0500 ET	Eurozone Jan PPI expected -1.0% m/m and -2.9% y/y, Dec -0.8% m/m and -3.0% y/y.
CHI	2045 ET	China Feb Caixin composite PMI, Jan +0.7 to 50.1.

U.S. STOCK CALENDAR03/02/2016

Company	Ticker	Time	Event Description	Period	Estimate
Brown-Forman Corp	BF/B US	8:00	Q3 2016 Earnings Release	Q3 2016	0.94
Huntsman Corp	HUN US	8:00	Investor Day	Y 2016
Exxon Mobil Corp	XOM US	9:00	Analyst Meeting	Y 2016
Progressive Corp/The	PGR US	9:00	Investor Relations Conference Call
TransDigm Group Inc	TDG US	9:00	Annual General Meeting	Y 2016
Honeywell International Inc	HON US	10:00	Investor Conference	Y 2016
Brown-Forman Corp	BF/B US	10:00	Q3 2016 Earnings Call	Q3 2016
Middleby Corp/The	MIDD US	11:00	Q4 2015 Earnings Call	Q4 2015
Cerner Corp	CERN US	12:00	Investment Community Meeting	Y 2016
WESCO International Inc	WCC US	13:00	Investor Day	Y 2016
Target Corp	TGT US	14:30	Financial Community Meeting	Y 2016
Cable One Inc	CABO US	Aft-mkt	Q4 2015 Earnings Release	Q4 2015	3.33
Costco Wholesale Corp	COST US	21:00	Q2 2016 Earnings Release	Q2 2016	1.281
Helmerich & Payne Inc	HP US		Annual General Meeting
Costco Wholesale Corp	COST US		February 2016 Sales and Revenue Release	2016
Hologic Inc	HOLX US		Annual General Meeting
PTC Inc	PTC US		Annual General Meeting
AECOM	ACM US		Annual General Meeting
Mallinckrodt PLC	MNK US		Annual General Meeting	Y 2016

Electromed - Chart of the Day

Electormed (ELMD) is the Barchart Chart of the Day.  The medical device company has a Trend Spotter buy signal, a Weighted Alpha of 62.70+ and gained 105.39% in the last year.

The Chart of the Day belongs to Electromed (ELMD).  I found the micro cap medical device stock by using Barchart to sort today's All Time High list first for the highest technical buy signals, then I used the Flipchart feature to review the charts.  Since the Trend Spotter signaled a buy on 2/10 the stock gained 50.15%.

Electromed, Inc. manufactures, markets and sells products that provide airway clearance therapy to patients with compromised pulmonary function. The Company is the designer, manufacturer and worldwide provider of the SmartVest' Airway Clearance System and related products. The patented system uses High Frequency Chest Wall Oscillation (HFCWO), an alternative to Chest Physiotherapy (CPT), to deliver airway clearance treatment. The Company manufactures its products for use by chronically-ill patients who face health risks due to pneumonia and mucus accumulation in the lungs, particularly patients with cystic fibrosis, chronic obstructive pulmonary disease (COPD), bronchiectasis, and neuro-muscular disorders. The purpose of its primary product, the SmartVest System, is to loosen, mobilize, and release respiratory secretions from the lungs. The Company's products are primarily used in the home health care market and in hospitals. Electromed, Inc. is headquartered in New Prague, Minnesota.

The status of Barchart's Opinion trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 10 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com web site when you read this report.

Barchart technical indicators:

• 96% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 11 new highs and up 187.79% in the last month
• Relative Strength Index 88.29%
• Technical support level at 3.96
• Recently traded at 4.91 with a 50 day moving average of 2.36

Fundamental factors:

• Market Cap $40.07 million
• P/E 21.15
• Revenue expected to grow 17.50% this year and another 8.50% next year
• Earnings estimated to increase 146.20% this year, an additional 15.60% next year and continue to compound at an annual rate of 15.00% for the next 5 years
• The one Wall Street firm following the stock: Feltl & Co has the stock rated buy

4 Low Priced Gems

I recently added some more positions to the Barchart Van Meerten Speculative portfolio.  I screen the Russell 3000 Index stocks for stocks trading for $10 or less with technical buy signals of 80% or more, then use the Flipchart feature to review for consistency.  The stocks added recently include:
Tuesday Morning (TUES), Hecla Mining (HL), Marvel Technology (MRVL), and Control4 Corp (CTRL).

Tuesday Morning (TUES)

Barchart technical indicators:

• 80% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 7 new highs and up 20.83% in the last month
• Relative Strength Index 63.48%
• Technical support level at 6.56
• Recently traded at 6.73 with a 50 day moving average of 6.05

Hecla Mining (HL)

Barchart technical indicators:

• 80% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 13 new highs and up 35.42% in the last month
• Relative Strength Index 69.24%
• Technical support level at 2.46
• Recently traded at 2.60 with a 50 day moving average of 2.00

Marvel Technology (MRVL)

Barchart technical indicators:

• 88% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 5 new highs and up 12.77% in the last month
• Relative Strength Index 71.53%
• Technical support level at 9.38
• Recently traded at 10.07 with a 50 day moving average of 8.73

Control4 Corp (CTRL)

Barchart technical indicators:

• 80% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 3 new highs and up 20.06% in the last month
• Relative Strength Index 63.55%
• Technical support level at 7.37
• Recently traded at 8.20 with a 50 day moving average of 6.98

MORNING CALL 3/1

MORNING CALL

Tuesday, March 1st, 2016View Older Reports

Everything you need to know about the markets in one free daily newsletter.

E-mail:  

You will also receive a free subscription to the Barchart family of newsletters.

OVERNIGHT MARKETS AND NEWS

March E-mini S&Ps (ESH16 +0.88%) are up +0.74% and European stocks are up +1.04% at a 3-1/2 week high on expectations that global central banks will increase stimulus to spur economic growth. New York Fed President Dudley said that he is "somewhat less confident" that inflation will reach the Fed's target as "downside risks have crept up." His comments signal the Fed may wait further before they raise interest rates again. European stocks also found support after the Eurozone Jan unemployment rate unexpectedly fell to the lowest in more than 4 years. Global stocks shrugged off the negative Chinese economic data that showed the China Feb manufacturing PMI contracted at its steepest pace in 7 years. Asian stocks settled higher: Japan +0.37%, Hong Kong +1.55%, China +1.68%, Taiwan +0.89%, Australia +0.85%, Singapore +0.60%, South Korea closed for holiday, India +3.38%. Asian markets reacted positively to Monday's action from the PBOC to cut banks' reserve requirement ratios that was done after Asian markets closed on Monday.

The dollar index (DXY00 +0.04%) is up +0.04% at a 3-1/2 week high. EUR/USD ^EURUSD) is up +0.01%. USD/JPY (^USDJPY)is up +0.37%.

Jun T-note prices (ZNM16 -0.10%) are down -2 ticks.

New York Fed President Dudley said that he is "somewhat less confident" that inflation will reach the Fed's 2.0% target over time as "downside risks have crept up." He added that a continuing decline in energy, commodity prices may signal "greater and more persistent" deflationary pressure in the global economy.

The Eurozone Jan unemployment rate unexpectedly fell -0.1 to 10.3%, stronger than expectations of unch at 10.4% and the lowest in 4-1/3 years.

The China Feb manufacturing PMI unexpectedly fell -0.4 to 49.0, weaker than expectations of unch at 49.4 and matched Nov 2011 as the steepest pace of contraction in 7 years.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) revised-Feb Markit U.S. manufacturing PMI (expected +0.2 to 51.2, preliminary-Feb -1.4 to 51.0), (2) Feb ISM manufacturing index (expected +0.3 to 48.5, Jan +0.2 to 48.2) (3) Jan construction spending (expected +0.4%, Dec +0.1% m/m), and (4) Feb total vehicle sales (expected 17.70 million, Jan 17.46 million).

There are 4 of the S&P 500 companies that report earnings today: AutoZone (consensus $7.28), Dollar Tree (1.07), Medtronic (1.06), Ross Stores (0.64).

U.S. IPO's scheduled to price today: none.

Equity conferences this week include: BMO Capital Markets Global Metals and Mining Conference on Mon-Tue, J.P. Morgan Global High Yield & Leveraged Finance Conference on Mon-Tue, Morgan Stanley Technology Media & Technology Conference on Mon-Thu, Barclays Power & Utility Credit Conference on Tue, Goldman Sachs Media & Telecom Conference on Tue, Canaccord Genuity Musculoskeletal Conference on Tue, JMP Securities Technology Conference on Tue, Longbow Research Basic Materials Investor Conference on Tue, Pacific Crest Securities Emerging Technology Summit on Tue-Wed, UBS Natural Gas & Electric Utilities Conference on Wed, Bank of America Merrill Lynch Global Agriculture and Chemicals Conference on Wed-Thu, Bank of America Refining Conference on Thu, Citi Asset Management, Broker Dealer & Exchanges Investor Conference on Thu, Gabelli & Company Waste & Environmental Services Conference on Thu, Simmons Energy Conference on Thu-Fri.

OVERNIGHT U.S. STOCK MOVERS

Walgreens Boots Alliance (WBA -0.79%) was upgraded to 'Buy' from 'Neutral' at Mizhuho Securities USA with a target price of $95.

Signet Jewelers (SIG +9.35%) was upgraded to 'Buy' from 'Neutral' at CL King with a 12-month price target of $127.

Bank of America (BAC -1.42%) and Citigroup (C -1.65%) were both cut to 'Neutral' from 'Overweight' at Atlantic Equities.

Marathon Oil (MRO +2.24%) slid over 5% in pre-market trading after it said it intends to offer 135 million shares of common stock.

American Public Education (APEI +3.63%) jumped over 12% in after-hours trading after reported Q4 adjusted EPS of 75 cents, well above consensus of 54 cents.

Hertz Global Holdings (HTZ +2.78%) rose nearly 2% in after-hours trading after it reported Q4 adjusted EPS of 5 cents, better than consensus of 4 cents.

Crocs (CROX +0.20%) lowered guidance on Q1 revenue to $260 million-$270 million, below consensus of $270.8 million.

Qualys (QLYS -0.56%) climbed over 3% in after-hours trading after it announced that it will replace Hangar in the S&P SmallCap 600 Index.

Aegion (AEGN -1.20%) reported Q4 adjusted EPS continuing operations of 36 cents, better than consensus of 35 cents, although Q4 revenue of $330.7 million was below consensus of $341.7 million.

Halozyme Therapeutics (HALO -1.45%) rallied nearly 9% in after-hours trading after it reported Q4 revenue of $52.2 million, higher than consensus of $44.7 million.

Sykes Enterprises (SYKE +0.46%) slid nearly 2% in after-hours trading after it lowered guidance on fiscal 2016 adjusted EPS to $1.73-$1.83, below consensus of $1.85.

Diplomat Pharmacy (DPLO +1.48%) plunged 16% in after-hours trading after it lowered guidance on fiscal 2016 EPS to 84 cents-89 cents, below consensus of $1.00.

PTC Therapeutics (PTCT -0.13%) dropped 2% in after-hours trading after it reported a Q4 adjusted loss of -$150 a share, wider than consensus of a loss of -$1.24.

TubeMogul (TUBE +3.46%) gained nearly 5% in after-hours trading after it raised guidance on 2016 revenue to $220 million-$228 million, above consensus of $213.8 million.

MARKET COMMENTS

Mar E-mini S&Ps (ESH16 +0.88%) this morning are up +14.25 points (+0.74%). Monday's closes: S&P 500 -0.81%, Dow Jones -0.74%, Nasdaq -0.81%. The S&P 500 on Monday closed lower on weak U.S. economic reports that included the unexpected -2.5% m/m drop in U.S. Jan pending home sales (weaker than expectations of +0.5% m/m and the largest decline in 2 years) and the -8.0 point decline in the Feb Chicago PMI to 47.6 (weaker than expectations of -3.1 to 52.5). Stocks saw early strength after the PBOC lowered the Chinese bank reserve requirement ratio by -50 bp to 17.0%, which should provide some extra stimulus to the Chinese economy.

Jun 10-year T-notes (ZNM16 -0.10%) this morning are down -2 ticks. Monday's closes: TYM6 +4.50, FVM6 +3.25. Jun T-notes on Monday closed higher on the weaker-than-expected U.S. economic reports and on carryover support from a rally in German bunds to a 10-1/4 month high on expectations for the ECB to expand stimulus after Eurozone Feb CPI fell by the most in a year.

The dollar index (DXY00 +0.04%) this morning is up +0.042 (+0.04%) at a 3-1/2 week high. EUR/USD (^EURUSD) is up +0.0001 (+0.01%). USD/JPY (^USDJPY) is up +0.42 (+0.37%). Monday's closes: Dollar Index +0.063 (+0.06%), EUR/USD -0.0061 (-0.56%), USD/JPY -1.31 (-1.15%). The dollar index on Monday rose to a 3-week high and closed higher on weakness in the Chinese yuan which fell to a 3-week low against the dollar after the PBOC cut the bank reserve requirement ratio by 50 bp. In addition, EUR/USD fell to a 1-month low after Eurozone Feb CPI unexpectedly fell -0.2% y/y, weaker than expectations of unch y/y which bolsters the case for the ECB to expand at its meeting next week.

Apr WTI crude (CLJ16 +1.69%) this morning is up +42 cents (+1.24%) and Apr gasoline (RBJ16 -0.29%) is down -0.0061 (-0.46%). Monday's closes: CLJ6 +0.97 (+2.96%), RBJ6 +0.0263 (+2.03%). Apr crude oil and gasoline on Monday closed higher on hopes for stronger Chinese energy demand after the PBOC cut the bank reserve ratio. Crude oil prices also received a boost from expectations for lower U.S. oil production after last Friday's news from Baker Hughes that the number of active U.S. oil rigs fell by another -13 rigs to a 6-year low of 400, the 10th straight weekly decline.

GLOBAL EVENT CALENDAR03/01/2016

US	0945 ET	Revised Feb Markit manufacturing PMI expected +0.2 to 51.2, preliminary-Feb -1.4 to 51.0.
	1000 ET	Feb ISM manufacturing index expected +0.3 to 48.5, Jan +0.2 to 48.2. Feb ISM new orders, Jan +2.7 to 51.5. Feb ISM employment, Jan-2.1 to 45.9. Feb ISM prices paid expected +1.5 to 35.0, Jan unch at 33.5.
	1000 ET	Jan construction spending expected +0.3%, Dec +0.1% m/m.
	n/a	Feb total vehicle sales expected 17.70 million, Jan 17.46 million. Feb domestic vehicle sales expected 13.87 million, Jan 13.79 million.
JPN	0000 ET	Japan Feb vehicle sales, Jan +0.2% y/y.
GER	0355 ET	German Feb unemployment change expected -10,000, Jan -20,000. Feb unemployment rate expected unch at 6.2%.
	0355 ET	Revised German Feb Markit/BME manufacturing PMI, preliminary -2.1 to 50.2.
EUR	0400 ET	Revised Eurozone Feb Markit manufacturing PMI, preliminary -1.3 to 51.0.
	0500 ET	Eurozone Jan unemployment rate expected unch at 10.4%.
UK	0430 ET	UK Feb Markit manufacturing PMI expected -0.6 to 52.3, Jan 52.9.

U.S. STOCK CALENDAR03/01/2016

Company	Ticker	Time	Event Description	Period	Estimate
AutoZone Inc	AZO US	Bef-mkt	Q2 2016 Earnings Release	Q2 2016	7.284
Donaldson Co Inc	DCI US	Bef-mkt	Q2 2016 Earnings Release	Q2 2016	0.335
Kate Spade & Co	KATE US	Bef-mkt	Q4 2015 Earnings Release	Q4 2015	0.318
Dollar Tree Inc	DLTR US	Bef-mkt	Q4 2016 Earnings Release	Q4 2016	1.067
Medtronic PLC	MDT US	6:45	Q3 2016 Earnings Release	Q3 2016	1.059
Medtronic PLC	MDT US	8:00	Q3 2016 Earnings Call	Q3 2016
Hertz Global Holdings Inc	HTZ US	8:00	Q4 2015 Earnings Call	Q4 2015
Kate Spade & Co	KATE US	8:30	Q4 2015 Earnings Call	Q4 2015
Owens-Illinois Inc	OI US	8:30	Investor Day	Y 2016
Brixmor Property Group Inc	BRX US	8:30	Q4 2015 Earnings Call	Q4 2015
Orbital ATK Inc	OA US	9:00	Q4 2015 Earnings Call	Q4 2015
Anadarko Petroleum Corp	APC US	9:00	Q4 2016 Guidance Call	Q4 2016
Dollar Tree Inc	DLTR US	9:00	Q4 2016 Earnings Call	Q4 2016
Ford Motor Co	F US	9:15	February 2016 Sales and Revenue Release	2016
AutoZone Inc	AZO US	10:00	Q2 2016 Earnings Call	Q2 2016
Donaldson Co Inc	DCI US	10:00	Q2 2016 Earnings Call	Q2 2016
Ford Motor Co	F US	10:00	February 2016 Sales and Revenue Call	2016
Ross Stores Inc	ROST US	16:15	Q4 2016 Earnings Call	Q4 2016
Veeva Systems Inc	VEEV US	16:30	Q4 2016 Earnings Call	Q4 2016
Ross Stores Inc	ROST US	Aft-mkt	Q4 2016 Earnings Release	Q4 2016	0.64
Veeva Systems Inc	VEEV US	Aft-mkt	Q4 2016 Earnings Release	Q4 2016	0.11
Equifax Inc	EFX US		Investor Meeting - San Francisco	Y 2016
Middleby Corp/The	MIDD US		Q4 2015 Earnings Release	Q4 2015	0.972
Nordson Corp	NDSN US		Annual General Meeting
Dick's Sporting Goods Inc	DKS US		Q4 2016 Earnings Release	Q4 2016	1.156

Sibanye Gold Limited - Chart of the Day

Sibanye Gold Limited (SBGL is the Barchart Chart of the Day.  The gold mining company has a Trend Spotter buy signal, a Weighted Alpha of 94.00+ and gained 35.69% in the last year

The Chart of the Day belongs to Sibayne Gold Limited (SBGL).  I found the gold mining stock by using Barchart to sort today's All Time High list first for the highest technical buy signals, then I used the Flipchart feature to review the charts.  Since the Trend Spotter signaled a buy on 12/9 the stock gained 232.26%.

Sibanye Gold Limited is a gold mining company. It operates two gold mines: the Kloof Driefontein Complex (KDC) and the Beatrix gold mines. Sibanye Gold Limited is based in Houghton, South Africa.

The status of Barchart's Opinion trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 10 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com web site when you read this report.

Barchart technical indicators:

• 96% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 11 new highs and up 62.19% in the last month
• Relative Strength Index 73.79%
• Technical support level at 12.63
• Recently traded at 14.37 with a 50 day moving average of 8.94

Fundamental factors:

• Market Cap $3.29 billion
• Dividend yield 1.35%
• Revenue expected to grow 42.40% next year
• Earnings estimated to increase 264.30% next year and continue to compound at an annual rate of 31.50% a year for the next 5 years
• Wall Street analysts issued 1 strong buy, 2 buy and 1 hold recommendation on the stock

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