Barchart Morning Call
Barchart.com - Wed May 10, 6:41AM CDT
OVERNIGHT MARKETS AND NEWS
Jun E-mini S&Ps (ESM17 -0.13%) this morning are down -0.19% and European stocks are down -0.24%. U.S. stocks are weaker in the wake of President Trump's firing of FBI Director Comey on Tuesday afternoon that fuels speculation that these external factors may side-track the administration's tax reform and infrastructure spending plans. Losses were contained on strength in energy-producing stocks with Jun WTI crude oil (CLM17 +1.11%) up +1.18% after API data late Tuesday showed U.S. crude stockpiles fell -5.79 million bbl last week. Asian stocks settled mixed: Japan +0.29%, Hong Kong +0.51%, China -0.90%, Taiwan +0.53%, Australia +0.61%, Singapore closed for holiday, South Korea -1.22%, India +1.05%. China's Shanghai Stock Index fell to a new 3-3/4 month low as confidence in Chinese stocks wanes as the government steps up efforts to reduce risk in the financial sector. China's Insurance Regulatory Commission reiterated that it will scrutinize insurers' major stock purchases as well as property, overseas and alternative investments to limit risks. Japan's Nikkei Stock Index climbed to a 17-month high as exporter stocks rallied on improved earnings prospects after USD/JPY jumped to a 1-3/4 month high on Tuesday. Japanese stocks also garnered support on stronger economic data after the Japan Mar leading indicators composite index rose to its highest in 1-3/4 years.
The dollar index (DXY00 -0.07%) is down -0.10%. EUR/USD (^EURUSD) is down -0.06% at a 1-week low. USD/JPY (^USDJPY) is down -0.20%.
Jun 10-year T-note prices (ZNM17 +0.20%) are up +10.5 ticks.
The Japan Mar leading index CI rose +0.8 to 105.5, right on expectations and the highest in 1-3/4 years. The Mar coincident index fell -0.6 to 114.6, weaker than expectations of -0.6 to 114.7.
China Apr CPI rose +1.2% y/y, stronger than expectations of +1.1% y/y. Apr PPI rose +6.4% y/y, weaker than expectations of +6.7% y/y.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) weekly MBA mortgage applications ( previous -0.1% with purchase sub-index +4.2% and refi sub-index -4.7%), (2) Apr import price index (expected +0.1% m/m and +3.6% y/y, Mar -0.2% m/m and +4.2% y/y), (3) Boston Fed President Eric Rosengren (non-voter) speaks on the economy at the Lake Champlain Regional Chamber and Central Vermont Chamber of Commerce, (4) Treasury auctions $23 billion of 10-year T-notes, (5) Minneapolis Fed President Neel Kashkari (voter) holds Q&A at Minnesota Business Ethics Awards, (6) Apr monthly budget statement (expected $177.0 billion, Mar -$176.2 billion), (7) EIA Weekly Petroleum Status Report, (8) USDA May WASDE crop production.
Notable S&P 500 earnings reports today include: Whole Foods Market (consensus $0.37), Twenty-Century Fox (0.48), Symantec (0.28), Hologic (0.46), Coty (0.12), Mylan (0.92), Vulcan Materials (0.20), Cimarex Energy (0.87).
U.S. IPO's scheduled to price today: none.
Equity conferences: Wells Fargo Industrials Conference on Tue-Wed, Jefferies Global Technology Conference on Wed, Citi European Internet and Digital Conference on Wed, Citi Global Energy and Utilities Conference on Wed, 11th Annual Barrington Research Spring Investment Conference on Thu, Citi Boston Energy Conference on Thu, Deutsche Bank AutoTech Conference on Thu.
OVERNIGHT U.S. STOCK MOVERS
Disney (DIS +0.58%) slid nearly 3% in pre-market trading after it reported Q2 revenue of $13.3 billion, weaker than consensus of $13.5 billion.
NVIDIA (NVDA +0.17%) is up 11% in pre-market trading after it reported Q1 adjusted EPS of 85 cents, higher than consensus of 81 cents.
Mylan NV (MYL +1.69%) climbed nearly 3% in pre-market trading after it reported Q1 adjusted EPS of 93 cents, better than consensus of 92 cents.
Electronic Arts (EA +0.29%) gained over 2% in after-hours trading after it reported Q4 adjusted EPS of 85 cents, higher than consensus of 75 cents, and then said it sees Q1 adjusted EPS of 25 cents, better than consensus of 17 cents.
Priceline Group (PCLN +0.38%) fell over 3% in pre-market trading after it reported Q1 revenue of $2.42 billion, less than consensus of $2.45 billion, and then said it sees Q2 adjusted EPS of $13.30-$14.00, weaker than consensus of $14.99.
Jazz Pharmaceuticals PLC (JAZZ +1.07%) dropped 5% in after-hours trading after it reported Q1 adjusted EPS of $2.31, below consensus of $2.34.
Microchip Technology (MCHP +1.31%) rose 5% in after-hours trading after it reported Q3 adjusted EPS from continuing operations $1.16, better than consensus of $1.06.
Acacia Communications (ACIA +3.33%) dropped 14% in after-hours trading after it said it sees Q2 adjusted EPS of 22 cents-35 cents, well below consensus of 74 cents.
TripAdvisor (TRIP -0.23%) climbed 5% in after-hours trading after it announced that it will pull back from its struggling instant book feature.
Fossil Group (FOSL +4.49%) slumped over 15% in after-hours trading after reported Q1 comparable sales fell -11%, much weaker than consensus of -3.8%, and then lowered guidance on full-year adjusted EPS to 80 cents-$1.50 from a prior view of $1.00-$1.70.
Coherent (COHR +1.14%) jumped 7% in after-hours trading after it reported Q2 adjusted EPS of $2.91, well above consensus of $2.45.
Yelp (YELP -2.80%) plunged 30% in after-hours trading after it reported Q1 net revenue of $197.3 million, below consensus of $198.4 million, and then said it sees Q2 revenue of $202 million-$206 million, weaker than consensus of $215.3 million.
Nuance Communications (NUAN +0.39%) gained 2% in after-hours trading after it reported Q2 adjusted EPS of 43 cents, higher than consensus of 38 cents.
TrueCar (TRUE +0.58%) jumped 6% in after-hours trading after it reported Q1 revenue of $75.8 million, above consensus of $73.3 million, and then said it sees Q2 revenue of $79 million to $81 million, higher than consensus of $77.7 million.
Electro Scientific Industries (ESIO +4.20%) surged over 20% in after-hours trading after it reported Q4 adjusted EPS of 9 cents, better than consensus for a loss of -5 cents, and then said it sees Q1 adjusted EPS of 15 cents-20 cents, well above consensus of 3 cents.
MARKET COMMENTS
June E-mini S&Ps (ESM17 -0.13%) this morning are down -4.50 points (-0.19%). Tuesday's closes: S&P 500 -0.10%, Dow Jones -0.17%, Nasdaq +0.34%. The S&P 500 on Tuesday posted a fresh all-time high but fell back and closed slightly lower. Stocks were undercut by weakness in energy producing stocks as crude oil prices fell -1.18%. There were also heightened geopolitical tensions after a North Korean envoy said the country will proceed with a sixth nuclear test. Stocks were supported by the unexpected +61,000 increase in the U.S. Mar JOLTS job openings to 5.743 million, stronger than expectations of -18,000 to 5.725 million and the highest in 8 months.
June 10-year T-notes (ZNM17 +0.20%) this morning are up +10.5 ticks. Tuesday's closes: TYM7 -7.50, FVM7 -5.25. Jun 10-year T-notes on Tuesday tumbled to a 1-month low and closed lower on the stronger-than-expected U.S. Mar JOLTS job openings report and on hawkish comments by Kansas City Fed President George who said that the international backdrop poses less downside risk today and that slower U.S. Q1 growth is no reason to pause gradual rate hikes.
The dollar index (DXY00 -0.07%) this morning is down -0.097 (-0.10%). EUR/USD (^EURUSD) is down -0.0007 (-0.06%) at a 1-week low and USD/JPY (^USDJPY) is down -0.23 (-0.20%). Tuesday's closes: Dollar index +0.598 (+0.60%), EUR/USD -0.0050 (-0.46%), USD/JPY +0.72 (+0.64%). The dollar index on Tuesday climbed to a 2-week high and settled higher on weakness in the yen as USD/JPY rallied to a 1-3/4 month high after BOJ Governor Kuroda reiterated that the BOJ will continue with its QE program amid still-low inflation expectations. The dollar was also boosted by the 10-year T-note yield to a 1-month high, which improves the dollar's interest rate differentials.
June WTI crude oil prices (CLM17 +1.11%) this morning are up +54 cents (+1.18%) and June gasoline (RBM17 +0.60%) is +0.0076 (+0.51%). Tuesday's closes: Jun crude -0.55 (-1.18%), Jun gasoline -0.0283 (-1.86%). Jun crude oil and gasoline on Tuesday closed lower on the rally in the dollar index to a 2-week high and by increased crude output from Libya after Libya's National Oil Corp. said Libyan crude production has risen to 796,000 bpd, a 2-1/2 year high. Crude oil found support from expectations that Wednesday's EIA crude inventories will fall -2.0 million bbl.
GLOBAL EVENT CALENDAR05/10/2017
| Wednesday, May 10 | ||
| US | 0700 ET | Weekly MBA mortgage applications, previous -0.1% with purchase sub-index +4.2% and refi sub-index -4.7%. |
| 0830 ET | Apr import price index expected +0.1% m/m and +3.6% y/y, Mar -0.2% m/m and +4.2% y/y. Apr import prices ex-petroleum expected +0.1% m/m, Mar +0.2%. Apr export prices expected +0.2%, Mar +0.2% m/m and +3.6% y/y. | |
| 1030 ET | EIA Weekly Petroleum Status Report. | |
| 1200 ET | Boston Fed President Eric Rosengren (non-voter) speaks on the economy at the Lake Champlain Regional Chamber and Central Vermont Chamber of Commerce. | |
| 1200 ET | USDA May WASDE crop production. | |
| 1300 ET | Treasury auctions $23 billion of 10-year T-notes. | |
| 1320 ET | Minneapolis Fed President Neel Kashkari (voter) holds Q&A at Minnesota Business Ethics Awards. | |
| 1400 ET | Apr monthly budget statement expected $177.0 billion, Mar -$176.2 billion. | |
| Thursday, May 11 | ||
| US | 0625 ET | NY Fed President William Dudley gives speech entitled Benefits and Challenges of Globalization in Mumbai. |
| 0830 ET | Weekly initial unemployment claims expected +7,000 to 245,000, previous -19,000 to 238,000. Weekly continuing claims expected +16,000 to 1.980 million, previous -23,000 to 1.964 million. | |
| 0830 ET | Apr PPI final demand expected +0.2% m/m and +2.2% y/y, Mar -0.1% m/m and +2.3% y/y. Apr PPI ex food & energy expected +0.2% m/m and +1.6% y/y, Mar unch m/m and +1.6% y/y. | |
| 0830 ET | USDA weekly Export Sales. | |
| 1100 ET | Treasury announces amount of 10-year TIPS to be auctioned May 18 (previous $11 billion). | |
| 1300 ET | Treasury auctions $15 billion of 30-year T-bonds |
U.S. STOCK CALENDAR05/10/2017
| Company | Ticker | Time | Event Description | Period | Estimate |
|---|---|---|---|---|---|
| Coty Inc | COTY US | Bef-mkt | Q3 2017 Earnings Release | Q3 17 | 0.122 |
| Mylan NV | MYL US | Bef-mkt | Q1 2017 Earnings Release | Q1 17 | 0.923 |
| Vulcan Materials Co | VMC US | Bef-mkt | Q1 2017 Earnings Release | Q1 17 | 0.196 |
| Cimarex Energy Co | XEC US | Bef-mkt | Q1 2017 Earnings Release | Q1 17 | 0.866 |
| Coty Inc | COTY US | 08:00 | Q3 2017 Earnings Call | Q3 17 | |
| Ingersoll-Rand PLC | IR US | 08:00 | Investor Day - Day 2 | ||
| TripAdvisor Inc | TRIP US | 8:30:00 AM | Q1 2017 Earnings Call | Q1 17 | |
| Nasdaq Inc | NDAQ US | 08:30 | Annual General Meeting | ||
| Simon Property Group Inc | SPG US | 08:30 | Annual General Meeting | ||
| CVS Health Corp | CVS US | 09:00 | Annual General Meeting | ||
| Anadarko Petroleum Corp | APC US | 09:00 | Annual General Meeting | ||
| Dominion Resources Inc/VA | D US | 09:30 | Annual General Meeting | ||
| Mylan NV | MYL US | 10:00 | Q1 2017 Earnings Call | Q1 17 | |
| Regency Centers Corp | REG US | 11:00 | Q1 2017 Earnings Call | Q1 17 | |
| Vulcan Materials Co | VMC US | 11:00 | Q1 2017 Earnings Call | Q1 17 | |
| Xylem Inc/NY | XYL US | 11:00 | Annual General Meeting | ||
| Cimarex Energy Co | XEC US | 11:00 | Q1 2017 Earnings Call | Q1 17 | |
| Kinder Morgan Inc/DE | KMI US | 11:00 | Annual General Meeting | ||
| Murphy Oil Corp | MUR US | 11:00 | Annual General Meeting | ||
| Varian Medical Systems Inc | VAR US | 11:30 | Investor Day | ||
| Skyworks Solutions Inc | SWKS US | Annual General Meeting | |||
| Kohl's Corp | KSS US | Annual General Meeting | |||
| Alexion Pharmaceuticals Inc | ALXN US | Annual General Meeting | |||
| Gilead Sciences Inc | GILD US | 13:00 | Annual General Meeting | ||
| NVIDIA Corp | NVDA US | 15:00 | Investor Day | ||
| Twenty-First Century Fox Inc | FOXA US | 16:00 | Q3 2017 Earnings Release | Q3 17 | 0.48 |
| Whole Foods Market Inc | WFM US | Aft-mkt | Q2 2017 Earnings Release | Q2 17 | 0.368 |
| Symantec Corp | SYMC US | Aft-mkt | Q4 2017 Earnings Release | Q4 17 | 0.283 |
| Hologic Inc | HOLX US | Aft-mkt | Q2 2017 Earnings Release | Q2 17 | 0.46 |
| Twenty-First Century Fox Inc | FOXA US | 16:30 | Q3 2017 Earnings Call | Q3 17 | |
| Hologic Inc | HOLX US | 16:30 | Q2 2017 Earnings Call | Q2 17 | |
| Whole Foods Market Inc | WFM US | 17:00 | Q2 2017 Earnings Call | Q2 17 | |
| Microsoft Corp | MSFT US | 17:00 | Financial Analyst Briefing | ||
| Symantec Corp | SYMC US | 17:00 | Q4 2017 Earnings Call | Q4 17 |
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