Barchart Morning Call
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OVERNIGHT MARKETS AND NEWS
Jun E-mini S&Ps (ESM17 +0.27%) this morning are up +0.27% at a new record nearest-futures high and extended Wednesday's rally after Wednesday afternoon's minutes of the May 2-3 FOMC meeting indicated policy makers wanted more evidence that recent weakness in economic growth is transitory before raising interest rates further. Global stocks rallied on the dovish FOMC meeting minutes with European stocks up +0.29% as market anxiety has fallen as well and is another supportive factor for stock prices after the VIX volatility index fell for a sixth day to a 2-week low. Jul WTI crude oil climbed to a 1-month high after OPEC was said to agree to extend its production cuts for another 9 months, although prices sold-off on disappointment that they didn't cut further and Jul WTI crude (CLN17 -1.27%) is now down -1.71% on fund liquidation. Asian stocks settled higher: Japan +0.36%, Hong Kong +0.80%, China +1.43%, Taiwan +0.64%, Australia +0.36%, Singapore +0.10%, South Korea +1.16%, India +1.48%. South Korea's Kospi Stock Index posted a new all-time high, while China's Shanghai Composite and Japan's Nikkei Stock Index rallied to 1-week highs on carry-over support from Wednesday's rally in U.S. equities. Chinese stocks also rose on reports that state-backed funds were buying shares.
The dollar index (DXY00 -0.09%) is down -0.10%. EUR/USD (^EURUSD) is down -0.02%. USD/JPY (^USDJPY) is up +0.30%.
Jun 10-year T-note prices (ZNM17 +0.06%) are up +1.5 ticks.
Speaking in Tokyo, Chicago Fed President Evans (voter) said the U.S. has essentially returned to full employment, although "stubborn" inflation has been slow to hit target.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) weekly initial unemployment claims (expected +6,000 to 238,000, previous -4,000 to 232,000) and continuing claims (expected +27,000 to 1.925 million, previous -22,000 to 1.898 million), (2) Apr wholesale inventories (expected +0.2%, Mar -0.1%), (3) Fed Governor Lael Brainard takes part in a discussion on the global economy at the Center for Global Development’s Voices of Experience, (4) May Kansas City Fed manufacturing activity (expected +3 to 10, Apr -13 to 7), (5) Treasury auctions $28 billion of 7-year T-notes, (6) St. Louis Fed President James Bullard (non-voter) speaks on the U.S. economy and monetary policy at Keio University in Tokyo, (7) OPEC meeting, (8) USDA weekly Export Sales.
Notable Russell 2000 earnings reports today include: Best Buy (consensus $0.40), Dollar Tree (0.99), Hormel Foods (0.40), Patterson Cos (0.65), Burlington Stores (0.70), Intl Game Technology (0.47), Medtronic (1.31), Signet Jewelers (1.64), Toro (1.04), GameStop (0.53), Marvell Technology (0.21), Lions Gate Entertainment (0.21), Ulta Beauty (1.80).
U.S. IPO's scheduled to price today: none.
Equity conferences: UBS Global Health Care Conference on Mon-Thu; UBS Auto & Auto Supplier 1x1 Conference on Thu.
OVERNIGHT U.S. STOCK MOVERS
Best Buy (BBY -2.19%) jumped 10% in pre-market trading after it reported Q1 adjusted EPS of 60 cents, well above consensus of 40 cents, as Q1 enterprise comparable sales unexpectedly rose +1.6%, better than expectations of a -1.5% decline.
Chipotle Mexican Grill (CMB) was upgraded to 'Buy' from 'Hold' at Argus Research with a price target of $550.
IHS Markit Ltd (INFO +0.34%) rose nearly 5% in after-hours trading when it was announced that it will replace Tegna in the S&P 500 before the open of trading on Friday, June 2.
Independence Realty Trust (IRT +0.54%) climbed 4% in after-hours trading when it was announced that it will replace Ultratech in the S&P SmallCap 600 before the open of trading on Wednesday, May 30.
PVH Corp (PVH -0.33%) rose 3% in after-hours trading after it reported Q1 adjusted EPS of $1.65, better than consensus of $1.60, and then said it sees full-year adjusted EPS of $7.40 to $7.50, above consensus of $6.76.
Williams-Sonoma (WSM +1.10%) jumped 8% in after-hours trading after it reported Q1 adjusted EPS of 51 cents, above consensus of 49 cents, and said it sees Q2 revenue of $1.20 billion to $1.23 billion, higher than consensus of $1.19 billion.
Live Nation (LYV -0.03%) was initiated with a 'Buy' at Guggenheim Securities with a 12-month target price of $40.
Aerie Pharmaceuticals (AERI -0.74%) surge 25% in after-hours trading after it said it expects to submit an NDA for its Roclatan after it achieved primary efficacy endpoint in its Phase 3 "Mercury 2" study for treatment of patients with glaucoma and other eye diseases.
Sun Communities (SUI +0.75%) lost almost 2% in after-hours trading after it announced that it had commenced an underwritten public offering of 3.5 million shares of its common stock.
Radius Health (RDUS +0.57%) gained over 2% in after-hours trading after it announced positive results from a 24-month ActiveExtend study for its Tymlos in postmenopausal women with osteoporosis.
Bank of the Ozarks (OZRK -1.90%) fell 5% in after-hours trading after it announced an underwritten registered public offering of 6.6 million shares of its common stock.
Guess? (GES -0.80%) jumped over 13% in after-hours trading after it said Q1 Americas retail comparable sales including e-commerce fell -15%, a smaller decline than expectations of -16.5%, and then raised guidance on full-year adjusted EPS to 34 cents-44 cents from a prior view of 28 cents-40 cents.
Pure Storage (PSTG -0.28%) rallied 15% in after-hours trading after it reported Q1 revenue of $182.6 million, higher than consensus of $175.9 million, and said it sees Q2 revenue of $214 million-$222 million, the midpoint well above consensus of $214.14 million.
Costamare (CMRE -2.14%) dropped 9% in after-hours trading after it announced that it plans a public offering of 12.5 million shares of its common stock.
MARKET COMMENTS
June E-mini S&Ps (ESM17 +0.27%) this morning are up +6.50 points (+0.27%) at a new record nearest-futures high. Wednesday's closes: S&P 500 +0.25%, Dow Jones +0.36%, Nasdaq +0.47%. The S&P 500 on Wednesday rose to a 1-week high and closed higher on a slightly dovish interpretation of the May 2-3 FOMC minutes, which stated that most policy makers felt "it would be prudent" to wait to see if recent economic weakness was only temporary. Stocks were also boosted by the +6.50 tick rally in June T-notes.
June 10-year T-notes (ZNM17 +0.06%) this morning are up +1.5 ticks. Wednesday's closes: TYM7 +6.50, FVM7 +4.50. Jun 10-year T-notes on Wednesday closed higher on strong demand for the Treasury's $34 billion 5-year T-note auction that had a bid-to-cover ratio of 2.67, higher than the 12-auction average of 2.43. T-notes were also boosted by the news in the FOMC minutes that the Fed will start off slowly with its balance sheet reduction process.
The dollar index (DXY00 -0.09%) this morning is down -0.096 (-0.10%). EUR/USD (^EURUSD) is down -0.0002 (-0.02%) and USD/JPY (^USDJPY) is up +0.34 (+0.30%). Wednesday's closes: Dollar index -0.113 (-0.12%), EUR/USD +0.0036 (+0.32%), USD/JPY -0.29 (-0.26%). The dollar index on Wednesday closed lower on the weaker-than-expected U.S. Apr existing home sales report of -2.3% and the slightly dovish interpretation of the May 2-3 FOMC minutes.
July WTI crude oil prices (CLN17 -1.27%) this morning are down -88 cents (-1.71%) and July gasoline (RBN17 -0.75%) is -0.0187 (-1.13%). Wednesday's closes: Jul crude -0.11 (-0.21%), Jul gasoline -0.0084 (-0.51%). Jul crude oil and gasoline on Wednesday fell back from 1-month highs and closed lower. Crude oil prices were undercut by the +0.2% increase in U.S. crude production in the week of May 19 to 9.32 million bpd, a 1-3/4 year high, and by the -787,000 bbl decline in EIA gasoline inventories, a smaller drop than expectations of -1.075 million bbl. Crude oil prices were boosted by the -4.43 million bbl decline in EIA crude inventories (vs expectations of -2.0 million bbl) and by the -741,000 bbl decline in crude supplies at Cushing, OK, delivery point of WTI futures.
GLOBAL EVENT CALENDAR05/25/2017
| Thursday, May 25 | ||
| US | 0830 ET | Weekly initial unemployment claims expected +6,000 to 238,000, previous -4,000 to 232,000. Weekly continuing claims expected +27,000 to 1.925 million, previous -22,000 to 1.898 million. |
| 0830 ET | Apr wholesale inventories expected +0.2%, Mar -0.1%. Apr retail inventories, Mar +0.4%. | |
| 0830 ET | USDA weekly Export Sales. | |
| 1000 ET | Fed Governor Lael Brainard takes part in a discussion on the global economy at the Center for Global Developments Voices of Experience. | |
| 1100 ET | May Kansas City Fed manufacturing activity expected +3 to 10, Apr -13 to 7. | |
| 1300 ET | Treasury auctions $28 billion of 7-year T-notes. | |
| 2200 ET | St. Louis Fed President James Bullard (non-voter) speaks on the U.S. economy and monetary policy at Keio University in Tokyo. | |
| n/a | OPEC meeting. | |
| Friday, May 26 | ||
| US | 0830 ET | Revised Q1 GDP expected +0.9% (q/q annualized), previous +0.7% (q/q annualized). Q1 personal consumption expected +0.4%, previous +0.3%. Q1 GDP price index expected unrevised at +2.3%. Q1 core PCE deflator expected unrevised at +2.0% q/q. |
| 0830 ET | Apr durable goods orders expected -1.5% and +0.4% ex transportation, Mar +0.9% and unch ex transportation. Apr capital goods orders non-defense ex-aircraft expected +0.5%, Mar +0.5%. | |
| 1000 ET | Revised-May University of Michigan U.S. consumer sentiment expected -0.2 to 97.5, prelim-May +0.7 to 97.7. | |
| 1200 ET | USDA Apr Cattle on Feed. |
U.S. STOCK CALENDAR05/25/2017
| Company | Ticker | Time | Event Description | Period | Estimate |
|---|---|---|---|---|---|
| Voya Financial Inc | VOYA US | 01:00 | Annual General Meeting | ||
| Hormel Foods Corp | HRL US | Bef-mkt | Q2 2017 Earnings Release | Q2 17 | 0.399 |
| Patterson Cos Inc | PDCO US | Bef-mkt | Q4 2017 Earnings Release | Q4 17 | 0.645 |
| Burlington Stores Inc | BURL US | Bef-mkt | Q1 2018 Earnings Release | Q1 18 | 0.702 |
| International Game Technology PLC | IGT US | Bef-mkt | Q1 2017 Earnings Release | Q1 17 | 0.474 |
| Medtronic PLC | MDT US | 06:45 | Q4 2017 Earnings Release | Q4 17 | 1.313 |
| Best Buy Co Inc | BBY US | 07:00 | Q1 2018 Earnings Release | Q1 18 | 0.404 |
| Signet Jewelers Ltd | SIG US | 07:00 | Q1 2018 Earnings Release | Q1 18 | 1.64 |
| White Mountains Insurance Group Ltd | WTM US | 07:00 | Annual General Meeting | ||
| Dollar Tree Inc | DLTR US | 07:30 | Q1 2018 Earnings Release | Q1 18 | 0.986 |
| Best Buy Co Inc | BBY US | 08:00 | Q1 2018 Earnings Call | Q1 18 | |
| Medtronic PLC | MDT US | 08:00 | Q4 2017 Earnings Call | Q4 17 | |
| International Game Technology PLC | IGT US | 08:00 | Q1 2017 Earnings Call | Q1 17 | |
| DaVita Inc | DVA US | 08:30 | Capital Markets Day | ||
| National Retail Properties Inc | NNN US | 08:30 | Annual General Meeting | ||
| Signet Jewelers Ltd | SIG US | 08:30 | Q1 2018 Earnings Call | Q1 18 | |
| Burlington Stores Inc | BURL US | 08:30 | Q1 2018 Earnings Call | Q1 18 | |
| Qorvo Inc | QRVO US | 08:30 | Investor Day | ||
| Toro Co/The | TTC US | 08:30 | Q2 2017 Earnings Release | Q2 17 | 1.037 |
| Hormel Foods Corp | HRL US | 09:00 | Q2 2017 Earnings Call | Q2 17 | |
| Conduent Inc | CNDT US | 09:00 | Annual General Meeting | ||
| Annaly Capital Management Inc | NLY US | 09:00 | Annual General Meeting | ||
| Norwegian Cruise Line Holdings Ltd | NCLH US | 09:00 | Annual General Meeting | ||
| PVH Corp | PVH US | 09:00 | Q1 2018 Earnings Call | Q1 18 | |
| Arconic Inc | ARNC US | 09:00 | Annual General Meeting | ||
| Dollar Tree Inc | DLTR US | 09:00 | Q1 2018 Earnings Call | Q1 18 | |
| Interpublic Group of Cos Inc/The | IPG US | 09:30 | Annual General Meeting | ||
| Retail Properties of America Inc | RPAI US | 10:00 | Annual General Meeting | ||
| Chipotle Mexican Grill Inc | CMG US | 10:00 | Annual General Meeting | ||
| Patterson Cos Inc | PDCO US | 10:00 | Q4 2017 Earnings Call | Q4 17 | |
| Telephone & Data Systems Inc | TDS US | 10:00 | Annual General Meeting | ||
| Bunge Ltd | BG US | 10:00 | Annual General Meeting | ||
| Unum Group | UNM US | 10:00 | Annual General Meeting | ||
| Flowers Foods Inc | FLO US | 11:00 | Annual General Meeting | ||
| Level 3 Communications Inc | LVLT US | 11:00 | Annual General Meeting | ||
| Omnicom Group Inc | OMC US | 11:00 | Annual General Meeting | ||
| AMERCO | UHAL US | 11:00 | Q4 2017 Earnings Call | Q4 17 | |
| Copart Inc | CPRT US | 11:00 | Q3 2017 Earnings Call | Q3 17 | |
| Raytheon Co | RTN US | 11:00 | Annual General Meeting | ||
| Toro Co/The | TTC US | 11:00 | Q2 2017 Earnings Call | Q2 17 | |
| Tableau Software Inc | DATA US | 11:30 | Analyst Day | ||
| Humana Inc | HUM US | Investors Meeting | |||
| Quality Care Properties Inc | QCP US | Annual General Meeting | |||
| World Fuel Services Corp | INT US | Annual General Meeting | |||
| Navient Corp | NAVI US | Annual General Meeting | |||
| Juniper Networks Inc | JNPR US | 12:00 | Annual General Meeting | ||
| Envision Healthcare Corp | EVHC US | Annual General Meeting | |||
| Rowan Cos Plc | RDC US | Annual General Meeting | |||
| Acadia Healthcare Co Inc | ACHC US | Annual General Meeting | |||
| Cinemark Holdings Inc | CNK US | Annual General Meeting | |||
| Leucadia National Corp | LUK US | Annual General Meeting | |||
| BlackRock Inc | BLK US | Annual General Meeting | |||
| VeriSign Inc | VRSN US | Annual General Meeting | |||
| Tiffany & Co | TIF US | Annual General Meeting | |||
| Lamar Advertising Co | LAMR US | Annual General Meeting | |||
| Fitbit Inc | FIT US | Annual General Meeting | |||
| Equifax Inc | EFX US | Investor Meeting | |||
| Allstate Corp/The | ALL US | 12:00 | Annual General Meeting | ||
| OneMain Holdings Inc | OMF US | 14:00 | Annual General Meeting | ||
| Brocade Communications Systems Inc | BRCD US | 16:00 | Q2 2017 Earnings Release | Q2 17 | 0.194 |
| Veeva Systems Inc | VEEV US | Aft-mkt | Q1 2018 Earnings Release | Q1 18 | 0.176 |
| Splunk Inc | SPLK US | Aft-mkt | Q1 2018 Earnings Release | Q1 18 | (0.045) |
| Ulta Beauty Inc | ULTA US | Aft-mkt | Q1 2018 Earnings Release | Q1 18 | 1.801 |
| Lions Gate Entertainment Corp | LGF/A US | Aft-mkt | Q4 2017 Earnings Release | Q4 17 | 0.212 |
| GameStop Corp | GME US | Aft-mkt | Q1 2018 Earnings Release | Q1 18 | 0.532 |
| Marvell Technology Group Ltd | MRVL US | Aft-mkt | Q1 2018 Earnings Release | Q1 18 | 0.213 |
| Nutanix Inc | NTNX US | Aft-mkt | Q3 2017 Earnings Release | Q3 17 | (0.448) |
| DXC Technology Co | DXC US | 16:15 | Q4 2017 Earnings Release | Q4 17 | 0.844 |
| Costco Wholesale Corp | COST US | 16:15 | Q3 2017 Earnings Release | Q3 17 | 1.308 |
| Veeva Systems Inc | VEEV US | 16:30 | Q1 2018 Earnings Call | Q1 18 | |
| Splunk Inc | SPLK US | 16:30 | Q1 2018 Earnings Call | Q1 18 | |
| Nutanix Inc | NTNX US | 16:30 | Q3 2017 Earnings Call | Q3 17 | |
| Marvell Technology Group Ltd | MRVL US | 16:45 | Q1 2018 Earnings Call | Q1 18 | |
| DXC Technology Co | DXC US | 17:00 | Q4 2017 Earnings Call | Q4 17 | |
| Ulta Beauty Inc | ULTA US | 17:00 | Q1 2018 Earnings Call | Q1 18 | |
| Lions Gate Entertainment Corp | LGF/A US | 17:00 | Q4 2017 Earnings Call | Q4 17 | |
| Costco Wholesale Corp | COST US | 17:00 | Q3 2017 Earnings Call | Q3 17 | |
| GameStop Corp | GME US | 17:00 | Q1 2018 Earnings Call | Q1 18 |
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