Barchart Morning Call
Barchart.com - Tue Aug 1, 6:32AM CDT
OVERNIGHT MARKETS AND NEWS
Sep E-mini S&Ps (ESU17 +0.18%) this morning are up +0.23% and European stocks are up +0.50% as strong economic data along with better than expected company quarterly earnings results pushes stock prices higher. Eurozone Q2 GDP grew at a +2.1% y/y pace, the strongest in 6-years, while BP Plc climbed 3% after it reported Q2 adjusted net income of $684 million, better than expectations of $518.4 million. Signs of strength in the German economy, Europe's largest, is also benefiting European stocks after German Jul unemployment fell more than expected and the unemployment rate remained at a record low of 5.7%. Asian stocks settled higher: Japan +0.30%, Hong Kong +0.79%, China +0.60%, Taiwan +0.10%, Australia +0.91%, Singapore +0.26%, South Korea +0.78%, India +0.19%. Stronger-than-expected Chinese manufacturing data boosted the Shanghai Composite to a 3-3/4 month high after the China Jul Caixin manufacturing PMI expanded at its fastest pace in 4-months.
The dollar index (DXY00 +0.11%) is up +0.13%. EUR/USD (^EURUSD) is down -0.23%. USD/JPY (^USDJPY) is up +0.15%.
German Jul unemployment fell -9,000 to 2.537 million, better than expectations of -5,000. The Jul unemployment rate was unch at 5.7%, right on expectations and the lowest level since German reunification.
Eurozone Q2 GDP grew at a +0.6% q/q and +2.1% y/y pace, right on expectations with the +2.1% y/y gain the fastest year-on-year increase in 6-years.
The China Jul Caixin (flash) manufacturing PMI rose +0.7 to 51.1, stronger than expectations of no change at 50.4 and the fastest pace of expansion in 4 months.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) Jun personal spending (expected +0.1%, May +0.1%) and Jun personal income (expected +0.4%, May +0.4%), (2) Jun PCE deflator (expected unch m/m and +1.3% y/y, May -0.1% m/m and +1.4% y/y) and Jun core PCE deflator (expected +0.1% m/m and +1.4% y/y, May +0.1% m/m and +1.4% y/y), (3) revised Jul Markit U.S. manufacturing index (expected -0.1 to 53.1, prelim-July +1.2 to 53.2), (4) Jul ISM manufacturing index (expected -1.3 to 56.5, Jun +2.9 to 57.8), (5) Jun construction spending (expected +0.4% m/m, May unch m/m), (6) Jul total vehicle sales (expected 16.80 million, Jun 16.41 million).
Notable S&P 500 earnings reports today include: Apple (consensus $1.57), ADM (0.52), Phillips 66 (1.01), Pfizer (0.66), Under Armour (-0.06), CME Group (1.21), Cummins (2.58), Boston Properties (1.61), Allstate (0.88).
U.S. IPO's scheduled to price today: Clementia Pharmaceuticals (CMTA).
Equity conferences this week: Keefe, Bruyette, & Woods Community Bank Investor Conference on Tue, Wells Fargo Boston Biotech Corporate Access Day on Tue, UBS Transport Conference on Thu.
OVERNIGHT U.S. STOCK MOVERS
Cognex (CGNX +0.27%) rallied over 8% in after-hours trading after it reported Q2 EPS from continuing operations of 63 cents, higher than consensus of 53 cents, and then said it sees Q3 revenue of $250 million-$260 million, above consensus of $179.4 million.
CME Group (CME +1.10%) reported Q2 revenue of $924.6 million, below consensus of $930.8 million.
U.S. Silica Holdings (SLCA +0.41%) tumbled over 9% in after-hours trading after it reported Q2 revenue of $290.5 million, less than consensus of $315.9 million.
Texas Roadhouse (TXRH -0.84%) jumped over 7% in after-hours trading after it reported Q2 revenue of $566.3 million, higher than consensus of $563.3 million.
HealthSouth (HLS -0.40%) rose over 3% in after-hours trading after it reported Q2 adjusted EPS of 71 cents, better than consensus of 68 cents, and then said it sees full-year operating revenue of $3.88 billion-$3.95 billion, higher than consensus of $3.87 billion.
Allison Transmission Holdings (ALSN +0.43%) rallied 7% in after-hours trading after it reported Q2 EPS of 63 cents, well above consensus of 48 cents.
GrubHub (GRUB -1.09%) climbed 3% in pre-market trading after it signed a commercial strategic partnership to power food delivery for Groupon in more than 1,100 U.S. cities. Groupon (GRPN -1.05%) also rose 3% in pre-market trading on the news.
Trine Group (TNET +3.61%) jumped nearly 5% in after-hours trading after it reported Q2 adjusted EPS of 52 cents, well above consensus of 27 cents.
Owens-Illinois (OI -0.25%) gained nearly 3% in after-hours trading after it reported Q2 net sales of $1.8 billion, better than consensus of $1.77 billion, and then said it sees full-year adjusted EPS of $2.55 to $2.65, higher than consensus of $2.51.
TimkenSteel (TMST +1.08%) fell over 5% in after-hours trading after it forecast Q3 Ebitda to be between $10 million-$20 million, less than $24.7 million in Q2 due to pension-settlement expense.
Nautilus (NLS +0.28%) dropped over 6% in after-hours trading after it reported Q2 gross margins of 49.8%, below consensus of 52.2%.
Pandora Media (P -5.49%) rose nearly 3% in after-hours trading after it reported Q2 revenue of $376.8 million, better than consensus of $367.4 million.
Amkor Technology (AMKR -1.14%) dropped over 5% in after-hours trading after it forecast Q3 net sales of $1.04 billion-$1.12 billion, below consensus of $1.16 billion.
Harmonic (HLIT +2.50%) slid nearly 4% in after-hours trading after it said it sees Q3 net revenue of $80 million to $90 million, below consensus of $96.4 million.
MARKET COMMENTS
Sep S&P 500 E-mini stock futures (ESU17 +0.18%) this morning are up +5.75 points (+0.23%). Monday's closes: S&P 500 -0.07%, Dow Jones +0.28%, Nasdaq -0.48%. The S&P 500 on Monday closed lower on the Jul Chicago PMI report of -6.8 to 58.9 (weaker than expectations of -5.7 to 60.0) and on weakness in technology stocks. Stocks were supported by the +1.5% increase in U.S. Jun pending home sales (stronger than expectations of +1.0%) and by strength in mining stocks after copper prices rose to a 2-year high.
Sep 10-year T-note prices (ZNU17 -0.02%) this morning are down -2 ticks. Monday's closes: TYU7 -2, FVU7 -0.25. Sep 10-year T-notes on Monday closed lower on the stronger-than-expected U.S. Jun pending home sales report and on the strength in stocks that reduced the safe-haven demand for T-notes. T-notes found support from the weaker-than-expected U.S. Jul Chicago PMI.
The dollar index (DXY00 +0.11%) this morning is up +0.122 (+0.13%). EUR/USD (^EURUSD) is down -0.0027 (-0.23%) and USD/JPY (^USDJPY) is up +0.17 (+0.15%). Monday's closes: Dollar Index -0.396 (-0.42%), EUR/USD +0.0091 (+0.77%), USD/JPY -0.42 (-0.38%). The dollar index on Monday tumbled to a 13-1/4 month low and closed lower on continued concern about White House turmoil and on strength in EUR/USD which soared to a 2-1/2 year high on speculation the ECB is closer to tapering QE after Eurozone Jul core CPI rose by +1.2% y/y, stronger than expectations of +1.1% y/y.
Sep crude oil (CLU17 -0.36%) this morning is down -2 cents (-0.04%). Sep gasoline (RBU17 -0.33%) is down -0.0004(-0.02%). Monday's closes: Sep WTI crude +0.46 (+0.93%), Sep gasoline +0.0308 (+1.87%). Sep crude oil and gasoline on Monday closed higher with Sep crude at a 2-month high and Sep gasoline at a 3-1/2 month high. Crude oil prices were supported by the fall in the dollar index to a 13-1/4 month low and by a meeting scheduled for next week in Abu Dhabi between OPEC and non-OPEC oil producers to discuss ways to strengthen compliance with crude oil production cuts. Crude oil prices were also supported by the rally in the crack spread to a 1-week high, which may boost crude demand from refiners to refine into gasoline.
GLOBAL EVENT CALENDAR08/01/2017
| Tuesday, Aug 1 | ||
| US | 0830 ET | Jun personal spending expected +0.1%, May +0.1%. Jun personal income expected +0.4%, May +0.4%. |
| 0830 ET | Jun PCE deflator expected unch m/m and +1.3% y/y, May -0.1% m/m and +1.4% y/y. Jun core PCE deflator expected +0.1% m/m and +1.4% y/y, May +0.1% m/m and +1.4% y/y. | |
| 0945 ET | Revised Jul Markit U.S. manufacturing index expected -0.1 to 53.1, prelim-July +1.2 to 53.2. | |
| 1000 ET | Jul ISM manufacturing index expected -1.3 to 56.5, Jun +2.9 to 57.8. Jul ISM new orders, Jun +4.0 to 63.5. Jul ISM employment, Jun +3.7 to 57.2. Jul ISM prices paid expected +0.6 to 55.6, Jun -5.5 to 55.0. | |
| 1000 ET | Jun construction spending expected +0.4% m/m, May unch m/m. | |
| n/a | Jul total vehicle sales expected 16.80 million, Jun 16.41 million. Jul domestic vehicle sales expected 13.05 million, Jun 12.79 million. | |
| Wednesday, Aug 2 | ||
| US | 0700 ET | Weekly MBA mortgage applications, previous +0.4%, purchase sub-index -2.2%, refi sub-index +3.4%. |
| 0815 ET | Jul ADP employment change expected +190,000, Jun +158,000. | |
| 0830 ET | Treasury announces amount of 3-year T-notes (previous $24 billion), 10-year T-notes (previous $20 billion) and 30-year T-bonds (previous $12 billion) to be auctioned Aug 8-10 in the Treasurys quarterly refunding. | |
| 1030 ET | EIA Weekly Petroleum Status Report. | |
| 1200 ET | Cleveland Fed President Lorretta Mester (non-voter) is keynote speaker at the Community Bankers Association of Ohio annual convention. | |
| 1530 ET | San Francisco Fed President John Williams (non-voter) speaks at an event in Las Vegas on Monetary Policys Role in Fostering Sustainable Growth. |
U.S. STOCK CALENDAR08/01/2017
| Company | Ticker | Time | Event Description | Period | Estimate |
|---|---|---|---|---|---|
| Simon Property Group Inc | SPG US | Bef-mkt | Q2 2017 Earnings Release | Q2 17 | 2.439 |
| Emerson Electric Co | EMR US | Bef-mkt | Q3 2017 Earnings Release | Q3 17 | 0.683 |
| Martin Marietta Materials Inc | MLM US | Bef-mkt | Q2 2017 Earnings Release | Q2 17 | 2.363 |
| HCP Inc | HCP US | Bef-mkt | Q2 2017 Earnings Release | Q2 17 | 0.468 |
| Archer-Daniels-Midland Co | ADM US | Bef-mkt | Q2 2017 Earnings Release | Q2 17 | 0.516 |
| Air Products & Chemicals Inc | APD US | Bef-mkt | Q3 2017 Earnings Release | Q3 17 | 1.593 |
| Eaton Corp PLC | ETN US | Bef-mkt | Q2 2017 Earnings Release | Q2 17 | 1.157 |
| Phillips 66 | PSX US | Bef-mkt | Q2 2017 Earnings Release | Q2 17 | 1.009 |
| Harris Corp | HRS US | 06:30 | Q4 2017 Earnings Release | Q4 17 | 1.487 |
| Pfizer Inc | PFE US | 06:45 | Q2 2017 Earnings Release | Q2 17 | 0.657 |
| Xerox Corp | XRX US | 06:45 | Q2 2017 Earnings Release | Q2 17 | 0.798 |
| Under Armour Inc | UAA US | 06:55 | Q2 2017 Earnings Release | Q2 17 | (0.061) |
| Xylem Inc/NY | XYL US | 06:55 | Q2 2017 Earnings Release | Q2 17 | 0.569 |
| CME Group Inc | CME US | 07:00 | Q2 2017 Earnings Release | Q2 17 | 1.205 |
| IDEXX Laboratories Inc | IDXX US | 07:00 | Q2 2017 Earnings Release | Q2 17 | 0.848 |
| Incyte Corp | INCY US | 07:00 | Q2 2017 Earnings Release | Q2 17 | (0.05) |
| Mosaic Co/The | MOS US | 07:00 | Q2 2017 Earnings Release | Q2 17 | 0.229 |
| Cummins Inc | CMI US | 07:30 | Q2 2017 Earnings Release | Q2 17 | 2.577 |
| Royal Caribbean Cruises Ltd | RCL US | 08:00 | Q2 2017 Earnings Release | Q2 17 | 1.666 |
| Ecolab Inc | ECL US | 08:15 | Q2 2017 Earnings Release | Q2 17 | 1.125 |
| CME Group Inc | CME US | 08:30 | Q2 2017 Earnings Call | Q2 17 | |
| Under Armour Inc | UAA US | 08:30 | Q2 2017 Earnings Call | Q2 17 | |
| IDEXX Laboratories Inc | IDXX US | 08:30 | Q2 2017 Earnings Call | Q2 17 | |
| Harris Corp | HRS US | 08:30 | Q4 2017 Earnings Call | Q4 17 | |
| Xylem Inc/NY | XYL US | 09:00 | Q2 2017 Earnings Call | Q2 17 | |
| Archer-Daniels-Midland Co | ADM US | 09:00 | Q2 2017 Earnings Call | Q2 17 | |
| Mosaic Co/The | MOS US | 09:00 | Q2 2017 Earnings Call | Q2 17 | |
| Simon Property Group Inc | SPG US | 10:00 | Q2 2017 Earnings Call | Q2 17 | |
| Cummins Inc | CMI US | 10:00 | Q2 2017 Earnings Call | Q2 17 | |
| Pfizer Inc | PFE US | 10:00 | Q2 2017 Earnings Call | Q2 17 | |
| Incyte Corp | INCY US | 10:00 | Q2 2017 Earnings Call | Q2 17 | |
| Air Products & Chemicals Inc | APD US | 10:00 | Q3 2017 Earnings Call | Q3 17 | |
| Royal Caribbean Cruises Ltd | RCL US | 10:00 | Q2 2017 Earnings Call | Q2 17 | |
| Vornado Realty Trust | VNO US | 10:00 | Q2 2017 Earnings Call | Q2 17 | |
| Eaton Corp PLC | ETN US | 10:00 | Q2 2017 Earnings Call | Q2 17 | |
| Xerox Corp | XRX US | 10:00 | Q2 2017 Earnings Call | Q2 17 | |
| Martin Marietta Materials Inc | MLM US | 11:00 | Q2 2017 Earnings Call | Q2 17 | |
| HCP Inc | HCP US | 12:00 | Q2 2017 Earnings Call | Q2 17 | |
| Phillips 66 | PSX US | 12:00 | Q2 2017 Earnings Call | Q2 17 | |
| Ecolab Inc | ECL US | 13:00 | Q2 2017 Earnings Call | Q2 17 | |
| Emerson Electric Co | EMR US | 14:00 | Q3 2017 Earnings Call | Q3 17 | |
| Alexandria Real Estate Equities Inc | ARE US | 15:00 | Q2 2017 Earnings Call | Q2 17 | |
| FMC Corp | FMC US | Aft-mkt | Q2 2017 Earnings Release | Q2 17 | 0.476 |
| ResMed Inc | RMD US | 16:00 | Q4 2017 Earnings Release | Q4 17 | 0.751 |
| Illumina Inc | ILMN US | Aft-mkt | Q2 2017 Earnings Release | Q2 17 | 0.688 |
| DaVita Inc | DVA US | Aft-mkt | Q2 2017 Earnings Release | Q2 17 | 0.904 |
| Extra Space Storage Inc | EXR US | Aft-mkt | Q2 2017 Earnings Release | Q2 17 | 1.046 |
| Boston Properties Inc | BXP US | Aft-mkt | Q2 2017 Earnings Release | Q2 17 | 1.61 |
| Verisk Analytics Inc | VRSK US | Aft-mkt | Q2 2017 Earnings Release | Q2 17 | 0.769 |
| Hanesbrands Inc | HBI US | Aft-mkt | Q2 2017 Earnings Release | Q2 17 | 0.529 |
| Range Resources Corp | RRC US | Aft-mkt | Q2 2017 Earnings Release | Q2 17 | 0.081 |
| Fiserv Inc | FISV US | Aft-mkt | Q2 2017 Earnings Release | Q2 17 | 1.232 |
| ONEOK Inc | OKE US | Aft-mkt | Q2 2017 Earnings Release | Q2 17 | 0.43 |
| Newfield Exploration Co | NFX US | 16:01 | Q2 2017 Earnings Release | Q2 17 | 0.422 |
| Pioneer Natural Resources Co | PXD US | 16:05 | Q2 2017 Earnings Release | Q2 17 | 0.116 |
| Allstate Corp/The | ALL US | 16:15 | Q2 2017 Earnings Release | Q2 17 | 0.884 |
| Devon Energy Corp | DVN US | 16:15 | Q2 2017 Earnings Release | Q2 17 | 0.327 |
| Assurant Inc | AIZ US | 16:15 | Q2 2017 Earnings Release | Q2 17 | 1.598 |
| EOG Resources Inc | EOG US | 16:20 | Q2 2017 Earnings Release | Q2 17 | 0.12 |
| ResMed Inc | RMD US | 16:30 | Q4 2017 Earnings Call | Q4 17 | |
| Illumina Inc | ILMN US | 16:30 | Q2 2017 Earnings Call | Q2 17 | |
| Hanesbrands Inc | HBI US | 16:30 | Q2 2017 Earnings Call | Q2 17 | |
| Apple Inc | AAPL US | 16:30 | Q3 2017 Earnings Release | Q3 17 | 1.572 |
| DaVita Inc | DVA US | 17:00 | Q2 2017 Earnings Call | Q2 17 | |
| Fiserv Inc | FISV US | 17:00 | Q2 2017 Earnings Call | Q2 17 | |
| Apple Inc | AAPL US | 17:00 | Q3 2017 Earnings Call | Q3 17 |
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