Barchart Morning Call
Barchart.com - Tue Nov 14, 6:35AM CST
OVERNIGHT MARKETS AND NEWS
Dec E-mini S&Ps (ESZ17 -0.17%) this morning are down -0.09% and European stocks are down -0.17% on concern about slowing growth in China after China Oct industrial production rose less than expected and China Oct retail sales posted their slowest pace of increase in a year. Losses in European stocks were limited after German Q3 GDP rose more than expected and after the German Nov ZEW survey expectations of economic growth climbed to a 6-month high. Asian stocks settled mostly lower: Japan unch, Hong Kong -0.10%, China -0.53%, Taiwan +0.03%, Australia -0.88%, Singapore -0.59%, South Korea -0.21%, India -0.28%. Chinese stocks fell back on weaker-than-expected economic data on Oct industrial production and retail sales and Japan's Nikkei Stock Index fell to a 1-1/2 week low before recovering as the market consolidates following its sharp rally to a 25-3/4 year high last week.
The dollar index (DXY00 -0.27%) is down -0.25% at 2-week low. EUR/USD (^EURUSD) is up +0.50% at a 2-week high on stronger-than-expected German Q3 GDP. USD/JPY (^USDJPY) is up +0.02%.
The dollar index (DXY00 -0.27%) is down -0.25% at 2-week low. EUR/USD (^EURUSD) is up +0.50% at a 2-week high on stronger-than-expected German Q3 GDP. USD/JPY (^USDJPY) is up +0.02%.
Dec 10-year T-note prices (ZNZ17 -0.01%) are up +1 tick.
Dallas Fed President Kaplan said he's "actively considering" a Fed rate hike in Dec.
Eurozone Q3 GDP rose +0.6% q/q and +2.5% y/y, right on expectations.
Eurozone Sep industrial production fell -0.6% m/m, right on expectations.
German Q3 GDP rose +0.8% q/q and +2.3% y/y (nsa), stronger than expectations of +0.6% q/q and +2.0% (nsa).
The German Nov ZEW survey expectations of economic growth rose +1.1 to 18.7, weaker than expectations of +1.9 to 19.5 but still a 6-month high.
China Oct industrial production rose +6.2% y/y, weaker than expectations of +6.3% y/y.
China Oct retail sales rose +10.0% y/y, weaker than expectations of +10.5% y/y and the slowest pace of increase in a year.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) Chicago Fed President Charles Evans (voter) takes part in a panel discussion at an ECB conference in Frankfurt on “Communications Challenges for Policy Effectiveness, Accountability and Reputations,” (2) Fed Chair Janet Yellen takes part in a ECB panel discussion on “Challenges and Opportunities of Central Bank Communication” with ECB President Mario Draghi, BOJ Governor Haruhiko Kuroda and BOE Governor Mark Carney, (3) Oct PPI final demand (expected +0.1% m/m and +2.3% y/y, Sep +0.4% m/m and +2.6% y/y) and Oct PPI ex food & energy (expected +0.2% m/m and +2.2% y/y, Sep +0.4% m/m and +2.2% y/y), (4) Atlanta Fed President Raphael Bostic (non-voter) speaks on the economic outlook and monetary policy at a forum in Montgomery, Alabama.
Notable Russell 2000 earnings reports today include: Home Depot (consensus $1.82), Advance Auto Parts (1.21), Dick's Sporting Goods (0.26), Aramark (0.57), Intl Game technology (0.26), TJX (1.00).
U.S. IPO's scheduled to price today: SendGrid (SEND).
Equity conferences during the remainder of this week: UBS Global Technology Conference on Mon-Tue, J.P. Morgan Ultimate Services Investor Conference on Tue, NAREIT REITWorld Convention on Tue, Stifel Nicolaus Health Care Conference on Tue, Bank of America Merrill Lynch Future of Financials Conference on Tue-Wed, Goldman Sachs Industrials Conference on Tue-Wed, Morgan Stanley Global Consumer & Retail Conference on Tue-Wed, Barclays Global Automotive Conference on Wed, MoffettNathanson Inaugural Software Forum on Wed, Morgan Stanley Global Chemicals and Agriculture Conference on Wed, UBS Industrial and Transportation Conference on Wed, Universal Companion Diagnostic Test Personalized Medicine Conference on Wed, Jefferies London Health Care Conference on Wed-Thu, Morgan Stanley European Technology, Media & Telecom Conference on Wed-Thu, Deutsche Bank Lithium Supply Chain and Energy Storage Conference on Thu, MKM Partners Entertainment, Travel & Technology Conference on Thu, Bank of America Merrill Lynch Global Energy Conference on Thu-Fri, Gabelli & Co Financial Services Conference on Fri.
OVERNIGHT U.S. STOCK MOVERS
Phillips 66 (PSX -0.36%) was downgraded to 'Underweight' from 'Equal-Weight' at Barclays.
Advanced Auto Part (AAP +1.31%) rose 3% in pre-market trading after it reported Q3 adjusted EPS of $1.43 better than consensus of $1.21.
Buffalo Wild Wings (BWLD -1.35%) soared over 25% in after-hours trading after the WSJ reported a person familiar with the matter said Roark Capital Group offered to buy the company for $2.3 billion.
Western Digital (WDC -0.54%) gained almost 3% in after-hours trading after Yumiuri reported that WDC and Toshiba are in "serious" talks to settle a legal dispute over the sale of Toshiba's chip unit.
Sage Therapeutics (SAGE -1.45%) lost nearly 2% in after-hours trading after it announced that it has commenced an underwritten public offering of $300 million of its common stock.
Time Warner (TWX -2.33%) was upgraded to 'Buy' from 'Hold' at Pivotal Research Group LLC with a price target of $103.
BeiGene Ltd (BGNE -1.23%) rose 3% in after-hours trading after it reported Q3 diluted EPS of $2.54, better than an expected loss of -$1.43. The company then said it will expand its clinical trials for its BTK Inhibitor BGB-3111 for patients with chronic lymphocytic leukemia and small lymphocytic lymphoma.
Switch (SWCH +5.70%) dropped over 3% in after-hours trading after it said it sees 2017 adjusted Ebitda of $190 million-$195 million, the midpoint below consensus of $193.3 million.
Third Point Reinsurance Ltd (TPRE -0.30%) fell 4% in after-hours trading after it announced the commencement of an underwritten secondary public offering of 15 million shares of its common stock.
Remark Holdings (MARK +0.82%) jumped 13% in after-hours trading after it reported Q3 revenue of $19.4 million, higher than an estimate of $18.6 million, and then said it expects upward of $100 million in 2018 consolidated revenue, better than expectations of $85.3 million.
Amarin Corp PLC (AMRN -0.57%) climbed over 4% in after-hours trading after it reported its post-hoc analysis of data from its Phase 3 study of Vascepa showed it reduced potentially atherogenic lipid and inflammatory markers without raising LDL-C in patients with chronic kidney disease.
ProQR Therapeutics NV (PRQR -2.25%) tumbled over 10% in after-hours trading after it announced that it intends to sell its ordinary shares in an underwritten public offering, although no amount was given.
MARKET COMMENTS
Dec S&P 500 E-mini stock futures (ESZ17 -0.17%) this morning are down -2.25 points (-0.09%). Monday's closes: S&P 500 +0.10%, Dow Jones +0.07%, Nasdaq +0.11%. The S&P 500 on Monday closed higher on strength in energy stocks as crude oil prices rose +0.04% and on M&A news after Mattel surged over 20% on a report that Hasbro has discussed an acquisition of the company.
Dec 10-year T-note prices (ZNZ17 -0.01%) this morning are up +1 tick. Monday's closes: TYZ7 -2.50, FVZ7 -3.50. Dec 10-year T-notes on Monday dropped to a 2-week low and closed lower on negative carry-over from a fall in 10-year German bunds to a 2-week low and on hawkish comments from Philadelphia Fed President Harker who said he's looking for another Fed rate hike this year.
The dollar index (DXY00 -0.27%) this morning is down -0.239 (-0.25%) at a 2-week low. EUR/USD (^EURUSD) is up +0.0058 (+0.50%) at a 2-week high and USD/JPY (^USDJPY) is up +0.02 (+0.02%). Monday's closes: Dollar Index +0.099 (+0.10%), EUR/USD +0.0002 (+0.02%), USD/JPY +0.09 (+0.08%). The dollar index on Monday closed higher on hawkish comments from Philadelphia Fed President Harker who said he's looking for another Fed rate hike a next month's FOMC meeting. There was also weakness in EUR/USD on dovish comments from ECB Vice President Constancio who said, "an ample degree of monetary stimulus remains necessary in order for underlying inflation pressures to continue to build-up and support headline inflation over the medium-term."
Dec crude oil (CLZ17 -0.60%) this morning is down -28 cents (-0.49%) and Dec gasoline (RBZ17 -0.85%) is down -0.0170(-0.95%). Monday's closes: Dec WTI crude +0.02 (+0.04%), Dec gasoline -0.0195 (-1.08%). Dec crude oil and gasoline on Monday settled mixed. Crude oil prices were boosted by expectations that OPEC will extend its crude production cuts after OPEC Secretary-General Mohammad Barkindo said the crude output cuts are the "only viable option" to rebalance a global market still contending with excess crude supplies. Crude oil prices were undercut by a slightly stronger dollar.
Metals prices this morning are weaker with Dec gold (GCZ17 -0.44%) -6.2 (-0.48%) at a 1-week low, Dec silver (SIZ17-0.66%) -0.122 (-0.72%) and Dec copper (HGZ17 -0.30%) -0.015 (-0.47%). Monday's closes: Dec gold +4.7 (+0.37%), Dec silver +0.176 (+1.04%), Dec copper +0.0405 (+1.32%). Metals on Monday closed higher on fund buying of gold as long positions in gold ETFs rose to a 1-week high Friday. There were also signs of tighter copper supplies after LME copper inventories fell -1,875 MT to a 2-month low of 258,275 MT.
GLOBAL EVENT CALENDAR11/14/2017
| Tuesday, Nov 14 | ||
| US | 0305 ET | Chicago Fed President Charles Evans (voter) takes part in a panel discussion at an ECB conference in Frankfurt on Communications Challenges for Policy Effectiveness, Accountability and Reputations. |
| 0500 ET | Fed Chair Janet Yellen takes part in a ECB panel discussion on Challenges and Opportunities of Central Bank Communication with ECB President Mario Draghi, BOJ Governor Haruhiko Kuroda and BOE Governor Mark Carney. | |
| 0830 ET | Oct PPI final demand expected +0.1% m/m and +2.4% y/y, Sep +0.4% m/m and +2.6% y/y. Oct PPI ex food & energy expected +0.2% m/m and +2.3% y/y, Sep +0.4% m/m and +2.2% y/y. | |
| 1305 ET | Atlanta Fed President Raphael Bostic (non-voter) speaks on the economic outlook and monetary policy at a forum in Montgomery, Alabama. | |
| Wednesday, Nov 15 | ||
| US | 0300 ET | Chicago Fed President Charles Evans (voter) takes part in a panel discussion at a UBS European Conference in London. |
| 0700 ET | Weekly MBA mortgage applications, previous -0.03% with purchase sub-index +0.5% and refi sub-index -0.5%. | |
| 0830 ET | Oct CPI expected +0.1% m/m and +2.0% y/y, Sep +0.5% m/m and +2.2% y/y. Oct CPI ex food & energy expected +0.2% m/m and +1.7% y/y, Sep +0.1% m/m and +1.7% y/y. | |
| 0830 ET | Nov Empire manufacturing survey general business conditions expected -5.2 to 25.0, Oct +5.8 to 30.2. | |
| 0830 ET | Oct retail sales expected unchanged and +0.2% ex autos, Sep +1.6% and +1.0% ex autos. | |
| 1000 ET | Sep business inventories expected unch, Aug +0.7%. | |
| 1030 ET | EIA weekly Petroleum Status Report. |
U.S. STOCK CALENDAR11/14/2017
| Name | Ticker | Time | Description | Period | Estimate |
|---|---|---|---|---|---|
| Advance Auto Parts Inc | AAP US | Bef-mkt | Q3 2017 Earnings Release | Q3 17 | 1.207 |
| Home Depot Inc/The | HD US | 06:00 | Q3 2018 Earnings Release | Q3 18 | 1.818 |
| Dick's Sporting Goods Inc | DKS US | Bef-mkt | Q3 2018 Earnings Release | Q3 18 | 0.262 |
| Aramark | ARMK US | Bef-mkt | Q4 2017 Earnings Release | Q4 17 | 0.565 |
| International Game Technology PLC | IGT US | Bef-mkt | Q3 2017 Earnings Release | Q3 17 | 0.256 |
| Advance Auto Parts Inc | AAP US | 08:00 | Q3 2017 Earnings Call | Q3 17 | |
| International Game Technology PLC | IGT US | 08:00 | Q3 2017 Earnings Call | Q3 17 | |
| Ingredion Inc | INGR US | 09:00 | Analyst Day | ||
| Home Depot Inc/The | HD US | 09:00 | Q3 2018 Earnings Call | Q3 18 | |
| TJX Cos Inc/The | TJX US | 09:30 | Q3 2018 Earnings Release | Q3 18 | 0.998 |
| Estee Lauder Cos Inc/The | EL US | 10:00 | Annual General Meeting | ||
| Dick's Sporting Goods Inc | DKS US | 10:00 | Q3 2018 Earnings Call | Q3 18 | |
| Aramark | ARMK US | 10:00 | Q4 2017 Earnings Call | Q4 17 | |
| TJX Cos Inc/The | TJX US | 11:00 | Q3 2018 Earnings Call | Q3 18 | |
| Cheniere Energy Inc | LNG US | 11:00 | Q3 2017 Earnings Call | Q3 17 | |
| Humana Inc | HUM US | Investor Meeting | |||
| Equifax Inc | EFX US | Investor Meeting |
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