Showing posts with label AKAO. Show all posts
Showing posts with label AKAO. Show all posts

Wednesday, March 15, 2017

MORNING CALL 3/15

Barchart Morning Call

OVERNIGHT MARKETS AND NEWS
Jun E-mini S&Ps (ESM17 +0.24%) this morning are up +0.16% and European stocks are up +0.05% as a rally in crude oil prices lifts energy producing stocks. Apr WTI crude (CLJ17 +2.14%) is up sharply by +2.01% after API data released late Tuesday showed U.S. crude stockpiles fell -531,000 bbl last week. The markets are expecting the FOMC to raise the fed funds rate by 25 bp today, but will be looking at the Fed's economic projections and any guidance from Fed Chair Yellen as to the future course of monetary policy. European stocks and EUR/USD also received a boost as the latest polls show the pro-EU Liberal Party leading against the anti-EU Freedom Party in today's elections in the Netherlands. Asian stocks settled mixed: Japan -0.16%, Hong Kong -0.15%, China +0.08%, Taiwan -0.04%, Australia +0.26%, Singapore -0.19%, South Korea unchanged, India -0.15%. Chinese stocks erased losses and closed higher after Chinese Premier Li Keqiang played down the risk of a trade conflict when he said it was important for both China and the U.S. to keep talking to build trust.
The dollar index (DXY00 -0.12%) is down -0.13%. EUR/USD (^EURUSD) is up +0.20%. USD/JPY (^USDJPY) is down -0.09%.
Jun 10-year T-note prices (ZNM17 +0.09%) are up +2.5 ticks.
ECB Executive Board member Praet said "looking through recent volatility, the inflation outlook does not at this stage warrant a reassessment of the current monetary policy stance." He added that "the recovery has yet to translate into a durable and self-sustained pick-up in inflation."
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) weekly MBA mortgage applications (previous +3.3% with purchase sub-index +1.7% and refi sub-index +5.2%), Mar Empire manufacturing survey general business conditions index (expected -3.7 to 15.0, Feb +12.2 to 18.7), (3) Feb CPI (expected unch m/m and +2.7% y/y, Jan +0.6% m/m and +2.5% y/y) and Feb CPI ex food & energy (expected +0.2% m/m and +2.2% y/y, Jan +0.3% m/m and +2.3% y/y), (4) Feb retail sales (expected +0.1% and +0.1% ex autos, Jan +0.4% and +0.8% ex autos), (5) Mar NAHB housing market index (expected unch at 65, Feb -2 to 65), (6) Jan business inventories (expected +0.3%, Dec +0.4%), (7) FOMC interest rate decision (expected 25 bp increase in fed funds target range to 0.75%-1.00%. FOMC releases updated macroeconomic forecasts and Fed Chair Yellen holds a press conference), (8) President Trump scheduled to release fiscal 2018 budget proposal, (9) EIA Weekly Petroleum Status Report.
Notable Russell 1000 earnings reports today include: Oracle (consensus $0.62), Williams-Sonoma (1.51), Jabil Circuit (0.46), Perrigo (1.78).
U.S. IPO's scheduled to price today: Canada Goose Holdings (GOOS).
Equity conferences: JP Morgan Aviation, Transportation & Industrials Conference on Mon-Wed, Bank of America Merrill Lynch Consumer and Retail Tech Conference on Tue-Wed, Barclays Emerging Payments Forum on Tue-Wed, Barclays Global Health Care Conference on Tue-Thu, Gabelli & Co. Waste & Environmental Services Symposium on Thu, American College of Cardiology Meeting on Fri.
OVERNIGHT U.S. STOCK MOVERS
Netflix (NFLX -0.23%) was upgraded to 'Hold' from 'Underperform' at Jeffries.
Intel (INTC +0.06%) was downgraded to 'Neutral' from 'Outperform' at Credit Suisse.
WedMD (WBMD +0.38%) was downgraded to 'Market Perform' from 'Outperform' at Cowen with a 12-month target price of $55.
AMC Entertainment Holdings (AMC +0.49%) was downgraded to 'Underperform' from 'Neutral' at Credit Suisse.
Penn Virginia (PVAC -0.20%) was rated a new 'Buy' at Johnson Rice.
Snapchat (SNAP -2.42%) was rated new 'Underweight' at Cantor Fitzgerald.
NeoPhotonics (NPTN -5.05%) sold-off 13% in after-hours trading after it said it sees Q1 revenue of $67 million-$73 million, well below consensus of $98 million.
Achaogen (AKAO -5.75%) sank 10% in after-hours trading after it reported a Q4 loss of -$1.04 a share, a much bigger loss than consensus of -48 cents.
Endo International PLC (ENDP -4.22%) lost 2% in after-hours trading after an FDA advisory panel said that the benefits of Endo's Opana XR no longer outweigh the risks.
FTD Cos. (FTD -0.68%) dropped over 8% in after-hours trading after it reported Q4 revenue of $280.7 million, below consensus of $282.5 million.
Rosetta Stone (RST +3.27%) jumped 12% in after-hours trading after it reported Q4 revenue of $51.7 million, higher than consensus of $48.1 million, and said it will provide Sourcenext in a license deal for education markets in Japan.
Fogo De Chao (FOGO -5.02%) rose almost 3% in after-hours trading after it reported Q4 adjusted EPS of 28 cents, better than consensus of 27 cents, and then said it sees full-year adjusted EPS of 92 cents-95 cents, above consensus of 92 cents.
Rubicon Project (RUBI -1.99%) slumped 14% in after-hours trading after it forecast a Q1 adjusted loss per share of -22 cents to -26 cents, much weaker than consensus of a profit of 10 cents.
T2 Biosystems (TTOO unch) fell over 3% in after-hours trading after it was downgraded to 'Underweight' from Equal-Weight' at Morgan Stanley.
MARKET COMMENTS
Jun E-mini S&Ps (ESM17 +0.24%) this morning are up +3.75 points (+0.16%). Tuesday's closes: S&P 500 -0.34%, Dow Jones -0.21%, Nasdaq -0.23%. The S&P 500 on Tuesday closed lower on the U.S. Feb PPI final demand report of +0.3% m/m and +2.2% y/y (stronger than expectations of +0.2% m/m and +1.9% y/y with the +2.2% y/y gain the largest year-on-year increase in 4-3/4 years) and the -1.40% slump in crude oil prices to a 3-1/2 month low, which undercut energy producing stocks.
Jun 10-year T-notes (ZNM17 +0.09%) this morning are up +2.5 ticks. Tuesday's closes: TYM7 +2.50, FVM7 +1.00. Jun 10-year T-notes recovered from a 2-1/2 month low Tuesday and closed higher on the slump in crude oil prices to a 3-1/2 month low, which reduces inflation expectations, and on the slide in stocks that boosted the safe-haven demand for T-notes. Gains were limited after U.S. Feb PPI final demand rose more than expected, which may prompt the Fed to speed up the pace of its rate hikes.
The dollar index (DXY00 -0.12%) this morning is down -0.13 (-0.13%). EUR/USD (^EURUSD) is up +0.0021 (+0.20%). USD/JPY (^USDJPY) is down -0.10 (-0.09%). Tuesday's closes: Dollar index +0.44 (+0.43%), EUR/USD -0.0049 (-0.46%), USD/JPY -0.13 (-0.11%). The dollar index on Tuesday closed higher on the +2.2% y/y gain in U.S. Feb PPI final demand report, the largest year-on-year increase in 4-3/4 years, which bolsters the case for the Fed to continue raising interest rates. There was also weakness in GBP/USD which fell to a 1-3/4 month low on Brexit concerns after the UK Parliament voted to give Prime Minister May the go-ahead to invoke Article 50 of the Lisbon Treaty that takes the UK out of the European Union.
Apr WTI crude oil prices (CLJ17 +2.14%) this morning are up +96 cents (+2.01%) and Apr gasoline (RBJ17 +1.47%) is +0.0209 (+1.32%). Tuesday's closes: Apr crude -0.68 (-1.40%), Apr gasoline +0.0028 (+0.18%). Apr crude oil and gasoline on Tuesday settled mixed with Apr crude at a 3-1/2 month low. Crude oil prices were undercut by a stronger dollar and by increased Saudi crude output after Saudi Arabian Feb crude oil production rose +2.7% m/m to 10.0111 million bpd. Crude oil prices were also undercut by expectations for Wednesday's EIA data to show crude inventories rose +3.0 million bbl. Gasoline closed higher on expectations for Wednesday's EIA gasoline stockpiles to fall -2.0 million bbl.

GLOBAL EVENT CALENDAR03/15/2017
Wednesday, Mar 15
US0700 ETWeekly MBA mortgage applications, previous +3.3% with purchase sub-index +1.7% and refi sub-index +5.2%.
0830 ETMar Empire manufacturing survey general business conditions expected -3.7 to 15.0, Feb +12.2 to 18.7.
0830 ETFeb CPI expected unch m/m and +2.7% y/y, Jan +0.6% m/m and +2.5% y/y. Feb CPI ex food & energy expected +0.2% m/m and +2.2% y/y, Jan +0.3% m/m and +2.3% y/y.
0830 ETFeb retail sales expected +0.1% and +0.1% ex autos, Jan +0.4% and +0.8% ex autos.
1000 ETMar NAHB housing market index expected unch at 65, Feb -2 to 65.
1000 ETJan business inventories expected +0.3%, Dec +0.4%.
1030 ETEIA Weekly Petroleum Status Report.
1400 ETFOMC interest rate decision expected 25 bp increase in fed funds target range to 0.75%-1.00%. FOMC releases updated macroeconomic forecasts and Fed Chair Yellen holds a press conference.
n/aPresident Trump scheduled to release fiscal 2018 budget proposal.
n/aU.S. debt ceiling suspension expires, but Treasury has until Aug-Sep until default.
Thursday, Mar 16
US0830 ETWeekly initial unemployment claims expected -3,000 to 240,000, previous +20,000 to 243,000. Weekly continuing claims expected -5,000 to 2.053 million, previous -6,000 to 2.058 million.
0830 ETFeb housing starts expected +1.4% to 1.263 million, Jan -2.6% to 1.246 million. Feb building permits expected -2.0% to 1.267 million, Jan +5.3% to 1.293 million.
0830 ETUSDA weekly Export Sales.
0830 ETMar Philadelphia Fed business outlook survey expected -13.3 to 30.0, Feb +19.7 to 43.3.
1000 ETJan JOLTS job openings expected +61,000 to 5.562 million, Dec -4,000 to 5.501 million.
1100 ETTreasury announces amount of 10-year TIPS to be auctioned Mar 23 (previous $13 billion).
1300 ETTreasury Secretary Mnuchin and German Finance Minister Schaeuble meet in Berlin to discuss trade and economic issues, with a joint press conference to follow the meeting.
U.S. STOCK CALENDAR03/15/2017

CompanyTickerTimeEvent DescriptionPeriodEstimate
Agilent Technologies IncA US11:00Annual General Meeting
Perrigo Co PLCPRGO USQ4 2016 Earnings ReleaseQ4 161.775
Jabil Circuit IncJBL USAft-mktQ2 2017 Earnings ReleaseQ2 170.464
Oracle CorpORCL USAft-mktQ3 2017 Earnings ReleaseQ3 170.618
Williams-Sonoma IncWSM USAft-mktQ4 2017 Earnings ReleaseQ4 171.508
Jabil Circuit IncJBL US16:30Q2 2017 Earnings CallQ2 17
Oracle CorpORCL US17:00Q3 2017 Earnings CallQ3 17
Williams-Sonoma IncWSM US17:00Q4 2017 Earnings CallQ4 17

Wednesday, March 16, 2016

MORNING CALL 3/16

MORNING CALL

OVERNIGHT MARKETS AND NEWS
Jun E-mini S&Ps (ESM16 -0.04%) are unchanged ahead of the outcome of today's FOMC meeting and press conference from Fed Chair Yellen. Gains in mining stocks and energy producers are supporting the overall market as the price of crude oil and copper gain. European stocks are up +0.12% as a rally in automakers leads the market higher after data from the European Automobile Manufacturers' Association showed European new car registrations rose for a 30th month in Feb. Asian stocks settled mixed: Japan -0.83%, Hong Kong -0.15%, China +0.21%, Taiwan +1.02%, Australia +0.15%, Singapore +0.17%, South Korea +0.22%, India +0.53%.
The dollar index (DXY00 +0.25%) is up +0.23%. EUR/USD (^EURUSD) is down -0.20%. USD/JPY (^USDJPY) is up +0.36% as the yen weakened after comments from BOJ Governor Kuroda who said that a negative -0.5% Japanese benchmark rate was a possibility.
Jun T-note prices (ZNM16 +0.06%) are unchanged.
BOJ Governor Kuroda told a Japanese parliamentary committee that "looking at Europe, theoretically, there is a lot of room" to cut the negative interest rate further. He added that a cut in the interest rate to -0.5% was a possibility.
Eurozone Feb new car registrations rose +14.3% y/y t0 1.057 million, the 30th consecutive month that new car registrations have increased.
U.S. STOCK PREVIEW
Key U.S. news today includes: weekly MBA mortgage applications (previous +0.2% with purchase sub-index +4.2% and refi sub-index -2.3%), (2) Feb housing starts (expected +4.6% to 1.150 million, Jan -3.8% to 1.099 million), (3) Feb CPI (expected -0.2% m/m and +0.9% y/y, Jan unch m/m and +1.4% y/y) and Feb CPI ex food & energy (expected +0.2% m/m and +2.2% y/y, Jan +0.3% m/m and +2.2% y/y), (4) Feb industrial production (expected -0.3%, Jan +0.9%), and (5) the FOMC post-meeting statement and a press conference by Fed Chair Yellen.
There are 3 of the Russell 1000 companies that report earnings today: FedEx (consensus $2.34), Williams-Sonoma (1.58), Jabil Circuit (0.60).
U.S. IPO's scheduled to price today: Hutchison China MediTech (HCM).
Equity conferences during the remainder of this week include: Citi Global Property CEO Conference on Mon-Wed, Bank of America Merrill Lynch Consumer & Retail Tech Conference on Tue-Wed, Barclays Emerging Payments Forum on Tue-Wed, Barclays Capital Global Health Care Conference on Tue-Thu,
3rd Annual Pharma Customer Experience Summit 2016 on Wed, Goldman Sachs Innovation Symposium on Wed, Bank of America Merrill Lynch Global Industrials & EU Autos Conference on Wed-Thu, Evercore ISI Retail Summit on Wed-Thu, ACI European Food & Beverage Plastic Packaging Conference on Thu, and Citigroup Retail Madness Conference on Thu.


OVERNIGHT U.S. STOCK MOVERS
Oracle (ORCL +0.10%) rallied over 4% in pre-market trading after it reported Q3 adjusted EPS of 64 cents, higher than consensus of 62 cents.
Chipotle Mexican Grill (CMG -2.47%) is down nearly 6% in pre-market trading after it said it expects a Q1 EPS loss of -$1.00, much weaker than consensus for a 3 cent gain.
Kraft Heinz (KHC +0.27%) and Monster Beverage (MNST +0.02%) were both added to the 'Conviction Buy' list at Goldman Sachs.
Valeant Pharmaceuticals International (VRX -51.46%) slid 6% in pre-market trading after the stock plunged more than 51% yesterday.
LinkedIn (LNKD -1.45%) dropped nearly 5% in pre-market trading after it was downgraded to 'Equalweight' from 'Overweight' at Morgan Stanley.
Achaogen (AKAO -1.63%) was downgraded to 'Hold' from 'Buy' at Needham & Co.
Casey's General Stores (CASY +0.80%) reported that its February same-store-sales for grocery and other merchandise rose +12% y/y.
Relypsa (RLYP -9.95%) climbed over 3% in after-hours trading after it reported that 812 new patients started taking its Veltassa last month versus 409 in January.
Caleres (CAL -0.79%) dropped over 8% in after-hours trading after it lowered guidance on full-year adjusted EPS to $2.00-$2.10, below consensus of $2.22.
Osiris Therapeutics (OSIR -4.29%) reported that it received a subpoena from the SEC about its accounting practices.
Xcel Brands (XELB +4.58%) jumped nearly 7% in after-hours trading after it reported Q4 adjusted EPS of 10 cents, higher than consensus of 7 cents.
Tronox Ltd. (TROX -6.96%) rose over 3% in after-hours trading on signs of insider buying after Tronox SVP Willlem Van Niekerk reported that he bought another 4,600 shares of stock.
MARKET COMMENTS
Jun E-mini S&Ps (ESM16 -0.04%) this morning are unchanged. Tuesday's closes: S&P 500 -0.18%, Dow Jones +0.13%, Nasdaq -0.01%. The S&P 500 on Tuesday closed lower on concern about weak consumer spending after the Feb retail sales report of -0.1% and -0.1% ex-autos and the downward revision in Jan retail sales to -0.4% and -0.4% ex-autos from +0.2% and +0.1% ex-autos. There was also weakness in energy producers after crude oil dropped to a 1-week low.
Jun 10-year T-notes (ZNM16 +0.06%) this morning are unchanged. Tuesday's closes: TYM6 -0.50, FVM6 -2.25. Jun T-notes on Tuesday closed little changed. T-notes were undercut by the +17.26 point increase in the Mar Empire manufacturing survey of business conditions to an 8-month high of 0.62 (stronger than expectations of +6.14 to -10.50) and by some position-squaring ahead of Wednesday's FOMC meeting outcome, which could be a bit more hawkish in tone than the market expects. T-notes received support from the weak retail sales report and March NAHB housing index report and by the mildly lower close in stocks.
The dollar index (DXY00 +0.25%) this morning is up +0.223 (+0.23%). EUR/USD (^EURUSD) is down -0.0022 (-0.20%). USD/JPY (^USDJPY) is up +0.41 (+0.26%). Tuesday's closes: Dollar Index +0.009 (+0.01%), EUR/USD +0.0006 (+0.05%), USD/JPY -0.64 (-0.56%). The dollar index on Tuesday closed little changed. The dollar received a boost from the stronger-than-expected Mar Empire manufacturing survey business conditions index that rose to an 8-month high and bolstered the case for the Fed to keep raising interest rates. However, the dollar index was undercut by the weak U.S. retail sales report and by some strength in the yen which received a boost after the BOJ left its policy unchanged and refrained from expanding stimulus measures.
Apr WTI crude (CLJ16 +2.09%) this morning is up +72 cents (+1.98%) and Apr gasoline (RBJ16 +0.48%) is up +0.0027 (+0.19%). Tuesday's closes: CLJ6 -0.84 (-2.26%), RBJ6 -0.0146 (-1.03%). Apr crude and gasoline on Tuesday closed lower with Apr crude at a 1-week low. Crude oil prices were undercut by Russian Energy Minister Novak's comment that Iran has "reasonable arguments" for not joining other major producers in freezing production and by expectations for Wednesday's weekly EIA crude inventories to increase by +2.75 million bbl.
GLOBAL EVENT CALENDAR03/16/2016
US0700 ETWeekly MBA mortgage applications, previous +0.2% with purchase sub-index +4.2% and refi sub-index -2.3%.
0830 ETFeb housing starts expected +4.6% to 1.150 million, Jan -3.8% to 1.099 million. Feb building permits expected 0.2% to 1.200 million, Jan unch at 1.202 million.
0830 ETFeb CPI expected -0.2% m/m and +0.9% y/y, Jan unch m/m and +1.4% y/y. Feb CPI ex food & energy expected +0.2% m/m and +2.2% y/y, Jan +0.3% m/m and +2.2% y/y.
0915 ETFeb industrial production expected -0.3%, Jan +0.9%. Feb manufacturing production expected +0.1%, Jan +0.5%. Feb capacity utilization expected -0.2 to 76.9%, Jan 77.1%.
1030 ETEIA Weekly Petroleum Status Report.
1400 ETFOMC announces interest rate decision; no change expected to the 0.25%-0.50% fed funds rate target.
1430 ETFed Chair Janet Yellen holds press conference following FOMC meeting.
JPN0200 ETRevised Japan Feb machine tool orders.
1950 ETJapan Feb trade balance expected +400.2 billion yen, Jan -648.5 billion yen. Feb exports expected -3.0% y/y, Jan -12.9% y/y. Feb imports expected -15.8% y/y, Jan -17.8% y/y.
EUR0300 ETEurozone Feb new car registrations, Jan +6.2% y/y.
0600 ETEurozone Jan construction output, Dec -0.6% m/m and -0.4% y/y.
UK0530 ETUK Feb jobless claims change expected -9,100, Jan -14,800. Feb claimant count rate expected unch at 2.2%.
0530 ETUK Jan avg weekly earnings expected +2.0% 3-month avg y/y, Dec +1.9% 3-month avg y/y.
0530 ETUK Jan avg weekly earnings ex-bonus expected +2.1% 3-month avg y/y, Dec +2.0% 3-month avg y/y.
0530 ETUK Jan ILO unemployment rate expected unch at 5.1% for the three months through Jan, previous 5.1% for the 3-months through Dec.
U.S. STOCK CALENDAR03/16/2016
CompanyTickerTimeEvent DescriptionPeriodEstimate
Mallinckrodt PLCMNK US5:30Annual General Meeting
ARRIS International PLCARRS US8:00Investor & Analyst DayY 2016
MDU Resources Group IncMDU US9:00Investor MeetingY 2016
Expedia IncEXPE US10:00Investor & Analyst MeetingY 2016
Jabil Circuit IncJBL US16:02Q2 2016 Earnings ReleaseQ2 20160.596
FedEx CorpFDX US16:15Q3 2016 Earnings ReleaseQ3 20162.337
Jabil Circuit IncJBL US16:30Q2 2016 Earnings CallQ2 2016
FedEx CorpFDX US17:00Q3 2016 Earnings CallQ3 2016
Williams-Sonoma IncWSM US17:00Q4 2016 Earnings CallQ4 2016
Williams-Sonoma IncWSM USAft-mktQ4 2016 Earnings ReleaseQ4 20161.582
Progressive Corp/ThePGR USFebruary 2016 Sales and Revenue Release2016
Questar CorpSTR USRoadshow - New YorkY 2016
Agilent Technologies IncA USAnnual General Meeting