Showing posts with label BEN. Show all posts
Showing posts with label BEN. Show all posts

Thursday, October 8, 2015

BARCHART MORNING CALL 10/8

OVERNIGHT MARKETS AND NEWS
December E-mini S&Ps (ESZ15 -0.31%) are down -0.36% and European stocks are down -0.28% after disappointing German export data added to concerns that the global recovery may be weaker than previously thought. German Aug exports fell by the most in 6-1/2 years, although European stocks recovered a good portion of their losses on speculation the weak trade data may spur the ECB into expanding QE. Automakers are also higher, led by a +2.9% increase in Fiat Chrysler Automobiles NV, after the company reached a tentative agreement with the United Auto Workers Union in the U.S. to avert a strike. Asian stocks settled mostly lower: Japan -0.99%, Hong Kong -0.71%, China +2.97%, Taiwan -0.58%, Australia +0.24%, Singapore -0.50%, South Korea +1.03%, India -0.70%. China's Shanghai Composite resumed trade after a week-long holiday and closed up nearly 3% on speculation the government will take additional steps to revive economic growth.
The dollar index (DXY00 -0.27%) is down % at a 2-week low. EUR/USD (^EURUSD) is up +0.53%. USD/JPY (^USDJPY) is down -0.17%.
Dec T-note prices (ZNZ15 +0.10%) are up +4.5 ticks.
As expected, the BOE maintained its benchmark interest rate at 0.50% and kept its asset purchase target at 375 billion pounds following today's policy meeting.
The German Aug trade balance shrank to a surplus of 15.3 billion euros, less than expectations of 19.0 billion euros and the smallest surplus in a year. Aug exports fell -5.2% m/m, a bigger drop than expectations of -0.9% m/m and the largest decline in 6-1/2 years. Aug imports fell -3.1% m/m, a bigger drop than expectations of -0.6% m/m and the largest decline in 2-3/4 years.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) weekly initial unemployment claims (expected -3,000 to 274,000, previous +10,000 to 277,000) and continuing claims (expected +9,000 to 2.200 million, previous 53,000 to 2.191 million), (2) the minutes of the Sep 16-17 FOMC meeting, (3) the Treasury's auction of $13 billion of 30-year T-bonds, (4) welcoming remarks by Minneapolis Fed President Narayana Kocherlakota followed by a forum at the Greater Mankato Growth Event at Minnesota State University, and (5) San Francisco Fed President John Williams' speech on the economic outlook to the Spokane Metropolitan Area Business and Community Leaders’ Luncheon.
There are 2 of the Russell 2000 companies report earnings today: Alcoa (consensus $0.13), Domino's Pizza (0.74).
U.S. IPO's scheduled to price today: none.
Equity conferences during the remainder of this week include: Goldman Sachs EMEA Leveraged Finance Conference on Thu.


OVERNIGHT U.S. STOCK MOVERS
Domino's Pizza (DPZ +0.72%) reported Q3 adjusted EPS of 67 cents, below consensus of 76 cents.
Fiat Chrysler Automobiles NV (FCAU +4.00%) rose 1.5% in pre-market trading after the company reached a tenative agreement with the United Auto Workers Union in the U.S. to avert a strike.
EMC Corp. (EMC +0.58%) jumped nearly 7% in pre-market trading after people familiar with the matter said Dell is in talks to combine with all or part of the company.
AmSurg (AMSG +2.73%) rose over 1% in after-hours trading after it was announced it will replace Con-way in the S&P Midcap 400 effective the close of trading Oct 14.
Newtek Business Services (NEWT -2.00%) dropped 3% in after-hours trading after it said it plans to make a public offering of 2 million shares of common stock.
Mistras Group (MG +3.04%) jumped 16% in after-hours trading after it reported Q1 adjusted EPS of 23 cents, more than double consensus of 9 cents.
Chemours (CC -4.14%) surged over 15% in after-hours trading after Apollo Global Management LLC said it was mulling a buyout of the company.
Tilly's (TLYS +1.56%) climbed nearly 3% in after-hours trading after it announced that Dan Griesemer resigned as CEO and Ed Thomas, ex-CEO of Wet Seal, will replace him as new CEO.
Zumiez (ZUMZ +4.05%) rose over 7% in after-hours trading after it reported that total net sales for the five weeks ended Oct 3 grew +1.5% y/y to 67.3 million.
Journal Media Group (JMG +5.46%) jumped 8% in after-hours trading after Gannet said it was near a deal to buy the company for $300 million.
Deutsche Bank (DB +1.37%) fell nearly 6% in after-hours trading after it said it expects a surprise Q3 loss of 6.2 billion euros ($7 billion) after writing down the value of its two biggest divisions and boosting its reserve for legal costs. Prices recovered, however, and are now up nearly 1% in pre-market trading on speculation the potential elimination of the company's dividend may allow it to overhaul its structure and increase capital without issuing additional stock.
Cardiovascular Systems (CSII -1.36%) slumped over 15% in after-hours trading after the company reported preliminary Q1 revenue of $43.9 million, below consensus of $49.4 million, and said it sees a loss of -41 cents to -43 cents a share, a bigger loss than consensus of -39 cents.
MARKET COMMENTS
Dec E-mini S&Ps (ESZ15 -0.31%) this morning are down -7.25 points (-0.36%). Wednesday's closes: S&P 500 +0.80%, Dow Jones +0.73%, Nasdaq +0.62%. The S&P 500 on Wednesday rose to a 2-1/2 week high and closed higher on a rally in miners and metals producers as the price of copper rose to a 2-week high and after Morgan Stanley upgraded the sectors to "Attractive." In addition, there was M&A activity after Anheuser-Busch InBev NV raised its offer for SABMiller to $104 billion. Stocks fell back from earlier highs as energy producers declined on a sell-off in crude oil prices on the bearish weekly EIA data.
Dec 10-year T-notes (ZNZ15 +0.10%) this morning are up +4.5 ticks. Wednesday's closes: TYZ5 -7.00, FVZ5 -5.75. Dec T-note prices on Wednesday closed lower on the rally in stock prices, an increase in the 10-year T-note breakeven inflation rate to a 2-week high, and supply pressures as the Treasury auctioned $21 billion of 10-year T-notes and auctions $13 billion of 30-year T-bonds on Thursday.
The dollar index (DXY00 -0.27%) this morning is down -0.273 (-0.29%) at a 2-week low. EUR/USD (^EURUSD) is up +0.0059 (+0.53%). USD/JPY (^USDJPY) is down -0.21 (-0.17%). Wednesday's closes: Dollar Index +0.042 (+0.04%), EUR/USD -0.0035 (-0.31%), USD/JPY -0.22 (-0.18%). The dollar index on Wednesday closed slightly higher on an increase in U.S. inflation expectations after the 10-year T-note breakeven inflation rate climbed to a 2-week high, and weakness in EUR/USD on speculation the ECB may expand easing measures after German Aug industrial production unexpectedly fell-1.2%, the biggest decline in a year. GBP/USD rallied to a 2-week high after UK Aug industrial production rose +1.0% m/m, the largest increase in 18 months. USD/JPY saw weakness as the yen strengthened after the BOJ refrained from additional stimulus measures following the 2-day policy meeting.
Nov crude oil (CLX15 +0.59%) this morning is up +9 cents (+0.19%) and Nov gasoline (RBX15 -0.04%) is down -0.0059 (-0.42%). Wednesday's closes: CLX5 -0.72 (-1.48%), RBX5 -0.0327 (-2.28%). Nov crude oil and gasoline prices closed lower on Wednesday with Nov crude retreating from a 2-1/2 month nearest futures high. The weekly EIA report was bearish due to the +3.07 million bbl increase in weekly EIA crude inventories (vs expectations of +2.25 million bbl), the +98,000 bbl increase in crude supplies at Cushing, the first increase in 6 weeks, and the +0.8% increase in U.S. crude production to 9.172 million bpd in the week ended Oct 2.
GLOBAL EVENT CALENDAR10/08/2015
US0830 ETWeekly initial unemployment claims expected -3,000 to 274,000, previous +10,000 to 277,000. Weekly continuing claims expected +9,000 to 2.200 million, previous 53,000 to 2.191 million.
0830 ETUSDA weekly Export Sales.
1300 ETTreasury auctions $13 billion of 30-year T-bonds.
1300 ETMinneapolis Fed President Narayana Kocherlakota gives welcoming remarks followed by a forum at the Greater Mankato Growth Event at Minnesota State University.
1400 ETMinutes of the Sep 16-17 FOMC meeting.
1530 ETSan Francisco Fed President John Williams delivers a speech on the economic outlook to the Spokane Metropolitan Area Business and Community Leaders Luncheon.
JPN0030 ETJapan Sep bankruptcies, Aug -13.06% y/y.
0100 ETJapan Sep eco-watchers survey current expected -0.3 to 49.0, Aug 49.3. Sep eco-watchers survey outlook expected +0.1 to 48.3, Aug 48.2.
GER0200 ETGerman Aug trade balance expected +19.0 billion euros, Jul +25.0 billion euros. Aug exports expected -0.9% m/m, Jul +2.5% m/m. Aug imports expected -0.6% m/m, Jul +2.3% m/m.
0200 ETGerman Aug current account balance expected +16.7 billion euros, Jul+23.4 billion euros.
UK0700 ETBOE announces interest rate decision and asset purchase target, expected no change to the 0.50% benchmark rate or to the 375 billion pound asset purchase target.
U.S. STOCK CALENDAR10/08/2015

CompanyTickerTimeEvent DescriptionPeriodEstimate
L Brands IncLB US7:30September 2015 Sales and Revenue Release - Sales Report2015
L Brands IncLB US7:30September 2015 Sales and Revenue Call2015
Domino's Pizza IncDPZ US7:30Q3 2015 Earnings ReleaseQ3 20150.739
Leucadia National CorpLUK US9:00Investor MeetingY 2015
Domino's Pizza IncDPZ US10:00Q3 2015 Earnings CallQ3 2015
Franklin Resources IncBEN US12:00Annual General MeetingY 2015
Alcoa IncAA US17:00Q3 2015 Earnings CallQ3 2015
United Continental Holdings IncUAL US17:00September 2015 Sales and Revenue Release - Operational Performance2015
Alcoa IncAA USAft-mktQ3 2015 Earnings ReleaseQ3 20150.128
Gap Inc/TheGPS USSeptember 2015 Sales and Revenue Release2015
RPM International IncRPM USAnnual General MeetingY 2015
Xcel Energy IncXEL USInvestor Meeting - Day 3Y 2015
General Motors CoGM USGeneral Motors Deposition of CEO, Mary Barra, in Inition-Switch Defect Case
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Monday, June 8, 2015

BARCHART MORNING CALL 6/8


OVERNIGHT MARKETS AND NEWS
June E-mini S&Ps (ESM15 -0.07%) this morning are down -0.10% and European stocks are down -0.78% at a 3-1/2 month low. The ongoing Greek debt crisis continues to weigh on stocks as the Greek government needs to seal an accord with creditors or get another extension before the end of the month. The 10-year Greek bond yield rose +17 bp to a 4-session high of 11.39%. Asian stocks closed mixed: Japan -0.02%, Hong Kong +0.21%, China +2.17%, Taiwan +0.30%, Australia close for holiday, Singapore -0.40%, South Korea -0.29%, India -0.92%. China's Shanghai Composite rose to a 7-1/3 year high on speculation that MSCI Inc. will include A shares of Chinese stocks in its emerging-market indexes. China, through its companies listed in Hong Kong, accounts for more than 25% of the emerging-market benchmark, the largest weighting in the gauge. MSCI has kept China's A shares out of its indexes due to limitations on their tradability and will decide on Tuesday whether to include China's locally stocks in its equity benchmarks.
Commodity prices are mixed. Jul crude oil (CLN15 -0.68%) is down -0.88%. Jul gasoline (RBN15 -0.49%) is down -0.55%. Metals prices are mixed. Aug gold (GCQ15 +0.43%) is up +0.39%. Jul copper (HGN15 -0.11%) is down -0.28%. Agricultural prices are higher.
The dollar index (DXY00 -0.13%) is down -0.02%. EUR/USD (^EURUSD) is up +0.21% on upbeat comments from ECH Governing Council member Nowotny. USD/JPY (^USDJPY) is down -0.26% on stronger-than-expected Q1 Japan GDP.

Sep T-note prices (ZNU15 +0.05%) are up +4 ticks.
ECB Governing Council member Nowotny said the Eurozone's economic downturn "is over." He said the Eurozone has overcome the risk of deflation as the ECB's asset purchases have had the desired effect. He added that economic development in Europe is "positive," although challenges remain.
The China May trade balance widened to a surplus of +$59.49 billion from +$34.13 billion in Apr, more than expectations of +$44.80 billion. May exports fell -2.5% y/y, less than expectations of -4.4% y/y. May imports fell -17.6% y/y, more than expectations of -10.0% y/y.
Japan Q1 GDP was revised upward to 3.9% q/q annualized from the originally reported 2.4% q/q annualized, stronger than expectations of 2.8% q/q annualized and the fastest pace of growth in a year.

U.S. STOCK PREVIEW
Key U.S. news today includes: (1) the second day of the 2-day G-7 Summit in Germany.
There are two of the Russell 1000 companies that report earnings today: Sears (consensus -$2.59), H&R Block (2.68).
U.S. IPO's scheduled to price today include: none.
Equity conferences this week include: Apple's Worldwide Developer's Conference (WWDC15) on Mon-Fri, Nomura Retail Conference on Tue, Oppenheimer Energy Conference on Tue, Morgan Stanley Financials Conference on Tue-Wed, NAREIT REITWeek Investor Forum on Tue-Wed, Piper Jaffray Consumer Conference on Tue-Wed, Piper Jaffray Consumer Conference on Tue-Wed, Goldman Sachs Global Healthcare Conference on Tue-Thu, Deutsche Bank db Access Global Consumer Conference on Tue-Thu, William Blair Growth Stock Conference on Tue-Thu, Goldman Sachs European Payments Conference on Wed, Macquarie Group Ltd. Global Metals, Mining & Materials Conference on Wed, Gabelli & Co., Inc. Movie & Entertainment Conference on Thu, Goldman Sachs 2020 Vision Chemicals Conference on Thu, Susquehanna Energy and Industrials Conference on Thu, Barclays High Yield Bond and Syndicated Loan Conference on Thu-Fri.

OVERNIGHT U.S. STOCK MOVERS
Delta Air Lines (DAL -0.05%) and United Continental (UAL -0.88%) were both downgraded to 'Outperform' from 'Strong Buy' at Raymond James.
CBOE Holdings (CBOE -0.64%) was upgraded to 'Hold' from 'Sell' at Evercore.
Wal-Mart (WMT -1.47%) was upgraded to 'Strong Buy' from 'Outperform' at Raymond James.
Affiliated Managers (AMG -0.39%) was initiated with a 'Buy' at Goldman Sachs with a price target of $258.
Franklin Resources (BEN +0.28%) was initiated with a 'Sell' at Goldman Sachs with a price target of $49.
BlackRock (BLK -0.70%) was initiated with a 'Buy' at Goldman Sachs with a price target of $421.
Home Depot (HD -0.98%) was initiated with an 'Overweight' at Atlantic Equities witha price target of $128.
Invesco (IVZ +0.05%) was upgraded to 'Buy' from 'Neutral' at UBS.
Energy Transfer Equity (ETE +2.43%) was reinstated with an 'Overweight' at Barclays with a price target of $92.
Energy Transfer Partners (ETP +0.66%) was reinstated with an 'Overweight' at Barclays with a price target of $70.
Huntington Ingalls (HII +0.24%) was awarded a $3.35 billion government contract for detail, design and construction of CVN 79, the aircraft carrier USS John F. Kennedy.
AB Value Partners reported a 6.61% stake in Image Sensing Systems (ISNS -0.96%) .
Soros Fund reported a 5.19% passive stake in MaxLinear (MXL +0.66%) .
Piedmont Natural Gas (PNY -0.91%) reported Q2 EPS of 84 cents, better than consensus of 79 cents, although Q2 revenue of $424.9 million was weaker than consensus of $488.8 million.

MARKET COMMENTS
June E-mini S&Ps (ESM15 -0.07%) this morning are down -2.00 points (-0.10%). Friday's closes: S&P 500 -0.14%, Dow Jones -0.31%, Nasdaq -0.22%. The S&P 500 on Friday slid to a 3-1/2 week low and closed lower on concern about an accelerated Fed rate hike after the +280,000 increase in U.S. May non-farm payrolls, stronger than expectations of +226,000 and the largest increase in 5 months. In addition, there continued to be concern about the Greek crisis after the Greek PM appeared to reject the take-it-or-leave-it offer by the Eurozone/IMF.
Sep 10-year T-notes (ZNU15 +0.05%) this morning are up +4 ticks. Friday's closes: TYU5 -26.50, FVU5 -15.75. Sep T-notes on Friday slumped to an 8-month low and closed lower on concerns that the Fed might be closer to a rate hike after the stronger-than-expected U.S. May payroll report of +280,000. In addition, May average hourly earnings rose by +2.3% y/y, more than expectations of +2.2% y/y and the largest annual increase in 1-3/4 years.
The dollar index (DXY00 -0.13%) this morning is down -0.022 (-0.02%). EUR/USD (^EURUSD) is up +0.0023 (+0.21%). USD/JPY (^USDJPY) is down -0.33 (-0.26%). Friday's closes: Dollar Index +0.845 (+0.89%), EUR/USD -0.01275 (-1.13%), USD/JPY +1.220 (+0.98%). The dollar index on Friday settled higher on the possibility of an accelerated Fed rate hike after the strong U.S. May payroll report of +280,000. In addition, the euro was undercut by the Greek crisis after Greece deferred a debt payment due to the IMF Friday until the end of the month. USD/JPY surged to a 13-year high on expectations for the Fed to tighten monetary policy while the BOJ expands stimulus.
July WTI crude oil (CLN15 -0.68%) this morning is down -52 cents (-0.88%). July gasoline (RBN15 -0.49%) is down -0.0112 (-0.55%). Friday's closes: CLN5 +0.96 (+1.66%), RBN5 +0.0465 (+2.35%). Jul crude oil and gasoline on Friday rebounded from 1-week lows and closed higher on the larger-than-expected +280,000 increase in U.S. May non-farm payrolls, which signaled stronger economic growth and energy demand. In addition, Baker Hughes reported that U.S. operating oil rigs fell to a 4-3/4 year low of 642, which will undercut U.S. oil production. Other bearish factors included the stronger dollar and OPEC's decision to maintain its crude production target at 30 million bpd, thus keeping alive its price war on high-cost crude oil producers.

GLOBAL EVENT CALENDAR06/08/2015
US1100 ETUSDA weekly grain export inspections.
1600 ETUSDA weekly crop progress.
JPN0030 ETJapan May bankruptcies, Apr -18.16% y/y.
0100 ETJapan May eco-watchers survey current expected +0.4 to 54.0, Apr 53.6. May eco-watchers survey outlook expected -0.2 to 54.0, Apr 54.2.
GER0200 ETGerman Apr industrial production expected +0.6% m/m and +0.9% y/y, Mar -0.5% m/m and +0.1% y/y.
0200 ETGerman Apr trade balance expected +19.4 billion euros, Mar +23.0 billion euros. Apr exports expected -0.4% m/m, Mar +1.3% m/m. Apr imports expected +0.5% m/m, Mar +2.4% m/m.
0200 ETGerman Apr current account balance expected +20.5 billion euros, Mar +27.9 billion euros.
EUR0430 ETEurozone Jun Sentix investor confidence expected -0.9 to 18.7, May 19.6.
UK1901 ETUK May BRC sales like-for-like expected +1.2% y/y, Apr -2.4% y/y.
CHI2130 ETChina May CPI expected +1.3% y/y, Apr +1.5% y/y. China May PPI expected -4.5% y/y, Apr -4.6% y/y.

U.S. STOCK CALENDAR06/08/2015
CompanyTickerTimeEvent DescriptionPeriodEstimate
American Airlines Group IncAAL USBef-mktMay 2015 Sales and Revenue Release - Traffic Results2015
Sears Holdings CorpSHLD US6:00Q1 2016 Earnings ReleaseQ1 2016-2.59
H&R Block IncHRB US16:30Q4 2015 Earnings CallQ4 2015
United Continental Holdings IncUAL US17:00May 2015 Sales and Revenue Release - Operational Performance2015
H&R Block IncHRB USQ4 2015 Earnings ReleaseQ4 20152.682
McDonald's CorpMCD USMay 2015 Sales and Revenue Release2015
Sears Holdings CorpSHLD USQ1 2016 Earnings CallQ1 2016
GoPro IncGPRO USAnnual General Meeting
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Wednesday, February 4, 2015

BARCHART MORNING CALL 2/4

BARCHART MORNING CALL

OVERNIGHT MARKETS AND NEWS
March E-mini S&Ps (ESH15 -0.36%) this morning are down -0.16% and European stocks are down -0.36% as a drop in crude oil undercuts energy producers and leads the overall market lower. Equity losses were limited after the PBOC cut banks' reserve ratio by 50 bp to 19.50%. European stocks also found support from stronger-than-expected Eurozone Dec retail sales and from an upward revision to the Eurozone Jan composite PMI to a 6-month high. Asian stocks closed mixed: Japan +1.98%, Hong Kong +0.51%, China -1.04%, Taiwan +0.69%, Australia +1.23%, Singapore +0.28%, South Korea +0.49%, India -0.40%. Chinese stocks closed lower after a gauge of services activity last month slowed to the weakest pace in 6 months, although Chinese stocks have yet to react to the reserve ratio cut by the PBOC, which was done after Chinese equity markets had closed. Commodity prices are mixed. Mar crude oil (CLH15 -3.02%) is down -2.96% and Mar gasoline (RBH15 -2.29%) is down -2.45%. Apr gold (GCJ15 +0.60%) is up +0.51%. Mar copper (HGH15 +0.35%) is up +0.41% to a 2-week high after China lowered banks' reserve ratios, which may spur economic growth. Agriculture prices are mixed. The dollar index (DXY00 +0.09%) is up +0.19%. EUR/USD (^EURUSD) is down -0.24%. USD/JPY (^USDJPY) is down -0.09%. Mar T-note prices (ZNH15 unch) are unchanged.
In an attempt to add liquidity to the economy, the Peoples Bank of China (PBOC) lowered the reserve ratio that banks must set aside as reserves by 50 bp to 19.50%, effective Feb 5.
Eurozone Dec retail sales rose +0.3% m/m and +2.8% y/y, better than expectations of unch m/m and +2.0% y/y with the +2.8% y/y gain the largest annual increase in 7-3/4 years.
The Eurozone Jan Markit composite PMI was revised upward to 52.6 from the originally reported 52.2, the fastest pace of expansion in 6 months.
The German Jan Markit services PMI was revised upward to 54.0 from the originally reported 52.7.
The UK Jan Lloyds business barometer rose 4 to 49, the best level in 4 months.
The UK Jan Markit/CIPS services PMI rose +1.4 to 57.2, better than expectations of +0.5 to 56.3.
The China Jan HSBC services PMI fell -1.6 to 51.8, the slowest pace of expansion in 6 months.
Japan Dec real cash earnings fell -1.4% y/y, the eighteenth consecutive month that earnings have contracted.
U.S. STOCK PREVIEW
Today’s Jan ADP employment report is expected to show a gain of +220,000, exceeding the +200,000 mark for the fifth consecutive month. Today’s Jan ISM non-manufacturing index is expected to show a -0.1 point decline to 56.4, adding to the -2.3 point decline to 56.5 seen in December.
There are 54 of the S&P 500 companies that report earnings today: Marathon Petroleum (consensus $1.38), Automatic Data Processing (0.68), Boston Scientific Corp (0.22), Clorox (0.89), Spectra Energy (0.33), Cognizant Technology Solutions (0.64), General Motors (0.83), Merck & Co (0.86), Whirlpool Corp (3.19), Humana (1.16). Equity conferences this week include: Media Insights & Engagement Conference on Tue-Thu, Cowen and Company Aerospace/Defense Conference & Transport Forum on Wed-Thu.


OVERNIGHT U.S. STOCK MOVERS
Humana (HUM +1.78%) reported Q4 EPS of $1.09, below consensus of $1.16.
Massachusetts Financial reported a 5.9% passive stake in Franklin Resources (BEN +2.39%) .
FDA approved Pfizer's (PFE +1.17%) Ibrance drug for postmenopausal women with breast cancer.
Wabash (WNC +6.19%) reported Q4 EPS of 27 cents, highe than consensus of 24 cents.
Silgan Holdings (SLGN +1.27%) reported Q4 adjusted EPS of 58 cents, above consensus of 56 cents.
C.H. Robinson (CHRW +2.44%) reported Q4 EPS of 77 cents, higher than consensus of 76 cents.
Franklin Mutual reported a 5.7% passive stake in Symantec (SYMC +2.13%) , a 5.9% passive stake in Hospira (HSP +0.47%) , and a 5.3% passive stake in CIT Group (CIT +2.90%) .
Arthur J. Gallagher (AJG +1.04%) reported Q4 adjusted EPS of 56 cents, more than consensus of 54 cents.
Disney (DIS +2.36%) rose over 4% in after-hours trading after it reported Q1 EPS of $1.27, much better than consensus of $1.07.
Edwards Lifesciences (EW +1.21%) jumped 4% in after--hours trading after it reported Q4 EPS pf $1.06, better than consensus of 95 cents.
Take-Two (TTWO -0.50%) climbed over 5% in after-hours trading after it reported Q3 EPS of $1.87, well above consensus of $1.52, and hen raised guidance on fiscal 2015 EPS $1.65-$1.75, higher than consensus of $1.38.
Wynn Resorts (WYNN +4.05%) slid 5% in after-hours trading after it reported Q4 adjusted EPS of $1.20, below consensus of $1.43.
Gilead (GILD +0.93%) reported Q4 EPS of $2.43, more than consensus of $2.22, and then announced a 43 cent dividend and a $15 billion share buyback program.
Aflac (AFL +1.58%) reported Q1 operating EPS of $1.29, right on consensus, with Q1 revenue of $5.51 billion, above consensus of $5.48 billion.
Unum Group (UNM +2.94%) reported Q4 adjusted EPS of 90 cents, higher than consensus of 88 cents.
Chipotle (CMG +1.98%) reported Q4 EPS of $3.84, better than consensus of $3.79.
Fiserv (FISV +1.43%) reported Q4 adjusted EPS of 89 cents, right on consensus, although Q4 adjusted revenue of $1.23 billion was below consensus of $1.32 billion.
Macy's M raised guidance on fiscal 2014 EPS outlook to $4.35-$4.37 from $4.25-$4.35, higher than consensus of $4.35.
MARKET COMMENTS
Mar E-mini S&Ps (ESH15 -0.36%) this morning are down -3.25 points (-0.16%). The S&P 500 index on Tuesday closed higher: S&P 500 +1.44%, Dow Jones +1.76%, Nasdaq +0.97%. Supportive factors included (1) a rally in energy producers after crude oil climbed to a 2-week high, (2) increased M&A activity after the WSJ reported that Office Depot is an advanced merger talks with Staples, and (3) reduced concern that Greece will default on its debt after the Greek government backed off on a plan to write down its debt.
Mar 10-year T-notes (ZNH15 unch) this morning are unch. Mar 10-year T-note futures prices on Tuesday closed lower. Closes: TYH5 -27.50, FVH5 -15.50. Bearish factors included (1) reduced safe-haven demand for T-notes after Greece's government backed down from its call for a debt write down, and (2) increased inflation expectations as a jump in crude to a 2-week high boosted the U.S. 10-year breakeven inflation rate to a 4-week high.
The dollar index (DXY00 +0.09%) this morning is up +0.182 (+0.19%). EUR/USD (^EURUSD) is down -0.0028 (-0.24%). USD/JPY (^USDJPY) is down -0.10 (-0.09%). The dollar index on Tuesday fell to a 1-week low and closed lower: Dollar index -0.904 (-0.96%), EUR/USD +0.01369 (+1.21%), USD/JPY -0.025 (-0.02%). Bearish factors included (1) the biggest drop in U.S. Dec factory orders in 4 months, which may prompt the Fed to delay interest rate hikes, and (2) strength in EUR/USD which climbed to a 1-week high as Greek sovereign debt concerns eased after Greek Finance Minister Varoufakis outlined plans to swap some Greek debt owned by the ECB and the European Financial Stability Facility for new securities that would allow Greece to avoid imposing a haircut on creditors.
Mar WTI crude oil (CLH15 -3.02%) this morning is down -$1.57 a barrel (-2.96%) and Mar gasoline (RBH15 -2.29%) is down -0.0392 (-2.45%). Mar crude oil and Mar gasoline on Tuesday closed sharply higher with Mar crude at a 1-month high and Mar gasoline at a 1-1/4 month high: CLH5 +3.48 (+7.02%), RBH5 +0.0567 (+3.67%). Bullish factors included (1) the fall in the dollar index to a 1-week low, (2) concern that gasoline production will decline as a strike by U.S. oil refinery workers that account for 10% of U.S. refining capacity entered its third day.
GLOBAL EVENT CALENDAR02/04/2015
US0700 ETWeekly MBA mortgage applications, previous -3.2% with purchase sub-index -0.1% and refi sub-index -5.1%.
0815 ETJan ADP employment expected +220,000, Dec +241,000.
0900 ETTreasury announces amount of 3-year T-notes (previous $24 billion), 10-year T-notes (previous $21 billion) and 30-year T-bonds (previous $13 billion) to be auctioned Feb 10-12 in the Feb quarterly refunding.
0945 ETFinal-Jan Markit U.S. services PMI, previous +0.7 to 54.0. Final-Jan Markit U.S. composite PMI, previous 56.5.
1000 ETJan ISM non-manufacturing expected -0.1 to 56.4, Dec 56.5.
1030 ETEIA Weekly Petroleum Status Report.
1245 ETCleveland Fed President Loretta Mester speaks on the economic outlook and the banking sector to the 2015 Ohio Bankers League Economic Summit.
GER0355 ETRevised German Jan Markit services PMI, previous +0.6 to 52.7.
EUR0400 ETRevised Eurozone Jan Markit composite PMI, previous +0.8 to 52.2.
0500 ETEurozone Dec retail sales expected unch m/m and +2.0% y/y, Nov +0.6% m/m and +1.5% y/y.
UK0430 ETUK Jan Markit/CIPS services PMI expected +0.5 to 56.3, Dec 55.8.
0430 ETUK Jan Lloyds business barometer, Dec 45.
U.S. STOCK CALENDAR02/04/2015
CompanyTickerTimeEvent DescriptionPeriodEstimate
Marathon Petroleum CorpMPC USBef-mktQ4 2014 Earnings ReleaseQ4 20141.377
Automatic Data Processing IncADP USBef-mktQ2 2015 Earnings ReleaseQ2 20150.678
Boston Scientific CorpBSX USBef-mktQ4 2014 Earnings ReleaseQ4 20140.215
Clorox Co/TheCLX USBef-mktQ2 2015 Earnings ReleaseQ2 20150.893
Spectra Energy CorpSE USBef-mktQ4 2014 Earnings ReleaseQ4 20140.328
Cognizant Technology Solutions CorpCTSH USBef-mktQ4 2014 Earnings ReleaseQ4 20140.643
General Motors CoGM USBef-mktQ4 2014 Earnings ReleaseQ4 20140.83
Merck & Co IncMRK USBef-mktQ4 2014 Earnings ReleaseQ4 20140.856
Whirlpool CorpWHR US6:00Q4 2014 Earnings ReleaseQ4 20143.186
Humana IncHUM US6:00Q4 2014 Earnings ReleaseQ4 20141.162
Motorola Solutions IncMSI US7:00Q4 2014 Earnings ReleaseQ4 20141.155
Fastenal CoFAST US7:00January 2015 Sales and Revenue Release2015
Southern Co/TheSO US7:30Q4 2014 Earnings ReleaseQ4 20140.384
Cognizant Technology Solutions CorpCTSH US7:30Q4 2014 Earnings CallQ4 2014
Motorola Solutions IncMSI US8:00Q4 2014 Earnings CallQ4 2014
Boston Scientific CorpBSX US8:00Q4 2014 Earnings CallQ4 2014
Ralph Lauren CorpRL US8:00Q3 2015 Earnings ReleaseQ3 20152.508
Merck & Co IncMRK US8:00Q4 2014 Earnings CallQ4 2014
Automatic Data Processing IncADP US8:30Q2 2015 Earnings CallQ2 2015
CH Robinson Worldwide IncCHRW US8:30Q4 2014 Earnings CallQ4 2014
Aflac IncAFL US9:00Q4 2014 Earnings CallQ4 2014
Ralph Lauren CorpRL US9:00Q3 2015 Earnings CallQ3 2015
Spectra Energy CorpSE US9:00Q4 2014 Earnings CallQ4 2014
Humana IncHUM US9:00Q4 2014 Earnings CallQ4 2014
Marathon Petroleum CorpMPC US10:00Q4 2014 Earnings CallQ4 2014
Level 3 Communications IncLVLT US10:00Q4 2014 Earnings CallQ4 2014
Unum GroupUNM US10:00Q4 2014 Earnings CallQ4 2014
Whirlpool CorpWHR US10:00Q4 2014 Earnings CallQ4 2014
General Motors CoGM US10:00Q4 2014 Earnings CallQ4 2014
Equity ResidentialEQR US11:00Q4 2014 Earnings CallQ4 2014
Texas Instruments IncTXN US11:00Analyst Meeting - Capital Management Strategy
Accenture PLCACN US12:00Annual General MeetingY 2015
Southern Co/TheSO US13:00Q4 2014 Earnings CallQ4 2014
Clorox Co/TheCLX US13:30Q2 2015 Earnings CallQ2 2015
Twenty-First Century Fox IncFOXA US16:00Q2 2015 Earnings ReleaseQ2 20150.414
Under Armour IncUA US16:15Q4 2014 Earnings ReleaseQ4 20140.389
Twenty-First Century Fox IncFOXA US16:30Q2 2015 Earnings CallQ2 2015
O'Reilly Automotive IncORLY US16:30Q4 2014 Earnings ReleaseQ4 20141.67
Keurig Green Mountain IncGMCR US17:00Q1 2015 Earnings CallQ1 2015
CBRE Group IncCBG US17:00Q4 2014 Earnings CallQ4 2014
Under Armour IncUA US17:00Q4 2014 Earnings CallQ4 2014
Yum! Brands IncYUM USAft-mktQ4 2014 Earnings ReleaseQ4 20140.662
Keurig Green Mountain IncGMCR USAft-mktQ1 2015 Earnings ReleaseQ1 20150.89
Noble Corp plcNE USAft-mktQ4 2014 Earnings ReleaseQ4 20140.482
Macerich Co/TheMAC USAft-mktQ4 2014 Earnings ReleaseQ4 20141.033
FMC CorpFMC USAft-mktQ4 2014 Earnings ReleaseQ4 20141.001
CBRE Group IncCBG USAft-mktQ4 2014 Earnings ReleaseQ4 20140.695
Essex Property Trust IncESS USAft-mktQ4 2014 Earnings ReleaseQ4 20142.201
Prudential Financial IncPRU USAft-mktQ4 2014 Earnings ReleaseQ4 20142.382
Cincinnati Financial CorpCINF USAft-mktQ4 2014 Earnings ReleaseQ4 20140.845
Lincoln National CorpLNC USAft-mktQ4 2014 Earnings ReleaseQ4 20141.474
Allstate Corp/TheALL USAft-mktQ4 2014 Earnings ReleaseQ4 20141.681
AGL Resources IncGAS USQ4 2014 Earnings ReleaseQ4 20140.8
Level 3 Communications IncLVLT USQ4 2014 Earnings ReleaseQ4 20140.313
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Monday, October 27, 2014

BARCHART MORNING CALL 10/27

BARCHART MORNING CALL

OVERNIGHT MARKETS AND NEWS
December E-mini S&Ps (ESZ14 -0.22%) this morning are down -0.20% and European stocks are down -0.55%. U.S. and European stocks had initially rallied up to 2-week highs in early trade Monday after the ECB said that most European banks passed stress tests, but stocks erased their gains and headed lower after German business confidence slid for a sixth month to the lowest in 1-3/4 years. Asian stocks closed mixed: Japan +0.63%, Hong Kong -0.68%, China -0.91%, Taiwan -0.21%, Australia +0.86%, Singapore +0.11%, South Korea +0.40%, India -0.37%. Japan's Nikkei Stock Index climbed to a 1-1/2 month high on optimism over U.S. stock earnings and after the ECB gave most European banks a clean bill of health following stress tests. Chinese stocks tumbled as the Shanghai Stock Index fell to a 1-3/4 month low after a Hong Kong bourse operator said that he had no idea when authorities will give the green light for cross-border trading between the two exchanges. Chinese stocks had rallied sharply in anticipation that price discounts versus Hong Kong stocks would narrow with the start of cross-border trading. Commodity prices are mostly lower. Dec crude oil (CLZ14 -0.52%) is down -0.53%. Dec gasoline (RBZ14 -0.48%) is down -0.87%. Dec gold (GCZ14 -0.08%) is down -0.10%. Dec copper (HGZ14 +0.31%) is up +0.07%. Agriculture prices are lower as dry, warm weather in the Midwest over the weekend sped up the pace of the U.S. harvest. The dollar index (DXY00 -0.07%) is down -0.08%. EUR/USD (^EURUSD) is up +0.01%. USD/JPY (^USDJPY) is down -0.26%. Dec T-note prices (ZNZ14 +0.02%) are down -0.5 of a tick.
The German Oct IFO business climate fell -1.5 to 103.2, a larger decline than expectations of -0.2 to 104.5 and the lowest in 1-3/4 years. The Oct IFO current assessment fell -2.0 to 108.4, more than expectations of -0.5 to 110.0 and the lowest in 1-1/2 years. Oct IFO expectations dropped -1.0 to 98.3, a bigger decline than expectations of -0.1 to 99.2 and the lowest in 1-3/4 years.
Eurozone Sep M3 money supply rose +2.5% y/y and +2.1% 3-month average, more than expectations of +2.2% y/y and +2.0% 3-month average with the 2.5% y/y gain the largest annual increase in 16 months.
Data from the ECB showed that European bank lending to companies and households in Sep fell -1.2% y/y. Although it was an improvement from the -1.5% y/y fall in Aug, it was the 29th consecutive month that bank lending has shrunk.
Japan Sep PPI services rose +3.5% y/y, right on expectations and matched the largest increase in 23 years.
U.S. STOCK PREVIEW
Today’s Sep pending home sales report is expected to show an increase of +1.0% m/m.  There are 13 of the S&P 500 companies that report earnings today with notable reports including:  Amgen (consensus $2.11), Seagate (1.25), Merck (0.88), General Growth (0.31), AvalonBay Communities (1.73).  Equity conferences this week include:  RMA Annual Risk Management Conference 2014 on Mon-Tue, and GTEC (Government Technology Exhibition & Conference) 2014 on Tue-Thu.
OVERNIGHT U.S. STOCK MOVERS
Allergan (AGN +0.46%) reported Q3 EPS of $1.72, below consensus of $1.77.
Merck & Co. (MRK +1.73%) reported Q3 EPS of 72 cents, weaker than consensus of 88 cents.
Roper Industries (ROP +0.43%) reported Q3 EPS of $1.55, better than consensus of $1.53.
Precision Drilling (PDS -1.99%) reported Q3 EPS of 18 cents, higher than consensus of 17 cents.
Armstrong World (AWI -0.14%) reported Q3 adjusted EPS of 83 cents, stronger than consensus of 78 cents.
Business Insider reports that Wal-Mart and Best Buy have joined Rite Aid and CVS Health in rejecting Apple's (AAPL +0.37%) mobile payments system Apple Pay.
Rackspace (RAX +0.98%) was upgraded to 'Buy' from 'Neutral' at BofA/Merrill Lynch.
Ventas (VTR -1.28%) was downgraded to 'Neutral' from 'Buy' at UBS.
Halliburton (HAL -0.13%) was downgraded to 'Buy' from 'Conviction Buy' at Goldman Sachs.
Anadarko (APC -1.29%) and EP Energy (EPE +1.64%) were both downgraded to 'Neutral' from 'Buy' at Goldman Sachs.
Precision Castparts (PCP -0.26%) was downgraded to 'Neutral' from 'Overweight' at JPMorgan Chase.
Acuity Brands (AYI +0.76%) was upgraded to 'Conviction Buy' from 'Buy' at Goldman Sachs.
Alcoa (AA +1.91%) was upgraded to 'Buy' from 'Hold' at Deutsche Bank.
MARKET COMMENTS
Dec E-mini S&Ps (ESZ14 -0.22%) this morning are down -4.00 points (-0.20%). The S&P 500 index on Friday rallied to a 2-week high and closed higher: S&P 500 +0.71%, Dow Jones +0.76%, Nasdaq +0.74%. Bullish factors included (1) strong Q3 stock earnings results with 70% of reporting S&P 500 companies beating estimates, and (2) an unexpected +0.2% increase in Sep new home sales to a 6-year high of 467,000 after Aug was revised lower to 466,000 from 504,000. Gains in stocks were limited on concern that the spread of the Ebola virus may slow the global economy after the first case of the virus was reported in New York City.
Dec 10-year T-notes (ZNZ14 +0.02%) this morning are down -0.5 of a tick. Dec 10-year T-note futures prices on Friday closed slightly higher on concern the spread of the Ebola virus will slow the economy and bolster the case for the Fed to delay raising interest rates. Closes: TYZ4 +0.50, FVZ4 +0.75. T-note prices fell back from their best levels after stocks rallied and after Sep new home sales climbed to a 6-year high.
The dollar index (DXY00 -0.07%) this morning is down -0.069 (-0.08%). EUR/USD (^EURUSD) is up +0.0001 (+0.01%). USD/JPY (^USDJPY) is down -0.28 (-0.26%). The dollar index on Friday closed lower. Closes: Dollar index -0.111 (-0.13%), EUR/USD +0.00232 (+0.18%), USD/JPY -0.125 (-0.12%). Bearish factors included (1) strength in EUR/USD after German Nov GfK consumer confidence unexpectedly rose +0.1 to 8.5, better than expectations of -0.3 to 8.0, and (2) concern that the spread of the Ebola virus may undercut economic growth and prompt the Fed to delay any interest rate hikes after New York City reported its first case of the virus.
Dec WTI crude oil (CLZ14 -0.52%) this morning is down -43 cents (-0.53%) and Dec gasoline (RBZ14 -0.48%) is down -0.0187 (-0.87%). Dec crude and Dec gasoline on Friday closed lower. Closes: CLZ4 -1.08 (-1.32%), RBZ4 -0.0238 (-1.10%). Negative factors included (1) speculation that Saudi Arabia won’t cut crude production in an attempt to push oil prices higher as they try to keep their share of OPEC output, and (2) concern that the spread of the Ebola virus may undercut consumer sentiment and spending and lead to slower economic growth and energy demand after the first case of the Ebola virus was reported in New Your City.
GLOBAL EVENT CALENDAR10/27/2014
US0945 ETOct Markit services PMI expected -0.9 to 58.0, Sep -0.6 to 58.9. Oct Markit composite PMI, Sep -0.7 to 59.0.
1000 ETSep pending home sales expected +1.0% m/m and +2.2% y/y, Aug -1.0% m/m and -4.1% y/y.
1030 ETOct Dallas Fed manufacturing activity index expected +0.2 to 11.0, Sep +3.7 to 10.8.
1100 ETUSDA weekly grain export inspections.
1600 ETUSDA weekly crop progress.
GER0500 ETGerman Oct IFO business climate expected +0.1 to 104.8. Oct IFO current assessment expected -0.5 to 110.0, Sep 110.5. Oct IFO expectations expected -0.1 to 99.2, Sep 99.3.
EUR0500 ETEurozone Sep M3 money supply expected +2.2% y/y and +2.0% 3-mo avg, Aug +2.0% y/y and +1.8% 3-mo avg.
UK0700 ETUK Oct CBI reported sales expected -6 to 25, Sep 31.
JPN1950 ETJapan Sep retail sales expected +0.9% m/m and +0.8% y/y, Aug +1.9% m/m and +1.2% y/y.
CHI2130 ETChina Sep industrial profits, Aug -0.6% y/y.
U.S. STOCK CALENDAR10/27/2014
Company NameTickerTimeEvent DescriptionPeriodEstimate
Allergan Inc/United StatesAGN USBef-mktQ3 2014 Earnings ReleaseQ3 20141.765
Seagate Technology PLCSTX USBef-mktQ1 2015 Earnings ReleaseQ1 20151.246
Merck & Co IncMRK USBef-mktQ3 2014 Earnings ReleaseQ3 20140.878
Roper Industries IncROP US7:00Q3 2014 Earnings ReleaseQ3 20141.534
Merck & Co IncMRK US8:00Q3 2014 Earnings CallQ3 2014
Roper Industries IncROP US8:30Q3 2014 Earnings CallQ3 2014
Franklin Resources IncBEN US8:30Q4 2014 Earnings ReleaseQ4 20140.928
Franklin Resources IncBEN US8:30Q4 2014 Earnings Call - Pre-RecordedC4 2014
Allergan Inc/United StatesAGN US9:00Q3 2014 Earnings CallQ3 2014
Seagate Technology PLCSTX US9:00Q1 2015 Earnings CallQ1 2015
Charles Schwab Corp/TheSCHW US11:00Business Update Call
Franklin Resources IncBEN US11:00Q4 2014 Earnings CallQ4 2014
Plum Creek Timber Co IncPCL US17:00Q3 2014 Earnings CallQ3 2014
XL Group PLCXL US17:00Q3 2014 Earnings CallQ3 2014
Amgen IncAMGN US17:00Q3 2014 Earnings CallQ3 2014
Plum Creek Timber Co IncPCL USAft-mktQ3 2014 Earnings ReleaseQ3 20140.297
Hartford Financial Services Group Inc/TheHIG USAft-mktQ3 2014 Earnings ReleaseQ3 20140.825
General Growth Properties IncGGP USAft-mktQ3 2014 Earnings ReleaseQ3 20140.313
XL Group PLCXL USAft-mktQ3 2014 Earnings ReleaseQ3 20140.62
Amgen IncAMGN USAft-mktQ3 2014 Earnings ReleaseQ3 20142.112
Masco CorpMAS USAft-mktQ3 2014 Earnings ReleaseQ3 20140.317
AvalonBay Communities IncAVB USAft-mktQ3 2014 Earnings ReleaseQ3 20141.732
Universal Health Services IncUHS US17:01Q3 2014 Earnings ReleaseQ3 20141.342
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