MORNING CALL 3/2

MORNING CALL

Wednesday, March 2nd, 2016View Older Reports

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OVERNIGHT MARKETS AND NEWS

March E-mini S&Ps (ESH16 -0.14%) are down -0.28% as they follow crude oil prices lower, although European stocks are up +0.39% at a 1-month high as miners and commodity producers rallied and led the overall market higher after the price of copper jumped to a 3-1/2 month high. Crude oil is down -1.95% after data late yesterday from API showed U.S. crude inventories surged +9.9 million bbl last week. Asian stocks settled higher: Japan +4.11%, Hong Kong +3.07%, China +4.26%, Taiwan +0.69%, Australia +2.01%, Singapore +1.66%, South Korea +1.70%, India +1.95%. Chinese stocks rallied on speculation the government will announce measures to boost growth at legislative meetings that begin Saturday. China's National People's Congress will begin a 2-week meeting starting March 5 where delegates will sign off on a new 5-year economic plan. Japan's Nikkei Stock Index climbed to a 3-week high as exporter stocks rallied after the yen fell to a 2-week low against eh dollar, which improves earnings prospects of exporters

The dollar index (DXY00 +0.10%) is up +0.10%. EUR/USD (^EURUSD) is down -0.12%. USD/JPY (^USDJPY) is up +0.32% at a 2-week high.

Jun T-note prices (ZNM16 -0.12%) are down -4 ticks at a 4-week low on hawkish comments from San Francisco Fed President Williams who said the U.S. economy is set to "power ahead." which increases the chance of a Fed rate hike at the Mar 15-16 FOMC meeting.

In a telephone interview with the Financial Times, San Francisco Fed President Williams said "he doesn't see any signs in the data of any slackening of domestic demand" and that the U.S. economy is set to "power ahead" and push inflation back to target as positive U.S. domestic demand outweighs weakness from abroad.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly MBA mortgage applications (previous -4.3% with purchase sub-index +2.2% and refi sub-index -7.7%), (2) Feb ADP employment change (expected +188,000, Jan +205,000), (3) Feb New York ISM (Jan -7.4 to 54.6), (4) San Francisco Fed President John Williams' speech at the Bishop Ranch Forum in San Ramon, CA, and (5) Fed Beige Book.

There are 2 of the S&P 500 companies that report earnings today: Costco Wholesale (consensus $1.28), Brown-Forman (0.94).

U.S. IPO's scheduled to price today: Syndax Pharmaceuticals (SNDX).

Equity conferences this week include: Morgan Stanley Technology Media & Technology Conference on Mon-Thu, Pacific Crest Securities Emerging Technology Summit on Tue-Wed, UBS Natural Gas & Electric Utilities Conference on Wed, Bank of America Merrill Lynch Global Agriculture and Chemicals Conference on Wed-Thu, Bank of America Refining Conference on Thu, Citi Asset Management, Broker Dealer & Exchanges Investor Conference on Thu, Gabelli & Company Waste & Environmental Services Conference on Thu, Simmons Energy Conference on Thu-Fri.

OVERNIGHT U.S. STOCK MOVERS

Dollar Tree (DLTR +2.22%) was downgraded to 'Market Perform' from 'Strong Buy' at Raymond James.

Amazon.com (AMZN +4.80%) was rated a new 'Outperform' at BMO with a price target of $700.

Weatherford International PLC (WFT -3.28%) dropped over 3% in after-hours trading after it announced an offering of 80 million shares of common stock.

Ross Stores (ROST +2.27%) gained almost 1% in after-hours trading after it reported Q4 EPS of 66 cents, higher than consensus of 64 cents.

Ascena Retail Group (ASNA +4.73%) slid over 4% in after-hours trading after it reported Q2 revenue of $1.84 billion, weaker than consensus of $1.88 billion, and then lowered guidance in Q3 EPS to 10 cents-14 cents, below consensus of 19 cents.

Veeva Systems (VEEV +3.25%) dropped over 2% in after-hours trading after it lowered guidance on fiscal 2016 adjusted EPS to 54 cents-56 cents, below consensus of 57 cents.

Bob Evans Farms BOBE reported Q3 adjusted EPS of 62 cents, better than consensus of 55 cents.

NeoPhotonics (NPTN +5.75%) rose over 5% in after-hours trading after it reported Q4 adjusted EPS of 16 cents, better than consensus of 10 cents.

Chuy's Holdings (CHUY +2.34%) climbed over 6% in after-hours trading after it reported Q4 adjusted EPS of 18 cents, higher than consensus of 13 cents.

Guidewire Software (GWRE +2.62%) jumped 8% in after-hours trading after it raised guidance on fiscal 2016 adjusted EPS to 64 cents-71 cents from a prior view of 57 cents-66 cents, above consensus of 64 cents.

Darling Ingredients (DAR +1.44%) rose over 3% in after-hours trading after it reported Q4 pro forma adjusted Ebitda of $103.1 million, above estimates of $97.1 million.

Big 5 Sporting Goods (BGFV -2.99%) slumped over 12% in after-hours trading after it lowered guidance for Q1 EPS to between a net -5 cent loss to a 2 cent profit, below consensus of a 6 cent profit.

MARKET COMMENTS

Mar E-mini S&Ps (ESH16 -0.14%) this morning are down -5.50 points (-0.28%). Tuesday's closes: S&P 500 +2.39%, Dow Jones +2.11%, Nasdaq +3.15%. The S&P 500 on Tuesday rose to a 1-3/4 month high and closed sharply higher on the strong U.S. economic reports, which included the +1.3 point increase in the U.S. Feb ISM manufacturing index to 49.5 (stronger than expectations of +0.3 to 48.5) and the +1.5% jump in U.S Jan construction spending (stronger than expectations of +0.3% m/m and the largest increase in 8 months). Stocks were undercut by the -0.4 point decline in the China Feb manufacturing PMI to 49.0, weaker than expectations of unch at 49.4 and matched Nov 2011 as the steepest pace of contraction in 7 years.

Jun 10-year T-notes (ZNM16 -0.12%) this morning are down -4 ticks at a 4-week low. Tuesday's closes: TYM6 -29.50, FVM6 -16.00. Jun T-notes on Tuesday sold off to a 3-week low and closed lower on strength in the U.S. Feb ISM manufacturing and Jan construction spending reports, reduced safe-haven demand with the rally in stocks, and an increase in inflation expectations after the 10-year T-note breakeven inflation rate climbed to a 1-1/2 month high.

The dollar index (DXY00 +0.10%) this morning is up +0.101 (+0.10%). EUR/USD (^EURUSD) is down -0.0013 (-0.12%). USD/JPY (^USDJPY) is up +0.36 (+0.32%) at a 2-week high. Tuesday's closes: Dollar Index +0.141 (+0.14%), EUR/USD -0.00051 (-0.05%), USD/JPY +1.32 (+1.17%). The dollar index on Tuesday rose to a 4-week high and settled higher on the stronger-than-expected U.S. Feb ISM manufacturing and Jan construction spending reports, which may accelerate a Fed rate hike. In addition, EUR/USD slumped to a 1-month low on expectations for the ECB to expand stimulus at next week's policy meeting.

Apr WTI crude (CLJ16 -1.37%) this morning is down -67 cents (-1.95%) and Apr gasoline (RBJ16 +0.61%) is up +0.0007 (+0.05%). Tuesday's closes: CLJ6 +0.65 (+1.93%), RBJ6 -0.0202 (-1.53%). Apr crude oil and gasoline on Tuesday settled mixed. Metals prices were boosted by the rally in global stocks and the stronger-than-expected U.S. Feb ISM manufacturing and Jan construction spending reports, which were positive for energy demand. Metals prices were undercut by the rally in the dollar index to a 4-week high and by expectations for U.S. crude supplies to increase by +2.75 million bbl in Wednesday's EIA inventory report.

GLOBAL EVENT CALENDAR03/02/2016

US	0700 ET	Weekly MBA mortgage applications, previous -4.3% with purchase sub-index +2.2% and refi sub-index -7.7%.
	0815 ET	Feb ADP employment change expected +188,000, Jan +205,000.
	0945 ET	Feb New York ISM, Jan -7.4 to 54.6.
	1000 ET	San Francisco Fed President John Williams speaks at the Bishop Ranch Forum in San Ramon, CA.
	1030 ET	EIA Weekly Petroleum Status Report.
	1400 ET	Fed Beige Book.
UK	0430 ET	UK Feb Markit/CIPS construction PMI expected +0.5 to 55.5, Jan 55.0.
EUR	0500 ET	Eurozone Jan PPI expected -1.0% m/m and -2.9% y/y, Dec -0.8% m/m and -3.0% y/y.
CHI	2045 ET	China Feb Caixin composite PMI, Jan +0.7 to 50.1.

U.S. STOCK CALENDAR03/02/2016

Company	Ticker	Time	Event Description	Period	Estimate
Brown-Forman Corp	BF/B US	8:00	Q3 2016 Earnings Release	Q3 2016	0.94
Huntsman Corp	HUN US	8:00	Investor Day	Y 2016
Exxon Mobil Corp	XOM US	9:00	Analyst Meeting	Y 2016
Progressive Corp/The	PGR US	9:00	Investor Relations Conference Call
TransDigm Group Inc	TDG US	9:00	Annual General Meeting	Y 2016
Honeywell International Inc	HON US	10:00	Investor Conference	Y 2016
Brown-Forman Corp	BF/B US	10:00	Q3 2016 Earnings Call	Q3 2016
Middleby Corp/The	MIDD US	11:00	Q4 2015 Earnings Call	Q4 2015
Cerner Corp	CERN US	12:00	Investment Community Meeting	Y 2016
WESCO International Inc	WCC US	13:00	Investor Day	Y 2016
Target Corp	TGT US	14:30	Financial Community Meeting	Y 2016
Cable One Inc	CABO US	Aft-mkt	Q4 2015 Earnings Release	Q4 2015	3.33
Costco Wholesale Corp	COST US	21:00	Q2 2016 Earnings Release	Q2 2016	1.281
Helmerich & Payne Inc	HP US		Annual General Meeting
Costco Wholesale Corp	COST US		February 2016 Sales and Revenue Release	2016
Hologic Inc	HOLX US		Annual General Meeting
PTC Inc	PTC US		Annual General Meeting
AECOM	ACM US		Annual General Meeting
Mallinckrodt PLC	MNK US		Annual General Meeting	Y 2016

MORNING CALL 12/2

MORNING CALL

Wednesday, December 2nd, 2015View Older Reports

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OVERNIGHT MARKETS AND NEWS

December E-mini S&Ps (ESZ15 unch) are up +0.08% at a 4-week high and European stocks are up +0.28% ahead of speeches today and tomorrow from Fed Chair Yellen. European stocks and government bonds also rose after weaker-than-expected Eurozone Nov CPI reinforced the argument for the ECB to expand stimulus when it meets tomorrow. Gains in European stocks were muted as ArcelorMittal tumbled over 6% and pulled other mining companies lower after Vale SA predicted steel prices will slump more next year. Asian stocks settled mixed: Japan -0.37%, Hong Kong +0.44%, China +2.33%, Taiwan -0.07%, Australia -0.15%, Singapore +0.47%, South Korea -0.84%, India -0.20%. China's Shanghai Composite closed up over 2% as financial companies and property stocks rallied on prospects for additional monetary stimulus from the PBOC.

The dollar index (DXY00 +0.30%) is up +0.28%. EUR/USD (^EURUSD) is down -0.36% after the slower-than-expected Eurozone Nov consumer prices bolstered the outlook for additional ECB easing. USD/JPY (^USDJPY) is up +0.20%.

Mar T-note prices (ZNH16 -0.06%) are unchanged.

Comments Tuesday night from Fed Governor Brainard suggest she sees the federal funds rate topping out at a lower level than in previous expansions. She said "a broad deterioration in foreign growth prospects, together with greater risk sensitivity in the wake of the crisis and changes in the rate of potential output growth, may be contributing to a 'new normal.'" This new normal "implies a delay in the date of liftoff and a shallower path for the federal funds rate over several years."

The Eurozone Nov CPI estimate rose +0.1% y/y, less than expectations of +0.2% y/y. The Nov core CPI rose +0.9% y/y, less than expectations of +1.1% y/y.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly MBA mortgage applications (previous -3.2% with purchase sub-index -0.5% and refi sub-index -4.8%), (2) Atlanta Fed President Dennis Lockhart speech on the U.S. economy to the Broward Workshop in Fort Lauderdale, FL, (3) Nov ADP employment change (expected +190,000, Oct +182,000), (4) Fed Chair Janet Yellen's welcoming remarks at the National College Fed Challenge Finals, (5) revised Q3 non-farm productivity (expected +2.2% vs last +1.6%) and revised Q3 unit labor costs (expected +1.0% vs last +1.4%), (6) Fed Governor Danial Tarullo's opening remarks at an Economic Growth and Regulatory Paperwork Reduction Act Outreach meeting, (7) Nov New York ISM (Oct +21.3 to 65.8), (8) Fed Chair Janet Yellen speech to the Economic Club of Washington, (9) the Fed's Beige Book, (10) San Francisco Fed President John Williams' speech on the economic outlook to community leaders in Portland, Oregon.

There are 4 of the Russell 1000 companies report earnings today: Brown-Forman (consensus $1.00), PVH Corp (2.47), Synopsys (0.65), Avago Technologies (2.38).

U.S. IPO's scheduled to price today: Sabre Corp (SABR), Rice Midstream Partners (RMP), Travelport Worldwide (TVPT), ChromaDex Corp (CDXC),

Equity conferences during the remainder of this week include: Credit Suisse Technology Conference on Tue, Citi Basic Materials Conference on Tue-Wed, Cowen and Company Ultimate Energy Conference on Tue-Wed, Piper Jaffray Health Care Conference on Tue-Wed, Credit Suisse Global Industrials Conference on Tue-Thu, Credit Suisse Technology, Media & Telecom Conference on Tue-Thu, Citi Global Financial Conference on Wed, J.P. Morgan Fintech & Specialty Finance Forum on Wed, Wells Fargo Connected Commerce Investor Summit on Wed, NASDAQ OMX Group, Inc. Investor Program on Wed-Thu, ASEAN Business Summit on Wed-Thu, Bank of America Merrill Lynch Leveraged Finance Conference on Thu.

OVERNIGHT U.S. STOCK MOVERS

Yahoo! (YHOO -0.30%) jumped over 8% in pre-market trading after the WSJ cited people familiar with the matter as saying the company's board will consider the sale of its main Internet business.

Fitbit (FIT +1.74%) rose nearly 3% in pre-market trading after the U.S. International Trade Commission said it would investigate a patent complaint filed by Fotbit against Jawbone Inc.

Bristol-Myers Squibb (BMY +1.87%) was upgraded to 'Buy' from 'Neutral' at Guggenheim Securities with a price target of $82.

Lockheed Martin (LMT +0.47%) won a Pentagon contract worth $914 million to upgrade F-16 aircraft for Singapore's military.

Louisiana-Pacific (LPX -2.45%) was added to the 'Top Pick' list at RBC.

Bob Evans (BOBE +0.13%) slid nearly 5% in after-hours trading after it lowered guidance on its fiscal 2016 revenue estimate to $1.35 billion from a prior view of $1.33 billion-$1.39 billion, below consensus of $1.36 billion.

Mobileye (MBLY -0.32%) rose 1% in after-hours trading after the stock was rated a new 'Buy' at Evercore ISI with a price target of $68.

Powell Industries (POWL -0.31%) slumped 10% in after-hours trading after it reported Q4 adjusted EPS of 45 cents, below consensus of 48 cents, and then lowered guidance on fiscal 2016 adjusted EPS to 65 cents-$1.05, well below consensus of $1.62.

Guidewire Software (GWRE +2.06%) rose over 4% in after-hours trading after it reported Q1 adjusted EPS of 7 cents, over double consensus of 3 cents.

Ascena Retail (ASNA +3.97%) jumped over 7% in after-hours trading after it reported Q1 adjusted EPS of 36 cents, higher than consensus of 29 cents.

Culp (CFI +2.66%) reported Q2 EPS of 41 cents, better than consensus 40 cents, although Q2 revenue of $77.0 million was below consensus of $77.6 million.

OncoGenex Pharmaceuticals (OGXI +1.55%) plunged over 25% in after-hours trading after it said some patients in its prostate cancer drug study did not respond to treatment with its custirsen drug.

MARKET COMMENTS

Dec E-mini S&Ps (ESZ15 unch) this morning are up +1.75 points (+0.08%) at a 4-week high. Tuesday's closes: S&P 500 +1.07%, Dow Jones +0.95%, Nasdaq +1.11%. The S&P 500 on Tuesday rallied to a 3-week high and settled higher on speculation that any Fed interest rate hikes will be slow and shallow after the Nov ISM manufacturing index unexpectedly fell -1.5 to a 6-1/3 year low of 48.6, weaker than expectations of +0.4 to 50.5. The S&P 500 also received a boost from a rally in China's Shanghai Composite that shook off early losses and closed up +0.32% after the China Nov manufacturing PMI unexpected fell -0.2 to a 3-1/4 year low of 49.6 and fueled speculation that the PBOC will expand stimulus.

Mar 10-year T-notes (ZNH16 -0.06%) this morning are unchanged. Tuesday's closes: TYH6 +16.50, FVH6 +10.25. Mar T-notes on Tuesday jumped to a 1-month high and closed higher on speculation that the Fed will move to raise interest rates very gradually after the Nov ISM manufacturing index unexpectedly contracted by the most in 6-1/3 years. T-notes also received a boost from a lack of inflation pressures after the Nov ISM prices paid sub-index contracted at its steepest pace in 9 months.

The dollar index (DXY00 +0.30%) this morning is up +0.275 (+0.28%). EUR/USD (^EURUSD) is down -0.0038 (-0.36%). USD/JPY (^USDJPY) is up +0.25 (+0.20%). Tuesday's closes: Dollar Index -0.375 (-0.37%), EUR/USD -0.0028 (-0.26%), USD/JPY +0.31 (+0.25%). The dollar index on Tuesday closed lower on the unexpected contraction in the Nov ISM manufacturing index, which bolsters the outlook for a gradual pace of Fed tightening, and strength in EUR/USD after the Eurozone Oct unemployment rate unexpectedly fell to a nearly 4-year low.

Jan crude oil (CLF16 -1.12%) this morning is down -43 cents (-1.03%) and Jan gasoline (RBF16 -1.71%) is down -0.0214 (-1.57%). Tuesday's closes: CLF6 unch, RBF6 +0.0526 (+4.02%). Jan crude oil and gasoline on Tuesday settled mixed with Jan crude at a 1-week low and Jan gasoline at a 3-week high. Crude oil prices were undercut by news that China's Nov manufacturing PMI contracted by the most in 3-1/4 years and the Nov ISM manufacturing index contracted by the most in 6-1/3 years. Crude oil is also seeing weakness on expectations that OPEC will keep its crude production quotas unchanged when it meets on Friday. Supportive factors included the weaker dollar and strength in gasoline prices after the crack spread jumped to a 2-1/2 month high when the EPA increased the level of renewable fuels that must be blended with gasoline.

GLOBAL EVENT CALENDAR12/02/2015

US	0700 ET	Weekly MBA mortgage applications, previous -3.2% with purchase sub-index -0.5% and refi sub-index -4.8%.
	0810 ET	Atlanta Fed President Dennis Lockhart speaks on the U.S. economy to the Broward Workshop in Fort Lauderdale, FL.
	0815 ET	Nov ADP employment change expected +190,000, Oct +182,000.
	0830 ET	Fed Chair Janet Yellen delivers welcoming remarks at the National College Fed Challenge Finals.
	0830 ET	Revised Q3 non-farm productivity expected +2.2% vs last +1.6%. Revised Q3 unit labor costs expected +1.0% vs last +1.4%.
	0900 ET	Fed Governor Danial Tarullo makes opening remarks at an Economic Growth and Regulatory Paperwork Reduction Act Outreach meeting.
	0945 ET	Nov New York ISM, Oct +21.3 to 65.8.
	1030 ET	EIA Weekly Petroleum Status Report.
	1225 ET	Fed Chair Janet Yellen speaks to the Economic Club of Washington.
	1400 ET	Fed Beige Book.
	1540 ET	San Francisco Fed President John Williams delivers a speech on the economic outlook to community leaders in Portland, Oregon.
UK	0430 ET	UK Nov Markit/CIPS construction PMI expected -0.3 to 58.5, Oct 58.8.
EUR	0500 ET	Eurozone Nov CPI expected +0.2% y/y, Oct unch y/y. Nov core CPI expected +1.1% y/y, Oct +1.1% y/y.
	0500 ET	Eurozone Oct PPI expected -0.4% m/m and -3.2% y/y, Sep -0.3% m/m and -3.1% y/y.

U.S. STOCK CALENDAR12/02/2015

Company	Ticker	Time	Event Description	Period	Estimate
Brown-Forman Corp	BF/B US	8:00	Q2 2016 Earnings Release	Q2 2016	0.996
Brown-Forman Corp	BF/B US	10:00	Q2 2016 Earnings Call	Q2 2016
Microsoft Corp	MSFT US	11:00	Annual General Meeting	Y 2015
Synopsys Inc	SNPS US	17:00	Q4 2015 Earnings Call	Q4 2015
Avago Technologies Ltd	AVGO US	17:00	Q4 2015 Earnings Call	Q4 2015
PVH Corp	PVH US	Aft-mkt	Q3 2016 Earnings Release	Q3 2016	2.466
Synopsys Inc	SNPS US	Aft-mkt	Q4 2015 Earnings Release	Q4 2015	0.654
Avago Technologies Ltd	AVGO US	Aft-mkt	Q4 2015 Earnings Release	Q4 2015	2.377
Costco Wholesale Corp	COST US	21:00	November 2015 Sales and Revenue Release	2015
AutoNation Inc	AN US		November 2015 Sales and Revenue Release	2015
Copart Inc	CPRT US		Annual General Meeting
Delta Air Lines Inc	DAL US		November 2015 Sales and Revenue Release - Traffic Results	2015

BARCHART MORNING CALL 12/10

BARCHART MORNING CALL

Wednesday, December 10th, 2014View Older Reports

Everything you need to know about the markets in one free daily newsletter.

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OVERNIGHT MARKETS AND NEWS

December E-mini S&Ps (ESZ14 -0.10%) this morning are down -0.06% and European stocks are up +0.56% after Die Zeit reported that ECB President Draghi called German Finance Minister Schaeuble after the Dec 4 ECB meeting in an attempt to garner support in Germany for a government-bond purchase plan to be decided as soon as next month. Asian stocks closed mixed: Japan -2.25%, Hong Kong +0.16%, China +3.69%, Taiwan -1.06%, Australia -0.45%, Singapore +0.18%, South Korea -1.52%, India +0.12%. Chinese stocks rallied nearly 4% after a slowdown in inflation bolstered the case for more monetary easing after China Nov CPI rose less than expected at the slowest pace in 5 years. Commodity prices are mostly lower. Jan crude oil (CLF15 -1.91%) is down -1.93% after OPEC cut its 2015 global demand forecast for its crude to a 12-year low. Jan gasoline (RBF15 -2.09%) is down -2.16% at a fresh 5-year low. Feb gold (GCG15 -0.34%) is down -0.33%. Mar copper (HGH15 -0.92%) is down -0.70%. Agriculture prices are mixed. The dollar index (DXY00 unch) is down -0.02%. EUR/USD (^EURUSD) is unch. USD/JPY (^USDJPY) is down -0.33%. Mar T-note prices (ZNH15 unch) are unch.
China Nov CPI rose +1.4% y/y, less than expectations of +1.6% y/y and the smallest pace of increase in 5 years. China Nov PPI fell -2.7% y/y, a larger decline than expectations of -2.4% y/y and the steepest drop in 1-1/2 years.
The Japan Nov consumer confidence index unexpectedly fell -1.2 to 37.7, weaker than expectations of +0.6 to 39.5 and the lowest in 7 months.
The Japan Q4 BSI large all-industry business conditions fell -6.1 to 5.0, a bigger decline than expectations of -1.1 to 10.0. Q4 BSI large manufacturing business conditions fell -4.6 to 8.1.
Japan Nov PPI fell -0.2% m/m, a smaller decline than expectations of -0.3% m/m. On an annual basis, Nov PPI rose +2.7% y/y, more than expectations of +2.6% y/y but still the slowest pace of increase in 8 months.

U.S. STOCK PREVIEW

Today’s Nov monthly Treasury budget statement is expected to show a deficit of -$65.0 billion, which would be substantially better than the -$135.2 billion deficit seen a year ago in Nov 2013. The Treasury today will sell $21 billion of 10-year T-notes in a reopening of last month’s 2-1/4% 10-year note of Nov 2024. There are 2 of the Russell 1000 companies that report earnings today: Toll Brothers (consensus $0.73), Costco (1.09).
Equity conferences during the remainder of this week include: Goldman Sachs Financial Services Conference on Tue-Wed, Barclays Capital Global Technology Conference on Tue-Wed, Wells Fargo Energy Symposium on Tue-Wed, Barclays Real Estate Conference on Wed, BMO Technology Conference on Wed, Mitsubishi UFJ Securities Property REIT Conference on Wed, Wells Fargo Securities Research, Economics & Strategy Energy Symposium on Wed, Credit Lyonnais Securities Asia Ltd Americas Innovation Summit on Wed, Oppenheimer Healthcare Conference on Wed, Bank of America Merrill Lynch US Basic Materials Conference on Wed-Thu, Capital One Southcoast Energy Conference on Wed-Thu, Bank of America Merrill Lynch Animal & Dental Health Summit on Thu, and Desjardins Securities Materials Conference on Thu.

OVERNIGHT U.S. STOCK MOVERS

Goldman Sachs (GS +0.14%) was downgraded to 'Neutral' from 'Positive' at Susquehanna.
Disney (DIS -0.92%) was downgraded to 'Hold' from 'Buy' at Topeka due to valuation.
Genesco (GCO +1.16%) was upgraded to 'Neutral' from 'Sell' at Goldman Sachs.
British Petroleum (BP -0.90%) was upgraded to 'Buy' from 'Hold' at Deutsche Bank.
Costco Wholesale (COST +0.50%) reported Q1 EPS of $1.12, higher than consensus of $1.09.
Yum! Brands (YUM -1.62%) fell nearly 5% in pre-market trading after the company said 2014 EPS, excluding some items, wil rise by a mid-single-figit percentage, well below a previous forecast of 20% growth.
Krispy Kreme (KKD +0.50%) fell over 4% in after-hours trading after it reported Q3 adjusted EPS of 18 cents, less than consensus of 19 cents.
Korn/Ferry (KFY +1.71%) rose over 3% in after-hours trading after it reported Q2 EPS of 51 cents, better than consensus of 45 ccents.
Lazard reported a 5.072% passive stake in Mobile TeleSystems (MBT -0.31%) .
CHC Group (HELI +7.35%) reported a Q3 EPS loss of -31 cents, a smaller loss than consensus of -38 cents.

MARKET COMMENTS

Dec E-mini S&Ps (ESZ14 -0.10%) this morning are down -1.25 points (-0.06%). The S&P 500 index on Tuesday fell to a 3-week low and closed lower, although stocks recovered from their worst levels after energy producers and technology companies rose: S&P 500 -0.02%, Dow Jones -0.29%, Nasdaq +0.38%. Bearish factors included (1) carry-over weakness from a slide in world equity markets after China tightened collateral rules for short-term loans and sparked a sharp sell-off in Chinese stocks, and (2) renewed Greek debt concerns after the Greek government brought forward the process for choosing a new President this month, a move that risks triggering parliamentary elections that could put a party in power that opposes the terms of Greece’s bailout by the EU.
Mar 10-year T-notes (ZNH15 unch) this morning are unch. Mar 10-year T-note futures prices on Tuesday closed higher: TYH5 +12.00, FVH5 +6.75. Bullish factors included (1) reduced inflation expectations after the 10-year break-even rate fell to a new low, and (2) increased safe-haven demand for Treasuries after the S&P 500 tumbled to a 3-week low.
The dollar index (DXY00 unch) this morning is down -0.022 (-0.02%). EUR/USD (^EURUSD) is unch. USD/JPY (^USDJPY) is down -0.39 (-0.33%). The dollar index on Tuesday closed lower. Closes: Dollar index -0.351 (-0.39%), EUR/USD +0.00571 (+0.46%), USD/JPY -0.99 (-0.82%). Bearish factors included (1) strength in the yen as USD/JPY fell to a 1-week low after a slide in global equity markets boosted the safe-haven demand for the yen, and (2) strength in EUR/USD which rallied after German Nov exports were a bit stronger than expected.
Jan WTI crude oil (CLF15 -1.91%) this morning is down -$1.23 a barrel (-1.93%) and Jan gasoline (RBF15 -2.09%) is down -0.0372 (-2.16%) at a 5-year low. Jan crude Tuesday rebounded from a 5-1/3 year low and Jan gasoline prices recovered from a 5-year low and closed higher. Closes: CLF5 +0.77 (+1.22%), RBF5 +0.017 (+1.00%). Supportive factors included (1) short covering in most commodities after the dollar index fell, and (2) expectations for Wednesday’s weekly EIA crude inventories to fall -2.7 million bbl.

GLOBAL EVENT CALENDAR12/10/2014

US	0700 ET	Weekly MBA mortgage applications, previous -7.3% with purchase sub-index +2.5% and refi sub-index -13.4%.
	1030 ET	EIA Weekly Petroleum Status Report.
	1200 ET	USDA Dec WASDE crop production.
	1300 ET	Treasury auctions $21 billion 10-year T-notes.
	1400 ET	Nov monthly budget statement expected -$65.0 billion, Nov-2013 -$135.2 billion.
JPN	0000 ET	Japan Nov consumer confidence index expected +0.6 to 39.5, Oct 38.9.
	1850 ET	Japan Oct tertiary industry index expected -0.2% m/m, Sep +1.0% m/m.
	1850 ET	Japan Oct machine orders expected -1.7% m/m and -0.3% y/y, Sep +2.9% m/m and +7.3% y/y.
UK	1901 ET	UK Nov RICS house price balance expected 15%, Oct 20%.

U.S. STOCK CALENDAR12/10/2014

Company	Ticker	Time	Event Description	Period	Estimate
Toll Brothers Inc	TOL US	Bef-mkt	Q4 2014 Earnings Release	Q4 2014	0.727
Costco Wholesale Corp	COST US	Bef-mkt	Q1 2015 Earnings Release	Q1 2015	1.091
BioMarin Pharmaceutical Inc	BMRN US	8:00	Investor Day	Y 2014
Diebold Inc	DBD US	9:00	Investment Community Conference	Y 2014
Tyson Foods Inc	TSN US	9:30	Investor Day	Y 2014
McDonald's Corp	MCD US	11:00	Investor Meeting	Y 2014
Costco Wholesale Corp	COST US	11:00	Q1 2015 Earnings Call	Q1 2015
Brown-Forman Corp	BF/B US	13:00	Analyst Meeting	Y 2014
Pall Corp	PLL US	13:00	Annual General Meeting
Bunge Ltd	BG US	13:00	Investor Day	Y 2014
Toll Brothers Inc	TOL US	14:00	Q4 2014 Earnings Call	Q4 2014
Altera Corp	ALTR US	16:45	Q4 2015 Guidance Call	Q4 2015
Kennametal Inc	KMT US		November 2014 Monthly Orders Release
Progressive Corp/The	PGR US		November 2014 Sales and Revenue Release	2014
Charles Schwab Corp/The	SCHW US		November 2014 Sales and Revenue Release - Activity Report	2014

BARCHART MORNING CALL 6/4

BARCHART MORNING CALL

Wednesday, June 4th, 2014View Older Reports

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OVERNIGHT MARKETS AND NEWS

June E-mini S&Ps (ESM14 -0.17%) this morning are down -0.13% ahead of the May ADP employment change later this morning and European stocks are down -0.25% at a 1-week low after the Eurozone May composite PMI was revised lower, a sign of weaker economic growth. European stocks also fell back on profit taking ahead of Thursday's ECB meeting where the ECB is expected to boost stimulus measures to spur economic growth and combat deflation risks. Asian stocks closed mostly lower: Japan +0.22%, Hong Kong -0.60%, China -1.01%, Taiwan -0.04%, Australia -0.64%, Singapore -0.50%, South Korea closed for holiday, India -0.21%. Japanese stocks bucked the trend and closed higher, led by gains in exporters, after the yen fell to a 1-month low against the dollar, which boosts the earnings prospects of exporters. China's Shanghai Stock Index fell to a 2-week low on concern that government measures to revive China's property market may come up short. Commodity prices are mixed. July crude oil (CLN14 +0.75%) is up +0.61% ahead of the weekly EIA inventory data later today. July gasoline (RBN14 +0.12%) is up +0.09%. Aug gold (GCQ14 +0.10%) is up +0.04%. July copper (HGN14 -1.42%) is down -1.37% at a 3-week low. Agriculture and livestock prices are mostly higher. The dollar index (DXY00 unch) is up +0.04%. EUR/USD (^EURUSD) is down -0.07%. USD/JPY (^USDJPY) is up +0.14% at a 1-month high. Sep T-note prices (ZNU14 -0.04%) are down -0.5 of a tick.
Eurozone Apr PPI fell -0.1% m/m and -1.2% y/y, right on expectations. Eurozone producer prices have now fallen for 9 straight months on a year-over-year basis.
The Eurozone May Markit composite PMI was revised lower to 53.5 from the originally reported 53.9.
Eurozone Q1 GDP was left unrevised at +0.2% q/q and +0.9% y/y.
The German May Markit/BME composite PMI was revised lower to 55.6 from the originally reported 56.1.
The UK May BRC shop price index fell -1.4% y/y, a larger decline than expectations of -1.3% y/y.

U.S. STOCK PREVIEW

Today’s May ADP employment report is expected to show a solid increase of +210,000, down slightly from +220,000 in April. Today’s April U.S. trade deficit is expected to widen slightly to -$40.8 billion from -$40.4 billion in March. Today’s May ISM non-manufacturing index is expected to show a small increase of +0.3 points to 55.5, adding to the +2.1 point increase to 55.2 seen in April. There are 4 of the Russell 1000 companies that report earnings today: Brown-Forman (consensus $0.58), Leidos Holdings (0.54), PVH (1.49), Greif (0.61).
Equity conferences this week include: Jefferies Global Health Care Conference on Mon-Thu, National Association of Real Estate Investment Trusts REITWeek Investor Forum on Tue-Thu, Bank of America Merrill Lynch Global Technology Conference on Tue-Wed, Stephens Spring Conference on Tue-Wed, Bank of America Merrill Lynch Energy and Power Leveraged Finance Conference on Tue-Wed, Goldman Sachs Dotcommerce Conference on Wed, KBW Asset Management Conference on Wed, Sandler O'Neill Global Exchange & Brokerage Conference on Wed,
Deutsche Bank Global Industrials and Basic Materials Conference on Wed-Thu, Credit Suisse Engineering & Construction Conference on Thu, UBS Aerospace & Defense Conference on Thu.

OVERNIGHT U.S. STOCK MOVERS

Barclays (BCS -0.79%) was downgraded to 'Neutral' from 'Overweight' at HSBC.
Broadcom (BRCM +2.99%) was downgraded to 'Hold' from 'Buy' at Standpoint Research.
The WSJ reports that NRG Energy (NRG +1.21%) is close to buying Alta Wind Energy Center (EIX +0.97%) , the largest wind farm in North America, for $800 million.
Coach (COH -0.20%) was downgraded to 'Neutral' from 'Buy' at Sterne Agee.
Credit Suisse (CS -0.74%) was upgraded to 'Conviction Buy' from 'Neutral' at Goldman Sachs.
Deutsche Bank (DB -0.22%) was upgraded to 'Neutral' from 'Sell' at Goldman Sachs.
Under Armour (UA -0.72%) gained 1.4% in pre-market trading after the stock was upgraded to 'Buy' from 'Hold' at Jeffries.
Northrop Grumman (NOC -0.39%) was awarded a $9.9 billion government contract for B-2 modernization and sustainment.
ABM Industries (ABM -1.79%) reported Q4 adjusted EPS of 33 cents, well below consensus of 40 cents.
Ascena Retail (ASNA -0.79%) reported Q3 adjusted EPS of 27 cents, well ahead of consensus of 19 cents.
Mattress Firm (MFRM -0.74%) reported Q1 adjusted EPS of 31 cents, below consensus of 36 cents.

MARKET COMMENTS

June E-mini S&Ps (ESM14 -0.17%) this morning are down -2.50 points (-0.13%). The S&P 500 index on Tuesday fell back from Monday’s record high on long liquidation pressures and closed slightly lower. Bullish factors included (1) the +0.7% increase in U.S. Apr factory orders, better than expectations of +0.5%, and (2) expectations for the ECB to expand its stimulus measures when it meets Thursday, which may help facilitate global economic growth. Closes: S&P 500 -0.04%, Dow Jones -0.13%, Nasdaq -0.08%.
Sep 10-year T-notes (ZNU14 -0.04%) this morning are down -0.5 of a tick. Sep 10-year T-note futures prices on Tuesday slipped to a 2-1/2 week low and closed lower. Bearish factors included (1) the larger-than-expected increase in U.S. Apr factory orders along with the upward revision to Mar, and (2) carry-over weakness from a drop in European bond markets which fell back on long liquidation ahead of Thursday’s ECB meeting. Closes: TYU4 -15.00, FVU4 -6.00.
The dollar index (DXY00 unch) this morning is up +0.030 (+0.04%). EUR/USD (^EURUSD) is down -0.0009 (-0.07%). USD/JPY (^USDJPY) is up +0.14 (+0.14%) at a 1-month high. The dollar index on Tuesday closed lower. EUR/USD gained after the Eurozone Apr unemployment rate unexpectedly fell -0.1 to a 17-month low of 11.7%. Losses in the dollar were limited after the yen weakened as USD/JPY climbed to a 1-month high on speculation that Japan’s Government Pension Investment Fund (GPIF), Japan’s biggest, will diversify more of its assets into foreign investments from yen-denominated investments. Closes: Dollar Index -0.090 (-0.11%), EUR/USD +0.00309 (+0.23%), USD/JPY +0.128 (+0.13%).
July WTI crude oil (CLN14 +0.75%) this morning is up +63 cents (+0.61%). July gasoline (RBN14 +0.12%) is up +0.0027 (+0.09%). July crude and gasoline prices on Tuesday settled mixed. Crude prices rallied after U.S. Apr factory orders rose more than expected, a sign of strength in energy demand and consumption. July gasoline fell to a 2-week low and closed lower on expectations for U.S. gasoline production to ramp up now that seasonal refinery maintenance has ended. Closes: CLN4 +0.19 (+0.19%) RBN4 -0.0012 (-0.04%).

GLOBAL EVENT CALENDAR06/04/2014

US	0700 ET	Weekly MBA mortgage applications, previous -1.2% with purchase sub-index -1.1% and the refi sub-index 1.4%.
	0815 ET	May ADP employment change expected +210,000, Apr +220,000.
	0830 ET	Apr trade balance expected -$40.8 billion, Mar -$40.4 billion.
	0830 ET	Revised Q1 non-farm productivity expected -3.0%, previous -1.7%. Revised Q1 unit labor costs expected +5.3%, previous +4.2%.
	1000 ET	May ISM non-manufacturing index expected +0.3 to 55.5, Apr +2.1 to 55.2.
	1030 ET	EIA Weekly Petroleum Status Report.
	1400 ET	Fed Beige Book.
EUR	0400 ET	Revised Eurozone May composite PMI, previous 53.9.
	0500 ET	Eurozone Apr PPI expected -0.1% m/m and -1.2% y/y, Mar -0.2% m/m and -1.6% y/y.
	0500 ET	Revised Eurozone Q1 GDP, previous +0.2% q/q and +0.9% y/y.

U.S. STOCK CALENDAR06/04/2014

Company Name	Ticker	Time	Event Description	Period	Estimate
Leidos Holdings Inc	LDOS US	6:00	Q1 2015 Earnings Release	Q1 2015	0.537
Fastenal Co	FAST US	7:00	May 2014 Sales and Revenue Release	2014
Brown-Forman Corp	BF/B US	8:00	Q4 2014 Earnings Release	Q4 2014	0.582
Leidos Holdings Inc	LDOS US	8:00	Q1 2015 Earnings Call	Q1 2015
Prudential Financial Inc	PRU US	8:30	Analyst & Investor Meeting	Y 2014
Compass Minerals International Inc	CMP US	8:30	Investor Day	Y 2014
Cobalt International Energy Inc	CIE US	8:30	Analyst Day	Y 2014
American Airlines Group Inc	AAL US	9:00	Annual General Meeting	Y 2014
SCANA Corp	SCG US	9:00	Analyst Day	Y 2014
Devon Energy Corp	DVN US	9:00	Annual General Meeting	Y 2014
Science Applications International Corp	SAIC US	9:00	Annual General Meeting	Y 2014
Brown-Forman Corp	BF/B US	10:00	Q4 2014 Earnings Call	Q4 2014
Trimble Navigation Ltd	TRMB US	10:00	Analyst Day	Y 2014
New York Community Bancorp Inc	NYCB US	10:00	Annual General Meeting	Y 2014
HomeAway Inc	AWAY US	10:00	Annual General Meeting	Y 2014
Pandora Media Inc	P US	10:30	Annual General Meeting	Y 2014
PVH Corp	PVH US	Aft-mkt	Q1 2015 Earnings Release	Q1 2015	1.488
Greif Inc	GEF US	Aft-mkt	Q2 2014 Earnings Release	Q2 2014	0.61
Bank of America Corp	BAC US		2014 Global Energy and Power Leveraged Finance Conference
Walgreen Co	WAG US		May 2014 Sales and Revenue Release	2014
AutoNation Inc	AN US		May 2014 Sales and Revenue Release	2014
Ingram Micro Inc	IM US		Annual General Meeting
BioMarin Pharmaceutical Inc	BMRN US		Annual General Meeting
SolarCity Corp	SCTY US		Annual General Meeting
CST Brands Inc	CST US		Annual General Meeting