Morning Call 6/19

Barchart Morning Call

Barchart.com - Mon Jun 19, 6:40AM CDT

OVERNIGHT MARKETS AND NEWS

Sep E-mini S&Ps (ESU17 +0.31%) this morning are up +0.27% and European stocks are up +0.92%. Gains in French stocks are leading European bourses higher after Sunday's second-round of French elections showed French President Macron's party won about 350 seats in France's 577-member National Assembly, the largest majority in 15-years. Jul WTI crude oil (CLN17 +0.47%) is up +0.29% and is giving a boost to energy stocks after data from OPEC showed that compliance with OPEC crude production cuts was 110% in May. Asian stocks settled higher: Japan +0.62%, Hong Kong +1.16%, China +0.68%, Taiwan +0.92%, Australia +0.54%, Singapore +0.49%, South Korea +0.59%, India +0.82%. Japan's Nikkei Stock Index rose to a 1-week high on signs of strength in the Japanese economy after trade data showed Japan May exports rose at the fastest pace in 2-1/3 years and Japan May imports climbed at the fastest pace in 3-years. Hong Kong stocks rallied over 1% before a decision Tuesday on whether MSCI will include China shares in global indexes.

The dollar index (DXY00 -0.04%) is down -0.06%. EUR/USD (^EURUSD) is up +0.10%. USD/JPY (^USDJPY) is up +0.09%.

Sep 10-year T-note prices (ZNU17 +0.01%) are up +3 ticks.

China May new home prices rose in 56 of 70 cities tracked by the government, down from 58 cities that gained in April, due to the government's measures to tighten liquidity and cool the housing market.

The Japan May trade balance unexpectedly fell into deficit by -203.4 billion yen, when expectations were for a 43.3-billion-yen surplus. May exports rose +14.9% y/y, weaker than expectations of +16.0% y/y, but still the largest increase in 2-1/3 years. May imports rose +17.8% y/y, stronger than expectations of +14.5% y/y and the largest increase in 3 years.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) New York Fed President William Dudley (voter) holds a business roundtable discussion with the North Country Chamber of Commerce and North Country Regional Economic Development Council in Plattsburgh, NY, (2) Chicago Fed President Charles Evans (voter) discusses current economic conditions and monetary policy at a Money Marketeers of New York University event, (3) weekly grain export inspections, (4) USDA crop conditions and planting progress.

Notable Russell 2000 earnings reports today include: none.

U.S. IPO's scheduled to price today: none.

Equity conferences this week: BIO International Convention on Mon, Goldman Sachs Leveraged Finance Conference on Tue, JMP Group Securities Life Sciences Conference on Tue, Macquarie Group Ltd Global Quantitative Research Conference on Tue, Jefferies Global Consumer Conference on Tue-Wed, Oppenheimer Consumer Conference on Tue-Wed, Tudor Picker & Holt Hotter N Hell Energy Conference on Tue-Thu, Wells Fargo Securities West Coast Energy Conference on Tue-Wed, SunTrust Robinson Utilities & Power Summit on Thu, Wells Fargo Securities 5G Forum on Thu.

OVERNIGHT U.S. STOCK MOVERS

Amazon.com (AMZN +2.44%) gained 1% in pre-market trading after a person familiar with the matter said Amazon plans to cut prices and jobs at Whole Foods Market to make the store competitive with Wal-Mart Stores.

Broadcom Ltd (AVGO -0.73%) fell 3% in pre-market trading after Nikkan Kogyo reported that Toshiba is in the final stages of selecting a rival bid of Broadcom’s for the sale of its semiconductor division.

Costco Wholesale (COST -7.19%) was downgraded to 'Neutral' from 'Buy' at Deutsche Bank.

Biogen (BIIB -1.29%) was upgraded to 'Neutral' from 'Sell' at UBS with a price target of $270.

Nucor (NUE +0.59%) was upgraded to 'Buy' from 'Neutral' at Longbow Research with a 12-month target price of $66.

U.S. Steel (X -1.03%) was upgraded to 'Buy' from 'Neutral' at Longbow Research with a 12-month target price of $30.

Kroger (KR -9.24%) was downgraded to 'Equal-Weight' from 'Overweight' at Morgan Stanley.

Travelers (TRV +0.33%) was downgraded to 'Neutral' from 'Buy' at Bank of America/Merrill Lynch.

Cisco's (CSCO +0.16%) senior vice president and chief of operations, Rebecca Jacoby, sold 92,840 shares of the company's stock at an average price of $31.71 on June 14.

Huntington Ingalls (HII -4.90%) received a $3.01 billion modification from the U.S. Department of Defense to a previously awarded contract for the procurement of the detail, design, and construction of Landing Helicopter Assault Replacement Flight 1 Amphibious Assault Ship (LHA-8).

Six Flags Entertainment (SIX -0.20%) filed an 8.5 million share shelf for holder H Partners Management LLC.

Bandera Partners boosted its stake in Famous Dave's of America (DAVE -1.41%) to 15.6% from 12% reported in March.

MARKET COMMENTS

Sep E-mini S&Ps (ESU17 +0.31%) this morning are up +6.50 points (+0.27%). Friday's closes: S&P 500 +0.03%, Dow Jones +0.11%, Nasdaq -0.34%. The S&P 500 on Friday closed slightly higher. Stocks prices were boosted by strength in energy stocks as crude oil rallied +0.63% and by reduced inflation expectations that may keep the Fed from additional rate hikes after the 10-year T-note breakeven inflation rate dropped to a 7-1/2 month low. Stocks were undercut by the unexpected -5.5% fall in U.S. May housing starts to an 8-month low of 1.092 million (weaker than expectations of +4.1% to 1.22 million) and by a sell-off in food retailers after Amazon.com bought Whole Foods Markets for $13.7 billion, which raises concern that other food retailers will have to cut prices to compete with Amazon, which will hurt their earnings.

Sep 10-year T-notes (ZNU17 +0.01%) this morning are up +3 ticks. Friday's closes: TYU7 +3.50, FVU7 +3.50. Sep 10-year T-notes on Friday closed higher: T-note prices were boosted by the unexpected decline in U.S. May housing starts to an 8-month low and the fall in May building permits to a 13-month low. T-note prices were also boosted by the larger-than-expected decline in the June University of Michigan U.S. consumer sentiment index to a 7-month low and by reduced inflation expectations after the 10-year T-note breakeven inflation rate dropped to a 7-1/2 month low.

The dollar index (DXY00 -0.04%) this morning is down -0.061 (-0.06%). EUR/USD (^EURUSD) is up +0.11 (+0.10%) and USD/JPY (^USDJPY) is up +0.10 (+0.09%). Friday's closes: Dollar index -0.29 (-0.30%), EUR/USD +0.0053 (+0.48%), USD/JPY -0.05 (-0.05%). The dollar index on Friday closed lower on the weaker-than-expected U.S. May housing starts and building permits, which bolsters the case for the Fed to refrain from further tightening, and the slide in stocks, which boosted the safe-haven demand for the yen.

Jul WTI crude oil prices (CLN17 +0.47%) this morning are up +13 cents (+0.29%) and July gasoline (RBN17 +0.69%) is +0.0047 (+0.32%). Friday's closes: Jul crude +0.28 (+0.63%), Jul gasoline +0.0191 (+1.33%). Jul crude oil and gasoline on Friday closed higher on a weaker dollar and on the increase in the crack spread to a 4-session high, which may boost refinery demand for crude oil to refine into gasoline.

GLOBAL EVENT CALENDAR06/19/2017

		Monday, June 19
US	0800 ET	New York Fed President William Dudley (voter) holds a business roundtable discussion with the North Country Chamber of Commerce and North Country Regional Economic Development Council in Plattsburgh, NY.
	1100 ET	USDA weekly grain export inspections.
	1600 ET	USDA crop conditions and planting progress.
	1900 ET	Chicago Fed President Charles Evans (voter) discusses current economic conditions and monetary policy at a Money Marketeers of New York University event.
		Tuesday, June 20
US	0315 ET	Fed Vice Chair Stanley Fischer is keynote speaker at a macroprudential conference in Amsterdam jointly hosted by the Dutch and Swedish central banks.
	0745 ET	Boston Fed President Eric Rosengren (non-voter) speaks at a macroprudential conference in Amsterdam jointly hosted by the Dutch and Swedish central banks.
	0830 ET	Q1 current account balance expected -$123.6 billion, Q4 -$112.4 billion
	1500 ET	Dallas Fed President Robert Kaplan (voter) discusses current economic conditions and monetary policy with the Commonwealth Club in San Francisco.

U.S. STOCK CALENDAR06/19/2017

Company	Ticker	Time	Event Description	Period	Estimate
United Technologies Corp	UTX US	6/19/2017		02:30	SM
Monster Beverage Corp	MNST US	6/19/2017		17:20	SM

MORNING CALL 7/6

MORNING CALL

Wednesday, July 6th, 2016View Older Reports

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OVERNIGHT MARKETS AND NEWS

Sep E-mini S&Ps (ESU16 -0.61%) are down -0.67% and European stocks are down sharply by -2.09% on concern the fallout from Brexit will slow global economic growth. Late Tuesday, New York Fed President Dudley warned that the risks from Brexit could escalate if it triggers turmoil beyond the UK. A decline in European bank stocks is leading the overall market lower after BlackRock downgraded European stocks to underweight, with a negative view on the Eurozone banking sector due to fallout from Brexit. European stocks were also undercut after German May factory orders came in weaker than expected. On the positive side, mining stocks and gold producers are higher as the price of gold (GCQ16 +1.22%) rose to a 2-1/3 year high. GBP/USD is down -0.27% to a fresh 31-year low, while global government bond yields fell further into uncharted territory. The German 10-year bund yield slid to a record low of -0.205%, the UK 10-year gilt yield fell to a record low 0.729% and the U.S. 10-year T-note yield dropped to a record low 1.318%. Asian stocks settled mostly lower: Japan -1.85%, Hong Kong -1.23%, China +0.36%, Taiwan -1.61%, Australia -0.58%, South Korea -2.05%, Singapore and India closed for holiday. China's Shanghai Composite rallied to a 2-1/2 month high on speculation the government will boost measures to spur economic growth in the wake of the fallout from Brexit. Japan's Nikkei Stock Index fell to a 1-week low as exporter stocks declined after USD/JPY slid to a 1-week low, which reduces the earnings prospects of exporters.

The dollar index (DXY00 +0.04%) is down -0.05%. EUR/USD (^EURUSD) is down -0.05%. USD/JPY (^USDJPY) is down -1.39% at a 1-week low.

Sep T-note prices (ZNU16 +0.18%) are up +7.5 ticks at a 3-1/2 year nearest-futures high.

BOE Governor Carney warned that the risks from Brexit have started to crystalize and "there is the prospect of a material slowing of the economy and that the number of vulnerable households could increase due to a tougher economic outlook."

German May factory orders were unch m/m and -0.2% y/y, weaker than expectations of +1.0% m/m and +0.9% y/y.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly MBA mortgage applications (previous -2.6% with purchase sub-index -3.0% and refi sub-index -2.4%), (2) May trade balance (expected -$40.0 billion, Apr -$37.4 billion), (3) Fed Governor Daniel Tarullo speaks at an event in Washington D.C. on financial regulation and monetary policy, (4) revised Jun Markit U.S. services PMI (expected unchanged at 51.3, prelim-Jun unch at 51.3), (5) Jun ISM non-manufacturing PMI (expected +0.4 to 53.3, May -2.8 to 52.9), and (6) minutes of the June 14-15 FOMC meeting.

Russell 1000 companies reporting earnings today: Walgreens Boots Alliance (consensus $1.14), MSC Industrial Direct (1.00).

U.S. IPO's scheduled to price today: none.

Equity conferences this week include: none.

OVERNIGHT U.S. STOCK MOVERS

Netflix (NFLX +1.28%) fell over 2% in pre-market trading after it was downgraded to 'Underperform' from 'Hold' at Jeffries on subscriber growth concerns,

Royal Gold (RGLD +0.44%) was upgraded to 'Buy' from 'Neutral' at Dundee with a 12-month price target of $85.

Teledyne Technologies (TDY -1.64%) was downgraded to 'Neutral' from 'Buy' at CL King with a 12-month target price of $107.

Dow Chemical (DOW -1.57%) was downgraded to 'Underperform' from 'Outperform' at CLSA.

U.S. Steel (X -3.45%) was upgraded to 'Hold' from 'Sell' at Deutsche Bank.

Harley Davidson (HOG -10.84%) was downgraded to 'Neutral' from 'Buy' at UBS.

Newmont Mining (NEM +0.10%) and Coeur Mining (CDE +1.24%) both are up over 2% in pre-market trading as the price of gold climbed to a 2-1/3 year high.

Biogen (BIIB -1.24%) rose over 1% in after-hours trading on positive carryover from Tuesday's decision by the European Commission to approve Biogen and Abbvie's Zinbryta for treating relapsing forms of multiple sclerosis.

Ventas (VTR +0.83%) said it will acquire a group of medical and life-science properties from Blackstone Group LP for $1.5 billion.

Comcast (CMCSA -0.41%) dropped over 1% in after-hours trading on negative carryover from Tuesday's session when the company said it will incorporate Netflix's web-streaming services from Comcast cable boxes.

Tesla (TSLA -1.16%) slid over 1% in after-hours trading after the Detroit Free Press reported a Tesla Model X was in Autopilot mode when it crashed and rolled over on the Pennsylvania Turnpike on July 1.

Medivation (MDVN +2.73%) gained over 1% in after-hours trading after Reuters reported that it is in talks with Sanofi and other companies after it recently rejected a raised bid from Sanofi.

MARKET COMMENTS

September E-mini S&Ps (ESU16 -0.61%) this morning are down -14.00 points (-0.67%). Tuesday's closes: S&P 500 -0.68%, Dow Jones -0.61%, Nasdaq -0.60%. The S&P 500 on Tuesday closed lower on concern about Brexit fallout after Standard Life Investments suspended trading in its 2.9 billion pound ($3.9 billion) fund after seeing a surge in redemption requests. Stocks were also undercut by weakness in energy producers after crude oil prices plunged -4.9%.

Sep 10-year T-note prices (ZNU16 +0.18%) this morning are up +7.5 ticks at a 3-1/2 year nearest-futures high. Tuesday's closes: TYU6 +26.00. FVU6 +11.00. Sep T-notes on Tuesday rose to a 1-week high and closed higher, while the 10-year T-note yield fell to an all-time low of 1.354%. T-note prices were boosted by increased safe-haven demand with the sell-off in stocks and by carryover support from a rally in UK gilts and German bunds to all-time highs. T-note also received a boost from the slightly weaker-than-expected U.S. May factory orders of -1.0% (versus expectations of -0.9%).

The dollar index (DXY00 +0.04%) this morning is down -0.052 (-0.05%). EUR/USD (^EURUSD) is down -0.0006 (-0.05%). USD/JPY (^USDJPY) is down -1.41 (-1.39%) at a 1-week low. Tuesday's closes: Dollar Index +0.517 (+0.54%), EUR/USD -0.0078 (-0.70%), USD/JPY -0.82 (-0.80%). The dollar index on Tuesday recovered from a 1-week low and closed higher on the decline in GBP/USD to a 31-year low and on weakness in EUR/USD on concern over contagion of the Brexit crisis to the rest of Europe. The dollar was undercut by safe-haven demand for the yen as USD/JPY fell to a 1-week low.

Aug WTI crude oil (CLQ16 -1.33%) this morning is down -59 cents (-1.27%) at a 1-week low. Aug gasoline (RBQ16 -3.12%) is down -0.0360 (-2.52%) at a 2-3/4 month low. Tuesday's closes: CLQ6 -2.39 (-4.88%), RBQ6 -0.0848 (-5.60%). Aug crude and gasoline on Tuesday closed sharply lower with Aug gasoline at a 2-1/2 month low. Crude oil prices were undercut by the stronger dollar and by news that OPEC June oil production rose +240,000 bpd to a 5-month high of 32.88 million bpd.

GLOBAL EVENT CALENDAR07/06/2016

		Wednesday, July 6, 2016
US	0700 ET	Weekly MBA mortgage applications, previous -2.6% with purchase sub-index -3.0% and refi sub-index -2.4%.
	0830 ET	May trade balance expected -$40.0 billion, Apr -$37.4 billion.
	0900 ET	Fed Governor Daniel Tarullo speaks at an event in Washington D.C. on financial regulation and monetary policy.
	0945 ET	Revised Jun Markit U.S. services PMI expected unchanged at 51.3, prelim-Jun unch at 51.3. Revised Jun Markit composite PMI, prelim-June +0.3 to 51.2.
	1000 ET	Jun ISM non-manufacturing PMI expected +0.4 to 53.3, May -2.8 to 52.9.
	1400 ET	Minutes of the Jun 14-15 FOMC meeting.
		Thursday, July 7, 2016
US	0730 ET	Jun Challenger job cuts, May -26.5% y/y.
	0815 ET	Jun ADP employment change expected +160,000, May +173,000.
	0830 ET	Weekly initial unemployment claims expected unch at 268,000, previous +10,000 to 268,000. Weekly continuing claims expected-10,000 to 2.110 million, previous 20,000 to 2.120 million.
	1100 ET	EIA Weekly Petroleum Status Report.
	1100 ET	Treasury announces amount of 3-year T-notes (previous $24 billion), 10-year T-notes (previous $20 billion), and 30-year T-bonds (previous $12 billion) to be auctioned Jul 11-13.
JPN	0100 ET	Japan May leading index CI expected unch at 100.00. May coincident index expected -1.7 to 110.3, Apr 112.0.
	2000 ET	Japan May labor cash earnings expected +0.5% y/y, Apr unch y/y. May real cash earnings, Apr +0.4% y/y.
GER	0200 ET	German May industrial production expected +0.1% m/m and +1.5% y/y, Apr +0.8% m/m and +1.2% y/y.
UK	0330 ET	UK Jun Halifax house prices expected +0.3% m/m and +7.8% 3-mo/y/y, May +0.6% m/m and +9.2% 3-mo/y/y.
	0430 ET	UK May industrial production expected -1.0% m/m and +0.5% y/y, Apr +2.0% m/m and +1.6% y/y.
	0430 ET	UK May manufacturing production expected -1.2% m/m and +0.4% y/y, Apr +2.3% m/m and +0.8% y/y.

U.S. STOCK CALENDAR07/06/2016

Company	Ticker	Time	Event Description	Period	Estimate
MSC Industrial Direct Co Inc	MSM	Bef-mkt	Q3 2016 Earnings Release	Q3 2016	1.003
Walgreens Boots Alliance Inc	WBA	7:00	Q3 2016 Earnings Release	Q3 2016	1.138
Walgreens Boots Alliance Inc	WBA	8:30	Q3 2016 Earnings Call	Q3 2016
MSC Industrial Direct Co Inc	MSM	8:30	Q3 2016 Earnings Call	Q3 2016
Medivation Inc	MDVN	16:30	Business Update Call
Costco Wholesale Corp	COST	21:00	June 2016 Sales and Revenue Release	2016

MORNING CALL 6/8

MORNING CALL

Wednesday, June 8th, 2016View Older Reports

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OVERNIGHT MARKETS AND NEWS

Jun E-mini S&Ps (ESM16 +0.18%) are up +0.15% as stronger-than-expected Chinese May imports signals stabilization in China's economy, which may benefit global growth. Also, a rally in energy producing stocks has lifted the overall market as July WTI crude oil (CLN16 +1.23%) is up +1.33% at a 10-1/2 month high. A slide in the dollar index to a 1-month low has boosted most commodity prices with Aug COMEX gold (GCQ16 +0.74%) up +0.74% at a 2-week high. Gains were limited after the World Bank cut its 2016 U.S. and global GDP estimates. European stocks are down -0.49% as drugmakers led the overall market lower with Roche Holding AG and Novartis AG both down at least 1%. Asian stocks settled mixed: Japan +0.93%, Hong Kong -0.14%, China -0.30%, Taiwan +0.41%, Australia -0.02%, Singapore +0.50%, South Korea +0.88%, India +0.04%.

The dollar index (DXY00 -0.18%) is down -0.14% at a 1-month low. EUR/USD (^EURUSD) is up +0.18%. USD/JPY (^USDJPY) is down -0.29%.

Sep T-note prices (ZNU16 -0.04%) are down -1.5 ticks.

The World Bank cut its 2016 global GDP forecast to 2.4% from a January estimate of 2.9%, saying that downside risks have become more pronounced since the start of the year. The World Bank also cut its 2016 U.S. GDP estimate to 1.9% from a Jan estimate of 2.7%.

The China May trade balance widened to a surplus of +$49.98 billion, smaller than expectations of +$55.7 billion. May exports fell -4.1% y/y, weaker than expectations of -4.0% y/y. May imports fell -0.4% y/y, stronger than expectations of -6.8% y/y and the smallest decline in 19 months.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly MBA mortgage applications (previous -4.1% with purchase sub-index -4.7% and refi sub-index -3.9%), (2) Apr JOLTS job openings (expected -82,000 to 5.675 million, Mar +149,000 to 5.757 million), (3) Treasury auctions $20 billion of 10-year T-notes, and (4) EIA Weekly Petroleum Status Report.

There are 2 of the Russell 1000 companies that report earnings today: lululemon athletica (consensus $0.31), Brown-Forman (0.72).

U.S. IPO's scheduled to price today: none.

Equity conferences during the remainder of this week include: American Society of Clinical Oncology Annual Meeting on Mon-Thu, NAREIT REITWeek Investor Forum on Tue-Wed, Stephens Spring Investment Conference on Tue-Wed, Goldman Sachs Global Health Care Conference on Tue-Thu, Jefferies Global Health Care Conference on Tue-Thu, Baird Global Consumer, Technology and Services Conference on Tue-Thu, BioTechnology Industry Organization International Convention on Wed, Deutsche Bank Global Industrials and Materials Summit on Wed-Thu, Sandler O'Neill Global Exchange and Brokerage Conference on Wed-Thu, Gabelli & Company Movie & Entertainment Conference on Thu, Susquehanna Financial Group Energy and Industrials Conference on Thu.

OVERNIGHT U.S. STOCK MOVERS

Fiat Chrysler Automobiles NV (FCAU +3.85%) rose nearly 3% in pre-market trading after it was said to habe started talks on a partnership with Uber Technologies.

Lending Club (LC -7.38%) climbed over 3% in pre-market trading after a report that its former CEO and chairman has spoken to buyout firms and banks about a possible takeover of the company.

Lululemon (LULU -0.89%) reported Q1 EPS of 30 cents, below consensus of 31 cents, and said it expectd Q2 EPS of 36 cents-38 cents, below consensus of 39 cents.

Dave & Buster's Entertainment (PLAY +0.94%) rallied over 3% in pre-market trading after it reported Q1 adjusted EPS of 72 cents, higher than consensus of 59 cents, and then boosted its full-year revenue forecast to $983 million-$995 million from a March 29 estimate of $967 million-$987 million.

Verint Systems (VRNT +2.55%) slid over 1% in after-hours trading after it reported Q1 adjusted EPS of 46 cents, above consensus of 40 cents, but reported Q1 adjusted revenue of $249 million, below consensus of $250.7 million

Ardmore Shipping (ASC -0.61%) dropped over 8% in after-hours trading after it proposed a 7.5 million share public offering of common stock.

Lending Club (LC -7.38%) gained over 2% in after-hours trading after it was raised to 'Market Perform' at KBW.

VeriFone Systems (PAY +1.33%) sank 30% in after-hours trading after it reported Q2 adjusted EPS of 47 cents, weaker than consensus of 52 cents, and then cut its fiscal 2016 adjusted EPS estimate to $1.85 from a March 10 view of $2.21-$2.24.

Duluth Holdings (DLTH -1.95%) dropped over 3% in pre-market trading after it reported Q1 sales of $68.6 million, below consensus of $69.7 million.

HealthEquity (HQY +2.26%) climbed over 4% in after-hours trading after it reported Q1 adjusted EPS of 15 cents, better than consensus of 13 cents, and then raised guidance on full-year adjusted EPS to 47 cents-49 cents from a March 22 view of 45 cents-47 cents.

Oxford Industries (OXM -0.47%) slipped over 7% in after-hours trading after it reported Q1 adjusted EPS continuing operations of $1.26, below consensus of $1.33, and then lowered its fiscal 2017 adjusted EPS view to $3.60-$3.80 from a March 23 estimate of $3.75-$3.95.

Flexion Therapeutics (FLXN -3.83%) tumbled over 11% in after-hours trading after it announced a $60 million offering of common stock.

MARKET COMMENTS

June E-mini S&Ps (ESM16 +0.18%) this morning are up +3.25 points (+0.15%). Tuesday's closes: S&P 500 +0.13%, Dow Jones +0.10%, Nasdaq-0.23%. The S&P 500 on Tuesday rallied to a 10-1/2 month high and closed higher on carryover support from a rally in European stocks on positive European economic data after Eurozone Q1 GDP was revised upward and after German Apr industrial production rose more than expected. Stocks were also boosted by gains in energy-producers after crude oil prices climbed to an 8-month high.

September 10-year T-note prices (ZNU16 -0.04%) this morning are down -1.5 ticks. Tuesday's closes: TYU6 +2.50, FVU6 +2.00. Sep T-notes on Tuesday closed higher on positive carryover from a rally in German bunds as the 10-year bund yield fell to a record low 0.045%. T-notes also continued to receive support from the reduced prospects for a near-term Fed rate hike after Fed Chair Yellen on Monday refused to set any time line for when the Fed may raise rates again.

The dollar index (DXY00 -0.18%) this morning is down -0.134 (-0.14%) at a 1-month low. EUR/USD (^EURUSD) is up +0.0020 (+0.18%). USD/JPY (^USDJPY) is down -0.31 (-0.29%). Tuesday's closes: Dollar Index -0.074 (-0.08%), EUR/USD +0.0003 (+0.03%), USD/JPY -0.19 (-0.18%). The dollar index on Tuesday closed lower on continued bearishness after Fed Chair Yellen on Monday expressed concern about last Friday's payroll report and backed off her previous comment that a rate hike would be appropriate in "coming months." The dollar index was also undercut by strength in EUR/USD after Eurozone Q1 GDP was revised upward and after German Apr industrial production rose more than expected.

July WTI crude oil (CLN16 +1.23%) this morning is up +67 cents (+1.33%) at a 10-1/2 month high. July gasoline (RBN16 +1.18%) is up +0.0214 (+1.35%). Tuesday's closes: CLN6 +0.67 (+1.35%), RBN6 -0.0016 (-0.10%). July crude oil and gasoline on Tuesday settled mixed with July crude at an 8-month high. Crude oil prices were boosted by a weaker dollar and by continued support from Monday's news that Nigerian oil production has been slashed by 700,000-800,000 bpd by militant attacks on pipelines and installations. Crude oil prices were also boosted by expectations that Wednesday's weekly EIA report would show that U.S. crude oil inventories fell by -3.0 million bbls.

GLOBAL EVENT CALENDAR06/08/2016

		Wednesday, June 8
US	0700 ET	Weekly MBA mortgage applications, previous -4.1% with purchase sub-index -4.7% and refi sub-index -3.9%.
	1000 ET	Apr JOLTS job openings expected -82,000 to 5.675 million, Mar +149,000 to 5.757 million.
	1030 ET	EIA Weekly Petroleum Status Report.
	1300 ET	Treasury auctions $20 billion of 10-year T-notes.
JPN	0030 ET	Japan May bankruptcies, Apr -7.08% y/y.
	0100 ET	Japan May eco watchers survey current expected -0.1 to 43.4, Apr 43.5. May eco watchers survey outlook expected +0.4 to 45.9, Apr 45.5.
	1950 ET	Japan Apr machine orders expected -3.0% m/m and -1.8% y/y, Mar +5.5% m/m and +3.2% y/y.
UK	0430 ET	UK Apr industrial production expected unch m/m and -0.4% y/y, Mar +0.3% m/m and -0.2% y/y.
	0430 ET	UK Apr manufacturing production expected -0.1% m/m and -1.5% y/y, Mar +0.1% m/m and -1.9% y/y.
	1901 ET	UK May RICS house price balance expected 35%, Apr 41%.
CHI	2130 ET	China May CPI expected +2.2% y/y, Apr +2.3% y/y. May PPI expected -3.2% y/y, Apr -3.4% y/y.
		Thursday, June 9
US	0830 ET	Weekly initial unemployment claims expected +3,000 to 270,000, previous -1,000 to 267,000. Weekly continuing claims expected-1,000 to 2.171 million, previous +12,000 to 2.172 million.
	0830 ET	USDA weekly Export Sales.
	1000 ET	Apr wholesale inventories expected +0.1% m/m, Mar +0.1% m/m. Apr wholesale trade sales expected +1.1% m/m, Mar +0.7% m/m.
	1300 ET	Treasury auctions $12 billion of 30-year T-bonds.
GER	0200 ET	German Apr trade balance expected +22.8 billion euros, Mar +26.2 billion euros. Apr exports expected -0.8% m/m, Mar +1.9% m/m. Apr imports expected +1.3% m/m, Mar -2.3% m/m.
	0200 ET	German Apr current account balance expected +20.5 billion euros, Mar +30.4 billion euros.
	0200 ET	German Q1 labor costs, Q4 +0.5% q/q and +2.1% y/y.
EUR	0300 ET	ECB President Mario Draghi speaks at an economic forum in Brussels.
JPN	0200 ET	Japan May machine tool orders, Apr -26.3% y/y.
	1950 ET	Japan May PPI expected +0.1% m/m and -4.2% y/y, Apr -0.3% m/m and -4.2% y/y.
CHI	n/a	China May new yuan loans expected 750 billion yuan, Apr 555.6 billion yuan.

U.S. STOCK CALENDAR06/08/2016

Company	Ticker	Time	Event Description	Period	Estimate
Teekay Corp	TK US	6/8/2016	Annual General Meeting	Y 2016
lululemon athletica Inc	LULU US	6/8/2016	Q1 2017 Earnings Release	Q1 2017	0.306
Brown-Forman Corp	BF/B US	6/8/2016	Q4 2016 Earnings Release	Q4 2016	0.719
American Airlines Group Inc	AAL US	6/8/2016	Annual General Meeting
Biogen Inc	BIIB US	6/8/2016	Annual General Meeting	Y 2016
Devon Energy Corp	DVN US	6/8/2016	Annual General Meeting	Y 2016
lululemon athletica Inc	LULU US	6/8/2016	Q1 2017 Earnings Call	Q1 2017
Skechers U.S.A. Inc	SKX US	6/8/2016	Analyst and Investor Meeting	Y 2016
Brown-Forman Corp	BF/B US	6/8/2016	Q4 2016 Earnings Call	Q4 2016
Freeport-McMoRan Inc	FCX US	6/8/2016	Annual General Meeting
Pfizer Inc	PFE US	6/8/2016	Analyst and Investor Call
United Continental Holdings Inc	UAL US	6/8/2016	Annual General Meeting
AMERCO	UHAL US	6/8/2016	Special Meeting
DSW Inc	DSW US	6/8/2016	Annual General Meeting
Allegion PLC	ALLE US	6/8/2016	Annual General Meeting	Y 2016
Target Corp	TGT US	6/8/2016	Annual General Meeting
Alphabet Inc	GOOGL US	6/8/2016	Annual General Meeting	Y 2016
Molson Coors Brewing Co	TAP US	6/8/2016	Investor Meeting	Y 2016
ServiceNow Inc	NOW US	6/8/2016	Annual General Meeting
Caterpillar Inc	CAT US	6/8/2016	Annual General Meeting
Public Service Enterprise Group Inc	PEG US	6/8/2016	Investor Meeting	Y 2016
Southwest Airlines Co	LUV US	6/8/2016	May 2016 Sales and Revenue Release - Traffic Results	2016
Clean Harbors Inc	CLH US	6/8/2016	Annual General Meeting	Y 2016
Ingram Micro Inc	IM US	6/8/2016	Annual General Meeting	Y 2016
AMC Networks Inc	AMCX US	6/8/2016	Annual General Meeting
Spirit Airlines Inc	SAVE US	6/8/2016	May 2016 Sales and Revenue Release - Traffic Results	2016
FleetCor Technologies Inc	FLT US	6/8/2016	Annual General Meeting
United Continental Holdings Inc	UAL US	6/8/2016	May 2016 Sales and Revenue Release - Traffic Results	2016
KAR Auction Services Inc	KAR US	6/8/2016	Annual General Meeting
CVR Energy Inc	CVI US	6/8/2016	Annual General Meeting
Groupon Inc	GRPN US	6/8/2016	Annual General Meeting
Diamondback Energy Inc	FANG US	6/8/2016	Annual General Meeting
GoDaddy Inc	GDDY US	6/8/2016	Annual General Meeting

MORNING CALL 5/31

MORNING CALL

Tuesday, May 31st, 2016View Older Reports

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OVERNIGHT MARKETS AND NEWS

Jun E-mini S&Ps (ESM16 +0.11%)are up +0.04% at a 1-1/4 month high on optimism that a strengthening U.S. economy could handle another 25 bp rate hike from the Fed. Fed Chair Yellen said Friday afternoon that an improving economy would probably warrant another rate increase "in the coming months." Strength in crude oil prices is lifting energy producers, while European stocks are down -0.33% as automakers declined after Volkswagen dropped over 3% when it reported an 86% plunge in quarterly profit due to its emissions-cheating scandal. European stocks were also undercut after an unexpected decline in German Apr retail sales. Asian stocks settled mostly higher: Japan +0.98%, Hong Kong +0.90%, China +3.34%, Taiwan unch, Australia -0.54%, Singapore -0.20%, South Korea +0.79%, India -0.22%. China's Shanghai Composite climbed to a 3-week high after Goldman Sachs said that it was likely that the stocks in the Shanghai Composite would be included in MSCI Inc.'s global benchmark indexes. Japan's Nikkei Stock Index rose to a 1-month high on optimism the Japanese government will delay an increase in the sales tax after senior officials from Prime Minister Abe's ruling party and its coalition partner said that Prime Minister Abe wants to put off a planned national sale tax increase for 2-1/2 years.

The dollar index (DXY00 -0.01%) is up +0.09%. EUR/USD (^EURUSD) is up +0.13%. USD/JPY (^USDJPY) is down -0.04%.

Jun T-note prices (ZNM16 -0.24%) are down -12.5 ticks.

German Apr retail sales unexpectedly fell -0.9% m/m, weaker than expectations of +0.9% m/m.

The Eurozone May CPI estimate fell -0.1% y/y, right on expectations. The May core CPI rose +0.8% y/y, right on expectations.

The Eurozone Apr unemployment rate was unch at 10.2%, right on expectations.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Apr personal spending (expected +0.7%, Mar +0.1%) and Apr personal income (expected +0.4%, Mar +0.4%), (2) Apr PCE deflator expected (+0.3% m/m and +1.1% y/y, Mar +0.1% m/m and +0.8% y/y) and Apr core PCE deflator (expected +0.2% m/m and +1.6% y/y, Mar +0.2% m/m and +1.6% y/y), (3) S&P/CaseShiller composite-20 home price index (expected +0.7% m/m and +5.06% y/y, Feb +0.66% m/m and +5.38% y/y), (4) May Chicago PMI (expected +0.1 to 50.5, Apr -3.2 to 50.4), (5) May Conference Board U.S. consumer confidence (expected +2.1 to 96.3, Apr-1.9 to 94.2), (6) May Dallas Fed manufacturing activity (expected +5.9 to -8.0, Apr -13.9), (7) USDA weekly grain export inspections, and (8) USDA Weekly Crop Progress.

There are 3 of the Russell 1000 companies that report earnings today: Golar LNG (consensus -$0.42), Medtronic (1.26), Workday (-0.02).

U.S. IPO's scheduled to price today: Cancer Preventation Pharmaceuticals (CPP).

Equity conferences this week include: Deutsche Bank Global Financial Services Investor Conference on Tue-Wed, BMO Capital Markets Energy & Power Conference on Wed, D. A. Davidson & Co Technology Forum on Wed, Stifel Dental & Veterinary Conference on Wed, Bank of America Merrill Lynch Global Technology Conference on Wed-Thu, Cowen and Company Technology, Media & Telecom Conference on Wed-Thu, RBC Capital Markets Consumer & Retail Conference on Wed-Thu, Bernstein Strategic Decisions Conference on Wed-Fri, Credit Suisse Engineering & Construction Conference on Thu, Keefe, Bruyette & Woods Asset Management Conference on Thu, American Society of Clinical Oncology (ASCO) Meeting on Fri.

OVERNIGHT U.S. STOCK MOVERS

Celator Pharmaceuticals (CPXX +0.17%) soared over 70% in pre-market trading after it agreed to a $1.5 billion takeover offer from Jazz Pharmaceuticals.

Lockheed Martin (LMT -0.60%) was downgraded to 'Hold' from 'Buy' at Berenberg.

Marathon Oil (MRO -2.05%) was upgraded to 'Overweight' from 'Neutral' at Piper Jaffray.

Deere & Co. (DE +0.29%) was upgraded to 'Buy' from 'Neutral' at UBS with a 12-month price target of $94.

Micron (MU +3.01%) was upgraded to 'Outperform' from 'Neutral' at Robert Baird.

Dril-Quip (DRQ +1.12%) was upgraded to 'Buy' from 'Accumulate' at KLR Group with a price target of $70.

Signature Bank/New York (SBNY +0.85%) was downgraded to 'Neutral' from 'Overweight' at Piper Jaffray with a 12-month price target of $146.

TransDigm Group (TDG +0.47%) jumped 4% in after-hours trading after it was announced that it will replace Baxalta in the S&P 500 after the close of trading Thursday, June 2.

Brocade (BRCD +0.23%) rose 3% in after-hours trading after it was announced that it will replace MDC Holdings in the MidCap 400 after the close of trading on Tuesday, May 31.

The FDA approved Zinbryta, made by Biogen (BIIB +0.28%) and Abbvie (ABBV +1.31%) , for the treatment of adults with relapsing forms of multiple sclerosis.

Reuters reports that Williams Cos (WMB +3.22%) has informed Energy Transfer Equity ETE that it is open to considering a new offer that would replace the $6 billion portion of the deal with shares in the acquisition vehicle that Energy Transfer will create.

Osiris Therapeutics (OSIR +1.43%) slumped 10% in after-hours trading after it said a criminal probe against the company was started by the U.S. Attorney's Office for the Southern District of New York.

MARKET COMMENTS

June E-mini S&Ps (ESM16 +0.11%) this morning up +0.75 of a point (+0.04%) at a 1-1/4 month high. Friday's closes: S&P 500 +0.43%, Dow Jones +0.25%, Nasdaq +0.55%. The S&P 500 Friday rallied to a 1-1/4 month high and closed higher on the upward revision to U.S. Q1 GDP to +0.8% from +0.5% and on optimism that the U.S. economy is strong enough to handle further Fed rate hikes. Stocks were undercut by the -1.1 point decline in final-May University of Michigan U.S. consumer sentiment index to 94.7, weaker than expectations of -0.4 to 95.4.

June 10-year T-note prices (ZNM16 -0.24%) this morning are down -12.5 ticks. Friday's closes: TYM6 -3.50, FVM6 -3.00. Jun T-notes on Friday closed lower on the upward revision to U.S. Q1 GDP to +0.8% from +0.5%, hawkish comments from Fed Chair Yellen who said a Fed rate hike in coming months may be "appropriate," and reduced safe-haven demand with the rally in stocks.

The dollar index (DXY00 -0.01%) this morning is up +0.085 (+0.09%). EUR/USD (^EURUSD) is up +0.0014 (+0.13%). USD/JPY (^USDJPY) is down-0.05 (-0.04%). Friday's closes: Dollar Index +0.353 (+0.37%), EUR/USD -0.0079 (-0.71%), USD/JPY +0.55 (+0.50%). The dollar index on Friday rallied to a 2-month high and closed higher on the upward revision in U.S. Q1 GDP to +0.8% from +0.5% and hawkish comments from Fed Chair Yellen who said a Fed rate hike in coming months may be "appropriate." The dollar was also boosted by weakness in EUR/USD which tumbled to a 2-1/2 month low on divergent central bank policies with the Fed expected to further tighten monetary policy while the ECB maintains or even expands its monetary policy.

July WTI crude oil (CLN16 +0.47%) this morning is up +14 cents (+0.28%). July gasoline (RBN16 -0.90%) is down -0.0192 (-1.17%). Friday's closes: CLN6 -0.15 (-0.30%), RBN6 +0.0111 (+0.68%). July crude oil and gasoline prices on Friday settled mixed as July gasoline rebounded from a 1-week low. Crude oil prices were undercut by the rally in the dollar index to a 2-month high and by the restart of oil-sands facilities in Alberta as wildfire risks abated. Gasoline prices were boosted by signs of stronger demand as the AAA estimates that 38 million Americans will travel 50 miles or more this Memorial holiday weekend, up +2.2% y/y and the second-highest ever.

GLOBAL EVENT CALENDAR05/31/2016

US	0830 ET	Apr personal spending expected +0.7%, Mar +0.1%. Apr personal income expected +0.4%, Mar +0.4%.
	0830 ET	Apr PCE deflator expected +0.3% m/m and +1.1% y/y, Mar +0.1% m/m and +0.8% y/y. Apr core PCE deflator expected +0.2% m/m and +1.6% y/y, Mar +0.2% m/m and +1.6% y/y.
	0900 ET	Mar S&P/CaseShiller composite-20 home price index expected +0.7% m/m and +5.06% y/y, Feb +0.66% m/m and +5.38% y/y.
	0945 ET	May Chicago PMI expected +0.1 to 50.5, Apr -3.2 to 50.4.
	1000 ET	May U.S. consumer confidence (Conference Board) expected +2.1 to 96.3, Apr -1.9 to 94.2.
	1030 ET	May Dallas Fed manufacturing activity expected +5.9 to -8.0, Apr -13.9.
	1100 ET	USDA weekly grain export inspections.
	1600 ET	USDA Weekly Crop Progress.
JPN	0000 ET	Japan Apr vehicle production, Mar +1.2% y/y.
	0100 ET	Japan Apr housing starts expected +4.0% to 950,000 annualized, Mar +8.4% y/y to 993,000 annualized.
	0100 ET	Japan Apr construction orders, Mar +19.8% y/y.
	1950 ET	Japan Q1 capital spending expected +1.9% y/y, Q4 +8.5% y/y. Q1 capital spending ex software expected +4.1% y/y, Q4 +8.9% y/y.
	2200 ET	Revised Japan May Nikkei manufacturing PMI.
GER	0200 ET	German Apr retail sales expected +1.0% m/m and +1.9% y/y, Mar -1.4% m/m and +0.7% y/y.
	0355 ET	German May unemployment change expected -5,000, Apr -16,000. May unemployment rate, Apr 6.2%.
EUR	0400 ET	Eurozone Apr M3 money supply expected +5.0% y/y, Mar +5.0% y/y.
	0500 ET	Eurozone Apr unemployment rate expected unch at 10.2%, Mar -0.2 to 10.2%.
	0500 ET	Eurozone May CPI estimate expected -0.1% y/y, Apr -0.2% y/y. May core CPI expected +0.8% y/y, Apr +0.7% y/y.
UK	1901 ET	UK May BRC shop price index, Apr -1.7% y/y.
CHI	2100 ET	China May manufacturing PMI expected -0.1 to 50.0, Apr -0.1 to 50.1. May non-manufacturing PMI, Apr -0.3 to 53.5.
	2145 ET	China May Caixin manufacturing PMI expected -0.2 to 49.2, Apr -0.3 to 49.4.

U.S. STOCK CALENDAR05/31/2016

Company	Ticker	Time	Event Description	Period	Estimate
Golar LNG Ltd	GLNG US	Bef-mkt	Q1 2016 Earnings Release	Q1 2016	-0.424
Medtronic PLC	MDT US	6:45	Q4 2016 Earnings Release	Q4 2016	1.264
Medtronic PLC	MDT US	8:00	Q4 2016 Earnings Call	Q4 2016
Golar LNG Ltd	GLNG US	10:00	Q1 2016 Earnings Call	Q1 2016
Workday Inc	WDAY US	17:00	Q1 2017 Earnings Call	Q1 2017
Workday Inc	WDAY US	Aft-mkt	Q1 2017 Earnings Release	Q1 2017	-0.021
Henry Schein Inc	HSIC US		Annual General Meeting
Tesla Motors Inc	TSLA US		Annual General Meeting
Empire State Realty Trust Inc	ESRT US		Annual General Meeting