MORNING CALL 9/19

MORNING CALL

Monday, September 19th, 2016View Older Reports

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OVERNIGHT MARKETS AND NEWS

Dec E-mini S&Ps (ESZ16 +0.42%) are up +0.42% and European stocks are up +1.13% on speculation that recent mixed economic data will keep the Fed from raising interest rates at this week's FOMC meeting. Crude oil prices (CLV16 +1.42%) are up +1.37%, which has given energy producing stocks a lift, after OPEC Secretary General Mohammed Barkindo said the cartel may call an extraordinary meeting if ministers reach consensus at an informal gathering in Algiers next week. Asian stocks settled mostly higher: Japan closed for holiday, Hong Kong +0.92%, China +0.77%, Taiwan +2.81%, Australia -0.04%, Singapore +0.87%, South Korea +0.86%, India +0.12%. Chinese stocks closed higher, led by a rally in property stocks, after China Aug new home prices rose +1.2% m/m in the 70 cities tracked by the government, the biggest increase in 6-1/2 years.

The dollar index (DXY00 -0.22%) is down -0.24%. EUR/USD (^EURUSD) is up +0.05%. USD/JPY (^USDJPY) is down -0.43%.

Dec T-note prices (ZNZ16 +0.08%) are up +3 ticks.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Sep NAHB housing market index (expected unchanged at 60, Aug +2 to 60), (2) USDA weekly grain export inspections, (3) USDA Weekly Crop Progress.

Russell 1000 companies that report earnings today: none.

U.S. IPO's scheduled to price today: AzurRx BioPharma (AZRX).

Equity conferences this week include: BMO Capital Markets Real Estate Conference on Mon, CLSA Investors Forum on Mon, BMO Capital Markets North American Real Estate Conference on Mon-Tue, Deutsche Bank Energy Summit on Tue, J.P. Morgan U.S. All Stars Conference on Tue, Scotiabank Fertilizer and Chemicals Conference on Tue, Finance Montreal FinTech Forum on Tue-Wed, Johnson Rice Energy Conference on Tue-Wed, Goldman Sachs Communicopia Conference on Tue-Thu, Finance Shared Services & GBS Exchange Conference on Wed.

OVERNIGHT U.S. STOCK MOVERS

GoPro (GPRO +5.65%) jumped nearly 6% in pre-market trading after it said it will unveil new products at today's anaylst meeting.

Mattel (MAT -0.22%) was upgraded to 'Buy' from 'Neutral' at Monness, Crespi, Hardt & Co. with a 12-month price target of $37.

U.S. Steel (X -0.93%) and AK Steel Holdings (AKS +1.23%) were both upgraded to 'Sector Weight' from 'Underweight' at Keybanc Capital Markets.

Enterprise Products Partners LP (EPD +0.19%) was upgraded to 'Outperform' from 'Neutral' at Credit Suisse witha target price of $34.

General Motors (GM -0.48%) climbed over 1% in pre-market trading after it was upgraded to 'Overweight' from 'Equalweight' at Morgan Stanley with a 12-month price target of $37.

PayPal Holdings (PYPL -0.32%) fell over 1% in pre-market trading after it was downgraded to 'Hold' from 'Buy' at Canaccord Genuity.

Buckeye Partners LP (BPL -0.28%) was upgraded to 'Buy' from 'Neutral' at Goldman Sachs with a 12-month price target of $78.

Targa Resources (TRGP +0.58%) was upgraded to 'Buy' from 'Neutral' at Goldman Sachs with a 12-month price target of $52.

Science Applications International (SAIC +0.47%) was awarded a U.S. Defense Logistics Agency contract worth as much as $700 million over the next 5 years for chemicals, packaged petroleum, oils and lubricants.

Enlink Midstream LLC (ENLC -0.06%) was downgraded to 'Sell' from 'Neutral' at Goldman Sachs.

North Sound increased its stake in Novatel Wireless (MIFI +3.82%) to 7.1% from 5.9%.

Sanofi (SNY -1.26%) sued Merck (MRK -0.16%) to block Merck's MK-1293 diabetes drug that Sanofi says infringes on 10 of its patents.

MARKET COMMENTS

Dec E-mini S&Ps (ESZ16 +0.42%) this morning are up +9.00 points (+0.42%). Friday's closes: S&P 500 -0.38%, Dow Jones -0.49%, Nasdaq -0.04%. The S&P 500 on Friday closed lower on continued concern about the recent surge in T-bond yields and concern about the economy after the Sep University of Michigan U.S. consumer sentiment report of unchanged at 89.8, weaker than expectations of +0.8 to 90.6 and the lowest since April. In addition, energy producer stocks were undercut by the -2% decline in crude oil to a 2-week low.

Dec 10-year T-notes (ZNZ16 +0.08%) this morning are up +3 ticks. Friday's closes: TYZ6 -1.50, FVZ6 -3.75. Dec T-notes on Friday closed slightly lower on the stronger-than-expected U.S. Aug core CPI report of +2.3% (versus expectations of +2.2%), which bolsters the case for the Fed to raise interest rates. T-notes were also undercut by increased inflation expectations after the 10-year T-note breakeven rate rose to a 1-week high. T-notes found support on the increased safe-haven demand with the sell-off in stocks.

The dollar index (DXY00 -0.22%) this morning is down -0.231 (-0.24%). EUR/USD (^EURUSD) is up +0.0006 (+0.05%). USD/JPY (^USDJPY) is down-0.44 (-0.43%). Friday's closes: Dollar index +0.820 (+0.86%), EUR/USD -0.0080 (-0.79%), USD/JPY +0.19 (+0.19%). The dollar index on Friday rose to a 2-week high and settled higher on a stronger case for a Fed rate hike after the larger-than-expected increase in U.S. Aug CPI. In addition, EUR/USD fell to a 1-week low on speculation the ECB may need to expand stimulus measures after Eurozone Q2 labor costs rose by only +1.0% y/y, the smallest increase since Q1 of 2014.

Oct crude oil (CLV16 +1.42%) this morning is up +59 cents (+1.37%) and Oct gasoline (RBV16 -0.76%) is down -0.0091 (-0.62%). Friday's closes: Closes: CLV6 -0.88 (-2.00%), RBV6 +0.0314 (+2.20%). Oct crude oil and gasoline on Friday settled mixed with Oct crude at a 5-week low and Oct gasoline at a 2-week high. Crude oil prices were undercut by a rally in the dollar index to a 2-week high and by signs the global oil glut may worsen after Libya lifted export restrictions on crude exports at several ports that may boost Libya's crude exports by +300,000 bpd and after Nigeria's Exxon Mobile said it was ready to resume 300,000 bpd of Qua Iboe crude, Nigeria's biggest export grade. Gasoline prices received a boost after news that Colonial Pipeline's pipeline in Alabama, the biggest fuel pipeline that delivers fuel from refineries from the Gulf Coast to the East Coast, will be shut down due to a leak until at least next week, which may cause gasoline shortages in the Eastern U.S.

GLOBAL EVENT CALENDAR09/19/2016

		Monday, Sep 19
US	1000 ET	Sep NAHB housing market index expected unchanged at 60, Aug +2 to 60.
	1100 ET	USDA weekly grain export inspections.
	1600 ET	USDA Weekly Crop Progress.
		Tuesday, Sep 20
US	0830 ET	Aug housing starts expected -1.7% to 1.190 million, Jul +2.1% to 1.211 million. Aug building permits expected +1.8% to 1.164 million, Jul-0.8% to 1.144 million.
	1030 ET	FOMC begins 2-day policy meeting.
GER	0200 ET	German Aug PPI expected unch m/m and -1.6% y/y, Jul +0.2% m/m and +2.0% y/y.
JPN	1950 ET	Japan Aug trade balance expected +195.5 billion yen, Jul +513.6 billion yen. Aug exports expected -4.5% y/y, Jul-14.0% y/y. Aug imports expected -16.5% y/y, Jul -24.7% y/y.

U.S. STOCK CALENDAR09/19/2016

Company	Ticker	Time	Event Description	Period	Estimate
Ultragenyx Pharmaceutical Inc	RARE US	11:00	KRN23 Study Results Call
Amgen Inc	AMGN US	11:30	Analyst Meeting
GoPro Inc	GPRO US	13:30	Analyst and Investor Meeting	Y 2016
Ascena Retail Group Inc	ASNA US	16:00	Q4 2016 Earnings Release	Q4 2016	0.163
Ascena Retail Group Inc	ASNA US	16:30	Q4 2016 Earnings Call	Q4 2016
RealNetworks Inc	RNWK US	16:30	Annual General Meeting

BARCHART MORNING CALL 5/4

BARCHART MORNING CALL

Monday, May 4th, 2015View Older Reports

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OVERNIGHT MARKETS AND NEWS

June E-mini S&Ps (ESM15 +0.27%) this morning are up +0.23% and European stocks are up +0.83% after a gauge of Eurozone Apr manufacturing activity was revised higher. Comcast is up nearly 3% in pre-market trading after it reported Q1 profit of 79 cents a share, excluding some items, better than consensus of 74 cents. Strength in global stocks undercut government bond prices as the yield on the 10-year German bund rose to a 1-3/4 month high of 0.425%. Asian stocks closed mostly higher: Japan closed for holiday, Hong Kong -0.03%, China +0.87%, Taiwan +0.25%, Australia +0.23%, Singapore -0.13%, South Korea +0.34%, India +1.77%. Chinese stocks received a boost on speculation the government will expand stimulus measures after a gauge of Chinese manufacturing activity for last month was unexpectedly revised lower to its steepest pace of contraction in a year.
Commodity prices are mixed. Jun crude oil (CLM15 +0.66%) is up +0.32% and Jun gasoline (RBM15 +0.55%) is up +0.46% at a 5-1/4 month high. Metals prices are mixed. Jun gold (GCM15 +0.52%) is up +0.61%. Jul copper (HGN15 -0.51%) is down -0.79%. Agriculture prices are mixed.
The dollar index (DXY00 +0.31%) is up +0.28%. EUR/USD (^EURUSD) is down -0.54%. USD/JPY (^USDJPY) is up +0.06%.

Jun T-note prices (ZNM15 -0.10%) are down -3.5 ticks at a 1-1/2 month low on carry-over weakness from a slide in German bund prices to a 1-3/4 month low.
The yield on Greece's 10-year bond moved up from a 1-3/4 month low of 9.88% to over 10.50% after people with knowledge of the matter said that Greece is still far from agreement with its international creditors. They said that gaps remain on issues from fiscal forecasts to labor and pension reforms, 3 days before the ECB's next decision on emergency aid to Greece. Greece is due to make a 200-million euros payment to the IMF this week.
The China Apr HSBC flash manufacturing PMI was revised lower by -0.3 to 48.9 from the previously reported 49.2, weaker than expectations of a +0.2 upward revision to 49.4 and the steepest pace of contraction in a year.
The Eurozone Apr Markit manufacturing PMI was revised upward by +0.1 to 52.0 from the previously reported 51.9.

U.S. STOCK PREVIEW

Key U.S. reports today include: (1) March factory orders (expected +2.0% after Feb's +0.2%), (2) the April New York ISM index (March was -13.1 to 50.0), and (3) a speech by Chicago Fed President Charles Evans about current economic conditions and monetary policy at the Columbus Economic Development Board Annual Meeting in Columbus, Indiana.
There are 16 of the S&P 500 companies that report earnings today with notable reports including: Comcast (consensus $0.74), Dun & Bradstreet (1.23), Tenet Healthcare (0.31), Tyson Foods (0.72), Sysco (0.41), Lowes (0.71).
U.S. IPO's scheduled to price or trade today include: none.
Equity conferences this week include: Barclays Chemical ROC Stars Conference on Tue, Internet & Television Expo on Tue-Wed, Wells Fargo Industrial and Construction Conference on Tue-Wed, Baird Growth Stock Conference on Tue-Thu, Power & Electricity World Asia 2015 on Wed, Sanford C. Bernstein & Co. Energy Conference on Wed, Deutsche Bank Health Care Conference on Wed-Thu, ICI General Membership Meeting on Wed-Thu, Citi Car of the Future Conference on Thu, Mitsubishi UFJ Securities Oil & Gas Conference on Thu, and RBC Capital Markets Mobile & Cloud Networking Investor Day on Thu.

OVERNIGHT U.S. STOCK MOVERS

Comcast (CMCSA +1.13%) is up over 2% in pre-market trading after it reported Q1 EPS of 79 cents, above consensus of 74 cents.
Loews (L +0.22%) reported Q1 EPS of 27 cents, well below consensus of 71 cents.
Diamond Offshore Drilling (DO unch) reported Q1 EPS of 50 cents, above consensus of 42 cents.
Tyson Foods (TSN +2.51%) reported Q2 EPS of 77 cents, higher than consensus of 72 cents.
Cognizant Technology Solutions (CTSH +1.02%) reported Q1 EPS of 71 cents, better tgan consensus of 70 cents.
UBS reiterated its 'Buy' rating on Disney (DIS +1.66%) as it raised its pric target on the stock to $125 from $116.
Genuine Parts (GPC +1.80%) was upgraded to 'Buy' from 'Neutral' at Sterne Agee CRT.
Henry Schein (HSIC +1.27%) reported Q1 adjusted EPS of $1.28, better than consensus of $1.27, although Q1 revenue of $2.46 billion was below consensus of $2.54 billion.
Warren Buffett said he bought more shares of Internaatinal Business Machines (IBM +1.39%) in Q1.
Twitter (TWTR -2.87%) was upgraded to 'Hold' from 'Sell' at Stifel.
Buckeye Partners (BPL +0.56%) was upgraded to 'Buy' from 'Hold' at Stifel.
The Athyrium Opportunities Fund reported a 9.9% stake in Pernix Therapeutics (PTX +4.55%) .
Donaldson (DCI +0.88%) lowered guidance on fiscal 2015 EPS to $1.51-$1.61 from $1.65-$1.85, below consensus of $1.74.

MARKET COMMENTS

June E-mini S&Ps (ESM15 +0.27%) this morning are up +4.75 points (+0.23%). Friday's closes: S&P 500 +1.09%, Dow Jones +1.03%, Nasdaq +1.47%. The S&P 500 on Friday closed sharply higher on ideas that Friday's weaker-than-expected April ISM manufacturing index of unchanged at 51.5 (versus expectations of +0.5 to 52.0) will delay a Fed tightening. The broad market also received support from a rally in biotech stocks prompted by a 5% jump in Gilead Sciences on a positive Q1 earnings report.
Jun 10-year T-notes (ZNM15 -0.10%) this morning are down -3.5 ticks at a new 1-1/2 month low. Friday's closes: TYM5 -19.50, FVM5 -9.50. Jun 10-year T-notes on Friday slid to a 1-1/2 month low and closed lower on the recent jump in inflation expectations and on worries that the Fed will still raise interest rates later this year after the FOMC said this week that Q1 economic weakness was due to "transitory" factors.
The dollar index (DXY00 +0.31%) this morning is .up +0.263 (+0.28%) EUR/USD (^EURUSD) is down -0.0060 (-0.54%). USD/JPY (^USDJPY) is up +0.07 (+0.06%). Friday's closes: Dollar Index +0.697 (+0.74%), EUR/USD -0.00295 (-0.26%), USD/JPY +0.789 (+0.66%). The dollar index on Friday closed higher on the rally in the U.S. stock market and on weakness in EUR/USD after Dutch Finance Minister Dijsselboem said it was "too early to say" whether the Greek debt talks have reached a turning point.
Jun WTI crude oil (CLM15 +0.66%) this morning is up +19 cents (+0.32%) and Jun gasoline (RBM15 +0.55%) is up +0.0094 (+0.46%) at a 5-1/4 month high. Friday's closes: CLM5 -0.48 (-0.80%), RBM5 +0.0037 (-0.18%). Jun crude oil and gasoline on Friday closed lower on the stronger dollar and on reports of continued strong OPEC production in April. OPEC's Apr crude production level of 31.295 bpd was the 11th straight month that output has surpassed OPEC's 30 million bpd quota and was just below the 2-1/3 year high of 31.296 million bpd seen in March.

GLOBAL EVENT CALENDAR05/04/2015

US	0945 ET	Apr New York ISM, Mar -13.1 to 50.0.
	1000 ET	Mar factory orders expected +2.0%, Feb +0.2% and +0.8% ex transportation.
	1100 ET	USDA weekly grain export inspections.
	1225 ET	Chicago Fed President Charles Evans speaks about current economic conditions and monetary policy at the Columbus Economic Development Board Annual Meeting in Columbus, IN.
	1600 ET	USDA weekly crop progress.
GER	0355 ET	Revised German Apr Markit/BME manufacturing PMI, previous -0.9 to 51.9.
EUR	0400 ET	Revised Eurozone Apr Markit manufacturing PMI, previous -0.3 to 51.9.
	0430 ET	Eurozone May Sentix investor confidence expected -0.9 to 19.1, Apr 20.0.
UK	n/a	UK markets closed for May Day.
JPN	n/a	Japanese markets closed for Greenery Day.

U.S. STOCK CALENDAR05/04/2015

Company	Ticker	Time	Event Description	Period	Estimate
Dominion Resources Inc/VA	D US	Bef-mkt	Q1 2015 Earnings Release	Q1 2015	0.964
Loews Corp	L US	Bef-mkt	Q1 2015 Earnings Release	Q1 2015	0.705
Sysco Corp	SYY US	Bef-mkt	Q3 2015 Earnings Release	Q3 2015	0.413
Tyson Foods Inc	TSN US	Bef-mkt	Q2 2015 Earnings Release	Q2 2015	0.719
Cablevision Systems Corp	CVC US	Bef-mkt	Q1 2015 Earnings Release	Q1 2015	0.172
Henry Schein Inc	HSIC US	Bef-mkt	Q1 2015 Earnings Release	Q1 2015	1.267
Diamond Offshore Drilling Inc	DO US	Bef-mkt	Q1 2015 Earnings Release	Q1 2015	0.423
Cognizant Technology Solutions Corp	CTSH US	Bef-mkt	Q1 2015 Earnings Release	Q1 2015	0.696
Comcast Corp	CMCSA US	6:00	Q1 2015 Earnings Release	Q1 2015	0.737
Comcast Corp	CMCSA US	7:30	Q1 2015 Earnings Call	Q1 2015
Cognizant Technology Solutions Corp	CTSH US	8:00	Q1 2015 Earnings Call	Q1 2015
Diamond Offshore Drilling Inc	DO US	8:30	Q1 2015 Earnings Call	Q1 2015
Fidelity National Information Services Inc	FIS US	8:30	Investor Day	Y 2015
Tyson Foods Inc	TSN US	9:00	Q2 2015 Earnings Call	Q2 2015
Aflac Inc	AFL US	10:00	Annual General Meeting	Y 2015
Dominion Resources Inc/VA	D US	10:00	Q1 2015 Earnings Call	Q1 2015
Sysco Corp	SYY US	10:00	Q3 2015 Earnings Call	Q3 2015
Cablevision Systems Corp	CVC US	10:00	Q1 2015 Earnings Call	Q1 2015
Henry Schein Inc	HSIC US	10:00	Q1 2015 Earnings Call	Q1 2015
Loews Corp	L US	11:00	Q1 2015 Earnings Call	Q1 2015
McDonald's Corp	MCD US	11:00	Investor Conference	Y 2015
Anadarko Petroleum Corp	APC US	Aft-mkt	Q1 2015 Earnings Release	Q1 2015	-0.647
EOG Resources Inc	EOG US	Aft-mkt	Q1 2015 Earnings Release	Q1 2015	0.009
Tenet Healthcare Corp	THC US	Aft-mkt	Q1 2015 Earnings Release	Q1 2015	0.312
Vornado Realty Trust	VNO US	Aft-mkt	Q1 2015 Earnings Release	Q1 2015	1.188
DaVita HealthCare Partners Inc	DVA US	Aft-mkt	Q1 2015 Earnings Release	Q1 2015	0.867
Dun & Bradstreet Corp/The	DNB US	Aft-mkt	Q1 2015 Earnings Release	Q1 2015	1.231
Cimarex Energy Co	XEC US	Aft-mkt	Q1 2015 Earnings Release	Q1 2015	-0.38
Eli Lilly & Co	LLY US		Annual General Meeting
Masco Corp	MAS US		Annual General Meeting
PG&E Corp	PCG US		Annual General Meeting
AutoNation Inc	AN US		April 2015 Sales and Revenue Release	2015
Delta Air Lines Inc	DAL US		April 2015 Sales and Revenue Release - Traffic Results	2015

Barchart Morning Call 11/2

Barchart Morning Call

BC - Fri Nov 02, 7:00AM CDT

Overnight Developments

• Dec E-mini S&Ps this morning are unchanged ahead of this morning's Oct U.S. unemployment report (payrolls expected +125,000; unemployment rate expected +0.1 to 7.8%). The Euro Stoxx 50 index is virtually unchanged. Asia stocks today closed higher on support from yesterday's positive U.S. economic data with Japan up +1.17%, Hong Kong up +1.33%, and China up +0.39%. Commodity prices are mildly lower by -0.20% due in part to this morning's 0.35% rally in the dollar index. Dec crude oil is down -0.83%, Dec gasoline is down -0.05%, Dec gold is down -0.35%, Dec copper is down -0.62%, corn and soybeans are lower while the rest of the agriculture sector is higher. EUR/USD is down -0.51% on worries about whether the Greece coalition will be able to hold together to approve austerity measures. Dec 10-year T-notes are down 1 tick.
• The Eurozone final-Oct manufacturing PMI was revised slightly higher by 0.1 point to 45.4 from the preliminary report of 45.3. That left the Oct index down by 0.7 points from 46.1 in September and indicated that the Eurozone manufacturing sector contracted at a faster rate in October than in September.
• The German final-Oct manufacturing PMI was revised slightly higher by 0.3 points to 46.0 from the preliminary report of 45.7. That left the index down by 1.4 points from 47.4 in September.
• The UK Oct construction PMI report of 50.9 was up by 1.4 points from 49.5 in Sep and was substantially stronger than market expectations for a 0.5 point drop to 49.0.
• The Chinese central bank (People's Bank of China or PBOC) said in its third-quarter monetary report that the Chinese economy will maintain stable, relatively fast growth. The PBOC said it will continue to pursue a prudent monetary policy but that China will continue to firmly curb housing speculation.
• China's Securities Journal reported that China will allow small banks to have lower reserve requirement ratios in order to encourage those banks to step up their lending to smaller companies.
  Market Comments
  • Dec E-mini S&Ps this morning are unchanged as the market treads water ahead of today's Oct unemployment report. There has been little news overnight to impact the markets. The S&P 500 index on Thursday closed with a fairly sharp gain: S&P 500 +1.09%, Dow Jones +1.04%, Nasdaq +1.50%. The market was boosted by stronger-than-expected U.S. economic data and a rise in both of China's manufacturing PMI reports. The Oct U.S. ISM manufacturing index rose by +0.2 to 51.7, which was stronger than market expectations for a -0.5 point drop to 51.0. Moreover, the Oct ISM new orders sub-index rose by 1.9 points, adding to Sep's +5.2 point rise and posting a new 5-month high. Initial unemployment claims fell by 9,000 to 363,000, which showed a slightly stronger labor market than expectations for a decline to 370,000. Continuing claims rose by +4,000 to 3.263 mln. Oct ADP jobs rose +158,000, which was above expectations of +131,000, although Sep was revised lower by 48,000 to +114,000 from +162,000. The only weak U.S. report was the decline in U.S. Oct vehicle sales to 14.22 million units from 14.88 million in September, which was weaker than market expectations for a rise to 14.90 million units. China's Oct PMI from the China Federation of Logistics and Purchasing rose +0.4 points to 50.2 from 49.8 in Sep, which was in line with market expectations. Meanwhile, the Chinese Oct manufacturing PMI from HSBC rose 1.6 points to 49.5 from 47.9 and was 0.4 points stronger than the flash report and market expectations of 49.1.
  • Dec 10-year T-notes this morning are down 1 tick. Dec 10-year T-note prices on Thursday closed lower: TYZ2 -6.5, FVZ2 -0.25. T-note prices fell on the stronger-than-expected U.S. economic data and on reduced safe-haven demand with the rally in stocks.
  • The dollar index this morning is up +0.28 (+0.35%) on continued support from yesterday's firm U.S. economic data. EUR/USD is down -0.0066 (-0.51%) on cracks in the Greek coalition and squabbling among Eurozone officials about how Greece's debt load can be reduced to more realistic levels. USD/JPY is mildly higher by +0.15 (+0.19%). The dollar index on Thursday closed slightly higher: Dollar index +0.02 (+0.15%), EUR/USD -0.0017 (-0.13%), USD/JPY +0.35 (+0.44%). The dollar index received support from the stronger-than-expected U.S. economic data but was undercut by reduced safe-haven demand with the rally in stocks. EUR/USD closed slightly lower and was undercut by fresh doubts about whether the Greek parliament will be able to approve the austerity measures that are necessary to qualify for the next tranche of bailout aid.
  • Dec WTI crude oil prices this morning are down -0.72 (-0.83%) and Dec gasoline is down -0.0012 (-0.05%). Dec crude oil and gasoline prices on Thursday closed higher: CLZ2 +0.85 (+0.99%), RBZ2 +0.0033 (+0.13%). Bullish factors included the stronger-than-expected U.S. economic data and the unexpected -2.0 million barrel drop in DOE U.S. crude oil inventories versus expectations for a +1.75 million barrel increase. Meanwhile, gasoline inventories rose by +935,000 barrels and distillate inventories fell by -93,000 barrels. The refinery utilization rate rose by +0.5 points to 87.7% were it was 3.2 points above the 5-year seasonal average. On the bearish side, U.S. crude oil production rose by 0.9% to a new 17-3/4 year high of 6.669 million barrels per day.
  • For the complete subscription version of this daily report (plus a 13-page big-picture weekly report), along with the earliest possible delivery in the morning, please visit http://www.barchart.com/register/crbfms_usmc.php
    Today's U.S. Earnings Reports Earnings reports (ranked by market cap): CVX-Chevron (Consensus:$2.84), HES-Hess (1.19), ED-Consolidated Edison (1.38), PPl-PPL Corp (0.67), MHP-McGraw Hill (1.31), RL-Ralph Lauren (2.15), BEAM-Beam Inc (0.55), NI-Nisource (0.04), VMC-Vulcan Materials (0.16), PNW-Pinnacle West (2.24), XEC-Cimarex Energy (0.95), LNT-Alliant Energy (1.30), NRG-NRG Energy (0.44), BPL-Buckeye Partners (0.73), NVE-NV Energy (0.88), IT-Gartner (0.35), VHI-Valhi (na), IEP-Icahn Enterprise (na), OZM-Och-Zill (0.13), DRC-Dresser-Rand (0.68), HUN-Huntsman (0.51), WTR-Aqua America (0.35), SEE-Sealed Air (0.31), USM-US Cellular (0.61), MSG-Madison Square (0.20).
    Global Financial Calendar
    

    Friday 11/2/12
    United States
    0830 ET	Oct non-farm payrolls expected +125,000, Sep +114,000. Oct private payrolls expected +124,000, Sep +104,000. Oct mfg payrolls expected -3,000, Sep -16,000. Oct unemployment rate expected +0.1 to 7.9%, Sep down -0.3 to 7.8%. Oct household employment, Sep +873,000.
    0830 ET	Oct average hourly earnings expected +0.2% m/m and +1.7% y/y, Sep +0.3% m/m and +1.8% y/y. Oct average weekly hours expected unch at 34.5 hours, Sep 34.5.
    0945 ET	Oct New York ISM index, Sep 52.9.
    1000 ET	Sep factory orders expected +4.6% m/m, Aug -5.2% m/m.
    Germany
    0455 ET	German final Oct manufacturing PMI expected no change at 45.7.
    Euro-Zone
    0500 ET	Eurozone final Oct manufacturing PMI expected no change at 45.3.
    United Kingdom
    0530 ET	UK Oct construction PMI expected -0.5 to 49.0, Sep 49.5.
    CHI
    2000 ET	China Oct non-manufacturing PMI, Sep 53.7.

    Barchart.com provides Financial Quotes, Charts and Technical Analysis for Stock and Commodity Traders.

Barchart Morning Call 8/3

Barchart Morning Call

BC - 1 hr 10 mins ago

Overnight Developments

• Sep E-mini S&Ps this morning are up by +0.95% and European stocks are up with the Euro Stoxx 50 up +2.62%. EUR/USD is up +0.85% and the dollar index is down -0.72% before this morning's U.S. July nonfarm payrolls report. Italian and Spanish government bonds rebounded following Thursday's rout with the 10-year Italian yield down -22 bp to 6.068% and Spain's 10-year yield down -17 bp to 6.91% as it falls back below the critical 7.00% yield level. Commodity prices are mostly higher with crude oil up +1.31% and copper up +0.64%. Agricultural prices are mostly weaker with Dec corn down -0.60% and Nov soybeans down -0.15%. Sep T-notes are down -9.5 ticks.
• Asian stocks today closed mostly lower: Japan -1.13%, Hong Kong -0.12%, China +0.81%, Australia -1.13%, South Korea -1.25%, India -0.15%. Chinese stocks finished higher following a cut in transaction fees on share trading after the Asian markets closed yesterday.
• European and U.S. stocks gained, the EUR/USD rose and Italian and Spanish government bond yields fell after ECB Council member and Bank of Finland President Liikanen said "the euro is irreversible" and the ECB will take control and cool market turmoil once it completes details of a new bond purchasing program. He added that the size of the new program would be "adequate to reach its objective" of lowering Italian and Spanish borrowing costs.
• German final-July services PMI was unexpectedly revised up by +0.6 to 50.3 from the originally reported 49.7.
• Euro-Zone final-July composite PMI was unexpectedly revised higher by +0.1 to 46.5 from the originally reported 46.4.
• Euro-Zone June retail sales unexpectedly rose +0.1 m/m and fell -1.2% y/y, stronger than expectations of -0.1% m/m and -1.9% y/y.
• U.K. July services PMI unexpectedly fell -0.3 to 51.0, weaker than expectations of +0.3 to 51.6.
• China's July non-manufacturing PMI fell -1.1 to 55.6.
• In a quarterly report released today, the PBOC said it will keep pursuing a "prudent" monetary policy and that it will conduct "policy fine-tuning" at an appropriate time and consumer inflation may rebound after August, which suggests the PBOC may be slow to ease policy.
  Market Comments
  • Sep E-mini S&Ps this morning are up +13.00 points (+0.95%) after comments from ECB Council member Liikanen fueled a rally in EUR/USD and helped push down Spanish and Italian government bond yields. The U.S. stock market Thursday tumbled throughout the day and finished lower on concern the European debt crisis will drag on when ECB President Draghi failed to take immediate steps to alleviate the crisis: S&P 500 -0.75%, Dow Jones -0.71%, Nasdaq 100 -0.36%. Other negatives included the rise in 10-year Spanish bond yields above the critical 7.00% yield level and the unexpected decline in June U.S. factory orders.
  • Sep 10-year T-notes this morning are down -9.5 ticks on reduced safe-haven demand as equities rally. Sep 10-year T-note prices on Thursday rallied and settled higher on increased safe-haven demand after global stocks plunged when the ECB failed to take immediate action to support the economy or combat the debt crisis: TYU2 +15, FVU2 +4.7. An unexpected drop in June U.S. factory orders and a surge in Spanish and Italian government bond yields also lent support to Treasuries.
  • The dollar index this morning is weaker with EUR/USD +0.85% and USD/JPY +0.03%. The dollar index on Thursday bounced off of a 4-week low and closed higher as inaction by the ECB on the European debt crisis fueled a sell-off in global stocks and increased the safe-haven demand for the dollar: Dollar index +0.303 (+0.36%), EUR/USD -0.00456 (-0.37%), USD/JPY -0.203 (-0.26%).
  • Sep WTI crude oil prices this morning are up +$1.14 a barrel (+1.31%). Sep gasoline is down -0.0013 (-0.05%) cents per gallon . Crude oil and gasoline prices Thursday settled mixed as refinery outages across the U.S. boosted gasoline on supply concerns while crude closed lower on concern that inaction by the ECB on the European debt crisis will prolong the crisis and weaken energy demand: CLU2 -1.78 (-2.00%), RBU2 +0.0354 (+1.25%). A stronger dollar and an unexpected fall in June U.S. factory orders were additional negatives for crude prices.
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    Today's U.S. Earnings Reports Earnings reports (ranked by market cap): PG-Procter & Gamble (Consensus $0.77), VIAB-Viacom/B (1.00), ED-Consolidated Edison (0.59), NYX-NYSE Euronext (0.50), Y-Alleghany (6.83), LNT-Alliant Energy (0.47), BPL-Buckeye Partners LP (0.66), WCRX-Warner Chilcott PLC (0.80), IT-Gartner (0.41), DRC-Dresser-Rand Group (0.49), USM-US Cellular (0.72), NNN-National Retail Properties (0.25), WCG-WellCare Health Plans (1.21), MSG-Madison Square Garden (0.20), TDS-Telephone & Data Systems (0.45), SIRO-Sirona Dental Systems (0.77).
    Global Financial Calendar
    

    Friday 8/3/12
    United States
    0830 ET	July non-farm payrolls expected +100,000, June +80,000. July private payrolls expected +110,000, June +84,000. July manufacturing payrolls expected +10,000, June +11,000. July unemployment rate expected unch at 8.2%, June unch at 8.2%.
    0830 ET	July average hour earnings expected +0.2% m/m and +1.7% y/y, June +0.3% m/m and +2.0% y/y. July average weekly hours expected unchanged at 34.5 hours, June 34.5 hours.
    1000 ET	July ISM non-manufacturing index expected -0.1 to 52.0, June -1.6 to 52.1.
    Germany
    0355 ET	German final-July services PMI expected unrevised from preliminary 49.7.
    Euro-Zone
    0400 ET	Eurozone final-July services PMI expected unrevised from preliminary 47.6. Final-July composite PMI expected unrevised from preliminary 46.4.
    0500 ET	Eurozone June retail sales expected -0.1% m/m and -1.9% y/y, May +0.6% m/m and -1.7% y/y.
    United Kingdom
    0430 ET	UK July services PMI expected +0.3 to 51.6, June 51.3.

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