Showing posts with label CAFD. Show all posts
Showing posts with label CAFD. Show all posts

Thursday, October 5, 2017

Morning Call 10/5

Barchart Morning Call

OVERNIGHT MARKETS AND NEWS
Dec E-mini S&Ps (ESZ17 +0.03%) this morning are little changed, up +0.01%, ahead of speeches later this morning from Fed Governor Powell and Fed Presidents Harker and Williams. The speech from Fed Governor Powell may be given added scrutiny with reports that he is on President Trump's shortlist of candidates to replace Fed Chair Yellen. European stocks are unchanged as the markets weigh the situation in Spain where the state of Catalonia is trying to secede from Spain and form its own independent republic. Spain's IBEX Stock Index is up 1.15% and is giving a boost to European stocks after Spanish Economy Minister Guindos said that banks in Catalonia have indicated they are open to moving their headquarters elsewhere if the situation in the state worsens. Guindos also said that Catalonia's actions are illegal and independence is out of the question and that Spain has nothing to discuss with the secessionists until rule of law is restored. GBP/USD tumbled -0.49% to a 3-week low on reports that UK Prime Minister May could face a leadership rebellion within her own party with up to 30 Tory lawmakers prepared to sign a letter calling for her resignation. Asian stocks settled mixed: Japan +0.01%, Taiwan +0.47%, Australia -0.01%, Singapore +0.78%, India -0.25%. China, Hong Kong and South Korea are all closed for holidays.
The dollar index (DXY00 +0.16%) is up +0.11%. EUR/USD (^EURUSD) is down -0.13%. USD/JPY (^USDJPY) is down -0.22%.
Dec 10-year T-note prices (ZNZ17 +0.06%) are up +2.5 ticks.
UK Sep new car registrations fell -9.3% y/y to 426,170 and year-to-date are down -3.9% to 2,066.411.
The German Sep Markit construction PMI fell -1.5 to 53.4, the slowest pace of expansion in 8-months.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) Sep Challenger job cuts (Aug +5.1% y/y), (2) weekly initial unemployment claims (expected -7,000 to 265,000, previous +12,000 to 272,000) and continuing claims (expected +16,000 to 1.950 million, previous -45,000 to 1.934 million), (3) Aug trade balance (expected -$42.7 billion, Jul -$43.7 billion), (4) Fed Governor Jerome Powell speaks on Treasury markets and Treasury market practices at an event in New York, (5) San Francisco Fed President John Williams (non-voter) delivers keynote speech at the St. Louis Fed’s Community Banking in the 21st Century Research and Policy Conference, (6) Aug factory orders (expected +1.0%, Jul -3.3% and +0.5% ex transportation), (7) Philadelphia Fed President Patrick Harker (voter) speaks at the “Investing in America’s Workforce” conference, (8) Kansas City Fed President Esther George (non-voter) speaks at the “Investing in America’s Workforce” conference, (9) USDA weekly Export Sales.
Notable Russell 1000 earnings reports today include: Costco (consensus $2.02), Constellation Brands (2.17), Global Payments (1.10), Yum China Holdings (0.56).
U.S. IPO's scheduled to price today: Switch (SWCH).
Equity conferences this week: Petaluma Area Chamber of Commerce Business Conference on Fri.
OVERNIGHT U.S. STOCK MOVERS
Microsoft (MSFT +0.58%) was upgraded to 'Buy' from 'Hold' at Canaccord Genuity with a price target of $86.
United Parcel Service (UPS -0.59%) and FedEx (FDX -0.75%) are both down over 2% in pre-market trading after Bloomberg News reported that Amazon.com is currently testing its own delivery service.
Norwegian Cruise Line Holdings Ltd (NCLH +2.28%) jumped 7% in after-hours trading after it was announced that it will replace Level 3 in the S&P 500 before the open of trading on Friday, Oct 13.
Mallinckrodt (MNK -0.61%) was downgraded to 'Hold' from 'Buy' at Canaccord Genuity.
ACADIA Pharmaceuticals (ACAD +0.72%) rallied over 5% in after-hours trading after the FDA granted 'Breakthrough Therapy Designation' to its Pimavanserin for the treatment of hallucinations and delusions associated with dementia-related psychosis.
Zumiez (ZUMZ -1.56%) climbed almost 5% in after-hours trading after it reported September comparable sales were up +9.3%, better than consensus of +2.9%, and then raised guidance on Q3 net sales to $241 million-$243 million from a prior estimate of $236 million-$241 million.
Monsanto (MON +0.05%) was downgraded to 'Neutral' from 'Outperform' at Macquarie.
SeaWorld Entertainment (SEAS +4.60%) rose almost 4% in after-hours trading after Merlin Entertainment is said to have approached SeaWorld on a deal for part of the company.
Matador Resources (MTDR -1.26%) may open lower today after it announced that it had commenced an underwritten public offering of 8.0 million shares of its common stock.
8Point3 Energy Partners LP (CAFD +1.21%) lost almost 2% in after-hours trading after it said it sees Q4 revenue of $12 million-$15 million, the midpoint below consensus of $14.6 million.
ImmunoGen (IMGN +2.35%) dropped 8% in after-hours trading after it announced that it intends to offer 12 million shares of common stock in an underwritten public offering.
MobileIron (MOBL -2.60%) jumped over 9% in after-hours trading after holder Altai Capital reported a 7.63% stake in the company as of Oct 2.
Fairmont Santrol Holdings (FMSA -3.85%) rose 2% in after-hours trading after it was re-initiated an 'Overweight' rating at Keybanc Capital Markets with a price target of $6.50.
MARKET COMMENTS
Dec S&P 500 E-mini stock futures (ESZ17 +0.03%) this morning are up +0.25 points (+0.01%). Wednesday's closes: S&P 500 +0.12%, Dow Jones +0.09%, Nasdaq +0.06%. The S&P 500 on Wednesday posted a new record high and closed higher on the rise in the U.S. Sep ISM non-manufacturing index by +4.5 points to 59.8, stronger than expectations of +0.2 to 55.5 and the fastest pace of expansion in 12 years. Stocks were also supported by increased speculation that President Trump may select Jerome Powell over Kevin Warsh for Fed chairman, which may lead to easier monetary policy as Powell is seen as more dovish than Warsh.
Dec 10-year T-note prices (ZNZ17 +0.06%) this morning are up +2.5 ticks. Wednesday's closes: TYZ7 unch, FVZ7 unch. Dec 10-year T-notes on Wednesday closed little changed. T-note prices were undercut by the stronger-than-expected U.S. Sep ISM non-manufacturing index to a 12-year high and by reduced safe-haven demand with the rally in the S&P 500 to a new record high. T-note prices were supported by speculation that President Trump may be leaning toward Jerome Powell to replace Janet Yellen as Fed Chair, which is seen a supportive for T-notes since Powell is one of the more dovish choices for Fed Chair compared to other candidates.
The dollar index (DXY00 +0.16%) this morning is up +0.103 (+0.11%). EUR/USD (^EURUSD) is down -0.0015 (-0.13%) and USD/JPY (^USDJPY) is down -0.25 (-0.22%). Wednesday's closes: Dollar Index +0.039 (+0.04%), EUR/USD +0.0015 (+0.13%), USD/JPY -0.09 (-0.08%). The dollar index on Wednesday closed little changed. The dollar was supported by the jump in the U.S. Sep ISM non-manufacturing index to a 12-year high and by the increase in 10-year T-note yields, which boosts the dollar's interest rate differentials. The dollar was undercut by increased speculation that President Trump may select Jerome Powell over Kevin Warsh for Fed chairman, which would be negative for the dollar since Powell is seen as more dovish than Warsh.
Nov crude oil (CLX17 +0.34%) this morning is up +9 cents (+0.18%) and Nov gasoline (RBX17 +1.59%) is +0.0215 (+1.36%). Wednesday's closes: Nov WTI crude -0.44 (-0.87%), Nov gasoline +0.0150 (+0.96%). Nov crude oil and gasoline on Wednesday settled mixed. Crude oil prices found support on the -6.02 million bbl decline in EIA crude inventories (a much bigger decline than expectations of -500,000 bbl) and strong foreign demand for U.S. crude after U.S. crude exports rose +33% in the week of Sep 29 to a record 1.98 million bpd. Crude oil prices were undercut by the +0.1% increase in U.S. crude production in the week of Sep 29 to 9.561 million bpd, a new 2-year high, and by the +1.53 million bbl increase in crude supplies at Cushing, OK, delivery point of WTI crude futures.
Metals prices this morning are hogher with Dec gold (GCZ17 +0.29%) +4.3 (+0.34%), Dec silver (SIZ17 +0.28%) +0.071 (+0.43%) and Dec copper (HGZ17 +0.74%) +0.022 (+0.73%). Wednesday's closes: Dec gold +2.2 (+0.17%), Dec silver -0.026(-0.16%), Dec copper -0.0045 (-0.15%). Metals on Wednesday settled mixed. Metals prices found support on increased safe-haven demand for precious metals on political tensions in Spain where the state of Catalonia wants to secede from Spain and form its own independent republic. Metals prices were also boosted by the increase in the U.S. Sep ISM non-manufacturing index to a 12-year high, a sign of economic strength that is positive for industrial metals demand. Metals prices were undercut by the rally in the S&P 500 to a new record high, which reduced the safe-haven demand for precious metals.
GLOBAL EVENT CALENDAR10/05/2017
Thursday, Oct 5
US0730 ETSep Challenger job cuts, Aug +5.1% y/y.
0830 ETWeekly initial unemployment claims expected -7,000 to 265,000, previous +12,000 to 272,000. Weekly continuing claims expected +16,000 to 1.950 million, previous -45,000 to 1.934 million.
0830 ETAug trade balance expected -$42.7 billion, Jul -$43.7 billion.
0830 ETUSDA weekly Export Sales.
0910 ETFed Governor Jerome Powell speaks on Treasury markets and Treasury market practices at an event in New York.
0915 ETSan Francisco Fed President John Williams (non-voter) delivers keynote speech at the St. Louis Feds Community Banking in the 21st Century Research and Policy Conference.
1000 ETAug factory orders expected +1.0%, Jul -3.3% and +0.5% ex transportation.
1000 ETPhiladelphia Fed President Patrick Harker (voter) speaks at the Investing in Americas Workforce conference.
1100 ETTreasury 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 Oct 11-12.
1630 ETKansas City Fed President Esther George (non-voter) speaks at the Investing in Americas Workforce conference.
Friday, Oct 6
US0830 ETSep non-farm payrolls expected +80,000, Aug +156,000. Sep private payrolls expected +74,000, Aug +165,000. Sep manufacturing payrolls expected +8,000, Aug +36,000. Sep unemployment rate expected unch at 4.4%, Aug +0.1 to 4.4%.
0830 ETSep avg hourly earnings expected +0.3% m/m and +2.5% y/y, Aug +0.1% m/m and +2.5% y/y. Sep avg weekly hours all-employees expected unch at 34.4 hours, Aug -0.1 to 34.4 hours.
0915 ETAtlanta Fed President Raphael Bostic (non-voter) speaks at the Investing in Americas Workforce conference.
1000 ETAug wholesale trade sales expected unch m/m, Jul -0.1% m/m. Revised Aug wholesale inventories expected unchanged at +1.0%, prelim-Aug +1.0% m/m.
1215 ETNew York Fed President William Dudley (voter)will deliver a speech on The Monetary Policy Outlook and the Importance of Higher Education for Economic Mobility at an event in New York.
1245 ETDallas Fed President Robert Kaplan (voter) speaks in a moderated Q&A at an Investing in Americas Workforce conference in Dallas.
1500 ETAug consumer credit expected +$15.54 billion, Jul +$18.499 billion.
U.S. STOCK CALENDAR10/05/2017
NameTickerTimeDescriptionPeriodEstimate
Constellation Brands IncSTZ USBef-mktQ2 2018 Earnings ReleaseQ2 182.166
Leucadia National CorpLUK US08:30Investor Meeting
Clorox Co/TheCLX US09:00Analyst Day
Constellation Brands IncSTZ US10:30Q2 2018 Earnings CallQ2 18
Telephone & Data Systems IncTDS USRoadshow - Day 4
United States Cellular CorpUSM USRoadshow - Day 4
RPM International IncRPM USAnnual General Meeting
Global Payments IncGPN USQ3 2017 Earnings ReleaseQ3 171.098
Leucadia National CorpLUK USInvestor Day
Symantec CorpSYMC US12:00Annual General Meeting
Oracle CorpORCL US14:00Analyst Meeting
Costco Wholesale CorpCOST US16:15Q4 2017 Earnings ReleaseQ4 172.017
Yum China Holdings IncYUMC US16:30Q3 2017 Earnings ReleaseQ3 170.564
Costco Wholesale CorpCOST US17:00Q4 2017 Earnings CallQ4 17
Yum China Holdings IncYUMC US20:00Q3 2017 Earnings CallQ3 17

Thursday, April 6, 2017

MORNING CALL 4/6

Barchart Morning Call

OVERNIGHT MARKETS AND NEWS
Jun E-mini S&Ps (ESM17 +0.11%) this morning are up +0.13% as they recovered from a 1-week low in overnight trade. Concern by FOMC members over high stock prices led to a sell-off Wednesday afternoon that extended into overnight trading after the Mar 14-15 FOMC meeting minutes said, "some participants viewed equity prices as quite high relative to standard valuation measures." Stocks recovered, though, on short-covering ahead of a 2-day meeting that begins today between President Trump and Chinese President Xi Jinping in Florida. European stocks are up +0.10% after comments from ECB President Draghi signaled the ECB will continue with its QE program when he said that "a reassessment of the current monetary policy stance is not warranted at this stage." Asian stocks settled mostly lower: Japan -1.40%, Hong Kong -0.52%, China +0.33%, Taiwan -0.52%, Australia -0.34%, Singapore -0.03%, South Korea -0.45%, India -0.16%. China's Shanghai Composite bucked the sell-off in global stock markets and rallied to a 4-month high on optimism that talks between Chinese President Xi Jinping and U.S. President Trump will improve U.S.-China trade relations. Japan's Nikkei Stock Index followed the late sell-off in U.S. stocks Wednesday and fell to a 3-3/4 month low.
The dollar index (DXY00 +0.01%) is up +0.04%. EUR/USD (^EURUSD) is up +0.04%. USD/JPY (^USDJPY) is up +0.14%.
Jun 10-year T-note prices (ZNM17 unch) are little changed, down -0.5 of a tick.
ECB President Draghi said, "we have not yet seen sufficient evidence to materially alter our assessment of the inflation outlook" and that "a reassessment of the current monetary policy stance is not warranted at this stage."
San Francisco Fed President Williams (non-voter) said two more rate hikes this year is a sensible starting point and that it makes sense for the Fed to start shrinking its balance sheet toward the end of this year. He added that it will take something like 5-years to bring the balance sheet down to a more normal level, just based on the arithmetic of its holdings.
German Feb factory orders rose +3.4% m/m, weaker than expectations of +4.0% m/m.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) Mar Challenger job cuts (Feb -40.0% y/y), (2) weekly initial unemployment claims (expected -8,000 to 250,000, previous -3,000 to 258,000), (3) weekly continuing claims (expected -22,000 to 2.030 million, previous +65,000 to 2.052 million), (4) San Francisco Fed President John Williams (non-voter) speaks on a ECB panel in Frankfurt on “Do monetary policy frameworks need to be adjusted in a world of (potentially) low natural interest rates? If so, how?” (5) President Trump and Chinese President Xi Jinping hold talks on Thu-Fri at Mar-a-Lago, Florida.
Notable Russell 1000 earnings reports today include: Constellation Brands (consensus $1.36), RPM Intl (0.11), MSC Industrial Direct (0.90), CarMax (0.79), Lamb Weston (0.54).
U.S. IPO's scheduled to price today:
Equity conferences: Jefferies Animal Health Summit on Thu.
OVERNIGHT U.S. STOCK MOVERS
Medtronic PLC (MDT -0.47%) gained almost 2% in after-hours trading after Reuters reported that it was close to selling its medical supplies unit to Cardinal Health for $6 billion.
Jazz Pharmaceuticals PLC (JAZZ -1.79%) climbed over 4% in after-hours trading after it settled a lawsuit with Hikma that grants Hikma the right to sell an authorized generic version of Xyrem in the U.S. starting January 1, 2023.
Yum China Holdings (YUMC +0.79%) rallied nearly 10% in after-hours trading after it reported Q1 comparable sales unexpectedly rose 1%, better than consensus of -2.4%, and reported Q1 revenue of $1.28 billion, higher than consensus of $1.27 billion.
TD Ameritrade (AMTD -2.06%) was upgraded to 'Buy' from 'Neutral' at Buckingham Research Group with a 12-month target price of $48.
Cardinal Health (CAH +0.14%) was upgraded to 'Outperform' from 'Inline' at Evercore ISI with a 12-month target price of $91.50.
Teladoc (TDOC +1.41%) was downgraded to 'Neutral' from 'Overweight' at Cantor Fitzgerald with a 12-month target price of $27.
OZ Minerals (OZMLF -8.26%) was downgraded to 'Sell' from 'Hold' at Morningstar.
Bed Bath & Beyond (BBBY -3.03%) rose nearly 3% in after-hours trading after it reported Q4 EPS of $1.84, above consensus of $1.77.
Resources Connection (RECN -1.53%) dropped 9% in after-hours trading after it reported Q3 EPS of 9 cents, below consensus of 14 cents.
8Point3 Energy Partners LP (CAFD +0.92%) tumbled 14% in after-hours trading after it said it sees Q2 revenue of $14 million to $16 million, weaker than consensus of $16.2 million.
GoPro (GPRO unch) fell over 1% in after-hours trading after it offered $150 million of convertible senior notes due 2022 in a private placement.
Colony Northstar (CLNS -0.53%) lost nearly 2% in after-hours trading after a person familiar with the matter said a 21.9 million share block of Northstar shares were being offered at $12.65 to $12.70 via Morgan Stanley.
Synacor (SYNC +1.22%) slumped 6% in after-hours trading after it announced a proposed public offering of common stock, although no size was given.
MARKET COMMENTS
Jun E-mini S&Ps (ESM17 +0.11%) this morning are up +3.00 points (+0.13%). Wednesday's closes: S&P 500 -0.31%, Dow Jones -0.20%, Nasdaq -0.40%. The S&P 500 on Wednesday rallied to a 2-week high but shed its gains and closed lower. Negative factors include the -2.4 point decline in the U.S. Mar ISM non-manufacturing index to a 5-month low of 55.2, House Speaker Ryan's comment that tax reform could take longer than a health care overhaul, and the Mar 14-15 FOMC meeting minutes where some policy makers said that stock prices were "quite high" and where the FOMC said it would start reducing its balance sheet "later this year." Stocks found early support on the Mar ADP employment report of +263,000, stronger than expectations of +185,000 and the most in 2-1/4 years.
Jun 10-year T-notes (ZNM17 unch) this morning are down -0.5 of a tick. Wednesday's closes: TYM7 +0.50, FVM7 +1.50. Jun 10-year T-notes on Wednesday closed slightly higher on weakness in stocks and the U.S. Mar ISM non-manufacturing index report of -2.4 points to a 5-month low of 55.2. T-notes were undercut by the stronger-than-expected U.S. Mar ADP employment report and by the minutes from the Mar 14-15 FOMC meeting where policy makers said they would begin shrinking the Fed's balance sheet later this year.
The dollar index (DXY00 +0.01%) this morning is up +0.04 (+0.04%). EUR/USD (^EURUSD) is up +0.0004 (+0.04%) and USD/JPY (^USDJPY) is up +0.16 (+0.14%). Wednesday's closes: Dollar index +0.02 (+0.02%), EUR/USD -0.0011 (-0.10%), USD/JPY -0.04 (-0.04%). The dollar index on Wednesday rose to a 3-week high and settled higher. The dollar was boosted by the stronger-than-expected U.S. Mar ADP employment report (+263,000) and the Mar 14-15 FOMC minutes where the Fed it would likely start reducing its balance sheet later in the year.
May WTI crude oil prices (CLK17 +0.57%) this morning are up +11 cents (+0.22%) and May gasoline (RBK17 +0.26%) is -0.0003 (-0.02%). Wednesday's closes: May crude +0.12 (+0.24%), May gasoline -0.0064 (-0.37%). May crude oil and gasoline on Wednesday settled mixed with May crude at a 4-week high. Crude oil was boosted by optimism that OPEC will extend its production cuts past June. Crude oil prices were undercut by the unexpected +1.57 million bbl increase in EIA crude inventories to a record 535.5 million bbl (vs expectations of -150,000 bbl), the +1.41 million bbl increase in crude supplies at Cushing, OK, delivery point of WTI futures, to a record 69.144 million bbl, and the +0.6% increase in U.S. crude production the week ended Mar 31 to a 14-month high of 9.199 million bpd.

GLOBAL EVENT CALENDAR04/06/2017
Thursday, April 6
USn/aPresident Trump and Chinese President Xi Jinping hold talks on Thu-Fri at Mar-a-Lago, Florida.
0700 ETMar Challenger job cuts, Feb -40.0% y/y.
0830 ETWeekly initial unemployment claims expected -8,000 to 250,000, previous -3,000 to 258,000. Weekly continuing claims expected -22,000 to 2.030 million, previous +65,000 to 2.052 million.
0830 ETUSDA weekly Export Sales.
0930 ETSan Francisco Fed President John Williams (non-voter) speaks on a ECB panel in Frankfurt on Do monetary policy frameworks need to be adjusted in a world of (potentially) low natural interest rates? If so, how?
1100 ETTreasury 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 Apr 10-12.
Friday, April 7
USn/aPresident Trump and Chinese President Xi Jinping hold talks on Thu-Fri at Mar-a-Lago, Florida.
0700 ETMar Challenger job cuts, Feb -40.0% y/y.
0830 ETWeekly initial unemployment claims expected -8,000 to 250,000, previous -3,000 to 258,000. Weekly continuing claims expected -22,000 to 2.030 million, previous +65,000 to 2.052 million.
0830 ETUSDA weekly Export Sales.
0930 ETSan Francisco Fed President John Williams (non-voter) speaks on a ECB panel in Frankfurt on Do monetary policy frameworks need to be adjusted in a world of (potentially) low natural interest rates? If so, how?
1100 ETTreasury 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 Apr 10-12.
U.S. STOCK CALENDAR04/06/2017

CompanyTickerTimeEvent DescriptionPeriodEstimate
Constellation Brands IncSTZ USBef-mktQ4 2017 Earnings ReleaseQ4 171.364
RPM International IncRPM USBef-mktQ3 2017 Earnings ReleaseQ3 170.109
MSC Industrial Direct Co IncMSM USBef-mktQ2 2017 Earnings ReleaseQ2 170.897
CarMax IncKMX US07:00Q4 2017 Earnings ReleaseQ4 170.786
Lamb Weston Holdings IncLW US08:30Q3 2017 Earnings ReleaseQ3 170.535
MSC Industrial Direct Co IncMSM US08:30Q2 2017 Earnings CallQ2 17
CarMax IncKMX US09:00Q4 2017 Earnings CallQ4 17
Comcast CorpCMCSA US09:00Analyst Day
RPM International IncRPM US10:00Q3 2017 Earnings CallQ3 17
Lamb Weston Holdings IncLW US10:00Q3 2017 Earnings CallQ3 17
Constellation Brands IncSTZ US10:30Q4 2017 Earnings CallQ4 17
Synopsys IncSNPS US11:00Annual General Meeting
Quintiles IMS Holdings IncQ USAnnual General Meeting