Showing posts with label CRUS. Show all posts
Showing posts with label CRUS. Show all posts

Wednesday, February 22, 2017

MORNING CALL 2/22

Barchart Morning Call

Barchart.com - Wed Feb 22, 6:39AM CST
OVERNIGHT MARKETS AND NEWS
Mar E-mini S&Ps (ESH17 -0.17%) are down -0.15% and European stocks fell back from a 14-month high and are down -0.23%. Long liquidation ahead of today's minutes of the Jan 31-Feb 1 FOMC meeting weighed on U.S. stocks, while concern over the outcome of the French presidential election weighed on European stocks which had posted a 14-month high after the German Feb IFO business climate unexpectedly rose and matched a 5-1/2 year high. The increase in European political risks from France's presidential election undercut EUR/USD which fell to a 5-week low and boosted the safe-haven demand for government debt as German bunds rallied to a 1-1/2 month high. Another negative for equities is weakness in energy producing stocks with Apr WTI crude oil (CLJ17 -0.57%) down -0.44%. Asian stocks settled mostly higher: Japan -0.01%, Hong Kong +0.99%, China +0.24%, Taiwan +0.15%, Australia +0.24%, Singapore +0.91%, South Korea +0.27%, India +0.36%. China's Shanghai Composite rose to a 2-1/2 month high as Asian markets found support from Monday's rally in U.S. stocks to record highs.
The dollar index (DXY00 +0.24%) is up +0.29%. EUR/USD (^EURUSD) is down -0.36% at a 5-week low. USD/JPY (^USDJPY) is down -0.48%.
Mar 10-year T-note prices (ZNH17 +0.08%) are up +5.5 ticks.
China Jan new home prices rose in 45 of the 70 cities tracked by the government, down from 46 cities that rose in December and the fewest in a year.
The German Feb IFO business climate unexpectedly rose +1.1 to 111.0, stronger than expectations of -0.2 to 109.6 and matched a 5-1/2 year high.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) weekly MBA mortgage applications (previous -3.7% with purchase sub-index -4.5% and refi sub-index -2.9%), (2) Jan existing home sales (expected +1.1% to 5.55 million, Dec -2.8% to 5.49 million), (3) Treasury auctions $13 billion 2-year floating-rate notes, (4) Fed Governor Jerome Powell speaks on the economic outlook and monetary policy at a Forecaster’s Club of New York luncheon, (5) Treasury auctions $34 billion of 5-year T-notes, and (6) minutes of the Jan 31-Feb1 FOMC meeting.
Notable S&P 500 earnings reports today include: HP (consensus $0.37), L Brands (1.90), Public Storage (2.65), Host Hotels (0.38), NiSource (0.33), Welltower (1.09), Garmin (0.57), Southern Co (0.30), TJX (1.00), Range Resources (0.09), Transocean (0.05), Realty Income (0.75).
U.S. IPO's scheduled to price today: none.
Equity conferences: CAGNY Investor Conference on Tue-Fri, Barclays Industrial Select Conference on Wed-Thu, RBC Capital Markets Health Care Conference on Wed-Thu, Cantor Fitzgerald Internet & Technology Services Conference on Thu.
OVERNIGHT U.S. STOCK MOVERS
Ralph Lauren (RL -0.26%) was downgraded to 'Underweight' from 'Neutral' at Atlantic Equities LP with a price target of $68.
Cavium (CAVM +0.19%) was rated a new 'Buy' at MKM Partners with a 12-month price target of $77.
XPO Logistics (XPO -1.71%) rallied over 3% in after-hours trading after it reported Q4 adjusted EPS of 24 cents, higher than consensus of 20 cents.
Texas Roadhouse (TXRH -0.93%) sank 9% in after-hours trading after it reported Q4 revenue of $484.7 million, weaker than consensus of $497.4 million.
Red Robin Gourmet Burgers (RRGB -0.63%) climbed over 3% in after-hours trading after it reported Q4 adjusted EPS of 35 cents, above consensus of 31 cents.
Cirrus Logic (CRUS -0.29%) was rated a new 'Buy' at MKM Partners with a 12-month target price of $65.
Tribune Media (TRCO +2.21%) moved up over 2% in after-hours trading after Starboard Value LP said it raised its stake in the company to 6.6% from 2.3%.
First Solar (FSLR +5.11%) climbed 5% in after-hours trading after it reported Q4 adjusted EPS of $1.24, higher than consensus of 98 cents, and then said it sees full-year net sales of $2.8 billion-$2.9 billion, above consensus of $2.53 billion.
Terex (TEX +0.41%) slid over 3% in after-hours trading after it lowered guidance on full-year adjusted EPS to 60 cents to 80 cents, weaker than consensus of $1.05.
Wright Medical Group NV (WMGI -0.37%) gained nearly 3% in after-hours trading after it reported Q4 net sales of $193 million, better than consensus of $183.5 million, and then said it sees full-year revenue of $755 million-$765 million, better than consensus of $755.5 million.
CSRA Inc. (CSRA +2.03%) raised guidance on full-year adjusted EPS to $2.00-$2.04 from a prior view of $1.98-$2.02.
Yum! Brands (YUM -1.07%) dropped over 1% in after-hours trading after a block trade of 12 million shares was said to be offered via Morgan Stanley
Papa John's (PZZA -0.44%) fell over 1% in after-hours trading after it reported Q4 revenue of $439.6 million, below consensus of $447.4 million.
Global Blood Therapeutics (GBT +5.95%) dropped 10% in after-hours trading after it announced a $75 million public offering of common stock.
Copart (CPRT +2.19%) reported Q2 adjusted EPS of 58 cents, better than consensus of 57 cents.
MARKET COMMENTS
Mar E-mini S&Ps (ESH17 -0.17%) this morning are down -3.50 points (-0.15%). Tuesday's closes: S&P 500 +0.60%, Dow Jones +0.58%, Nasdaq +0.49%. The S&P 500 on Tuesday rallied to a fresh all-time high and closed higher on carry-over support from a rally in European stocks to a 14-month high on signs of economic strength in Europe after the Eurozone Feb Markit composite PMI rose +1.6 to 56.0, the fastest pace of expansion since the data series began in 2014. There was also a rally in energy-producing stocks after the price of Apr WTI crude oil rose +0.84% to a 1-month high.
Mar 10-year T-notes (ZNH17 +0.08%) this morning are up +5.5 ticks. Tuesday's closes: TYH7 unch, FVH7 -0.50. Mar 10-year T-notes on Tuesday closed little changed. T-notes found supported on the unexpected decline in the U.S. Feb Markit manufacturing PMI (-0.7 versus expectations of +0.4) and on strong demand for the Treasury's $26 billion 2-year T-note auction that had a bid-to-cover ratio of 2.82, above the 12-auction average of 2.69. T-notes were undercut by reduced safe-haven demand with the rally in the S&P 500 to a new record high.
The dollar index (DXY00 +0.24%) this morning is up +0.29 (+0.29%). EUR/USD (^EURUSD) is down -0.0038 (-0.36%) at a 5-week low. USD/JPY (^USDJPY) is down -0.55 (-0.48%). Tuesday's closes: Dollar index +0.42 (+0.42%), EUR/USD -0.0078 (-0.73%), USD/JPY +0.58 (+0.51%). The dollar index on Tuesday closed higher on hawkish comments from Philadelphia Fed President Harker (voter) who said an interest rate increase at the Mar 14-15 FOMC meeting remains on the table. There was also weakness in EUR/USD as European political risks rose after polls showed anti-euro French presidential candidate Marine Le Pen gained ground on her rivals.
Apr WTI crude oil prices (CLJ17 -0.57%) this morning are down -24 cents (-0.44%) and Apr gasoline (RBJ17 -0.06%) is +0.0025 (+0.15%). Tuesday's closes: Apr crude +0.45 (+0.84%), Apr gasoline -0.0081 (-0.53%). Apr crude oil and gasoline on Tuesday settled mixed with Apr crude at a 1-month high. Crude oil prices were supported by comments from OPEC Secretary-General Mohammad Barkindo who said OPEC intends to achieve full compliance with its crude production cuts "in due course." Gasoline closed lower after the crack spread fell to a 1-year low, which may reduce refinery demand for crude to refine into gasoline.

GLOBAL EVENT CALENDAR02/22/2017
Wednesday, Feb 22
US0700 ETWeekly MBA mortgage applications, previous -3.7% with purchase sub-index -4.5% and refi sub-index -2.9%.
1000 ETJan existing home sales expected +0.9% to 5.54 million, Dec -2.8% to 5.49 million.
1130 ETTreasury auctions $13 billion 2-year floating-rate notes.
1300 ETFed Governor Jerome Powell speaks on the economic outlook and monetary policy at a Forecasters Club of New York luncheon.
1300 ETTreasury auctions $34 billion of 5-year T-notes.
1400 ETMinutes of the Jan 31-Feb1 FOMC meeting.
Thursday, Feb 23
US0830 ETWeekly initial unemployment claims expected +1,000 to 240,000, previous +5,000 to 239,000. Weekly continuing claims expected -11,000 to 2.065 million, previous -3,000 to 2.076 million.
0830 ETJan Chicago Fed national activity index expected -0.17 to -0.03, Dec +0.47 to 0.14.
0900 ETDec FHFA house price index expected +0.5%, Nov +0.5% m/m. Q4 house price purchase index expected +0.4% q/q, Q3 +1.5% q/q.
1100 ETFeb Kansas City Fed manufacturing activity expected unch at 9, Jan unch at 9.
1100 ETEIA Weekly Petroleum Status Report.
1300 ETTreasury auctions $28 billion of 7-year T-notes.
1500 ETUSDA Jan Cold Storage.
U.S. STOCK CALENDAR02/22/2017
CompanyTickerTimeEvent DescriptionPeriodEstimate
Host Hotels & Resorts IncHST USBf-mktQ4 2016 Earnings ReleaseQ4 20160.375
NiSource IncNI USBf-mktQ4 2016 Earnings ReleaseQ4 20160.334
Welltower IncHCN USBf-mktQ4 2016 Earnings ReleaseQ4 20161.092
Garmin LtdGRMN USBf-mktQ4 2016 Earnings ReleaseQ4 20160.574
Southern Co/TheSO US7:30Q4 2016 Earnings ReleaseQ4 20160.314
Verisk Analytics IncVRSK US8:30Q4 2016 Earnings CallQ4 2016
NiSource IncNI US9:00Q4 2016 Earnings CallQ4 2016
Eversource EnergyES US9:00Q4 2016 Earnings CallQ4 2016
American Water Works Co IncAWK US9:00Q4 2016 Earnings CallQ4 2016
TJX Cos Inc/TheTJX US9:30Q4 2017 Earnings ReleaseQ4 20171.002
Concho Resources IncCXO US9:30Q4 2016 Earnings CallQ4 2016
Host Hotels & Resorts IncHST US10:00Q4 2016 Earnings CallQ4 2016
Newmont Mining CorpNEM US10:00Q4 2016 Earnings CallQ4 2016
Welltower IncHCN US10:00Q4 2016 Earnings CallQ4 2016
FirstEnergy CorpFE US10:00Q4 2016 Earnings CallQ4 2016
Garmin LtdGRMN US10:30Q4 2016 Earnings CallQ4 2016
TJX Cos Inc/TheTJX US11:00Q4 2017 Earnings CallQ4 2017
Newfield Exploration CoNFX US11:00Q4 2016 Earnings CallQ4 2016
Southern Co/TheSO US13:00Q4 2016 Earnings CallQ4 2016
Extra Space Storage IncEXR US13:00Q4 2016 Earnings CallQ4 2016
HP IncHPQ US17:00Q1 2017 Earnings CallQ1 2017
HP IncHPQ USAft-mktQ1 2017 Earnings ReleaseQ1 20170.369
L Brands IncLB USAft-mktQ4 2017 Earnings ReleaseQ4 20171.897
Public StoragePSA USAft-mktQ4 2016 Earnings ReleaseQ4 20162.646
Range Resources CorpRRC USAft-mktQ4 2016 Earnings ReleaseQ4 20160.094
Transocean LtdRIG USAft-mktQ4 2016 Earnings ReleaseQ4 20160.05
Realty Income CorpO USAft-mktQ4 2016 Earnings ReleaseQ4 20160.75
Deere & CoDE USAnnual General Meeting
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Friday, January 8, 2016

MORNING CALL 1/8

MORNING CALL
OVERNIGHT MARKETS AND NEWS
March E-mini S&Ps (ESH16 +0.75%) are up +0.32% as global stocks attempt to recover after China took steps to alleviate market stress. The PBOC set a higher reference rate for the yuan today, the first time it has done so in the last nine sessions, which strengthened the yuan against the dollar. U.S. stocks fell back from their best levels after crude oil erased an overnight rally and is now lower by -0.27%. European stocks are down -0.55% after German Nov industrial production unexpectedly declined. Asian stocks settled mixed: Japan -0.39%, Hong Kong +0.59%, China +1.97%, Taiwan +0.53%, Australia -0.39%, Singapore +0.78%, South Korea +0.75%, India +0.33%. China's Shanghai Composite rebounded from a 3-1/4 month low and closed higher after the government suspended a circuit-breaker system that had halted Chinese equity trading on Monday and Thursday when stock losses reached -7%. Chinese stocks also found support on signs that state-controlled funds were said to be buying equities.
The dollar index (DXY00 +0.54%) is up +0.50%. EUR/USD (^EURUSD) is down -0.56%. USD/JPY (^USDJPY) is up +0.53%.
Mar T-note prices (ZNH16 -0.17%) are down -6 ticks.
ECB Governing Council member Lane said "no door has been closed" in relation to QE, even as there's "plenty of evidence" that the ECB's sovereign-debt purchase program is working.
German Nov industrial production of -0.3% m/m and +0.1% y/y was weaker than expectations of +0.5% m/m and +0.5% y/y.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) Dec non-farm payrolls (expected +200,000, Nov +211,000) and Dec unemployment rate (expected unch at 5.0%, Nov unch at 5.0%), (2) Nov wholesale trade sales (expected unch m/m, Oct unch m/m) and Nov wholesale inventories (expected -0.1% m/m, Oct -0.1% m/m), (3) San Francisco Fed President John Williams' speech on the economic outlook to the California Association of Bankers in Santa Barbara, CA, (4) Richmond Fed President Jeffrey Lacker's comments on his 2016 economic outlook to the Maryland Bankers Association, and (5) Nov consumer credit (expected +$18.5 billion, Oct +$15.982 billion).
There are 2 of the Russell 3000 companies that report earnings today: Acuity Brands (consensus $1.58), Global Payments (0.75).
U.S. IPO's scheduled to price today: none.
Equity conferences today: none.







OVERNIGHT U.S. STOCK MOVERS
Foot Locker (FL -1.21%) was upgraded to 'Buy' from 'Neutral' at Bank of America.
Dupont (DD -2.97%) was upgraded to 'Outperform' from Market Perform' at Bernstein who also raised their price target on the stock to $81 from $71.
Williams-Sonoma (WSM +1.47%) was downgraded to 'Neutral' from 'Buy' at Buckingham Research Group.
Five Below (FIVE -0.18%) gained over 2% in after-hours trading after it raised guidance on Q4 sales to $323 million-$326 million from a December outlook of $318 million-$323 million, above estimates of $320 million.
Helen of Troy (HELE -1.34%) climbed over 3% in after-hours trading after it reported Q3 adjusted EPS of $2.07, higher than consensus of $1.93.
Freeport-McMoRan (FCX -9.08%) was downgraded to 'Neutral' from 'Outperform' at Macquarie.
Synnex (SNX -2.15%) reported Q4 adjusted EPS of $1.80, stronger than consensus of $1.75, but then lowered guidance on Q1 adjusted EPS to $1.34-$1.39, below consensus of $1.54.
The Gap (GPS +5.73%) slipped over 6% in after-hours trading after it reported December comparable same-store-sales fell -5.0% y/y, a bigger decline than expectations of -3.9% y/y.
Container Store Group (TCS -5.15%) slumped over 10% in after-hours trading after it reported an unexpected Q3 adjusted EPS loss of -4 cents, weaker than consensus of a 5 cent profit, and then lowered guidance on Q4 EPS to 19 cents-22 cents, well below consensus of 29 cents.
Alcoa (AA -3.95%) said it will close an aluminum smelter in Evansville, IN and curtail capacity at its Point Comfort, TX refinery to increase the competitiveness of its upstream business.
Suppliers of Apple products fell in after-hours trading with Skyworks Solutions (SWKS -2.88%) and Invensense (INVN -0.32%) down 3%, Avago Technologies (AVGO -3.18%) down 5%, and NXP Semiconductors (NXPI -5.41%) and Broadcom (BRCM -1.57%) both down 2% after Cirrus Logic and Qorvo blamed weakness in mobile products for their slowdown in revenue growth.
Cirrus Logic (CRUS unch) tumbled over 8% in after-hours trading after it reported Q3 preliminary revenue of $347 million, below consensus of $386 million.
Qorvo (QRVO +2.29%) lowered guidance on Q3 revenue to $629 million from a prior estimate of $720 million-$730 million, well below consensus of $723.8 million.
MARKET COMMENTS
Mar E-mini S&Ps (ESH16 +0.75%) this morning are up +6.25 points (+0.32%). Thursday's closes: S&P 500 -2.37%, Dow Jones -2.32%, Nasdaq -3.11%. The S&P 500 on Thursday sank to a 3-month low and closed sharply lower on carry-over weakness from the -7% plunge in the Chinese stock market, the Chinese government's eighth day of devaluing the yuan, and weakness in energy and raw-material producers after crude oil fell to a 12-year low and copper slumped to a 6-1/2 year low. Stocks recovered from their worst levels on speculation Chinese markets may stabilize after China's regulator suspended circuit breakers that had halted stock trading in China twice this week once losses reached 7%.
Mar 10-year T-notes (ZNH16 -0.17%)this morning are down -6 ticks. Thursday's closes: TYH6 +8.00, FVH6 +6.75. Mar-T-notes on Thursday climbed to a 2-month high on (1) increased safe-haven demand with the sharp sell-off in global equity markets, and (2) speculation that the financial turmoil in China will delay the Fed's next rate hike. T-notes fell back from their best levels as stocks recovered from their lows on speculation Chinese stock markets may stabilize after China's regulator suspended a circuit breaker that had halted stock trading twice this week.
The dollar index (DXY00 +0.54%) this morning is up +0.494 (+0.50%). EUR/USD (^EURUSD) is down -0.0061 (-0.56%). USD/JPY (^USDJPY) is up +0.62 (+0.53%). Thursday's closes: Dollar Index -0.962 (-0.97%), EUR/USD +0.0151 (+1.40%), USD/JPY -0.80 (-0.68%). The dollar index on Thursday closed lower on speculation that this week's sell-off in global equity markets may prompt the Fed to delay the next interest rate increase. In addition, USD/JPY fell to a 4-1/2 month low as the sell-off in global equity markets boosted the safe-haven demand for the yen.
Feb crude oil (CLG16 +0.72%) this morning is down -9 cents (-0.27%) and Feb gasoline (RBG16 +0.35%) is down -0.0067 (-0.58%). Thursday's closes: CLG6 -0.71 (-2.09%), RBG6 -0.0122 (-1.05%). Feb crude oil and gasoline on Thursday closed lower with Feb crude at a 12-year nearest-futures low and Feb gasoline at a 6-3/4 year low. Energy prices were undercut by the slump in global stock markets and by negative carryover from Wednesday’s EIA inventory report that showed a +917,000 bbl increase in crude supplies at Cushing to a record high of 63.91 million bbl and a +10.58 million bbl surge in weekly EIA gasoline inventories to a 9-1/2 month high. Prices recovered from their worst levels on as the dollar moved lower.
GLOBAL EVENT CALENDAR01/08/2016
US0830 ETDec non-farm payrolls expected +200,000, Nov +211,000. Dec private payrolls expected +200,000, Nov +197,000. Dec manufacturing payrolls expected unch, Nov -1,000. Dec unemployment rate expected unch at 5.0%, Nov unch at 5.0%.
0830 ETDec avg hourly earnings expected +0.2% m/m and +2.8% y/y, Nov +0.2% m/m and +2.3% y/y. Dec avg weekly hours all employees expected unch at 34.5 hours.
1000 ETNov wholesale trade sales expected unch m/m, Oct unch m/m. Nov wholesale inventories expected -0.1% m/m, Oct -0.1% m/m.
1130 ETSan Francisco Fed President John Williams speaks on the economic outlook to the California Association of Bankers in Santa Barbara, CA.
1300 ETRichmond Fed President Jeffrey Lacker delivers his 2016 economic outlook to the Maryland Bankers Association.
1500 ETNov consumer credit expected +$18.5 billion, Oct +$15.982 billion.
JPN0000 ETJapan Nov leading index CI expected -0.3 to 103.9, Oct 104.2. Nov coincident index expected -1.6 to 111.6, Oct 113.3.
GER0200 ETGerman Nov industrial production expected +0.5% m/m and +0.5% y/y, Oct +0.2% m/m and unch y/y.
0200 ETGerman Nov trade balance expected +20.2 billion euros, Oct +22.3 billion euros. Nov exports expected +0.5% m/m, Oct -1.3% m/m. Nov imports expected +1.0% m/m, Oct -3.3% m/m.
CHI2030 ETChina Dec CPI expected +1.6% y/y, Nov +1.5% y/y. Dec PPI expected -5.8% y/y, Nov -5.9% y/y.
U.S. STOCK CALENDAR01/08/2016
CompanyTickerTimeEvent DescriptionPeriodEstimate
Acuity Brands IncAYI USBef-mktQ1 2016 Earnings ReleaseQ1 20161.578
Global Payments IncGPN US7:00Q2 2016 Earnings ReleaseQ2 20160.753
WP Glimcher IncWPG US9:00Analyst & Investor DayY 2016
SolarWinds IncSWI US9:30Special Meeting - M&A Vote
Acuity Brands IncAYI US10:00Q1 2016 Earnings CallQ1 2016


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Monday, December 15, 2014

BARCHART MORNING CALL 12/15

BARCHART MORNING CALL

OVERNIGHT MARKETS AND NEWS
March E-mini S&Ps (ESH15 +0.72%) this morning are up +0.80% and European stocks are up +0.46% as energy producers gained after the price of crude oil rebounded from a 5-1/2 year low. An increase in M&A activity is also pushing stock prices higher as PetSmart jumped nearly 6% in premarket trading after it agreed to be purchased by a group led by BC Partners for $8.3 billion. The Russian ruble plunged to yet another record low of 59.7684 per dollar on concern that sinking oil prices and economic sanctions against Russia may tip the Russian economy into recession. Asian stocks closed mostly lower: Japan -1.57%, Hong Kong -0.95%, China +0.75%, Taiwan -0.46%, Australia -0.64%, Singapore -0.90%, South Korea -0.07%, India -0.11%. Japanese stocks fell after Japan's quarterly Tankan business conditions index for large manufacturers unexpectedly fell, while Chinese stocks rose, led by a rally in construction and railway companies, on speculation the government will take more steps to support growth. Commodity prices are mixed. Jan crude oil (CLF15 +0.81%) is up +0.61% and rebounded from a fresh 5-1/2 year low after Libya's National Oil Corp. declared force majeure at the ports of Es Sider and Ras Lanuf with a combined capacity of 560,000 bpd after clashes with rebels at the oil ports forced their closure. Jan gasoline (RBF15 +1.19%) is up +1.03%. Feb gold (GCG15 -0.78%) is down -0.89%. Mar copper (HGH15 +0.09%) is up +0.07%. Agriculture prices are mixed. The dollar index (DXY00 +0.15%) is up +0.15%. EUR/USD (^EURUSD) is down -0.24%. USD/JPY (^USDJPY) is down -0.01%. Mar T-note prices (ZNH15 -0.22%) are down -10 ticks.
The UAE energy minister said that OPEC will stand by its decision not to cut oil output even if crude prices fall as low as $40 a barrel and will wait at least three months before considering an emergency meeting.
The Japan Q4 Tankan large manufacturing business conditions unexpectedly fell to 12 from 13 in Q3, weaker than expectations of unchanged at 13.
ECB Governing Council member Nowotny said the "prospect of missing our target on price stability in the longer term" in connection with low growth would be a condition that could trigger quantitative easing.
UK Dec Rightmove house prices fell -3.3% m/m and matched the Dec 2012 decline as the biggest drop in 12 3/4 years. On an annual basis, Dec Rightmove house prices rose +7.0% y/y.
The UK Dec CBI trends total orders unexpectedly rose +2 to 5, stronger than expectations of unch at 3, Dec CBI trends selling prices unexpectedly rose +8 to 7, more than expectations of -2 to -3 and the highest in 8 months.
U.S. STOCK PREVIEW
Today’s Nov industrial production report is expected to show a strong increase of +0.7%, rebounding from October’s weak report of -0.1% m/m.  Today’s Dec Empire manufacturing index is expected to show a small +1.84 point increase to 12.00, adding to the +3.99 point increase to 10.16 seen in November.  Today’s Dec NAHB housing market index is expected to show a +1 point increase to 59, adding to November’s +4 point increase to 58.  There is only one of the Russell 1000 companies that reports earnings today:  VeriFone (consensus $0.41).  Equity conferences this week include: Macquarie Mobile Corporate Day on Tue, and Sanford C. Bernstein Technology Innovation Summit on Tue-Wed.
OVERNIGHT U.S. STOCK MOVERS
Exxon Mobil (XOM -2.91%) was upgraded to 'Market Perform' from 'Underperform' at BMO Capital.
Oracle (ORCL -1.99%) was upgraded to 'Overweight' from 'Equal Weight' at Morgan Stanley.
PG&E (PCG -1.62%) was upgraded to 'Overweight' from 'Neutral' at JPMorgan Chase.
Citigroup keeps a 'Buy' rating on Marriot (MAR -1.11%) and raises its price target on the stock to $88 from $76.
Entergy (ETR +1.78%) was upgraded to 'Neutral' from 'Sell' at Citigroup.
Darden Restaurants (DRI -0.78%) was upgraded to 'Market Perform' from 'Underperform' at Telsey Advisory.
United Parcel Service (UPS -0.57%) was downgraded to 'Hold' from 'Buy' at Deutsche Bank.
Encore Capital (ECPG -0.99%) was upgraded to 'Overweight' from 'Neutral' at Piper Jaffray.
Cirrus Logic (CRUS -0.63%) was upgraded two notches to 'Overweight' from 'Underweight' at Barclays.
Bob Evans (BOBE +0.42%) said that CEO Steve Davis will step down.
PetSmart (PETM -0.98%) is up nearly 6% in premarket trading after a group led by BC Partners agreed to buy the company for $8.3 billion.
Point72 Asset reported a 5.1% passive stake in Jones Energy (JONE -1.90%) .
Discovery Capital reported a 8.9% passive stake in Bob Evans (BOBE +0.42%) .
Fitch downgraded France's long-term foreign and local currency issuer default ratings to 'AA' from 'AA+' with a stable outlook.
MARKET COMMENTS
Mar E-mini S&Ps (ESH15 +0.72%) this morning are up +16.00 points (+0.80%). The S&P 500 index on Friday dropped to a 5-week low and closed sharply lower: S&P 500 -1.62%, Dow Jones -1.79%, Nasdaq -1.11%. Negative factors included (1) concerns about a global economic slowdown after China’s Nov industrial production and the Eurozone’s Oct industrial output reports were both weaker than expected, and (2) weakness in energy producers after crude oil slumped to a 5-1/2 year low. Stock prices briefly pared losses after the University of Michigan’s early-Dec U.S. consumer confidence rose +5.0 to 93.8, more than expectations of +0.7 to 89.5 and the highest in 8 years.
Mar 10-year T-notes (ZNH15 -0.22%) this morning are down -10 ticks. Mar 10-year T-note futures prices on Friday climbed to a 1-3/4 month high and closed higher: TYH5 +21.50, FVH5 +12.75. Bullish factors included (1) the plunge in crude oil to a 5-1/2 year low, which prompted the 10-year breakeven inflation expectations rate to tumble to a 4-1/4 year low, (2) increased safe-haven demand for Treasuries after the S&P 500 fell to a 5-week low, and (3) carry-over support from a rally in German bund prices to an all-time high.
The dollar index (DXY00 +0.15%) this morning is up +0.136 (+0.15%). EUR/USD (^EURUSD) is down -0.0030 (-0.24%). USD/JPY (^USDJPY) is down -0.01 (-0.01%). The dollar index on Friday closed lower. Closes: Dollar index -0.300 (-0.34%), EUR/USD +0.00481 (+0.39%), USD/JPY +0.101 (+0.09%). The main bearish factor was short-covering in the yen ahead of Sunday’s elections in Japan where Prime Minister Abe’s party is expected to win in a landslide, which will allow him to push ahead with his fiscal policies. The dollar rebounded from its worst levels after the University of Michigan’s early-Dec U.S. consumer confidence index unexpected rose sharply to an 8-year high.
Jan WTI crude oil (CLF15 +0.81%) this morning is up +35 cents (+0.61%) and Jan gasoline (RBF15 +1.19%) is up +0.0164 (+1.03%). Jan crude and Jan gasoline prices Friday sold off with Jan crude at a 5-1/2 year low and Jan gasoline at a 5-1/4 year low. Closes: CLF5 -2.14 (-3.57%), RBF5 -0.0271 (-1.67%). Bearish factors included (1) the IEA’s cut in its global oil demand forecast for the fourth time in five months as the IEA said 2015 global oil demand will grow by only 900,000 bpd to 93.3 million bpd, -230,000 bpd less than previously forecast, and (2) energy demand concerns in China, the world’s second-largest crude oil consumer, after the weaker-than-expected Chinese Nov industrial production report.
GLOBAL EVENT CALENDAR12/15/2014
US0830 ETDec Empire manufacturing index expected +1.84 to 12.00, Nov +3.99 to 10.16.
0915 ETNov industrial production expected +0.7%, Oct -0.1% m/m. Nov capacity utilization expected +0.5 to 79.4%, Oct -0.3 to 78.9%.
1000 ETDec NAHB housing market index expected +1 to 59, Nov +4 to 58.
1100 ETUSDA weekly grain export inspections.
UK0600 ETUK Dec CBI trends total orders expected unch at 3. Dec CBI trends selling prices expected -2 to -3, Nov -1.
CHI2045 ETChina Dec HSBC flash manufacturing PMI expected -0.2 to 49.8, Nov -0.4 to 50.0.
U.S. STOCK CALENDAR12/15/2014
CompanyTickerTimeEvent DescriptionPeriodEstimate
AGCO CorpAGCO US8:30Analyst MeetingY 2014
Honeywell International IncHON US9:00Q4 2015 Guidance CallQ4 2015
American Water Works Co IncAWK US11:00FY 2014 Analyst, Investor and ShaY 2014
Hewlett-Packard CoHPQ US12:00Business Update Call
VeriFone Systems IncPAY US16:01Q4 2014 Earnings ReleaseQ4 20140.41
Coca-Cola Co/TheKO US16:30Business Update Call
VeriFone Systems IncPAY US16:30Q4 2014 Earnings CallQ4 2014
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