Morning Call 6/21

Barchart Morning Call

Barchart.com - 1 hour ago

OVERNIGHT MARKETS AND NEWS

Sep E-mini S&Ps (ESU17 -0.17%) this morning are down -0.13% and European stocks are down -0.66% as weakness in crude oil undercuts energy stocks. Aug WTI crude oil (CLQ17 -0.09%) is down -0.07% as production gains in Libya and the U.S. offset OPEC crude production cuts and boost the global oil glut. Libya reported Tuesday that its crude production rose to a 4-year high of 902,000 bpd, while Baker Hughes reported that U.S. oil drillers have added rigs to oil fields for 22 consecutive weeks, the longest run in 30-years. Crude oil prices slipped despite Tuesday's afternoon's data from API that showed U.S. crude supplies fell -2.72 million bbl last week. Asian stocks settled mixed: Japan -0.45%, Hong Kong -0.57%, China +0.52%, Taiwan +0.24%, Australia -1.59%, Singapore -0.9%, South Korea -0.58%, India -0.04%. China's Shanghai Composite climbed to a 1-week high after MSCI said it will add 222 China A-shares to its developing-market index starting in May 2018.

The dollar index (DXY00 -0.14%) is down -0.12%. EUR/USD (^EURUSD) is up +0.14%. USD/JPY (^USDJPY) is down -0.10%.

Sep 10-year T-note prices (ZNU17 -0.01%) are little changed, up +0.5 of a tick.

The Japan Apr all-industry activity index rose +2.1% m/m, stronger than expectations of +1.6% m/m and the biggest increase in 8-years.

U.K. May public sector net borrowing rose +6.0 billion pounds, weaker than expectations of +7.0 billion pounds.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly MBA mortgage applications (previous +2.8% with purchase sub-index -2.8% and refi sub-index +9.2%), (2) May existing home sales (expected -0.4% to 5.55 million, Apr -2.3% to 5.57 million), (3) EIA Weekly Petroleum Status Report.

Notable Russell 2000 earnings reports today include: Oracle (consensus $0.78), CarMax (0.98).

U.S. IPO's scheduled to price today: SG Blocks (SGBX), Mota Group (MOTA), Safety Income and Growth (SAFE).

Equity conferences this week: 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

Marathon Oil (MRO -3.44%) was downgraded to 'Equal-Weight' from 'Overweight' at Morgan Stanley.

PayPal (PYPL -0.77%) rose almost 1% in pre-market trading after it was upgraded to 'Overweight' from 'Sector-Weight' at Pacific Crest Securities

FedEx (FDX -0.95%) gained almost 2% in after-hours trading after it reported Q4 adjusted EPS of $4.25, higher than consensus of $3.88.

Adobe Systems (ADBE +0.40%) climbed over 3% in pre-market trading after it reported Q2 adjusted EPS of $1.02, better than expectations of 95 cents.

Red Hat (RHT -0.43%) rallied 11% in pre-market trading after it reported Q1 revenue of $677 million, above consensus of $648 million, and then raised guidance on full-year revenue to $2.79 billion-$2.83 billion from a prior view of $2.72 billion-$2.76 billion.

Delphi Automotive PLC (DLPH -2.52%) was rated a new 'Buy' at Guggenheim with a price target of $104.

Xylem (XYL -0.54%) was initiated with an 'Outperfom' rating at BMO Capital Markets with as 12-month target price of $60.

Goodyear Tire & Rubber (GT -1.34%) was rated a new 'Buy' at Guggenheim with a price target of $39.

Korn/Ferry International (KFY -0.27%) rose 2% in after-hours trading after it reported Q4 adjusted EPS of 62 cents, better than consensus of 60 cents.

Teladoc (TDOC -8.80%) slipped nearly 3% in after-hours trading after it announced a proposed offering of $200 million of convertible senior notes due 2022.

Novo Nordisk A/S (NVO -1.17%) gained almost 1% in after-hours trading after an FDA advisory panel backed Novo's claim that its Victoza drug cuts heart risks in type 2 diabetics.

La-Z-Boy (LZB -3.85%) jumped nearly 10% in after-hours trading after it reported Q4 EPS of 57 cents, well above consensus of 46 cents.

Advanced Micro Devices (AMD +5.95%) gained almost 2% in after-hours trading after Microsoft and Baidu said they have committed to using AMD's new Epyc server chip in their data centers.

Sangamo Therapeutics (SGMO +3.14%) dropped over 8% in after-hours trading after it announced that it had commenced an underwritten public offering of $60 million in shares of its common stock.

MARKET COMMENTS

Sep E-mini S&Ps (ESU17 -0.17%) this morning are down -3.25 points (-0.13%). Tuesday's closes: S&P 500 -0.67%, Dow Jones -0.29%, Nasdaq -0.80%. The S&P 500 on Tuesday closed lower on a sell-off in energy stocks after crude oil prices tumbled -2.41% to a 7-month low and on weakness in mining stocks after copper prices fell -1.35% and gold prices slid -0.26% to a 1-month low.

Sep 10-year T-notes (ZNU17 -0.01%) this morning are up +0.5 of a tick. Tuesday's closes: TYU7 +9.50, FVU7 +5.00. Sep 10-year T-notes on Tuesday closed higher on dovish comments from Chicago Fed President Evans who said the Fed can go until December to see if inflation picks up before it decides to raise interest rates again. T-note prices were also supported by the plunge in crude oil prices to a 7-month low which reduced inflation expectations as the 10-year T-note breakeven inflation rate dropped to an 8-month low.

The dollar index (DXY00 -0.14%) this morning is down -0.113 (-0.12%). EUR/USD (^EURUSD) is up +0.0016 (+0.14%) and USD/JPY (^USDJPY) is down -0.11 (-0.10%). Tuesday's closes: Dollar index +0.212 (+0.22%), EUR/USD -0.0015 (-0.13%), USD/JPY -0.08 (-0.07%). The dollar index on Tuesday climbed to a 1-month high and closed higher on weakness in GBP/USD which tumbled to a 1-month low after comments from BOE Governor Carney quashed speculation the BOE will hike rates soon when he said that now is not the time to raise rates because of still-weak wage pressures and uncertainties over Brexit. There was also weakness in EUR/USD which dropped to a 3-week low after weaker-than-expected German May PPI bolstered the case for the ECB to maintain its QE program.

Aug WTI crude oil prices (CLQ17 -0.09%) this morning are down -3 cents (-0.07%) and Aug gasoline (RBQ17 +0.16%) is +0.0003 (+0.02%). Tuesday's closes: Aug crude -1.07 (-2.41%), Aug gasoline -0.0258 (-1.79%). Aug crude oil and gasoline on Tuesday closed lower with Aug crude at a 7-month low. Crude oil prices were undercut by the rally in the dollar index to a 1-month high and by concern that rising Libyan crude production will add to a global crude supply glut after an official at the Libyan National Oil Corp. said that Libyan oil output has now risen to 902,000 bpd, a 4-year high.

GLOBAL EVENT CALENDAR06/21/2017

		Wednesday, June 21
US	0700 ET	Weekly MBA mortgage applications, previous +2.8% with purchase sub-index -2.8% and refi sub-index +9.2%.
	1000 ET	May existing home sales expected -0.4% to 5.55 million, Apr -2.3% to 5.57 million.
	1030 ET	EIA Weekly Petroleum Status Report.
		Thursday, June 22
US	0830 ET	Weekly initial unemployment claims expected +3,000 to 240,000, previous -8,000 to 237,000. Weekly continuing claims expected -7,000 to 1.928 million, previous +6,000 to 1.935 million.
	0830 ET	USDA weekly Export Sales.
	0900 ET	FHFA Apr house price index expected +0.5% m/m, May +0.6% m/m.
	1000 ET	Fed Governor Jerome Powell speaks at a hearing of the Senate Banking Committee on fostering economic growth.
	1000 ET	May leading indicators expected +0.3%, Apr +0.3%.
	1100 ET	Jun Kansas City Fed manufacturing activity expected +2 to 10, May +1 to 8.
	1100 ET	Treasury announces amount of 2-year T-notes (previous $26 billion), 2-year floating-rate notes (previous $13 billion), 5-year T-notes (previous $34 billion) and 7-year T-notes (previous $28 billion) to be auctioned Jun 26-28.
	1300 ET	Treasury auctions $5 billion of 30-year TIPS.
	1500 ET	USDA May Cold Storage.

U.S. STOCK CALENDAR06/21/2017

Company	Ticker	Time	Event Description	Period	Estimate
CarMax Inc	KMX US	07:00	Q1 2018 Earnings Release	Q1 18	0.978
Allied World Assurance Co Holdings AG	AWH US	08:00	Annual General Meeting
Cigna Corp	CI US	08:30	Investor Day
CarMax Inc	KMX US	09:00	Q1 2018 Earnings Call	Q1 18
FleetCor Technologies Inc	FLT US	10:00	Annual General Meeting
QIAGEN NV	QGEN US		Annual General Meeting
Antero Resources Corp	AR US		Annual General Meeting
IAC/InterActiveCorp	IAC US		Annual General Meeting
Equifax Inc	EFX US		Investor Meeting
Veeva Systems Inc	VEEV US	15:00	Annual General Meeting
Oracle Corp	ORCL US	Aft-mkt	Q4 2017 Earnings Release	Q4 17	0.784
Oracle Corp	ORCL US	17:00	Q4 2017 Earnings Call	Q4 17

Morning Call 6/15

Barchart Morning Call

Barchart.com - 1 hour ago

OVERNIGHT MARKETS AND NEWS

Sep E-mini S&Ps (ESU17 -0.65%) this morning are down -0.62% and European stocks are down -1.13% at a 1-1/2 month low. U.S. stock indexes retreated after people familiar with the story said that the special counsel investigating Russia's interference in the 2016 election plans to interview two top U.S. intelligence officials about whether President Trump sought their help to get the FBI to end the probe of former NSA Adviser Flynn. European stocks dropped on weakness in mining companies, energy stocks and commodity producers as Jul WTI crude oil (CLN17 -0.65%) slid -0.31% to a 1-1/4 month low, Aug COMEX gold (GCQ17 -1.43%) fell -1.21% to a 2-1/2 week low and Jul COMEX copper (HGN17 -0.35%) dropped -0.21% to a 1-week low. Asian stocks settled mostly lower: Japan -0.26%, Hong Kong -1.20%, China +0.06%, Taiwan +0.16%, Australia -1.21%, Singapore -0.66%, South Korea -0.41%, India -0.26%. Japan's Nikkei Stock Index sold-off to a 2-week low after Wednesday's plunge in USD/JPY to a 1-3/4 month low undercut Japanese exporter stocks.

The dollar index (DXY00 +0.36%) is up +0.35%. EUR/USD (^EURUSD) is down -0.46% at a 2-week low. USD/JPY (^USDJPY) is up +0.16%.

Sep 10-year T-note prices (ZNU17 -0.12%) are down -2 ticks.

The BOE as expected kept its benchmark rate unchanged at 0.25% with a 5-3 vote, the most dissenters since 2011, and maintained its asset purchase target at 435 billion pounds. BOE policy makers said that with the pound's recent decline, inflation could overshoot the central bank's 2% target by more than previously thought.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly initial unemployment claims (expected -4,000 to 241,000, previous -10,000 to 245,000) and continuing claims (expected +3,000 to 1.920 million, previous -2,000 to 1.917 million), (2) Jun Empire manufacturing index (expected +6.0 to 5.0, May -6.2 to -1.0), (3) Jun Philadelphia Fed business outlook index (expected -13.8 to 25.0, May +16.8 to 38.8), (4) May import price index (expected -0.1% m/m, Apr +0.5% and +0.4% ex petroleum), (5) May industrial production (expected +0.2%, Apr +1.0%), (6) Jun NAHB housing market index (expected unch at 70, May +2 to 70), (7) USDA weekly Export Sales.

Notable Russell 2000 earnings reports today include: Kroger (consensus $0.58).

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

Equity conferences: William Blair & Company Growth Stock Conference on Tue-Thu, Deutsche Bank dbAccess Global Consumer Conference on Tue-Thu, Golddman Sachs European Payment Conference on Tue-Thu, Goldman Sachs Global Health Care Conference on Tue-Thu, Drexel Hamilton Aerospace & Defense Conference on Thu, Stifel, Nicolaus & Co Industrials Conference on Thu, NASDAQ Investor Program on Thu.

OVERNIGHT U.S. STOCK MOVERS

Alphabet (GOOGL -0.26%) was downgraded to 'Hold' from 'Buy' at Canaccord Genuity.

TransMontaigne Partners LP (TLP -2.25%) was upgraded to 'Buy' from 'Neutral at D.A. Davidson with a price target of $51.

Mattel (MAT -2.21%) was downgraded to 'Neutral' from 'Buy' at D.A. Davidson.

Delphi Automotive (DLPH -0.80%) was initiated with a recommendation of 'Outperform' by Raymond James with a 12-month target price of $95.

U.S. Silica (SLCA -7.04%) was initiated with a 'Buy' rating at Janney Montgomery Scott LLC with a 12-month target price of $51.

Lantheus Holdings (LNTH +1.88%) slid 5% in after-hours trading after it announced a public secondary offering by selling stockholders of 3.0 million shares of its common stock.

Jabil (JBL -0.71%) climbed nearly 4% in after-hours trading after it reported Q3 core EPS of 31 cents, better than consensus of 29 cents, and said it sees 2018 core EPS of $2.60, higher than consensus of $2.43.

Lakeland Industries (LAKE +0.77%) jumped over 10% in after-hours trading after it reported Q1 EPS of 23 cents, well above consensus of 16 cents.

Smart Sand (SND -5.81%) was initiated with a 'Buy' rating at Janney Montgomery Scott LLC with a 12-month target price of $13.

Five Oaks Investment Corp. (OAKS -2.03%) dropped 5% in after-hours trading after it announced that it had commenced an underwritten public offering of 4.0 million shares of its common stock.

Pacific Biosciences of California (PACB -3.19%) tumbled 8% in after-hours trading after it announced that it intends to offer shares of its common stock in an underwritten public offering, although no size was given.

MARKET COMMENTS

Sep E-mini S&Ps (ESU17 -0.65%) this morning are down -15.00 points (-0.62%). Wednesday's closes: S&P 500 -0.10%, Dow Jones +0.22%, Nasdaq -0.43%. The S&P 500 on Wednesday closed lower on unexpected weakness in U.S. May retail sales which fell -0.3% and -0.3% ex autos (weaker than expectations of unch and +0.1% ex autos) and on weakness in energy stocks after crude oil prices tumbled -3.72% to a 1-1/4 month low. There was also renewed selling in technology stocks.

Sep 10-year T-notes (ZNU17 -0.12%) this morning are down -2 ticks. Wednesday's closes: TYU7 +17.50, FVU7 +8.00. Sep 10-year T-notes on Wednesday rallied to a contract high and the 10-year T-note yield fell to a 7-month low. T-note prices were boosted by weaker-than-expected U.S. economic data on May CPI and May retail sales and weaker inflation expectations after the 10-year T-note breakeven inflation rate fell to a 7-month low. The T-note market took in stride the Fed's balance sheet roll-off plan, which will start off at $10 billion per month.

The dollar index (DXY00 +0.36%) this morning is up +0.241 (+0.35%). EUR/USD (^EURUSD) is down -0.0052 (-0.46%) at a 2-week low and USD/JPY (^USDJPY) is up +0.18 (+0.16%). Wednesday's closes: Dollar index -0.061 (-0.06%), EUR/USD +0.0007 (+0.06%), USD/JPY -0.49 (-0.45%). The dollar index on Wednesday dropped to a 7-month low and closed lower on the softer-than-expected U.S. May retail sales and CPI reports and strength in EUR/USD which climbed to a 7-month high on signs of strength in the European economy after Eurozone Q1 employment rose +1.5% y/y, the largest year-on-year increase in 9 years.

Jul WTI crude oil prices (CLN17 -0.65%) this morning are down -14 cents (-0.31%) at a 1-1/4 month low and July gasoline (RBN17 -1.12%) is -0.0108 (-0.75%). Wednesday's closes: Jul crude -1.73 (-3.72%), Jul gasoline -0.0668 (-4.45%). Jul crude oil and gasoline on Wednesday sold off with Jul crude at a 1-1/4 month low and Jul gasoline at a 6-1/2 month low. Crude oil prices were undercut by the -1.66 million bbl decline in EIA crude inventories (vs expectations of -2.4 million bbl) and by the unexpected +2.1 million bbl increase in EIA gasoline stockpiles (vs expectations for a -1.15 million bbl decline).

GLOBAL EVENT CALENDAR06/15/2017

		Thursday, June 15
US	0830 ET	Weekly initial unemployment claims expected -4,000 to 241,000, previous -10,000 to 245,000. Weekly continuing claims expected +6,000 to 1.923 million, previous -2,000 to 1.917 million.
	0830 ET	Jun Empire manufacturing survey general business conditions expected +6.0 to 5.0, May -6.2 to -1.0.
	0830 ET	Jun Philadelphia Fed business outlook survey expected -13.8 to 25.0, May +16.8 to 38.8.
	0830 ET	May import price index expected -0.1% m/m, Apr +0.5% and +0.4% ex petroleum.
	0830 ET	USDA weekly Export Sales.
	0915 ET	May industrial production expected +0.2%, Apr +1.0%. May manufacturing production expected +0.1%, Apr +1.0%. May capacity utilization expected +0.1 to 76.8%, Apr +0.5 to 76.7%.
	1000 ET	Jun NAHB housing market index expected unch at 70, May +2 to 70.
	1100 ET	Treasury announces amount of 30-year TIPS to be auctioned Jun 22 (previous $7 billion).
		Friday, June 16
US	0830 ET	May housing starts expected +3.9% to 1.218 million, Apr -2.6% to 1.172 million. May building permits expected +1.7% to 1.249 million, Apr -2.5% to 1.228 million.
	1000 ET	Prelim-Jun University of Michigan U.S. consumer sentiment expected -0.1 to 97.0, May +0.1 to 97.1.
	1245 ET	Dallas Fed President Robert Kaplan (voter) speaks to the Park Cities Rotary Club.

U.S. STOCK CALENDAR06/15/2017

Company	Ticker	Time	Event Description	Period	Estimate
Weatherford International PLC	WFT US	04:00	Annual General Meeting
Kroger Co/The	KR US	Bef-mkt	Q1 2018 Earnings Release	Q1 18	0.575
Hormel Foods Corp	HRL US	08:25	Investor Day
Michaels Cos Inc/The	MIK US	08:30	Investor Conference
PVH Corp	PVH US	08:45	Annual General Meeting
Equity Residential	EQR US	09:00	Annual General Meeting
Kroger Co/The	KR US	10:00	Q1 2018 Earnings Call	Q1 18
WP Carey Inc	WPC US		Annual General Meeting
Juno Therapeutics Inc	JUNO US		Annual General Meeting
Hospitality Properties Trust	HPT US		Annual General Meeting
Yelp Inc	YELP US		Annual General Meeting
Marvell Technology Group Ltd	MRVL US		Annual General Meeting
OPKO Health Inc	OPK US		Annual General Meeting
Gaming and Leisure Properties Inc	GLPI US		Annual General Meeting
Dollar Tree Inc	DLTR US		Annual General Meeting
Time Warner Inc	TWX US	12:30	Annual General Meeting
Principal Financial Group Inc	PFG US	12:30	Roadshow