Barchart Moring Call 8/29

Barchart Morning Call

BC - Thu Aug 29, 6:44AM CDT

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OVERNIGHT MARKETS AND NEWS

September E-mini S&Ps (ESU13 +0.31%) this morning are up +0.11% and European stocks are little changed, down -0.02%. Asian stocks closed mostly higher: Japan +0.91%, Hong Kong +0.84%, China -0.42%, Taiwan +1.19%, Australia +0.10%, Singapore +1.13%, South Korea +1.30%, India +2.25%. Stocks received a lift and gold and crude oil prices fell after the prospects for imminent military strikes by the U.S. and its allies against Syria receded. The UK and France said that they favor waiting for the results of a UN investigation into alleged Syrian use of chemical weapons, while U.S. Defense Secretary Hagel said the U.S., which has evidence that the Syrian government was responsible for the chemical attacks, won't act without allies. Commodity prices are mostly lower. Oct crude oil (CLV13 -0.73%) is down -0.68% and Oct gasoline (RBV13 -0.81%) is down -0.25%. Dec gold (GCZ13 -0.50%) is down -0.49% and Sep copper (HGU13 -0.30%) is up +0.03%. Agricultural and livestock prices are mostly lower. The dollar index (DXY00 +0.50%) is up +0.53% at a 2-week high on expectations for U.S. Q2 GDP to be revised higher later this morning. EUR/USD (^EURUSD) is down -0.62% at a 2-week low after German unemployment unexpectedly increased. USD/JPY (^USDJPY) is up +0.51%. India's rupee rallied over 2% as it rebounded from a record low after the Reserve Bank of India said it will supply dollars to the country's top oil importers via foreign-exchange swaps in an attempt to cool demand for foreign exchange. The rupee fell to a record low against the dollar Wednesday on concern a surge in oil prices will worsen India's current account deficit at a time when the prospect of a cut in U.S. stimulus was already fueling capital outflows from India. September T-note prices (ZNU13 -0.06%) are little changed, up +0.5 of a tick.
German Aug unemployment unexpectedly rose by +7,000, the first increase in 3-months and worse than expectations of a -5,000 decline, while the Aug unemployment rate remained unchanged at 6.8%, right on expectations.
ECB Council member Nowotny, speaking at an event in Austria today, said that the fact that the Eurozone has returned to growth and that markets "are starting to work again" is no reason for the ECB to end its accommodative policy stance as "there are still very low growth rates and uncertainty is still high."
Japan July retail sales fell-1.8% m/m and -0.3% y/y, weaker than expectations of -1.0% m/m and +0.1% y/y, with the -1.8% m/m drop the biggest monthly decline in 2-years.

U.S. STOCK PREVIEW

Today’s initial unemployment claims report is expected to show a decline of -4,000 to 332,000, reversing part of last week’s increase of +13,000 to 336,000. Continuing claims are expected to fall -11,000 to 2.988 million, reversing part of last week’s increase of +29,000 to 2.999 million. There are 7 of the Russell 1000 companies that report earnings today: Campbell Soup (consensus $0.42), Golar LNG (0.20), Signet Jewelers (0.83), Pall Corp (0.89), Salesforce.com (0.07), Splunk (-0.03), Chimera Investment Corp (0.09). Equity conferences during the remainder of this week include Simmons European Energy Conference on Wed-Thu, Robert W. Baird & Co. Consumer Corporate Access Day on Thu, and 6th International Financial and Capital Markets Conference on Thu.

OVERNIGHT U.S. STOCK MOVERS

Citigroup group keeps its "Buy" rating on Harley-Davidson (HOG +0.59%) and said the company's new motorcycles for 2014 should accelerate sales growth.
Signet Jewelers (SIG +2.98%) reported Q2 EPS ex-items of 90 cents, better than consensus of 83 cents.
Mohawk (MHK -1.51%) was upgraded to "Strong Buy" from "Outperform" at Raymond James.
AMC Networks (AMCX -0.57%) was upgraded to "Buy" from "Neutral" at B. Riley.
Pall Corp. (PLL +0.55%) reported Q4 EPS of 90 cents, better than consensus of 89 cents.
Campbell Soup (CPB -0.80%) reported Q4 EPS of 45 cents, stronger than consensus of 42 cents.
Shanda Games (GAME +3.88%) reported Q2 adjusted EPS of 24 cents, better than consensus of 20 cents.
The Fresh Market (TFM -0.09%) reported Q2 EPS of 32 cents, right on consensus, but lowered guidance on fiscal 2013 EPS to $1.50-$1.55, below consensus of $1.59.
Guess (GES +0.29%) surged 17% in after-hours trading after it reported Q2 adjusted EPS of 52 cents, well ahead of consensus of 36 cents.
S.A.C. Capital reported a 5.1% passive stake in Diamond Foods (DMND +0.92%) .

MARKET COMMENTS

Sep E-mini S&Ps (ESU13 +0.31%) this morning are up +1.75 points (+0.11%). The S&P 500 index on Wednesday closed higher after a surge in crude oil to a 2-year high fueled a rally in energy companies. Stocks were undercut by an impending U.S.-led military strike against Syria and the weaker-than-expected -1.3% m/m drop in U.S. July pending home sales (vs expectations of unchanged). Closes: S&P 500 +0.27%, Dow Jones +0.33%, Nasdaq 100 +0.41%.
Sep 10-year T-notes (ZNU13 -0.06%) this morning are up +0.5 of a tick. Sep 10-year T-note prices on Wednesday closed lower as safe-haven demand from the Syrian crisis was offset by supply pressures from this week’s $98 billion T-note auction package. Another negative factor for T-note prices was weak demand for the Treasury’s $35 billion auction of 5-year T-notes, which had a bid-to-cover ratio of 2.38 that was well below the 12-auction average of 2.78. Closes: TYU3 -15.00, FVU3 -7.50.
The dollar index (DXY00 +0.50%) this morning is up +0.428 (+0.53%) at a 2-week high. EUR/USD (^EURUSD) is down -0.0083 (-0.62%) at a 2-week low and USD/JPY (^USDJPY) is up +0.50 (+0.51%). The dollar index on Wednesday closed higher as the prospects of U.S. military action against Syria boosted the safe-haven demand for the dollar. The dollar also received additional safe-haven demand from a plunge in emerging-market currencies after the Indian rupee and Turkish lira fell to record lows. Closes: Dollar index +0.265 (+0.33%), EUR/USD -0.00536 (-0.40%), USD/JPY +0.613 (+0.63%).
Oct WTI crude oil (CLV13 -0.73%) this morning is down -75 cents (-0.68%) and Oct gasoline (RBV13 -0.81%) is down -0.0074 (-0.25%). Oct crude oil and gasoline prices on Wednesday rallied sharply with Oct crude soaring to a 2-year high on concern the conflict in Syria will spread and threaten crude oil supplies from the Middle East. Crude prices came off of their best levels after weekly EIA crude stockpiles climbed +2.986 million bbl, well above expectations of +750,000 bbl, and after U.S. crude production rose +1.2% to 7.609 million barrels a day in the week ended Aug 23, a new 23-3/4 year high. Closes: CLV3 +1.09 (+1.00%), RBV3 +0.0489 (+1.68%).

GLOBAL EVENT CALENDAR08/29/2013

US	0830 ET	Weekly initial unemployment claims expected -4,000 to 332,000, previous +13,000 to 336,000. Weekly continuing claims expected -11,000 to 2.988 million, previous +29,000 to 2.999 million.
	0830 ET	Revised Q2 GDP expected +2.2% (q/q annualized), previous +1.7%. Q2 personal consumption expected +1.7%, previous +1.8%. Q2 GDP price index expected unrevised at +0.7%. Q2 core PCE expected unrevised at +0.8%.
	0830 ET	USDA weekly Export Sales.
	0850 ET	St. Louis Fed President James Bullard delivers welcoming remarks at the Leadership Memphis 2014 event.
	1300 ET	Treasury auctions $29 billion 7-year T-notes.
	1400 ET	Richmond Fed President Jeffrey Lacker speaks at Christopher Newport University on A Look Back at the History of the Federal Reserve.
	1945 ET	St. Louis Fed President James Bullard will speak on the U.S. economy and monetary policy at the Community Development Foundation Center in Tupelo, MS.
GER	0355 ET	German Aug unemployment change expected -5,000, July -7,000. Aug unemployment rate expected unch at 6.8%, July 6.8%.
	0800 ET	German Aug CPI (EU harmonized) expected +0.1% m/m and +1.7% y/y, July +0.4% m/m and +1.9% y/y.
UK	0430 ET	UK Aug Lloyds business barometer, July 41.
	1905 ET	UK Aug GfK consumer confidence expected +2 to -14, July -16.
JPN	1915 ET	Japan Aug Markit/JMMA manufacturing PMI, July 50.7.
	1930 ET	Japan July overall household spending expected +0.3% y/y, Jun -0.4% y/y.
	1930 ET	Japan July jobless rate expected unch at 3.9%, Jun 3.9%. July job-to-applicant ratio expected +0.01 to 0.93, Jun 0.92.
	1930 ET	Japan July national CPI expected +0.7% y/y, Jun +0.2% y/y. July national CPI ex fresh food expected +0.6% y/y, Jun +0.4% y/y. July national CPI ex food & energy expected -0.2% y/y, Jun -0.2% y/y.
	1930 ET	Japan Aug Tokyo CPI expected +0.5% y/y, July +0.4% y/y. Aug Tokyo CPI ex fresh food expected +0.4% y/y, July +0.3% y/y. Aug Tokyo CPI ex food & energy expected -0.3% y/y, July -0.4% y/y.
	1950 ET	Japan July industrial production expected +3.6% m/m and +1.8% y/y, Jun -3.1% m/m and -4.6% y/y.

U.S. STOCK CALENDAR08/29/2013

Company Name	Ticker	Time	Event Description	Period	Estimate
Campbell Soup Co	CPB US	Bef-mkt	Q4 2013 Earnings Release	Q4 2013	0.418
Golar LNG Ltd	GLNG US	Bef-mkt	Q2 2013 Earnings Release	Q2 2013	0.201
Signet Jewelers Ltd	SIG US	6:30	Q2 2014 Earnings Release	Q2 2014	0.828
Pall Corp	PLL US	7:00	Q4 2013 Earnings Release	Q4 2013	0.886
Pall Corp	PLL US	8:30	Q4 2013 Earnings Call	Q4 2013
Signet Jewelers Ltd	SIG US	8:30	Q2 2014 Earnings Call	Q2 2014
Campbell Soup Co	CPB US	10:00	Q4 2013 Earnings Call	Q4 2013
Golar LNG Ltd	GLNG US	10:00	Q2 2013 Earnings Call	Q2 2013
Landstar System Inc	LSTR US	14:00	Q3 2013 Guidance Call	Q3 2013
AMERCO	UHAL US	14:00	Analyst and Investor Meeting	Y 2013
Splunk Inc	SPLK US	16:30	Q2 2014 Earnings Call	Q2 2014
Salesforce.com Inc	CRM US	17:00	Q2 2014 Earnings Call	Q2 2014
Salesforce.com Inc	CRM US	Aft-mkt	Q2 2014 Earnings Release	Q2 2014	0.069
Splunk Inc	SPLK US	Aft-mkt	Q2 2014 Earnings Release	Q2 2014	-0.028
AMERCO	UHAL US		Annual General Meeting
Chimera Investment Corp	CIM US		Q2 2012 Earnings Release	Q2 2012	0.093

Barchart Morning Call 8/27

Barchart Morning Call

BC - 1 hr 45 mins ago

Overnight Developments

• Sep E-mini S&Ps this morning are trading mildly higher by +0.25%, supported by the small +0.18% rally in European stocks and by the continued press by Chinese Premier Wen Jiabao for more growth measures. E-mini S&Ps have been able to shake off the disappointing German confidence report and the poor Chinese industrial profits report. Commodity prices this morning are trading up by an average +0.37% with Oct crude oil up +0.90%, Oct gasoline up +3.00%, Dec gold up +0.03%, Sep copper up +0.09%, and agricultural prices trading mixed. The dollar index is trading slightly lower by -0.04% and EUR/USD is up +0.10%. Sep 10-year T-notes are up +0.5 tick. The UK markets are closed today for a summer bank holiday.
• Asian stocks closed mostly lower on worries about weaker Asian economic growth and profits: Japan +0.16%, Hong Kong -0.41%, China -2.09%, Taiwan -0.12%, Australia -0.12%, Singapore -0.20%, South Korea -0.38%, India -0.59%, Turkey -0.19%.
• Apple won a $1 billion patent infringement court case against Samsung last Friday in a federal court in California. Apple is trading 2% higher in European trading and Samsung's stock is down 7.5% today. Nokia is up 11% since the U.S. may ban some Samsung handsets, thus boosting demand for competitive Nokia phones.
• Chicago Fed President Charles Evans said today at a speech in Hong Kong that the Fed should begin an open ended QE3 program and continue buying securities until unemployment steadily declines for two or three quarters. Mr. Evans said, "At the moment economic growth is not much above stall speed. Another negative shock could send the economy into recession. And if a recessionary dynamic takes hold, it would be especially difficult to regain momentum." Mr. Evans is not a voting FOMC this year, but he will be next year.
• Bundesbank President and ECB Council member Jens Weidmann in a Der Spiegel interview published over the weekend continued to voice his opposition to the ECB's bond buying plans. Mr. Weidmann said that ECB financing of budgets can "become addictive like a drug." Mr. Weidmann said that such decisions on government financing should be taken by "parliaments rather than central banks." French Finance Minister Pierre Moscovici meets today with German Finance Minister Wolfgang Schaeuble.
• Tropical Storm Isaac has passed the Florida keys and is now gathering strength in the warm waters of the Gulf of Mexico. The storm is expected to strengthen into a category 2 hurricane today or tomorrow and is expected to make landfall near Biloxi, Mississippi early Wednesday morning with winds of about 105 mph.
• Germany's August IFO business climate index fell 1.0 point to a 2-1/2 year low of 102.3 from 103.3 in July, which was the fourth consecutive monthly decline and was weaker than market expectations for a 0.6 point decline to 102.7.
• Year-to-date profits for China's industrial companies in July fell -2.7% y/y, gathering downside momentum after the -2.2% decline seen in June. July profits were down -5.4% y/y, worse than the -1.7% decline in June and -5.3% in May.
• China's Premier Wen Jiabao said that "Stabilizing economic growth is the key task for second-half economic work." Wen toured Guangdong as he sought to give a confidence boost to China's exporters.
  Market Comments
  • Sep E-mini S&Ps this morning are up 3.50 points (+0.25%) on the mildly higher +0.18% trade in the Euro Stoxx 50 and on support from Chinese Premier Wen Jiabao's push for additional growth measures. In addition, Chicago Fed President Evans in a speech today in Hong Kong called even more strongly for QE3 than he has before. Bearish factors for S&Ps this morning include the weaker-than-expected German IFO business confidence report, further opposition by Bundesbank President Weidmann to the ECB's bond buying plans, and a poor Chinese industrial profits report. The stock market on Friday rebounded from early losses and finished higher after Fed Chairman Bernanke said he saw "scope for further action," on additional Fed stimulus: S&P 500 +0.65%, Dow Jones +0.77%, Nasdaq 100 +0.58%. Stocks had opened lower after July durable goods orders ex-transportation unexpectedly fell -0.4% m/m, weaker than expectations of +0.5%, along with concern the European debt crisis will persist after unnamed ECB officials said the ECB may wait until after a Sep 12 German court ruling on the legality of Europe's permanent bailout fund before it implements a bond purchase program.
  • Sep 10-year T-notes this morning are up +0.5 tick as the market hopes for further hints from Fed Chairman Bernanke in his speech on Friday at the Fed's Jackson Hole conference. T-note prices on Friday erased early gains and closed lower after a rally in stocks reduced the safe-haven demand for Treasuries: TYU2 -3.5, FVU2 -2.0.
  • The dollar index this morning is slightly lower by -0.04 points (-0.04%) with EUR/USD up +0.0013 (+0.10%). USD/JPY is slightly higher by +0.02 points (+0.03%). The dollar index on Friday closed higher, although well off its best levels, after Fed Chairman Bernanke hinted at additional Fed stimulus: Dollar index +.234 (+0.29%), EUR/USD -0.00444 (-0.35%), USD/JPY +0.132 (+0.17%). The dollar had rallied Friday after a report said the ECB would put off its bond buying program until a German court rules on Europe's permanent bailout fund next month. However, dollar gains were limited on speculation the Fed may implement QE3 at next month's FOMC meeting.
  • Oct WTI crude oil prices this morning are up +0.87 (+0.90%) and Oct gasoline is up +0.0872 (+3.00%). Bullish factors include (1) news that Venezuela's Amuay refinery, the nation's largest, was forced to shut down after an explosion and fire on Saturday, and (2) Tropical Storm Isaac, which is now expected to take a more westerly direction than previously thought and cause even more disruption in the Gulf of Mexico. The storm has so far caused the shut-down of 24% of U.S. oil production and 8% of natural gas production in the Gulf of Mexico due to rig evacuations. Oct crude oil prices on Friday fluctuated on both sides of unchanged and finally settled lower after July durable goods orders ex-transportation unexpectedly declined and offset concern Tropical Storm Isaac may curtail oil production operations in the Gulf of Mexico: CLV2 -0.12 (-0.12%), RBU2 -0.0379 (-1.29%). Crude oil prices also gained as stock prices rose on increased speculation the Fed will provide additional stimulus to boost economic growth.
  • 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): TIF-Tiffany & Co. (Consensus $0.73), PVH-PVH Corp. (1.21), DCI-Donaldson (0.47), GAME-Shanda Games Ltd. (0.18), PWRD-Perfect World Co. Ltd. (0.56).
    Global Financial Calendar
    

    Monday 8/27/12
    United States
    0600 ET	Chicago Fed President Evans speaks at an MNI Seminar in Hong Kong.
    1030 ET	Dallas Fed Aug manufacturing index expected -8.0, July -13.2.
    1100 ET	USDA weekly grain export inspections.
    1130 ET	Weekly 3-mo and 6-mo T-bill auctions.
    1215 ET	Cleveland Fed President Pianalto speaks on the economic outlook and monetary policy in Newark, OH.
    1600 ET	USDA Crop Progress
    Japan
    0200 ET	Japan July machine tool orders, June -6.8% y/y.
    Germany
    0200 ET	German July import price index expected +0.9% m/m and +1.4% y/y, Jun -1.5% m/m and +1.3% y/y.
    0400 ET	German Aug IFO business climate index expected -0.6 to 1-2.7, July 103.3. Aug IFO current assessment index expected -0.8 to 110.6, July 111.6. Aug FIO expectations index expected -0.6 to 95.0, July 95.6.
    United Kingdom
    n/a	U.K. markets and government offices closed for Summer Bank Holiday.

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Barchart's Chart of the Day

Barchart Morning Call

BC - Fri Jun 01, 7:00AM CDT

Overnight Developments

• June E-mini S&Ps this morning are trading -15.00 points (-1.15%) on the much weaker-than-expected Chinese May manufacturing PMI report released last night of -2.9 to 50.4. The market is also worried about this morning's US payroll report. Commodity prices are sharply lower this morning with an average loss of -0.88%. Crude oil is down -1.90%, gold is down -0.84%, copper is down -1.01%, and agricultural commodities are mostly lower. June T-notes are up 12 ticks. The dollar index is up 0.30% and EUR/USD is down -0.29%.
• The Euro Stoxx 50 is down -1.15% this morning on the Chinese PMI report and on today's climb in the Eurozone unemployment rate to a record high of 11.0%. Asian stocks today closed lower nearly across the board: Japan -1.20%, Hong Kong -0.38%, China +0.04%, Taiwan -2.68%, Australia -0.30%, Singapore -0.97%, South Korea -0.44%, India -1.56%, Turkey -0.59%.
• The German 10-year bund yield today fell 4 bp to a new record low of 1.16% on today's sell-off in European stocks and continued flight-to-quality. Spain's 10-year yield this morning is up 1 bp at 6.57%, mildly below this week's peak of 6.66% on Wednesday. The price of Spanish credit default swaps (the cost of insuring against a Spanish sovereign default) rose by 9 bp today to a record 609 basis points.
• The Eurozone April unemployment rate was unchanged from March at 11.0%, the highest since the data series began in 1995. The report was in line with market expectations. March was revised higher to 11.0% from 10.9%. The number of unemployed persons rose by 110,000 to 17.4 million. Spain had the highest unemployment rate at 24.3%, up from 24.1% in March.
• The markets are still awaiting the results of the Irish vote on the fiscal pact, which is a constitutional balanced budget agreement. One Irish official quoted by the local media predicted the measure will win by 57% to 43% based on early counts. The final results are due to 4pm Dublin time. A "yes" vote is critical because Ireland will not be able to get another bailout from the Eurozone if that becomes necessary unless the country approves the fiscal pact.
• China's May manufacturing purchasing managers index (PMI), which was released last night, fell sharply by -2.9 points to 50.4 and was much weaker than expectations of 52.0. In addition, the PMI new orders index fell even more sharply by 4.7 points to 49.8, which was below the expansion-contraction level of 50.
  Market Comments
  • June E-mini S&Ps this morning are trading -15.00 points on last night's weak Chinese PMI report, this morning's 1.15% sell-off in European stocks, and fears of a weaker-than-expected U.S. May payroll report today. U.S. stocks on Thursday closed mildly lower: S&P 500 -0.23%, Dow Jones -0.21%, Nasdaq 100 -0.49%. U.S. stocks were hit with a raft of weak U.S. economic data that included the May ADP employment report of +133,000 (versus expectations of +150,000), the downward revision in Q1 GDP to +1.9% from +2.2% and in Q1 personal consumption to +2.7% from +2.9%, the +13,000 rise in weekly initial unemployment claims, and the sharp 3.5 point drop in the Chicago PMI index to 52.7 versus expectations for a 0.6 point rise. The stock market was also undercut by continued worries about Spain as Spanish Finance Minister Luis de Gindos said on Thursday that, "The future of the euro is going to be at play in the next weeks in Spain and Italy. I don't know if we're on the edge of a precipice, but we're in a very, very, very difficult situation."
  • June 10-year T-notes this morning are up 12 ticks and the 10-year T-note yield has fallen to a new record low of 1.534%. Safe-haven demand continues with today's sell-off in stocks. T-note prices on Wednesday closed sharply higher: TYM2 +7.5, FVM2 +1.25. The 10-year bond yield on Thursday fell to a new record low of 1.53% and closed the day at 1.56%. In addition to safe-haven demand, T-note prices yesterday received a boost from the raft of weak U.S. economic data, which not only dampened the inflation outlook but also raised the odds that the FOMC at its next meeting on June 19-20 will either extend its Operation Twist program or adopt a reserve-neutral mortgage securities purchase program.
  • The dollar index this morning is up +0.25 points (+0.30%) as safe-haven buying continues. EUR/USD is down 0.0036 (-0.29%) and USD/JPY is down 0.12 (-0.15%). The dollar index on Thursday closed slightly higher after edging to a new 1-2/3 year high: Dollar Index +0.03 (+0.03%), EUR/USD -0.0002 (-0.02%), USD/JPY -0.95 (-0.50%). EUR/USD fell to a new 2-year low on continued capital flight out of Europe. USD/JPY fell sharply by 0.95 cents to a new 3-1/2 month low as Japanese investors pulled capital back home to flee global volatility and as non-Japanese investors invested in Japan as a safe-haven. Japanese officials are not happy about the strength in the yen and are implicitly threatening forex intervention.
  • July WTI crude oil prices this morning are sharply lower by 1.64 (-1.90%) on the rally in the dollar and general commodity market weakness tied to the weak Chinese manufacturing PMI report. July gasoline this morning is sharply lower by -4.52 (-1.66%). Bloomberg reported today that OPEC production in May rose by 20,000 bpd to 31.595 million bpd, the highest level since 2008. Meanwhile, Saudi production rose by 80,000 bpd to 9.9 million bpd, the highest level since January 1989.
  • July crude oil and gasoline prices on Thursday closed sharply lower: CLN2 -1.29 (-1.47%), RBN2 -0.0512 (-1.85%). Bearish factors for crude oil prices included (1) the raft of weak U.S. economic data, (2) news that India's Q1 GDP eased to a 9-year low of +5.3% y/y, which was weaker than market expectations of +6.1% y/y and down from Q4's report of +6.1% y/y. (3) ongoing worries about the fall-out from the European debt crisis, and (4) the continued climb in U.S. crude oil inventories to a new 2-year high. Thursday's weekly DOE report showed a 2.213 million barrel (+0.6%) rise in U.S. crude oil inventories to a new 22-year high. Crude oil inventories are now 9.5% above their 5-year seasonal average, the highest such level since December 2010. Meanwhile the DOE report was bullish for the products with a 833,000 barrel decline in gasoline inventories (versus expectations of 250,000 barrel decline) and a 1.709 million barrel drop in distillate inventories (versus expectations of unchanged). Gasoline inventories are now 3.7% below their 5-year seasonal average and distillate inventories are 12.3% below average. The refinery utilization rate rose by 1 point to 89.1% where it is 1.5 points above its 5-year seasonal average.
  • For the full 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 (sorted by mkt cap): GAME-Shanda Games (consensus $0.20), CHRS-Charming Shoppes (0.19).
    Global Financial Calendar
    

    Friday 6/1/12
    United States
    0830 ET	May non-farm payrolls expected +150,000, Apr +115,000. May private payrolls expected +160,000, Apr +130,000. May manufacturing payrolls expected +16,000, Apr +16,000. May average hourly earnings expected +0.2% m/m, Apr unch m/m and +1.8% y/y. May average weekly hours expected unch at 34.5 hours. May unemployment rate expected unch at 8.1%, Apr -0.1 to 8.1%.
    0830 ET	Apr personal income expected +0.3% m/m, Mar +0.4% m/m. Apr personal spending expected +0.3% m/m, Mar +0.3% m/m. Apr PCE deflator expected +0.1% m/m and +1.9% y/y, Mar +2.1% y/y. Apr core PCE deflator expected +0.2% m/m and +2.0% y/y, Mar +0.2% m/m and +2.0% y/y.
    1000 ET	Apr construction spending expected +0.4%, Mar +0.1%.
    1000 ET	May ISM manufacturing index expected -1.0 to 53.8, Apr +1.4 to 54.8. May ISM prices paid sub-index expected -4.5 to 56.5, Apr unch at 61.0.
    1700 ET	May U.S. total vehicle sales expected 11.46 mln, May 14.38 mln. May domestic vehicle sales expected 11.20 mln, Apr 11.12 mln.
    Japan
    0100 ET	Japan May vehicle sales, Apr 92.0% y/y.
    Euro-Zone
    0400 ET	Eurozone May final manufacturing PMI expected unrevised at 45.0.
    0500 ET	Eurozone Apr unemployment rate expected +0.1 to 11.0%, Mar 10.9%.
    Germany
    0355 ET	German May final manufacturing PMI expected unrevised at 45.0.
    United Kingdom
    0430 ET	UK May manufacturing PMI expected -0.8 to 49.7, Apr 50.5.

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