Morning Call 8/22

Barchart Morning Call

Barchart.com - Tue Aug 22, 6:36AM CDT

OVERNIGHT MARKETS AND NEWS

Sep E-mini S&Ps (ESU17 +0.13%) this morning are up +0.07% and European stocks are up +0.47%, led by a rally in mining stocks, as Sep COMEX copper (HGU17 +0.70%) climbs +0.67% to a new 2-3/4 year nearest-futures high. Gains in European stocks were limited after a gauge of German investor confidence fell to a 10-month low. The German Aug ZEW survey expectations of economic growth fell -7.5 to 10.0, weaker than expectations of -2.5 to 15.0, amid concern that the diesel scandal at Volkswagen AG along with recent strength in EUR/USD will weigh on the German economy, Europe's largest. Asian stocks settled mostly higher: Japan -0.05%, Hong Kong +0.91%, China +0.10%, Taiwan +0.64%, Australia +0.42%, Singapore +0.52%, South Korea +0.39%, India +0.11%. China's Shanghai Composite erased early losses and rose to a 2-1/2 week high on optimism that Chinese insurance stocks and pharmaceutical companies will report better-than-expected quarterly earnings results. Japan's Nikkei Stock Index fell to a new 3-1/2 month low on a lack of support for stocks in the Nikkei Stock Index as the BOJ has said it will reduce investments in the Nikkei Stock Index and buy more exchange-traded funds tracking the Topix index.

The dollar index (DXY00 +0.43%) is up +0.45%. EUR/USD (^EURUSD) is down -0.55% on the weaker-than-expected German Aug ZEW survey. USD/JPY (^USDJPY) is up +0.32%.

Sep 10-year T-note prices (ZNU17 -0.16%) are down -5 ticks.

The German Aug ZEW survey expectations of economic growth fell -7.5 to 10.0, weaker than expectations of -2.5 to 15.0 and a 10-month low.

UK Jul public sector net borrowing unexpectedly fell -0.8 billion pounds, weaker than expectations of +0.3 billion pounds and the first decline in 5 months.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Jun FHFA house price index (expected +0.4% m/m, May +0.4% m/m), (2) Aug Richmond Fed manufacturing index (expected -3 to 11, Jul +3 to 14), (3) USDA Jul Cold Storage.

Notable Russell 1000 earnings reports today include: Toll Brothers (consensus $0.69), Coty (0.09), Medtronics (1.08), salesforce.com (0.32), Intuit (0.17).

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

Equity conferences this week: Bank of America Merrill Lynch Industrial, Energy and Infrastructure Conference on Tue, CFA Society of Minnesota Intellisight Conference on Tue-Wed, Healthcare Information & Management Systems Society Southeast Summit on Wed, Heikkinen Energy Conference on Wed, Raymond James SMID Cap Growth Conference on Wed, Southern California Investor Conference on Thu.

OVERNIGHT U.S. STOCK MOVERS

Alibaba (BABA +1.04%) was upgraded to 'Overweight' from 'Neutral' at Atlantic Equities LLP with a price target of $215.

VMware (VMW +0.77%) was upgraded to 'Buy' from 'Hold' at Deutsche Bank.

Tempur Sealy (TPX +0.39%) was upgraded to 'Buy' from 'Hold' a Stifel with a price target of $80.

Hain Celestial (HAIN +0.24%) was downgraded to 'Neutral' from 'Positive' at Susquehanna Financial.

Inversora Carso reported a 5.1% passive stake in PBF Logistics (PBFX -0.24%) .

Estee Lauder (EL +0.53%) was upgraded to 'Buy' from 'Hold' at Argus with a price target of $125.

BHP Billiton Ltd (BHP +1.26%) reported full-year underlying profit of $6.7 billion, weaker than consensus of $7.3 billion, and said it was pursuing options to exit onshore U.S. assets.

Nordson (NDSN +0.80%) sank 10% in after-hours trading after it forecast Q4 EPS of $1.18 to $1.32, well below consensus of $1.51.

Fabrinet (FN -0.65%) fell nearly 4% in after-hours trading after it forecast Q1 revenue of $356 million-$360 million, below consensus of $375.6 million.

Zayo Group Holdings (ZAYO -0.24%) dropped over 3% in after-hours trading after it reported Q4 adjusted Ebitda of $310.8 million, below consensus of $314.7 million.

Premier Inc. (PINC -0.49%) slid over 2% in after-hours trading after it reported Q4 adjusted EPS of 50 cents, below consensus of 52 cents, and then said it sees full-year adjusted EPS of $1.98 to $2.09, weaker than consensus of $2.11.

Tarena International (TEDU +3.27%) lost over 3% in after-hours trading after it cut its full-year revenue forecast to 1.92 to 2-billion yuan from a May 22 estimate of 1.99 to 2.07 billion yuan.

Global Medical Reit (GMRE -1.75%) was downgraded to 'Neutral' from 'Buy' at D.A. Davidson.

MARKET COMMENTS

Sep S&P 500 E-mini stock futures (ESU17 +0.13%) this morning are up +1.75 points (+0.07%). Monday's closes: S&P 500 +0.12, Dow Jones +0.13%, Nasdaq -0.08%. The S&P 500 on Monday posted a 1-1/4 month low, but recovered its losses and closed slightly higher. Stocks were supported by strength in mining stocks after the price of copper rose +1.39% to a 2-3/4 year high. There was also optimism about the global economic outlook after the Bundesbank in its monthly report said, "the German economy may grow more strongly this year than was expected in June forecasts." Energy stocks were undercut by the -2.32% sell-off in crude oil prices.

Sep 10-year T-note prices (ZNU17 -0.16%) this morning are down -5 ticks. Monday's closes: TYU7 +3.00, FVU7 +2.25. Sep 10-year T-notes on Monday closed higher on the weaker-than-expected Jul Chicago Fed national activity index (-0.17 to -0.01 versus expectations of -0.03 to 0.10) and on the decline in inflation expectations after the 10-year T-note breakeven inflation rate tumbled to a 1-month low.

The dollar index (DXY00 +0.43%) this morning is up +0.422 (+0.45%). EUR/USD (^EURUSD) is down -0.0065 (-0.55%) and USD/JPY (^USDJPY) is up +0.35 (+0.32%). Monday's closes: Dollar Index -0.339 (-0.36%), EUR/USD +0.0054 (+0.46%), USD/JPY -0.20 (-0.18%). The dollar index on Monday fell to a 1-week low and closed lower on the weaker-than-expected Jul Chicago Fed national activity index and on strength in EUR/USD after the Bundesbank's monthly report stated that "the German economy may grow more strongly this year than was expected in June forecasts."

Oct crude oil (CLV17 +0.04%) this morning is up +2 cents (+0.04%) and Oct gasoline (RBV17 +0.01%) is +0.0023 (+0.15%). Monday's closes: Oct WTI crude -1.13 (-2.22%), Oct gasoline -0.0370 (-2.41%). Oct crude oil and gasoline on Monday closed lower on the fall in the S&P 500 to a new 1-1/4 month high and on concern that the global oil glut will persist after last Wednesday's EIA data showed U.S. crude production rose to a 2-year high.

Metals prices this morning are mixed with Dec gold (GCZ17 -0.46%) -4.9 (-0.38%), Sep silver (SIU17 -0.26%) -0.015(-0.09%) and Sep copper (HGU17 +0.70%) +0.020 (+0.67%) at a new 2-3/4 nearest-futures high. Monday's closes: Dec gold +5.1 (+0.39%), Sep silver +0.015 (+0.09%), Sep copper +0.0410 (+1.39%). Metals on Monday closed higher with Sep copper at a new 2-3/4 year nearest-futures high. Metals prices were boosted by the fall in the dollar index to a 1-week low and by signs of tighter copper supplies after LME copper inventories fell -9,650 MT to a 1-1/2 month low of 261,700 MT.

GLOBAL EVENT CALENDAR08/22/2017

		Tuesday, Aug 21
US	0900 ET	Jun FHFA house price index expected +0.4% m/m, May +0.4% m/m. Q2 house price purchase, Q1 +1.4% q/q.
	1000 ET	Aug Richmond Fed manufacturing index expected -3 to 11, Jul +3 to 14.
	1500 ET	USDA Jul Cold Storage.
		Wednesday, Aug 22
US	0700 ET	Weekly MBA mortgage applications, previous +0.1% with purchase sub-index -1.5% and refi sub-index +1.6%.
	0905 ET	Dallas Fed President Robert Kaplan speaks before the Permian Basin Petroleum Association Membership Luncheon in Midland, TX.
	0945 ET	Aug Markit manufacturing PMI expected +0.1 to 53.4, Jul +1.3 to 53.3. Aug Markit services PMI expected +0.2 to 54.9, Jul +0.5 to 54.7.
	1000 ET	Jul new home sales expected unch at 610,000, Jun +0.8% to 610,000.
	1030 ET	EIA Weekly Petroleum Status Report.
	1300 ET	Treasury auctions $13 billion 2-year floating-rate notes.

U.S. STOCK CALENDAR08/22/2017

Company	Ticker	Time	Event Description	Period	Estimate
Toll Brothers Inc	TOL US	Bef-mkt	Q3 2017 Earnings Release	Q3 17	0.687
Coty Inc	COTY US	Bef-mkt	Q4 2017 Earnings Release	Q4 17	0.091
Medtronic PLC	MDT US	06:45	Q1 2018 Earnings Release	Q1 18	1.084
Medtronic PLC	MDT US	08:00	Q1 2018 Earnings Call	Q1 18
Coty Inc	COTY US	08:00	Q4 2017 Earnings Call	Q4 17
Nordson Corp	NDSN US	08:30	Q3 2017 Earnings Call	Q3 17
Toll Brothers Inc	TOL US	11:00	Q3 2017 Earnings Call	Q3 17
Cadence Design Systems Inc	CDNS US		Roadshow
Cadence Design Systems Inc	CDNS US		Roadshow
Microchip Technology Inc	MCHP US	12:00	Annual General Meeting
salesforce.com Inc	CRM US	Aft-mkt	Q2 2018 Earnings Release	Q2 18	0.316
Intuit Inc	INTU US	Aft-mkt	Q4 2017 Earnings Release	Q4 17	0.168
Intuit Inc	INTU US	16:30	Q4 2017 Earnings Call	Q4 17
salesforce.com Inc	CRM US	17:00	Q2 2018 Earnings Call	Q2 18

MORNING CALL 9/1

MORNING CALL 9/1

Thursday, September 1st, 2016View Older Reports

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OVERNIGHT MARKETS AND NEWS

Sep E-mini S&Ps (ESU16 +0.15%) are up +0.16% and European stocks are up +1.00% at a 2-week high amid positive signs for global growth. Manufacturing activity in China unexpectedly expanded at the fastest pace in nearly 2 years last month and manufacturing activity in the UK expanded at the fastest pace in 10 months. Mining stocks are leading gains in the overall market with Glencore Plc and Rio Tinto up over 1% as signs of stronger global manufacturing activity boosts copper prices. Asian stocks settled mixed: Japan +0.23%, Hong Kong +0.81%, China -0.72%, Taiwan -0.75%, Australia-0.32%, Singapore -0.15%, South Korea -0.33%, India -0.10%. Despite the stronger-than-expected Chinese manufacturing data, Chinese stocks closed lower on speculation the stronger data will reduce the chances of additional government stimulus. Japan's Nikkei Stock Index climbed to a 2-1/2 week high as exporter stocks rallied after USD/JPY rose to a 1-month high, which improves the earnings prospects of exporter companies.

The dollar index (DXY00 -0.03%) is down -0.03%. EUR/USD (^EURUSD) is down -0.08%. USD/JPY (^USDJPY) is up +0.25% at a 1-month high.

Dec T-note prices (ZNZ16 -0.16%) are down -8 ticks.

The UK Aug Markit manufacturing PMI rose +5.0 to 53.3, stronger than expectations of +0.8 to 49.0 and the fastest pace of expansion in 10 months.

The China Aug manufacturing PMI unexpectedly rose +0.5 to 50.4, stronger than expectations of -0.1 to 49.8 and the fastest pace of expansion in 1-3/4 years.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Aug Challenger job cuts (Jul -57.1% y/y), (2) weekly initial unemployment claims (expected +4,000 to 265,000, previous-1,000 to 261,000) and continuing claims (expected -2,000 to 2.143 million, previous -30,000 to 2.145 million), (3) revised Q2 non-farm productivity (expected -0.6%, prelim-Q1 -0.5%) and revised Q2 unit labor costs (expected +2.0%, prelim-Q2 +2.0%), (4) final-Aug Markit U.S. manufacturing PMI (expected unch at 52.1, prelim-Aug -0.8 to 52.1), (5) Jul construction spending (expected +0.5%, Jun -0.6% m/m), (6) Aug ISM manufacturing index (expected -0.6 to 52.0, Jul -0.6 to 52.6), (7) Aug total vehicle sales (expected 17.20 million, Jul 17.77 million), and (8) USDA weekly Export Sales.

Russell 1000 companies that report earnings today: Campbell Soup (consensus $0.50), Cooper Cos (2.28), VeriFone (0.40), lululemon athletica (0.38), Broadcom (2.76), Piedmont Natural Gas (-0.10), Hain Celestial Group (0.56).

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

Equity conferences during the remainder of this week include: none.

OVERNIGHT U.S. STOCK MOVERS

Charter Communications (CHTR +0.46%) rose nearly 4% in after-hours trading after it was announced that it will replace EMC in the S&P 500 after the close of trading on Wednesday, September 7.

Wynn Resorts (WYNN -0.92%) is up over 3% and Las Vegas Sands (LVS -1.47%) is up nearly 2% in pre-market trading after data showed Macau gross gaming revenue unexpectedly rose +1.1% in Aug, better than expectations of a -1.5% decline.

Ctrip.com International Ltd (CTRP unch) reported Q2 revenue of $683.5 million, above consensus of $656.7 million.

Box (BOX +3.15%) rallied 4% in after-hours trading after it raised guidance on full-year revenue to $394 million-$396 million from a prior view of $391 million-$395 million.

Semtech (SMTC +1.29%) gained over 2% in after-hours trading after it reported Q2 adjusted EPS of 35 cents, higher than consensus of 33 cents.

Ollie's Bargain Outlet Holdings (OLLI -1.17%) climbed 6% in after-hours trading after it reported Q2 adjusted EPS of 21 cents, better than consensus of 18 cents, and then raised guidance on full-year adjusted EPS to 88 cents-90 cents from a prior view of 85 cents-87 cents.

salesforce.com (CRM -0.51%) tumbled over 8% in after-hours trading after it said it sees Q3 adjusted EPS of 20 cents-21 cents, below consensus of 24 cents.

Shoe Carnival (SCVL +0.64%) fell nearly 6% in after-hours trading after it reported Q2 EPS of 22 cents, weaker than consensus of 27 cents, and then said it sees fiscal year comparable sales up +1.5% -2.0%, below a May 19 view of up 1% to 3%.

Impinj (PI +0.31%) rose 5% in after-hours trading after it reported Q2 adjusted EPS of 6 cents, double consensus of 3 cents.

Five Below (FIVE -0.56%) slid over 4% in after-hours trading after it reported Q2 comparable sales rose +3.1%, below consensus of +3.4%.

Oxford Industries (OXM -2.01%) jumped nearly 10% in after-hours trading after it reported Q2 adjusted EPS continuing operations of $1.48, better than expectations of $1.38.

MARKET COMMENTS

Sep E-mini S&Ps (ESU16 +0.15%) this morning are up +3.50 points (+0.16%). Wednesday's closes: S&P 500 -0.24%, Dow Jones -0.29%, Nasdaq -0.10%. The S&P 500 on Wednesday closed lower on the -4.3 point decline in the Aug Chicago PMI to 51.5, weaker than expectations of -1.8 to 54.0. There was also weakness in energy producer stocks as crude oil tumbled -3.56% to a 2-week low. In addition, there was increased concern about a Fed rate hike after the Aug ADP employment report showed an increase of +177,000 and July was revised upward to +194,000 from +179,000.

Dec 10-year T-notes (ZNZ16 -0.16%) this morning are down -8 ticks. Wednesday's closes: TYZ6 unch, FVZ6 +0.50. Dec T-notes on Wednesday closed little changed. T-note prices were undercut by the slightly larger-than-expected increase in the Aug ADM employment report of +177,000 and by the stronger-than-expected U.S. July pending home sales report. T-notes received a boost from the slide in stocks and the weaker-than-expected Aug Chicago PMI.

The dollar index (DXY00 -0.03%) this morning is down -0.033 (-0.03%). EUR/USD (^EURUSD) is down -0.0009 (-0.08%). USD/JPY (^USDJPY) is up +0.26 (+0.25%) at a new 1-month high. Wednesday's closes: Dollar index -00324 (-0.03%), EUR/USD +0.0015 (+0.13%), USD/JPY +0.47 (+0.46%). The dollar index on Wednesday climbed to a 3-week high but fell back and closed slightly lower. The dollar was boosted by the stronger-than-expected Aug ADP employment change and weakness in the yen after USD/JPY soared to a 1-month high on expectations for further BOJ stimulus measures in September. The dollar shed its advance after the Aug Chicago PMI fell more than expected.

Oct crude oil (CLV16 -0.13%) this morning is down -3 cents (-0.07%) and Oct gasoline (RBV16 -0.94%) is down -0.0124 (-0.93%). Wednesday's closes: CLV6 -1.65 (-3.56%), RBV6 -0.0356 (-2.59%). Oct crude oil and gasoline on Wednesday sold off to new 2-week lows and closed lower. Crude oil prices were undercut by the rally in the dollar index to a 3-week high and the +2.28 million bbl increase in EIA crude inventories, more than expectations of +1.5 million bbl.

GLOBAL EVENT CALENDAR09/01/2016

		Thursday, Sep 1
US	0730 ET	Aug Challenger job cuts, Jul -57.1% y/y.
	0830 ET	Weekly initial unemployment claims expected +4,000 to 265,000, previous -1,000 to 261,000. Weekly continuing claims expected unch at 2.145 million, previous -30,000 to 2.145 million.
	0830 ET	Revised Q2 non-farm productivity expected -0.6%, prelim-Q1 -0.5%. Revised Q2 unit labor costs expected +2.0%, prelim-Q2 +2.0%.
	0830 ET	USDA weekly Export Sales.
	0945 ET	Revised Aug Markit manufacturing PMI expected unch at 52.1, prelim-Aug -0.8 to 52.1.
	1000 ET	Jul construction spending expected +0.5%, Jun -0.6% m/m.
	1000 ET	Aug ISM manufacturing index expected -0.6 to 52.0, Jul -0.6 to 52.6. Aug ISM new orders, Jul +0.4 to 60.3. Aug ISM employment, Jul -1.3to 51.4. Aug ISM prices paid expected -0.2 to 54.8, Jul -5.5 to 55.0.
	n/a	Aug total vehicle sales expected 17.20 million, Jul 17.77 million. Aug domestic vehicle sales expected 13.50 million, Jul 13.77 million.
		Friday, Sep 2
US	0830 ET	Aug non-farm payrolls expected +180,000, Jul +255,000. Aug private payrolls expected +180,000, Jul +217,000. Aug manufacturing payrolls expected -4,000, Jul +9,000. Aug unemployment rate expected -0.1 to 4.8%, Jul unch at 4.9%.
	0830 ET	Aug avg hourly earnings expected +0.2% m/m and +2.5% y/y, Jul +0.3% m/m and +2.6% y/y. Aug avg weekly hours all-employees expected unch at 34.5 hours, Jul unch at 34.5 hours.
	0830 ET	Jul trade balance expected -$41.5 billion, Jun -$44.5 billion.
	0945 ET	Aug New York ISM, Jul +15.3 to 60.7.
	1000 ET	Jul factory orders expected +2.0%, Jun -1.5% and +0.4% ex transportation.
	1300 ET	Richmond Fed President Jeffrey Lacker (non-voter) speaks to the Virginia Association of Economists and the Richmond Association for Business Economics on Interest Rate Benchmarks.
JPN	0100 ET	Japan Aug consumer confidence index expected +0.5 to 41.8, Jul -0.5 to 41.3.
UK	0430 ET	UK Aug Markit/CIPS construction PMI expected +0.4 to 46.3, Jul -0.1 to 45.9.
EUR	0200 ET	ECB Governing Council member Ardo Hansson takes part in a parliamentary hearing about EU future outlook in the aftermath of the Brexit referendum.
	0500 ET	Eurozone Jul PPI expected +0.1% m/m and -2.9% y/y, Jun +0.7% m/m and -3.1% y/y.

U.S. STOCK CALENDAR09/01/2016

Company	Ticker	Time	Event Description	Period	Estimate
Campbell Soup Co	CPB US	7:15	Q4 2016 Earnings Release	Q4 2016	0.498
L Brands Inc	LB US	7:30	August 2016 Sales and Revenue Call - Pre-Recorded	2016
Campbell Soup Co	CPB US	8:30	Q4 2016 Earnings Call	Q4 2016
Ford Motor Co	F US	9:15	August 2016 Sales and Revenue Release	2016
Ford Motor Co	F US	10:00	August 2016 Sales and Revenue Call	2016
VeriFone Systems Inc	PAY US	Aft-mkt	Q3 2016 Earnings Release	Q3 2016	0.404
lululemon athletica Inc	LULU US	Aft-mkt	Q2 2017 Earnings Release	Q2 2017	0.38
Broadcom Ltd	AVGO US	Aft-mkt	Q3 2016 Earnings Release	Q3 2016	2.762
L Brands Inc	LB US		August 2016 Sales and Revenue Release	2016
Piedmont Natural Gas Co Inc	PNY US		Q3 2016 Earnings Release	Q3 2016	-0.095
Hain Celestial Group Inc/The	HAIN US		Q4 2016 Earnings Release	Q4 2016	0.559
General Motors Co	GM US		August 2016 Sales and Revenue Release	2016

Trending Stocks 8/17

Sym	Name	Last	Change	Percent	High	Low	Volume	Time	Links
BAC	Bank of America Corp	15.17	+0.15	+1.00%	15.19	14.93	80,270,094	08/16/16
CHK	Chesapeake Energy Corp	5.91	+0.41	+7.45%	5.94	5.42	77,052,102	08/16/16
STEM	Stemcells Inc	2.60	+2.23	+602.70%	2.99	0.42	59,621,500	08/16/16
SIRI	Sirius XM Holdings I	4.20	-0.04	-0.94%	4.24	4.20	54,071,102	08/16/16
HBAN	Huntington Bcshs	9.64	-0.04	-0.41%	9.70	9.55	41,796,402	08/16/16
HAIN	Hain Celestial Grp	39.35	-14.05	-26.31%	40.35	37.25	41,609,301	08/16/16
AAPL	Apple Inc	109.38	-0.10	-0.09%	110.23	109.21	33,787,199	08/16/16
T	AT&T Inc	41.96	-1.06	-2.46%	43.01	41.91	31,646,100	08/16/16
VIPS	Vipshop Holdings Ltd	16.07	+0.06	+0.37%	17.41	15.61	28,277,299	08/16/16
BABA	Alibaba Group Holding Ltd	96.66	-0.51	-0.52%	97.15	95.05	27,510,898	08/16/16
AMD	Adv Micro Devices	6.78	-0.17	-2.45%	6.94	6.65	26,766,301	08/16/16
ATVI	Activision Blizzard	39.31	-2.17	-5.23%	40.75	39.29	26,068,500	08/16/16
MEET	Meetme Inc	5.02	-1.13	-18.37%	6.39	4.68	24,263,199	08/16/16
TWTR	Twitter Inc	20.40	-0.46	-2.21%	20.79	20.29	23,517,398	08/16/16
VALE	Vale S.A.	5.95	+0.15	+2.59%	6.09	5.88	23,437,100	08/16/16
PBR	Petroleo Brasileiro S.A.- Petrobras	9.17	+0.09	+0.99%	9.34	8.98	23,420,600	08/16/16
CSCO	Cisco Systems Inc	31.12	-0.07	-0.22%	31.23	30.98	23,388,900	08/16/16
EMC	EMC Corp	28.69	+0.22	+0.77%	28.73	28.52	23,256,900	08/16/16
VRX	Valeant Pharmaceuticals Intl	26.60	+0.01	+0.04%	27.48	26.25	22,885,398	08/16/16
GE	General Electric Company	31.19	-0.05	-0.16%	31.29	31.08	22,383,400	08/16/16