5 Large Cap Picks

Today I sorted the S & P 500 Large Cap Index to find 5 stocks with great Barchart technical indicators and great graphs.  Today's list includes PPG Industries (PPG), Nucor (NUE), Netflix (NFLX), McKesson (MCK) and H J Heinz (HNZ):

PPG Industries (PPG)

Barchart technical indicators:

• 100% Barchart technical buy signal
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 11 new highs and up 9.33% in the last month
• Relative Strength Index 68.84%
• Barchart computes a technical support level at 125.52
• Recently traded at 129.93 with a 50 day moving average of 119.57

Nucor (NUE)

Barchart technical indicators:

• 100% Bar hart technical buy signal
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 10 new highs and up 6.90% in the last month
• Relative Strength Index 63.61%
• Barchart computes a technical support level at 40.48
• Recently traded at 42.28 with a 50 day moving average of 40.32

Netflix (NFLX)

Barchart technical indicators:

• 100% Barchart technical buy signal
• Trend spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 10 new highs and up 16.952% in the last month
• Relative Strength Index 68.45%
• Barchart computes a technical support level at 90.64
• Recently traded at 93.30 with a 50 day moving average of 76.31

McKesson (MCK)

Barchart Technical indicators:

• 100% Barchart technical buy signal
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 12 new highs and up 6.48% in the last month
• Relative Strength Index 73.68%
• Barchart computes a technical support level at 73.68
• Recently traded at 98.258 with a 50 day moving average of 92.70

H J Heinz (HNZ)

Barchart technical indicators:

• 100% Barchart technical buy signal
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 6 new highs and up 2.32% in the last month
• Relative Strength Index 62.80%
• Barchart computes a technical support level at 58.37%
• Recently traded at 59.12 with a 50 day moving average of 57.71

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Barchart Morning Call 11/20

Barchart Morning Call

BC - 1 hr 47 mins ago

Overnight Developments

• Dec E-mini S&Ps are little changed this morning. The Euro Stoxx 50 index this morning is slightly lower by -0.15% and the large Asian stock markets closed mildly lower with Japan down -0.12%, Hong Kong down -0.16%, and China down -0.46%. The markets in part are awaiting developments from today's Eurozone finance ministers meeting on Greece. Israel has put its ground invasion of Gaza on hold while it waits to see if Egypt can convince Hamas to stop firing rockets into Israel. Commodity prices this morning are slightly lower by -0.10% with Jan crude oil down -0.19%, Jan gasoline down -0.56%, Dec gold down -0.02%, Dec copper down -0.17%, and agriculture prices mixed. The dollar index is slightly lower by -0.05%. Dec 10-year T-note prices are down 5.5 ticks.
• The Bank of Japan at the 2-day meeting that concluded today left its monetary policy unchanged and did not raise its asset purchase target. The BOJ had already raised its asset purchase target in each of the last two months in September and October. Today's lack of action was in line with market expectations. The market is now expecting the BOJ to raise its target again at its meeting in December. The BOJ will come under increased pressure to ease if the opposition LDP party wins December's general election as expected since LDP leader Shinzo Abe recently called on the BOJ to engage in unlimited easing and to boost its inflation goal to 2% or 3% from the current 1%.
• Chinese foreign direct investment fell -0.2% y/y to $8.31 billion, which was the eleventh decline in the last twelve months. The report indicated that foreign investors are pulling back from China due to slower economic growth and various administrative restrictions designed to rein in the economy and inflation.
• Japan's Sep all-industry activity index fell -0.3% m/m, which was a bit stronger than the expected -0.5% decline.
• Japan Oct nationwide department store sales fell -2.4% y/y, down from -0.2% y/y in Sep. Tokyo Oct department store sales fell -1.5% y/y versus the +0.7% y/y increase in September.
• The German Oct producer price report of unch m/m and +1.5% y/y was slightly weaker than market expectations of +0.1% m/m and +1.6% y/y and was down from +0.3% m/m and +1.7% in Sep.
  Market Comments
  • Dec E-mini S&Ps this morning are slightly higher by +0.25 points (+0.02%) as the market pauses in the wake of yesterday's sharp rally. Global stocks are mildly lower this morning on balance. The stock market is looking ahead to today's housings starts report and the outcome of today's Eurozone finance ministers meeting regarding Greece. U.S. stocks on Monday rallied sharply on hopes for Eurozone approval of the Greek bailout tranche as soon as Tuesday and improved hopes for a fiscal cliff resolution, along with the stronger-than-expected U.S. existing home sales data and NAHB housing market index. Closes: S&P 500 +1.99%, Dow Jones +1.65%, Nasdaq +2.43%. The Nov NAHB housing market index rose sharply by 5 points to a 6-1/2 year high of 46, which was much stronger than market expectations of unchanged at 41. U.S. existing home sales rose +2.1% to 4.79 mln units, which was stronger than market expectations for a report of 4.74 million units.
  • Dec 10-year T-notes this morning are down 5.5 ticks as safe-haven demand continues to ebb. Dec 10-year T-note prices on Monday closed moderately lower on the stronger-than-expected housing market data and reduced safe-haven demand with the rally in stocks: Closes: TYZ2 -9, FVZ2 -3.25.
  • The dollar index this morning is slightly lower by -0.04 points (-0.05%). EUR/USD is virtually unchanged and USD/JPY is up +0.10 (+0.12%). The dollar index on Monday closed lower due to reduced safe-haven demand with the sharp upward rebound in the U.S. stock market. EUR/USD on Monday closed higher on hopes for Eurozone approval of the Greek bailout tranche and was able to shake off news of a downgrade in the French credit rating. Closes: Dollar index -0.38 (-0.47%), EUR/USD +0.0071 (+0.56%), USD/JPY +0.71 (+0.56%).
  • Jan WTI crude oil prices this morning are down -0.17 (-0.19%) and Jan gasoline is down -0.0152 (-0.56%) as the petroleum market runs into some long liquidation pressure after yesterday's rally. Dec crude oil and gasoline prices on Monday closed higher on (1) Middle East tensions with Israel on the verge of a ground invasion of Gaza, and (2) weakness in the dollar index and the rally in stocks: CLF3 +2.36 (+2.72%), RBZ2 +0.0502 (+1.87%). The market consensus for Wednesday's weekly DOE report is for a 1 million barrel increase in crude oil inventories, a 1 million barrel increase in gasoline inventories, a 1 million barrel decline in distillate inventories, and a 0.5 point increase in the refinery utilization rate.
  • 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): Medtronic (Consensus:$0.88), HPQ-Hewlett Packard (1.14), CRM-Salesforce.com (0.32), HNZ-Heinz (0.88), CPB-Campbell Soup (0.85), HRL-Hormel Foods (0.50), VAL-Valspar (0.85), BBY-Best Buy (0.12), SIG-Signet Jewelers (0.37), PDCo-Patterson Cos (0.48), EV-Eaton Vance (0.48), CHS-Chico's Fas (.23).
    Global Financial Calendar
    

    Tuesday 11/20/12
    United States
    0745 ET	ICSC (Int'l Council of Shopping Centers) weekly retailer sales.
    0830 ET	Oct housing starts expected -3.7% m/m to 840,000, Sep +15.0% to 872,000. Oct building permits are expected at -2.9% to 864,000, Sep +11.1% to 890,000.
    0855 ET	Redbook weekly retailer sales.
    0900 ET	Richmond Fed President Jeffery Lacker speaks on monetary policy in NY at the Shadow Open Market Committee's Fall Symposium.
    1130 ET	Weekly 4-week T-bill auction.
    1215 ET	Fed Chairman Bernanke speaks to the Economic Club of NY.
    1630 ET	API weekly U.S. oil statistics.
    Euro-Zone
    n/a	Eurozone finance ministers meeting.
    Japan
    n/a	BOJ 2-day meeting concludes.
    0030 ET	Japan Oct nationwide department store sales, Sep -0.2% y/y. Oct Tokyo department store sales, Sep +0.7% y/y.
    0200 ET	Japan Oct convenience store sales, Sep -1.6% y/y.
    1850 ET	Japan Oct merchandise trade balance expected -360 bln yen, Sep -562 bln yen. Oct adjusted merchandise trade balance expected -492 bln yen, Sep -980 bln yen. Oct trade exports expected -4.9% y/y, Sep -10.3% y/y. Oct trade imports expected -3.2% y/y, Sep +4.1% y/y.
    CHI
    2100 ET	Conference Board's China Oct leading economic index.
    Germany
    0200 ET	German Oct producer prices expected +0.1% m/m and +1.6% y/y, Sep +0.3% m/m and +1.7% y/y.

    Barchart.com provides Financial Quotes, Charts and Technical Analysis for Stock and Commodity Traders.

5 Large Cap Picks

Today I screened the S&P 500 Large Cap Index to find the 5 with the best Barchart technical indicators and charts.  Near the top of the list were H J Heinz (HNZ), Home Depot (HD), Gilead Sciences (GILD), Equifax (EFX) and Campbell Soup (CPB):

H J Heinz (HNZ)

Barchart technical indicators:

• 100% Barchart technical buy signal
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 5 new highs and up 3.48% in the last month
• Relative Strength Index 61.20%
• Barchart computes a technical support level at 56.91
• Recently traded at 58.32 with a 50 day moving average of 56.77

Home Depot (HD)

Barchart technical indicators:

• 100% Barchart technical buy signal
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages 
• 6 new highs and up 7.27% in the last month
• Relative Strength Index 64.98%
• Barchart computes a technical support level at 60.10
• Recently traded at 63.94 with a 50 day moving average of 60.17

Gilead Sciences (GILD)

Barchart technical indicators:

• 100% Barchart technical buy signal
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving average
• 4 new highs and up 9.56% in the last month
• Relative Strength Index 70.46%
• Barchart computes a technical support level at 70.52
• Recently traded at 74.42 with a 50 day moving average of 66.08

Equifax (EFX)

Barchart technical indicators:

• 100% Barchart technical buy signal
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 3 new highs and up 4.30% in the last month
• Relative Strength Index 65.99%
• Barchart computes a technical support level at 49.80
• Recently traded at 51.38 with a 50 day moving average of 48.48

Campbell Soup (CPB)

Barchart technical indicators:

• 100% Barchart technical buy signal
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving average
• 10 new highs and up 5.51% in the last month
• Relative Strength Index 73.38%
• Barchart computes a technical support level at 34.97
• Recently traded at 36.58/ with a 50 day moving average of 35.06

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Barchart Morning Call 8/29

Barchart Morning Call

BC - 47 mins ago

Overnight Developments

• Sep E-mini S&Ps this morning are trading unchanged today, shaking off a 0.53% sell-off in European stocks. Commodity prices are mildly higher by +0.15% on average with Oct crude oil down -0.69%, gold down -0.26%, copper down -0.79%, but with grains and softs trading higher. Sep 10-year T-notes are down 1 tick. The dollar index is slightly higher by +0.06% while EUR/USD is down -0.08%. The markets are generally quiet, awaiting Fed Chairman Bernanke's Jackson Hole speech on Friday.
• Asian stocks today closed mostly lower: Japan +0.40%, Hong Kong -0.12%, China -1.05%, Taiwan +0.40%, Australia -0.07%, Singapore +0.05%, South Korea +0.65%, India -0.80%, Turkey +0.14%.
• Hurricane Isaac is slowly making its way onshore and is currently 60 miles south-southwest of New Orleans. The storm has maximum sustained winds of 80 mpg and is a Category 1 hurricane. The storm has caused heavy rains and an 11 foot storm surge. The storm has shut down 93% of U.S. oil production in the Gulf of Mexico and 67% of natural gas production. The storm has caused six refineries to close and three to run at reduced operation rates, idling 6.7% of U.S. refining capacity.
• Italian Prime Minister Monti meets today in Berlin with German Chancellor Merkel to discuss the European debt crisis and the plan to give Spain and Italy the option of participating in a plan where the ECB buys bonds in the secondary market and the Eurozone's bailout facilities buy bonds in the primary market. Neither Spain nor Italy has yet formally requested to participate in the program. Italy today successfully sold 9 billion euros of 6-month bills today at a yield of 1.585%, down sharply from 2.454% at the last sale in July. Italy tomorrow intends to sell up to 7.5 billion of 5 and 10-year bonds.
• ECB President Draghi wrote in a commentary carried today in the German newspaper Die Zeit that the ECB "will always act within the limits of its mandate. Yet it should be understood that fulfilling our mandate sometimes requires us to go beyond standard monetary tools." Mr. Draghi's comments provide a direct rebuttal to the recent opposition by Bundesbank President and ECB Council member Weidmann to the ECB's bond buying plan.
  Market Comments
  • Sep E-mini S&Ps this morning are trading unchanged, awaiting Fed Chairman Bernanke's speech on Friday at the Fed's Jackson Hole conference. The U.S. stock market on Tuesday closed slightly lower on balance: S&P 500 -0.08%, Dow Jones -0.17%, Nasdaq 100 +0.01%. Bearish factors included Japan's downgrade of its economy and the sharp 5.3 point drop to 60.6 in the Aug U.S. consumer confidence index from the Conference Board, which was much weaker than market expectations for a 0.1 point increase to 66.0. The 8 point rise in the Richmond Fed index was roughly in line with market expectations. The June Case-Shiller Composite-20 home price index rose +0.9%, which was stronger than market expectations of +0.5%.
  • Sep 10-year T-notes this morning are down 1 tick. Sep 10-year T-note futures prices on Tuesday closed mildly higher: TYU2 +4.5, FVU2 +1.25. T-note prices closed higher on the weak U.S. consumer confidence report, which increased the chances for QE3.
  • The dollar index this morning is slightly higher by +0.05 (+0.06%), while EUR/USD is down -0.0010 (-0.08%). USD/JPY is up +0.07 (+0.09%). EUR/USD received underlying support today from the successful Italian bill auction and ECB President Draghi's defense of the ECB's bond buying plans. The dollar index on Tuesday closed moderately lower: Dollar index -0.29 (-0.35%), EUR/USD +0.0066 (+0.53%), USD/JPY -0.23 (-0.29%). The dollar index fell on the sharp decline in the U.S. consumer confidence index, which boosted the chances for a dollar-bearish QE3 program since the U.S. economy is sure to stall unless consumer spending can recover on a sustained basis after weakness in April through June.
  • Oct WTI crude oil prices this morning are down -0.66 (-0.69%) and Oct gasoline is down -0.0375 (-1.28%) as the market drains some of the storm premium out of crude oil and gasoline prices now that the impact of Hurricane Isaac is now largely known. Oct crude oil and gasoline prices on Tuesday closed mixed: CLV2 +0.86 (+0.90%), RBU2 -0.0167 (-0.57%). The market continues to adjust to the anticipated disruptions from Hurricane Isaac, which has shut down the majority of oil and gas production in the Gulf of Mexico and has also forced the closure of some U.S. refineries. The market consensus for today's weekly DOE report are for a 2 million barrel decline in oil inventories, a 1.4 million barrel decline in gasoline inventories, a 400,000 barrel climb in distillate inventories, and a 0.3 point drop to 90.9% in the refinery utilization rate.
  • 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): HNZ-Heinz (Consensus $0.81), BF/B-Brown-Forman (0.63), JOY-Joy Global (1.89), TFM-Fresh Market (0.27), GEF-Greif (0.71), GCO-Genesco (0.26), P-Pandora Media (-0.03).
    Global Financial Calendar
    

    Wednesday 8/29/12
    United States
    0700 ET	Weekly MBA mortgage applications, previous -7.4 with purchase sub-index +0.9% and refi sub-index -9.2%.
    0830 ET	Revised Q2 US GDP expected +1.7% q/q annualized, preliminary +1.5%. Q2 personal consumption expected +1.6%. preliminary +1.5%. Q2 GDP price index expected unrevised from preliminary +1.6%. Q2 core PCE expected unrevised from preliminary +1.8%.
    1000 ET	July pending home sales expected +1.0% m/m and +9.9% y/y, June -1.4% m/m and +8.4% y/y.
    1030 ET	DOE Weekly Petroleum Status Report.
    1300 ET	Treasury auctions $35 billion 5-year T-notes.
    1400 ET	Fed's Beige Book report.
    Germany
    0800 ET	German Aug CPI EU-harmonized expected +0.2% m/m and +2.1% y/y, July +0.4% m/m and +1.9% y/y.
    Japan
    1950 ET	Japan July retail trade expected -0.5% m/m and -0.1% y/y, June -1.2% m/m and +0.2% y/y. Japan July large retailer sales expected -3.2% y/y, June -2.6% y/y.

    Barchart.com provides Financial Quotes, Charts and Technical Analysis for Stock and Commodity Traders.

Barchart's Morning Call 5/24

Barchart Morning Call

BC - 41 mins ago

Overnight Developments

• June E-mini S&Ps this morning are trading mildly higher by +5.75 points (+0.44%) on this morning's 1.25% upward rebound in European stocks and some short-covering. The news overnight has generally been negative with weaker-than-expected Eurozone PMI and German IFO confidence reports and a 0.5 point drop in the China May flash manufacturing PMI to 48.7. The dollar index is slightly lower by 0.033 points on the higher trade in U.S. and European stocks. Commodity prices have rebounded higher this morning with crude oil up +1.07%, gold up 1.12%, copper up 1.41%, and agricultural commodities trading mostly higher.
• The Euro Stoxx 50 is up +1.25% this morning on some short-covering after the recent sharp losses. Yesterday's EU summit resulted in a spirited exchange of views and was not intended to deliver any policy decisions, although German Chancellor Merkel once again made clear her opposition to joint euro bonds. European Union President Herman Van Rompuy was given the task of outlining "building blocks" for a more integrated Eurozone to present at the next EU summit on June 28-29.
• Asian stocks closed mostly lower today as gloom continued to hang over the markets: Japan +0.08%, Hong Kong -0.64%, China -0.83%, Taiwan -0.32%, Australia -0.28%, Singapore -0.03%, South Korea +0.31%, India +1.72%, Turkey +0.04%.
• World powers today are meeting with Iran for a second day of the talks on Iran's nuclear program. A member of the Iranian delegation today said that "There's been no progress in this round of talks." The world powers are pressing Iran for an immediate halt to the enrichment of uranium to 20% purity.
• Today's May Eurozone PMI Manufacturing index fell by -0.9 points to 45.0 from 45.9 in April and was weaker than market expectations for a 0.1 point increase to 46.0. The May PMI services index fell by -0.4 points to 46.5 from 46.9 in April and was weaker than expectations for a -0.2 point decline to 46.7.
• Today's German IFO confidence report was substantially weaker than expected. The German May IFO Business Climate index fell by 3.0 points to 106.9 from April's 109.9 versus expectations for a 0.5 point decline to 109.4. The May IFO Current Assessment index fell by 4.2 points to 113.3 from April's 117.5 and was weaker than expectations for a 0.4 point decline to 117.1. The IFO Expectations index fell by 1.8 points to 100.9 from April's 102.7, and was weaker than expectations for a 0.7 point decline to 102.0.
• UK Q1 GDP was revised lower to -0.3% q/q (-1.2% q/q annualized) from the earlier report of -0.2% q/q (-0.8% q/q annualized).
• china's May HSBC/Markit flash manufacturing PMI fell by 0.5 points to 48.7 from 49.3 in April.
  Market Comments
  • June E-mini S&Ps this morning are up +5.75 points (+0.44%) on some follow-through technical buying from yesterday's late rally and on today's 1.25% rally in European stocks. Hewlett-Packard is up 8% in European trading this morning after HP reported above-consensus sales and profit and announced plans to cut 27,000 jobs. There are earnings reports today from COST-Costco (consensus $0.87), HNZ-Heinz (0.79), TIF-Tiffany (0.70), PAY-Verifone (0.61), SIG-Signet Jewelers (0.91).
  • U.S. stocks on Wednesday closed narrowly mixed after an upward rebound from early losses: S&P 500 +0.17%, Dow Jones -0.05%, Nasdaq 100 +0.31%. The stock market on Wednesday was down early on sharp losses in European stocks and ongoing worries about Greece, Spain, and potential conflict between France and Germany. However, the market was able to recover later in the session on some improved optimism about European cooperation and on the stronger-than-expected U.S. March new home sales (+3.3%) and March FHFA U.S. home price index (+1.8% m/m) reports. The markets were also encouraged that Spain's Economy Minister said that Bankia, Spain's fourth largest bank, will get whatever public money it needs to be recapitalized. The markets have been worried that the Spanish government has yet to produce a specific rescue plan for Bankia after it was partially nationalized two weeks ago due to its heavy losses on property loans. Also, Greece's four largest banks this week received cash from the Eurozone bailout fund to replenish their capital levels, which put the Greek banking system on a stronger footing to be able to weather the storm through the July 17 Greek parliamentary elections.
  • June 10-year T-notes this morning are down 6 ticks due to reduced safe-haven demand with the upward rebound in U.S. stock index futures and European stocks. The Treasury today sells $29 billion in 7-year T-notes. T-note prices on Wednesday closed higher: TYM2 +11.5, FVM2 +5.25. June 10-year T-note prices on Wednesday posted a new record high. The 10-year T-note yield closed the day at 1.73%, which was just 6 bp above the record low of 1.67% posted last September. T-notes continue to see strength on the recent indications of slowing world economic growth. T-notes are also receiving strong safe-haven demand with speculation that Greece may choose to leave the Eurozone and that Spain may need a bailout to recapitalize its banking sector and cover deficits for its state/regional governments.
  • The dollar index this morning is slightly lower by 0.033 points (-0.04%) due to the higher trade in U.S. and European stocks. EUR/USD is down -0.0003 (-0.02%). USD/JPY is down -0.09 (-0.11%). The dollar index on Wednesday decisively broke out to a new 1-2/3 year high and closed with fairly sharp gains: Dollar Index +0.58 (+0.72%), EUR/USD -0.0102 (-0.80%), USD/JPY -0.49 (-0.62). The dollar continues to see safe-haven demand, combined with technical buying on Wednesday's upside technical breakout. The recent events in Europe are bearish for the euro both because of a loss of confidence in the euro itself and because the ECB is coming under increasing pressure to easy monetary policy another notch either by cutting interest rates or by conducting another long-term loan operation. French President Hollande is also revived pressure for the idea of having the ECB lend money to the permanent European Stability Mechanism to boost its firepower, which would amount to an easing of monetary policy. The ECB in December and February loaned more than 800 European banks a total of 1 trillion euros to reliquefy the European banking system. French President Hollande at Wednesday's informal summit gained support from other EU leaders for his growth policies but was stonewalled by the Germans on the joint euro bond concept.
  • July WTI crude oil prices this morning are up 0.96 (+1.07%) and July gasoline is up 0.42 (+0.15%) on some short-covering after the recent sharp losses. Crude oil and gasoline prices on Wednesday closed lower once again: CLN12 -1.46 (-1.59%), RBN2 -0.0435 (-1.52%). July crude oil prices fell to a new 7-month low and closed at $90.44, the first close near $90 since last October. Meanwhile, July Brent crude oil futures closed at $105.56, which is still above $5 higher than where Saudi Oil Minister al-Naimi recently said he would like to see Brent crude oil trading. Oil prices continue to see downward pressure from the weaker global economy, the European debt crisis, rising U.S. inventories, and the Iran talks. There was little news out of yesterday's negotiating session between Iran and the world powers. Negotiations broke off at midnight Wednesday but will resume Thursday morning Baghdad time. The fact that the negotiations went into a second day was a sign of at least some modest progress, which is bearish for oil prices since the talks are delaying the day of any military attack.
  • Wednesday's DOE report showed a continued rise in crude oil inventories and a continued decline in product inventories. U.S. crude oil inventories rose by 3.299 million barrels, which was a larger increase than the consensus of +1.5 million barrels, and posted a new 21-3/4 year high. Crude oil inventories have now soared by 16% since the beginning of the year, which has been a major bearish factor for crude oil prices in recent weeks. U.S. crude oil inventories are now 8.4% above the 5-year seasonal average, the highest such level since December 2010. Crude oil inventories at the Cushing hub in the week ended May 18 rose by 1.7 million barrels to a new record high of 46.795 million barrels, but should now start to slowly decline since the Seaway pipeline to the Gulf was reversed on May 19. Gasoline inventories fell by 3.3 million barrels, which was a much tighter report than expectations for an increase of +500,000 barrels. Distillate inventories fell by 309,000 barrels, which was a little less than the consensus for a decline of 500,000 barrels. Gasoline inventories are now 3.5% below their 5-year seasonal average and distillate inventories are 10.8% below their 5-year average. The refinery utilization rate fell slightly by 0.2 points to 88.1%, which was weaker than expectations for a 0.4 point increase to 88.7%. The utilization rate is now 1.1 point above the 5-year seasonal average.
  • For the full subscription version of this report, please visit http://www.barchart.com/register/crbfms_usmc.php
    Today's U.S. Earnings Reports Earnings reports (sorted by mkt cap): COST-Costco (consensus $0.87), HNZ-Heinz (0.79), TIF-Tiffany (0.70), PAY-Verifone (0.61), SIG-Signet Jewelers (0.91).
    Global Financial Calendar
    

    Thursday 5/24/12
    United States
    0830 ET	Weekly initial unemployment claims expected unchanged at 370,000, previous unchanged at 370,000. Weekly continuing claims expected -15,000 to 3.250 mln, previous +18,000 to 3.265 mln.
    0830 ET	Apr durable goods orders expected +0.3%, Mar -3.9% m/m. Apr durable goods orders ex-transportation expected +0.8%%, Mar -1.3% m/m.
    0830 ET	USDA weekly exports.
    0900 ET	International Grains Council releases its global wheat, corn and rice production estimates.
    1030 ET	DOE natural gas storage.
    1100 ET	May Kansas City Fed manufacturing activity index expected +2 to 5, Apr 3.
    1100 ET	U.S. Climate Prediction Center issues its preseason Atlantic hurricane season forecast.
    1300 ET	Treasury auction of $29 billion in 7-year T-notes.
    1300 ET	Fed's Dudley speaks at Council on Foreign Relations in NY.
    1630 ET	Weekly money supply report and Fed balance sheet.
    Japan
    0100 ET	Bank of Japan monthly economic report.
    1930 ET	Japan Apr CPI expected +0.4% y/y, Mar +0.5% y/y. Apr CPI ex-food and energy expected -0.4% y/y, Mar -0.5% y/y. May Tokyo CPI expected -0.3% y/y, Apr -0.3% y/y. May Tokyo CPI ex-fresh food expected -0.5% y/y, Mar -0.5% y/y. May Tokyo CPI ex-food and energy expected -1.0% y/y, Apr -1.0% y/y.
    Germany
    0200 ET	German Q1 GDP expected unrevised from +0.5% q/q and +1.7% y/y.
    0330 ET	German May PMI manufacturing expected +0.8 to 47.0, Apr 46.2. May PMI Services expected -0.2 to 52.0, Apr 52.2.
    0400 ET	German May IFO business climate expected -0.5 to 109.4, Apr 109.9. May IFO current assessment expected 0.4% to 117.1, 117.5. May IFO expectations expected -0.7 to 102.0, Apr 102.7.
    Euro-Zone
    0400 ET	Eurozone May PMI composite expected -0.1 to 46.6, Apr 46.7. May PMI manufacturing expected +0.1 to 46.0, Apr 45.9. May PMI services expected -0.2 to 46.7, Apr 46.9.
    United Kingdom
    0430 ET	UK Apr BBA loans for house purchase.
    0430 ET	UK Q1 GDP expected -0.2% q/q and unch y/y, last -0.2% q/q and unch y/y.
    0430 ET	Q1 total business investment expected -1.0% q/q and +9.2% y/y, last -3.3% q/q and -0.4% y/y.
    0430 ET	UK Mar index of services expected +0.3% m/m and +0.2% 3mo/3mo, Apr -0.4% m/m and +2.2% 3mo/3mo.
    CHI
    n/a	MNI May business condition survey.

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Barchart Morning Call 2-17

Barchart Morning Call

Barchart.com - 39 mins ago

Overnight Developments

• Global stocks this morning are mostly higher with the Euro Stoxx 50 up +0.33% and Mar S&Ps up +1.40 points. The dollar and Treasuries are slightly weaker, while credit default swaps to insure European government debt fell on optimism Greece will get a bailout. According to people familiar with the talks, European governments are considering cutting interest rates on emergency loans to Greece and using contributions from the ECB's sale of its Greek debt holdings to plug a financing gap in the second Greek bailout. Another positive for European stocks and the euro is reduced funding concerns for European banks after the Euribor-OIS spread, a measure of banks' reluctance to lend that is the difference between the euro interbank offered rate and overnight indexed swaps, fell to 69 bp, a 5-1/2 month low. The British pound climbed to a 1-week high against the dollar after Jan U.K. retail ex auto fuel unexpectedly rose +1.2% m/m and +1.9% y/y, stronger than expectations of a -0.3% m/m and -0.1% y/y decline.
• Asian stocks today closed higher with Japan up +1.58%, China +0.04%, Australia +0.34%, South Korea +1.50%, India +0.75%. The Japanese yen extended its recent slide as it fell to a fresh 3-1/2 month low against the dollar and fueled a rally in stocks with the Nikkei 225 Stock Index climbing to its best level in 6-1/2 months. Strength in U.S. economic data also boosted stocks that export to the U.S., led by a 2.4% gain for Honda Motor. Chinese stocks closed little changed as weakness in bank stocks limited gains. The China Banking Regulatory Commission reported that Q4 China commercial banks' bad loans rose 20.1 billion yuan ($3.2 billion) to 427.9 billion yuan as of Dec 31 as non-performing loans accounted for 0.96% of total lending, up from 0.95% in Q3. Chinese housing developers and builders also weakened after Qin Hong, head of the policy research center under the Ministry of Housing and Urban-Rural Development said China will "unwaveringly" maintain property curbs in both the long and short term.

Overnight U.S. Stock News

• March S&Ps this morning are trading up +1.40 points. The US stock market on Thursday settled higher on better-than-estimated U.S. economic data along with increased optimism over Greek bailout efforts: Dow Jones +0.96%, S&P 500 +1.10%, Nasdaq Composite +1.51%. Bullish factors Thursday included (1) the unexpected decline in weekly initial U.S. unemployment claims to a nearly 4-year low (-13,000 to 348,000 versus expectations of +7,000 to 365,000), (2) the larger-than-expected increase in Jan U.S. housing starts (+1.5% to 699,000 versus expectations of +2.7% to 675,000), (3) the greater-than-expected increase in the Feb Philadelphia Fed manufacturing index (+2.9 to 10.2 versus expectations of +1.7 to 9.0), (4) the action by Congress to agree on a plan to extend a payroll tax cut and expanded unemployment benefits through the rest of the year, and (5) the report from the German newspaper Die Welt that the ECB is exchanging Greek bonds for new securities and using the profits to plug a financing gap in the second bailout for Greece, which eases concern that Greece will get its aid package on time to avoid default.
• Bearish factors included (1) the warning from Moody's Investors Service that ratings for global banks may be cut as lenders worldwide face risks of rising funding costs due to the European debt crisis and (2) global economic concerns after China's commerce industry said the outlook for foreign investment in China and trade this year is "grim" along with the ECB's monthly report that said forecasters lowered their 2012 Euro-Zone GDP forecast to a contraction of -0.1% from a Nov projection of +0.8% growth, while they cut their 2013 GDP forecast to 1.1% from a Nov estimate of 1.6%.
• Applied Materials (AMAT) climbed 5.5% in European trading after the largest maker of chipmaking equipment forecast Q2 profit of 20 cents to 28 cents a share, better than analysts' estimates of 16 cents on average.
• Dell (DELL) fell 1% in European trading after the stock was cut to "neutral" from "outperform" at Robert W Baird. & Co.

Today's Market Focus

• March 10-year T-notes this morning are down -3 ticks. T-note prices on Thursday settled lower after stronger-than-expected U.S. economic data and reduced European debt concerns limited the safe-haven demand for Treasuries: TYH2 -19.0, FVH2 -11.5, EDM2 -2.0. Bearish factors Thursday included (1) the unexpected decline in weekly initial U.S. unemployment claims to a nearly 4-year low (-13,000 to 348,000 versus expectations of +7,000 to 365,000), (2) the larger-than-expected increase in Jan core PPI (+0.4% m/m and +3.0% y/y versus expectations of +0.2% m/m and +2.7% y/y), (3) the larger-than-expected increase in Jan U.S. housing starts (+1.5% to 699,000 versus expectations of +2.7% to 675,000), (4) the greater-than-expected increase in the Feb Philadelphia Fed manufacturing index (+2.9 to 10.2 versus expectations of +1.7 to 9.0), and (5) reduced safe-haven demand for Treasuries after the German newspaper Die Welt reported that the ECB is exchanging Greek bonds for new securities, which eases concern that Greece will get its second bailout. Bullish factors included (1) increased safe-haven demand for Treasuries after Moody's warned that ratings for global banks may be cut as lenders worldwide face risks of rising funding costs due to the European debt crisis and (2) global economic concerns after China's commerce industry said the outlook for foreign investment in China and trade this year is "grim" and after the ECB's monthly report said forecasters lowered their 2012 and 2013 Euro-Zone GDP forecasts.
• The dollar index this morning is weaker with the dollar/yen +0.24 yen and the euro/dollar +0.32 cents. The dollar index on Thursday retreated from a 3-week high and finished lower after a German newspaper reported the ECB is swapping its 50 billion euros of Greek bond holdings for new Greek bonds: Dollar Index -0.322, USDJPY +0.498, EURUSD +0.00642. Bearish factors included (1) a rebound in the euro which recovered from a 3-week low against the dollar and closed higher after Germany's Die Welt reported that the ECB is swapping its 50 billion euros of Greek bond holdings at their nominal value for a profit and will distribute the profits to national governments and on into the debt crisis bailout program and (2) reduced safe-haven demand for the dollar as the stock market rallied. Bullish factors Thursday included (1) increased safe-haven demand for the dollar after Moody's Investors Service warned that ratings for global banks may be cut as lenders worldwide face risks of rising funding costs due to the European debt crisis, (2) weakness in the yen which fell to a 3-1/2 month low against the dollar as a rally in stocks reduced its safe-haven demand, and (3) the stronger-than-expected U.S. economic data on weekly jobless claims, Jan housing starts and the Feb Philadelphia ed manufacturing index, which signals economic strength and is dollar supportive.
• Mar crude oil prices this morning are up +45 cents a barrel and Mar gasoline is -0.59 of a cent per gallon. Crude oil and gasoline prices Thursday traded on either side of unchanged and finished higher as a rally in the dollar was offset by stronger-than-expected U.S. economic data that suggests energy demand may strengthen: CLH12 +$0.51, RBH +4.04. Bullish factors included (1) the unexpected decline in weekly initial U.S. unemployment claims to near a 4-year low along with the stronger-than-expected Jan housing starts and Feb Philadelphia Fed manufacturing index, which indicate economic strength that is supportive for energy demand and (2) strength in gasoline on concern that more refinery outages will threaten the supply of gasoline for the summer driving season after Exxon Mobile took its Beaumont, Texas refinery offline for repairs and Marathon Petroleum shut its Garyville, Louisiana plant after a power failure. Bearish factors included (1) the rally in the dollar index to a 3-week high, which discourages investment demand in commodities, (2) the statement from China's commerce industry that said the outlook for foreign investment in China and trade this year is "grim," which is negative for fuel demand, and (3) the monthly report from the ECB that said forecasters lowered their 2012 and 2013 Euro-Zone GDP forecasts, which signals reduced energy consumption in Europe.

Today's U.S. Earnings Reports Earnings reports (confirmed releases, sorted by mkt cap): VTR-Ventas (BEST earnings consensus $0.33), HNZ-HJ Heinz (0.85), CPB-Campbell Soup (0.62), EEP-Enbride Energy Partners LP (0.38), CEG-Constellation Energy Group (0.67), DLR-Digital Realty Trust (0.30), LECO-Lincoln Electric Holdings (0.63), AGP-Amerigroup (0.62), HMSY-HMS Holdings (0.17), CKH-SEACOR Holdings (1.28), LPNT-LifePoint Hospitals (0.76), HGIC-Harleysville Group (0.65), GMLP-Golar LNG Partners LP (0.47), B-Barnes Group (0.32), POL-PolyOne (0.14), PPC-Pilgrim's Pride (-0.30).
Global Financial Calendar

Friday 2/17/12
United States
0830 ET	Jan CPI expected +0.3% m/m and +2.8% y/y, Dec unchanged m/m and +3.0% y/y. Jan CPI ex food & energy expected +0.2% m/m and +2.2% y/y, Dec +0.1% m/m and +2.2% y/y.
1000 ET	Jan leading indicators expected +0.5%, Dec +0.4%.
Germany
0200 ET	Jan German producer prices expected +0.3% m/m and +3.2% y/y, Dec -0.4% m/m and +4.0% y/y.
United Kingdom
0430 ET	Jan U.K. retail sales ex auto fuel expected -0.3% m/m and -0.1% y/y, Dec +0.6% m/m and +1.7% y/y.
0430 ET	Jan U.K. retail sales with auto fuel expected -0.3% m/m and +0.5% y/y, Dec +0.6% m/m and +2.6% y/y.
Euro-Zone
0500 ET	Dec Euro-Zone construction output, Nov +0.8% m/m and +0.2% y/y.
Canada
0700 ET	Jan Canada CPI expected +0.3% m/m and +2.3% y/y, Dec -0.6% m/m and +2.3% y/y.
0700 ET	Jan Bank of Canada core CPI expected unchanged m/m and +1.9% y/y, Dec -0.5% m/m and +1.9% y/y.
0830 ET	Jan Canada leading indicators expected +0.6% m/m, Dec +0.8% m/m.

Barchart.com provides Financial Quotes, Charts and Technical Analysis for Stock and Commodity Traders.

H J Heinz in an old favorite

This morning I was screening on Barchart for S&P 500 stocks that continue to hit new highs even when the overall market is down.  H J Heinz (HNZ) has hit 13 new highs and is up 6.58% last month in the same period the Value Line Index was down 2.11%.  The list of products they sell looks like my grocery shopping list.  They have made major acquisitions in the Latin American markets and let's face it the Latin American diet is very tomato based just like ours, so they should do well there.  The company has made a major investment in IT to help streamline inventory control and delivery.  I'd like the stock on its price momentum alone.

H J Heinz (HNZ)  -- and its subsidiaries manufacture and market an extensive line of processed food products throughout the world. The company's principal products include ketchup, condiments and sauces, frozen food, pet food, soups, beans and pasta meals, tuna and other seafood products, infant food and other processed food products.  Product brand names include: Heinz ketchup, Classico pasta sauces, Ore-Ida frozen potatoes, SmartOnes meals, and Plasmon baby food.

Factors to Consider:

Technical Factors:

• 100% Barchart technical buy signal
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 13 new highs and up 6.58% in the last month
• Relative Strength Index 79.72% and rising
• Trades around 54.55 with a 50 day moving average of 50.79

Fundamental Factors:

• Wall Street brokerage core holding for conservative investors
• Brokerage analysts have released 3 strong buy, 5 buy and 11 hold recommendations for their clients
• Sales are projected to increase by 1.80% this year and 7.10% next year
• Earnings are estimated to increase by 7.70% this year, 7.80% next year and 7.20% annually for the next 5 years
• Dividend rate of 3.90% is only 57% of earnings

General Investor Sentiment:

• As measured on Motley Fool over 1,102 readers have an opinion on this stock
• 767 CAPS members vote the stock will beat the market vs 46 who think it will lag
• The more experienced All Stars vote 279 to 10 for the same result

Summary:  For conservative investors looking for income and growth H J Heinz (HNZ) should be a sure bet to give a total return of 12.50% over the next 5 years.  Normally, I do not use the term "sure bet" but this company has an A+ financial strength with a score of 100 for both price stability and earning predictability.  This is one of those time when you should be able to have a little faith in the numbers.