Showing posts with label HUM. Show all posts
Showing posts with label HUM. Show all posts

Tuesday, October 17, 2017

Morning Call 10/17

Barchart Morning Call

Barchart.com - Tue Oct 17, 6:38AM CDT
OVERNIGHT MARKETS AND NEWS
Dec E-mini S&Ps (ESZ17 -0.02%) this morning are little changed, down -0.03%, and European stocks are up +0.08%. U.S. stock indexes were consolidating their gains from Monday's rally to new all-time highs. The upside in European stocks was limited after Spain cut its 2018 GDP estimate to 2.3% from 2.6%, citing the impact of the political standoff in Catalonia. Also, the German Oct ZEW survey expectations of economic growth rose less than expected. Asian stocks settled mostly higher: Japan +0.38%, Hong Kong +0.02%, China -0.19%, Taiwan -0.47%, Australia +0.73%, Singapore +0.18%, South Korea +0.21%, India -0.08%. Chinese stocks retreated ahead of a meeting of Chinese Communist Party leaders on Wednesday, while Japan's Nikkei Stock Index rallied to a new 20-3/4 year high on optimism in the global economic outlook along with carry-over support from Monday's rally in U.S stocks to new record highs. 

The dollar index (DXY00 +0.25%) is up +0.22% after several people with knowledge of the matter said that John Taylor, a known hawk, made a favorable impression on President Trump after his interview with the President for Fed Chair. EUR/USD (^EURUSD) is down -0.31% on the prospects for the ECB to extend QE after Spain cut its 2018 GDP forecasts and after the German Oct ZEW came in lower than expected. USD/JPY (^USDJPY) is down -0.02%.
Dec 10-year T-note prices (ZNZ17 -0.01%) are little changed, down -0.5 of a tick.
The German Oct ZEW survey expectations of economic growth rose +0.6 to 17.6, weaker than expectations of +3.0 to 20.0.
The UK Sep CPI of +0.3% m/m and +3.0% y/y was right on expectations with the +3.0% y/y gain the fastest year-on-year pace of increase in 5-1/2 years. The Sep core CPI rose +2.7% y/y, right on expectations and the fastest pace of growth in 5-3/4 years.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) Sep import price index (expected +0.6% m/m and +2.6% y/y, Aug +0.6% m/m and +2.1% y/y), (2) Sep industrial production (expected +0.2%, Aug -0.9% m/m), (3) Oct NAHB housing market index (expected unch at 64, Sep -3 to 64).
Notable S&P 500 earnings reports today include: Goldman Sachs (consensus $4.25), Morgan Stanley (0.82), IBM (3.28), UnitedHealth Group (2.57, Johnson & Johnson (1.80), Navient (0.51), Harley-Davidson (0.40), Progressive Corp (0.35).
U.S. IPO's scheduled to price today: Qudian (QD).
Equity conferences this week: International Association for the Study of Lung Cancer World Conference - Abstra on Mon-Wed, BIO Investor Forum on Tue, METALCON Conference on Thu, SAP Retail Executive Forum on Thu, American Association for the Study of Liver Diseases Liver Meeting on Fri.

OVERNIGHT U.S. STOCK MOVERS
Briggs & Stratton (BGG +1.07%) was downgraded to 'Underperform' from 'Market Perform' at Raymond James.
Morgan Stanley (MS +1.33%) gained nearly 2% in pre-market trading after it reported Q3 FICC sales and trading revenue of $1.17 billion, better than consensus of $1.15 billion.
Humana (HUM -0.24%) was initiated a new 'Outperform' at BMO Capital Markets with a 12-month target price of $300.
Celgene (CELG +0.18%) was initiated a new 'Outperform' at Bernstein with a 12-month target price of $162.
Netflix (NFLX +1.60%) gained almost 2% in after-hours trading after it reported Q3 domestic streaming net adds of 850,000, more than consensus of 774,000, and then said it sees Q4 revenue of $3.27 billion, better than consensus of $3.16 billion.
Sonic (SONC +1.72%) lost over 2% in after-hours trading after it reported Q4 revenue of $123.6 million, less than consensus of $125 million.
Badger Meter (BMI -1.17%) slumped 11% in after-hours trading after it reported Q3 EPS of 27 cents, below consensus of 35 cents.
KMG Chemicals ({=KMG rose over 2% in after-hours trading after it forecast full-year net sales of $435 million-$450 million, well above consensus of $386.5 million.
Brown & Brown (BRO -0.85%) dropped 5% in after-hours trading after it reported Q3 revenue of $475.6 billion, below consensus of $476 million.
Spirit Airlines (SAVE -0.98%) climbed 5% in after-hours trading after it reported traffic in Sep was up +5.9% and that it now sees Q3 traffic down -6.5% y/y, less than a prior forecast of down -7% y/y to -8.5% y/y.
Caesars Entertainment (CZR -2.47%) may move higher on the opening today after Apollo Global Management reported a 15% stake in the company.
Abeona Therapeutics (ABEO +3.73%) slid 4% in after-hours trading after it announced a public offering of common stock, although no size was given.
Immune Design (IMDZ -7.76%) jumped 9% in after-hours trading after it said it will start a Phase 3 trial of its CMB305 drug as a vaccine for patients with synovial sarcoma.
KalVista Pharmaceuticals (KALV -2.77%) gained 3% in after-hours trading after Director Rajeev Shah reported a purchase of 850,000 shares on Oct 12 at $8.50 apiece.
MARKET COMMENTS
Dec S&P 500 E-mini stock futures (ESZ17 -0.02%) this morning are down -0.75 points (-0.03%). Monday's closes: S&P 500 +0.18%, Dow Jones +0.37%, Nasdaq +0.36%. The S&P 500 on Monday climbed to a new record high and closed higher on a rally in energy stocks as crude oil prices climbed +0.82% to a 2-week high and on strength in mining stocks after copper prices surged +3.37% to a 3-year high. Stocks were also boosted by signs of strength in the U.S. economy after the Oct Empire manufacturing index unexpectedly rose +7.8 to 30.2, stronger than expectations of -4.0 to 20.4 and a 3-year high.
Dec 10-year T-note prices (ZNZ17 -0.01%) this morning are down -0.5 of a tick. Monday's closes: TYZ7 +10.00, FVZ7 +5.25. Dec 10-year T-notes on Monday closed lower on the unexpected +7.9 point increase in the U.S. Oct Empire manufacturing index to a 3-year high of 30.2 and by comments from Fed Chair Yellen that her "best guess" is that consumer prices will soon accelerate after a period of surprising softness and that "the ongoing strength in the economy will warrant gradual increases" in the Fed funds rate.
The dollar index (DXY00 +0.25%) this morning is up +0.202 (+0.22%). EUR/USD (^EURUSD) is down -0.0037 (-0.31%) and USD/JPY (^USDJPY) is down -0.02 (-0.02%). Monday's closes: Dollar Index +0.183 (+0.20%), EUR/USD -0.0024 (-0.20%), USD/JPY +0.37 (+0.33%). The dollar index on Monday closed higher on comments on Saturday from Fed Chair Yellen who said that "the ongoing strength of the economy will warrant gradual increases" in the Fed funds rate. There was also weakness in EUR/USD after the 10-year German bund yield fell to a 1-month low, which reduces the euro's interest rate differentials.
Nov crude oil (CLX17 +0.40%) this morning is up +25 cents (+0.48%) and Nov gasoline (RBX17 +0.78%) is +0.0124 (+0.77%). Monday's closes: Nov WTI crude +0.42 (+0.82%), Nov gasoline -0.0053 (-0.33%). Nov crude oil and gasoline on Monday settled mixed with Nov crude at a 2-week high. Crude oil prices were boosted by concern that tensions between Iraq and Kurdish forces may disrupt crude oil flows after Iraqi soldiers seized oil facilities including a refinery from Kurdish forces. Crude oil prices were undercut by a stronger dollar and by Kuwaiti Oil Minister Essam al-Marzouk's comment that OPEC may not need to extend its crude production cuts beyond March 2018 if everyone complies with their quotas.
Metals prices this morning are weaker with Dec gold (GCZ17 -1.02%) -11.9 (-0.91%), Dec silver (SIZ17 -1.72%) -0.249(-1.43%) and Dec copper (HGZ17 -0.88%) -0.033 (-1.00%). Monday's closes: Dec gold -1.6 (-0.12%), Dec silver -0.042(-0.24%), Dec copper +0.1055 (+3.37%). Metals on Monday settled mixed with Dec copper at a 3-year nearest-futures high. Metals prices were boosted by fund buying of copper on speculation that Chinese demand will strengthen after China Sep producer prices rose +6.9% y/y, the fastest pace of increase in 6 months. There was also increased demand for gold as an inflation hedge after Fed Chair Yellen said that her "best guess" is that consumer prices will soon accelerate after a period of surprising softness. Metals prices were undercut by a stronger dollar and and by reduced safe-haven demand with the rally in the S&P 500 to a new record high.
GLOBAL EVENT CALENDAR10/17/2017
Tuesday, Oct 17
US0830 ETSep import price index expected +0.6% m/m and +2.6% y/y, Aug +0.6% m/m and +2.1% y/y. Sep import price index ex-petroleum expected +0.1% m/m, Aug +0.3% m/m.
0830 ETSep export price index expected +0.5% m/m, Aug +0.6% m/m and +2.3% y/y.
0915 ETSep industrial production expected +0.3%, Aug -0.9% m/m. Sep manufacturing production expected +0.2%, Aug -0.3% m/m. Sep capacity utilization expected +0.1 to 76.2%, Aug -0.8 to 76.1%.
1000 ETOct NAHB housing market index expected unch at 64, Sep -3 to 64.
Wednesday, Oct 18
US0700 ETWeekly MBA mortgage applications, previous -2.1% with purchase sub-index -0.1% and refi sub-index -4.2%.
0800 ETNew York Fed President William Dudley (voter) and Dallas Fed President Robert Kaplan (voter) take part in a moderated discussion on economic development.
0830 ETSep housing starts expected -0.4% to 1.175 million, Aug -0.8% to 1.18 million. Sep building permits expected -2.3%to 1.243 million, Aug +3.4% to 1.272 million.
1030 ETEIA weekly Petroleum Status Report.
1400 ETFed Beige Book.
U.S. STOCK CALENDAR10/17/2017
NameTickerTimeDescriptionPeriodEstimate
UnitedHealth Group IncUNH US05:55Q3 2017 Earnings ReleaseQ3 172.565
Synovus Financial CorpSNV USBef-mktQ3 2017 Earnings ReleaseQ3 170.646
Progressive Corp/ThePGR USBef-mktQ3 2017 Earnings Release - September SalesQ3 170.348
Comerica IncCMA US06:40Q3 2017 Earnings ReleaseQ3 171.212
Johnson & JohnsonJNJ US06:40Q3 2017 Earnings ReleaseQ3 171.803
Harley-Davidson IncHOG US06:55Q3 2017 Earnings ReleaseQ3 170.395
Morgan StanleyMS US07:00Q3 2017 Earnings ReleaseQ3 170.816
Goldman Sachs Group Inc/TheGS US07:30Q3 2017 Earnings ReleaseQ3 174.252
Brown & Brown IncBRO US08:00Q3 2017 Earnings CallQ3 17
WW Grainger IncGWW US08:00Q3 2017 Earnings ReleaseQ3 172.556
Comerica IncCMA US08:00Q3 2017 Earnings CallQ3 17
Prologis IncPLD US08:00Q3 2017 Earnings ReleaseQ3 170.664
Morgan StanleyMS US08:15Q3 2017 Earnings CallQ3 17
Omnicom Group IncOMC US08:30Q3 2017 Earnings CallQ3 17
Synovus Financial CorpSNV US08:30Q3 2017 Earnings CallQ3 17
Johnson & JohnsonJNJ US08:30Q3 2017 Earnings CallQ3 17
CSX CorpCSX US08:30Q3 2017 Earnings CallQ3 17
UnitedHealth Group IncUNH US08:45Q3 2017 Earnings CallQ3 17
Harley-Davidson IncHOG US09:00Q3 2017 Earnings CallQ3 17
Goldman Sachs Group Inc/TheGS US09:30Q3 2017 Earnings CallQ3 17
Celanese CorpCE US10:00Q3 2017 Earnings CallQ3 17
Cintas CorpCTAS US10:00Annual General Meeting
IDEX CorpIEX US10:30Q3 2017 Earnings CallQ3 17
Equity LifeStyle Properties IncELS US11:00Q3 2017 Earnings CallQ3 17
WW Grainger IncGWW US11:00Q3 2017 Earnings CallQ3 17
Omnicom Group IncOMC USQ3 2017 Earnings ReleaseQ3 171.095
Prologis IncPLD US12:00Q3 2017 Earnings CallQ3 17
Navient CorpNAVI USAft-mktQ3 2017 Earnings ReleaseQ3 170.506
International Business Machines CorpIBM US16:00Q3 2017 Earnings ReleaseQ3 173.28
Lam Research CorpLRCX USAft-mktQ1 2018 Earnings ReleaseQ1 183.276
Interactive Brokers Group IncIBKR US16:00Q3 2017 Earnings ReleaseQ3 170.378
Interactive Brokers Group IncIBKR US16:30Q3 2017 Earnings CallQ3 17
International Business Machines CorpIBM US17:00Q3 2017 Earnings CallQ3 17
Pinnacle Financial Partners IncPNFP US17:00Q3 2017 Earnings ReleaseQ3 170.896
Lam Research CorpLRCX US17:00Q1 2018 Earnings CallQ1 18
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Monday, October 9, 2017

Morning Call 10/9

Barchart Morning Call

Barchart.com - Mon Oct 9, 6:47AM CDT
OVERNIGHT MARKETS AND NEWS
Dec E-mini S&Ps (ESZ17 +0.19%) this morning are up +0.16% and European stocks are up +0.04% at a 4-1/2 month high on signs the global economic recovery can continue. German Aug industrial production jumped +2.6% m/m, the biggest increase in 6-years, and Eurozone Oct Sentix investor confidence rose +1.5 to 29.7, a 10-1/4 year high. Also, the crisis in Spain eased as Spain's IBEX Stock Index is up +0.67% after a senior member of the Catalan administration called for dialogue with Spain. Turkey's ISE Stock Index slumped -3.05% and the Turkish lira fell to an 8-1/2 month low against the dollar as a diplomatic spat between the two countries escalated after both the U.S. and Turkey suspended visa services for citizens looking to visit the other country. Asian stocks settled mostly higher: Japan, Taiwan and South Korea closed for holiday. Hong Kong -0.46%, China +0.76%, Australia +0.50%, Singapore +0.01%, India +0.10%. China's Shanghai Composite rallied to a 1-3/4 year high as it reopened following a week long holiday, although prices fell back from their best levels as real estate companies retreated after the Economic Information Daily said that new home sales declined in Beijing and Shanghai during the week-long National Day holiday.
The dollar index (DXY00 -0.14%) is down -0.12%. EUR/USD (^EURUSD) is up +0.14%. USD/JPY (^USDJPY) is down -0.02%.
Dec 10-year T-note prices (ZNZ17 +0.02%) are up +2.5 ticks.
The Eurozone Oct Sentix investor confidence rose +1.5 to 29.7, stronger than expectations of +0.3 to 28.5 and the highest in 10-1/4 years.
German Aug industrial production rose +2.6% m/m, stronger than expectations of +0.9% m/m and the biggest increase in 6-years.
Boston Fed President Rosengren said, "Low inflation readings have provided monetary policy makers the opportunity to take a more patient approach to removing accommodation than in recent recoveries, however, failing to respond to very tight labor markets with rates remaining negative in real terms could potentially risk unnecessarily shortening the economic recovery."
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) U.S. government offices and cash Treasury trading closed for Columbus Day but exchanges are open.
Notable Russell 1000 earnings reports today include: none.
U.S. IPO's scheduled to price today: none.
Equity conferences this week: Cerner Health Conference on Mon-Wed, HR Technology Conference on Tue-Fri, National HUBZone Conference on Thu.
OVERNIGHT U.S. STOCK MOVERS
E*TRADE Financial (ETFC -2.36%) was upgraded to 'Buy' from 'Neutral' at Bank of America/Merrill Lynch with a price target of $49.
Yelp (YELP +0.73%) was downgraded to 'Neutral' from 'Overweight' at Cantor Fitzgerald.
Morgan Stanley (MS +0.26%) was upgraded to 'Outperform' from 'Neutral' at Credit Suisse with a price target of $54.
Activision Blizzard (ATVI +0.25%) was downgraded to 'Market Perform' from 'Outperform' at Cowen.
Humana (HUM +0.63%) was downgraded to 'Neutral' from 'Overweight' at JP Morgan Chase.
Goldman Sachs (GS -0.02%) was downgraded to 'Neutral' from 'Outperform' at Credit Suisse.
Express Scripts Holdings (ESRX -2.58%) may open lower this morning after it was downgraded to 'Underperform' from 'Market Perform' at Raymond James.
Viacom (VIA -0.98%) slid over 3% in pre-market trading after it was downgraded to 'Sell' from 'Neutral' at Citigroup who said that Viacom faces the "acute" risk that Charter Communications will stop carrying its content.
Tesla (TSLA +0.44%) fell -0.5% in after-hours trading after CEO Musk tweeted that that the unveiling of its semi-truck would be pushed back to Nov 16 from Oct 26 as the company diverts resources to fix Model 3 bottlenecks and increase battery production for Puerto Rico.
Medtronic Plc (MDT +0.38%) fell 2% in after-hours trading when it said that its Q2 quarterly revenue and earnings would be hurt by $250 million from the impact of Hurricane Maria.
Pershing Square said it cut its stake in Mondelez (MDLZ +0.07%) to 4.97% from a 5.60% stake reported on Sep 27.
Morgan Stanley cut its passive stake in Blue Apron (APRN -1.32%) to 1.4% from a 5.31% stake reported in Aug 2.
MARKET COMMENTS
Dec S&P 500 E-mini stock futures (ESZ17 +0.19%) this morning are up +4.00 points (+0.16%). Friday's closes: S&P 500 -0.11%, Dow Jones -0.01%, Nasdaq +0.12%. The S&P 500 on Friday closed lower on the unexpected decline in U.S. Sep non-farm payrolls by -33,000, which was weaker than expectations of +80,000 and the biggest decline in 7 years. Stocks were also undercut by ramped up expectations for a Fed rate hike in December after U.S. Sep average hourly earnings rose +2.9% y/y, stronger than expectations of +2.6% y/y and the largest year-on-year increase in 8-1/4 years. There were also increased geopolitical tensions that fueled long liquidation in stocks after Russia's news agency reported that North Korea might test a long-range ballistic missile over the weekend.
Dec 10-year T-note prices (ZNZ17 +0.02%) this morning are up +2.5 ticks. Friday's closes: TYZ7 -4.00, FVZ7 -3.25. Dec 10-year T-notes on Friday tumbled to a 5-3/4 month nearest futures low and closed lower on the stronger-than-expected +2.9% y/y increase in U.S. Sep average hours earnings, the most in 8-1/4 years, which bolsters the case for a Fed rate hike in December. There was also an increase in inflation expectations after the 10-year T-note breakeven inflation rate rose to a 1-week high. T-notes recovered most of their losses on increased safe-haven demand after the Russian news agency reported that North Korea plans to test a long-range ballistic missile this weekend.
The dollar index (DXY00 -0.14%) this morning is down -0.11 (-0.12%). EUR/USD (^EURUSD) is up +0.0017 (+0.14%) and USD/JPY (^USDJPY) is down -0.02 (-0.02%). Friday's closes: Dollar Index -0.161 (-0.17%), EUR/USD +0.0019 (+0.16%), USD/JPY -0.17 (-0.15%). The dollar index on Friday fell back from a 2-1/4 month high and closed lower on increased safe-haven demand for the yen after Russia's news agency reported that North Korea would test a long-range missile over the weekend. The dollar was also undercut by dovish comments from Dallas Fed President Kaplan who said, "he's not there yet" on a Fed rate hike in Dec. The dollar rallied to a 2-1/4 month high early after U.S. Sep average hourly earnings rose +2.9% y/y, the largest year-on-year increase in 8-1/4 years, which was hawkish for Fed policy.
Nov crude oil (CLX17 +0.18%) this morning is down -1 cents (-0.02%) and Nov gasoline (RBX17 -0.91%) is -0.0179 (-1.15%). Friday's closes: Nov WTI crude -1.50 (-2.95%), Nov gasoline -0.0526 (-3.26%). Nov crude oil and gasoline on Friday closed lower with Nov crude at a 3-week low. Crude oil prices were undercut by updated weather forecasts that call for Tropical Storm Nate to move away from the bulk of the U.S. oil production rigs in the Gulf of Mexico before it makes landfall on the Gulf Coast Sunday. Crude oil prices were also undercut by the sharp decline in the crack spread, which reduces the incentive for refineries to purchase crude oil to refine into gasoline.
Metals prices this morning are mixed with Dec gold (GCZ17 +0.75%) +10.4 (+0.82%) at a 1-week high, Dec silver (SIZ17+0.83%) +0.16 (+0.95%) at a 1-1/2 week high and Dec copper (HGZ17 -0.12%) -0.005 (-0.17%). Friday's closes: Dec gold +1.7 (+0.13%), Dec silver +0.152 (+0.91%), Dec copper -0.0175 (-0.57%). Metals on Friday settled mixed. Precious metals prices were boosted by increased safe-haven demand after Russia's news agency reported that North Korea would test a ballistic missile over the weekend. Copper was boosted by the -2,675 MT decline in LME copper inventories to a 3-week low. Metals prices were undercut by the stronger-than-expected U.S. Sep hourly earnings report of +2.9% y/y that bolstered the case for a Fed interest rate increase at the Dec FOMC meeting.
GLOBAL EVENT CALENDAR10/09/2017
Monday, Oct 9
USn/aU.S. government offices and cash Treasury trading closed for Columbus Day. Exchanges open.
Tuesday, Oct 10
US1000 ETMinneapolis Fed President Neel Kashkari (voter) speaks at a regional economic conference hosted by his bank.
1100 ETUSDA weekly grain export inspections.
1600 ETUSDA crop conditions and progress report.
2000 ETDallas Fed President Robert Kaplan (voter) speaks in a moderated Q&A at a Stanford Institute for Economic Policy Research Associates Meeting.
U.S. STOCK CALENDAR10/09/2017
NameTickerTimeDescriptionPeriodEstimate
Wal-Mart Stores IncWMT USInvestment Community Meeting Day - 1
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