MORNING CALL 12/21

Barchart Morning Call

Barchart.com - 3 hours ago

OVERNIGHT MARKETS AND NEWS

Mar E-mini S&Ps (ESH17 -0.08%) are little changed, down -0.07% in uninspired trade, and European stocks are down -0.37% on weakness in bank stocks. Spanish bank stocks sold-off, with Banco Sabadell SA down over 7% and Banco Popular down 10%, which put pressure on the overall market after the EU Court of Justice ruled that borrowers in Spain who paid too much interest on home loans pre-dating a May 2013 Spanish court ruling on mortgage floors are entitled to a refund from their banks. Stock losses were contained on strength in energy producing companies as Feb WTI crude oil (CLG17 +0.56%) is up +0.68% after the API reported late yesterday that U.S. crude supplies dropped -4.15 million bbl last week. Also, reduced market anxiety is positive for stock prices as the VIX volatility index slid to a 4-1/4 month low. Asian stocks settled mixed: Japan -0.26%, Hong Kong +0.37%, China +1.11%, Taiwan -0.41%, Australia +0.40%, Singapore -0.33%, South Korea -0.19%, India -0.25%. Japan's Nikkei Stock Index posted a new 1-year high, but gave up its advance and closed lower as the yen strengthened against the dollar, which undercut exporter stocks.

The dollar index (DXY00 -0.35%) is down -0.15%. EUR/USD (^EURUSD) is up +0.21%. USD/JPY (^USDJPY) is down -0.48%.

Mar 10-year T-note prices (ZNH17 +0.05%) are up +2 ticks and garnered support from a rally in German bunds which climbed to a 3-week high.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly MBA mortgage applications (previous -4.0% with purchase sub-index -3.3% and refi sub-index -3.6%), (2) Nov existing home sales (expected -1.8% to 5.50 million, Oct +2.0% to 5.60 million), (3) EIA Weekly Petroleum Status Report.

Russell 1000 earnings reports today include: Accenture (consensus $1.50), Paychex (0.56), Bed Bath & Beyond (0.98), Red Hat (0.58), Micron Technology (0.27), Orbital ATK (1.39).

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

Equity conferences this week: none.

OVERNIGHT U.S. STOCK MOVERS

Goldman Sachs (GS +1.68%) was downgraded to 'Neutral' from 'Overweight' at Atlantic Securities with a 12-month target price of $240.

JetBlue Airways (JBLU +1.24%) was downgraded to 'Market Perform' from 'Outperform' at Raymond James.

Sunoco LP (SUN -8.02%) was upgraded to 'Outperform' from 'Neutral' at Credit Suisse with a target price of $31.

Goldcorp (GG -0.40%) was upgraded to 'Buy' from 'Hold' at TD Securities with a 12-month target price of $18.50.

Texas Instruments (TXN +0.64%) was rated a new 'Positive' at Susquehanna with a 12-month target price of $85.

Fluor (FLR -0.57%) gained 1% in after-hours trading after it was awarded a contract by Novo Nordisk to build a $2 billion manufacturing facility in Clayton, North Carolina.

BB&T (BBT +1.69%) boosted its 2016/17 share buyback program by $200 million.

Nike (NKE +1.85%) climbed 3% in after-hours trading after it reported Q2 EPS of 50 cents, higher than consensus of 43 cents. Under Armour (UAA -0.33%) also gained 1% on the news.

FedEx (FDX +0.57%) dropped 3% in after-hours trading after it reported Q2 adjusted EPS of $2.80, weaker than consensus of $2.91.

DexCom (DXCM +0.08%) gained almost 2% in after-hours trading after the FDA approved its G5 Mobile CGM system as the first and only continuous glucose monitoring system that can be used without finger pricking to test glucose levels.

Steelcase (SCS +3.38%) slumped 8% in after-hours trading after it reported Q3 revenue of $786.5 million, less than consensus of $787 million, and then lowered guidance on Q4 revenue to $735 million-$760 million, below consensus of $762 million.

MARKET COMMENTS

Mar E-mini S&Ps (ESH17 -0.08%) this morning are down -1.50 points (-0.07%). Tuesday's closes: S&P 500 +0.36%, Dow Jones +0.46%, Nasdaq +0.38%. The S&P 500 on Tuesday closed higher on carry-over support from a rally in Japan's Nikkei Stock Index to a 1-year high after Japan's Cabinet Office raised its Japan 2017 GDP forecast to 1.5% from +1.2%. In addition, energy producer stocks were boosted as the price of crude oil rose +0.85%.

Mar 10-year T-notes (ZNH17 +0.05%) this morning are up +2 ticks. Tuesday's closes: TYH7 -4.50, FVH7 -2.25. Mar 10-year T-notes on Tuesday closed lower on reduced safe-haven demand with the rally in stocks and on higher inflation expectations from the rally in crude oil prices.

The dollar index (DXY00 -0.35%) this morning is down -0.160 (-0.15%). EUR/USD (^EURUSD) is up +0.0022 (+0.21%). USD/JPY (^USDJPY) is down -0.57 (-0.48%). Tuesday's closes: Dollar index +0.150 (+0.15%), EUR/USD -0.0014 (-0.13%), USD/JPY +0.77 (+0.66%). The dollar index on Tuesday rallied to a 14-year high and closed higher on the increase in the 10-year T-note yield. In addition, there was strength in USD/JPY after the BOJ maintained its asset-purchase program and Japan's Cabinet Office lowered its Japan 2017 CPI estimate, which bolsters the case for additional BOJ easing.

Feb WTI crude oil prices (CLG17 +0.56%) this morning are up +36 cents (+0.68%) and Feb gasoline (RBG17 +0.35%) is +0.0059 (+0.37%) at a new 1-1/2 month high. Tuesday's closes: Feb crude +0.45 (+0.85%), Feb gasoline +0.0349 (+2.20%). Feb crude oil and gasoline on Tuesday closed higher with Feb gasoline at a 1-1/2 month high. Crude oil prices were boosted by expectations for Wednesday's EIA crude inventories to decline by -2.5 million bbl and by the increase in the crack spread to a 1-1/2 month high, which may boost refinery demand for crude to refine into gasoline. Crude oil prices were undercut by the rise in the dollar index to a 14-year high.

GLOBAL EVENT CALENDAR12/21/2016

		Wednesday, Dec 21
US	0700 ET	Weekly MBA mortgage applications, previous -4.0% with purchase sub-index -3.3% and refi sub-index -3.6%.
	1000 ET	Nov existing home sales expected -1.8% to 5.50 million, Oct +2.0% to 5.60 million.
	1030 ET	EIA Weekly Petroleum Status Report.
		Thursday, Dec 22
US	0830 ET	Weekly initial unemployment claims expected +3,000 to 257,000, previous -4,000 to 254,000. Weekly continuing claims expected -8,000 to 2.010 million, previous +11,000 to 2.018 million.
	0830 ET	Revised Q3 GDP expected 3.3% (q/q annualized), previous +3.2%. Q3 personal consumption expected unrevised at +2.8%. Q3 GDP price index expected unrevised at +1.4%. Q3 core PCE expected unrevised at +1.7% q/q.
	0830 ET	Nov durable goods orders expected -4.9% and +0.2% ex transportation, Oct +4.6% and +0.8% ex transportation. Nov capital goods new orders nondefense ex aircraft expected +0.4%, Oct +0.2%.
	0830 ET	Nov Chicago Fed national activity index expected -0.02 to -0.10, Oct +0.15 to -0.08.
	0830 ET	USDA weekly Export Sales.
	0900 ET	Oct FHFA house price index expected +0.5% m/m, Sep +0.6% m/m.
	1000 ET	Nov personal spending expected +0.3%, Oct +0.3%. Nov personal income expected +0.3%, Oct +0.6%.
	1000 ET	Nov PCE deflator expected +0.2% m/m and +1.5% y/y, Oct +0.2% m/m and +1.4% y/y. Nov core PCE deflator expected +0.1% m/m and +1.7% y/y, Oct +0.1% m/m and +1.7% y/y.
	1000 ET	Nov leading indicators expected +0.1%, Oct +0.1%.
	1100 ET	Dec Kansas City Fed manufacturing activity expected +3 to 4, Nov -5 to 1.
	1100 ET	Treasury announces amount of 2-year T-notes (previous $26 billion), 2-year floating-rate notes (previous $13 billion), 5-year T-notes (previous $34 billion) and 7-year T-notes (previous $28 billion) to be auctioned Dec 27-29.
	1300 ET	Treasury auctions $14 billion of 5-year TIPS.

U.S. STOCK CALENDAR12/21/2016

Company	Ticker	Time	Event Description	Period	Estimate
Paychex Inc	PAYX US	Bef-mkt	Q2 2017 Earnings Release	Q2 2017	0.555
Accenture PLC	ACN US	6:59	Q1 2017 Earnings Release	Q1 2017	1.496
Accenture PLC	ACN US	8:00	Q1 2017 Earnings Call	Q1 2017
Paychex Inc	PAYX US	9:30	Q2 2017 Earnings Call	Q2 2017
Bed Bath & Beyond Inc	BBBY US	16:15	Q3 2017 Earnings Release	Q3 2017	0.984
Red Hat Inc	RHT US	16:15	Q3 2017 Earnings Release	Q3 2017	0.579
Micron Technology Inc	MU US	16:30	Q1 2017 Earnings Call	Q1 2017
Bed Bath & Beyond Inc	BBBY US	17:00	Q3 2017 Earnings Call	Q3 2017
Red Hat Inc	RHT US	17:00	Q3 2017 Earnings Call	Q3 2017
Micron Technology Inc	MU US	Aft-mkt	Q1 2017 Earnings Release	Q1 2017	0.269
Orbital ATK Inc	OA US		Q3 2016 Earnings Release	Q3 2016	1.386
Raymond James Financial Inc	RJF US		November 2016 Sales and Revenue Release - Operating Data	2016

MORNING CALL 7/13

MORNING CALL 

Wednesday, July 13th, 2016View Older Reports

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OVERNIGHT MARKETS AND NEWS

Sep E-mini S&Ps (ESU16 +0.03%) are up +0.12% and European stocks are up +0.30% at a 2-week high on speculation central bank actions will be sufficient to contain the fallout from the Brexit vote. The BOE is expected to lower interest rates Thursday and Japanese Prime Minister Abe has ordered more fiscal stimulus. Strength in commodity producers is leading the overall market higher as the price of copper (HGU16 +1.42%) jumped +1.42% to a 2-1/4 month high. On the negative side, energy producers are lower as the price of crude oil (CLQ16 -1.26%) is down -1.37% after API data late yesterday showed U.S. crude stockpiles unexpectedly rose +2.2 million bbl. Asian stocks settled higher: Japan +0.84%, Hong Kong +0.46%, China +0.37%, Taiwan +0.18%, Australia +0.66%, Singapore +0.30%, South Korea +0.85%, India +0.03%. Asian stock markets followed other global bourses higher as China's Shanghai Composite rose to a 2-3/4 month high and Japan's Nikkei Stock Index climbed to a 1-month high.

The dollar index (DXY00 -0.05%) is down -0.11%. EUR/USD (^EURUSD) is up +0.19%. USD/JPY (^USDJPY) is up +0.12%.

Sep T-note prices (ZNU16 +0.18%) are up +5 ticks.

Eurozone May industrial production fell -1.2% m/m, a bigger decline than expectations of -0.8% m/m.

The China Jun trade balance shrank to a surplus of $48.11 billion, a bigger surplus than expectations of $45.65 billion. Jun exports fell -4.8% y/y, a smaller decline than expectations of -5.0% y/y, and Jun imports fell -8.4% y/y, a bigger decline than expectations of -6.2% y/y.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly MBA mortgage applications (previous +14.2% with purchase sub-index +4.3% and refi sub-index +20.8%), (2) Jun import price index (expected +0.5% m/m and -4.6% y/y, May +1.4% m/m and -5.0% y/y), (3) the Treasury's auction of $12 billion of 30-year T-bonds, (4) Jun monthly budget statement (expected +$23.0 billion, May -$52.507 billion), (5) Fed Beige Book, (6) Philadelphia Fed President Patrick Harker (non-voter) speaks on the economic outlook at an event in Philadelphia, and (7) EIA Weekly Petroleum Status Report.

Russell 1000 companies reporting earnings today: CSX (consensus $0.44), Yum Brands (0.74), PacWest Bancorp (0.69).

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

Equity conferences this week include: none.

OVERNIGHT U.S. STOCK MOVERS

Bank of America (BAC +2.50%) was rated a new 'Buy' at Berenberg with a price target of $15.

Whiting Petroleum (WLL +12.53%) was upgraded to 'Outperform' from 'Neutral' at Credit Suisse.

Darden Restaurants (DRI +0.29%) was downgraded to 'Market Perform' from 'Outperform' at Wells Fargo Securities.

Alexion Pharmaceuticals (ALXN +0.04%) was rated a new 'Outperform' at RBC Capital Markets with a 12-month price target of $188.

Michaels Cos (MIK +0.14%) dropped over 3% in after-hours trading after it started a secondary offering of 11 million shares of common stock.

Chesapeake Lodging Trust (CHSP +1.09%) slipped nearly 1% in after-hours trading after it said Q2 pro forma revpar rose +2.2%, below an April 28 forecast of up +4%-6%, citing continued headwinds at the start of the second half of the year.

AAR Corp. (AIR +4.33%) sank 10% in after-hours trading after it said it sees 2017 EPS continuing operations of $1.30-$1.40, well below consensus of $2.07.

Teva Pharmaceutical Industries Ltd. (TEVA +3.00%) gained nearly 2% in after-hours trading after it raised guidance on Q2 revenue to $4.9 billion-$5.0 billion from a prior view of $4.8 billion-$4.9 billion.

Fastenal (FAST -3.46%) was downgraded to 'Hold' from 'Buy' at Edward Jones.

Minneapolis Fed President Kashkari (non-voter) said the Fed can continue to be patient on raising interest rates as "there's not a huge urgency to raise rates because inflation is coming up low."

Juno Therapeutics (JUNO +1.68%) surged 33% in after-hours trading after the FDA removed the clinical hold on Juno's Phase 2 study of JCAR015 to treat lymphoblastic leukemia.

Avinger (AVGR -0.44%) lowered guidance on 2016 revenue to $19 million-$23 million from a prior view of $25 million-$30 million.

Orexigen Therapeutics (OREX +0.50%) rallied over 4% in after-hours trading after its top shareholder, Baupost, said it may convert/exercise notes/warrants of up to 4.7 million common shares.

MARKET COMMENTS

Sep E-mini S&Ps (ESU16 +0.03%) this morning are up +2.50 points (+0.12%). Tuesday's closes: S&P 500 +0.70%, Dow Jones +0.66%, Nasdaq +0.50%. The S&P 500 on Tuesday climbed to a fresh all-time high and closed moderately higher on carry-over support from a +1.7% rally in European stocks on reduced political uncertainty in Britain with Home Secretary May prepared to take over as the UK's next prime minister. Stocks were also boosted by a good beginning to U.S. Q2 company earnings season as Alcoa jumped 5% after it reported better-than-expected Q2 earnings.

Sep 10-year T-note prices (ZNU16 +0.18%) this morning are up +5 ticks. Tuesday's closes: TYU6 -20.50, FVU6 -9.25. Sep T-notes on Tuesday fell to a 1-week low and closed sharply lower on reduced safe-haven demand with the the rally in the S&P 500 to a new record high and on hawkish comments from Cleveland Fed President Mester who said she thinks "a gradual upward tilt for interest rates is appropriate for the U.S. economy."

The dollar index (DXY00 -0.05%) this morning is down -0.110 (-0.11%), EUR/USD (^EURUSD) is up +0.0021 (+0.19%) and USD/JPY (^USDJPY) is up +0.13 (+0.12%). Tuesday's closes: Dollar Index -0.130 (-0.13%), EUR/USD +0.0003 (+0.03%), USD/JPY +1.89 (+1.84%). The dollar index on Tuesday closed lower on the larger-than-expected decline in U.S. May JOLTS job openings to a 5-month low and strength in GBP/USD on reduced political uncertainty in Britain as Home Secretary May is prepared to take over as the UK's next prime minister. USD/JPY jumped to a 2-week high after Japanese Prime Minister Abe said he wants to "accelerate" Japan's exit from deflation, which suggests he favors additional yen-negative stimulus measures.

Aug WTI crude oil (CLQ16 -1.26%) prices this morning are down -64 cents (-1.37%) and Aug gasoline prices (RBQ16 -1.84%) are down -0.0268 (-1.87%). Tuesday's closes: CLQ6 +2.04 (+4.56%), RBQ6 +0.0466 (+3.37%). Aug crude oil and gasoline on Tuesday closed sharply higher on a weaker dollar, the rally in the S&P 500 to a record high, and expectations for Wednesday's weekly EIA data to show that U.S. crude inventories fell -3.5 million bbl.

GLOBAL EVENT CALENDAR07/13/2016

		Wednesday, July 13, 2016
US	0700 ET	Weekly MBA mortgage applications, previous +14.2% with purchase sub-index +4.3% and refi sub-index +20.8%.
	0830 ET	Jun import price index expected +0.5% m/m and -4.6% y/y, May +1.4% m/m and -5.0% y/y.
	1030 ET	EIA Weekly Petroleum Status Report.
	1300 ET	Treasury auctions $12 billion of 30-year T-bonds.
	1400 ET	Jun monthly budget statement expected +$23.0 billion, May -$52.507 billion.
	1400 ET	Fed Beige Book.
	1800 ET	Philadelphia Fed President Patrick Harker (non-voter) speaks on the economic outlook at an event in Philadelphia.
		Thursday, July 14, 2016
US	0830 ET	Weekly initial unemployment claims expected +11,000 to 265,000, previous -16,000 to 254,000. Weekly continuing claims expected +6,000 to 2.130 million, previous -44,000 to 2.124 million.
	0830 ET	Jun PPI final demand expected +0.3% m/m and -0.1% y/y, May +0.4% m/m and -0.1% y/y. Jun PPI ex food & energy expected +0.1% m/m and +1.0% y/y, May +0.3% m/m and +1.2% y/y.
	0830 ET	USDA weekly Export Sales.
	1100 ET	Treasury announces amount of 10-year TIPS (previous $11 billion) to be auctioned Jul 21.
	1115 ET	Atlanta Fed President Dennis Lockhart (non-voter) speaks at the Rocky Mountain Economic Summit in Victor, Idaho.
	1900 ET	Dallas Fed President Robert Kaplan (non-voter) speaks at the Official Monetary and Financial Institutions Forum in St. Louis about economic conditions and the role of monetary policy.
UK	0700 ET	BOE announces interest rate decision and asset purchase target, expected -25 bp cut in benchmark rate to 0.25% from 0.50% and asset purchase target to remain unchanged at 375 billion pounds.
CHI	2200 ET	China Q2 GDP expected +1.6% q/q and +6.6% y/y, Q1 +1.1% q/q and +6.7% y/y.
	2200 ET	China Jun industrial production expected +5.9% y/y, May +6.0% y/y.
	2200 ET	China Jun retail sales expected +9.9% y/y, May +10.0% y/y.

U.S. STOCK CALENDAR07/13/2016

Company	Ticker	Time	Event Description	Period	Estimate
Ionis Pharmaceuticals Inc	IONS	8:30	R&D Day	Y 2016
General Mills Inc	GIS	10:00	Investor Day	Y 2016
CSX Corp	CSX	Aft-mkt	Q2 2016 Earnings Release	Q2 2016	0.439
Yum! Brands Inc	YUM	Aft-mkt	Q2 2016 Earnings Release	Q2 2016	0.74
JetBlue Airways Corp	JBLU		June 2016 Sales and Revenue Release - Traffic Results	2016
PacWest Bancorp	PACW		Q2 2016 Earnings Release	Q2 2016	0.689

MORNING CALL 1/14

MORNING CALL

Thursday, January 14th, 2016View Older Reports

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OVERNIGHT MARKETS AND NEWS

March E-mini S&Ps (ESH16 +0.23%) are down -0.08% at a 3-1/2 month low and European stocks are down -2.67% at a 13-month low on global growth concerns. As expected, the BOE maintained its benchmark interest rate at 0.50% and kept its asset purchase target at 375 billion pounds following the conclusion of today's monetary policy meeting. U.S. stock index futures recovered from their worst levels as JPMorgan Chase climbed over +1% in pre-market trading after it reported better-than-expected Q4 earnings. Asian stocks settled mostly lower: Japan -2.68%, Hong Kong -0.59%, China +1.97%, Taiwan -1.04%, Australia -1.57%, Singapore -1.93%, South Korea -0.92%, India -0.33%. Japan's Nikkei Stock Index dropped to a 3-1/2 month low as it followed Wednesday's losses in U.S. stocks, although China's Shanghai Composite erased early losses and recovered from a 4-1/2 month low and closed higher on signs of increased government efforts to prop up shares after state funds entered the market to buy stocks and after Chinese stock exchanges vowed to step up monitoring of share sales by companies' major shareholders.

The dollar index (DXY00 -0.16%) is down -0.28%. EUR/USD (^EURUSD) is up +0.37%. USD/JPY (^USDJPY) is up +0.05%.

Mar T-note prices (ZNH16 -0.07%) are up +3.5 ticks on increased safe-haven demand as stocks falter along with reduced inflation expectations after the 10-year T-note breakeven inflation rate tumbled to a 3-1/2 month low.

The China Securities Regulatory Commission said the forthcoming registration system for initial public offerings won't lead to an oversupply of new shares.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly initial unemployment claims (expected -2,000 to 275,000, previous -10,000 to 277,000) and continuing claims (expected -20,000 to 2.210 million, previous +25,000 to 2.230 million), (2) Dec import price index (expected -1.4% m/m and -8.4% y/y, Nov -0.4% m/m and -9.4% y/y), (3) St. Louis Fed President James Bullard's speech to the Economic Club of Memphis, and (4) the Treasury's auction of $13 billion 30-year T-bonds.

There are 3 of the Russell 1000 companies that report earnings today: JP Morgan Chase (consensus $1.27), Intel (0.63), First Republic Bank (0.81).

U.S. IPO's scheduled to price today: Shimmick Constructions Co (SCCI).

Equity conferences during the remainder of this week: J.P. Morgan Health Care Conference on Mon-Thu.

OVERNIGHT U.S. STOCK MOVERS

Alcoa (AA -2.06%) was downgraded to 'Hold' from 'Buy' at Argus.

JPMorgan Chase (JPM -2.75%) climbed over 1% in pre-market trading after it reported Q4 EPS of $1.40, better than consensus of $1.27.

Fiat Chrysler Automobiles NV (FCA -4.40%) dropped over 4% in pre-market trading after Automotive News reported that two dealerships alleged the company offered dealers money to falsify sales,

CSX Corp. (CSX -5.70%) was upgraded to 'Buy' from 'Hold' at BB&T Capital Markets with a 12-month price target of $27.

Extra Space Storage (EXR -1.06%) rose 2% in after-hours trading after it was reported that it will replace Chubb in the S&P 500 after the close of trading this Friday, January 15.

GoPro (GPRO +0.07%) slumped over 20% in after-hours trading after it reported preliminary Q4 revenue of $435 million, below consensus of $510.9 million, and said it will cut 7%, or about 100 employees from its workforce.

Vail Resorts (MTN -3.84%) climbed over 3% in after-hours trading after it reported lift ticket revenue at its U.S. resorts was up +19% for the current season through Jan 10.

KB Home (KBH -2.95%) gained over 1% in after-hours trading after it said it will buy back up to 10 million shares.

JetBlue (JBLU -4.26%) rose over 1% in after-hours trading after it reported a +11.3% y/y increase in December traffic and a +9.5% increase in capacity, or available seat miles, to 4.6 million.

World Wrestling Entertainment (WWE -4.05%) climbed over 3% in after-hours trading after it was reported that it will replace Wausau Paper in the S&P SmallCap 600 on the close of trading Wednesday, January 20.

Aqua America (WTR -0.95%) fell nearly 2% in after-hours trading after it forecast 2016 EPS of $1.30-$1.35, below consensus of $1.36.

U.S. Concrete (USCR -3.90%) gained 4% in after-hours trading after it was announced that it will replace Extra Space Storage in the S&P SmallCap 600 on the close of trading this Friday, January 15.

MARKET COMMENTS

Mar E-mini S&Ps (ESH16 +0.23%) this morning are down -1.50 (-0.08%) points at a 3-1/2 month low. Wednesday's closes: S&P 500 -2.50%, Dow Jones-2.21%, Nasdaq -3.48%. The S&P 500 on Wednesday slumped to a 3-1/4 month low and closed sharply lower on negative carryover from a -2.42% sell-off in the China Shanghai Composite to a 4-1/2 month low and weakness in energy producer stocks after weekly EIA data showed supplies of crude oil and refined products continue to grow. Consumer discretionary stocks were led lower by a 10% plunge in BorgWarner on disappointing 2016 sales guidance.

Mar 10-year T-notes (ZNH16 -0.07%) this morning are up +3.5 ticks. Wednesday's closes: TYH6 +7.50, FVH6 +4.00. Mar T-Notes on Wednesday rose to a 2-1/2 month high and closed higher on the plunge in stocks, which spurred safe-haven demand buying of T-notes, and by dovish comments from Chicago Fed President Evans who said he backs an "even shallower" path for fed funds rate increases than his FOMC colleagues.

The dollar index (DXY00 -0.16%) this morning is down -0.281 (-0.28%). EUR/USD (^EURUSD) is up +0.0040 (+0.37%). USD/JPY (^USDJPY) is up +0.06 (+0.05%). Wednesday's closes: Dollar Index -0.041 (-0.04%), EUR/USD +0.0019 (+0.17%), USD/JPY +0.03 (+0.03%). The dollar index on Wednesday closed lower on comments from Chicago Fed President Evans who said the cost of raising the fed funds rate too fast "far exceed" costs of removing accommodation too slowly, which signals that he is not in favor of raising interest rates anytime soon. In addition, the Fed Beige Book stated that U.S. wage pressures are subdued and overall prices pressures are minimal, which may cause the Fed to pause on additional interest rate increases.

Feb crude oil (CLG16 +1.38%) this morning is up +26 cents (+0.85%) and Feb gasoline (RBG16 +2.40%) is up +0.0182 (+1.73%). Wednesday's closes: CLG6 +0.04 (+0.13%), RBG6 -0.0320 (-2.95%). Feb crude oil and gasoline prices on Wednesday settled mixed with Feb gasoline at a 6-3/4 year low. Crude oil prices were undercut by the +8.44 million bbl surge in weekly EIA gasoline inventories to a 10-1/2 month high and the +6.14 million bbl increase in EIA distillate stockpiles to a 5-year high of 165.5 million bbl. Crude oil prices founds support on (1) the +234,000 bbl increase in EIA crude inventories, less than expectations of +2.0 million bbl, and (2) strong Chinese demand after Chinese customs data showed China 2015 crude imports rose +8.8% y/y to a record 334 MMT.

GLOBAL EVENT CALENDAR01/14/2016

US	0830 ET	Weekly initial unemployment claims expected -2,000 to 275,000, previous -10,000 to 277,000. Weekly continuing claims expected-20,000 to 2.210 million, previous +25,000 to 2.230 million.
	0830 ET	Dec import price index expected -1.4% m/m and -8.4% y/y, Nov -0.4% m/m and -9.4% y/y.
	0830 ET	USDA weekly Export Sales.
	0830 ET	St. Louis Fed President James Bullard speaks to the Economic Club of Memphis.
	1100 ET	Treasury announces amount of 10-year TIPS to be auctioned Jan 21 (previous $13 billion).
	1300 ET	Treasury auctions $13 billion 30-year T-bonds.
JPN	0100 ET	Japan Dec machine tool orders, Nov -17.7% y/y.
GER	0200 ET	German Dec wholesale price index, Nov -0.2% m/m and -1.1% y/y.
UK	0700 ET	BOE announces interest rate decision and asset purchase target, expected no change to the 0.50% benchmark rate or to the 375 billion pound asset purchase target.

U.S. STOCK CALENDAR01/14/2016

Company	Ticker	Time	Event Description	Period	Estimate
JPMorgan Chase & Co	JPM US	6:45	Q4 2015 Earnings Release	Q4 2015	1.27
Domino's Pizza Inc	DPZ US	8:00	Investor Day	Y 2016
First Republic Bank/CA	FRC US	8:00	Q4 2015 Earnings Release	Q4 2015	0.812
JPMorgan Chase & Co	JPM US	8:30	Q4 2015 Earnings Call	Q4 2015
Aqua America Inc	WTR US	9:00	Analyst Day	Y 2016
First Republic Bank/CA	FRC US	10:00	Q4 2015 Earnings Call	Q4 2015
Danaher Corp	DHR US	17:00	ITC Decision Due in Instradent vs. Danaher Corp. Patent Case
Intel Corp	INTC US	17:00	Q4 2015 Earnings Call	Q4 2015
Intel Corp	INTC US	Aft-mkt	Q4 2015 Earnings Release	Q4 2015	0.633
Best Buy Co Inc	BBY US		Sales Release

MORNING CALL 12/11

MORNING CALL

Friday, December 11th, 2015View Older Reports

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OVERNIGHT MARKETS AND NEWS

March E-mini S&Ps (ESH16 -0.86%) are down -0.77% at a 3-1/2 week low and European stocks are down -1.52% at a 1-3/4 month low on concern over a slowdown in China after China Nov new loans rose less than expected. Also, energy producers are lower as the price of crude oil (CLF16 -1.33%) fell to a fresh 6-3/4 year low after the IEA said the global oil surplus will last until late next year as demand growth slows and OPEC shoes "renewed determination" to maximize output. Asian stocks settled mostly lower: Japan +0.97%, Hong Kong -1.11%, China -0.61%, Taiwan -1.22%, Australia-0.16%, Singapore -0.49%, South Korea -0.10%, India -0.82%. Japanese stocks went against the trend and closed higher as raw-material stocks rallied and led the overall market after industrial metals rose with copper (HGH16 +1.54%) at a 3-week high.

The dollar index (DXY00 -0.17%) is down -0.20%. EUR/USD (^EURUSD)is up +0.27% after ECB Executive Board member Coeure said the Eurozone deflation risk is now "off the table." USD/JPY (^USDJPY) is down -0.14%.

Mar T-note prices (ZNH16 +0.26%) are up +7.5 ticks.

China Nov new yuan loans rose 708.9 billion yuan, less than expectations of 735.0 billion yuan.

ECB Executive Board member Coeure said the Eurozone risk is now "off the table" as the ECB "sees a recovery in the Eurozone, which is firming now. Growth is accelerating. It remains weak but it is going in the right direction."

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Nov retail sales (expected +0.2% and +0.3% ex autos, Oct +0.1% and +0.2% ex autos), (2) Nov final-demand PPI (expected unch m/m and -1.4% y/y, Oct -0.4% m/m and -1.6% y/y) and Nov PPI ex food & energy (expected +0.1% m/m and +0.2% y/y, Oct -0.3% m/m and +0.1% y/y), (3) Oct business inventories (expected +0.1%, Sep +0.3%), (4) preliminary-Dec University of Michigan U.S. consumer sentiment index (expected +0.7 to 92.0, Nov +1.3 to 91.3).

None of the Russell 1000 companies report earnings today.

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

Equity conferences today include: none.

OVERNIGHT U.S. STOCK MOVERS

Teradata (TDC +1.74%) was rated a new 'Sell' at Goldman Sachs with a price target of $26.

Chipotle Mexican Grill (CMG +5.00%) was downgraded to 'Hold' from 'Buy' at Argus.

Adobe Systems (ADBE -0.67%) rose over 5% in after-hours trading after it reported Q4 adjusted EPS of 62 cents, above consensus of 60 cents, and reported its Q4 creative cloud subscriptions rose 933,000, higher than estimates of 697,000.

Electronic Arts (EA -1.07%) rallied over 2% in after-hours trading after it said it is creating an e-sports division for live events and broadcasts.

Allegheny Technologies (ATI +14.12%) dropped more than 1% in after-hours trading after it cut its quarterly dividend to 8 cents a share from 18 cents, citing challenging market conditions for flat rolled products and grain-oriented electrical steel products.

Restoration Hardware Holdings (RH -0.69%) climbed over 7% in after-hours trading after it reported Q3 adjusted EPS of 65 cents, higher than consensus of 63 cents, and then raised guidance on Q4 revenue to $708 million-$718 million from a previous estimate of $698 million-$708 million, above consensus of $704/1 million.

JetBlue Airways (JBLU +0.43%) slipped nearly 3% in after-hours trading after it said it sees it expects its Q4 preliminary passenger revenue per available seat mile (PRASM) to fall between -2.0% and -3.0% y/y.

Finisar (FNSR -0.94%) surged over 12% in after-hours trading after it reported Q2 adjusted EPS of 25 cents, better than consensus of 23 cents.

United Technologies (UTX -0.31%) rose over 1% in after-hours trading after it revealed a $1.5 billion restructuring plan to be implemented through 2018 that it said will provide $900 million in annualized savings when completed.

Nordson (NDSN -1.10%) slid over 4% in after-hours trading after it reported Q4 adjusted EPS of 95 cents, below consensus of $1.07,

Vince Holding (VNCE +6.21%) dropped nearly 8% in after-hours trading after it reported Q3 comparable sales including e-commerce fell -12.5%, a bigger decline than consensus of -3.4%, and lowered guidance on its top end of fiscal 2015 sales to $285 million-$290 million from $285 million-$295 million, below consensus of $289.2 million.

SunEdison (SUNE +3.28%) jumped over 6% in after-hours trading after it said it sold its Bingham and Oakfield wind farm assets, which produce 333 MW of wind-power, to Terra Nova Renewable Partners, a strategic partnership formed between SunEdison and institutional investors, for $209 million.

MARKET COMMENTS

Mar E-mini S&Ps (ESH16 -0.86%) this morning are down -15.75 points (-0.77%) at a 3-1/2 week low. Thursday's closes: S&P 500 +0.23%, Dow Jones +0.47%, Nasdaq +0.45%. The S&P 500 on Thursday closed higher on a rally in airline stocks crude oil fell to a 6-3/4 year low and on slack import price pressures after the U.S. Nov import price index fell -0.4% m/m and -9.4% y/y. Stock prices were undercut by weakness in energy producers as crude oil fell to a fresh 6-3/4 year low and by the +13,000 increase in U.S. weekly initial unemployment claims to 282,000, more than expectations of +1,000 to 270,000 and the highest in 5 months.

Mar 10-year T-notes (ZNH16 +0.26%) this morning are up +7.5 ticks. Thursday's closes: TYH6 -11.00, FVH6 -7.25. Mar T-notes Thursday closed lower on reduced safe-haven demand with the strength in stock prices and on supply pressures after the Treasury auctioned $13 billion of 30-year T-bonds.

The dollar index (DXY00 -0.17%) this morning is down -0.198 (-0.20%). EUR/USD (^EURUSD) is up +0.0029 (+0.27%). USD/JPY (^USDJPY) is down-0.17 (-0.14%). Thursday's closes: Dollar Index +0.594 (-1.15%), EUR/USD -0.0084 (-0.76%), USD/JPY +0.12 (+0.10%). The dollar index on Thursday closed higher on divergent central bank policies that benefit the dollar with the Fed expected to raise interest rates next week while the BOJ, ECB and PBOC maintain or expand their monetary stimulus. In addition, there was weakness in EUR/USD after comments from ECB Governing Council members Jazbec and Liikanen who both said the ECB is ready to use more measures if needed to achieve its price stability targets.

Jan crude oil (CLF16 -1.33%) this morning is down -53 cents (-1.44%) at a fresh 6-3/4 year low and Jan gasoline (RBF16 +0.42%) is up +0.0100 (+0.78%). Thursday's closes: CLF6 -0.58 (-1.56%), RBF6 +0.0448 (+3.64%). Jan crude oil and gasoline in Thursday settled mixed with Jan crude at a 6-3/4 year low. Crude oil prices were hurt by a stronger dollar and by concern the global oil glut will persist after OPEC raised its oil production target last Friday. Gasoline closed higher on signs of strong demand from refiners as the crack spread jumped to a 3-1/4 month high.

GLOBAL EVENT CALENDAR12/11/2015

US	0830 ET	Nov retail sales expected +0.2% and +0.3% ex autos, Oct +0.1% and +0.2% ex autos.
	0830 ET	Nov PPI final demand expected unch m/m and -1.4% y/y, Oct -0.4% m/m and -1.6% y/y. Nov PPI ex food & energy expected +0.1% m/m and +0.2% y/y, Oct -0.3% m/m and +0.1% y/y.
	1000 ET	Oct business inventories expected +0.1%, Sep +0.3%.
	1000 ET	U.S. Dec preliminary University of Michigan consumer sentiment expected +0.7 to 92.0, Nov +1.3 to 91.3.
GER	0200 ET	Revised German Nov CPI (EU harmonized), preliminary +0.1% m/m and +0.3% y/y.
	0200 ET	German Nov wholesale price index, Oct -0.4% m/m and -1.6% y/y.
UK	0430 ET	UK Oct construction output expected +1.0% m/m and -1.1% y/y, Sep -0.2% m/m and -1.6% y/y.
	0430 ET	BOE quarterly inflation expectations.

U.S. STOCK CALENDAR12/11/2015

Company	Ticker	Time	Event Description	Period	Estimate
Medtronic PLC	MDT US	3:00	Annual General Meeting	Y 2015
WW Grainger Inc	GWW US	8:00	November 2015 Sales and Revenue Call	2015
WW Grainger Inc	GWW US	8:00	November 2015 Sales and Revenue Release	2015
MetLife Inc	MET US	8:00	Business Update Call
Towers Watson & Co	TW US	8:00	Extraordinary Shareholders Meeting - Merger Vote	Y 2015
Nielsen Holdings PLC	NLSN US	8:00	Analyst Day	Y 2015
Nordson Corp	NDSN US	8:30	Q4 2015 Earnings Call	Q4 2015
MSG Networks Inc	MSGN US		Annual General Meeting
Palo Alto Networks Inc	PANW US		Annual General Meeting