Showing posts with label JPM. Show all posts
Showing posts with label JPM. Show all posts

Thursday, October 12, 2017

MORNING CALL 10/12

Barchart Morning Call

OVERNIGHT MARKETS AND NEWS
Dec E-mini S&Ps (ESZ17 -0.21%) this morning are down -0.15% and European stocks are down -0.19% as weakness in crude oil prices drags energy stocks lower. Nov WTI crude oil (CLX17 -1.54%) is down -1.54% after API data late Wednesday showed that U.S. crude stockpiles rose +3.1 million bbl last week. Also, a -0.6% decline in JPMorgan Chase in pre-market trading is undercutting stock indexes after it reported Q3 FICC sales and trading revenue of $3.16 billion, below consensus of $3.18 billion. A rally in mining stocks is limiting the downside in equity markets as metals prices moved higher. Dec COMEX gold (GCZ17 +0.71%) is up +0.64% and Dec silver (SIZ17 +0.71%) climbed +0.60% to 2-week highs and Dec copper (HGZ17 +0.57%) is up +0.44% and posted a 1-month high after the minutes of the Sep 19-20 FOMC meeting on Wednesday afternoon showed policy makers were concerned about low inflation, which may keep the Fed from additional rate hikes. Losses in European stocks were contained after Eurozone Aug industrial production rose a more-than-expected +1.4% m/m, the biggest increase in 9-months. Asian stocks settled mostly higher: Japan +0.35%, Hong Kong +0.24%, China -0.06%, Taiwan +0.66%, Australia +0.39%, Singapore +0.70%, South Korea +0.61%, India +1.09%. Japan's Nikkei Stock Index rose to a fresh 2-year high on optimism that Prime Minister Abe's party will retain its dominant position in Japan's parliament when voters go to the polls on Oct 22.
The dollar index (DXY00 +0.03%) is up +0.05%. EUR/USD (^EURUSD) is down -0.01% and fell back from a 2-week high after ECB Executive Board member Praet said "a very substantial degree of monetary accommodation is still needed" to bolster Eurozone inflation. USD/JPY (^USDJPY) is down -0.18%.
Dec 10-year T-note prices (ZNZ17 +0.12%) are up +3 ticks.
ECB Executive Board member Praet said "a very substantial degree of monetary accommodation is still needed" to bolster Eurozone inflation. "Deflationary risks have disappeared and some measures of underlying inflation have ticked up over recent months, but overall inflation developments, despite the solid growth, have remained subdued."
Eurozone Aug industrial production rose +1.4% m/m, stronger than expectations of +0.6% m/m and the largest increase in 9-months.
Japan Sep PPI rose +0.2% m/m and +3.0% y/y, right on expectations with the +3.0% y/y gain the largest year-on-year increase in 3-years.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) weekly initial unemployment claims (expected -10,000 to 250,000, previous -12,000 to 260,000) and continuing claims (expected -8,000 to 1.930 million, previous +2,000 to 1.938 million), (2) Sep PPI final demand (expected +0.4% m/m and +2.6% y/y, Aug +0.2% m/m and +2.4% y/y) and Sep PPI ex food & energy (expected +0.2% m/m and +2.0% y/y, Aug +0.1% m/m and +2.0% y/y), (3) Fed Governor Lael Brainard and ECB President Mario Draghi speak on a monetary policy panel at the Peterson Institute for International Economics in Washington D.C., (4) Fed Governor Jerome Powell delivers keynote address on “Prospects for Emerging Market Economies in a Normalizing Global Economy” at an Institute of International Finance conference on emerging markets, (5) Treasury auctions $12 billion of 30-year T-bonds, (6) EIA weekly Petroleum Status Report, (7) USDA Oct WASDE crop production report.
Notable Russell 1000 earnings reports today include: JPMorgan Chase (consensus $1.65), Citigroup (1.32), Omincom Group (1.09), Domino's Pizza (1.22).
U.S. IPO's scheduled to price today: Optinose (OPTN).
Equity conferences this week: HR Technology Conference on Tue-Fri, National HUBZone Conference on Thu.
OVERNIGHT U.S. STOCK MOVERS
JPMorgan Chase (JPM -0.30%) is down -0.6% in pre-market trading after it reported Q3 FICC sales and trading revenue of $3.16 billion, below consensus of $3.18 billion.
Disney (DIS -1.03%) was downgraded to 'Neutral' from 'Buy' at Guggenheim Securities.
Williams-Sonoma (WSM -1.38%) was downgraded to 'Underperform' from 'Neutral' at Credit Suisse with a price target of $44.
Host Hotels (HST +0.65%) was upgraded to 'Buy' from 'Hold' at Deutsche Bank with a price target of $21.
Square (SQ +2.17%) was initiated as a new 'Outperform' at Oppenheimer with a price target of $35.
Juniper Networks (JNPR -1.65%) slid nearly 3% in after-hours trading after it reported preliminary Q3 revenue of $1.25 billion-$1.26 billion, below a prior estimate of $1.29 billion-$1.35 billion and below consensus of $1.33 billion.
NanoString Technologies (NSTG +0.13%) dropped nearly 10% in after-hours trading after it reported preliminary Q3 revenue of $25.9 million-$26.9 million, below consensus of $27.7 million.
Blackhawk Network Holdings (HAWK -0.90%) fell almost 7% in after-hours trading after it said it sees full-year adjusted EPS of $1.56 to $1.70, the midpoint below consensus of $1.68.
Protagonist Therapeutics (PTGX +0.71%) slumped over 10% in after-hours trading after it proposed an underwritten public offering of $50 million of its common stock.
Kandi Technologies Group (KNDI -7.82%) dropped over 5% in after-hours trading after it filed a $300 million shelf of mixed securities.
Babcock & Wilcox Enterprises (BW +4.22%) rose almost 6% in after-hours trading after Viex Capital reported a 6.4% stake in the company.
J. Jill (JILL -2.17%) plunged 35% in after-hours trading after it cut its Q3 adjusted EPS estimate to 8 cents-10 cents from an Aug 29 estimate of 18 cents-20 cents, citing lower than expected sales trends across retail and direct channels.
Ardelyx (ARDX unch) surged 45% in after-hour trading after it said its tenapanor drug for treatment of irritable bowel syndrome with constipation met statistical significance for the primary endpoint and all secondary endpoints in the second Phase 3 study.
Sigma Designs (SIGM +0.77%) rose almost 4% in after-hours trading after it said it will cut between 200 to 250 positions worldwide under its restructuring plan.
MARKET COMMENTS
Dec S&P 500 E-mini stock futures (ESZ17 -0.21%) this morning are down -3.75 points (-0.15%). Wednesday's closes: S&P 500 +0.18%, Dow Jones +0.18%, Nasdaq +0.29%. The S&P 500 on Wednesday climbed to a new record high and settled higher on carry-over support from a rally in European stocks on reduced Spanish political concerns after Catalan President Puigdemont said he would seek talks with the Spanish government over the future of Catalonia rather than seek immediate independence. US stocks also received a boost from the minutes of the Sep 19-20 FOMC meeting that said some policy makers did not want to raise interest rates until they were confident inflation would rise to their 2% target.
Dec 10-year T-note prices (ZNZ17 +0.12%) this morning are up +3 ticks. Wednesday's closes: TYZ7 -1.00, FVZ7 -1.75. Dec 10-year T-notes on Wednesday closed slightly lower on increased inflation expectations after the 10-year T-note breakeven inflation rate rose to a 5-month high. Losses were limited by dovish comments from Dallas Fed President Kaplan who said that he is "really nervous" that inflation expectations are low, which suggests that he may not support a Fed rate hike in Dec.
The dollar index (DXY00 +0.03%) this morning is up +0.044 (+0.05%). EUR/USD (^EURUSD) is down -0.0001 (-0.01%) and USD/JPY (^USDJPY) is down -0.20 (-0.18%). Wednesday's closes: Dollar Index -0.275 (-0.29%), EUR/USD +0.0051 (+0.43%), USD/JPY +0.05 (+0.04%). The dollar index on Wednesday fell to a 1-week low and closed lower on strength in EUR/USD which climbed to a 2-week high as Spanish political concerns eased after Catalan President Puigdemont said he is looking to negotiate with the Spanish government rather than seeking immediate independence. The dollar was also undercut by the Sep 19-20 FOMC meeting minutes that showed policy makers were concerned about persistently low inflation.
Nov crude oil (CLX17 -1.54%) this morning is down -79 cents (-1.54%) and Nov gasoline (RBX17 -0.80%) is -0.0127(-0.79%). Wednesday's closes: Nov WTI crude +0.38 (+0.75%), Nov gasoline +0.0177 (+1.11%). Nov crude oil and gasoline on Wednesday closed higher with Nov crude at a 1-week high. Crude oil prices were boosted by the fall in the dollar index to a 1-week low and by expectations for EIA crude inventories on Thursday to fall -750,000 bbl. Crude oil prices were undercut by the EIA's hike in its 2018 U.S. crude output estimate to 9.92 million bpd from 9.84 million bpd.
Metals prices this morning are higher with Dec gold (GCZ17 +0.71%) +8.3 (+0.64%) at a 2-week high, Dec silver (SIZ17+0.71%) +0.102 (+0.60%) at a 2-week high and Dec copper (HGZ17 +0.57%) +0.014 (+0.44%) at a 1-month high. Wednesday's closes: Dec gold -4.9 (-0.38%), Dec silver -0.074 (-0.43%), Dec copper +0.0350 (+1.14%). Metals on Wednesday settled mixed with Dec copper at a 1-month high. Metals prices were supported by the fall in the dollar index to a 1-week low and by tighter copper supplies after LME copper inventories fell -2,955 MT to a 3-1/2 week low of 286,925 MT. Precious metals prices were undercut by reduced safe-haven demand as Spanish political risks eased.
GLOBAL EVENT CALENDAR10/12/2017
Thursday, Oct 12
US0830 ETWeekly initial unemployment claims expected -10,000 to 250,000, previous -12,000 to 260,000. Weekly continuing claims expected -8,000 to 1.930 million, previous +2,000 to 1.938 million.
0830 ETSep PPI final demand expected +0.4% m/m and +2.6% y/y, Aug +0.2% m/m and +2.4% y/y. Sep PPI ex food & energy expected +0.2% m/m and +2.0% y/y, Aug +0.1% m/m and +2.0% y/y.
1015 ETFed Governor Lael Brainard and ECB President Mario Draghi speak on a monetary policy panel at the Peterson Institute for International Economics in Washington D.C.
1030 ETFed Governor Jerome Powell delivers keynote address on Prospects for Emerging Market Economies in a Normalizing Global Economy at an Institute of International Finance conference on emerging markets.
1100 ETTreasury announces amount of 30-year TIPS to be auctioned Oct 19 (previous $5 billion).
1100 ETEIA weekly Petroleum Status Report.
1200 ETUSDA Oct WASDE crop production report.
1300 ETTreasury auctions $12 billion of 30-year T-bonds.
Friday, Oct 13
US0830 ETSep CPI expected +0.6% m/m and +2.3% y/y, Aug +0.4% m/m and +1.9% y/y. Sep CPI ex food & energy expected +0.2% m/m and +1.8% y/y, Aug +0.2% m/m and +1.7% y/y.
0830 ETSep retail sales expected +1.7% and +0.9% ex autos, Aug -0.2% and +0.2% ex autos.
0830 ETBoston Fed President Eric Rosengren (non-voter) delivers opening remarks at the Boston Fed conference on Are Rules Made to be Broken? Discretion and Monetary Policy Text.
0830 ETUSDA weekly Export Sales.
1000 ETPrelim-Oct University of Michigan U.S. consumer sentiment expected -0.1 to 95.0, Sep -1.7 to 95.1.
1000 ETAug business inventories expected +0.7%, Jul +0.2%.
1025 ETChicago Fed President Charles Evans (voter) discusses current economic conditions and monetary policy at the Wisconsin Summit on Financial Literacy in Green Bay, WI.
1130 ETDallas Fed President Robert Kaplan (voter) speaks in a moderated Q&A session at the CFA Institutes Fixed Income Management Conference in Boston.
U.S. STOCK CALENDAR10/12/2017
NameTickerTimeDescriptionPeriodEstimate
JPMorgan Chase & CoJPM US06:45Q3 2017 Earnings ReleaseQ3 171.653
Domino's Pizza IncDPZ US07:30Q3 2017 Earnings ReleaseQ3 171.222
Citigroup IncC US08:00Q3 2017 Earnings ReleaseQ3 171.321
JPMorgan Chase & CoJPM US08:30Q3 2017 Earnings CallQ3 17
Citigroup IncC US10:00Q3 2017 Earnings CallQ3 17
Domino's Pizza IncDPZ US10:00Q3 2017 Earnings CallQ3 17
Omnicom Group IncOMC USQ3 2017 Earnings ReleaseQ3 171.092
HP IncHPQ USAnalyst Meeting
Nu Skin Enterprises IncNUS US13:45Investor Meeting

Friday, January 13, 2017

MORNING CALL 1/13

Barchart Morning Call

OVERNIGHT MARKETS AND NEWS
Mar E-mini S&Ps (ESH17 +0.09%) are up +0.11% and European stocks are up +0.71% after upbeat comments late Thursday evening from Fed Chair Yellen who said the U.S. economy faces no serious short-term obstacles with low unemployment and wage growth beginning to pick up. Stock gains were limited on global growth concerns after China Dec exports declined more than expected. Also, a -1.13% decline in Feb WTI crude prices (CLG17 -1.08%) is undercutting energy producing stocks. Asian stocks settled mixed: Japan +0.80%, Hong Kong +0.47%, China -0.21%, Taiwan -0.33%, Australia -0.79%, Singapore +1.07%, South Korea -0.76%, India -0.03%. Chinese stocks closed lower as exporting companies sold-off on earnings concerns after China Dec exports fell more than expected.
The dollar index (DXY00 -0.15%) is down -0.17%. EUR/USD (^EURUSD) is up +0.39% and found support on a jump in German Dec wholesale prices by the most in 4-years, which bolsters the case for the ECB to taper QE. USD/JPY (^USDJPY) is down -0.04%.
Mar 10-year T-note prices (ZNH17 +0.11%) are up +4 ticks.
Fed Chair Yellen said late Thursday evening that the U.S. economy faces no serious short-term obstacles, but must deal with long-term challenges of low productivity and income inequality. She said “unemployment has now reached a low level; the labor market is generally strong and wage growth is beginning to pick up. Inflation has moved up from a very low level, and it's a little bit under our 2% objective, but it's very close."
The German Dec wholesale price index rose +1.2% m/m and +2.8% y/y, the fastest pace of increase in 4 years.
The China Dec trade balance shrank to a surplus of +$40.82 billion, narrower than expectations of +$47.55 billion and the smallest surplus in 8 months. Dec exports fell -6.1% y/y, weaker than expectations of -4.0% y/y. Dec imports rose +3.1% y/y, stronger than expectations of +3.0% y/y.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) Dec retail sales (expected +0.7% and +0.5% ex autos, Nov +0.1% and +0.2% ex autos), (2) Dec PPI final demand (expected +0.3% m/m and +1.6% y/y, Nov +0.4% m/m and +1.3% y/y) and Dec PPI ex food & energy (expected +0.1% m/m and +1.5% y/y, Nov +0.4% m/m and +1.6% y/y), (3) Philadelphia Fed President Patrick Harker (voter) speaks on economic mobility at an event in Philadelphia, (4) Nov business inventories (expected +0.6%, Oct -0.2%), (5) preliminary-Jan University of Michigan U.S. consumer sentiment index (expected +0.3 to 98.5, Dec +4.4 to 98.2), (6) Dec monthly budget statement (expected -$25.0 billion, Nov -$136.7 billion).
S&P 500 earnings reports today include: JPMorgan (consensus $1.43), Bank of America (0.38), BlackRock (5.02), PNC Financial (1.85), Wells Fargo (1.00).
U.S. IPO's scheduled to price today: none.
Equity conferences today: none.
OVERNIGHT U.S. STOCK MOVERS
Bank of America (BAC -0.65%) is up +0.5% in pre-market trading after it reported Q4 adjusted EPS of 40 cents, better than consensus of 38 cents
GrubHub (GRUB +0.54%) rose 2% in pre-market trading after being upgraded by Morgan Stanley to 'Overweight' from 'Equal-weight'
BlackRock (BLK -0.70%) reported Q4 adjusted EPS of $5.14, stronger than consensus of $5.02.
GameStop (GME +0.45%) was downgraded to 'Neutral' from 'Outperform' at Macquarie Research with a 12-month target price of $23.
Tractor Supply (TSCO -0.72%) was upgraded to 'Outperform' from 'Neutral' at Wedbush.
Zillow Group (ZG +1.80%) was downgraded to 'Equal-weight' from 'Overweight' at Morgan Stanley.
Independence Realty Trust (IRT -0.44%) was rated a new 'Outperform' at Baird with a 12-month target price of $10.
Signet Jewelers (SIG -0.40%) slid over 1% in after-hours trading after Corvex Management sold 2.5 million shares in a block trade.
WPX Energy (WPX -1.36%) lost 1% in after-hours trading after it announced a public offering of 42 million shares of common stock.
Pandora Media (P +0.93%) jumped 7% in after-hours trading after it said it sees Q4 revenue above its October 25 forecast of $362 million-$374 million citing strong advertising.
Two Harbors Investment (TWO -0.45%) fell nearly 2% in after-hours trading after it proposed a public offering of $250 million of senior convertible notes due 2022.
Uranium Resources (URRE -1.88%) slumped 17% in after-hours trading after it proposed a public offering of common stock, although no size or terms of the offering were mentioned.
Nivalis Therapeutics (NVLS -2.64%) gained 2% in after-hours trading after it announced restructuring plans to "reduce operational costs and preserve cash" while exploring strategic alternatives and named CFO Michael Carruthers as interim president effective Jan 15.
MARKET COMMENTS
Mar E-mini S&Ps (ESH17 +0.09%) this morning are up +2.50 points (+0.11%). Thursday's closes: S&P 500 -0.21%, Dow Jones -0.32%, Nasdaq -0.17%. The S&P 500 on Thursday dropped to a 1-week low and closed lower on some continued disappointment that President-elect Trump did not provide specifics on any of his fiscal-stimulus plans in Wednesday's press conference. There was also continued weakness in pharmaceutical and biotech stocks after President-elect Trump said he would force drug makers to bid for government business to save the government money. Stocks found some support from the +10,000 rise in U.S. weekly jobless claims to 247,000, less than expectations of +20,000 to 255,000.
Mar 10-year T-notes (ZNH17 +0.11%) this morning are up +4 ticks. Thursday's closes: TYH7 +2.50, FVH7 +1.50. Mar 10-year T-notes on Thursday closed higher and the 10-year T-note yield fell to a 6-week low of 2.305%. T-note prices were boosted by the sell-off in the S&P 500 to a 1-week low, which boosted the safe-haven demand for T-notes, and by strong foreign demand for the Treasury's $12 billion auction of 30-year T-bonds that had a bid-to-cover ratio of 2.32, above the 12-auction average of 2.29. In addition, indirect bidders, a proxy for foreign buyers, bought 66.7% of the auction, above the 12-auction average of 61.4%.
The dollar index (DXY00 -0.15%) this morning is down -0.17 (-0.17%). EUR/USD (^EURUSD) is up +0.0032 (+0.30%). USD/JPY (^USDJPY) is down -0.05 (-0.04%). Thursday's closes: Dollar index -0.43 (-0.42%), EUR/USD +0.0031 (+0.29%), USD/JPY -0.69 (-0.60%). The dollar index on Thursday tumbled to a 1-month low and closed lower on continued liquidation of long dollar positions on disappointment that President-elect Trump did not discuss his administration's fiscal stimulus plans at Wednesday's press conference. The dollar was also undercut by reduced dollar interest rate differentials after the 10-year T-note yield dropped to a 1-1/4 month low. USD/JPY fell to a 1-month low as weakness in stocks boosted the safe-haven demand for the yen.
Feb WTI crude oil prices (CLG17 -1.08%) this morning are down -60 cents (-1.13%) and Feb gasoline (RBG17 -0.52%) is -0.0092 (-0.57%). Thursday's closes: Feb crude +0.78 (+1.49%), Feb gasoline +0.0247 (+1.55%). Feb crude oil and gasoline on Thursday closed higher on the sell-off in the dollar index to a 1-month low and on signs of falling OPEC oil production after Saudi Arabia's Energy Minister Al-Falih said that Saudi oil production is now below 10 million bpd, a deeper cut than the 10.058 million bpd it had agreed to and the lowest production in 22 months. Crude oil also found continued support from Wednesday's EIA data that showed strong refinery demand for crude after U.S. refiners used 17.1 million bpd of crude last week, the most since data began in 1989.
GLOBAL EVENT CALENDAR01/13/2017
Friday, Jan 13
US0830 ETDec retail sales expected +0.7% and +0.5% ex autos, Nov +0.1% and +0.2% ex autos.
0830 ETDec PPI final demand expected +0.3% m/m and +1.6% y/y, Nov +0.4% m/m and +1.3% y/y. Dec PPI ex food & energy expected +0.1% m/m and +1.5% y/y, Nov +0.4% m/m and +1.6% y/y.
0930 ETPhiladelphia Fed President Patrick Harker (voter) speaks on economic mobility at an event in Philadelphia.
1000 ETNov business inventories expected +0.6%, Oct -0.2%.
1000 ETPreliminary-Jan University of Michigan U.S. consumer sentiment index expected +0.3 to 98.5, Dec +4.4 to 98.2.
1400 ETDec monthly budget statement expected -$25.0 billion, Nov -$136.7 billion.
Tuesday, Jan 17
US0830 ETJan Empire manufacturing survey general business conditions expected -1.2 to 7.8, Dec +7.5 to 9.0.
0845 ETNew York Fed President Dudley (voter) speaks at a National Retail Federation Conference on consumer behavior.
1100 ETUSDA weekly grain export inspections.
1800 ETSan Francisco Fed President John Williams (non-voter) speaks at the Sacramento Business Review Economic Forecast event.
U.S. STOCK CALENDAR01/13/2017

CompanyTickerTimeEvent DescriptionPeriodEstimate
BlackRock IncBLK USBef-mktQ4 2016 Earnings ReleaseQ4 20165.022
First Republic Bank/CAFRC USBef-mktQ4 2016 Earnings ReleaseQ4 20161.025
JPMorgan Chase & CoJPM US6:45Q4 2016 Earnings ReleaseQ4 20161.427
Bank of America CorpBAC US6:45Q4 2016 Earnings ReleaseQ4 20160.377
PNC Financial Services Group Inc/ThePNC US6:45Q4 2016 Earnings ReleaseQ4 20161.845
First Horizon National CorpFHN US7:00Q4 2016 Earnings ReleaseQ4 20160.254
Wells Fargo & CoWFC US8:00Q4 2016 Earnings ReleaseQ4 20160.999
Bank of America CorpBAC US8:30Q4 2016 Earnings CallQ4 2016
BlackRock IncBLK US8:30Q4 2016 Earnings CallQ4 2016
First Horizon National CorpFHN US9:30Q4 2016 Earnings CallQ4 2016
JPMorgan Chase & CoJPM US10:00Q4 2016 Earnings CallQ4 2016
John Wiley & Sons IncJW/A US10:00Investor DayY 2017
First Republic Bank/CAFRC US10:00Q4 2016 Earnings CallQ4 2016
PNC Financial Services Group Inc/ThePNC US11:00Q4 2016 Earnings CallQ4 2016
Wells Fargo & CoWFC US11:30Q4 2016 Earnings CallQ4 2016
GameStop CorpGME USDecember 2016 Sales and Revenue Release2016