Morning Call 2/28

Barchart Morning Call

Barchart.com - 31 minutes ago

OVERNIGHT MARKETS AND NEWS

Mar E-mini S&Ps (ESH17 -0.06%) this morning are down -0.02% on light profit taking ahead of U.S. President Trump's first address to Congress tonight where he is expected to layout specifics to his policy plans. Also, retail stocks are lower, led by a 4% decline in shares of Target, after it reported Q4 adjusted EPS of $1.45, below consensus of $1.51, and said it expects full-year adjusted EPS of $3.80 to $4.20, well below expectations of $5.34. European stocks are little changed, up +0.09%. Asian stocks settled mixed: Japan +0.06%, Hong Kong -0.77%, China +0.40%, Taiwan closed for holiday, Australia -0.21%, Singapore -0.39%, South Korea +0.41%, India -0.24%.

The dollar index (DXY00 -0.16%) is down -0.12%. EUR/USD (^EURUSD) is up +0.16%. USD/JPY (^USDJPY) is down -0.46%.

Mar 10-year T-note prices (ZNH17 +0.01%) are down -0.5 of a tick.

Japan Jan industrial production unexpectedly fell -0.8% m/m, weaker than expectations of +0.4% m/m and the biggest decline in 8 months.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) revised Q4 GDP (expected +2.1% q/q annualized, previous +1.9%), (2) Jan wholesale inventories (expected +0.4%, Dec +1.0% m/m), (3) Dec S&P CoreLogic composite-20 home price index (expected +0.7% m/m and +5.35% y/y, Nov +0.88% m/m and +5.27% y/y), (4) Feb Chicago PMI (expected +3.0 to 53.3, Jan -3.6 to 50.3), (5) Feb Conference Board U.S. consumer confidence index (expected -0.8 to 111.0, Jan -1.5 to 111.8), (6) Feb Richmond Fed manufacturing index (expected -2 to 10, Jan +4 to 12), (7) Philadelphia Fed President Patrick Harker (voter) speaks on the economic outlook at Temple University, (8) San Francisco Fed President John Williams (non-voter) delivers an outlook speech to the Santa Cruz Chamber of Commerce, (9) St. Louis Fed President James Bullard (non-voter) gives the Spring 2017 GWU Alumni Lecture in Economics at George Washington University, and (10) President Trump delivers speech to joint session of Congress.

Notable S&P 500 earnings reports today include: salesforce.com (consensus $0.25), AutoZone (8.19), CenterPoint Energy (0.28), Endo International (1.63), NRG Energy (-0.25), Target (1.51), Sempra Energy (1.49), Ross Stores (0.75), Universal Health Systems (1.81), Envision Healthcare (1.23).

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

Equity conferences: Media & Telecom Conference on Mon-Tue BMO Capital Markets Global Metals & Mining Conference on Mon-Tue, JMP Securities Technology Conference on Mon-Tue, JP Morgan Leveraged Finance Conference on Mon-Tue, GSMA Mobile World Congress on Mon-Tue, Morgan Stanley MLP Diversified Natural Gas, Utilities & Clean Tech Conference on Tue, UBS Utilities and Natural Gas Conference on Tue, Barclays MLP Corporate Access Day on Tue, Pacific Crest Emerging Technology Summit on Tue, Evercore ISI Industrial Conference on Tue, CITI Asset Management, Broker Dealer & Market Structure Conference on Wed, Gabelli & Company Pump, Valve & Water Systems Symposium on Wed, Wells Fargo Real Estate Securities Conference on Wed, ABA National Conference on Wed, EnerCom The Oil & Gas Conference on Wed, J.P. Morgan Gaming, Lodging, Restaurant & Leisure Management Access Forum on Thu, Bank of America Merrill Lynch Global Agriculture and Chemicals Conference on Wed-Thu, BTIG Healthcare Conference on Thu, Capital Link Master Limited Partnership Investing Forum on Thu, Simmons Energy Conference on Thu-Fri.

OVERNIGHT U.S. STOCK MOVERS

Target (TGT +0.60%) is down 4% in pre-market trading after it reported Q4 adjusted EPS of $1.45, below consesnsus of $1.51, and said it expects full-year adjusted EPS of $3.80 to $4.20, well below expectations of $5.34.

Priceline Group (PCLN +0.02%) rallied over 3% in after-hours trading after it reported Q4 adjusted EPS of $14.21, well above consensus of $12.97.

Jabil Circuit (JBL +0.27%) was dowmngraded to 'Market Perform' from 'Strong Buy' at Raymond James.

U.S. Steel (X +3.19%) rose 3% in after-hours trading after it was upgraded to 'Outperform' from Market Perform' at Cowen.

Square (SQ +2.87%) slid 2% in after-hours trading after it announced a $350 million offering of convertible senior notes due in 2022.

Hertz Global Holdings (HTZ +0.15%) climbed over 2% in after-hours trading after Gamco said it increased its stake in the company to 6.18% from 5.1%.

EOG Resources (EOG +1.67%) gained 2% in after-hours trading after it reported a Q4 adjusted loss of -1 cent a share, narrower than expectations for a -14 cent a share loss.

Hudson Pacific Properties (HPP +0.83%) lost nearly 2% in after-hours trading after it announced the commencement of a public offering of 8.5 million shares of common stock.

Nutrisystem (NTRI +2.75%) jumped over 15% in after-hours trading after it reported Q4 EPS of 29 cents, better than consensus of 24 cents, and said it sees Q1 revenue of $202 million-$207 million, above consensus of $179.3 million.

Realty Income (O -0.08%) lost nearly 2% in after-hours trading after it announced the commencement of a public offering of 8 million shares of common stock.

Triangle Capital (TCAP -0.60%) dropped 4% in after-hours trading after it announced the commencement of a public offering of 7 million shares of common stock.

Silver Bay Realty Trust (SBY +0.89%) surged 17% in after-hours trading after Tricon Capital bought the company for $1.4 billion, or $21,50 a share, an 18% premium to Monday's closing price.

58.com (WUBA +1.63%) rose 3% in after-hours trading after it reported Q4 gross margin of 89.9%, below consensus of 90.5%.

Essendant (ESND +1.56%) tumbled 11% in after-hours trading after it reported an unexpected Q4 adjusted loss of -2 cents a share, much weaker than consensus for a 28 cent EPS gain.

Kindred Healthcare (KND +3.29%) rose over 4% in after-hours trading after it reported Q4 core EPS of 8 cents, better than consensus of 5 cents, and then said it sees full-year revenue of $7.1 billion-$7.3 billion, above consensus of $6.89 billion.

Fiesta Restaurant Group (FRGI -1.52%) plunged 13% in after-hours trading after it said it will suspend its sale evaluation process due to "softer" company performance and a "weak" industry outlook.

Kona Grill (KONA -3.80%) slumped nearly 10% in after-hours trading after it reported a Q4 adjusted loss of -39 cents a share, wider than consensus for -33 cents a share loss.

MARKET COMMENTS

Mar E-mini S&Ps (ESH17 -0.06%) this morning are down -0.50 of a point (-0.02%). Monday's closes: S&P 500 +0.10%, Dow Jones +0.08%, Nasdaq +0.08%. The S&P 500 on Monday rose to a new record high and closed higher on a rally in steelmakers and raw-material producing stocks after President Trump said he will spend "big" on infrastructure. Stocks were undercut by the unexpected -0.4% decline in U.S. Jan capital goods orders non-defense ex aircraft (weaker than expectations of +0.5%) and by the unexpected -2.8% drop in U.S. Jan pending home sales (weaker than expectations of +0.6% m/m and the biggest decline in a year).

Mar 10-year T-notes (ZNH17 +0.01%) this morning are down -0.5 of a tick. Monday's closes: TYH7 -15.00, FVH7 -10.75. Mar 10-year T-notes on Monday closed lower on carry-over weakness from a slide in German bunds on reduced European political risks after polls showed French presidential candidate Macron had closed the gap with anti-euro candidate Le Pen. T-notes were also undercut by comments from Dallas Fed President Kaplan who said "we should move sooner rather than later" on raising interest rates.

The dollar index (DXY00 -0.16%) this morning is down -0.12 (-0.12%). EUR/USD (^EURUSD) is up +0.0017 (+0.16%). USD/JPY (^USDJPY) is down -0.52 (-0.46%). Monday's closes: Dollar index +0.04 (+0.04%), EUR/USD +0.0024 (+0.23%), USD/JPY +0.58 (+0.52%). The dollar index on Monday closed higher on the increase in 10-year T-note yields, which improves the dollar's interest rate differentials, and by comments from President Trump who said he will spend "big" on infrastructure, which would be positive for U.S. economic growth. Gains in the dollar were limited by strength in EUR/USD as European political risks eased after polls showed French presidential candidate Macron had closed the gap with anti-euro candidate Le Pen.

Apr WTI crude oil prices (CLJ17 -0.22%) this morning are down -19 cents (-0.35%) and Apr gasoline (RBJ17 -0.37%) is -0.0090 (-0.52%). Monday's closes: Apr crude +0.06 (+0.11%), Apr gasoline +0.0052 (+0.30%). Apr crude oil and gasoline on Monday closed higher on the rally in the S&P 500 to a new record high and on comments from Russian Energy Minister Novak who said that Russia had cut its oil output this month by more than the 117,000 bpd it had cut its oil production in Jan. Crude prices fell back from their best levels after OPEC Secretary-General Mohammad Barkindo said that "Non-OPEC members are lagging behind" on agreed to oil production cuts.

GLOBAL EVENT CALENDAR02/28/2017

		Tuesday, Feb 28
US	0830 ET	Revised Q4 GDP expected +2.1% (q/q annualized), previous +1.9% (q/q annualized). Q4 personal consumption expected unrevised at +2.5%. Q4 GDP price index expected unrevised at +2.1%. Q4 core PCE expected unrevised at +1.3% q/q.
	0830 ET	Jan wholesale inventories expected +0.4%, Dec +1.0% m/m. Jan retail inventories, Dec unch m/m.
	0900 ET	Dec S&P CoreLogic composite-20 home price index expected +0.7% m/m and +5.3% y/y, Nov +0.88% m/m and +5.27% y/y.
	0945 ET	Feb Chicago PMI expected +2.7 to 53.0, Jan -3.6 to 50.3.
	1000 ET	Feb Conference Board U.S. consumer confidence index expected -0.8 to 111.0, Jan -1.5 to 111.8.
	1000 ET	Feb Richmond Fed manufacturing index expected -2 to 10, Jan +4 to 12.
	1500 ET	Philadelphia Fed President Patrick Harker (voter) speaks on the economic outlook at Temple University.
	1530 ET	San Francisco Fed President John Williams (non-voter) delivers an outlook speech to the Santa Cruz Chamber of Commerce.
	1850 ET	St. Louis Fed President James Bullard (non-voter) gives the Spring 2017 GWU Alumni Lecture in Economics at George Washington University.
	2100 ET	President Trump delivers speech to joint session of Congress.
		Wednesday, Mar 1
US	0700 ET	Weekly MBA mortgage applications, previous -2.0% with purchase sub-index -2.8% and refi sub-index -1.0%.
	0830 ET	Jan personal spending expected +0.3%, Dec +0.5%. Jan personal income expected +0.3%, Dec +0.3%. Jan PCE deflator expected +0.5% m/m and +2.0% y/y, Dec +0.2% m/m and +1.6% y/y. Jan core PCE deflator expected +0.3% m/m and +1.7% y/y, Dec +0.1% m/m and +1.7% y/y.
	0945 ET	Revised Feb Markit manufacturing PMI expected +0.2 to 54.5, prelim-Feb -0.7 to 54.3.
	1000 ET	Feb ISM manufacturing index expected unch at 56.0, Jan +1.5 to 56.0. Feb ISM new orders, Jan +0.1 to 60.4. Feb ISM employment, Jan +3.3 to 56.1. Feb ISM prices paid expected -1.0 to 68.0, Jan +3.5 to 69.0.
	1000 ET	Jan construction spending expected +0.6% m/m, Dec -0.2% m/m.
	1030 ET	EIA Weekly Petroleum Status Report.
	1300 ET	Dallas Fed President Robert Kaplan (voter) speaks at Paul Quinn College in Dallas, TX.
	1400 ET	Fed Beige Book.
	1800 ET	Fed Governor Lael Brainard speaks on the economic outlook and monetary policy at Harvard Universitys John F. Kennedy School of Government.
	n/a	Feb total vehicle sales expected 17.70 million, Jan 17.48 million. Feb domestic vehicle sales expected 13.65 million, Jan 13.60 million.

U.S. STOCK CALENDAR02/28/2017

Company	Ticker	Time	Event Description	Period	Estimate
AutoZone Inc	AZO US	Bf-mkt	Q2 2017 Earnings Release	Q2 2017	8.197
CenterPoint Energy Inc	CNP US	Bf-mkt	Q4 2016 Earnings Release	Q4 2016	0.282
Endo International PLC	ENDP US	Bf-mkt	Q4 2016 Earnings Release	Q4 2016	1.633
NRG Energy Inc	NRG US	Bf-mkt	Q4 2016 Earnings Release	Q4 2016	-0.263
Target Corp	TGT US	6:30	Q4 2017 Earnings Release	Q4 2017	1.509
NRG Energy Inc	NRG US	8:00	Q4 2016 Earnings Call	Q4 2016
JPMorgan Chase & Co	JPM US	8:30	Investor Day	Y 2017
Sempra Energy	SRE US	8:30	Q4 2016 Earnings Release	Q4 2016	1.487
Endo International PLC	ENDP US	8:30	Q4 2016 Earnings Call	Q4 2016
Target Corp	TGT US	9:00	Financial Community Meeting - Q4 Earnings	Y 2017
Albemarle Corp	ALB US	9:00	Q4 2016 Earnings Call	Q4 2016
AutoZone Inc	AZO US	10:00	Q2 2017 Earnings Call	Q2 2017
EOG Resources Inc	EOG US	10:00	Q4 2016 Earnings Call	Q4 2016
CenterPoint Energy Inc	CNP US	11:00	Q4 2016 Earnings Call	Q4 2016
ONEOK Inc	OKE US	11:00	Q4 2016 Earnings Call	Q4 2016
Sempra Energy	SRE US	12:00	Q4 2016 Earnings Call	Q4 2016
Ross Stores Inc	ROST US	16:00	Q4 2017 Earnings Release	Q4 2017	0.754
Ross Stores Inc	ROST US	16:15	Q4 2017 Earnings Call	Q4 2017
salesforce.com Inc	CRM US	17:00	Q4 2017 Earnings Release	Q4 2017	0.248
salesforce.com Inc	CRM US	17:00	Q4 2017 Earnings Call	Q4 2017
Envision Healthcare Corp	EVHC US	17:00	Q4 2016 Earnings Call	Q4 2016
Universal Health Services Inc	UHS US	Aft-mkt	Q4 2016 Earnings Release	Q4 2016	1.813
Envision Healthcare Corp	EVHC US	Aft-mkt	Q4 2016 Earnings Release	Q4 2016	1.211
Equifax Inc	EFX US		Investor Meeting	Y 2017
Apple Inc	AAPL US		Annual General Meeting

BARCHART MORNING CALL 1/7

BARCHART MORNING CALL

Wednesday, January 7th, 2015View Older Reports

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OVERNIGHT MARKETS AND NEWS

March E-mini S&Ps (ESH15 +0.59%) this morning are up +0.63% and European stocks are up +1.29% amid optimism that weaker-than-expected Eurozone Dec inflation bolsters the case for the ECB to begin quantitative easing. The Eurozone Dec CPI fell a more-than-expected -0.2% y/y, the biggest decline in 5-1/4 years. Energy producers are leading the rise in stocks as the price of crude oil gained. The Greek 10-year bond yield climbed to a 1-1/4 year high of 10.196% and sent the Greek ASE Stock Index tumbling to a 2-1/4 year low. European economic growth remains divergent after the Italy Nov unemployment rate unexpectedly rose +0.1 to a record high 13.4% (data from 1977), while the German Dec unemployment rate unexpectedly fell -0.1 to 6.5%, the lowest since data for a reunified Germany began in 1991. Asian stocks closed mixed: Japan +0.01%, Hong Kong +0.83%, China +0.08%, Taiwan +0.35%, Australia -0.21%, Singapore +0.50%, South Korea +0.25%, India -0.29%. Commodity prices are mixed. Feb crude oil (CLG15 +0.02%) is up +0.06%. Feb gasoline (RBG15 -1.02%) is down -0.67%. Feb gold (GCG15 -0.48%) is down -0.52%. Mar copper (HGH15 -0.38%) is down -0.33%. Agriculture prices are higher. The dollar index (DXY00 +0.46%) is up +0.58% at a new 9-year high. EUR/USD (^EURUSD) is down -0.52% at an 8-3/4 year low after the larger-than-expected decrease in Eurozone Dec CPI strengthened the case for the ECB to begin large-scale asset purchases. USD/JPY (^USDJPY) is up +0.63%. Mar T-note prices (ZNH15 -0.12%) are down -4 ticks.
Eurozone Dec CPI fell -0.2% y/y, more than expectations of -0.1% y/y and the fastest pace of decline in 5-1/4 years. Dec core CPI rose +0.8% y/y, a larger increase than expectations of +0.7% y/y.
The Eurozone Nov unemployment rate was unchanged at 11.5%, right on expectations.
The German Dec unemployment change fell -27,000 to a record low 2.841 million, more than expectations of -5,000 and the most in 8 months. The Dec unemployment rate unexpectedly fell -0.1 to 6.5%, better than expectations of unch and the lowest since data for a reunified Germany began in 1991.
German Nov retail sales rose +1.0% m/m, better than expectations of +0.2% m/m. On an annual basis, Nov retail sales unexpectedly fell -0.8% y/y, worse than expectations of +0.6% y/y.

U.S. STOCK PREVIEW

Today’s Dec ADP employment report is expected to show a solid increase of +225,000, which would be mildly above November’s rise of +208,000 and the 6-month moving average of +222,000.  Today’s Nov trade deficit is expected to narrow modestly to -$42.0 billion from -$43.4 billion in October.   There are 3 of  the Russell 1000 companies that report earnings today:  Monsanto (consensus $0.35), RPM International (0.55), MSC Industrial Direct (0.98).  Equity equity conferences during the remainder of this week include:  Citi Global Internet, Media & Telecommunications Conference on Tue-Wed, Goldman Sachs Global Energy Conference on Wed-Thu, and Evercore ISI Utility Conference on Thu-Fri.

OVERNIGHT U.S. STOCK MOVERS

Eli Lilly (LLY +0.50%) said it sees fiscal 2015 adjusted EPS of $3.10-$3.20, lower than consensus of $3.21 and that it sees fiscal 2015 revenue of $20.3 billion-$20.8 billion, below consensus of $20.88 billion.
Joy Global (JOY -2.07%) and Terex (TEX -3.23%) were both downgraded to 'Hold' from 'Buy' at KeyBanc.
The WSJ reports that 3G is discussing a possible acquisition of PepsiCo (PEP -0.76%) or Campbell Soup (CPB -0.67%) .
UnitedHealth (UNH -0.20%) was downgraded to 'Neutral' from 'Buy' at Goldman Sachs.
Cigna (CI +0.40%) was upgraded to 'Buy' from 'Neutral' at Goldman Sachs.
Sanofi (SNY +2.52%) was downgraded to 'Sell' from 'Neutral' at Citigroup.
Viking Global Investors reported a 5.5% passive stake in Mohawk (MHK -0.89%) .
J.C. Penney (JCP +1.86%) surged 19% in pre-market trading after it reported Nov/Dec same-store-sales were up 3.7%, at the upper end of guidance range of 2.0% - 4.0%.
Point72 Asset reported a 6.0% passive stake in Shutterfly (SFLY -3.85%) .
Point72 Asset reported an 8.7% passive stake in Kindred Healthcare (KND -1.44%) .
Nordstrom (JWN -0.63%) and Signet Jewelers (SIG -2.35%) were both initiated with an 'Outperform' at Cowen.
American Eagle (AEO +0.36%) was upgraded to 'Market Perform' from 'Underperform' at Cowen.
Micron (MU -2.69%) fell 5% in after-hours trading after it reported Q1 adjusted EPS of 97 cents, better than consensus of 92 cents, but reported Q1 revenue of $4.57 billion, below consensus of $4.62 billion. Micron also said it expects Q2 revenue of $4.1 billion-$4.3 billion, below consensus of $4.53 billion.

MARKET COMMENTS

Mar E-mini S&Ps (ESH15 +0.59%) this morning are up +12.50 points (+0.63%). The S&P 500 index on Tuesday fell to a 2-1/2 week low and closed lower: S&P 500 -0.89%, Dow Jones -0.74%, Nasdaq -1.20%. Bearish factors included (1) the -0.7% drop in U.S. Nov factory orders, weaker than expectations of -0.5%, (2) the -3.1 point decline in the Dec ISM non-manufacturing index, weaker than expectations of -1.3 to a 6-month low of 58.0, and (3) a slide in energy producers after the price of crude oil slumped to a new 5-1/2 year low.
Mar 10-year T-notes (ZNH15 -0.12%) this morning are down -4 ticks. Mar 10-year T-note futures prices on Tuesday rose to a 2-1/2 month high and closed higher. Closes: TYH5 +19.0, FVH5 +12.25. Bullish factors included (1) carry-over support from a plunge in the 10-year German bund yield to a record low 0.441% on speculation the ECB will embark on QE at its Jan 22 policy meeting, and (2) weaker-than-expected U.S. economic data on Nov factory orders and the Dec ISM non-manufacturing index.
The dollar index (DXY00 +0.46%) this morning is up +0.529 (+0.58%) at a new 9-year high. EUR/USD (^EURUSD) is down -0.0062 (-0.52%) at an 8-3/4 year low. USD/JPY (^USDJPY) is up +0.75 (+0.63%). The dollar index on Tuesday closed slightly higher, but remained below Monday’s 9-year high: Dollar index +0.121 (+0.13%), EUR/USD -0.00429 (-0.36%), USD/JPY -1.255 (-1.05%). The main supportive factor was weakness in EUR/USD on speculation the ECB is closer to large-scale sovereign-bond purchases and on concern that Jan 25 elections in Greece may put the anti-austerity Syriza party into power and lead to Greece’s departure from the Eurozone. Limiting gains in the dollar was a fall in USD/JPY fell to a 2-week low as a slide in stocks boosted the safe-haven demand for the yen.
Feb WTI crude oil (CLG15 +0.02%) this morning is up +3 cents (+0.06%) and Feb gasoline (RBG15 -1.02%) is down -0.0091 (-0.67%). Feb crude and Feb gasoline on Tuesday dropped to new 5-1/2 year lows and closed lower: CLG5 -2.11 (-4.22%), RBG5 -0.0334 (-2.42%). Bearish factors included (1) dollar strength, (2) weaker-than-expected U.S. economic data on Nov factory orders and the Dec ISM non-manufacturing index, which signals reduced energy demand, and (3) expectations that Wednesday’s weekly EIA data will show crude supplies increased by +700,000 bbl.

GLOBAL EVENT CALENDAR01/07/2015

US	0700 ET	Weekly MBA mortgage applications, previous +0.9% with purchase sub-index +1.3% and refi sub-index +1.1%.
	0815 ET	Dec ADP employment change expected +225,000, Nov +208,000.
	0830 ET	Nov trade balance expected -$42.0 billion, Oct -$43.4 billion.
	1030 ET	EIA Weekly Petroleum Status Report.
	1400 ET	Minutes of the Dec 16-17 FOMC meeting.
	1830 ET	Chicago Fed President Charles Evans discusses the role and impact of monetary policy in an uncertain economy at an event in Chicago.
GER	0200 ET	German Nov retail sales expected +0.2% m/m and +0.6% y/y, Oct +1.6% m/m and +1.7% y/y.
	0330 ET	German Dec Markit construction PMI, Nov 53.5.
	0355 ET	German unemployment change expected -5,000, Nov -14,000. Dec unemployment rate expected unch at 6.6%.
UK	0400 ET	UK Dec new car registrations, Nov +8.0% y/y.
	0430 ET	UK Dec Lloyds business barometer, Nov 42.
EUR	0500 ET	Eurozone Dec CPI expected -0.1% y/y, Nov +0.3% y/y. Dec core CPI expected +0.7% y/y, Nov +0.7% y/y.
	0500 ET	Eurozone Nov unemployment rate expected unch at 11.5%.

U.S. STOCK CALENDAR01/07/2015

Company	Ticker	Time	Event Description	Period	Estimate
RPM International Inc	RPM US	7:30	Q2 2015 Earnings Release	Q2 2015	0.55
MSC Industrial Direct Co Inc	MSM US	7:30	Q1 2015 Earnings Release	Q1 2015	0.976
Monsanto Co	MON US	8:00	Q1 2015 Earnings Release	Q1 2015	0.347
MSC Industrial Direct Co Inc	MSM US	8:30	Q1 2015 Earnings Call	Q1 2015
Eli Lilly & Co	LLY US	9:00	Q4 2015 Guidance Call	Q4 2015
Monsanto Co	MON US	9:30	Q1 2015 Earnings Call	Q1 2015
RPM International Inc	RPM US	10:00	Q2 2015 Earnings Call	Q2 2015
Acuity Brands Inc	AYI US	11:00	Annual General Meeting	Y 2015
Rovi Corp	ROVI US	17:30	Investor and Analyst Day	Y 2015
Apollo Education Group Inc	APOL US		Annual General Meeting1/7

BARCHART MORNING CALL 10/17

BARCHART MORNING CALL

Friday, October 17th, 2014View Older Reports

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OVERNIGHT MARKETS AND NEWS

December E-mini S&Ps (ESZ14 +1.43%) this morning are up +1.30% and European stocks are up +1.53% as Italian and Spanish government bonds gained on the prospects of additional ECB stimulus. ECB Executive Board member Coeure said the central bank will start "within the next days" to purchase assets in the new program to support the economy. A rally in European automakers also supported stock gains after Eurozone car sales last month rose by the most in 6 months. Asian stocks closed mixed: Japan -1.40%, Hong Kong +0.53%, China -0.11%, Taiwan -1.40%, Australia +0.32%, Singapore +0.43%, South Korea -1.22%, India +0.42%. China's Shanghai Stock Index fell to a 3-week low on speculation that a trading link that would allow the equivalent of $1.7 billion in daily net purchases of Hong Kong shares and $2.1 billion for Shanghai stocks will be delayed. Japan's Nikkei Stock Index fell to a 4-1/2 month low as exporters weakened on concern a global economic slowdown will reduce exporters' profits. Commodity prices are mixed. Nov crude oil (CLX14 +1.54%) is up +1.75%. Nov gasoline (RBX14 +1.02%) is up +1.09%. Dec gold (GCZ14 -0.31%) is down -0.34%. Dec copper (HGZ14 +0.13%) is down -0.27% at a fresh 7-month low on signs of increased supplies after weekly Shanghai copper inventories surged +14,465 MT to a 2-1/4 month high of 97,235 MT. Agriculture and livestock prices are mixed with Dec hogs down -1.02% at an 8-month nearest-futures low on demand concerns. The dollar index (DXY00 -0.12%) is down -0.07%. EUR/USD (^EURUSD) is up +0.05%. USD/JPY (^USDJPY) is up +0.20%. Dec T-note prices (ZNZ14 -0.24%) are down -13.5 ticks as a rally in U.S. and European stocks reduces the safe-haven demand for T-notes.
Eurozone Aug construction output rose +1.5% m/m, the biggest increase in 8 months. On an annual basis, Aug construction output fell -0.3% y/y.
Eurozone Sep new car registrations rose +6.4% y/y to 1.236 million units, the largest increase in 6 months.

U.S. STOCK PREVIEW

Today’s Sep housing starts report is expected to show an increase of +5.1% to 1.005 million, reversing part of the sharp -14.4% drop to 956,000 seen in August from the 6-1/2 year high of 1.117 million units posted in July. Today’s early-Oct U.S. consumer confidence index from the University of Michigan is expected to fall mildly by -0.6 points to 84.0, reversing part of the +2.1 gain to the 1-1/4 year high of 84.6 seen in September.
There are 11 of the S&P 500 companies that report earnings today with notable reports including: Morgan Stanley (consensus $0.54), GE (0.37), Honeywell (1.41), M&T Bank (1.97), Huntington Bancshares (0.19), SunTrust Banks (0.79), Bank of New York Mellon (0.61), Textron (0.52), Comerica (0.79), Kansas City Southern (1.26), Parker-Hannifin (1.67). There are no equity conferences today.

OVERNIGHT U.S. STOCK MOVERS

Morgan Stanley (MS -0.25%) reported Q3 EPS of 65 cents, much better than consensus of 54 cents.
Comerica (CMA +1.23%) reported Q3 EPS of 74 cents, less than consensus of 79 cents.
Honeywell International (HON +1.50%) reported Q3 EPS of $1.47, higher than consensus of $1.41.
General Electric (GE -0.12%) reported Q3 EPS of 38 cents, better than consensus of 37 cents.
Kindred Healthcare (KND +0.73%) reported a 14.6% stake in Gentiva Health (GTIV +0.36%) .
Crown Holdings (CCK +2.33%) reported Q3 ex-items EPS of $1.36, stronger than consensus of $1.21.
Urban Outfitters (URBN -0.37%) tumbled over 10% in after-hours trading after it said that its Q3 gross profit margin may weaken due to lower than expected sales.
Xilinx (XLNX +2.42%) gained 4% in European trading after it reported Q2 EPS of 62 cents, better than consensus of 55 cents.
Advanced Micro Devices (AMD +1.15%) fell over 6% in after-hours tradig after it reported Q3 adjusted EPS of 3 cents, less than consensus of 4 cents.
Point72 Asset reported a 5.2% passive stake in Lumber Liquidators (LL +0.93%) .
Capital One (COF -0.86%) reported Q3 EPS of $1.86, weaker than consensus of $1.94.
SanDisk (SNDK +1.14%) declined nearly 5% in after-hours trading after it reported Q3 EPS of $1.45, higher than consensus of $1.33, but reported Q3 revenue of $1.75 billion, below consensus of $1.77 billion.
Google (GOOG -1.04%) fell almost 2% in after-hours trading after it reported Q3 EPS of $6.35, below consensus of $6.53.
Stryker (SYK -0.35%) reported Q3 adjusted EPS of $1.15, better than consensus of $1.14.

MARKET COMMENTS

Dec E-mini S&Ps (ESZ14 +1.43%) this morning are up sharply by +24.00 points (+1.30%). The S&P 500 index on Thursday closed little changed: S&P 500 +0.01%, Dow Jones -0.15%, Nasdaq -0.55%. Bullish factors included (1) the unexpected -23,000 decline in weekly unemployment claims to a 14-1/2 year low of 264,000, (2) the +1.0% increase in Sep industrial production, more than twice expectations of +0.4% and the largest gain in 1-3/4 years, and (3) comments from St. Louis Fed President Bullard that the Fed should consider delaying the end of its bond purchases to halt a decline in inflation expectations.
Dec 10-year T-notes (ZNZ14 -0.24%) this morning are down -13.5 ticks. Dec 10-year T-note futures prices on Thursday closed lower. Closes: TYZ4 -16.50, FVZ4 -9.25. Bearish factors included (1) the unexpected decline in U.S. weekly unemployment claims to their lowest in 14-1/2 years, and (2) reduced safe-haven demand for T-notes after stocks recovered from sharp losses and closed higher.
The dollar index (DXY00 -0.12%) this morning is down -0.057 (-0.07%). EUR/USD (^EURUSD) is up +0.0006 (+0.05%). USD/JPY (^USDJPY) is up +0.21 (+0.20%). The dollar index on Thursday closed lower after St. Louis Fed President Bullard said that the Fed should consider delaying the end of its bond purchases to halt a decline in inflation expectations. Closes: Dollar index -0.192 (-0.23%), EUR/USD -0.00282 (-0.22%), USD/JPY +0.418 (+0.39%). EUR/USD closed lower on European sovereign debt concerns after the 10-year Greek bond yield roses to a 10-month high of 8.69% on concern the government won’t be able to fund itself if it sticks to plans to leave an international bailout program early.
Nov WTI crude oil (CLX14 +1.54%) this morning is up +$1.45 a barrel (+1.75%) and Nov gasoline (RBX14 +1.02%) is up +0.0241 (+1.09%). Nov crude rebounded from a 2-1/3 year low and Nov gasoline recovered from a 3-3/4 year low and closed higher. Closes: CLX4 +0.92 (+1.12%), RBXX4 +0.0660 (+3.07%). Bullish factors included (1) the -3.99 million bbl drop in weekly EIA gasoline supplies to 205.67 million bbl, a 1-3/4 year low, and (2) short-covering after crude prices fell more than $15 a barrel (-16%) over the past 2 weeks. Bearish factors included (1) the +8.92 million bbl increase in weekly EIA crude inventories, more than expectations of +2.5 million bbl, and (2) the +0.9% increase in U.S. crude production in the week ended Oct 10 to 8.95 million bpd, a new 29-1/4 yr high.

GLOBAL EVENT CALENDAR10/17/2014

US	0830 ET	Fed Chair Janet Yellen speaks at a Boston Fed conference on inequality of economic opportunity in the U.S.
	0830 ET	Sep housing starts expected +5.4% to 1.008 million, Aug -14.4% to 956,000. Sep building permits expected +2.7% to 1.030 million, Aug -5.1% to 1.003 million.
	0830 ET	USDA weekly Export Sales.
	0955 ET	Preliminary U.S. Oct University of Michigan consumer confidence expected -0.6 to 84.0, Sep +2.1 to 84.6.
EUR	0200 ET	Eurozone Sep new car registrations, Aug +2.1% y/y.
	0500 ET	Eurozone Aug construction output, Jul unch m/m and +0.4% y/y.

U.S. STOCK CALENDAR10/17/2014

Company Name	Ticker	Time	Event Description	Period	Estimate
Honeywell International Inc	HON US	Bef-mkt	Q3 2014 Earnings Release	Q3 2014	1.411
M&T Bank Corp	MTB US	Bef-mkt	Q3 2014 Earnings Release	Q3 2014	1.974
Huntington Bancshares Inc/OH	HBAN US	5:55	Q3 2014 Earnings Release	Q3 2014	0.189
SunTrust Banks Inc	STI US	6:00	Q3 2014 Earnings Release	Q3 2014	0.79
Bank of New York Mellon Corp/The	BK US	6:30	Q3 2014 Earnings Release	Q3 2014	0.614
Textron Inc	TXT US	6:30	Q3 2014 Earnings Release	Q3 2014	0.52
General Electric Co	GE US	6:30	Q3 2014 Earnings Release	Q3 2014	0.373
Comerica Inc	CMA US	6:40	Q3 2014 Earnings Release	Q3 2014	0.794
Morgan Stanley	MS US	7:15	Q3 2014 Earnings Release	Q3 2014	0.538
Bank of New York Mellon Corp/The	BK US	8:00	Q3 2014 Earnings Call	Q3 2014
Schlumberger Ltd	SLB US	8:00	Q3 2014 Earnings Call	Q3 2014
Comerica Inc	CMA US	8:00	Q3 2014 Earnings Call	Q3 2014
SunTrust Banks Inc	STI US	8:00	Q3 2014 Earnings Call	Q3 2014
Textron Inc	TXT US	8:00	Q3 2014 Earnings Call	Q3 2014
Kansas City Southern	KSU US	8:00	Q3 2014 Earnings Release	Q3 2014	1.261
General Electric Co	GE US	8:30	Q3 2014 Earnings Call	Q3 2014
Kansas City Southern	KSU US	8:45	Q3 2014 Earnings Call	Q3 2014
Honeywell International Inc	HON US	9:30	Q3 2014 Earnings Call	Q3 2014
Morgan Stanley	MS US	10:00	Q3 2014 Earnings Call	Q3 2014
Citigroup Inc	C US	10:00	Q3 2014 Earnings Call - Fixed Income	C3 2014
Huntington Bancshares Inc/OH	HBAN US	10:00	Q3 2014 Earnings Call	Q3 2014
M&T Bank Corp	MTB US	11:00	Q3 2014 Earnings Call	Q3 2014
Parker-Hannifin Corp	PH US		Q1 2015 Earnings Release	Q1 2015	1.666