Friday, June 17th, 2016View Older Reports
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OVERNIGHT MARKETS AND NEWS
Sep E-mini S&Ps are down -0.18% and European stocks are up +1.07% as Brexit concerns temporarily receded after campaigning over whether the UK should leave the European Union was suspended for a second day today after the murder of Labor lawmaker Jo Cox, an advocate for Britain to remain in the EU. A weaker dollar has also boosted commodity prices, which has strengthened energy and raw-material producing stocks. Asian stocks settled higher: Japan +1.07%, Hong Kong +0.66%, China +0.43%, Taiwan +0.87%, Australia +0.32%, Singapore +0.43%, South Korea +0.01%, India +0.38%.
The dollar index is down -0.17%. EUR/USD is up +0.33%. USD/JPY is unchanged.
Sep T-note prices are down -11 ticks.
The BOE warns that if Britain votes next Thursday to leave the European Union, the damage could extend to global markets and the word economy. Central banks around the world are on high alert ahead of the vote with the leaders of the Fed, BOJ, BOC and SNB all citing the vote as being potentially disruptive. The BOE said a vote to leave could have "adverse spillovers to the global economy" through "financial market and confidence channels."
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) May housing starts (expected -1.9% to 1.150 million, Apr +6.6% to 1.172 million) and May building permits (expected +1.3% to 1.145 million, Apr +4.9% to 1.130 million).
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
Phillips 66 (PSX +0.37%) was downgraded to 'Equal Weight' from 'Overweight' at Morgan Stanley.
Oracle (ORCL +0.52%) climbed over 2% in after-hours trading after it reported Q4 adjusted EPS of 81 cents, below consensus of 82 cents, but Q4 adjusted revenue of $10.6 billion was higher than consensus of $10.47 billion.
Smith & Wesson (SWHC +1.26%) jumped nearly 7% in after-hours trading after it reported Q4 adjusted EPS of 66 cents, well above consensus of 54 cents, and then raised guidance on fiscal 2017 adjusted EPS to $1.83-$1.93, above consensus of $1.66.
Parsley Energy (PE -2.77%) was rated a new 'Buy' at Wunderlich Securities with an 18-month price target of $32.
Envision Healthcare Holdings (EVHC -6.18%) was downgraded to 'Market Perform' from 'Outperform' at Oppenheimer.
Finisar (FNSR +0.80%) rallied over 8% in after-hours trading after it reported Q4 adjusted EPS of 29 cents, above consensus of 25 cents.
MGM Resorts International (MGM -1.47%) rose over 4% in after-hours trading after guiding annual adjusted Ebitda benefit to $400 million by the end of 2017 from $300 million previously forecast.
Revlon will buy Elizabeth Arden (RDEN -0.21%) for $14/ share cash if deal valued at $870 million.
Lumber Liquidators (LL +0.68%) jumped over 10% in after-hours trading after agreed to not resume sales of laminate flooring previously imported from China and the U.S, Consumer Product Safety Commission said it will not order a product recall.
ServiceNow (NOW -1.06%) was rated a new 'Market Perform' at Oppenheimer.
Paypal Holdings (PYPL +0.35%) was rated a new 'Outperform' at Oppenheimer with a price target of $43.
Synergy Resources Corp. (SYRG -4.24%) was rated a 'Strong Buy' at Raymond James with a 12-month price target of $9.50.
Stanley Furniture (STLY -1.56%) said it hired Stephens as financial adviser on a strategic review.
MARKET COMMENTS
September E-mini S&Ps this morning are down -3.75 points (-0.18%). Thursday's closes: S&P 500 +0.31%, Dow Jones +0.53%, Nasdaq +0.21%. The S&P 500 on Thursday rebounded from a 3-week low and closed higher on reduced Brexit concerns after the murder of a UK lawmaker fueled speculation that UK voters will vote to remain in the EU. Stocks were also boosted by stronger-than-expected U.S. economic data after the +6.5 point increase in the Jun Philadelphia Fed business outlook survey to 4.7 (stronger than expectations of +2.8 to 1.0) and the +2 point gain in the Jun NAHB housing market index to 60 (stronger than expectations of +1 to 59 and a 5-month high). Stocks were undercut by the slide in European stocks to a 4-month low on concern about a possible UK "Leave" vote next Thursday. Stocks were also undercut by the unexpected +13,000 increase in weekly initial unemployment claims.
Sep 10-year T-note prices this morning are down -11 ticks. Thursday's closes: TYU6 +6.50, FVU6 +3.50. Sep T-notes on Thursday rallied to a new contract high and closed higher on increased safe-haven demand from a slide in global stocks and on carryover support from rallies in 10-year German bunds and Japanese 10-year JGBs to all-time highs. T-notes were also boosted by reduced inflation expectations as the 10-year T-note breakeven inflation rate fell to a 3-1/4 month low.
The dollar index this morning is down -0.160 (-0.17%). EUR/USD is up +0.0037 (+0.33%). USD/JPY is unchanged. Thursday's closes: Dollar Index-0.318 (-0.33%), EUR/USD -0.0023 (-0.20%), USD/JPY -1.64 (-1.55%). The dollar index on Thursday climbed to a 1-1/2 week high but fell back and closed lower. The dollar was undercut by a recovery in GBP/USD from a 2-month low after the murder of a UK lawmaker fueled speculation that UK voters will vote to remain in the EU. The dollar was also undercut as USD/JPY plunged to a 1-3/4 year low after the BOJ refrained from expanding stimulus. The dollar found support on weakness in EUR/USD on Brexit fears and on stronger-than-expected U.S. economic data that included the Jun NAHB housing market index and the Jun Philadelphia Fed index.
July WTI crude oil this morning is up +71 cents (+1.54%). July gasoline is up +0.0303 (+2.07%). Thursday's closes: CLN6 -1.85 (-3.85%), RBN6 -0.0329(-2.19%). July crude oil and gasoline prices on Thursday closed lower with July crude at a 1-month low and July gasoline at a 5-week low. Crude oil prices were undercut by concern about a possible UK Leave Brexit vote next week and the the fall in the S&P 500 to a 3-week low, which undercuts optimism about the economy and energy demand.
GLOBAL EVENT CALENDAR06/17/2016
U.S. STOCK CALENDAR06/17/2016
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Showing posts with label LL. Show all posts
Showing posts with label LL. Show all posts
Friday, June 17, 2016
MORNING CALL 6/17
MORNING CALL
Tuesday, December 15, 2015
MORNING CALL 12/15
Tuesday, December 15th, 2015View Older Reports
Everything you need to know about the markets in one free daily newsletter.
You will also receive a free subscription to the Barchart family of newsletters.
OVERNIGHT MARKETS AND NEWS
March E-mini S&Ps (ESH16 +0.81%) are up +0.83% and European stocks are up +2.37% as a rally in crude oil gives energy producers a lift. Also, European automakers moved higher after Eurozone Nov new car registrations rose more than expected at the fastest pace in 5 months. Mining stocks gained as well, led by a nearly 5% increase in Glencore Plc, after JPMorgan Chase upgraded the stock to a 'Buy,' citing its "credible" strategy update. Asian stocks settled mixed: Japan -1.68%, Hong Kong -0.17%, China -0.29%, Taiwan +0.41%, Australia -0.39%, Singapore +0.02%, South Korea +0.26%, India +0.68%. Japan's Nikkei Stock Index fell to a 1-3/4 month low as exporter stocks declined after USD/JPY slipped to a 6-week low, which reduces exporters' earnings prospects.
The dollar index (DXY00 -0.02%) is down -0.07% at a 5-week low on speculation the Fed will reiterate that it sees a gradual pace of interest rate increases even after it raises interest rates tomorrow. EUR/USD (^EURUSD) is up +0.14% at a 1-1/2 month high. USD/JPY (^USDJPY) is up +0.10%.
Eurozone Nov new car registrations rose +13.7% y/y to 1.085 million units, the biggest increase in 5 months.
The German Dec ZEW survey expectations of economic growth rose +5.7 to 16.1, stronger than expectations of +4.6 to 15.0.
U.S. STOCK PREVIEW
Key U.S. news today includes: Dec Empire manufacturing survey of general business conditions (expected +3.74 to -7.00, Nov +0.62 to -10.74), (2) Nov CPI (expected unch m/m and +0.5% y/y, Oct +0.2% m/m and +0.2% y/y) and core CPI (expected +0.2% m/m and+2.0% y/y, Oct +0.2% m/m and +1.9% y/y), (3) the first day of the 2-day FOMC meeting where the market is discounting a three-quarters chance of a 25 bp rate hike, and (4) Dec NAHB housing market index (expected +1 to 63, Nov -3 to 62).
There is 1 of the Russell 1000 companies that report earnings today: FactSet Research Systems (1.46).
U.S. IPO's scheduled to price today: none.
Equity conferences: European Society for Medical Oncology Asia Congress on Fri.
OVERNIGHT U.S. STOCK MOVERS
Amgen (AMGN +1.91%) rose nearly 2% in pre-market trading after it said it reacquired all product rights to Prolia, Xgeva and Vectibix from Glaxo in 48 countries.
Lumber Liquidators (LL +1.22%) surged over 15% in after-hours trading when short seller Whitney Tilson said he covered his short position in the company after he said he received new information that shows management wasn't aware it was selling Chinese-made laminate with high levels of formaldehyde.
Amazon.com (AMZN +2.77%) was rated a new 'Buy' at MKM Partners with a price target of $800.
Verizon Communications (VZ +1.41%) was downgraded to 'Neutral' from 'Buy' at BTIG.
Occidental Petroleum (OXY +0.94%) was rated a new 'Buy' at CLSA with a price target of $83.
Chevron (CVX +3.34%) was rated a new 'Outperform' at CLSA with a price target of $95 and ConocoPhillips (COP +2.91%) was also rated a new 'Outperform' at CLSA with a price target of $52.
VeriFone Systems (PAY unch) climbed nearly 2% in after-hours trading after it raised guidance on fiscal 2016 adjusted EPS to $2.15-$2.17, higher than consensus of $2.12.
Xerox (XRX -1.79%) rose over 1% in after-hours trading after Carl Icahn reported he raised his stake in the company to 8.1% from 7.1%.
Lockheed Martin (LMT -0.29%) was awarded a $1.09 billion U.S. Army pact modification to foreign military sales for Patriot PAC-3 production.
Boeing (BA -1.12%) raised its quarterly dividend to $1.09 a share from 91 cents, higher than expectations of a hike to $1.02, and then raised its stock buyback authorization to $14 billion from $12 billion.
Kennametal (KMT -0.12%) slumped over 20% in after-hours trading after it said it expects its fiscal 2016 revenue may fall as much as 30% to 60% due to weakness in China's auto market and in U.S. coal mining.
MARKET COMMENTS
Mar E-mini S&Ps (ESH16 +0.81%) this morning are up +16.75 points (+0.83%). Monday's closes: S&P 500 +0.48%, Dow Jones +0.60%, Nasdaq +0.72%. The S&P 500 on Monday recovered from a 2-month low and closed higher. Stocks received a boost from reduced Chinese economic concerns after China Nov industrial production rose +6.2% y/y, stronger than expectations of +5.7% y/y and the fastest pace of increase in 5 months. In addition, energy producers saw some strength after crude oil prices rebounded from a 6-3/4 year low and closed higher.
Mar 10-year T-notes (ZNH16 -0.10%) this morning are down -7 ticks. Monday's closes: TYH6 -23.50, FVH6 -13.50. Mar T-notes on Monday closed lower on long liquidation on expectations for the FOMC to raise the federal funds rate by 25 bp on Wednesday and on carryover weakness from a slide in German bund prices after ECB President Draghi said he expects inflation to return to target "without delay."
The dollar index (DXY00 -0.02%) this morning is down -0.067 (-0.07%) at a 5-week low. EUR/USD (^EURUSD) is up +0.0015 (+0.14%) at a 1-1/2 month high. USD/JPY (^USDJPY) is up +0.12 (+0.10%). Monday's closes: Dollar Index +0.039 (+0.04%), EUR/USD +0.0006 (+0.05%), USD/JPY +0.02 (+0.02%). The dollar index on Monday closed slightly higher on expectations for the Fed to raise interest rates at the conclusion of Wednesday's FOMC meeting and on the rally in stocks, which caused USD/JPY to recover from a 5-week low and close higher on reduced safe-haven demand or the yen. The dollar was undercut as EUR/USD which rose to 5-week high after Eurozone Oct industrial production rose more than expected and after ECB President Draghi said he expects inflation to return to target "without delay."
Jan crude oil (CLF16 +0.77%) this morning is up +47 cents (+1.29%) and Jan gasoline (RBF16 -1.50%) is down -0.0199 (-1.58%). Monday's closes: CLF6 +0.65 (+1.82%), RBF6 -0.0386 (-3.01%). Jan crude oil and gasoline on Monday settled mixed as Jan crude recovered from a 6-3/4 year low. Crude oil prices received a boost from short-covering on news that China Nov industrial production and retail sales rose more than expected, and optimism that Congress may lift the 40-year old U.S. crude export ban. Crude prices earlier slumped to a fresh 6-3/4 year low after Iran's deputy oil minister said that there's "absolutely no chance" Iran will delay its plan to increase crude exports even as prices decline.
China Nov industrial production rose +6.2% y/y, stronger than expectations of +5.7% y/y and the fastest pace of increase in 5 months. In addition, energy producers saw some strength after crude oil prices rebounded from a 6-3/4 year low and closed higher.
Mar 10-year T-notes (ZNH16 -0.10%) this morning are down -7 ticks. Monday's closes: TYH6 -23.50, FVH6 -13.50. Mar T-notes on Monday closed lower on long liquidation on expectations for the FOMC to raise the federal funds rate by 25 bp on Wednesday and on carryover weakness from a slide in German bund prices after ECB President Draghi said he expects inflation to return to target "without delay."
The dollar index (DXY00 -0.02%) this morning is down -0.067 (-0.07%) at a 5-week low. EUR/USD (^EURUSD) is up +0.0015 (+0.14%) at a 1-1/2 month high. USD/JPY (^USDJPY) is up +0.12 (+0.10%). Monday's closes: Dollar Index +0.039 (+0.04%), EUR/USD +0.0006 (+0.05%), USD/JPY +0.02 (+0.02%). The dollar index on Monday closed slightly higher on expectations for the Fed to raise interest rates at the conclusion of Wednesday's FOMC meeting and on the rally in stocks, which caused USD/JPY to recover from a 5-week low and close higher on reduced safe-haven demand or the yen. The dollar was undercut as EUR/USD which rose to 5-week high after Eurozone Oct industrial production rose more than expected and after ECB President Draghi said he expects inflation to return to target "without delay."
Jan crude oil (CLF16 +0.77%) this morning is up +47 cents (+1.29%) and Jan gasoline (RBF16 -1.50%) is down -0.0199 (-1.58%). Monday's closes: CLF6 +0.65 (+1.82%), RBF6 -0.0386 (-3.01%). Jan crude oil and gasoline on Monday settled mixed as Jan crude recovered from a 6-3/4 year low. Crude oil prices received a boost from short-covering on news that China Nov industrial production and retail sales rose more than expected, and optimism that Congress may lift the 40-year old U.S. crude export ban. Crude prices earlier slumped to a fresh 6-3/4 year low after Iran's deputy oil minister said that there's "absolutely no chance" Iran will delay its plan to increase crude exports even as prices decline.
GLOBAL EVENT CALENDAR12/15/2015
| US | 0830 ET | Dec Empire manufacturing survey of general business conditions expected +3.74 to -7.00, Nov +0.62 to -10.74. |
| 0830 ET | Nov CPI expected unch m/m and +0.5% y/y, Oct +0.2% m/m and +0.2% y/y. Nov CPI ex food & energy expected +0.2% m/m and+2.0% y/y, Oct +0.2% m/m and +1.9% y/y. | |
| 0930 ET | FOMC begins 2-day policy meeting. | |
| 1000 ET | Dec NAHB housing market index expected +1 to 63, Nov -3 to 62. | |
| EUR | 0200 ET | Eurozone Nov new car registrations, Oct +2.9% y/y. |
| 0500 ET | Eurozone Q3 employment, Q2 +0.3% q/q and +0.8% y/y. | |
| UK | 0430 ET | UK Nov CPI expected -0.1% m/m and +0.1% y/y, Oct +0.1% m/m and -0.1% y/y. Nov core CPI expected +1.2% y/y, Oct +1.1% y/y. |
| 0430 ET | UK Nov RPI expected unch m/m and +0.9% y/y, Oct unch m/m and +0.7% y/y. Nov RPI ex mortgage interest payments expected +1.0% y/y, Oct +0.8% y/y. | |
| 0430 ET | UK Nov PPI input prices expected -1.0% m/m and -12.4% y/y, Oct +0.2% m/m and -12.1% y/y. | |
| 0430 ET | UK Nov PPI output prices expected -0.1% m/m and -1.3% y/y, Oct unch m/m and -1.3% y/y. Nov PPI output core expected unch m/m and +0.1% y/y, Oct -0.1% m/m and +0.3% y/y. | |
| 0430 ET | UK Oct ONS house prices, Sep +6.1% y/y. | |
| GER | 0500 ET | German Dec ZEW expectations of economic growth survey expected +4.6 to 15.0, Nov 10.4. Dec ZEW survey current situation expected-0.2 to 54.2, Nov 54.4. |
U.S. STOCK CALENDAR12/15/2015
| Company | Ticker | Time | Event Description | Period | Estimate |
|---|---|---|---|---|---|
| FactSet Research Systems Inc | FDS US | 7:00 | Q1 2016 Earnings Release | Q1 2016 | 1.463 |
| AGCO Corp | AGCO US | 8:30 | Analyst Meeting | Y 2015 | |
| Kennametal Inc | KMT US | 9:00 | Analyst Day | Y 2015 | |
| 3M Co | MMM US | 9:00 | Q4 2016 Guidance Call | Q4 2016 | |
| AECOM | ACM US | 9:00 | Investor Day | Y 2015 | |
| American Water Works Co Inc | AWK US | 9:00 | Analyst Day | Y 2015 | |
| Liberty Property Trust | LPT US | 10:00 | Q4 2016 Guidance Call | Q4 2016 | |
| AmTrust Financial Services Inc | AFSI US | 10:00 | Extraordinary Shareholders Meeting | ||
| FactSet Research Systems Inc | FDS US | 11:00 | Q1 2016 Earnings Call | Q1 2016 | |
| WESCO International Inc | WCC US | 11:00 | Q4 2016 Guidance Call | Q4 2016 | |
| SolarCity Corp | SCTY US | 12:30 | Analyst Day | Y 2015 | |
| FactSet Research Systems Inc | FDS US | 15:00 | Annual General Meeting | Y 2015 | |
| Dover Corp | DOV US | 18:30 | Investor Meeting | Y 2015 | |
| American Express Co | AXP US | Credit-card Charge-offs and Delinquencies | |||
| Baker Hughes Inc | BHI US | U.S. Justice Department Deadline on Decision of Halliburton's Takeover of Baker | |||
| JPMorgan Chase & Co | JPM US | Credit-card Charge-offs and Delinquencies | |||
| Equifax Inc | EFX US | Investor Meeting - Baltimore | Y 2015 | ||
| Halliburton Co | HAL US | U.S. Justice Department Deadline on Decision of Halliburton's Takeover of Baker | |||
| Bank of America Corp | BAC US | Credit-card Charge-offs and Delinquencies | |||
| Citigroup Inc | C US | Credit-card Charge-offs and Delinquencies | |||
| Questar Corp | STR US | Roadshow - Los Angeles | Y 2015 | ||
| Morgan Stanley | MS US | Credit-card Charge-offs and Delinquencies | |||
| Capital One Financial Corp | COF US | Credit-card Charge-offs and Delinquencies | |||
| AmTrust Financial Services Inc | AFSI US | Special Meeting | |||
| Discover Financial Services | DFS US | Credit-card Charge-offs and Delinquencies | |||
| Synchrony Financial | SYF US | Credit-card Charge-offs and Delinquencies |
Thursday, March 12, 2015
BARCHART MORNING CALL 3/12
BARCHART MORNING CALL
China Feb new yuan loans were 1.020 trillion yuan, more than expectations of 1.000 trillion yuan, Feb aggregate financing, China's broadest measure of new credit, was 1.35 trillion yuan ($215.5 billion), above expectations of 1.00 trillion yuan.
ECB Executive Board member Coeure said the ECB has bought 9.8 billion-euros of assets during the first three days of its QE program with an average maturity of 9 years, which is "very important" because it will affect the yield curve. He also said the ECB's QE program could go beyond Sep 2016 "if needed."
Eurozone Jan industrial production unexpectedly fell -0.1% m/m, weaker than expectations of +0.2% m/m. On an annual basis, Jan industrial production rose +1.2% y/y, stronger than expectations of +0.1% y/y.
The Japan Feb consumer confidence index rose +1.6 to 40.7, stronger than expectations of +0.4 to 39.5 and the highest in 6 months.
The Japan Q1 BSI all-industry business conditions was 1.9, weaker than expectations of 6.0 and the lowest since Q1 of 2013. The Q1 BSI large manufacturing business conditions fell to 2.4 from 8.1 in Q4.
The Japan Jan tertiary industry index rose +1.4% m/m, stronger than expectations of +0.5% m/m and the largest increase in 10 months.
There are three of the Russell 1000 companies that report earnings today: Dollar General (consensus $1.17), Rice Energy (0.04), Ulta Salon (1.27). Equity conferences during the remainder of this week include: Barclays Capital Health Care Conference on Tue-Thu, Deutsche Bank Regional Banks Summit on Thu, Nomura - Conference: US Software Conference - New York on Thu.
Morgan Stanley (MS +0.20%) gained over 2% in pre-market trading after it announced a $3.1 billion share repurchase plan.
Lumber Liquidators (LL +10.65%) lowered guidance on Q1 revenue to $253.6 million-$265.6 million, below consensus of $275.98 million.
The Children's Place (PLCE -0.41%) reported Q4 adjusted EPS of 94 cents, higher than consensus of 93 cents, but then said it sees fiscal 2015 same-store-sales flat to up 1% as it lowered guidance on fiscal 2015 adjusted EPS to $3.15-$3.30, below consensus of $3.41.
Men's Wearhouse (MW +0.33%) rose over 5% in after-hours trading after it reported a Q4 adjusted EPS loss of -3 cents, a smaller loss than consensus of -7 cents.
State Street (STT +1.51%) announced a $1.8 billion share buyback program.
JP Energy (JPEP +2.19%) reported a Q4 EPS loss of -51 cents, weaker than consensus of a 1 cent profit.
JPMorgan Chase (JPM +0.47%) announced a $6.4 billion share repurchase program.
Bank of America (BAC +2.03%) announced a $4 billion share repurchase program.
The Federal Reserve objected to the capital plans of Deutsche Bank Trust Corporation (DB +1.35%) and Banco Santander's (SAN +0.15%) Santander Holdings USA on qualitative concerns.
Scientific Games (SGMS -1.56%) reported a Q4 EPS loss of -55 cents, a smaller loss than consensus of -60 cents.
1-800-Flowers.com (FLWS +2.18%) was initiated with a 'Buy' at B. Riley with a price target of $15.
JetBlue (JBLU +0.94%) reported its traffic in February increased 10.0% from February 2014.
Jun 10-year T-notes (ZNM15 +0.22%) this morning are up +11 ticks. Jun 10-year T-note futures prices on Wednesday closed higher. Closes: TYM5 +2.00, FVM5 -0.25. Bullish factors included (1) carry-over support from a rally in German bund prices to all-time highs, and (2) strong foreign demand for the Treasury’s $21 billion 10-year T-note auction where indirect bidders, a proxy for foreign buyers, bought 58.6% of the notes at auction, way above the 10-auction average of 47.1%.
The dollar index (DXY00 -0.77%) this morning is down -0.663 (-0.66%). EUR/USD (^EURUSD) is up +0.0065 (+0.62%). USD/JPY (^USDJPY) is down -0.38 (-0.31%). The dollar index on Wednesday posted a new 11-1/2 year high and closed higher: Dollar index +1.177 (+1.19%), EUR/USD -0.01504 (-1.41%), USD/JPY +0.317 (+0.26%). Bullish factors included (1) weakness in EUR/USD which slid to a new 11-3/4 year low as the ECB bought European government bonds on the third day of its QE program, and (2) heightened Greek default concerns which boosted the safe-haven demand for the dollar after the 10-year Greek bond yield rose to a 1-month high.
Apr WTI crude oil (CLJ15 +0.91%) this morning is up +24 cents (+0.50%) and Apr gasoline (RBJ15 +1.45%) is up +0.0211 (+1.16%). Apr crude oil and gasoline prices on Wednesday settled mixed with Apr crude at a 5-week low and Apr gasoline at a 2-1/2 week low: CLJ5 -0.12 (-0.25), RBJ5 +0.0081 (+0.45%). Bearish factors included (1) continued strength in the dollar as the dollar index rose to a new 11-1/2 year high, and (2) the +4.51 million bbl increase in weekly EIA crude inventories to 448.9 million bbl, the highest since EIA data began in 1982. Gasoline recovered its losses and closed higher on supply concerns due to the partial closure of the Houston Ship Channel for a third day because of a crash that has slowed output at 5 refineries with 1.34 million bpd of capacity.
Thursday, March 12th, 2015View Older Reports
Everything you need to know about the markets in one free daily newsletter.
You will also receive a free subscription to the Barchart family of newsletters.
OVERNIGHT MARKETS AND NEWS
March E-mini S&Ps (ESH15 +0.21%) this morning are up +0.28% led by a rally in U.S. bank stocks after 29 banks passed stress tests Wednesday and several lenders boosted their share buyback programs. European stocks are down -0.05% after Eurozone Jan industrial production unexpectedly declined. Yields on European government bonds fell to record lows, with the yield on Germany's 10-year bund sliding to an all-time low of 0.186%, after ECB Executive Board member Coeure said the ECB has bought 9.8 billion-euros of assets during the first three days of its QE program with an average maturity of 9 years. Asian stocks closed mostly higher: Japan +1.43%, Hong Kong +0.34%, China +1.93%, Taiwan +0.76%, Australia +0.98%, Singapore -0.15%, South Korea -0.75%, India +0.95%. Japan's Nikkei Stock Index rose to the highest in 14-3/4 years, led by strength in exporters, as the yen held near a 7-1/2 year low against the dollar. China’s Shanghai Stock Index climbed to a 6-week high on signs that monetary easing is spurring demand for loans after data showed China Feb aggregate financing, China's broadest measure of new credit, rose more than expected. Commodity prices are mostly higher. Apr crude oil (CLJ15 +0.91%) is up +0.50%. Apr gasoline (RBJ15 +1.45%) is up +1.16%. Apr gold (GCJ15 +0.73%) is up +0.82%. May copper (HGK15 +2.84%) is up +2.57%. Agriculture prices are mostly higher. The dollar index (DXY00 -0.77%) is down -0.66%. EUR/USD (^EURUSD) is up +0.62%. USD/JPY (^USDJPY) is down -0.31%. Jun T-note prices (ZNM15 +0.22%) are up +11 ticks.China Feb new yuan loans were 1.020 trillion yuan, more than expectations of 1.000 trillion yuan, Feb aggregate financing, China's broadest measure of new credit, was 1.35 trillion yuan ($215.5 billion), above expectations of 1.00 trillion yuan.
ECB Executive Board member Coeure said the ECB has bought 9.8 billion-euros of assets during the first three days of its QE program with an average maturity of 9 years, which is "very important" because it will affect the yield curve. He also said the ECB's QE program could go beyond Sep 2016 "if needed."
Eurozone Jan industrial production unexpectedly fell -0.1% m/m, weaker than expectations of +0.2% m/m. On an annual basis, Jan industrial production rose +1.2% y/y, stronger than expectations of +0.1% y/y.
The Japan Feb consumer confidence index rose +1.6 to 40.7, stronger than expectations of +0.4 to 39.5 and the highest in 6 months.
The Japan Q1 BSI all-industry business conditions was 1.9, weaker than expectations of 6.0 and the lowest since Q1 of 2013. The Q1 BSI large manufacturing business conditions fell to 2.4 from 8.1 in Q4.
The Japan Jan tertiary industry index rose +1.4% m/m, stronger than expectations of +0.5% m/m and the largest increase in 10 months.
U.S. STOCK PREVIEW
Today’s Feb retail sales report is expected to show a fairly strong +0.5% increase ex-autos but increases of only +0.3% for both the headline report and the ex-gasoline report. Today's initial unemployment claims report is expected to show a decline of -15,000 while continuing claims are expected to show a decline of -21,000. Today’s Feb import price index is expected to show a small +0.2% m/m rebound after the plunge of -2.8% m/m seen in January. The Treasury today will sell $13 billion of 30-year T-bonds, concluding this week’s $58 billion coupon package.There are three of the Russell 1000 companies that report earnings today: Dollar General (consensus $1.17), Rice Energy (0.04), Ulta Salon (1.27). Equity conferences during the remainder of this week include: Barclays Capital Health Care Conference on Tue-Thu, Deutsche Bank Regional Banks Summit on Thu, Nomura - Conference: US Software Conference - New York on Thu.
OVERNIGHT U.S. STOCK MOVERS
Citigroup (C +2.15%) rose 3% in pre-market trading after it announced a $7.8 billion share buyback plan.Morgan Stanley (MS +0.20%) gained over 2% in pre-market trading after it announced a $3.1 billion share repurchase plan.
Lumber Liquidators (LL +10.65%) lowered guidance on Q1 revenue to $253.6 million-$265.6 million, below consensus of $275.98 million.
The Children's Place (PLCE -0.41%) reported Q4 adjusted EPS of 94 cents, higher than consensus of 93 cents, but then said it sees fiscal 2015 same-store-sales flat to up 1% as it lowered guidance on fiscal 2015 adjusted EPS to $3.15-$3.30, below consensus of $3.41.
Men's Wearhouse (MW +0.33%) rose over 5% in after-hours trading after it reported a Q4 adjusted EPS loss of -3 cents, a smaller loss than consensus of -7 cents.
State Street (STT +1.51%) announced a $1.8 billion share buyback program.
JP Energy (JPEP +2.19%) reported a Q4 EPS loss of -51 cents, weaker than consensus of a 1 cent profit.
JPMorgan Chase (JPM +0.47%) announced a $6.4 billion share repurchase program.
Bank of America (BAC +2.03%) announced a $4 billion share repurchase program.
The Federal Reserve objected to the capital plans of Deutsche Bank Trust Corporation (DB +1.35%) and Banco Santander's (SAN +0.15%) Santander Holdings USA on qualitative concerns.
Scientific Games (SGMS -1.56%) reported a Q4 EPS loss of -55 cents, a smaller loss than consensus of -60 cents.
1-800-Flowers.com (FLWS +2.18%) was initiated with a 'Buy' at B. Riley with a price target of $15.
JetBlue (JBLU +0.94%) reported its traffic in February increased 10.0% from February 2014.
MARKET COMMENTS
Mar E-mini S&Ps (ESH15 +0.21%) this morning are up +5.75 points (+0.28%). The S&P 500 index on Wednesday slid to a 1-month low and closed lower: S&P 500 -0.19%, Dow Jones -0.16%, Nasdaq -0.55%. Bearish factors included (1) concern about a Chinese economic slowdown after China Feb industrial production rose only +6.8% year-to-date, weaker than expectations of +7.7% and at the slowest pace of increase in 5-3/4 years, and (2) weakness in energy producers after crude oil fell to a 5-week low.Jun 10-year T-notes (ZNM15 +0.22%) this morning are up +11 ticks. Jun 10-year T-note futures prices on Wednesday closed higher. Closes: TYM5 +2.00, FVM5 -0.25. Bullish factors included (1) carry-over support from a rally in German bund prices to all-time highs, and (2) strong foreign demand for the Treasury’s $21 billion 10-year T-note auction where indirect bidders, a proxy for foreign buyers, bought 58.6% of the notes at auction, way above the 10-auction average of 47.1%.
The dollar index (DXY00 -0.77%) this morning is down -0.663 (-0.66%). EUR/USD (^EURUSD) is up +0.0065 (+0.62%). USD/JPY (^USDJPY) is down -0.38 (-0.31%). The dollar index on Wednesday posted a new 11-1/2 year high and closed higher: Dollar index +1.177 (+1.19%), EUR/USD -0.01504 (-1.41%), USD/JPY +0.317 (+0.26%). Bullish factors included (1) weakness in EUR/USD which slid to a new 11-3/4 year low as the ECB bought European government bonds on the third day of its QE program, and (2) heightened Greek default concerns which boosted the safe-haven demand for the dollar after the 10-year Greek bond yield rose to a 1-month high.
Apr WTI crude oil (CLJ15 +0.91%) this morning is up +24 cents (+0.50%) and Apr gasoline (RBJ15 +1.45%) is up +0.0211 (+1.16%). Apr crude oil and gasoline prices on Wednesday settled mixed with Apr crude at a 5-week low and Apr gasoline at a 2-1/2 week low: CLJ5 -0.12 (-0.25), RBJ5 +0.0081 (+0.45%). Bearish factors included (1) continued strength in the dollar as the dollar index rose to a new 11-1/2 year high, and (2) the +4.51 million bbl increase in weekly EIA crude inventories to 448.9 million bbl, the highest since EIA data began in 1982. Gasoline recovered its losses and closed higher on supply concerns due to the partial closure of the Houston Ship Channel for a third day because of a crash that has slowed output at 5 refineries with 1.34 million bpd of capacity.
GLOBAL EVENT CALENDAR03/12/2015
| US | 0830 ET | Weekly initial unemployment claims expected -15,000 to 305,000, previous +7,000 to 320,000. Weekly continuing claims expected -21,000 to 2.400 million, previous +17,000 to 2.421 million. |
| 0830 ET | Feb retail sales expected +0.3% and +0.5% ex autos, Jan -0.8% and -0.9% ex autos. Feb retail sales ex-auto and gas expected +0.3%, Jan +0.2%. | |
| 0830 ET | Feb import price index expected +0.2% m/m and -8.9% y/y, Jan -2.8% m/m and -8.0% y/y. | |
| 0830 ET | USDA weekly Export Sales. | |
| 1000 ET | Jan business inventories expected +0.1%, Dec +0.1%. | |
| 1100 ET | Treasury announces amount of 10-year TIPS to be auctioned Mar 19, previous $15 billion. | |
| 1200 ET | Q4 household change in net worth, Q4 -$141 billion. | |
| 1300 ET | Treasury auctions $13 billion 30-year T-bonds. | |
| 1400 ET | Feb monthly budget statement expected -$191.0 billion, Jan -$17.5 billion. | |
| JPN | 0100 ET | Japan Feb consumer confidence index expected +0.4 to 39.5, Jan 39.1. |
| GER | 0300 ET | Revised German Feb CPI (EU harmonized), previous +1.0% m/m and -0.1% y/y. |
| EUR | 0600 ET | Eurozone Jan industrial production expected +0.2% m/m and +0.1% y/y, Dec unch m/m and -0.2% y/y. |
U.S. STOCK CALENDAR03/12/2015
| Company | Ticker | Time | Event Description | Period | Estimate |
|---|---|---|---|---|---|
| Dollar General Corp | DG US | Bef-mkt | Q4 2015 Earnings Release | Q4 2015 | 1.171 |
| Rice Energy Inc | RICE US | Bef-mkt | Q4 2014 Earnings Release | Q4 2014 | 0.041 |
| WW Grainger Inc | GWW US | 8:00 | February 2015 Sales and Revenue Call | 2015 | |
| WW Grainger Inc | GWW US | 8:00 | February 2015 Sales and Revenue Release | 2015 | |
| Rice Energy Inc | RICE US | 9:00 | Q4 2014 Earnings Call | Q4 2014 | |
| National Fuel Gas Co | NFG US | 9:30 | Annual General Meeting | Y 2015 | |
| Walt Disney Co/The | DIS US | 10:00 | Annual General Meeting | Y 2015 | |
| Dollar General Corp | DG US | 10:00 | Q4 2015 Earnings Call | Q4 2015 | |
| Tahoe Resources Inc | THO CN | 11:00 | Q4 2014 Earnings Call | Q4 2014 | |
| United Technologies Corp | UTX US | 13:00 | Investor and Analyst Meeting | Y 2015 | |
| Alere Inc | ALR US | 13:00 | Investor Meeting | Y 2015 | |
| F5 Networks Inc | FFIV US | 14:00 | Annual General Meeting | Y 2015 | |
| Cabot Corp | CBT US | 16:00 | Annual General Meeting | Y 2015 | |
| Ulta Salon Cosmetics & Fragrance Inc | ULTA US | 17:00 | Q4 2015 Earnings Call | Q4 2015 | |
| Ulta Salon Cosmetics & Fragrance Inc | ULTA US | Aft-mkt | Q4 2015 Earnings Release | Q4 2015 | 1.266 |
Tuesday, March 3, 2015
BARCHART MORNING CALL 3/3
BARCHART MORNING CALL
Eurozone Jan PPI fell -0.9% m/m and -3.4% y/y, weaker than expectations of -0.7% m/m and -3.0% y/y, with the -3.4% y/y drop the biggest year-over-year decline in 5 years.
German Jan retail sales rose +2.9% m/m, stronger than expectations of +0.4% m/m and the largest monthly increase in 7 years. On an annual basis, Jan retail sales rose +5.3% y/y, stronger than expectations of +3.0% y/y.
UK Jan Markit/CIPS construction PMI unexpectedly rose +1.0 point to 60.1, stronger than expectations of -0.1 to 59.0 and the fastest pace of expansion in 4 months.
Japan Jan labor cash earnings rose +1.3% y/y, stronger than expectations of +0.5% y/y. Jan real cash earnings fell -1.5% y/y, the nineteenth consecutive month real cash earnings have declined.
Equity conferences during the remainder of this week include: Cowen & Co. Health Care Conference on Mon-Wed, 10th LNG Supplies for Asian Markets on Mon-Tue, Association of Insurance and Financial Analysts Conference on Mon-Tue, Citigroup Global Property CEO Conference on Mon-Wed, Raymond James & Associates Institutional Investors Conference on Mon-Wed, Morgan Stanley Technology Media & Telecom Conference on Mon-Thu, JMP Securities Technology Conference on Tue, SpeedNews 5th Annual Aerospace Raw Materials & Manufacturers Supply Chain Conference on Tue, ISI Industrial Conference on Tue, Bank of America Merrill Lynch Consumer & Retail Conference on Tue-Wed, J.P. Morgan Aviation, Transportation and Industrials Conference on Tue-Thu, Mitsubishi UFJ Securities 3rd Annual Seattle Consumer Conference on Wed, Morgan Stanley European MedTech & Services Conference on Wed, Simmons Energy Conference on Wed, UBS Natural Gas, Electric Power and MLP Conference on Wed, UBS Utilities and Natural Gas Conference on Wed, UBS Global Consumer Conference on Wed-Thu, Bank of America Merrill Lynch Refining Conference on Thu, Barclays Investment Grade Energy & Pipeline Conference on Thu, Pacific Crest Emerging Technology Summit on Thu, Morgan Stanley MLP/Diversified Natural Gas, Utilities Clean Tech Conference on Thu.
Navistar (NAV -0.58%) reported a Q1 EPS loss of -52 cents, a smaller loss than consensus of -$1.09.
Lumber Liquidators (LL -25.13%) was upgraded to 'Buy' from 'Neutral' at Janney Capital.
Dick's Sporting (DKS +2.46%) reported Q4 EPS of $1.30, above consensus of $1.22.
Best Buy (BBY +1.39%) reported Q4 EPS of $1.48, higher than consensus of $1.35.
AutoZone ({=AZO reported Q2 EPS of $6.51, better than consensus of $6.38.
Nortek (NTK +2.27%) reported Q4 EPS of 29 cents, well above consensus of 19 cents.
CBOE Holdings (CBOE -0.92%) reported that total options and futures volume at CBOE Holdings during February was 88.5 million contracts, down -17% m/m and -22% y/y.
Nabors Industries (NBR -2.11%) reported Q4 adjusted EPS of 33 cents, below consensus of 39 cents.
McDermott (MDR +4.40%) surged 20% in after-hours trading after it reported Q4 EPS of 3 cents, much better than consensus of a -6 cent loss, and then raised guidance on fiscal 2015 revenue to $3.3 billion-$3.6 billion, stronger than consensus of $2.79 billion.
Mylan (MYL +0.98%) reported Q4 adjusted EPS of $1.05, right on consensus, although Q4 revenue of $2.08 billion was better than consensus of $2.07 billion.
Herman Miller (MLHR +0.74%) lowered guidance on 2015 revenue to $2.118 billion-$2.153 billion, below consensus of $2.170 billion.
Caesar's (CZR +3.96%) slid over 4% in after-hours trading after it reported a Q4 EPS loss of -$7.00, more than four times consensus of a -$1.65 loss.
Jun 10-year T-notes (ZNM15 -0.09%) this morning are down -6 ticks at a 1-week low. Jun 10-year T-note futures prices on Monday closed lower. Closes: TYM5 -21.50, FVM5 -11.75. Bearish factors included (1) U.S. economic data on Feb ISM manufacturing and Jan personal spending that was close to expectations and fueled speculation that Fed will start to raise interest rates this year, and (2) reduced safe-haven demand after stocks rallied.
The dollar index (DXY00 +0.08%) this morning is up +0.049 (+0.05%) at a new 11-1/3 year high. EUR/USD (^EURUSD) is down -0.0024 (-0.21%). USD/JPY (^USDJPY) is down -0.26 (-0.22%). The dollar index on Monday climbed to a 5-week high and closed higher: Dollar index +0.169 (+0.18%), EUR/USD -0.00088 (-0.08%), USD/JPY +0.52 (+0.43%). Bullish factors included (1) The U.S. ISM manufacturing report that was close to expectations, which boosted speculation the Fed is closer to raising interest rates, and (2) weakness in the Chinese yuan which fell to a 2-year low against the dollar after China cut interest rates for the second time in 3 months.
Apr WTI crude oil (CLJ15 +1.57%) this morning is up +72 cents (+1.45%) and Apr gasoline (RBJ15 +2.64%) is up +0.0371 (+1.96%). Apr crude and Apr gasoline prices on Monday closed lower: CLJ5 -0.17 (-0.34%), RBJ5 -0.0629 (-3.18%). Bearish factors included (1) a rally in the dollar index to a 5-week high, and (2) increased crude output in Saudi Arabia, the largest OPEC producer, as Saudi Arabian Feb crude production rose +130,000 bpd to 9.85 million bpd, the highest in 17 months. Losses in crude were limited after an oil industry survey from Genscape Inc. said Wednesday’s EIA data will show a negligible increase of crude inventories at Cushing, OK, the delivery point for WTI futures, for the week ended Feb 27.
Tuesday, March 3rd, 2015View Older Reports
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OVERNIGHT MARKETS AND NEWS
March E-mini S&Ps (ESH15 -0.14%) this morning are down -0.09% and European stocks are down -0.19% led by a decline in bank stocks after Barclays fell over 3% when it said it set aside 750 million pounds ($1.2 billion) for the settlement of a currency-manipulation probe. Also, data from the Basel Committee on Banking Supervision said global banks are 305 billion euros ($341 billion) short of their liquidity coverage ratio (LCR). The Basel rule began to phase in Jan 1, when banks were required to have at least 60% of their liquidity buffers. The LCR takes full effect in 2019 when the LCR rises to 100%. The LCR was designed to require global banks have sufficient high-quality liquid assets to withstand a stressed 30-day funding scenario. Losses in European stocks are limited after German Jan retail sales posted the largest monthly increase in 7 years. Asian stocks closed mixed: Japan -0.06%, Hong Kong -0.74%, China -2.59%, Taiwan +0.05%, Australia -0.42%, Singapore +0.54%, South Korea +0.34%, India +0.46%. Chinese growth concerns undercut Asian stocks after the government-controlled Xinhua News Agency reported that Chinese Premier Li Keqiang will announce Thursday at the annual National People's Congress a Chinese growth target of 7% for 2015, down from 7.5% in 2014. Commodity prices are mixed. Apr crude oil (CLJ15 +1.57%) is up +1.45% and Apr gasoline (RBJ15 +2.64%) is up +1.96%. Apr gold (GCJ15 +0.14%) is down -0.02%. May copper (HGK15 -1.48%) is down -1.58%. Agriculture prices are higher. The dollar index (DXY00 +0.08%) is up +0.05% at a new 11-1/3 year high. EUR/USD (^EURUSD) is down -0.21%. USD/JPY (^USDJPY) is down -0.22%. Jun T-note prices (ZNM15 -0.09%) are down -6 ticks at a 1-week low.Eurozone Jan PPI fell -0.9% m/m and -3.4% y/y, weaker than expectations of -0.7% m/m and -3.0% y/y, with the -3.4% y/y drop the biggest year-over-year decline in 5 years.
German Jan retail sales rose +2.9% m/m, stronger than expectations of +0.4% m/m and the largest monthly increase in 7 years. On an annual basis, Jan retail sales rose +5.3% y/y, stronger than expectations of +3.0% y/y.
UK Jan Markit/CIPS construction PMI unexpectedly rose +1.0 point to 60.1, stronger than expectations of -0.1 to 59.0 and the fastest pace of expansion in 4 months.
Japan Jan labor cash earnings rose +1.3% y/y, stronger than expectations of +0.5% y/y. Jan real cash earnings fell -1.5% y/y, the nineteenth consecutive month real cash earnings have declined.
U.S. STOCK PREVIEW
Today’s Feb total vehicle sales report is expected to edge higher to 16.70 million units from 16.56 million units in January. There are 2 of the S&P 500 companies that report earnings today: Best Buy (consensus $1.35), AutoZone (6.38).Equity conferences during the remainder of this week include: Cowen & Co. Health Care Conference on Mon-Wed, 10th LNG Supplies for Asian Markets on Mon-Tue, Association of Insurance and Financial Analysts Conference on Mon-Tue, Citigroup Global Property CEO Conference on Mon-Wed, Raymond James & Associates Institutional Investors Conference on Mon-Wed, Morgan Stanley Technology Media & Telecom Conference on Mon-Thu, JMP Securities Technology Conference on Tue, SpeedNews 5th Annual Aerospace Raw Materials & Manufacturers Supply Chain Conference on Tue, ISI Industrial Conference on Tue, Bank of America Merrill Lynch Consumer & Retail Conference on Tue-Wed, J.P. Morgan Aviation, Transportation and Industrials Conference on Tue-Thu, Mitsubishi UFJ Securities 3rd Annual Seattle Consumer Conference on Wed, Morgan Stanley European MedTech & Services Conference on Wed, Simmons Energy Conference on Wed, UBS Natural Gas, Electric Power and MLP Conference on Wed, UBS Utilities and Natural Gas Conference on Wed, UBS Global Consumer Conference on Wed-Thu, Bank of America Merrill Lynch Refining Conference on Thu, Barclays Investment Grade Energy & Pipeline Conference on Thu, Pacific Crest Emerging Technology Summit on Thu, Morgan Stanley MLP/Diversified Natural Gas, Utilities Clean Tech Conference on Thu.
OVERNIGHT U.S. STOCK MOVERS
Nomura downgraded Micron (MU +1.86%) to 'Neutral' from 'Buy.'Navistar (NAV -0.58%) reported a Q1 EPS loss of -52 cents, a smaller loss than consensus of -$1.09.
Lumber Liquidators (LL -25.13%) was upgraded to 'Buy' from 'Neutral' at Janney Capital.
Dick's Sporting (DKS +2.46%) reported Q4 EPS of $1.30, above consensus of $1.22.
Best Buy (BBY +1.39%) reported Q4 EPS of $1.48, higher than consensus of $1.35.
AutoZone ({=AZO reported Q2 EPS of $6.51, better than consensus of $6.38.
Nortek (NTK +2.27%) reported Q4 EPS of 29 cents, well above consensus of 19 cents.
CBOE Holdings (CBOE -0.92%) reported that total options and futures volume at CBOE Holdings during February was 88.5 million contracts, down -17% m/m and -22% y/y.
Nabors Industries (NBR -2.11%) reported Q4 adjusted EPS of 33 cents, below consensus of 39 cents.
McDermott (MDR +4.40%) surged 20% in after-hours trading after it reported Q4 EPS of 3 cents, much better than consensus of a -6 cent loss, and then raised guidance on fiscal 2015 revenue to $3.3 billion-$3.6 billion, stronger than consensus of $2.79 billion.
Mylan (MYL +0.98%) reported Q4 adjusted EPS of $1.05, right on consensus, although Q4 revenue of $2.08 billion was better than consensus of $2.07 billion.
Herman Miller (MLHR +0.74%) lowered guidance on 2015 revenue to $2.118 billion-$2.153 billion, below consensus of $2.170 billion.
Caesar's (CZR +3.96%) slid over 4% in after-hours trading after it reported a Q4 EPS loss of -$7.00, more than four times consensus of a -$1.65 loss.
MARKET COMMENTS
Mar E-mini S&Ps (ESH15 -0.14%) this morning are down -2.00 points (-0.09%). The S&P 500 index on Monday closed higher: S&P 500 +0.61%, Dow Jones +0.86%, Nasdaq +0.95%. Bullish factors included (1) China’s second interest rate cut in 3 months, and (2) increased M&A activity after NXP Semiconductors NV agreed to buy Freescale Semiconductor Ltd. for about $11.8 billion and after Cardinal Health agreed to buy Johnson & Johnson’s Cordis business for $1.94 billion. Stocks ignored bearish factors that included (1) weaker-than-expected U.S. Jan personal spending and personal income, and (2) the -0.6 point decline in the U.S. Feb ISM manufacturing index to 52.9, weaker than expectations of -0.5 to 53.0 and the slowest pace of expansion in 13 months.Jun 10-year T-notes (ZNM15 -0.09%) this morning are down -6 ticks at a 1-week low. Jun 10-year T-note futures prices on Monday closed lower. Closes: TYM5 -21.50, FVM5 -11.75. Bearish factors included (1) U.S. economic data on Feb ISM manufacturing and Jan personal spending that was close to expectations and fueled speculation that Fed will start to raise interest rates this year, and (2) reduced safe-haven demand after stocks rallied.
The dollar index (DXY00 +0.08%) this morning is up +0.049 (+0.05%) at a new 11-1/3 year high. EUR/USD (^EURUSD) is down -0.0024 (-0.21%). USD/JPY (^USDJPY) is down -0.26 (-0.22%). The dollar index on Monday climbed to a 5-week high and closed higher: Dollar index +0.169 (+0.18%), EUR/USD -0.00088 (-0.08%), USD/JPY +0.52 (+0.43%). Bullish factors included (1) The U.S. ISM manufacturing report that was close to expectations, which boosted speculation the Fed is closer to raising interest rates, and (2) weakness in the Chinese yuan which fell to a 2-year low against the dollar after China cut interest rates for the second time in 3 months.
Apr WTI crude oil (CLJ15 +1.57%) this morning is up +72 cents (+1.45%) and Apr gasoline (RBJ15 +2.64%) is up +0.0371 (+1.96%). Apr crude and Apr gasoline prices on Monday closed lower: CLJ5 -0.17 (-0.34%), RBJ5 -0.0629 (-3.18%). Bearish factors included (1) a rally in the dollar index to a 5-week high, and (2) increased crude output in Saudi Arabia, the largest OPEC producer, as Saudi Arabian Feb crude production rose +130,000 bpd to 9.85 million bpd, the highest in 17 months. Losses in crude were limited after an oil industry survey from Genscape Inc. said Wednesday’s EIA data will show a negligible increase of crude inventories at Cushing, OK, the delivery point for WTI futures, for the week ended Feb 27.
GLOBAL EVENT CALENDAR03/03/2015
| US | 0945 ET | Feb New York ISM, Jan -26.3 to 44.5. |
| 2015 ET | Fed Chair Janet Yellen will deliver a prepared text to the Citizens Budget Commissions Annual Awards Dinner on bank regulation and supervision. No Q&A. | |
| n/a | Feb total vehicle sales expected 16.70 million, Jan 16.56 million. Feb domestic vehicle sales expected 13.40 million, Jan 13.31 million. | |
| GER | 0200 ET | German Jan retail sales expected +0.4% m/m and +3.0% y/y, Dec +0.6% m/m and +4.8% y/y. |
| UK | 0430 ET | UK Feb Markit/CIPS construction PMI expected -0.1 to 59.0, Jan 59.1. |
| 1901 ET | UK Feb BRC shop price index expected -1.2% y/y, Jan -1.3% y/y. | |
| EUR | 0500 ET | Eurozone Jan PPI expected -0.7% m/m and -3.0% y/y, Dec -1.0% m/m and -2.7% y/y. |
| CHI | 2045 ET | China Feb HSBC composite PMI, Jan 51.0. |
U.S. STOCK CALENDAR03/03/2015
| Company | Ticker | Time | Event Description | Period | Estimate |
|---|---|---|---|---|---|
| AutoZone Inc | AZO US | Bef-mkt | Q2 2015 Earnings Release | Q2 2015 | 6.378 |
| Kate Spade & Co | KATE US | Bef-mkt | Q4 2014 Earnings Release | Q4 2014 | 0.273 |
| Navistar International Corp | NAV US | Bef-mkt | Q1 2015 Earnings Release | Q1 2015 | -1.112 |
| Dick's Sporting Goods Inc | DKS US | Bef-mkt | Q4 2015 Earnings Release | Q4 2015 | 1.219 |
| Best Buy Co Inc | BBY US | 7:00 | Q4 2015 Earnings Release | Q4 2015 | 1.352 |
| Best Buy Co Inc | BBY US | 8:00 | Q4 2015 Earnings Call | Q4 2015 | |
| MBIA Inc | MBI US | 8:00 | Q4 2014 Earnings Call | Q4 2014 | |
| Automatic Data Processing Inc | ADP US | 8:30 | Investor Day | Y 2015 | |
| Kate Spade & Co | KATE US | 8:30 | Q4 2014 Earnings Call | Q4 2014 | |
| Anadarko Petroleum Corp | APC US | 9:00 | Q4 2015 Guidance Call | Q4 2015 | |
| Navistar International Corp | NAV US | 9:00 | Q1 2015 Earnings Call | Q1 2015 | |
| Ford Motor Co | F US | 9:15 | February 2015 Sales and Revenue Release | 2015 | |
| AutoZone Inc | AZO US | 10:00 | Q2 2015 Earnings Call | Q2 2015 | |
| Ford Motor Co | F US | 10:00 | February 2015 Sales and Revenue Call | 2015 | |
| Dick's Sporting Goods Inc | DKS US | 10:00 | Q4 2015 Earnings Call | Q4 2015 | |
| Chimera Investment Corp | CIM US | 10:00 | Q4 2014 Earnings Call | Q4 2014 | |
| Nabors Industries Ltd | NBR US | 14:00 | Q4 2014 Earnings Call | Q4 2014 | |
| Target Corp | TGT US | 14:30 | Financial Community Meeting | Y 2015 | |
| Ascena Retail Group Inc | ASNA US | 16:00 | Q2 2015 Earnings Release | Q2 2015 | 0.09 |
| Ascena Retail Group Inc | ASNA US | 16:30 | Q2 2015 Earnings Call | Q2 2015 | |
| Veeva Systems Inc | VEEV US | 16:30 | Q4 2015 Earnings Call | Q4 2015 | |
| Middleby Corp/The | MIDD US | Aft-mkt | Q4 2014 Earnings Release | Q4 2014 | 0.98 |
| Veeva Systems Inc | VEEV US | Aft-mkt | Q4 2015 Earnings Release | Q4 2015 | 0.089 |
| Hologic Inc | HOLX US | Annual General Meeting | |||
| Greif Inc | GEF US | Annual General Meeting | |||
| Delta Air Lines Inc | DAL US | February 2015 Sales and Revenue Release - Traffic Results | 2015 |
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