Morning Call 12/8

Barchart Morning Call

Barchart.com - 4 minutes ago

OVERNIGHT MARKETS AND NEWS

Dec E-mini S&Ps (ESZ16 +0.10%) are up +0.02% and European stocks are up +0.30% at an 11-month high as the markets expect the ECB later today to announce an extension of its QE program. Government bond prices fell and EUR/USD (^EURUSD) rose to a 3-week high on speculation the ECB may also announce a slower pace of asset purchases and that this will be the last extension of QE before the ECB starts to taper its bond buying. The weaker dollar has boosted crude oil prices with Jan WTI crude (CLF17 +0.86%) up +0.78%, which has also lifted energy producing stocks. Stock markets around the world also rose on signs of economic strength in China after China Nov exports unexpectedly rose for the first time in 8 months and after China imports posted their largest increase in 2 years. Asian stocks settled mostly higher: Japan +1.45%, Hong Kong +0.27%, China -0.21%, Taiwan +1.21%, Australia +1.20%, Singapore -0.03%, South Korea +2.21%, India +1.74%. Japan's Nikkei Stock Index climbed to an 11-month high as strength in Chinese Nov imports boosted exporter stocks.

The dollar index (DXY00 -0.34%) is down -0.28% at a 3-week low. EUR/USD (^EURUSD) is up +0.31% at a 3-week high. USD/JPY (^USDJPY) is down -0.29%.

Mar 10-year T-note prices (ZNH17 -0.18%) are down -7 ticks.

China Nov exports unexpectedly rose +0.1% y/y, stronger than expectations of -5.0% y/y and the first increase in 8 months. Nov imports unexpectedly rose +6.7% y/y, stronger than expectations of -1.9% y/y and the biggest increase in 2 years.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly initial unemployment claims (expected -13,000 to 255,000, previous +17,000 to 268,000) and continuing claims (expected -33,000 to 2.048 million, previous +38,000 to 2.081 million), (2) USDA weekly Export Sales.

Russell 1000 earnings reports today include: Toro (consensus $0.22), Cooper Cos (2.25), Broadcom (3.36).

U.S. IPO's scheduled to price today: Ichor Holdings (ICHR), Athene Holding (ATH).

Equity conferences during the remainder of this week include: Citi Global Health Care Conference on Wed-Thu, Barclays Global Technology, Media and Telecommunications Conference on Wed-Thu, Bernstein Consumer Summit on Wed-Thu, Capital One Southcoast Energy Conference on Wed-Thu, ACI European Biopolymer Summit on Thu.

OVERNIGHT U.S. STOCK MOVERS

L-3 Communications Holdings (LLL +1.96%) was downgraded to 'Neutral' from 'Buy' at Bank of America/Merrill Lynch with a price target of $170.

Priceline.com (PCLN +1.48%) was rated a new 'Buy' at CLSA with a price target of $1,900.

Tailored Brands (TLRD +3.39%) was upgraded to 'Buy' from 'Neutral' at Mizuho Securities with a 12-month target price of $25.

Lululemon Athletica (LULU +4.54%) surged 13% in after-hours trading after it reported Q3 adjusted EPS of 47 cents, higher than consensus of 43 cents, and then said its board approved up to $100 million in stock repurchases.

Ollie's Bargain Outlet Holdings (OLLI +1.11%) fell over 2% in after-hours trading after it reported Q3 comparable store sales rose +1.8%, below consensus of +2.1%.

Corning (GLW +2.46%) gained over 1% in after-hours trading after it announced a new $4 billion share repurchase program.

United Natural Foods (UNFI +0.88%) slid over 2% in after-hours trading after it reported Q1 EPS of 58 cents, below consensus of 62 cents.

Verint Systems (VRNT +0.26%) tumbled over 12% in after-hours trading after it reported Q3 adjusted EPS of 59 cents, weaker than consensus of 70 cents, and then lowered guidance on fiscal 2017 adjusted EPS to $2.50, below a September 7 view of $2.85.

Comtech (CMTL +6.43%) dropped 7% in after-hours trading after it reported Q1 revenue of $135.8 million, below consensus of $139.2 million, and then cut its quarterly dividend to 10 cents a share from 30 cents a share.

H&R Block (HRB +2.86%) jumped nearly 6% in after-hours trading after it reported Q2 revenue of $131.3 million, higher than consensus of $127 million.

Casey's General Stores (CASY +0.93%) fell over 2% in after-hours trading after it reported Q2 EPS of $1.44, below consensus of $1.57.

Voyager Therapeutics (VYGR -1.93%) surged over 30% in after-hours trading after it announced positive results on its phase 1b trial of its VY-AADC01 gene therapy that showed improved measures of motor function in in patients with advanced Parkinson's disease.

MARKET COMMENTS

Dec E-mini S&Ps (ESZ16 +0.10%) this morning are up +0.50 of a point (+0.02%). Wednesday's closes: S&P 500 +1.32%, Dow Jones +1.55%, Nasdaq +1.32%. The S&P 500 on Wednesday pushed up to a new record high and closed higher on carry-over support from a rally in European stocks to a 7-1/4 month high on expectations that the ECB on Thursday will extend QE past March 2017. Stocks were also boosted by reduced interest rate concerns as the 10-year T-note yield fell -4 bp.

Mar 10-year T-notes (ZNH17 -0.18%) this morning are down -7 ticks. Wednesday's closes: TYH7 +11.00, FVH7 +7.00. Mar 10-year T-notes on Wednesday closed higher on the -2.28% slide in crude oil prices, which undercut inflation expectations. T-notes were also boosted by carry-over support from a rally in German bunds ahead of Thursday's ECB meeting.

The dollar index (DXY00 -0.34%) this morning is down -0.284 (-0.28%) at a 3-week low. EUR/USD (^EURUSD) is up +0.0033 (+0.31%) at a 3-week high. USD/JPY (^USDJPY) is down -0.33 (-0.29%). Wednesday's closes: Dollar index -0.260 (-0.26%), EUR/USD +0.0035 (+0.33%), USD/JPY -0.25 (-0.22%). The dollar index on Wednesday closed lower on a -4 bp decline in the 10-year T-note yield, which reduced the dollar's interest rate differentials. In addition, there was strength in EUR/USD on short-covering ahead of Thursday's ECB meeting.

Jan WTI crude oil prices (CLF17 +0.86%) this morning are up +39 cents (+0.78%) and Jan gasoline (RBF17 -0.20%) is -0.0038 (-0.25%). Wednesday's closes: Jan crude -1.16 (-2.28%), Jan gasoline -0.0291 (-1.89%). Jan crude oil and gasoline on Wednesday closed lower on the +3.783 million bbl increase in crude stockpiles at Cushing to a 5-1/2 month high and on the +3.425 million bbl increase in weekly EIA gasoline supplies, a larger increase than expectations of +1.6 million bbl.

GLOBAL EVENT CALENDAR12/08/2016

		Thursday, Dec 8
US	0830 ET	Weekly initial unemployment claims expected -13,000 to 255,000, previous +17,000 to 268,000. Weekly continuing claims expected -33,000 to 2.048 million, previous +38,000 to 2.081 million.
	0830 ET	USDA weekly Export Sales.
	1100 ET	Treasury announces amount of 3-year T-notes (previous $24 billion), 10-year T-notes (previous $23 billion) and 30-year T-bonds (previous $15 billion) to be auctioned Dec 12-13.
		Friday, Dec 9
US	1000 ET	Revised Oct wholesale inventories expected -0.4%, prelim-Oct -0.4%. Oct wholesale trade sales expected +0.7% m/m, Sep +0.2%.
	1000 ET	Preliminary-Dec University of Michigan U.S. consumer sentiment index expected +0.7 to 94.5, Nov +6.6 to 93.8.
	1200 ET	USDA WASDE Dec crop production.

U.S. STOCK CALENDAR12/08/2016

Company	Ticker	Time	Event Description	Period	Estimate
Dell Technologies Inc Class V	DVMT US	Bef-mkt	Q3 2017 Earnings Release	Q3 2017
Toro Co/The	TTC US	7:30	Q4 2016 Earnings Release	Q4 2016	0.216
Principal Financial Group Inc	PFG US	8:00	Roadshow	Y 2016
Hilton Worldwide Holdings Inc	HLT US	8:00	Investor Day	Y 2016
Nielsen Holdings PLC	NLSN US	8:00	Analyst Day	Y 2016
Dell Technologies Inc Class V	DVMT US	8:00	Q3 2017 Earnings Call	Q3 2017
CMS Energy Corp	CMS US	8:30	Investor Meeting
UGI Corp	UGI US	8:30	Investor Day	Y 2016
Verisk Analytics Inc	VRSK US	8:30	Investor Day	Y 2016
Baker Hughes Inc	BHI US	9:00	Investor Meeting	Y 2016
General Electric Co	GE US	9:00	Investor Meeting	Y 2016
Edwards Lifesciences Corp	EW US	9:00	Investor Meeting	Y 2016
Casey's General Stores Inc	CASY US	10:30	Q2 2017 Earnings Call	Q2 2017
Toro Co/The	TTC US	11:00	Q4 2016 Earnings Call	Q4 2016
Palo Alto Networks Inc	PANW US	13:00	Annual General Meeting
Cooper Cos Inc/The	COO US	16:15	Q4 2016 Earnings Release	Q4 2016	2.248
Cooper Cos Inc/The	COO US	17:00	Q4 2016 Earnings Call	Q4 2016
Broadcom Ltd	AVGO US	17:00	Q4 2016 Earnings Call	Q4 2016
Broadcom Ltd	AVGO US	Aft-mkt	Q4 2016 Earnings Release	Q4 2016	3.358
American Airlines Group Inc	AAL US		November 2016 Sales and Revenue Release - Traffic Results	2016
Vail Resorts Inc	MTN US		Annual General Meeting
TD Ameritrade Holding Corp	AMTD US		November 2016 Sales and Revenue Release	2016
Spirit Airlines Inc	SAVE US		November 2016 Sales and Revenue Release - Traffic Results	2016
Alere Inc	ALR US		Annual General Meeting
United Continental Holdings Inc	UAL US		November 2016 Sales and Revenue Release - Traffic Results	2016

5 Large Caps for Momentum Investors

Today I used Barchart to sort the S&P 500 Large Cap Index stocks to find stocks for momentum investors.  First I sorted for the most frequent new highs in the last month then again for positive short term buy signals.  Next I used the Flipchart feature to review the charts.  Today;s watch list includes:

Oneok (OKE), Baxter International (BAX), L-3 Communications (LLL), Republic Services (RSG) and Martin Marietta Materials (MLM)

Oneok (OKE)

Barchart technical indicators:

• 96% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 17 new highs and up 32.21% in the last month
• Relative Strength Index 79.75%
• Technical support level at 39.29
• Recently traded at 41.98 with a 50 day moving average of 32.60

Baxter International (BAX)

Barchart technical indicators:

• 88% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 15 new highs and up 7.41% in the last month
• Relative Strength Index 68.35%
• Technical support level at 44.87
• Recently traded at 45.85 with a 50 day moving average of 42.45

L-3 Communications (LLL)

Barchart technical indicators:

• 72% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 14 new highs and up 12.17% in the last month
• Relative Strength Index 71.20%
• Technical support level at 133.05
• Recently traded at 135.99 with a 50 day moving average of 123.89

Republic Services (RSG)

Barchart technical indicators:

• 88% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 14 new highs and up 5.37% in the last month
• Relative Strength Index 64.10%
• Technical support level at 47.99
• Recently traded at 48.72 with a 50 day moving average of 47.21

Martin Marietta Materials (MLM)

Barchart technical indicators:

• 96% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 13 new highs and up 13.33% in the last month
• Relative Strength Index 72.19%
• Technical support level at 181.06
• Recently traded at 187.13 with a 50 day moving average of 165.23

L-3 Communications - Chart of the day

L-3 Communications (LLL) is the Barchart Chart of the Day.  The electronic company has a Trend Spotter buy signal, a Weighted Alpha of 20.42+ and gained 16.61% in the last year.

The Chart of the Day belongs to L-3 Communications (LLL).  I found the electronic stock by using Barchart to sort today's All Time High list first for the most frequent number of new highs in the last month then again for technical buy signals of 80% or more.  Next I used the Flipchart feature to review the chart for consistency.  Since the Trend Spotter signaled a buy on 2/9 the stock gained 13.03%.

L-3 Communications Holdings is a merchant supplier of sophisticated secure communication systems and specialized communication products. They produce secure, high data rate communication systems, microwave components, avionics and ocean systems and telemetry, instrumentation and space products. L-3's systems and specialized products are used to connect a variety of airborne, space, ground-and sea-based communication systems and are used in the transmission, processing, recording, monitoring and dissemination functions of these communication systems.

The status of Barchart's Opinion trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 10 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com web site when you read this report.

Barchart technical indicators:

• 100% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 13 new highs and up 12.65% in the last month
• Relative Strength Index 85.57%
• Technical support level at 131.61
• Recently traded at 113.54 with a 50 day moving average of 120.55

Fundamental factors:

• Market Cap $10.47 billion
• P/E 16.90
• Dividend yield 2.14%
• Revenue expected to be down 3.50% this year but up again by 1.70% next year
• Earnings estimated to increase 11.60% this year, an additional 10.80% next year and continue to compound at an annual rate of 6.34% for the next 5 years
• Wall Street analysts issued 2 strong buy, 2 buy and 8 hold recommendations on the stock

MORNING CALL 2/1

MORNING CALL

Monday, February 1st, 2016View Older Reports

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OVERNIGHT MARKETS AND NEWS

March E-mini S&Ps (ESH16 -0.62%) are down -0.35% and European stocks are down -0.71% as Chinese economic concerns intensified after Chinese manufacturing activity last month contracted by the most in 3-1/3 years. Concerns over a slowdown in China have also undercut crude oil and copper prices and dragged energy and commodity producer stocks lower as well. On the positive side for European stocks, the German Jan Markit/BME manufacturing PMI was revised higher. Asian stocks settled mixed: Japan +1.98%, Hong Kong -0.45%, China -1.78%, Taiwan +0.14%, Australia +0.76%, Singapore -1.02%, South Korea +0.68%, India -0.18%. Japan's Nikkei Stock Index climbed to a 3-week high on positive carryover from Friday's decision by the BOJ to adopt negative interest rates on some of the deposits held at the central bank. The BOJ's action also fueled buying of Japanese government bonds as the 10-year Japan bond yield fell to a record low of 0.05%.

The dollar index (DXY00 -0.23%) is down -0.21%. EUR/USD (^EURUSD) is up +0.31%. USD/JPY (^USDJPY) is up +0.20%.

Mar T-note prices (ZNH16 -0.06%) are down -2 ticks.

The German Jan Markit/BME manufacturing PMI was revised upward to 52.3 from the originally reported 52.1.

The China Jan manufacturing PMI fell -0.3 to 49.4, weaker than expectations of -0.1 to 49.6 and the steepest pace of contraction in 3-1/3 years.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Dec personal spending (expected +0.1%, Nov +0.3%) and Dec personal income (expected +0.2%, Nov +0.3%), (2) Dec PCE deflator (expected unch m/m and +0.6% y/y, Nov unch m/m and +0.4% y/y) and Dec core PCE deflator (expected +0.1% m/m and +1.4% y/y, Nov +0.1% m/m and +1.3% y/y), (3) Final-Jan Markit U.S. manufacturing PMI (expected unrevised from prelim-Jan +1.5 to 52.7), (4) Dec construction spending expected +0.6%, Nov -0.4% m/m, (5) Jan ISM manufacturing index (expected +0.5 to 48.5, Dec -0.4 to 48.0), and (6) Fed Vice Chair Stanley Fischer discusses the recent developments in the U.S. economy and monetary policy at a Council on Foreign Relations event.

There are 12 of the S&P 500 companies that report earnings today with notable reports including: Alphabet Inc (consensus $8.10), General Growth Properties (0.42), Mattel (0.61), Cardinal Health (1.26), Sysco (0.41).

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

Equity conferences this week include: Cowen and Company Aerospace/Defense Conference & Transport Forum on Wed-Thu

OVERNIGHT U.S. STOCK MOVERS

Roper Technologies (ROP +3.51%) reported Q4 EPS of $1.82, below consensus of $1.87.

Dominion Resources (D +1.73%) reported Q4 EPS of 70 cents, less than consensus of 88 cents.

Aetna ({=AET reported Q4 EPS of $1.37, better than consensus of $1.21.

Genuine Parts (GPC +3.38%) was downgraded to 'Neutral' from 'Overweight' at JPMorgan Chase.

Air Products & Chemicals (APD +6.47%) was upgraded to 'Buy' from 'Neutral' at UBS with a price target of $151.

L-3 Communications (LLL +4.34%) was upgraded to 'Buy' from 'Underperform' at Bank of America.

Northrup Grumman (NOC +2.73%) was upgraded to 'Buy' from 'Neutral' at Bank of AMerica.

Chipolte Mexican Grill (CMG -0.02%) rose over 1% in pre-market trading on reports that the U.S. Centers for DIsease COntrol and Prevention may declare an end to the E. Coli outbreak today that has plagued the restaurant chain over the past couple of months.

Resource America (REXI +1.63%) said it has hired Evercore for strategic, financial options that may include, but aren't limited to, monetizing non-core assets, expanding the stock buyback program, and a partial of full sale of the company.

Apollo Global's (APO +1.12%) co-founder Josh Harris said that Apollo's LBO financing market has "dried up" amid a financing struggle.

Care Capital Properties (CCP +1.35%) filed to offer as much as $250 million in common stock.

According to Platts reports, ArcelorMittal (MT -4.74%) is in discussions on the sale of some of its U.S. long steel mills, including the one in Steelton, PA.

MARKET COMMENTS

Mar E-mini S&Ps (ESH16 -0.62%) this morning are down -6.75 points (-0.35%). Friday's closes: S&P 500 +2.48%, Dow Jones +2.47%, Nasdaq +2.22%. The S&P 500 on Friday rallied to a 2-week high and closed sharply higher on carryover support from a +2.80 rally in the Nikkei Stock Index after the BOJ stepped up stimulus efforts and adopted a negative -0.1% interest rate on reserves held at the BOJ. Stocks were also supported by reduced concerns about a Fed rate hike U.S. Q4 GDP rose by only +0.7%, weaker than expectations of +0.8%.

Mar 10-year T-notes (ZNH16 -0.06%) this morning are down -2 ticks. Friday's closes: TYH6 +17.50, FVH6 +10.25. Mar T-notes on Friday rallied to a contract high on the weaker-than-expected U.S. Q4 GDP of +0.7%, which caused the market to further postpone expectations for the Fed's next rate hike. T-notes also received carryover support from a rally in Japanese 10-year bonds to a new all-time high after the BOJ unexpectedly adopted a negative interest rate for reserves held at the BOJ.

The dollar index (DXY00 -0.23%) this morning is down -0.205 (-0.21%). EUR/USD (^EURUSD) is up +0.0034 (+0.31%). USD/JPY (^USDJPY) is up +0.24 (+0.20%). Friday's closes: Dollar Index +1.096 (+1.11%), EUR/USD -0.0109 (-1.00%), USD/JPY +2.32 (+1.95%). The dollar index on Friday rose to a 1-3/4 month high and closed higher on the sharp rally in USD/JPY to a 1-1/2 month high after the BOJ unexpectedly adopted a negative interest rate for reserves held at the BOJ. The dollar index also saw strength on a decline in in EUR/USD after German Dec retail sales unexpectedly fell -0.2%m/m, weaker than expectations of +0.4% m/m.

Mar crude oil (CLH16 -3.27%) this morning is down -54 cents (-1.61%) and Mar gasoline (RBH16 -2.37%) is down -0.0103 (-0.91%). Friday's closes: CLH6 +0.40 (+1.20%), RBH6 +0.0320 (+2.91%). Mar crude oil and gasoline on Friday closed higher on the rally in the S&P 500 to a 2-week high and the fall in U.S. active oil rigs by 12 to 498, the fewest in 5-3/4 years. Crude oil prices were undercut by the rally in the dollar index to a 1-3/4 month high, the weaker-than-expected U.S. Q4 GDP report of +0.7%, and Russian Energy Minister Novak's comment that "no meeting has been confirmed" between Russia and OPEC, which reduced speculation of a coordinated oil production cut between Russia and OPEC.

GLOBAL EVENT CALENDAR02/01/2016

US	0830 ET	Dec personal spending expected +0.1%, Nov +0.3%. Dec personal income expected +0.2%, Nov +0.3%.
	0830 ET	Dec PCE deflator expected unch m/m and +0.6% y/y, Nov unch m/m and +0.4% y/y. Dec core PCE deflator expected +0.1% m/m and +1.4% y/y, Nov +0.1% m/m and +1.3% y/y.
	0945 ET	Final-Jan Markit U.S. manufacturing PMI expected unrevised from prelim-Jan +1.5 to 52.7.
	1000 ET	Dec construction spending expected +0.6%, Nov -0.4% m/m.
	1000 ET	Jan ISM manufacturing index expected +0.5 to 48.5, Dec -0.4 to 48.0 (revised). Jan ISM new orders, Dec -0.2 to 48.8. Jan ISM employment, Dec -2.8 to 48.0. Jan ISM prices paid expected +1.5 to 35.0, Dec -2.0 to 33.5.
	1100 ET	USDA weekly grain export inspections.
	1300 ET	Fed Vice Chair Stanley Fischer discusses the recent developments in the U.S. economy and monetary policy at a Council on Foreign Relations event.
JPN	0000 ET	Japan Jan vehicle sales, Dec +3.1% y/y.
GER	0355 ET	Revised German Jan Markit/CME manufacturing PMI.
EUR	0400 ET	Revised Eurozone Jan Markit manufacturing PMI.
	1100 ET	ECB President Mario Draghi speaks in the European Parliament debate on the ECBs annual report.
UK	0430 ET	UK Dec net consumer credit expected +1.3 billion pounds, Nov +1.5 billion pounds.
	0430 ET	UK Dec mortgage approvals expected 69,500, Nov +70,400.
	0430 ET	UK Dec M4 money supply, Dec +0.4% m/m and +0.5% y/y.
	0430 ET	UK Jan Markit manufacturing PMI expected -0.3 to 51.6, Dec 51.9.

U.S. STOCK CALENDAR02/01/2016

Company	Ticker	Time	Event Description	Period	Estimate
Sysco Corp	SYY US	Bef-mkt	Q2 2016 Earnings Release	Q2 2016	0.405
Cardinal Health Inc	CAH US	Bef-mkt	Q2 2016 Earnings Release	Q2 2016	1.257
Roper Technologies Inc	ROP US	Bef-mkt	Q4 2015 Earnings Release	Q4 2015	1.865
Aetna Inc	AET US	6:00	Q4 2015 Earnings Release	Q4 2015	1.211
Cardinal Health Inc	CAH US	8:30	Q2 2016 Earnings Call	Q2 2016
Roper Technologies Inc	ROP US	8:30	Q4 2015 Earnings Call	Q4 2015
Aetna Inc	AET US	8:30	Q4 2015 Earnings Call	Q4 2015
Sysco Corp	SYY US	10:00	Q2 2016 Earnings Call	Q2 2016
Mattel Inc	MAT US	16:05	Q4 2015 Earnings Release	Q4 2015	0.609
Principal Financial Group Inc	PFG US	16:15	Q4 2015 Earnings Release	Q4 2015	1.053
Alphabet Inc	GOOGL US	16:30	Q4 2015 Earnings Call	Q4 2015
Mattel Inc	MAT US	17:00	Q4 2015 Earnings Call	Q4 2015
Aflac Inc	AFL US	Aft-mkt	Q4 2015 Earnings Release	Q4 2015	1.478
Anadarko Petroleum Corp	APC US	Aft-mkt	Q4 2015 Earnings Release	Q4 2015	-1.096
Leggett & Platt Inc	LEG US	Aft-mkt	Q4 2015 Earnings Release	Q4 2015	0.503
Tesoro Corp	TSO US	Aft-mkt	Q4 2015 Earnings Release	Q4 2015	2.044
General Growth Properties Inc	GGP US	Aft-mkt	Q4 2015 Earnings Release	Q4 2015	0.417
Alphabet Inc	GOOGL US	Aft-mkt	Q4 2015 Earnings Release	Q4 2015	8.096

BARCHART MORNING CALL 3/11

BARCHART MORNING CALL

Wednesday, March 11th, 2015View Older Reports

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OVERNIGHT MARKETS AND NEWS

March E-mini S&Ps (ESH15 +0.37%) this morning are up +0.44% as the market recovers from yesterday's plunge and European stocks are up +1.74% after a plunge in EUR/USD to an 11-3/4 year low has fueled a rally in European exporters as the slide in EUR/USD boosts their earnings prospects. European government bond yields continue to fall as the 10-year German bund yield dropped to a record low 0.198% as the ECB buys Eurozone sovereign debt for a third day. Asian stocks closed mixed: Japan +0.31%, Hong Kong -0.75%, China +0.11%, Taiwan -0.14%, Australia -0.53%, Singapore -0.58%, South Korea +0.16%, India -0.18%. Chinese stocks rebounded from early losses and closed higher on speculation the government may boost stimulus measures to support the economy after Chinese Feb industrial production and retail sales rose less-than-expected. Japanese stocks recovered from losses and closed higher as the rally in USD/JPY Tuesday to a 7-1/2 year high improved the earnings prospects of Japanese exporters. Commodity prices are mixed. Apr crude oil (CLJ15 +0.39%) is up +0.08%. Apr gasoline (RBJ15 -0.83%) is down -0.92% at a 2-1/2 week low. Apr gold (GCJ15 -0.19%) is down -0.24%. May copper (HGK15 +0.32%) is up +0.36%. Agriculture prices are higher. The dollar index (DXY00 +0.85%) is up +0.78% at an 11-1/2 year high. EUR/USD (^EURUSD) is down -1.17% at an 11-3/4 year low. USD/JPY (^USDJPY) is up +0.35%. Jun T-note prices (ZNM15 -0.16%) are down -5 ticks.
ECB President Draghi said the aim of QE is to return inflation to the ECB's goal of 2.0% and "we can deploy and will deploy monetary policy in a way that can and will stabilize inflation in line with our objective."
China Feb retail sales rose +10.7% year-to-date, weaker than expectations of +11.6% year-to-date and the slowest pace of increase in 11 years.
China Feb industrial production rose +6.8% year-to-date, weaker than expectations of +7.7% year-to-date and the slowest pace of increase in 5-3/4 years.
UK 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 +1.3% y/y, right on expectations. UK Jan manufacturing production fell -0.5% m/m and rose +1.9% y/y, weaker than expectations of +0.2% m/m and +2.6% y/y.
Japan Feb PPI was unch m/m and rose +0.5% y/y, slightly stronger than expectations of unch m/m and +0.4% y/y.
Japan Jan machine orders fell -1.7% m/m and rose +1.9% y/y, stronger than expectations of -4.0% m/m and -1.0% y/y.

U.S. STOCK PREVIEW

The Treasury today will sell $21 billion of 10-year T-notes. There are three of the Russell 1000 companies that report earnings today: Memorial Resource Development (consensus $0.13), Axalta Coating Systems (0.23), Tahoe Resources (0.10).
Equity conferences during the remainder of this week include: Deutsche Bank Media, Internet & Telecom Conference on Mon-Wed, 11th Annual Private Banking Asia 2015 on Mon-Wed, Piper Jaffray Technology, Media and Telecommunications Conference on Tue-Wed, RBC Capital Markets Financial Institutions Conference on Tue-Wed, Credit Agricole Global High Yield Conference on Wed, Goldman Sachs TMT Leveraged Finance Conference on Wed, 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

Brown Shoe (BWS +0.25%) reported Q4 adjusted EPS of 20 cents, better than consensus of 16 cents.
Tiffany (TIF -1.15%) was upgraded to 'Overweight' from 'Neutral' at Atlantic Equities.
Citigroup kept its 'Buy' rating on Actavis (ACT -2.04%) and raised its price target on the stock to $360 from $325.
Scotts Miracle-Gro (SMG -0.50%) was upgraded to 'Buy' from 'Neutral' at SunTrust.
Credit Suisse (CS +6.67%) was upgraded to 'Overweight' from 'Underweight' at JPMorgan Chase.
Skyworks (SWKS -0.99%) will replace PetSmart (PETM -0.01%) in the S&P 500 as of today's close.
EMC (EMC -3.27%) was downgraded to 'Market Perform' from 'Outperform' at Wells Fargo.
L-3 Communications (LLL -1.91%) was initiated with a 'Buy' at Buckingham with a price target of $155.
Credit Suisse initiated Buffalo Wild Wings (BWLD -1.77%) with an 'Underperform' and a price target of $175.
Credit Suisse initiated YUM! Brands (YUM -1.96%) with an 'Underperform' and a price target of $74.
Credit Suisse initiated Dunkin' Brands (DNKN +0.21%) with an 'Outperform' and named it a Top Pick with a $56 price target.
Verifone (PAY -2.75%) reported Q1 EPS of 44 cents, better than consensus of 41 cents, but then lowered guidance on fiscal 2015 EPS view to $1.78-1.82 from $1.85-$1.90, below consensus of $1.90.

MARKET COMMENTS

Mar E-mini S&Ps (ESH15 +0.37%) this morning are up +9.00 points (+0.44%). The S&P 500 index on Tuesday sold off to a 1-month low and closed sharply lower: S&P 500 -1.70%, Dow Jones -1.85%, Nasdaq -1.90%. Bearish factors included (1) comments from Dallas Fed President Fisher who said the Fed should raise interest rates before the economy reaches full employment as policy makers are better off tightening monetary policy earlier and more gradually than later and more quickly, (2) deflation concerns in China after China Feb PPI fell -4.8% y/y, weaker than expectations of -4.3% y/y and the fastest pace of decline in 5-1/3 years, and (3) concern that the 12% rally in the dollar index over the past 3 months to an 11-1/2 year high will undercut the profitability of multi-national U.S. companies.
Jun 10-year T-notes (ZNM15 -0.16%) this morning are down -5 ticks. Jun 10-year T-note futures prices on Tuesday closed higher. Closes: TYM5 +16.00, FVM5 +7.00. Bullish factors included (1) carry-over support from a rally in German bunds to an all-time high as the ECB bought European government bonds in the second day of its QE program, (2) reduced inflation expectations after the 10-year T-note inflation breakeven rate fell to a 2-week low, and (3) increased safe-haven demand for T-notes after the S&P 500 tumbled to a 1-month low.
The dollar index (DXY00 +0.85%) this morning is up +0.767 (+0.78%) at an 11-1/2 year high. EUR/USD (^EURUSD) is down -0.0125 (-1.17%) at an 11-3.4 year low. USD/JPY (^USDJPY) is up +0.43 (+0.35%). The dollar index on Tuesday surged to an 11-1/2 year high and closed higher: Dollar index +1.030 (+1.06%), EUR/USD -0.01541 (-1.42%), USD/JPY -0.022 (-0.02%). Bullish factors included (1) hawkish comments from Dallas Fed President Fisher who said the Fed should raise interest rates before the economy reaches full employment, and (2) weakness in EUR/USD which slumped to an 11-3/4 year low as the ECB bought European government bonds on the second day of its QE program. USD/JPY fell back from a 7-1/2 year high and closed lower as the slide in stocks fueled safe-haven demand for the yen.
Apr WTI crude oil (CLJ15 +0.39%) this morning is up +4 cents (+0.08%) and Apr gasoline (RBJ15 -0.83%) is down -0.0167 (-0.92%) at a 2-1/2 week low. Apr crude oil and gasoline prices on Tuesday closed lower with Apr crude at a 1-week low and Apr gasoline at a 1-1/2 week low: CLJ5 -1.71 (-3.42%), RBJ5 -0.0602 (-3.21%). Bearish factors included (1) the rally in the dollar index to an 11-1/2 year high, (2) the slump in the S&P 500 to a 1-month low, and (3) expectations for Wednesday’s weekly EIA crude inventories to increase by +4.5 million bbl.

GLOBAL EVENT CALENDAR03/11/2015

US	0700 ET	Weekly MBA mortgage applications, previous +0.1% with purchase sub-index -0.2% and refi sub-index +0.5%.
	1030 ET	EIA Weekly Petroleum Status Report.
	1300 ET	Treasury auctions $21 billion 10-year T-notes.
	1630 ET	Fed releases bank stress test results.
GER	0300 ET	German Q4 labor costs, Q3 +0.2% q/q and +2.3% y/y.
EUR	0400 ET	ECB President Mario Draghi speaks at a conference in Frankfurt, GE.
UK	0530 ET	UK Jan industrial production expected +0.2% m/m and +1.3% y/y, Dec -0.2% m/m and +0.5% y/y.
	0530 ET	UK Jan manufacturing production expected +0.2% m/m and +2.6% y/y, Dec +0.1% m/m and +2.4% y/y.
	2001 ET	UK Feb RICS house price balance expected 6%, Jan 7%.
JPN	1950 ET	Japan Jan tertiary index expected +0.5% m/m, Dec -0.3% m/m.
	1950 ET	Japan Q1 BSI large manufacturing business conditions, Q4 8.1. Q1 BSI large all-industry business conditions expected 6.0, Q4 5.0.

U.S. STOCK CALENDAR03/11/2015

Company	Ticker	Time	Event Description	Period	Estimate
Memorial Resource Development Corp	MRD US	Bef-mkt	Q4 2014 Earnings Release	Q4 2014	0.131
Axalta Coating Systems Ltd	AXTA US	Bef-mkt	Q4 2014 Earnings Release	Q4 2014	0.225
Principal Financial Group Inc	PFG US	7:30	Investor Conference	Y 2015
Axalta Coating Systems Ltd	AXTA US	8:00	Q4 2014 Earnings Call	Q4 2014
General Electric Co	GE US	8:30	Investor Meeting - Technology	Y 2015
Analog Devices Inc	ADI US	9:00	Annual General Meeting
NextEra Energy Inc	NEE US	13:00	Investor Conference	Y 2015
MetLife Inc	MET US	14:30	Investor Meeting	Y 2015
Memorial Resource Development Corp	MRD US	15:00	Q4 2014 Earnings Call	Q4 2014
Skyworks Solutions Inc	SWKS US	Aft-mkt	Skyworks Solutions Replaces PetSmart Inc. in S&P 500
Skyworks Solutions Inc	SWKS US	Aft-mkt	Maximus Inc. Replaces Skyworks Solutions in S&P MidCap 400
PetSmart Inc	PETM US	Aft-mkt	Skyworks Solutions Replaces PetSmart Inc. in S&P 500
Tahoe Resources Inc	THO CN	Aft-mkt	Q4 2014 Earnings Release	Q4 2014	0.103
Energen Corp	EGN US		Investment Community Meeting - Day 3	Y 2015
Franklin Resources Inc	BEN US		Annual General Meeting