Morning Call 11/30

Barchart Morning Call

Barchart.com - 3 hours ago

OVERNIGHT MARKETS AND NEWS

Dec E-mini S&Ps (ESZ16 +0.26%) are up +0.22% and European stocks are up +0.32% at a 1-week high as strength in energy producing stocks leads the overall market higher. Jan WTI crude oil (CLF17 +7.96%) has surged +7.12% to a 1-week high after OPEC ministers expressed optimism about a deal to cut oil production and prop up oil prices. Iraqi Oil Minister Jabbar al-Luaibi said OPEC ministers were unanimous in favor of a cut and Iran Oil Minister Bijan Namdar Zanganeh said producers will reach agreement without his country freezing production and that Russia was ready to abandon its previous position and participate in curbing oil production. European stocks also received a boost after German Oct retail sales rose more than expected at the fastest pace in 2-3/4 years. Asian stocks settled mixed: Japan +0.01%, Hong Kong +0.23%, China -1.00%, Taiwan +0.53%, Australia -0.31%, Singapore +0.86%, South Korea +0.53%, India +0.98%. The Chinese yuan rose to a 1-1/2 week high against the dollar after people familiar with the matter said the PBOC is adding curbs to stop capital outflows and that it won't approve requests to bring the yuan overseas for the purpose of converting into foreign currencies unless applicants provide a valid business reason. The equivalent of $275 billion exited China via yuan payments this year through Oct, versus a $101.5 billion outflow in the same period of 2015.

The dollar index (DXY00 +0.28%) is up +0.12%. EUR/USD (^EURUSD) is down -0.02%. USD/JPY (^USDJPY) is up +0.76%.

Dec 10-year T-note prices (ZNZ16 -0.39%) are down -12 ticks.

German Oct retail sales rose +2.4% m/m, stronger than expectations of +1.0% m/m and the largest monthly increase in 2-3/4 years.

The Eurozone Nov CPI estimate rose +0.6% y/y, right on expectations. The Nov core CPI rose +0.8% y/y, also right on expectations.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly MBA mortgage applications (previous +5.5% with purchase sub-index +18.8% and refi sub-index -3.1%), (2) Dallas Fed President Robert Kaplan (non-voter) speaks to the Economic Club of New York, (3) Nov ADP employment change (expected +169,000, Oct +147,000), (4) Oct personal spending (expected +0.5%, Sep +0.5%) and Oct personal income (expected +0.4%, Sep +0.3%), (5) Oct PCE deflator (expected +0.3% m/m and +1.5% y/y, Sep +0.2% m/m and +1.2% y/y) and Oct core PCE (expected +0.1% m/m and +1.7% y/y, Sep +0.1% m/m and +1.7% y/y), (6) Nov Chicago PMI (expected +1.9 to 52.5, Oct -3.6 to 50.6), (7) Oct pending home sales (expected unch m/m, Sep +1.5% m/m and +2.0% y/y), (8) Fed Governor Jerome Powell speaks at the Brookings Institute in Washington, D.C., (9) Fed Beige Book, (10) OPEC meeting in Vienna, (11) EIA Weekly Petroleum Status Report.

Russell 1000 earnings reports today include: PVH Corp (consensus $2.40), Synopsys (0.77).

U.S. IPO's scheduled to price today: Supportingsmallbusiness Inc, Innovative Industrial Properties (IIPR).

Equity conferences during the remainder of this week include: Credit Suisse Technology, Media, and Telecom Conference on Mon-Wed, Citi Basic Materials Conference on Tue-Wed, Jefferies Energy Conference on Tue-Wed, Piper Jaffray Health Care Conference on Tue-Wed, Bank of America Merrill Lynch Leveraged Finance Conference on Tue-Wed, NASDAQ Investor Conference on Tue-Wed, J.P. Morgan FinTech & Specialty Finance Forum on Wed, Credit Suisse Industrials Conference on Tue-Thu.

OVERNIGHT U.S. STOCK MOVERS

Celanese (CE +0.73%) was upgraded to 'Buy' from 'Neutral' at Goldman Sachs with a price target of $92.

AmSurg (AMSG +3.85%) will replace Legg Mason in the S&P 500 effective after the close of trading on Thursday, Dec 1.

Mid-America Apartment Communities (MAA +1.68%) will replace Owens-Illinois in the S&P 500 as of the close of trading Thursday, Dec 1.

Shutterfly (SFLY +0.22%) was rated a new 'Buy' at Alegis Capital with an 18-month target price of $62.

Advaxis (ADXS -3.82%) was rated a new 'Buy' at Cantor Fitzgerald with a 12-month target price of $19.

Splunk (SPLK -0.07%) rallied over 4% in after-hours trading after it reported Q3 adjusted EPS of 12 cents, above consensus of 8 cents, and then raised guidance on fiscal 2017 revenue view to $930 million-$932 million from a prior view of $910 million-$914 million.

Autodesk (ADSK +0.11%) dropped 3% in after-hours trading after it forecast a Q4 adjusted share loss of -32 cents to -39cents, a larger loss than consensus of -31 cents.

Hyatt Hotels (H -0.08%) slid over 1% in after-hours trading after a 6-million share block of shares was offered.

Guidewire Software (GWRE -1.40%) rose over 2% in after-hours trading after it reported an unexpected Q1 adjusted EPS profit of 2 cents, better than consensus of a -5 cent loss, and then raised guidance on fiscal 2017 revenue to $473 million-$483 million from a September 7 view of $471.5 million-$483.5 million.

Ooma (OOMA +4.40%) climbed over 4% in after-hours trading after it reported a Q3 adjusted loss of -2 cents a share, a smaller loss than consensus of -5 cents, and then raised guidance on 2017 adjusted EP loss to -16 cents to -19 cents from an August 30 view of -20 cents to -25 cents.

Evolent Health (EVH -7.14%) fell 7% in after-hours trading after it said it will offer $110 million in convertible senior notes due on 2021, convertible into Class A shares.

Costamare (CMRE -6.60%) sank 9% in after-hours trading after it announced a public offering of 11 million shares of common stock.

Arrowhead Pharmaceuticals (ARWR -1.57%) plunged 60% in after-hours trading after it said it will discontinue development of clinical stage drug candidates ARC-520, ARC-521 and ARC-AAT and will reduce its workforce by 30%.

MARKET COMMENTS

Dec E-mini S&Ps (ESZ16 +0.26%) this morning are up +4.75 points (+0.22%). Tuesday's closes: S&P 500 +0.13%, Dow Jones 0.12%, Nasdaq +0.33%. The S&P 500 on Tuesday closed higher on the upward revision to U.S Q3 GDP to 3.2% from +2.9%, stronger than expectations of +3.0% and the fastest pace of expansion in 2 years. Stocks were also boosted by the +6.3 point increase in U.S. Nov consumer confidence (Conference Board) to a 9-1/3 year high of 107.1, stronger than expectations of +2.9 to 101.5. Energy producer stocks were undercut by the -3.93% slide in crude oil prices to a 2-week low.

Dec 10-year T-notes (ZNZ16 -0.39%) this morning are down -12 ticks. Tuesday's closes: TYZ6 +4.00, FVZ6 +3.00. Dec 10-year T-note futures on Tuesday rebounded from early losses and closed higher on short-covering after the recent plunge and the sharp sell-off in crude oil to a 2-week low, which undercut inflation expectations as the 10-year T-note breakeven inflation rate fell to a 1-1/2 week low.

The dollar index (DXY00 +0.28%) this morning is up +0.120 (+0.12%). EUR/USD (^EURUSD) is down -0.0002 (-0.02%). USD/JPY (^USDJPY) is up +0.85 (+0.76%). Tuesday's closes: Dollar index -0.400 (-0.39%), EUR/USD +0.0036 (+0.34%), USD/JPY +0.44 (+0.39%). The dollar index on Tuesday closed lower on strength in EUR/USD after Eurozone Nov economic confidence rose +0.1 to an 11-month high of 106.5. The dollar was also undercut by the decline in 10-year T-note yields, which reduced the dollar's interest rate differentials and spurred liquidation of long dollar positions.

Jan crude oil prices (CLF17 +7.96%) this morning are up sharply by +$3.22 a barrel (+7.12%) and Jan gasoline (RBF17+5.98%) is +0.0744 (+5.40%), both at 1-week highs. Tuesday's closes: Jan crude -1.85 (-3.93%), Jan gasoline -0.0381(-2.69%). Jan crude oil and gasoline in Tuesday sold off sharply with Jan crude at a 2-week low. Crude oil prices fell on doubts that OPEC will be able to agree on any production cuts when it meets Wednesday in Vienna as Iran and Iraq continue to resist calls to cut output and Saudi Arabia says it is ready to reject a deal unless Iran and Iraq compromise.

GLOBAL EVENT CALENDAR11/30/2016

		Wednesday, Nov 30
US	0700 ET	Weekly MBA mortgage applications, previous +5.5% with purchase sub-index +18.8% and refi sub-index -3.1%.
	0800 ET	Dallas Fed President Robert Kaplan (non-voter) speaks to the Economic Club of New York.
	0815 ET	Nov ADP employment change expected +169,000, Oct +147,000.
	0830 ET	Oct personal spending expected +0.5%, Sep +0.5%. Oct personal income expected +0.4%, Sep +0.3%.
	0830 ET	Oct PCE deflator expected +0.3% m/m and +1.5% y/y, Sep +0.2% m/m and +1.2% y/y. Oct core PCE expected +0.1% m/m and +1.7% y/y, Sep +0.1% m/m and +1.7% y/y.
	0945 ET	Nov Chicago PMI expected +1.9 to 52.5, Oct -3.6 to 50.6.
	1000 ET	Oct pending home sales expected unch m/m, Sep +1.5% m/m and +2.0% y/y.
	1030 ET	EIA Weekly Petroleum Status Report.
	1145 ET	Fed Governor Jerome Powell speaks at the Brookings Institute in Washington, D.C.
	1400 ET	Fed Beige Book.
	n/a	OPEC meeting in Vienna.
		Thursday, Dec 1
US	0730 ET	Nov Challenger job cuts, Oct -39.1% y/y.
	0830 ET	Weekly initial unemployment claims expected +2,000 to 253,000, previous +18,000 to 251,000. Weekly continuing claims expected -10,000 to 2.033 million, previous +60,000 to 2.043 million.
	0830 ET	USDA weekly Export Sales.
	0900 ET	Dallas Fed President Robert Kaplan (non-voter) speaks in a moderated Q&A at St. Marys University Forum on Entrepreneurship.
	0945 ET	Final-Nov Markit manufacturing PMI expected unch at 53.9, prelim-Nov +0.5 to 53.9.
	1000 ET	Oct construction spending expected +0.6%, Sep -0.4%.
	1000 ET	Nov ISM manufacturing index expected +0.4 to 52.3, Oct +0.4 to 51.9. Nov ISM new orders, Oct -3.0 to 52.1. Nov ISM employment, Oct +3.2 to 52.9. Nov ISM prices paid expected -0.5 to 54.0, Oct +1.5 to 54.5.
	n/a	Nov total vehicle sales expected 17.70 million, Oct 17.91 million. Nov domestic vehicle sales expected 14.00 million, Oct 14.05 million.

U.S. STOCK CALENDAR11/30/2016

Company	Ticker	Time	Event Description	Period	Estimate
Pilgrim's Pride Corp	PPC US	9:00	Acquisition of GNP Company by Pilgrim's Pride Corp Call
Equifax Inc	EFX US	10:00	Business Update Call
Microsoft Corp	MSFT US	11:00	Annual General Meeting	Y 2016
Synopsys Inc	SNPS US	17:00	Q4 2016 Earnings Call	Q4 2016
PVH Corp	PVH US	Aft-mkt	Q3 2017 Earnings Release	Q3 2017	2.401
Synopsys Inc	SNPS US	Aft-mkt	Q4 2016 Earnings Release	Q4 2016	0.768
Costco Wholesale Corp	COST US	21:00	November 2016 Sales and Revenue Release	2016

5 Mid Caps for Momentum Investors

Today is wanted to find 5 great mid cap momentum stocks so I used Barchart to sort the   S&P 400 Mid Cap Index stocks for the highest technical buy signals then used the Flipchart feature to review the charts.

The stock making the cut were Sovran Self Storage (SSS), Mid-America Apartment Communities (MAA), Granite Construction (GVA), Extra Space Storage (EXR) and Charles River Laboratories (CRL).

Sovran Self Storage (SSS)

Barchart technical indicators:

• 100% Barchart technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 7 new highs and up 6.35% in the last month
• Relative Strength Index 61.01%
• Barchart computes a technical support level at 98.94
• Recently traded at 102.04 with a 50 day moving average of 99.01

Mid-America Apartment Communities (GVA)

Barchart technical indicators:

• 100% Barchart technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 11 new highs and up 7.01% in the last month
• Relative Strength Index 61.46%
• Barchart computes a technical support level at 87.00
• Recently traded at 89.72 with a 50 day moving average if 86.20

Granite Construction (GVA)

Barchart technical indicators:

• 96% Barchart technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 12 new highs and up 11.25% in the last month
• Relative Strength Index 69.11%
• Barchart computes a technical support level at 39.79
• Recently traded at 42.01 with a 50 day moving average of 36.78

Extra Space Storage (EXR)

Barchart technical indicators:

• 96% Barchart technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages'
• 11 new highs and up 10.55% in the last month
• Relative Strength Index 68.25%
• Barchart computes a technical support level at 83.87
• Recently traded at 87.12 with a 50 day moving average of 80.98

Charles River Laboratories (CRL)

Barchart technical indicators:

• 96% Barchart technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 12 new highs and up 10.67% in the last month'
• Relative Strength Index 63.35%
• Barchart computes a technical support level at 73.46%
• Recently traded at 78.64 with a 50 day moving average of 70.98

5 Great Mid Caps

Today I sorted the S&P 400 Mid Cap Index to find the stocks with the best technical indicators and charts.  First, I sorted for new highs frequency in the last month, then I used the Flipchart feature to review the charts.  I skipped over a lot of charts till I found the consistency I liked.

Today list includes Essex Property Trust (ESS), Mid-America Apartment Communities (MAA), Old Dominion Freight Lines (ODFL), Equinix (EQIX), and Omega Healthcare Investors (OHI):

Essex Property Trust (ESS)

Barchart technical indicators:

• 88% Barchart technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 14 new highs and up 6.78% in the last month
• Relative Strength Index 62.79%
• Barchart computes a technical support level at 178.04
• Recently traded at 179.28 with a 50 day moving average of 170.87

Mid-America Apartment Communities (MAA)

Barchart technical indicators:

• 80% Barchart technical buy signals
• Trend Spotter buy signals
• Above its 20, 50 and 100 day moving averages
• 12 new highs and up 6.13% in the last month
• Relative Strength Index 68.80%
• Barchart computes a technical support level at 71.50
• Recently traded at 72.33 with a 50 day moving average of 68.92

Old Dominion Freight Lines (ODFL)

Barchart technical indicators:

• 96% Barchart technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 12 new highs and up 12.84% in the last month
• Relative Strength Index 71.45%
• Barchart computes a technical support level at 60.72
• Recently traded at 62.40 with a 50 day moving average of 57.51

Equinix (EQIX)

Barchart technical indicators:

• 96% Barchart technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 12 new highs and up 9.82% in the last month
• Relative Strength Index 70.14%
• Barchart computes a technical support level at 192.30
• Recently traded at 196.55 with a 50 day moving average of 183.96

Omega Healthcare Investors (OHI)

Barchart technical indicators:

• 96% Barchart technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 12 new highs and up 6.17% in the last month
• Relative Strength Index 68.42%
• Barchart computes a technical support level at 36.05%
• Recently traded at 36.50 with a 50 day moving average of 34.33

REIT's rule the Mid-Caps Today

Realty and Income stocks rule the Mid-Caps today.  Today's list come from using Barchart to sort the S&P 400 Mid Cap Index for frequency of new highs in the last month.  I skipped the stocks that didn't have positive gains in the last week and month and used the Flipchart feature to find the charts I liked.

Today's list includes Alexandria Real Estate Equities (ARE), MDU Resources Group (MDU), Mid-America Apartment Communities (MAA), Realty Income Corp (O), and Jones Land LaSalle (JLL):

Alexandria Real Estate Equities (ARE)

Barchart technical indicators:

• 96% Barchart technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 14 new highs and up 9.15% in the last month
• Relative Strength Index 75.24%
• Barchart computes a technical support level at 71.14
• Recently traded at 72.30 with a 50 day moving average of 66.25

MDU Resources Group (MDU)

Barchart technical indicators:

• 100% Barchart technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 14 new highs and up 12.35% in the last month
• Relative strength Index 77.09%
• Barchart computes a technical support level at 33.53
• Recently traded at 34.38 with a 50 day moving average of 30.89

Mid-America Apartment Communities (MAA)

Barchart technical indicators:

• 80% Barchart technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 13 new highs and up 8.57% in the last month
• Relative Strength Index 75.85%
• Barchart computes a technical support level at 67.13
• Recently traded at 67.82 with a 50 day moving average of 62.68

Realty Income Corp (O)

Barchart technical indicators:

• 88% Barchart technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 13 new highs and up 9.32% in the last month
• Relative Strength Index 74.59%
• Barchart computes a technical support level at 41.19
• Recently traded at 42.00 with a 50 day moving average of 38.95

Jones Lang LaSalle (JLL)

Barchart technical indicators:

• 96% Barchart technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 13 new highs and up 16.79% in the last month
• Relative Strength Index 80.83%
• Barchart computes a technical support level at 119.22
• Recently traded at 121.31 with a 50 day moving average of 106.39

Disclosure:  I own shares in Jones Lang LaSalle (JLL)

Barchart Morning Call 10/1

BARCHART MORNING CALL

Tuesday, October 1st, 2013View Older Reports

Everything you need to know about the markets in one free daily newsletter.

E-mail:

You will also receive a free subscription to the Barchart family of newsletters.

OVERNIGHT MARKETS AND NEWS

December E-mini S&Ps (ESZ13 +0.28%) this morning are up +0.45% and European stocks are up +0.59% on speculation that any economic effect from a temporary shutdown of the U.S. government will be limited. The next major hurdle for U.S. lawmakers is to raise the $16.7 trillion debt ceiling by Oct 17, the day the Treasury said that measures to avoid exceeding the limit will be exhausted. The Congressional Budget Office (CBO) estimates the U.S. will run out of money to pay all of its obligations at some point between Oct 22 and Oct 31 without action by Congress. Asian stocks closed mostly higher: Japan up +0.20%, Hong Kong and China closed for holidays, Taiwan +0.16%, Australia -0.23%, Singapore +0.43%, South Korea +0.22%, India +0.71%. Japanese stocks closed higher and received a boost from an increase in business confidence after the Japan Q3 Tankan climbed to a nearly 6-year high. Commodity prices are mixed. Nov crude oil (CLX13 +0.11%) is up +0.10% and Nov gasoline (RBX13 -0.58%) is down -0.37%. Dec gold (GCZ13 -0.05%) is up +0.32% and Dec copper (HGZ13 -0.78%) is down -0.51%. Agricultural and livestock prices are weaker. The dollar index (DXY00 -0.21%) is down _0.22% at a 7-1/2 month low as the partial shutdown of the U.S. government boosted speculation the Fed may maintain QE3. EUR/USD (^EURUSD) is up +0.13% at a 7-3/4 month high and USD/JPY (^USDJPY) is down -0.51%. December T-note prices (ZNZ13 -0.20%) are down -8 ticks.
The Japan Q3 Tankan large manufacturing business conditions rose to 12 from 4 in Q2, stronger than expectations of an increase to 7 and its best level since Q4 of 2007. The Q3 Tankan large manufacturing outlook rose to 11 from 10 in Q2, better than expectations of no change at 10.
The Japan Aug jobless rate unexpectedly rose +0.3 to 4.1%, when expectations were for no change at 3.8%. The Aug job-to-applicant ratio rose +0.01 to 0.95, right on expectations and the highest in 5-1/3 years.
Japan Aug overall household spending unexpectedly fell -1.6% y/y, weaker than expectations of a +0.2% y/y increase, and Aug labor cash earnings fell -0.6% y/y, weaker than expectations of -0.3% y/y.
Japan Sep vehicle sales climbed +12.4% y/y, the most in 14 months.
The China Sep manufacturing PMI rose +0.1 to 51.1, weaker than expectations of +0.6 to 51.6, but still the fastest pace of expansion in 17 months.
German Sep unemployment unexpectedly rose +25,000 when expectations were for a decline of -5,000. The Sep unemployment rate unexpectedly rose +0.1 to 6.9%, when expectations were for no change at 6.8%.
The German Sep PMI manufacturing was unexpectedly revised lower to 51.1 from the originally reported 51.3.
The Eurozone Aug unemployment rate remained unchanged at 12.0% from July which was revised down to 12.0% from the originally reported 12.1%.
UK Sep PMI manufacturing unexpectedly fell -0.4 to 56.7, weaker than expectations of +0.3 to 57.5.

U.S. STOCK PREVIEW

A shut-down of nonessential government services today appeared imminent as of early Monday evening as House Republicans were insisting on a continuing resolution (CR) with a 1-year Obamacare delay and other add-ons, while the Senate was insisting on a clean CR with no Obamacare restrictions or other add-ons. Today’s Sep ISM manufacturing index is expected to show a -0.6 point decline to 55.1, more than giving back the +0.3 point increase to 55.7 seen in August. Today’s Sep total vehicle sales is expected to fall to 15.65 million units from 16.02 million in August. There are two of the Russell 1000 companies that report earnings today: Walgreen (consensus $0.73), Global Payments (0.95).
Equity conferences this week include: ECCO-ESMO-ESTRO European Cancer Congress Meeting on Mon-Tue, World Business Forum New York 2013 on Tue, IPAA Oil & Gas Investment Symposium on Tue, Milken Institute Summit-London on Tue, JMP Securities Financial Services and Real Estate Conference on Tue, Johnson Rice & Company Energy Conference on Tue-Wed, Deutsche Bank Leveraged Finance Conference on Tue-Wed, and Wells Fargo Securities Retail & Restaurant Summit on Tue-Wed.

OVERNIGHT U.S. STOCK MOVERS

Nike (NKE -1.36%) was upgraded to "Buy" from "Hold" at Argus.
Agilent (A -0.74%) was downgraded to "Hold" from "Buy" at Stifel.
T-Mobile (TMUS -0.38%) was upgraded to "Outperform" from "Perform" at Oppenheimer.
Walgreen (WAG -1.30%) reported Q4 EPS of 73 cents, right on expectations.
Wells Fargo (WFC -0.65%) announced that it will pay Freddie Mac (FMCC +0.80%) $780 million in a loan settlement that resolves all repurchase liabilities related to loans sold to Freddie Mac prior to Jan. 1, 2009.
The FDA approved the drug Brintellix, co-marketed by Takeda Pharmaceuticals (TKPYY +0.59%) and Lundbeck, to treat adults with major depressive disorder.
Pratt & Whitney (UTX -1.41%) was awarded a $2.5 billion government contract for various weapons systems spare parts.
Raytheon (RTN -2.12%) was awarded a $230 million government contract modification for operation and sustainment efforts of the X-Band radar in support of the Missile Defense Agency’s Sensors Program.
Clarcor (CLC +0.87%) boosted its quarterly dividend to 17 cents from 13.5 cents per share.
Mercury Systems (MRCY +1.94%) was awarded a $3.9 million contract from the U.S. Navy for advanced Digital RF Memory jammers.
Diamond Foods (DMND -2.57%) reported Q4 adjusted EPS of 9 cents, better than consensus for a -3 cent loss.
Paychex (PAYX +0.72%) reported Q1 EPS of 44 cents, better than consensus of 43 cents.

MARKET COMMENTS

Dec E-mini S&Ps (ESZ13 +0.28%) this morning are up +7.50 points (+0.45%). The S&P 500 index on Monday dropped to a 3-week low and closed lower on concern the U.S. budget impasse in Washington will lead to a government shutdown that derails economic growth. Another negative for stocks was concern over global economic growth after the China Sep HSBC/Markit manufacturing PMI was unexpectedly revised downward to 50.2 from 51.2. The S&P 500 recovered from its worst levels after the Sep Chicago PMI rose +2.7 to 55.7, stronger than expectations of +1.3 to 54.3 and the fastest pace of expansion in 4 months. Closes: S&P 500 -0.60%, Dow Jones -0.84%, Nasdaq 100 -0.37%.
Dec 10-year T-notes (ZNZ13 -0.20%) this morning are down -8 ticks. Dec 10-year T-note prices on Monday closed higher and the 10-year T-note yield fell to a 1-1/2 month low. Increased safe-haven demand boosted T-note prices when stocks retreated on speculation that the ongoing political wrangling in Washington over a continuing resolution and a hike in the debt ceiling will lead to a government shutdown Tuesday. T-note prices fell back from their best levels after the stronger-than-expected Chicago Sep PMI bolstered expectations for the Fed to taper QE3. Closes: TYZ3 +1.50, FVZ3 +2.25.
The dollar index (DXY00 -0.21%) this morning is down -0.180 (-0.22%) at a fresh 7-1/2 month low. EUR/USD (^EURUSD) is up +0.0018 (+0.13%) at a 7-3/4 month high and USD/JPY (^USDJPY) is down -0.50 (-0.51%). The dollar index on Monday tumbled to a 7-1/2 month low. Bearish factors included (1) a lack of confidence in the dollar as political wrangling in Washington threatens a partial government shutdown Tuesday and as a decision on raising the U.S. debt ceiling is needed within the next 3 weeks, and (2) strength in the yen on increased safe-haven demand as global stocks fell on the U.S. budget impasse as USD/JPY slipped to a 4-week low. Closes: Dollar index -0.3-2 (-0.38%), EUR/USD +0.0001 (+0.01%), USD/JPY -0.023 (-0.02%).
Nov WTI crude oil (CLX13 +0.11%) this morning is up +10 cents (+0.10%) and Nov gasoline (RBX13 -0.58%) is down -0.0097 (-0.37%). Nov crude oil and gasoline prices on Monday closed lower on concern U.S. economic growth and energy demand will suffer if the government shuts down because of the political turmoil in Washington. Nov crude oil prices fell to a 2-3/4 month low also due to reduced Middle East tensions after the U.S. opened direct nuclear negotiations with Iran. Closes: CLX3 -0.54 (-0.52%), RBX3 -0.0320 (-1.20%).

GLOBAL EVENT CALENDAR10/01/2013

US	1000 ET	Aug construction spending expected +0.4%, July +0.6%.
	1000 ET	Sep ISM manufacturing index expected -0.6 to 55.1, Aug +0.3 to 55.7. Sep ISM prices paid expected +1.0 to 55.0, Aug +5.0 to 54.0.
	1630 ET	API weekly U.S. oil statistics.
	1700 ET	Sep total vehicle sales expected 15.65 million, Aug 16.02 million. Sep domestic vehicle sales expected 12.20 million, Aug 12.44 million.
	1800 ET	Fed Vice Chairman Janet Yellen speaks at the Economic Club of New York.
JPN	0100 ET	Japan Sep vehicle sales, Aug -6.4% y/y.
GER	0355 ET	German Sep unemployment change expected -5,000, Aug +7,000. Sep unemployment rate expected unch at 6.8%, Aug 6.8%.
	0355 ET	Revised German Sep PMI manufacturing expected no change at 51.3.
UK	0430 ET	UK Sep PMI manufacturing expected +0.3 to 57.5, Aug 57.2.
EUR	0500 ET	Eurozone Aug unemployment rate expected unch at 12.1%, July 12.1%.

U.S. STOCK CALENDAR10/01/2013

Company Name	Ticker	Time	Event Description	Period	Estimate
Walgreen Co	WAG US	7:30	Q4 2013 Earnings Release	Q4 2013	0.727
Plum Creek Timber Co Inc	PCL US	8:00	Investor and Analyst Meeting	Y 2013
Walgreen Co	WAG US	8:30	Q4 2013 Earnings Call	Q4 2013
Ford Motor Co	F US	9:30	September 2013 Sales and Revenue Release	2013
Federal Realty Investment Trust	FRT US	10:00	Analyst Day	Y 2013
Ford Motor Co	F US	10:00	September 2013 Sales and Revenue Call	2013
Paychex Inc	PAYX US	10:30	Q1 2014 Earnings Call	Q1 2014
United Technologies Corp	UTX US	11:00	Analyst Meeting	Y 2013
General Motors Co	GM US	11:00	September 2013 Sales and Revenue Call	2013
Splunk Inc	SPLK US	14:30	Investor and Analyst Meeting	Y 2013
Global Payments Inc	GPN US	17:00	Q1 2014 Earnings Call	Q1 2014
Mid-America Apartment Communities Inc	MAA US	Aft-mkt	Mid-America Communities Replaces Monster Worldwide in S&P MidCap 400
Mid-America Apartment Communities Inc	MAA US	Aft-mkt	Monster Worldwide Replaces Mid-America Communities in S&P SmallCap 600
Global Payments Inc	GPN US	Aft-mkt	Q1 2014 Earnings Release	Q1 2014	0.947
Pinnacle West Capital Corp	PNW US		Investor Meeting -Day2	Y 2013
TECO Energy Inc	TE US		Roadshow - Day 2	Y 2013
General Motors Co	GM US		September 2013 Sales and Revenue Release	2013

BARCHART MORNING CALL 9/27

BARCHART MORNING CALL

Friday, September 27th, 2013View Older Reports

Everything you need to know about the markets in one free daily newsletter.

E-mail:

You will also receive a free subscription to the Barchart family of newsletters.

OVERNIGHT MARKETS AND NEWS

December E-mini S&Ps (ESZ13 -0.40%) this morning are down -0.40% and European stocks are also down -0.40% over concern a shutdown of the federal government due to the U.S. budget impasse will hurt economic growth. Asian stocks closed mixed: Japan -0.26%, Hong Kong +0.35%, China +0.44%, Taiwan +0.56%, Australia +0.24%, Singapore +0.50%, South Korea +0.10%, India -0.84%. The U.S. Senate will vote today on an emergency budget to prevent a shutdown of the federal government when the new fiscal year begins on Tuesday. Commodity prices are mostly lower. Nov crude oil (CLX13 -0.45%) is down -0.60% and Nov gasoline (RBX13 -0.33%) is down -0.38% as the five permanent members of the UN Security Council prepare to vote later today on a resolution to eliminate Syria's chemical weapons. Dec gold (GCZ13 +0.87%) is up +0.07% and Dec copper (HGZ13 +0.29%) is up +0.12%. Agricultural and livestock prices are mixed. The dollar index (DXY00 -0.22%) is down -0.14%. EUR/USD (^EURUSD) is up +0.12% after Eurozone Sep economic confidence rose to a 2-year high. USD/JPY (^USDJPY) is down -0.46%. December T-note prices (ZNZ13 +0.14%) are up +3.5 ticks.
The Eurozone Sep business climate indicator rose +0.02 from Aug to -0.20, less than expectations of +0.11 to -0.10, but still the highest in 1-1/2 years. Sep economic confidence rose +1.6 to 96.9, better than expectations of +0.8 to 96.0 and the highest in 2 years.
UK Sep Lloyds business barometer of economic optimism rose +3 to 57, the highest since the data series began in 2002.
UK Sep GfK consumer confidence climbed +3 to -10, better than expectations of +2 to -11 and the highest in nearly 6 years.
UK Sep nationwide house prices increased +0.9% m/m and +5.0% y/y, higher than expectations of +0.5% m/m and +4.4% y/y with the +5.0% y/y increase the biggest annual gain in 3 years.
Japan Aug national CPI rose +0.9% y/y, higher than expectations of +0.8% y/y. Aug national CPI ex-fresh food rose +0.8% y/y, higher than expectations of +0.7% y/y, and Aug national CPI ex food & energy fell -0.1% y/y, right on expectations.
China Aug industrial profits year-to-date rose +12.8% y/y from +11.1% y/y in July, the most in 6 months.

U.S. STOCK PREVIEW

Today’s final-Sep U.S. consumer confidence index from the University of Michigan is expected to show a +1.2 point increase to 78.0 from 76.8 in early-Sep.  Today’s Aug personal income and spending reports are expected to remain lackluster, suggesting that consumers will not be providing any significant near-term boost to the U.S. economy.  Aug personal income is expected to improve to +0.4% from +0.1% in July and Aug personal spending is expected to improve to +0.3% from +0.1% in July.  Today’s Aug PCE deflator is expected to ease to +1.2% y/y from +1.4% in July.  Meanwhile, the Aug core PCE deflator, which is the Fed’s preferred inflation measure, is expected to edge higher to +1.3% /y from +1.2% y/y in July.  There is one of the Russell 1000 companies that report earnings today:  Chimera Investment Corp (consensus $0.11).

OVERNIGHT U.S. STOCK MOVERS

Bank of America (BAC -0.42%) and Goldman Sachs (GS -0.01%) wwere both downgraded to "Neutral" from "Buy" at Guggenheim.
BlackBerry (BBRY -0.75%) reported a Q2 adjusted EPS loss of -47 cents, a smaller loss than consensus of -49 cents.
Occidental Petroleum (OXY +0.72%) was upgraded to "Positive" from "Neutral" at Susquehanna.
Finish Line (FINL +0.45%) reported Q2 EPS of 54 cents, better than consensus of 45 cents.
The NY Times reports that the Justice Department has asked JPMorgan Chase (JPM +0.37%) to pay a higher fine for questionable mortgage practices than the roughly $7 billion that it has offered to pay.
Akamai (AKAM +1.32%) was downgraded to "Neutral" from "Buy" at B. Riley.
Arch Coal (ACI -1.52%) was downgraded to "Sell" from "Neutral" at Goldman.
KKR Fund reported a 28.4% stake in RigNet (RNET +3.43%) .
Thor Industries (THO -0.53%) reported Q4 EPS of $1.04, well ahead of consensus of 95 cents.
Nike (NKE +2.06%) rose over 6% in after-hours trading after it reported Q1 EPS of 86 cents, stronger than consensus of 78 cents.
PetSmart (PETM +0.76%) announced that it will increase its quarterly dividend from 16.5 cents to 19.5 cents per share beginning in the third quarter of fiscal 2013.
Accenture (ACN -0.33%) reported Q4 EPS of $1.01, right on consensus, although Q4 revenue of $7.1 billion was higher than consensus of $6.9 billion.

MARKET COMMENTS

Dec E-mini S&Ps (ESZ13 -0.40%) this morning are down -6.75 points (-0.40%). The S&P 500 index on Thursday closed higher after weekly initial unemployment claims unexpectedly fell -5,000 to 305,000, better than expectations for a +16,000 increase to 325,000. Gains in stocks were limited by (1) the -1.6% decline in Aug pending home sales (weaker than expectations of -1.0% m/m), and (2) concern that the budget impasse in Washington could prompt a shutdown of the federal government and weaken the economic recovery. Closes: S&P 500 +0.35%, Dow Jones +0.36%, Nasdaq 100 +0.79%.
Dec 10-year T-notes (ZNZ13 +0.14%) this morning are up +3.5 ticks. Dec 10-year T-note prices on Thursday closed lower after weekly jobless claims unexpectedly fell. However, supportive factors included (1) the weaker-than-expected Aug pending home sales report of -1.6%, and (2) safe-haven demand over the battle in Washington over the continuing resolution and the debt ceiling. Closes: TYZ3 -6.00, FVZ3 -2.25.
The dollar index (DXY00 -0.22%) this morning is down -0.110 (-0.14%). EUR/USD (^EURUSD) is up +0.0016 (+0.12%) and USD/JPY (^USDJPY) is down -0.46 (-0.46%). The dollar index on Thursday closed higher as an unexpected decline in U.S. weekly initial unemployment claims bolstered speculation the Fed may taper QE3 as soon as next month. USD/JPY rose as the yen weakened on the Kyodo News report that Prime Minister Abe’s administration pledged to “promptly” begin a study on reducing Japan’s corporate tax rate. Closes: Dollar index +0.189 (+0.24%), EUR/USD -0.00371 (-0.27%), USD/JPY +0.546 (+0.55%).
Nov WTI crude oil (CLX13 -0.45%) this morning is down -62 cents (-0.60%) and Nov gasoline (RBX13 -0.33%) is down -0.0102 (-0.38%). Nov crude oil and gasoline prices on Thursday closed higher. Bullish factors included (1) signs of economic strength after U.S. weekly jobless claims unexpectedly fell -5,000, versus expectations of a +16,000 increase, and (2) strength in gasoline on speculation that supplies will be limited on reduced output due to seasonal refinery maintenance and turnarounds to winter-blends. Closes: CLX3 +0.37 (+0.36%), RBX3 +0.0303 (+1.14%).

GLOBAL EVENT CALENDAR09/27/2013

US	0545 ET	Chicago Fed President Charles Evans speaks on current economic conditions and monetary policy at the Norges Bank Conference in Oslo, Norway.
	0830 ET	Aug personal spending expected +0.3%, July +0.1%. Aug personal income expected +0.4%, July +0.1%. Aug PCE deflator expected +0.1% m/m and +1.2% y/y, July +0.1% m/m and +1.4% y/y. Aug PCE core deflator expected +0.1% m/m and +1.3% y/y, July +0.1% m/m and +1.2% y/y.
	0830 ET	Boston Fed President Eric Rosengren delivers opening remarks at a conference on stable funding at the New York Fed.
	0955 ET	Final U.S. Sep University of Michigan consumer confidence expected +1.2 to 78.0, previous -5.3 to 76.8.
	1015 ET	Chicago Fed President Charles Evans speaks as part of a panel discussion titled Monetary and Macroprudential Policies Going Forward at the Norges Bank Conference in Oslo, Norway.
	1400 ET	New York Fed President William Dudley speaks at an event in New York on national and regional economic conditions.
	1500 ET	Q3 Quarterly Hogs & Pigs.
UK	0200 ET	UK Sep nationwide house prices expected +0.5% m/m and +4.4% y/y, Aug +0.6% m/m and +3.5% y/y.
	0430 ET	UK Sep Lloyds business barometer, Aug 54.
	0430 ET	UK July index of services expected +0.5% m/m and +0.6% 3-mo/3-mo, June unch m/m and +0.6% 3-mo/3-mo.
EUR	0500 ET	Eurozone Sep business climate indicator expected +0.11 to -0.10, Aug -0.21. Sep economic confidence expected +0.8 to 96.0, Aug 95.2.
	0500 ET	Revised Eurozone Sep consumer confidence.
GER	0800 ET	German Sep CPI (EU harmonized) expected unch m/m and +1.6% y/y, Aug unch m/m and +1.6% y/y.

U.S. STOCK CALENDAR09/27/2013

Company Name	Ticker	Time	Event Description	Period	Estimate
General Electric Co	GE US	7:15	Ottawa Chamber of Commerce Presents CEO, Elyse Allan
ConAgra Foods Inc	CAG US	9:30	Annual General Meeting	Y 2013
John Wiley & Sons Inc	JW/A US	10:00	Investor and Analyst Day	Y 2013
Mid-America Apartment Communities Inc	MAA US		Extraordinary Shareholders Meeting
Mid-America Apartment Communities Inc	MAA US		Special Meeting - M&A Vote
Chimera Investment Corp	CIM US		Q2 2012 Earnings Release	Q2 2012	0.108