BARCHART MORNING CALL 8/26

BARCHART MORNING CALL

Tuesday, August 26th, 2014View Older Reports

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OVERNIGHT MARKETS AND NEWS

September E-mini S&Ps (ESU14 +0.15%) this morning are up +0.10% on the prospects for a strong U.S. Jul durable goods orders report later this morning, while European stocks are up +0.18% on optimism a resolution to the conflict in Ukraine can be found. Russia President Putin and Ukraine President Poroshenko are set to meet today in Minsk, Belarus, as tensions continue to flare in the region. Ukraine said that an armored column that included 10 tanks entered its country Monday from Russia under the guise of humanitarian aid into rebel-held Ukrainian territory. European government bond yields continue to fall to record lows amid speculation of additional ECB monetary easing. The yield on Italy's 10-year bond fell to 2.40% and the yield on Spain's 10-year bond fell to 2.18%, both at the lowest since Bloomberg started collecting the data in 1993. Asian stocks closed mixed as valuation concerns weighed on prices with Asian stock markets at their highest valuations this year: Japan -0.59%, Hong Kong -0.37%, China -0.80%, Taiwan +0.04%, Australia +0.05%, Singapore -0.22%, South Korea +0.26%, India +0.02%. China's Shanghai Stock Index fell to a 2-week low amid concern that 10 new initial public offerings this week may divert funds from existing equities. Commodity prices are mixed. Oct crude oil CLV14 +0.29%) is up +0.28%. Oct gasoline (RBV14 +0.15%) is up +0.15%. Dec gold (GCZ14 +0.69%) is up +0.74%. Sep copper (HGU14 -0.59%) is down -0.57%. Agriculture and livestock prices are mostly lower with Nov soybeans down -0.41% at a fresh contract low. The dollar index (DXY00 -0.02%) is down -0.07%. EUR/USD (^EURUSD) is up +0.05% as it rebounds from an 11-1/2 month low. USD/JPY (^USDJPY) is down -0.15%. Sep T-note prices (ZNU14 +0.10%) are up +6 ticks.
The Markit iTraxx Europe index of credit-default swaps on 125 investment-grade companies, which is cost of insuring against losses on European corporate debt, fell -2.5 bp to 57 bp, a 7-week low.
Japan Jul PPI services prices rose +3.7% y/y, unchanged from Jun and right on expectations and the fastest pace of increase in 24 years.

U.S. STOCK PREVIEW

Today’s July durable goods orders report is expected to show a sharp gain of +8.0% for the headline figure but an increase of only +0.5% ex-transportation. Today’s Aug Richmond Fed manufacturing index is expected to show a small -1 point decline to 6, giving back some of the +3 point increase to 7 seen in July. The market is expecting today’s June FHFA index to be up +0.3% m/m and for the June Case-Shiller index to be unchanged from May. Today’s Aug consumer confidence index from the Conference Board is expected to show a decline of -1.9 points to 89.0, reversing part of July’s +4.5 point increase to 90.9. The Treasury today will sell $29 billion of 2-year T-notes, kicking off this week’s sale of $106 billion of T-notes.
There are 6 of the Russell 1000 companis that reports earnings today: Tech Data (consensus $0.77), Golar LNG (-0.06), Best Buy (0.31), DSW (0.32), Analog Devices (0.63), Solera Holdings (0.80). Equity conferences this week include: ONS 2014 Conference on Mon-Thu, Latin Markets 3rd Annual Peru Capital Projects & Infrastructure Summit on Wed, Simmons European Energy Conference on Wed, Jefferies Semiconductors, Hardware & Communications Infrastructure Summit on Wed, and MIT Sloan Latin America-China Conference on Fri.

OVERNIGHT U.S. STOCK MOVERS

Best Buy (BBY +2.53%) reported Q2 EPS of 44 cents, well ahead of consensus of 31 cents.
Tech Data (TECD +0.67%) reported Q2 non-GAAP EPS of $1.12, much higher than consensus of 77 cents.
Salesforce.com (CRM -0.95%) files to sell 7.2 million shares of common stock for holders.
Sanderson Farms (SAFM +1.96%) reported Q3 EPS of $3.30, well below consensus of $3.82.
ArcelorMittal (MT +0.36%) was upgraded to 'Buy' from 'Sell' at UBS.
Comtech Telecommunications (CMTL +4.84%) rose 3% in after-hours trading after it confirmed that it is exploring strategic alternatives to enhance shareholder value, including a possible merger or sale of the company.
Castleton Commodities reported a 9.9% passive stake in Torchlight Energy Resources (TRCH -2.34%) .
D. E. Shaw & Co reported a 5.0% passive stake in Liberty Media (LMCA -0.37%) .
Owl Creek reported a 5.8% passive stake in Seventy Seven Energy (SSE +1.22%) .
OZ Management reported an 8.04% passive stake in Biglari (BH -0.58%) .
Amazon.com (AMZN +0.73%) announced that it reached an agreement to acquire Twitch Interactive for $970 million.
ModusLink Global Solutions reported a 9.9% stake in Medifast (MED -0.14%) .

MARKET COMMENTS

Sep E-mini S&Ps (ESU14 +0.15%) this morning are up +2.00 points (+0.10%). The S&P 500 index and the Dow on Monday rallied to fresh all-time highs and closed higher: S&P 500 +0.48%, Dow Jones +0.44%, Nasdaq +0.36%. Bullish factors included (1) increased M&A activity after Roche Holding purchased InterMune for $8.3 billion and Burger King Worldwide said it was in talks to buy Tim Hortons, and (2) the +0.28 increase in the Jul Chicago Fed national activity index to a 4-month high 0.39, better than expectations of +0.08 to 0.20 Stocks fell back from their best levels after an unexpected -2.4% decline in Jul new home sales to a 4-month low of 412,000, weaker than expectations of a +5.8% increase to 430,000.
Sep 10-year T-notes (ZNU14 +0.10%) this morning are up +6 ticks. Sep 10-year T-note futures prices Monday settled little changed. T-note prices Monday were undercut by reduced safe-haven demand after the S&P 500 rallied to a new record high. Bullish factors included (1) the unexpected decline in U.S. Jul new home sales, and (2) carry-over support from a rally in German bunds after the yield on the 10-year German bund fell to a record low of 0.925%. Closes: TYU4 +2.0, FVU4 -1.50.
The dollar index (DXY00 -0.02%) this morning is down -0.059 (-0.07%). EUR/USD (^EURUSD) is up +0.0007 (+0.05%) and USD/JPY (^USDJPY) is down -0.16 (-0.15%). The dollar index on Monday posted an 11-1/2 month high and closed higher. EUR/USD tumbled to an 11-1/2 month low after the German Aug IFO business confidence fell more than expected to a 13-month low. USD/JPY rallied to a 7-month high and closed higher as the yen tumbled to a 7-month low against the dollar when BOJ Governor Kuroda said at the Fed’s symposium in Jackson Hole, Wyoming that BOJ monetary policy was “having its intended effect” and that global central banks must fight deflation by any and all means. Closes: Dollar index +0.213 (+0.26%), EUR/USD -0.00497 (-0.38%), USD/JPY +0.145 (+0.14%).
Oct WTI crude oil (CLV14 +0.29%) this morning is up +26 cents (+0.28%) and Oct gasoline (RBV14 +0.15%) is up +0.0038 (+0.15%). Oct crude and gasoline prices on Monday settled mixed: CLV4 -0.30 (-0.32%), RBV4 +0.0065 (+0.25%). Crude prices fell on bearish factors that included (1) the rally in the dollar index to an 11-1/2 month high, and (2) expectations that Wednesday’s weekly EIA inventory data will show crude supplies at Cushing, Oklahoma, delivery point of WTI futures, increased for a fourth week. Gasoline prices rose on increased optimism in the U.S. economic outlook after the S&P 500 posted a new record high.

GLOBAL EVENT CALENDAR08/26/2014

US	0830 ET	Jul durable goods orders expected +8.0% and +0.5% ex-transportation, Jun +1.7% and +1.9% ex transportation. July capital goods orders non-defense ex-aircraft expected +0.2%, June +3.3%.
	0900 ET	Jun FHFA house price index expected +0.3% m/m, May +0.4% m/m. Q2 house price index, Q1 +1.30% q/q.
	0900 ET	Jun S&P/CaseShiller composite-20 home price index expected unch m/m and +8.3% y/y, May -0.31% m/m and +9.34% y/y. Q2 S&P/CaseShiller home price index, Q1 +10.35% y/y.
	1000 ET	Aug consumer confidence (Conference Board) expected -1.9 to 89.0, Jul +4.5 to 90.9.
	1000 ET	Aug Richmond Fed manufacturing index expected -1 to 6, Jul +3 to 7.
	1300 ET	Treasury auctions $29 billion 2-year T-notes.

U.S. STOCK CALENDAR08/26/2014

Company Name	Ticker	Time	Event Description	Period	Estimate
Tech Data Corp	TECD US	Bef-mkt	Q2 2015 Earnings Release	Q2 2015	0.774
Golar LNG Ltd	GLNG US	Bef-mkt	Q2 2014 Earnings Release	Q2 2014	-0.063
Best Buy Co Inc	BBY US	7:00	Q2 2015 Earnings Release	Q2 2015	0.31
DSW Inc	DSW US	7:00	Q2 2015 Earnings Release	Q2 2015	0.315
Best Buy Co Inc	BBY US	8:00	Q2 2015 Earnings Call	Q2 2015
DSW Inc	DSW US	8:30	Q2 2015 Earnings Call	Q2 2015
Tech Data Corp	TECD US	9:00	Q2 2015 Earnings Call	Q2 2015
Golar LNG Ltd	GLNG US	10:30	Q2 2014 Earnings Call	Q2 2014
Analog Devices Inc	ADI US	17:00	Q3 2014 Earnings Call	Q3 2014
Solera Holdings Inc	SLH US	17:00	Q4 2014 Earnings Call	Q4 2014
Analog Devices Inc	ADI US	Aft-mkt	Q3 2014 Earnings Release	Q3 2014	0.627
Solera Holdings Inc	SLH US	Aft-mkt	Q4 2014 Earnings Release	Q4 2014	0.802
Equifax Inc	EFX US		Investor Meeting - London	Y 2014

Barchart Morning Call 4/5

BARCHART MORNING CALL

Friday, April 5th, 2013View Older Reports

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OVERNIGHT MARKETS AND NEWS

June E-mini S&Ps (ESM13 -0.60%) this morning are moderately lower by -0.51% as the market fears a weak U.S. payroll report today after the ADP report of +158,000 earlier this week and yesterday's +28,000 rise in initial unemployment claims suggested the labor market might be weakening. In addition, European stocks are down -1.40% this morning on a weak Eurozone retail sales report. Hong Kong stocks fell by -2.73% on fears about bird flu. Japan's Nikkei index today closed +1.58% on support from the BOJ's announcement on Thursday of a massive expansion of its QE program. Most other Asian stock markets fell today: Australia -0.45, Singapore -0.24%, South Korea -1.67%, India -0.32%, Turkey -0.54%. The mainland Chinese stock market was closed today for a holiday. Commodity prices are mildly lower this morning by -0.11%. May crude oil (CLK13 -0.33%) is down -0.40%, May gasoline (RBK13 +0.08%) is down -0.02%, June gold (GCM13 +0.12%) is up +0.12%, May copper (HGK13 -0.16%) is down -0.12%, and agriculture prices are trading mostly lower. The dollar index (DXY00 +0.05%) is slightly higher by +0.10% and EUR/USD (^EURUSD) is down -0.12%. USD/JPY (^USDJPY) is down -0.08% on some long liquidation pressure after yesterday's surge on the BOJ's QE program. June 10-year T-note prices (ZNM13 +0.01%) this morning are up 1 tick.
Fed Vice Chairman Yellen said that reducing the jobless rate should take center stage for the Fed even if the inflation rate creeps slightly above 2%.
The Chinese bird flu situation is getting worse as 6 people have now died and Shanghai began slaughtering chickens at a local market. However, the good news is that there has been no evidence as yet of human-to-human transmission of the virus. The bird flu outbreak hurt Hong Kong stocks today and has pushed soybean prices lower since feed demand will be reduced if there is a massive slaughter of birds. Airline stocks have also been hurt as the bird flu outbreak could hurt global air travel.
There is no news as yet out of today's meeting in Kazakhstan between Iran and the world powers on Iran's nuclear program. The two sides remain far apart even though Iran's negotiator said that a "turning point" had been reached after the last meeting on Feb 27. Iran will hold presidential elections in June.
Japan's Feb coincident index rose by +0.5 to 92.1 from 91.6 in Jan, which was stronger than market expectations for a +0.3 point increase to 91.9. The Feb leading index rose by +2.5 points to 97.5 from 95.0 in Jan and was stronger than market expectations for a 2.3 point increase to 97.3.
The Eurozone Feb retail sales report of -0.3% m/m was slightly stronger than market expectations of -0.4% m/m, although Jan was revised lower to +0.9% m/m from +1.2% m/m. On a year-on-year basis, Feb retail sales strengthened to -1.4% y/y from a revised -1.9% y/y in Jan (prelim -1.9% y/y).
German Feb factory orders rose by +2.3% m/m, which was stronger than market expectations of +1.1% and more than reversed the revised -1.6% m/m drop seen in Jan.

U.S. STOCK PREVIEW

The market has been expecting today’s U.S. March unemployment report to be relatively strong with payroll growth of +195,000 and an unchanged unemployment rate from Feb’s 4-year low of 7.7%. However, Wednesday’s March ADP employment report of +158,000 was substantially weaker than market expectations of +200,000. Today’s Feb U.S. trade deficit is expected to widen slightly -$44.6 billion from -$44.4 billion in January. There are no stocks in the Russell 1000 that are due to report earnings today. However, Q1 earnings season unofficially begins on Monday with Q1 earnings from Alcoa. Conferences today include the China Business Conference 2013 in NY, and the Women in the World Summit 2013.

June E-mini S&Ps (ESM13 -0.60%) this morning are down -8.00 points (-0.51%) on fears about a weak payroll report this morning and on weak overseas stocks. The S&P 500 index on Thursday closed slightly higher. Stocks received a boost after the BOJ expanded its QE program to 7 trillion yen ($74 billion) per month, higher than market expectations of 5.2 trillion yen. Stocks fell back from their best levels when weekly initial jobless claims climbed +28,000 to a 4-1/4 month high of 385,000, higher than expectations of +4,000 of 353,000. Stocks were also undercut after European equities slid when ECB President Draghi said that “downside risks” to growth remain. Closes: S&P 500 +0.40%, Dow Jones +0.38%, Nasdaq 100 -0.01%.

OVERNIGHT U.S. STOCK MOVERS

• Facebook (FB +3.12%) was upgraded to Buy from Hold at Argus due to expectations that Facebook Home will help Facebook in the mobile market.
• Boeing (BA +0.70%) may schedule a certification test flight for the 787 Dreamliner Friday with a 'revamped' battery system, according to a report by Reuters.
• Medifast (MED +1.02%) announced the company has paid off the remaining value of its outstanding long term notes and is now completely debt free.
• Cablevision (CVC +0.77%) was initiated with a "Neutral" at RW Baird with a target price of $16 a share.
• Charter (CHTR +2.22%) was initiated with a "Neutral" at RW Baird with a target price of $108 a share.
• Time Warner Cable (TWC +0.88%) was initiated with a "Neutral" at RW Baird with a target price of $102 a share.
• Workday (WDAY -0.80%) was initiated with a "Buy" at Jefferies with a target price of $76 a share.
• F5 Networks (FFIV -0.11%) tumbled 15% in after-hours trading after it lowered its guidance on Q2 EPS to $1.06-$1.07, lower than consensus of $1.23, citing a slowdown in North America.
• Xyratex (XRTX +1.74%) reported a Q1 non-GAAP EPS loss of -13 cents, better than consensus of -18 cents.
• WD-40 (WDFC +1.83%) reported Q2 EPS of 66 cents, better than consensus of 56 cents, and raised its guidance for fiscal year 2013 to $2.32 to $2.42, higher than consensus of $2.37.

MARKET COMMENTS

June 10-year T-notes (ZNM13 +0.01%) this morning are up 1 tick. June 10-year T-note prices on Thursday closed higher as the 10-year T-note yield fell to a 3-month low of 1.754%. Expectations for a weak March payrolls report on Friday boosted T-note prices when weekly jobless claims rose more than expected to a 4-1/4 month high. T-note prices also received support from the BOJ’s QE program and comments from ECB President Draghi that “downside risks” to growth remain. Closes: TYM3 +14.0, FVM3 +5.0.
The forex market is little changed this morning after yesterday's gyrations on the BOJ's QE announcement. The dollar index (DXY00 +0.05%) this morning is up +0.10%, EUR/USD (^EURUSD) is down -0.0015 (-0.12%), and USD/JPY (^USDJPY) is down -0.08 (-0.08%). The dollar index on Thursday posted an 8-month high but fell back and settled little changed. EUR/USD posted a 4-1/4 month low when ECB President Draghi said economic risks for the Eurozone remain to the downside and that inflation is “edging down well below” the ECB’s 2% target, but prices recovered and closed higher. USD/JPY surged to a 3-week high as the yen plunged when the BOJ expanded its QE program to 7 trillion yen ($74 billion), higher than market expectations of 5.2 trillion yen. Closes: Dollar index -0.041 (-0.05%), EUR/USD +0.0086 (+0.67%), USD/JPY +3.297(+3.54%).
May WTI crude oil (CLK13 -0.33%) is down -0.37 (-0.40%) and May gasoline (RBK13 +0.08%) is down -0.0007 (-0.02%). Crude oil and gasoline tumbled on Thursday for a third day. Bearish factors included (1) the rally in the dollar index to an 8-month high, (2) the rise in weekly U.S. jobless claims to their highest level in 4-1/4 months, and (3) comments from ECB President Draghi who said that the economic outlook for the Eurozone remains subject to “downside risks.” Closes: CLK3 -1.06 (-1.12%), RBK3 -0.0153 (-0.53%).

GLOBAL EVENT CALENDAR04/05/2013

US	0830 ET	Feb U.S. trade deficit expected -$44.6 bln, Jan -$44.4 bln.
	0830 ET	March payrolls expected +195,000, Feb +236,000. March private payrolls expected +200,000, Feb +246,000. March mfg payrolls expected +10,000, Feb +14,000. March unemployment rate expected unch at 7.7%, Feb was -0.2 to 7.7%.
	0830 ET	March average hourly earnings expected +0.2% m/m and +2.0% y/y, Feb +0.2% m/m and +2.1% y/y. March average weekly hours expected unch at 34.5, Feb 34.5.
	1500 ET	Feb consumer credit expected +$15.0 bln, Jan +$16.151 bln.
	n/a	Iran and world powers hold another round of nuclear talks in Kazakhstan.
JPN	0100 ET	Japan Feb coincident index CI expected 91.9, Jan 91.6. Feb leading index CI expected 97.3, Jan 95.0.
	0100 ET	BOJ April monthly report.
EUR	0500 ET	Eurozone Feb retail sales expected -0.4% m/m and -1.2% y/y, Jan +1.2% m/m and -1.3% y/y.
GER	0600 ET	German Feb factory orders expected +1.1% m/m and -1.5% y/y, Jan -2.5% m/m and -2.5% y/y.
UK	n/a	UK March new car registrations, Feb +7.9% y/y.
CH	n/a	Chinese markets are closed for a public holiday.

U.S. STOCK CALENDAR04/05/2013

Company Name	Symbol	Time	Event Description	Period	EPS Est (US$)
Saba Software Inc	SABA US	9:00	Business Update Call
Advisory Board Co/The	ABCO US	10:30	Advisory Board Conference Call sponsored by Avondale Partners
Las Vegas Sands Corp	LVS US	12:00	Retrial Begins in Las Vegas Sands vs. Richard Suen Case
Baker Hughes Inc	BHI US		March 2013 Sales and Revenue Release - Rig Counts	2013
Chase Corp	CCF US		Q2 2013 Earnings Release	Q2 2013	0.21
Avid Technology Inc	AVID US		Q4 2012 Earnings Release	Q4 2012	0.12
CNH Global NV	CNH US		Annual General Meeting	Y 2013
NYSE Euronext	NYX US		March 2013 Sales and Revenue Release - Trading Volumes	2013

Barchart Morning Call 3/8

Barchart Morning Call - 3/8

Friday, March 8th, 2013View Older Reports

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OVERNIGHT MARKETS AND NEWS

June E-mini S&Ps (ESH13 +0.28%) are up +0.37% this morning on a +1.03% rally in European stocks and mostly higher stocks in Asia. The markets are encouraged by today's continued drop in Spanish and Italian bond yields and by a +22% increase in Chinese Feb exports and upward revision in Japan's Q4 GDP to +0.2% q/q annualized from -0.4%, although Germany's Jan industrial production was weaker than expected at unchanged. Commodity prices this morning are mildly higher by 0.13%. April crude oil (CLJ13 -0.49%) is down -0.21%, April gasoline (RBJ13 +0.77%) is up +0.49%, April gold (GCJ13 -0.01%) is up +0.15%, May copper (HGK13 -0.27%) is down -0.40%, and agriculture prices are trading mostly higher. The dollar index (DXY00 +0.22%) is mildly higher by +0.11%. EUR/USD (^EURUSD) is little changed and USD/JPY (^USDJPY) is sharply higher by +0.94% as Japan's Jan trade balance showed a large deficit of -1.5 trillion yen. June 10-year T-notes (ZNM13 -0.14%) are down 5.5 ticks.
China's Feb exports rose sharply by +21.8% y/y, which was down from +25.8% in Jan but was much stronger than market expectations of +8.1%. Meanwhile, Feb imports fell by -15.2% y/y, weaker than market expectations of -8.5% y/y. The Feb trade balance showed a surplus of $15.25 billion, down from the $29.15 billion surplus in Jan but better than market expectations for a deficit of -$6.9 billion.
The Spanish 10-year bond yield today fell by another 7 bp to a new 2-1/3 year low of 4.83% as market concern about Spain continues to ease. The Italian 10-year bond yield fell by 3 bp to 4.56%.
German Jan industrial production was unchanged m/m and -1.3% y/y, which was weaker than market expectations of +0.4% m/m and -1.2% y/y. The report provided further evidence to show how the German economy is stagnating due to the Eurozone recession.
Japan's Feb Eco Watchers outlook index rose to 57.7 from 56.5 in Jan, while the Feb current index rose to 53.2 from 49.5.
Japan's Jan adjusted current account balance rose to 365 billion yen from a revised 115 billion yen in Dec. Japan's Jan trade balance showed a big deficit of -1.479 trillion yen, which was a bit narrower than market expectations of -1.5 trillion yen.
Japan's Q4 GDP was revised upward to +0.2% q/q annualized from the preliminary report of -0.4%.
North Korea today scrapped the 1953 armistice that called a truce in the Korean war and canceled the hotline with South Korea after the UN approved new sanctions. South Korea this week warned North Korea that any military provocation may be met not only with retaliation on the site of the attack but also possibly on command leadership facilities.

U.S. STOCK PREVIEW

Today’s Feb payroll report is expected to show an increase of +160,000, which would be just slightly below the 6-month trend increase of +177,000, but slightly above January’s increase of +157,000. Today’s Feb unemployment rate is expected to be unchanged from January’s 7.9% level. That would be 0.1 point above the 4-year low of 7.8% posted several times in late 2012.
There are three of the Russell 1000 companies that report earnings today: Foot Locker (consensus $0.73), Carnival (0.03), and Tahoe Resources (-0.15).

June E-mini S&Ps (ESH13 +0.28%) are up 5.75 points (+0.37%) on expectations for a solid payroll report this morning and on a sharp 1.03% rally in European stocks. The S&P 500 index on Thursday closed higher with the Dow at a record high and the S&P 500 at a 5-1/3 year high. Bullish factors included (1) the unexpected drop in weekly initial unemployment claims to a 6-week low, and (2) carry-over support from a rally in European stocks after S&P upgraded Portugal’s credit rating and ECB President Draghi said the Eurozone economy will stabilize this year. Closes: S&P 500 +0.18%, Dow Jones +0.23%, Nasdaq +0.25%.

OVERNIGHT U.S. STOCK MOVERS

• Foot Locker (FL +0.40%) reported Q4 adjusted EPS of 73 cents, right in line with the consensus of 73 cents.
• Fuel Systems (FSYS +3.63%) reported Q4 adjusted EPS of 1 cents, better than the consensus for a 3-cent loss.
• Continental Grain sent a letter to the Smithfield Foods (SFD +10.67%) board requesting that the board hire an investment bank to consider its strategic options, such as splitting the company into three independent companies.
• Carl Icahn raised his stake in Herbalife (HLF unch) to 15.55% from 13.6%.
• H&R Block (HRB -1.11%) reported an adjusted Q3 EPS loss of -22 cents, worse than consensus of -1 cent, saying total Q3 revenues fell -29% due to "timing issues" from the IRS opening its e-file system on January 30, which resulted in delays to the start of the U.S. tax season.
• WuXi PharmaTech (WX +0.46%) reported Q4 EPS of 38 cents, better than consensus of 30 cents.
• Medifast (MED +0.58%) reported Q4 adjusted EPS of 28 cents, better than consensus of 25 cents, but lowered its guidance on Q1 EPS to 32 cents to 35 cents, below consensus of 45 cents.
• Cooper Companies (COO -0.81%) reported Q1 EPS of $1.23, better than consensus of $1.19.
• Quiksilver (ZQK +0.96%) reported a Q1 EPS loss of -16 cents, worse than consensus of -7 cents.
• PowerSecure (POWR +5.30%) reported Q4 EPS of 13 cents, better than consensus of 11 cents.
• TiVo (TIVO +0.96%) was initiated with an "Overweight" at Piper Jaffray with a share price target of $16.
• Covanta (CVA -1.22%) announced that the Board of Directors has authorized a 10% increase of the company's quarterly cash dividend to 16.5 cents from 15 cents per share. The Board of Directors also increased the current share repurchase authorization to $150 million.
• Emergent BioSolutions (EBS +0.07%) reported Q4 EPS of 44 cents, slightly weaker than consensus of 45 cents.
• Finisar (FNSR +5.53%) reported Q3 adjusted EPS of 17 cents, slightly better than consensus of 16 cents.

MARKET COMMENTS

June 10-year T-notes (ZNM13 -0.14%) are down 5.5 ticks on reduced safe-haven demand with the rally in U.S. and European stock indexes. June 10-year T-note prices on Thursday slid to a 1-1/2 week low on the decline in unemployment claims and on reduced safe-haven demand with the Dow at a new record high and with Standard & Poor’s upgrading Portugal’s credit rating to stable from negative. Closes: TYM3 -15.5, FVM3 -7.75.
The dollar index (DXY00 +0.22%) is up +0.09 points (+0.11%). EUR/USD (^EURUSD) is virtually unchanged. USD/JPY (^USDJPY) is sharply higher by +0.89 yen (+0.94%) on today's Japanese trade deficit news. The dollar index on Thursday closed lower on reduced safe-haven demand as stocks rallied. EUR/USD strengthened after Standard & Poor’s upgraded Portugal’s credit rating outlook to stable from negative and after ECB President Draghi said the Eurozone economy will stabilize this year. USD/JPY posted a 3-1/2 year high on speculation the BOJ will expand its yen-negative monetary stimulus measures: Dollar index -0.378 (-0.46%), EUR/USD +0.0140 (+1.08%), USD/JPY +0.758 (+0.80%).
April WTI crude oil (CLJ13 -0.49%) is down -0.19 (-0.21%) and April gasoline (RBJ13 +0.77%) is up +0.0154 (+0.49%). Crude oil and gasoline prices on Thursday closed mixed as crude oil gained on economic optimism after the Dow rallied to another record high. However, gasoline weakened on signs of adequate supplies after the DOE on Wednesday reported that U.S. gasoline inventories in the important PADD1 district that includes NY Harbor (where Nymex gasoline is priced) rose by +651,000 bbl. Closes: CLJ3 +1.13 (+1.25%), RBJ3 -0.0014 (-0.04%).

GLOBAL EVENT CALENDAR03/08/2013

US	0830 ET	Feb non-farm payrolls expected +160,000, Jan +157,000. Feb private payrolls expected +167,000, Jan +166,000. Feb manufacturing payrolls expected +10,000, Jan +4,000. Feb unemployment rate expected unchanged at 7.9%, Jan +0.1 to 7.9%.
	0830 ET	U.S. Feb average hourly earnings expected +0.2% m/m and +2.1% y/y, Jan +0.2% m/m and +2.1% y/y. Feb average weekly hours all-employees expected unchanged at 34.4 hours, Jan 34.4 hours.
	1000 ET	Jan wholesale inventories expected +0.3% m/m, Dec -0.1% m/m.
JPN	0000 ET	Jan Feb Eco watchers survey outlook, Jan 56.5. Feb Eco watchers survey current, Jan 49.5.
GER	0600 ET	German Jan industrial production expected +0.4% m/m and -1.2% y/y, Dec +0.3% m/m and -1.1% y/y.
CHI	2030 ET	China Feb CPI expected +3.0% y/y, Jan +2.0% y/y. Feb PPI expected -1.5% y/y, Jan -1.6% y/y.

U.S. STOCK CALENDAR03/08/2013

Company Name	Symbol	Time	Event Description	Period	EPS Est (US$)
Foot Locker Inc	FL US	Bef-mkt	Q4 2013 Earnings Release	Q4 2013	0.726
Foot Locker Inc	FL US	9:00	Q4 2013 Earnings Call	Q4 2013
Analog Devices Inc	ADI US		ITC Scheduled to Release Findings for Dover Corp vs Analog Devices
Carnival Corp	CCL US		Q1 2013 Earnings Release	Q1 2013	0.032
Walt Disney Co/The	DIS US		Box Office Release of Movie Oz the Great and Powerful""
Dover Corp	DOV US		ITC Scheduled to Release Findings for Dover Corp vs Analog Devices
Hawaiian Electric Industries Inc	HE US		Financial Community Meeting - Day 3	Y 2013
Hill-Rom Holdings Inc	HRC US		Annual General Meeting
McDonald's Corp	MCD US		February 2013 Sales and Revenue Release	2013
Thor Industries Inc	THO US		Q2 2013 Earnings Release	Q2 2013	0.38
Tahoe Resources Inc	THO CN		Q4 2012 Earnings Release	Q4 2012	-0.147

Barchart Morning Call 11/20

Barchart Morning Call

BC - 1 hr 47 mins ago

Overnight Developments

• Dec E-mini S&Ps are little changed this morning. The Euro Stoxx 50 index this morning is slightly lower by -0.15% and the large Asian stock markets closed mildly lower with Japan down -0.12%, Hong Kong down -0.16%, and China down -0.46%. The markets in part are awaiting developments from today's Eurozone finance ministers meeting on Greece. Israel has put its ground invasion of Gaza on hold while it waits to see if Egypt can convince Hamas to stop firing rockets into Israel. Commodity prices this morning are slightly lower by -0.10% with Jan crude oil down -0.19%, Jan gasoline down -0.56%, Dec gold down -0.02%, Dec copper down -0.17%, and agriculture prices mixed. The dollar index is slightly lower by -0.05%. Dec 10-year T-note prices are down 5.5 ticks.
• The Bank of Japan at the 2-day meeting that concluded today left its monetary policy unchanged and did not raise its asset purchase target. The BOJ had already raised its asset purchase target in each of the last two months in September and October. Today's lack of action was in line with market expectations. The market is now expecting the BOJ to raise its target again at its meeting in December. The BOJ will come under increased pressure to ease if the opposition LDP party wins December's general election as expected since LDP leader Shinzo Abe recently called on the BOJ to engage in unlimited easing and to boost its inflation goal to 2% or 3% from the current 1%.
• Chinese foreign direct investment fell -0.2% y/y to $8.31 billion, which was the eleventh decline in the last twelve months. The report indicated that foreign investors are pulling back from China due to slower economic growth and various administrative restrictions designed to rein in the economy and inflation.
• Japan's Sep all-industry activity index fell -0.3% m/m, which was a bit stronger than the expected -0.5% decline.
• Japan Oct nationwide department store sales fell -2.4% y/y, down from -0.2% y/y in Sep. Tokyo Oct department store sales fell -1.5% y/y versus the +0.7% y/y increase in September.
• The German Oct producer price report of unch m/m and +1.5% y/y was slightly weaker than market expectations of +0.1% m/m and +1.6% y/y and was down from +0.3% m/m and +1.7% in Sep.
  Market Comments
  • Dec E-mini S&Ps this morning are slightly higher by +0.25 points (+0.02%) as the market pauses in the wake of yesterday's sharp rally. Global stocks are mildly lower this morning on balance. The stock market is looking ahead to today's housings starts report and the outcome of today's Eurozone finance ministers meeting regarding Greece. U.S. stocks on Monday rallied sharply on hopes for Eurozone approval of the Greek bailout tranche as soon as Tuesday and improved hopes for a fiscal cliff resolution, along with the stronger-than-expected U.S. existing home sales data and NAHB housing market index. Closes: S&P 500 +1.99%, Dow Jones +1.65%, Nasdaq +2.43%. The Nov NAHB housing market index rose sharply by 5 points to a 6-1/2 year high of 46, which was much stronger than market expectations of unchanged at 41. U.S. existing home sales rose +2.1% to 4.79 mln units, which was stronger than market expectations for a report of 4.74 million units.
  • Dec 10-year T-notes this morning are down 5.5 ticks as safe-haven demand continues to ebb. Dec 10-year T-note prices on Monday closed moderately lower on the stronger-than-expected housing market data and reduced safe-haven demand with the rally in stocks: Closes: TYZ2 -9, FVZ2 -3.25.
  • The dollar index this morning is slightly lower by -0.04 points (-0.05%). EUR/USD is virtually unchanged and USD/JPY is up +0.10 (+0.12%). The dollar index on Monday closed lower due to reduced safe-haven demand with the sharp upward rebound in the U.S. stock market. EUR/USD on Monday closed higher on hopes for Eurozone approval of the Greek bailout tranche and was able to shake off news of a downgrade in the French credit rating. Closes: Dollar index -0.38 (-0.47%), EUR/USD +0.0071 (+0.56%), USD/JPY +0.71 (+0.56%).
  • Jan WTI crude oil prices this morning are down -0.17 (-0.19%) and Jan gasoline is down -0.0152 (-0.56%) as the petroleum market runs into some long liquidation pressure after yesterday's rally. Dec crude oil and gasoline prices on Monday closed higher on (1) Middle East tensions with Israel on the verge of a ground invasion of Gaza, and (2) weakness in the dollar index and the rally in stocks: CLF3 +2.36 (+2.72%), RBZ2 +0.0502 (+1.87%). The market consensus for Wednesday's weekly DOE report is for a 1 million barrel increase in crude oil inventories, a 1 million barrel increase in gasoline inventories, a 1 million barrel decline in distillate inventories, and a 0.5 point increase in the refinery utilization rate.
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    Today's U.S. Earnings Reports Earnings reports (ranked by market cap): Medtronic (Consensus:$0.88), HPQ-Hewlett Packard (1.14), CRM-Salesforce.com (0.32), HNZ-Heinz (0.88), CPB-Campbell Soup (0.85), HRL-Hormel Foods (0.50), VAL-Valspar (0.85), BBY-Best Buy (0.12), SIG-Signet Jewelers (0.37), PDCo-Patterson Cos (0.48), EV-Eaton Vance (0.48), CHS-Chico's Fas (.23).
    Global Financial Calendar
    

    Tuesday 11/20/12
    United States
    0745 ET	ICSC (Int'l Council of Shopping Centers) weekly retailer sales.
    0830 ET	Oct housing starts expected -3.7% m/m to 840,000, Sep +15.0% to 872,000. Oct building permits are expected at -2.9% to 864,000, Sep +11.1% to 890,000.
    0855 ET	Redbook weekly retailer sales.
    0900 ET	Richmond Fed President Jeffery Lacker speaks on monetary policy in NY at the Shadow Open Market Committee's Fall Symposium.
    1130 ET	Weekly 4-week T-bill auction.
    1215 ET	Fed Chairman Bernanke speaks to the Economic Club of NY.
    1630 ET	API weekly U.S. oil statistics.
    Euro-Zone
    n/a	Eurozone finance ministers meeting.
    Japan
    n/a	BOJ 2-day meeting concludes.
    0030 ET	Japan Oct nationwide department store sales, Sep -0.2% y/y. Oct Tokyo department store sales, Sep +0.7% y/y.
    0200 ET	Japan Oct convenience store sales, Sep -1.6% y/y.
    1850 ET	Japan Oct merchandise trade balance expected -360 bln yen, Sep -562 bln yen. Oct adjusted merchandise trade balance expected -492 bln yen, Sep -980 bln yen. Oct trade exports expected -4.9% y/y, Sep -10.3% y/y. Oct trade imports expected -3.2% y/y, Sep +4.1% y/y.
    CHI
    2100 ET	Conference Board's China Oct leading economic index.
    Germany
    0200 ET	German Oct producer prices expected +0.1% m/m and +1.6% y/y, Sep +0.3% m/m and +1.7% y/y.

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