Showing posts with label MON. Show all posts
Showing posts with label MON. Show all posts

Thursday, October 5, 2017

Morning Call 10/5

Barchart Morning Call

OVERNIGHT MARKETS AND NEWS
Dec E-mini S&Ps (ESZ17 +0.03%) this morning are little changed, up +0.01%, ahead of speeches later this morning from Fed Governor Powell and Fed Presidents Harker and Williams. The speech from Fed Governor Powell may be given added scrutiny with reports that he is on President Trump's shortlist of candidates to replace Fed Chair Yellen. European stocks are unchanged as the markets weigh the situation in Spain where the state of Catalonia is trying to secede from Spain and form its own independent republic. Spain's IBEX Stock Index is up 1.15% and is giving a boost to European stocks after Spanish Economy Minister Guindos said that banks in Catalonia have indicated they are open to moving their headquarters elsewhere if the situation in the state worsens. Guindos also said that Catalonia's actions are illegal and independence is out of the question and that Spain has nothing to discuss with the secessionists until rule of law is restored. GBP/USD tumbled -0.49% to a 3-week low on reports that UK Prime Minister May could face a leadership rebellion within her own party with up to 30 Tory lawmakers prepared to sign a letter calling for her resignation. Asian stocks settled mixed: Japan +0.01%, Taiwan +0.47%, Australia -0.01%, Singapore +0.78%, India -0.25%. China, Hong Kong and South Korea are all closed for holidays.
The dollar index (DXY00 +0.16%) is up +0.11%. EUR/USD (^EURUSD) is down -0.13%. USD/JPY (^USDJPY) is down -0.22%.
Dec 10-year T-note prices (ZNZ17 +0.06%) are up +2.5 ticks.
UK Sep new car registrations fell -9.3% y/y to 426,170 and year-to-date are down -3.9% to 2,066.411.
The German Sep Markit construction PMI fell -1.5 to 53.4, the slowest pace of expansion in 8-months.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) Sep Challenger job cuts (Aug +5.1% y/y), (2) weekly initial unemployment claims (expected -7,000 to 265,000, previous +12,000 to 272,000) and continuing claims (expected +16,000 to 1.950 million, previous -45,000 to 1.934 million), (3) Aug trade balance (expected -$42.7 billion, Jul -$43.7 billion), (4) Fed Governor Jerome Powell speaks on Treasury markets and Treasury market practices at an event in New York, (5) San Francisco Fed President John Williams (non-voter) delivers keynote speech at the St. Louis Fed’s Community Banking in the 21st Century Research and Policy Conference, (6) Aug factory orders (expected +1.0%, Jul -3.3% and +0.5% ex transportation), (7) Philadelphia Fed President Patrick Harker (voter) speaks at the “Investing in America’s Workforce” conference, (8) Kansas City Fed President Esther George (non-voter) speaks at the “Investing in America’s Workforce” conference, (9) USDA weekly Export Sales.
Notable Russell 1000 earnings reports today include: Costco (consensus $2.02), Constellation Brands (2.17), Global Payments (1.10), Yum China Holdings (0.56).
U.S. IPO's scheduled to price today: Switch (SWCH).
Equity conferences this week: Petaluma Area Chamber of Commerce Business Conference on Fri.
OVERNIGHT U.S. STOCK MOVERS
Microsoft (MSFT +0.58%) was upgraded to 'Buy' from 'Hold' at Canaccord Genuity with a price target of $86.
United Parcel Service (UPS -0.59%) and FedEx (FDX -0.75%) are both down over 2% in pre-market trading after Bloomberg News reported that Amazon.com is currently testing its own delivery service.
Norwegian Cruise Line Holdings Ltd (NCLH +2.28%) jumped 7% in after-hours trading after it was announced that it will replace Level 3 in the S&P 500 before the open of trading on Friday, Oct 13.
Mallinckrodt (MNK -0.61%) was downgraded to 'Hold' from 'Buy' at Canaccord Genuity.
ACADIA Pharmaceuticals (ACAD +0.72%) rallied over 5% in after-hours trading after the FDA granted 'Breakthrough Therapy Designation' to its Pimavanserin for the treatment of hallucinations and delusions associated with dementia-related psychosis.
Zumiez (ZUMZ -1.56%) climbed almost 5% in after-hours trading after it reported September comparable sales were up +9.3%, better than consensus of +2.9%, and then raised guidance on Q3 net sales to $241 million-$243 million from a prior estimate of $236 million-$241 million.
Monsanto (MON +0.05%) was downgraded to 'Neutral' from 'Outperform' at Macquarie.
SeaWorld Entertainment (SEAS +4.60%) rose almost 4% in after-hours trading after Merlin Entertainment is said to have approached SeaWorld on a deal for part of the company.
Matador Resources (MTDR -1.26%) may open lower today after it announced that it had commenced an underwritten public offering of 8.0 million shares of its common stock.
8Point3 Energy Partners LP (CAFD +1.21%) lost almost 2% in after-hours trading after it said it sees Q4 revenue of $12 million-$15 million, the midpoint below consensus of $14.6 million.
ImmunoGen (IMGN +2.35%) dropped 8% in after-hours trading after it announced that it intends to offer 12 million shares of common stock in an underwritten public offering.
MobileIron (MOBL -2.60%) jumped over 9% in after-hours trading after holder Altai Capital reported a 7.63% stake in the company as of Oct 2.
Fairmont Santrol Holdings (FMSA -3.85%) rose 2% in after-hours trading after it was re-initiated an 'Overweight' rating at Keybanc Capital Markets with a price target of $6.50.
MARKET COMMENTS
Dec S&P 500 E-mini stock futures (ESZ17 +0.03%) this morning are up +0.25 points (+0.01%). Wednesday's closes: S&P 500 +0.12%, Dow Jones +0.09%, Nasdaq +0.06%. The S&P 500 on Wednesday posted a new record high and closed higher on the rise in the U.S. Sep ISM non-manufacturing index by +4.5 points to 59.8, stronger than expectations of +0.2 to 55.5 and the fastest pace of expansion in 12 years. Stocks were also supported by increased speculation that President Trump may select Jerome Powell over Kevin Warsh for Fed chairman, which may lead to easier monetary policy as Powell is seen as more dovish than Warsh.
Dec 10-year T-note prices (ZNZ17 +0.06%) this morning are up +2.5 ticks. Wednesday's closes: TYZ7 unch, FVZ7 unch. Dec 10-year T-notes on Wednesday closed little changed. T-note prices were undercut by the stronger-than-expected U.S. Sep ISM non-manufacturing index to a 12-year high and by reduced safe-haven demand with the rally in the S&P 500 to a new record high. T-note prices were supported by speculation that President Trump may be leaning toward Jerome Powell to replace Janet Yellen as Fed Chair, which is seen a supportive for T-notes since Powell is one of the more dovish choices for Fed Chair compared to other candidates.
The dollar index (DXY00 +0.16%) this morning is up +0.103 (+0.11%). EUR/USD (^EURUSD) is down -0.0015 (-0.13%) and USD/JPY (^USDJPY) is down -0.25 (-0.22%). Wednesday's closes: Dollar Index +0.039 (+0.04%), EUR/USD +0.0015 (+0.13%), USD/JPY -0.09 (-0.08%). The dollar index on Wednesday closed little changed. The dollar was supported by the jump in the U.S. Sep ISM non-manufacturing index to a 12-year high and by the increase in 10-year T-note yields, which boosts the dollar's interest rate differentials. The dollar was undercut by increased speculation that President Trump may select Jerome Powell over Kevin Warsh for Fed chairman, which would be negative for the dollar since Powell is seen as more dovish than Warsh.
Nov crude oil (CLX17 +0.34%) this morning is up +9 cents (+0.18%) and Nov gasoline (RBX17 +1.59%) is +0.0215 (+1.36%). Wednesday's closes: Nov WTI crude -0.44 (-0.87%), Nov gasoline +0.0150 (+0.96%). Nov crude oil and gasoline on Wednesday settled mixed. Crude oil prices found support on the -6.02 million bbl decline in EIA crude inventories (a much bigger decline than expectations of -500,000 bbl) and strong foreign demand for U.S. crude after U.S. crude exports rose +33% in the week of Sep 29 to a record 1.98 million bpd. Crude oil prices were undercut by the +0.1% increase in U.S. crude production in the week of Sep 29 to 9.561 million bpd, a new 2-year high, and by the +1.53 million bbl increase in crude supplies at Cushing, OK, delivery point of WTI crude futures.
Metals prices this morning are hogher with Dec gold (GCZ17 +0.29%) +4.3 (+0.34%), Dec silver (SIZ17 +0.28%) +0.071 (+0.43%) and Dec copper (HGZ17 +0.74%) +0.022 (+0.73%). Wednesday's closes: Dec gold +2.2 (+0.17%), Dec silver -0.026(-0.16%), Dec copper -0.0045 (-0.15%). Metals on Wednesday settled mixed. Metals prices found support on increased safe-haven demand for precious metals on political tensions in Spain where the state of Catalonia wants to secede from Spain and form its own independent republic. Metals prices were also boosted by the increase in the U.S. Sep ISM non-manufacturing index to a 12-year high, a sign of economic strength that is positive for industrial metals demand. Metals prices were undercut by the rally in the S&P 500 to a new record high, which reduced the safe-haven demand for precious metals.
GLOBAL EVENT CALENDAR10/05/2017
Thursday, Oct 5
US0730 ETSep Challenger job cuts, Aug +5.1% y/y.
0830 ETWeekly initial unemployment claims expected -7,000 to 265,000, previous +12,000 to 272,000. Weekly continuing claims expected +16,000 to 1.950 million, previous -45,000 to 1.934 million.
0830 ETAug trade balance expected -$42.7 billion, Jul -$43.7 billion.
0830 ETUSDA weekly Export Sales.
0910 ETFed Governor Jerome Powell speaks on Treasury markets and Treasury market practices at an event in New York.
0915 ETSan Francisco Fed President John Williams (non-voter) delivers keynote speech at the St. Louis Feds Community Banking in the 21st Century Research and Policy Conference.
1000 ETAug factory orders expected +1.0%, Jul -3.3% and +0.5% ex transportation.
1000 ETPhiladelphia Fed President Patrick Harker (voter) speaks at the Investing in Americas Workforce conference.
1100 ETTreasury announces amount of 3-year T-notes (previous $24 billion), 10-year T-notes (previous $20 billion) and 30-year T-bonds (previous $12 billion) to be auctioned Oct 11-12.
1630 ETKansas City Fed President Esther George (non-voter) speaks at the Investing in Americas Workforce conference.
Friday, Oct 6
US0830 ETSep non-farm payrolls expected +80,000, Aug +156,000. Sep private payrolls expected +74,000, Aug +165,000. Sep manufacturing payrolls expected +8,000, Aug +36,000. Sep unemployment rate expected unch at 4.4%, Aug +0.1 to 4.4%.
0830 ETSep avg hourly earnings expected +0.3% m/m and +2.5% y/y, Aug +0.1% m/m and +2.5% y/y. Sep avg weekly hours all-employees expected unch at 34.4 hours, Aug -0.1 to 34.4 hours.
0915 ETAtlanta Fed President Raphael Bostic (non-voter) speaks at the Investing in Americas Workforce conference.
1000 ETAug wholesale trade sales expected unch m/m, Jul -0.1% m/m. Revised Aug wholesale inventories expected unchanged at +1.0%, prelim-Aug +1.0% m/m.
1215 ETNew York Fed President William Dudley (voter)will deliver a speech on The Monetary Policy Outlook and the Importance of Higher Education for Economic Mobility at an event in New York.
1245 ETDallas Fed President Robert Kaplan (voter) speaks in a moderated Q&A at an Investing in Americas Workforce conference in Dallas.
1500 ETAug consumer credit expected +$15.54 billion, Jul +$18.499 billion.
U.S. STOCK CALENDAR10/05/2017
NameTickerTimeDescriptionPeriodEstimate
Constellation Brands IncSTZ USBef-mktQ2 2018 Earnings ReleaseQ2 182.166
Leucadia National CorpLUK US08:30Investor Meeting
Clorox Co/TheCLX US09:00Analyst Day
Constellation Brands IncSTZ US10:30Q2 2018 Earnings CallQ2 18
Telephone & Data Systems IncTDS USRoadshow - Day 4
United States Cellular CorpUSM USRoadshow - Day 4
RPM International IncRPM USAnnual General Meeting
Global Payments IncGPN USQ3 2017 Earnings ReleaseQ3 171.098
Leucadia National CorpLUK USInvestor Day
Symantec CorpSYMC US12:00Annual General Meeting
Oracle CorpORCL US14:00Analyst Meeting
Costco Wholesale CorpCOST US16:15Q4 2017 Earnings ReleaseQ4 172.017
Yum China Holdings IncYUMC US16:30Q3 2017 Earnings ReleaseQ3 170.564
Costco Wholesale CorpCOST US17:00Q4 2017 Earnings CallQ4 17
Yum China Holdings IncYUMC US20:00Q3 2017 Earnings CallQ3 17

Thursday, January 5, 2017

Morning Call 1/5

Barchart Morning Call

OVERNIGHT MARKETS AND NEWS
Mar E-mini S&Ps (ESH17 -0.20%) are down -0.03% and European stocks are up +0.14%. U.S. stock futures are being dragged lower by weakness in retailers with Kohl’s down 13% and Macy's down 10% in pre-market trading after both companies cut their 2017 EPS forecasts. Losses were limited as energy producers rose with Feb WTI crude oil (CLG17 +0.79%) up +0.94% after the API reported late Wednesday that U.S. crude supplies fell -7.43 million bbl last week. Feb COMEX gold (GCG17 +0.82%) is up +0.64% at a 3-week high and the German 10-year bund yield climbed to a 2-week high on increased price pressures after Eurozone Nov producer prices posted their first year-on-year increase in more than 3 years. Asian stocks settled mixed: Japan -0.37%, Hong Kong +1.46%, China +0.21%, Taiwan +0.77%, Australia +0.30%, Singapore +1.12%, South Korea -0.43%, India +0.92%. Japan's Nikkei Stock Index closed lower as exporter stocks sold-off after USD/JPY fell to a 3-week low, which reduces exporters' earnings prospects. China's Shanghai Composite climbed to a 3-week high on signs of strength in the Chinese economy after a gauge of growth in the service sector last month expanded at the fastest pace in 17 months.
The dollar index (DXY00 -0.43%) is down -0.31% at a 3-week low. EUR/USD (^EURUSD) is up +0.07%. USD/JPY (^USDJPY) is down -0.43% at a 3-week low.
Mar 10-year T-note prices (ZNH17 +0.13%) are up +3.5 ticks at a 3-week high.
The China Dec Caixin services PMI rose +0.3 to 53.4, the fastest pace of expansion in 17 months.
Eurozone Nov PPI unexpectedly rose +0.1% y/y, stronger than expectations of -0.1% y/y and the first year-on-year increase in 3-1/3 years.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) Dec Challenger job cuts (Nov -13.0% y/y), (2) Dec ADP employment (expected +175,000, Nov +216,000), (3) weekly initial unemployment claims (expected -5,000 to 260,000, previous -10,000 to 265,000) and continuing claims (expected -51,000 to 2.051 million, previous +63,000 to 2.102 million), (4) revised Dec Markit services PMI (prelim-Dec -1.2 to 53.4), (5) Dec ISM non-manufacturing index (expected -0.5 to 56.7, Nov +2.4 to 57.2), (6) EIA Weekly Petroleum Status Report.
Russell 1000 earnings reports today include: Monsanto (consensus $0.02), Walgreens (1.09), Constellation Brands (1.72), RPM International (0.61).
U.S. IPO's scheduled to price today: none.
Equity conferences this week include: Citi Global Internet, Media and Telecommunications Conference on Tue-Thu, Goldman Sachs CEOs Unplugged Conference on Thu, J.P. Morgan CES Tech Forum on Thu, JP Morgan Chase & Co., Inc. International Tech Forum on Thu.
OVERNIGHT U.S. STOCK MOVERS
Macy's (M +1.73%) sank almost 10% in pre-market trading after it cut its 2017 EPS forecast to $2.95-$3.10 from a prior view of $3.15-$3.40 and said it plans to close 68 stores and cut 6,200 jobs.
Kohl's (KSS +4.22%) tumbled over 13% in pre-market trading after it said comparable same-store sales fell -2.1% y/y in the fiscal months of November and December combined, and then it cut its 2017 adjusted EPS forecast to $3.60-$3.65 from a November 10 estimate of $3.80-$4.00.
Adobe Systems (ADBE +0.64%) was rated a new 'Outperform' at BMO Capital Markets with a target price of $125.
McKesson (MCK +0.78%) was downgraded to 'Neutral' from 'Overweight' at JPMorgan Chase with an 18-month target price of $169.
Helix Energy Solutions Group (HLX +3.53%) sank 10% in after-hours trading after it proposed an offering of 21 million shares of common stock.
Buffalo Wild Wings (BWLD +1.32%) was downgraded to 'Neutral' from 'Outperform' at Wedbush with a price target of $155.
Mistras Group (MG +2.41%) slumped 10% in after-hours trading after it reported Q2 EPS of 26 cents, below consensus of 31 cents.
Kilroy Realty (KRC +1.48%) slid 3% in after-hours trading after it commenced an offering of 3.5 million shares of common stock.
Hudson Pacific Properties (HPP +1.23%) lost 1% in after-hours trading after holders offered 18.7 million shares of stock.
Alexion Pharmaceuticals (ALXN +3.65%) rallied over 3% in after-hours trading after a board audit committee concluded that it sees no need to restate financial results after investigating a claim made by a former employee about Soliris sales and practices.
Moelis (MC +2.65%) fell 4% in after-hours trading after it offered 5 million shares of Class A common stock.
Heron Therapeutics (HRTX +2.99%) dropped nearly 10% in after-hours trading after it forecast 2017 sales of its Sustol nausea treatment drug at $15 million to $25 million, well below consensus of $50 million.
Synergy Pharmaceuticals (SGYP +6.88%) climbed 3% in after-hours trading after it was rated a new 'Outperform' at Oppenheimer with a price target of $10.
Loxo Oncology (LOXO +5.28%) fell over 3% in after-hours trading after it proposed a public offering of common stock, although no amount or size was given.
MARKET COMMENTS
Mar E-mini S&Ps (ESH17 -0.20%) this morning are down -0.75 of a point (-0.03%). Wednesday's closes: S&P 500 +0.57%, Dow Jones +0.30%, Nasdaq +0.53%. The S&P 500 on Wednesday closed higher on strength in mining stocks after the price of copper rose +2.7% to a 2-week high and on strength in oil companies after the price of crude oil climbed +1.78%. Auto makers also saw strength after U.S. Dec auto sales soared to 18.29 million units, stronger than expectations of 17.70 million and the most in 11-1/3 years.
Mar 10-year T-notes (ZNH17 +0.13%) this morning are yp +3.5 ticks at a 3-week high. Wednesday's closes: TYH7 unch, FVH7 -0.50. Mar 10-year T-notes on Wednesday closed little changed. T-notes were undercut by weakness in German bunds on increased price pressures after the Eurozone Dec CPI rose more than expected. T-notes recovered their losses after the Dec 13-14 FOMC minutes said that most FOMC policy makers saw a gradual rate hike pace as "appropriate."
The dollar index (DXY00 -0.43%) this morning is down -0.32 (-0.31%) at a 3-week low. EUR/USD (^EURUSD) is up +0.0007 (+0.07%). USD/JPY (^USDJPY) is down -0.51 (-0.43%) at a 3-week low. Wednesday's closes: Dollar index -0.680 (-0.66%), EUR/USD +0.0084 (+0.81%), USD/JPY -0.50 (-0.42%). The dollar index on Wednesday closed lower on strength in EUR/USD after Eurozone Dec CPI rose +1.1% y/y, stronger than expectations of +1.0% y/y and the largest increase in 3-1/4 years, which dampened expectations that the ECB will expand stimulus measures. The dollar was also undercut by the comment in the Dec 13-14 FOMC meeting minutes that most FOMC members saw a gradual rate hike pace as "appropriate."
Feb WTI crude oil prices (CLG17 +0.79%) this morning are up +50 cents (+0.94%) and Feb gasoline (RBG17 -0.13%) is +0.0006 (+0.04%). Wednesday's closes: Feb crude +0.93 (+1.78%), Feb gasoline +0.0170 (+1.05%). Feb crude oil and gasoline on Wednesday closed higher on a weaker dollar and expectations for Thursday's weekly EIA crude inventories to fall -2.00 million bbl.
GLOBAL EVENT CALENDAR01/05/2017
Thursday, Jan 5
US0730 ETDec Challenger job cuts, Nov -13.0% y/y.
0815 ETDec ADP employment change expected +175,000, Nov +216,000.
0830 ETWeekly initial unemployment claims expected -5,000 to 260,000, previous -10,000 to 265,000. Weekly continuing claims expected -51,000 to 2.051 million, previous +63,000 to 2.102 million.
0945 ETRevised Dec Markit services PMI, prelim-Dec -1.2 to 53.4.
1000 ETDec ISM non-manufacturing index expected -0.5 to 56.7, Nov +2.4 to 57.2.
1100 ETEIA Weekly Petroleum Status Report.
1100 ETTreasury announces amount of 3-year T-notes (previous $24 billion), 10-year T-notes (previous $20 billion) and 30-year T-bonds (previous $12 billion) to be auctioned Jan 10-12.
Friday, Jan 6
US0830 ETDec non-farm payrolls expected +180,000, Nov +178,000. Dec private payrolls expected +170,000, Nov +156,000. Dec manufacturing payrolls expected unch, Nov -4,000. Dec unemployment rate expected +0.1 to 4.7%, Nov -0.3 to 4.6%.
0830 ETDec avg hourly earnings expected +0.3% m/m and +2.8% y/y, Nov -0.1% m/m and +2.5% y/y. Dec avg weekly hours all-employees expected unch at 34.4 hours, Nov unch at 34.4 hours.
0830 ETNov trade balance expected -$44.7 billion, Oct -$42.6 billion.
0830 ETUSDA weekly Export Sales.
1000 ETNov factory orders expected -2.3%, Dec +2.7% and +0.8% ex transportation.
1215 ETChicago Fed President Charles Evans (voter) participates in a NABE and AEA panel discussion titled Responders of First or Last Resort: Central Bank Strategies in an Era of Ultra-Low Interest Rates.
1300 ETRichmond Fed President Jeffrey Lacker (non-voter) speaks at the Maryland Bankers Associations Economic Outlook Forum.
U.S. STOCK CALENDAR01/05/2017
CompanyTickerTimeEvent DescriptionPeriodEstimate
RPM International IncRPM USBef-mktQ2 2017 Earnings ReleaseQ2 20170.605
Constellation Brands IncSTZ USBef-mktQ3 2017 Earnings ReleaseQ3 20171.718
Walgreens Boots Alliance IncWBA US7:00Q1 2017 Earnings ReleaseQ1 20171.093
L Brands IncLB US7:30December 2016 Sales and Revenue Call2016
Monsanto CoMON US8:00Q1 2017 Earnings ReleaseQ1 20170.017
Walgreens Boots Alliance IncWBA US8:30Q1 2017 Earnings CallQ1 2017
Ionis Pharmaceuticals IncIONS US9:30IONIS-GCGR Rx Phase 2 Study Results Call
Monsanto CoMON US9:30Q1 2017 Earnings CallQ1 2017
RPM International IncRPM US10:00Q2 2017 Earnings CallQ2 2017
Constellation Brands IncSTZ US10:30Q3 2017 Earnings CallQ3 2017
Gap Inc/TheGPS US16:15December 2016 Sales and Revenue Release2016
L Brands IncLB USDecember 2016 Sales and Revenue Release2016