Showing posts with label NEOS. Show all posts
Showing posts with label NEOS. Show all posts

Monday, September 18, 2017

Morning Call 9/18

Morning Call

Barchart Morning Call


OVERNIGHT MARKETS AND NEWS
Dec E-mini S&Ps (ESZ17 +0.18%) this morning are up +0.22% at a new record nearest-futures high and European stocks are up +0.38% at a 2-month high. Increased M&A activity is giving equity markets a boost after Northrop Grumman agreed to buy Orbital ATK for $7.8 billion. European stocks found support on an upbeat monthly report from the Bundesbank that said, "the German economy may continue its path of strong expansion in Q3 of 2017." The rally in global equity markets has reduced the safe-haven demand for gold with Dec COMEX gold (GCZ17 -0.48%) down -0.48%at a 2-week low. Asian stocks settled mostly higher: Japan closed for holiday, Hong Kong +1.27%, China +0.28%, Taiwan +0.48%, Australia +0.45%, Singapore +1.01%, South Korea +1.67%, India +0.47%. Chinese stocks rose, led by gains in developers and property stocks, on the prospects of less property restrictions after China Aug new home prices showed the smallest amount of increases since Jan.
The dollar index (DXY00 -0.03%) is down -0.02%. EUR/USD (^EURUSD) is up +0.19%. USD/JPY (^USDJPY) is up +0.37% at a 1-1/2 month high.
Dec 10-year T-note prices (ZNZ17 -0.06%) are down -2.5 ticks.
In its monthly report for Sep, the Bundesbank said, "the German economy may continue its path of strong expansion in Q3 of 2017, even if with slightly less momentum than in the first half of the year."
China Aug new home prices rose in 46 of 70 cities tracked by the government, down from 56 cities that rose in Jul, the smallest number of increases since Jan.

U.S. STOCK PREVIEW
Key U.S. news today includes: (1) Sep NAHB housing market index (expected -1 to 67, Aug +4 to 68), (2) USDA weekly grain export inspections, (3) USDA crop conditions and progress report.
Notable Russell 1000 earnings reports today include: none.
U.S. IPO's scheduled to price today: none.
Equity conferences this week: Stephens Bank CEO Forum on Mon-Tue, CECP CEO Investor Forum on Tue, Forum International Supply Chain Expo on Tue, J.P. Morgan U.S. All Stars Conference on Tue, Raymond James North America Equities Conference on Tue, D.A. Davidson Engineering & Construction Conference on Wed, Electronic Design Process Symposium on Thu.

OVERNIGHT U.S. STOCK MOVERS
Orbital ATK (OA +1.52%) surged 20% in pre-market trading after the company was acquired by Northrop Grumman for $7.8 billion, or $134.50 a share.
Tech Data (TECD +1.09%) was initiated a new 'Buy' at Needham & Co. with a 12-month target price of $100.
Caterpillar (CAT +0.74%) was upgraded to 'Buy' from 'Neutral' at UBS with a price target of $140.
Resolute Energy (REN +9.21%) was downgraded to 'Market Perform' from 'Outperform' at BMO Capital Markets.
Finish Line (FINL +2.84%) was downgraded to 'Underweight' from 'Neutral' with a 12-month target price of $8.
Applied Materials (AMAT +0.19%) was upgraded to 'Outperform' from 'Sector Perform' at RBC Capital Markets with a target price of $55.
Brookfield Infrastructure Partners LP (BIP +0.07%) rose over 2% in after-hours trading after Exame reported that it is weighing a possible bid for JBS SA, the world's largest meat producer
Weibo (WB -0.81%) lost -0.3% in after-hours trading after Chief Financial Officer Herman Yu resigned to "pursue other opportunities."
Horizon Pharma (HZNP -1.46%) gained almost 1% in after-hours trading after Reuters reported that people familiar with the situation said the company was working with Morgan Stanley to review strategic options for its primary care unit, including a potential sale.
Equifax (EFX -3.81%) said its Chief Information Officer David Webb and Chief Security Officer Susan Mauldin are retiring effective immediately.
Neos Therapeutics (NEOS +2.22%) rose over 3% but then reversed course and dropped 6% in after-hours trading. The stock rallied initially after it received FDA approval for its Adzenys ER drug for treatment of Attention Deficit Hyperactivity Disorder in patients 6 years and older. However, the stock erased its gains and headed lower after a BMO Capital Markets analyst said there may be some "financing overhang" on the stock as the company may need additional funding in the future to get to breakeven.

MARKET COMMENTS
Dec S&P 500 E-mini stock futures (ESZ17 +0.18%) this morning are up +5.50 points (+0.22%) at a new record-nearest-futures high. Friday's closes: S&P 500 +0.18%, Dow Jones +0.29%, Nasdaq +0.32%. The S&P 500 on Friday rose to a new all-time high and closed higher on strength in technology stocks and on the stronger-than-expected Sep Empire manufacturing index of -0.8 to 24.4 (stronger than expectations of -7.2 to 18.0). There was also technical buying with the new all-time high. Stocks were undercut by geopolitical tensions after North Korea fired another missile over Japan and by the unexpected -0.2% decline in the U.S. Aug retail sales report (vs expectations of +0.1%).
Dec 10-year T-note prices (ZNZ17 -0.06%) this morning are down -2.5 ticks. Friday's closes: TYZ7 -3.00, FVZ7 -2.75. Dec 10-year T-notes on Friday closed lower on negative carry-over from a rise in global yields after the 10-year UK Gilt yield rose to a 7-1/4 month high and the German bund yield climbed to a 1-month high. There was also reduced safe-haven demand for T-notes after the S&P 500 rose to a new record high. T-notes were supported by the unexpected declines in U.S Aug retail sales and Aug manufacturing production.
The dollar index (DXY00 -0.03%) this morning is down -0.014 (-0.02%). EUR/USD (^EURUSD) is up +0.0023 (+0.19%) and USD/JPY (^USDJPY) is up +0.41 (+0.37%) at a 1-1/2 month high. Friday's closes: Dollar Index -0.252 (-0.27), EUR/USD +0.0026 (+0.22%), USD/JPY +0.59 (+0.54%). The dollar index on Friday closed lower on the weaker-than-expected U.S. Aug retail sales and manufacturing production reports, which were dovish for Fed policy. There was also strength in GBP/USD which soared to a 14-1/2 month high on carry-over from Thursday's BOE meeting where the BOE said it sees scope for stimulus reduction in the coming months.
Oct crude oil (CLV17 -0.54%) this morning is down -7 cents (-0.14%) and Oct gasoline (RBV17 -0.26%) is +0.0021 (+0.13%). Friday's closes: Oct WTI crude unch, Oct gasoline +0.0330 (+2.03%). Oct crude oil and gasoline on Friday settled mixed. Crude oil prices were supported by the weaker dollar and by an increase in the crack spread for the first time in the last 3 sessions, which may boost refinery demand for crude to refine into gasoline. Crude oil prices were undercut by the weaker-than-expected U.S. Aug retail sales and manufacturing production reports, which signaled reduced energy demand.
Metals prices this morning are mixed with Dec gold (GCZ17 -0.48%) -6.3 (-0.48%) at a 2-week low, Dec silver (SIZ17-0.71%) -0.121 (-0.68%) at a 2-week low and Dec copper (HGZ17 +0.76%) +0.022 (+0.75%). Friday's closes: Dec gold -4.1(-0.31%), Dec silver -0.088 (-0.49%), Dec copper -0.0085 (-0.29%). Metals on Friday closed lower with Dec copper at a 1-month low. Metals prices were undercut by the rally in the S&P 500 to a new record high, which curbed safe-haven demand for precious metals, and by the unexpected decline in U.S. Aug manufacturing production, which signals reduced demand for industrial metals.

GLOBAL EVENT CALENDAR09/18/2017
Monday, Sep 18
US1000 ETSep NAHB housing market index expected -1 to 67, Aug +4 to 68.
1100 ETUSDA weekly grain export inspections.
1600 ETUSDA crop conditions and progress report.
Tuesday, Sep 19
US0830 ETAug housing starts expected +1.7% to 1.175 million, Jul -4.8% to 1.155 million. Aug building permits expected -0.8%to 1.220 million, Jul -3.5% to 1.230 million.
0830 ETAug import price index expected +0.4% m/m and +2.2%, July +0.1% m/m and +1.5% y/y. Aug import price index ex-petroleum expected +0.2%, July unchanged. Aug export price index expected +0.2% m/m, Jul +0.4% m/m and +0.8% y/y.
0830 ETQ2 current account balance expected -$112.4 billion, Q1 -$116.8 billion
1030 ETEIA Weekly Petroleum Status Report.
1030 ETFOMC begins 2-day policy meeting.

U.S. STOCK CALENDAR09/18/2017

NameTickerTimeDescriptionPeriodEstimate
Patterson Cos IncPDCO USAnnual General Meeting

Friday, February 3, 2017

MORNING CALL 2/3

Barchart Morning Call

OVERNIGHT MARKETS AND NEWS
Mar E-mini S&Ps (ESH17 +0.16%) are up +0.15% and European stocks are up +0.63% ahead of this morning's U.S. payroll report that may provide clues as to the timing of the next Fed rate hike. Mar WTI crude oil (CLH17 +0.19%) is up +0.50% and is giving energy producing stocks a lift after President Trump tweeted this morning that Iran was "playing with fire" following its ballistic missile test this week. European stocks also found support after the Eurozone Jan Markit composite PMI was revised upward to its fastest pace in 3 years. Gains in stocks were contained as mining companies weakened as Mar COMEX copper prices (HGH17 -1.06%) fell -0.89% after a gauge of Chinese manufacturing activity weakened more than expected last month, and after Chinese copper supplies rose after weekly Shanghai copper inventories climbed +10,928 MT to 223,853 MT, an 8-1/2 month high. Asian stocks settled mixed: Japan +0.02%, Hong Kong -0.24%, China -0.60%, Taiwan +0.28%, Australia -0.42%, Singapore -0.07%, South Korea +0.13%, India +0.05%.
The dollar index (DXY00 +0.28%) is up +0.33%. EUR/USD (^EURUSD) is down -0.26% after ECB Executive Board member Praet said "the firming recovery is not yet sufficiently robust to ensure a self-sustained convergence of inflation rates to levels closer to 2%." USD/JPY (^USDJPY) is up +0.33%.
Mar 10-year T-note prices (ZNH17 -0.11%) are down -5.5 ticks.
ECB Executive Board member Praet said that "the firming recovery is not yet sufficiently robust to ensure a self-sustained convergence of inflation rates to levels closer to 2% as underlying inflation dynamics remain subdued, and risks and uncertainties still prevail, especially those related to the geopolitical environment."
The Eurozone Jan Markit composite PMI was revised upward to 54.4 from the originally reported 54.3, the fastest pace of expansion since the data series began in 2014.
The China Jan Caixin (flash) manufacturing PMI fell -0.9 to 51.0, weaker than expectations of -0.1 to 51.8.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) Jan non-farm payrolls (expected +175,000, Dec +156,000) and Jan unemployment rate (expected unch at 4.7%, Dec +0.1 to 4.7%), (2) Chicago Fed President Charles Evans (voter) speaks on economic conditions and monetary policy at a Prairie State College Economic Breakfast in Olympia Fields, IL, (3) revised Jan Markit services PMI (prelim-Jan +1.2 to 55.1), (4) Jan ISM non-manufacturing PMI (expected +0.4 to 57.0, Dec +0.4 to 56.6), (5) Dec factory orders expected +0.7%, Nov -2.4% and +0.1% ex-transportation.
Notable S&P 500 earnings reports today include: Weyerhaeuser (consensus $0.16), AutoNation (0.96), LyondellBasell (2.17), Clorox (1.22), Hershey (1.08), Phillips (0.40).
U.S. IPO's scheduled to price today: none.
Equity conferences: none.
OVERNIGHT U.S. STOCK MOVERS
Visa (V -0.17%) rose 3% in after-hours trading after it reported Q1 operating revenue of $4.5 billion, above consensus of $4.3 billion, and then was initiated with an 'Outperform' at RBC Capital Markets with a 12-month target price of $97.
Amazon.com (AMZN +0.91%) fell 4% in after-hours trading after it reported Q4 net sales of $43.7 billion, below consensus of $44.7 billion, and said it sees Q1 net sales of $33.3 billion-$35.8 billion, less than consensus of $36.0 billion.
Esterline Technologies (ESL +0.70%) rallied over 4% in after-hours trading after it reported Q1 adjusted EPS continuing operations of 82 cents, well above consensus of 46 cents.
Tableau Software (DATA -0.52%) surged 13% in after-hours trading after it reported Q4 revenue of $250.7 million, well above consensus of $230.2 million.
Amgen (AMGN -0.06%) rose nearly 3% in after-hours trading after it reported that a Phase 3 trial of its Repatha showed significantly reduced risk of cardiovascular events in patients with atherosclerotic cardiovascular disease.
Computer Sciences (CSC +1.12%) gained 2% in after-hours trading after it reported Q3 adjusted EPS continuing operations of 81 cents, higher than consensus of 70 cents.
Fortinet (FTNT +0.24%) climbed 10% in after-hours trading after it forecast full-year EPS of 87 cents-89 cents, better than consensus of 80 cents.
Cypress Semiconductor (CY -1.58%) rallied 5% in after-hours trading after it reported Q4 adjusted revenue of $530.2 million, higher than consensus of $525.6 million.
athenahealth (ATHN +1.41%) tumbled 7% in after-hours trading after it reported Q4 revenue of $288.2 million, below consensus of $303.7 million.
Hanesbrands (HBI -2.24%) sank over 10% in after-hours trading after it said it sees 2017 adjusted EPS of $1.93-$2.03, below consensus of $2.14.
GoPro (GPRO +3.78%) tumbled 13% in after-hours trading after it said it sees Q1 revenue of $190 million=-$210 million, well below consensus of $267.6 million.
Paylocity Holding (PCTY -1.32%) jumped 8% in after-hours trading after it said it sees fiscal 2017 adjusted EPS of 41 cents-43 cents, stronger than consensus of 38 cents.
Deckers Outdoor (DECK -2.30%) plunged over 20% in after-hours trading after it reported Q3 adjusted EPS of $4.11, below consensus of $4.22, and then cut its 2017 adjusted EPS forecast to $3.45-$3.55 from a prior view of $4.05-$4.25.
Neos Therapeutics (NEOS unch) slumped 14% in after-hours trading after it announced an offering of common stock, although no size was given.
MARKET COMMENTS
Mar E-mini S&Ps (ESH17 +0.16%) this morning are up +3.50 points (+0.15%). Thursday's closes: S&P 500 +0.06%, Dow Jones -0.03%, Nasdaq -0.10%. The S&P 500 on Thursday closed slightly higher on the -14,000 decline in U.S. weekly jobless claims (a bigger decline than expectations of -9,000) and the +1.3% increase in U.S. Q4 non-farm productivity (better than expectations of +1.0%). Stocks were undercut by uncertainty regarding the Trump administration’s fiscal and trade policies and by position squaring ahead of Friday's monthly U.S. payrolls report.
Mar 10-year T-notes (ZNH17 -0.11%) this morning are down -5.5 ticks. Thursday's closes: TYH7 +1.50, FVH7 +1.00. Mar 10-year T-notes on Thursday rallied to a 1-week high and closed higher on positive carry-over from Wednesday's post-FOMC meeting statement where policy makers gave no signal as to the timing of another interest rate hike.
The dollar index (DXY00 +0.28%) this morning is up +0.33 (+0.33%). EUR/USD (^EURUSD) is down -0.0028 (-0.26%). USD/JPY (^USDJPY) is up +0.37 (+0.33%). Thursday's closes: Dollar index +0.149 (+0.15%), EUR/USD -0.0010 (-0.09%), USD/JPY -0.45 (-0.40%). The dollar index on Thursday recovered from a 2-1/2 month low and closed higher on the larger-than-expected decline in U.S. weekly initial unemployment claims, a sign of labor market strength, and the larger-than-expected increase in U.S. Q4 non-farm productivity. The dollar index posted an early 2-1/2 month low on negative carry-over from Wednesday's FOMC meeting where policy makers failed to signal the timing of the next Fed interest rate increase.
Mar WTI crude oil prices (CLH17 +0.19%) this morning are up +27 cents (+0.50%) and Mar gasoline (RBH17 -0.11%) is +0.0063 (+0.41%). Thursday's closes: Mar crude -0.34 (-0.63%), Mar gasoline -0.0462 (-2.93%). Mar crude oil and gasoline on Thursday closed lower on concern that ramped-up oil production in Libya and Nigeria may offset cuts in crude production from other OPEC members as Libya's crude output rose to 690,000 bpd, a 2-year high, and Nigerian Jan crude production rose to 1.64 million bpd, up +9.3% m/m. In addition, the slide in the crack spread to a 2-1/4 month low, which may curb refinery demand for crude.
GLOBAL EVENT CALENDAR02/03/2017
Friday, Feb 3
US0830 ETJan non-farm payrolls expected +175,000, Dec +156,000. Jan private payrolls expected +170,000, Dec +144,000. Jan manufacturing payrolls expected +5,000, Dec +17,000. Jan unemployment rate expected unch at 4.7%, Dec +0.1 to 4.7%.
0830 ETJan avg hourly earnings expected +0.3% m/m and +2.8% y/y, Dec +0.4% m/m and +2.9% y/y. Jan avg weekly hours all-employees expected unch at 34.3 hours, Dec unch at 34.3 hours.
0915 ETChicago Fed President Charles Evans (voter) speaks on economic conditions and monetary policy at a Prairie State College Economic Breakfast in Olympia Fields, IL.
0945 ETRevised Jan Markit services PMI, prelim-Jan +1.2 to 55.1.
1000 ETJan ISM non-manufacturing PMI expected +0.4 to 57.0, Dec +0.4 to 56.6.
1000 ETDec factory orders expected +0.7%, Nov -2.4% and +0.1% ex-transportation.
Monday, Feb 6
US1100 ETUSDA weekly grain export inspections.
1500 ETPhiladelphia Fed President Patrick Harker (voter) speaks at a payment conference in San Diego.
U.S. STOCK CALENDAR02/03/2017

CompanyTickerTimeEvent DescriptionPeriodEstimate
Weyerhaeuser CoWY USBf-mktQ4 2016 Earnings ReleaseQ4 20160.162
AutoNation IncAN USBf-mktQ4 2016 Earnings ReleaseQ4 20160.963
LyondellBasell Industries NVLYB USBf-mktQ4 2016 Earnings ReleaseQ4 20162.152
Clorox Co/TheCLX US6:30Q2 2017 Earnings ReleaseQ2 20171.219
Hershey Co/TheHSY US7:00Q4 2016 Earnings ReleaseQ4 20161.078
Phillips 66PSX US7:00Q4 2016 Earnings ReleaseQ4 20160.396
Hershey Co/TheHSY US8:30Q4 2016 Earnings CallQ4 2016
Hartford Financial ServicesHIG US9:00Q4 2016 Earnings CallQ4 2016
Kimco Realty CorpKIM US10:00Q4 2016 Earnings CallQ4 2016
Weyerhaeuser CoWY US10:00Q4 2016 Earnings CallQ4 2016
AutoNation IncAN US10:00Q4 2016 Earnings CallQ4 2016
LyondellBasell Industries NVLYB US11:00Q4 2016 Earnings CallQ4 2016
Phillips 66PSX US12:00Q4 2016 Earnings CallQ4 2016
Apartment Investment & MangAIV US13:00Q4 2016 Earnings CallQ4 2016
Clorox Co/TheCLX US13:30Q2 2017 Earnings CallQ2 2017
Essex Property Trust IncESS US14:00Q4 2016 Earnings CallQ4 2016