MORNING CALL 3/14

MORNING CALL

Monday, March 14th, 2016View Older Reports

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OVERNIGHT MARKETS AND NEWS

Jun E-mini S&Ps (ESM16 -0.21%)are down -0.15% as investors focus on the outcome of the Fed's 2-day policy meeting that begins tomorrow. Also, a-1.92% decline in crude oil prices has undercut energy producing stocks. European stocks are up +0.92% as a weak euro boosts automakers and as strength in copper prices lifts mining stocks with Glencore Plc and Anglo American Plc both up at least 4.5%. European stocks also found support on signs of strength in manufacturing activity after Eurozone Jan industrial production rose at the fastest pace in over 6 years. Asian stocks settled higher: Japan +1.74%, Hong Kong +1.17%, China +1.75%, Taiwan +0.48%, Australia +0.37%, Singapore +0.64%, South Korea +0.07%, India +0.35%. The Nikkei Stock Index climbed to a 1-1/4 month high after Japan Jan machine orders jumped +15.0% m/m, the largest increase in 12 years.

The dollar index (DXY00 +0.30%) is up +0.34%. EUR/USD (^EURUSD) is down -0.36%. USD/JPY (^USDJPY) is down -0.16%.

Jun T-note prices (ZNM16 -0.05%) are up +0.5 of a tick.

Japan Jan machine orders jumped +15.0% m/m, stronger than expectations of +1.9% m/m and the largest monthly increase in 12 years.

China Feb industrial production rose +5.4% y/y, weaker than expectations of +5.6% y/y and the slowest pace of increase in nearly 7 years.

China Feb retail sales rose +10.2% y/y, weaker than expectations of +11.0% y/y and the slowest pace of increase in 12 years.

Eurozone Jan industrial production rose +2.1% m/m, stronger than expectations of +1.7% m/m and the biggest increase in 6-1/3 years.

U.S. STOCK PREVIEW

Key U.S. news today includes: none.

There is 1 of the Russell 1000 companies that reports earnings today: 3D Systems (consensus $0.03).

U.S. IPO's scheduled to price today: BioLight Life Sciences (BOLT).

Equity conferences this week include: Citi Global Property CEO Conference on Mon-Wed, Bank of America Merrill Lynch Consumer & Retail Tech Conference on Tue-Wed, Barclays Emerging Payments Forum on Tue-Wed, Barclays Capital Global Health Care Conference on Tue-Thu,
3rd Annual Pharma Customer Experience Summit 2016 on Wed, Goldman Sachs Innovation Symposium on Wed, Bank of America Merrill Lynch Global Industrials & EU Autos Conference on Wed-Thu, Evercore ISI Retail Summit on Wed-Thu, ACI European Food & Beverage Plastic Packaging Conference on Thu, and Citigroup Retail Madness Conference on Thu.

OVERNIGHT U.S. STOCK MOVERS

Equinix (EQIX +3.68%) was downgraded to "market Perform' from 'Outperform' at Oppenheimer.

Noble Corp. Plc (NE +1.18%) was downgraded to 'Accumulate' from 'Buy' at Seaport Global Securities.

Starwood Hotels & Resorts (HOT +1.54%) received an unsolicited purchase proposal of $76 a share, a 7.9% premium to Friday's closing price.

Tesla Motors (TSLA +1.13%) is up 1.5% in pre-market trading after it was upgraded to 'Outperform' from 'Neutral' at Robert Baird Ltd with a 12-month price target of $300.

Cirrus Logic (CRUS +3.40%) was rated a new 'Buy" at Needham & Cp. with a 12-month price target of $50.

Rowan Cos. (RDC +4.11%) was upgraded to 'Buy' from 'Neutral' at Seaport Global Securities.

Epizyme (EPZM +3.93%) was upgraded to 'Buy' from 'Neutral' at HC Wainwright & Co, LLC with a 12-month price target of $25.

Quanex Building Products (NX +4.49%) was upgraded to 'Outperform' from 'Neutral' at Wedbush with a 12-month price target of $23.

Chemours (CC +2.84%) was upgraded to 'Buy' from 'Neutral' at Goldman Sachs.

Comerica (CMA +3.27%) was upgraded to 'Outperform' from 'Sell' at CLSA.

CyberArk Software Ltd. (CYBR +2.91%) was upgraded to a 'Buy' at Summit Research.

HCA Holdings (HCA +3.81%) was upgraded to 'Overweight" from 'Neutral' at JPMorgan Chase with a price target of $85.

Constellation Brands (STZ +1.11%) was upgraded to 'Buy' at SunTrust with a price target of $170.

Autoliv (ALV +2.39%) was downgraded to 'Sell' from 'Neutral' at Evercore.

MARKET COMMENTS

Jun E-mini S&Ps (ESM16 -0.21%) this morning are down -3.00 points (-0.15%). Friday's closes: S&P 500 +1.64%, Dow Jones +1.28%, Nasdaq +1.75%. The S&P 500 on Friday rallied to a 2-1/4 month high and closed higher on optimism that Thursday's ECB rate cut and QE expansion will boost European growth to the benefit of the global economy. Stocks also received a boost from energy producers, which rallied as crude oil climbed to a 3-month high. There was also carryover support for U.S. stocks from a rally in Asian markets after the yuan rose to a 2-1/2 month high against the dollar when the PBOC strengthened its daily reference rate for the yuan by 0.34%.

Jun 10-year T-notes (ZNM16 -0.05%) this morning are up +0.5 of a tick. Friday's closes: TYM6 -9.50, FVM6 -6.50. Jun T-notes on Friday fell to a 1-1/2 month low and closed lower on reduced safe-haven demand for T-notes after the S&P 500 rallied to a 2-month high and on the rally in crude oil to a 3-month high, which boosted inflation expectations.

The dollar index (DXY00 +0.30%) this morning is up +0.33 (+0.34%). EUR/USD (^EURUSD) is down -0.0040 (-0.36%). USD/JPY (^USDJPY) is down-0.18 (-0.16%). Friday's closes: Dollar Index +0.106 (+0.11%), EUR/USD -0.0021 (-0.19%), USD/JPY +0.67 (+0.59%). The dollar index on Friday closed higher on weakness in EUR/USD on negative carryover from Thursday's action by the ECB to cut interest rates and expand QE. USD/JPY also gained srength as a rally in stocks reduced safe-haven demand for the yen.

Apr WTI crude (CLJ16 -2.29%) this morning is down -74 cents (-1.92%) and Apr gasoline (RBJ16 -1.04%) is down -0.0107 (-0.74%). Friday's closes: CLJ6 +0.66 (+1.74%), RBJ6 +0.0053 (+0.37%). Apr crude and gasoline on Friday closed higher with Apr crude at a 3-month high on the IEA's cut in its 2016 non-OPEC crude production estimate to 750,000 bpd, down -150,000 from 900,000 bpd estimated last month. In addition, Baker Hughes reported late Friday that U.S. active oil rigs declined for a 12th straight week by -6 rigs to a 6-1/4 year low of 386 rigs.

GLOBAL EVENT CALENDAR03/14/2016

US	1100 ET	USDA weekly grain export inspections.
EUR	0600 ET	Eurozone Jan industrial production expected +1.7% m/m and +1.5% y/y, Dec -1.0% m/m and -1.3% y/y.
JPN	n/a	BOJ begins 2-day policy meeting.

U.S. STOCK CALENDAR03/14/2016

Company	Ticker	Time	Event Description	Period	Estimate
3D Systems Corp	DDD US	Bef-mkt	Q4 2015 Earnings Release	Q4 2015	0.028
3D Systems Corp	DDD US	8:30	Q4 2015 Earnings Call	Q4 2015
SS&C Technologies Holdings Inc	SSNC US	9:00	Acquisition of Citi's Alternative Investor Services Business by SS&C Technologi
Cooper Cos Inc/The	COO US		Annual General Meeting	Y 2016
Questar Corp	STR US		Roadshow - Chicago	Y 2016
Viacom Inc	VIAB US		Annual General Meeting
LPL Financial Holdings Inc	LPLA US		Roadshow-New York

MORNING CALL 3/8

MORNING CALL

Tuesday, March 8th, 2016View Older Reports

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OVERNIGHT MARKETS AND NEWS

March E-mini S&Ps (ESH16 -0.48%) are down -0.61% and European stocks are down -1.17% as a plunge in Chinese exports drags global stocks and commodity prices lower. Chinese trade data fueled economic concerns as Feb exports fell -25.4% y/y, the biggest decline in nearly 7 years, and as Feb imports fell for the 16th consecutive month. On the positive side for European stocks was the +3.3% m/m surge in German Jan industrial production, the largest increase in over 6 years. Asian stocks settled mixed: Japan -0.76%, Hong Kong -0.73%, China +0.14%, Taiwan +0.05%, Australia -0.68%, Singapore -1.58%, South Korea -0.74%, India +0.05%. China's Shanghai Composite erased losses in the final hour of trading and closed slightly higher on reports of stock buying by state-backed funds.

The dollar index (DXY00 +0.03%) is up +0.10%. EUR/USD (^EURUSD) is down -0.05%. USD/JPY (^USDJPY) is down -0.33%.

Jun T-note prices (ZNM16 +0.36%) are up +15 ticks on increased safe-haven demand as global stocks decline. T-notes also garnered support from a rally in Japanese government bonds as the yield on Japan's 30-year government bond fell to a record low of 0.468%.

German Jan industrial production Jumped +3.3% m/m, stronger than expectations of +0.5% m/m and largest increase in 6-1/3 years.

The China Feb trade balance shrank to a surplus of +$32.59 billion, smaller than expectations of +$51.00 billion and the smallest surplus in 11 months. Feb exports fell -25.4% y/y, weaker than expectations of -14.5% y/y and the largest decline in 6-3/4 years. Feb imports fell -13.8% y/y, weaker than expectations of -12.0% y/y.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) the Treasury auction of $24 billion of 3-year T-notes.

There are 3 of the Russell 1000 companies that reports earnings today: John Wiley (consensus $0.68), Dick's Sporting Goods (1.15), Blue Buffalo Pet Products (0.14).

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

Equity conferences this week include: Cowen and Company Health Care Conference on Mon-Tue, Deutsche Bank Media, Internet and Telecom Conference on Mon-Tue, Raymond James Institutional Investors Conference on Mon-Wed, Mitsubishi UFJ Securities: Oil & Gas Conference - New York on Tue, J.P. Morgan Aviation, Transportation & Industrials Conference on Tue-Wed, Piper Jaffray Technology Symposium on Tue-Wed, RBC Capital Markets Financial Institutions Conference on Tue-Wed, UBS Global Consumer Conference on Wed-Thu, JPMorgan Chase & Co., Inc Aviation, Transportation and Industrials Conference on Tue-Thu, J.P. Morgan Gaming, Lodging, Restaurant & Leisure Management Access Forum on Thu.

OVERNIGHT U.S. STOCK MOVERS

Starwood Hotels & Resorts Worldwide (HOT +0.64%) was downgraded to 'Sell' from 'Buy' at Argus.

Shake Shack (SHAK +0.57%) dropped over 9% in pre-market trading after it lowered its 2016 same-store-sales growth estimate to +2.5% to +3.0%, weaker than consensus of +3.1%.

Urban Outfitters (URBN +1.81%) jumped 10% in pre-market trading after it reported Q4 adjusted EPS of 61 cents, above consensus of 56 cents.

Fastenal (FAST +0.22%) was rated a new 'Buy' at Argus with a price target of $57.

Ilumina (ILMN +3.51%) lost almost 2% in after-hours trading after it announced that Chairman and CEO Jay Flatley will assume role of executive chairman and Francis Desouza will be appointed President and CEO on July 5.

Casey's General Stores (CASY -3.26%) reported Q3 EPS of 97 cents, better than consensus of 93 cents, although Q3 revenue of $1.57 billion was below consensus of $1.59 billion.

Quanex Building Products (NX +1.03%) reported a Q1 loss continuing operations of -2 cents, a narrower loss than consensus of -9 cents.

Actuant (ATU +2.70%) lowered guidance on Q2 preliminary revenue to $263 million, below a December forecast of $270 million-$280 million, and said it will record a net impairment charge of $170 million ($2.86 a share) due to "further weakening of near-term capital spending in the global oil and gas market."

ICF International (ICFI -0.96%) slid almost 2% in after-hours trading after it reported Q4 adjusted EPS of 73 cents, below consensus of 75 cents, and then lowered guidance on 2016 adjusted EPS to $2.79-$2.94, weaker than consensus of $3.00.

Thor Industries (THO +0.02%) gained over 4% in after-hours trading after it reported Q2 ongoing revenue of $975.1 million, above consensus of $910.3 million.

American Midstream Partners (AMID +2.88%) climbed over 2% in after-hours trading after it raised guidance on 2016 adjusted Ebitda to $105 million to $120 million, above consensus of $103.8 million.

MARKET COMMENTS

Mar E-mini S&Ps (ESH16 -0.48%) this morning are down -12.25 points (-0.61%). Monday's closes: S&P 500 +0.33%, Dow Jones +0.37%, Nasdaq +0.07%. The S&P 500 on Monday closed higher on strength in energy producers as crude oil rallied to a 2-month high and on expectations for the ECB to expand stimulus measures when it meets on Thursday. U.S. stocks were undercut by Chinese economic concerns after China's National People's Congress outlined a growth range of 6.5-7.0% for 2016, less than last year's growth rate of 6.9% and the slowest expansion in 26 years.

Jun 10-year T-notes (ZNM16 +0.36%) this morning are up +15 ticks. Monday's closes: TYM6 -5.50, FVM6 -6.00. Jun T-notes on Monday fell to a 5-week low and closed lower on negative carryover from Friday's strong U.S. Feb payroll report of +242,000 and by supply pressures as the Treasury auctions $56 billion of T-notes and T-bonds this week.

The dollar index (DXY00 +0.03%) this morning is up +0.095 (+0.10%). EUR/USD (^EURUSD) is down -0.0005 (-0.05%). USD/JPY (^USDJPY) is down-0.38 (-0.33%). Monday's closes: Dollar Index -0.269 (-0.28%), EUR/USD +0.0009 (+0.08%), USD/JPY -0.28 (-0.25%). The dollar index on Monday closed lower on comments from Fed Governor Brainard suggesting she favors the Fed delay an interest rate increase when she said the Fed should show "patience" in adjusting monetary policy in the face of China's slowdown, tighter financial conditions and softer inflation expectations. The dollar was also undercut by strength in petrocurrencies as the Canadian dollar rose to a 3-1/2 month high and the ruble climbed to a 2-month high after crude oil rallied to a 2-month high.

Apr WTI crude (CLJ16 -0.24%) this morning is down -16 cents (-0.42%) and Apr gasoline (RBJ16 +0.72%) is up +0.0050 (+0.36%). Monday's closes: CLJ6 +1.98 (+5.51%), RBJ6 +0.0606 (+4.55%). Apr crude oil and gasoline on Monday closed higher with Apr crude at a 2-month high and Apr gasoline at a 3-1/4 month high. Crude oil prices were boosted by the outlook for U.S. crude production to decline after Friday's data from Baker Hughes showed U.S. active oil rigs fell by 8 to a 6-1/4 year low of 392 in the week ended Mar 4. In addition, Russian Energy Minister Novak said that Russia will meet with key members of OPEC to discuss freezing crude output sometime between Mar 20 and Apr 1.

GLOBAL EVENT CALENDAR03/08/2016

US	1300 ET	Treasury auctions $24 billion 3-year T-notes.
JPN	0000 ET	Japan Feb consumer confidence index expected -0.3 to 42.2, Jan 42.5.
	0100 ET	Japan Feb eco watchers survey outlook expected -0.2 to 49.3, Jan 49.5. Feb eco watchers survey current expected +0.8 to 47.4, Jan 46.6.
GER	0200 ET	German Jan industrial production expected +0.5% m/m and -1.6% y/y, Dec -1.2% m/m and -1.2% y/y.
EUR	0500 ET	Revised Eurozone Q4 GDP, previous +0.3% q/q and +1.5% y/y.

U.S. STOCK CALENDAR03/08/2016

Company	Ticker	Time	Event Description	Period	Estimate
John Wiley & Sons Inc	JW/A US	Bef-mkt	Q3 2016 Earnings Release	Q3 2016	0.68
Dick's Sporting Goods Inc	DKS US	Bef-mkt	Q4 2016 Earnings Release	Q4 2016	1.153
Chevron Corp	CVX US	8:30	Analyst Meeting	Y 2016
Assurant Inc	AIZ US	9:00	Investor Day	Y 2016
FireEye Inc	FEYE US	9:00	Analyst Briefing	Y 2016
John Wiley & Sons Inc	JW/A US	10:00	Q3 2016 Earnings Call	Q3 2016
Dick's Sporting Goods Inc	DKS US	10:00	Q4 2016 Earnings Call	Q4 2016
American Homes 4 Rent	AMH US	11:00	Business Update Call
QUALCOMM Inc	QCOM US	12:30	Annual General Meeting	Y 2016
Blue Buffalo Pet Products Inc	BUFF US	Aft-mkt	Q4 2015 Earnings Release	Q4 2015	0.141
Joy Global Inc	JOY US		Annual General Meeting
Toll Brothers Inc	TOL US		Annual General Meeting	Y 2016

Barchart Morning Call 9/4

Barchart Morning Call

BC - Tue Sep 04, 7:00AM CDT

Overnight Developments

• Sep E-mini S&Ps this morning are slightly lower by -0.11% on lower European and Asian stocks and on nervousness heading into today's U.S. ISM manufacturing index, Thursday's ECB meeting, and Friday's U.S. unemployment report (Aug payrolls expected +125,000). Commodity prices this morning are up by an average +0.48% with Oct crude oil up +0.39%, Dec gold up +0.28%, Dec copper up +0.72%, and with agricultural prices trading mostly higher. The Euro Stoxx 50 index is down -0.20% today on Moody's cut in the EU rating outlook and on some long liquidation pressure after Monday's rally of +0.92%. The dollar index this morning is up +0.07% while EUR/USD is down -0.06%. Sep 10-year T-note prices are down -2.5 ticks.
• Asian stocks today closed mostly lower: Japan -0.10%, Hong Kong -0.66%, China -1.08%, Taiwan +0.01%, Australia -0.60%, Singapore -0.19%, South Korea -0.27%, India +0.32%, Turkey +0.05%.
• Moody's cut the outlook for the European Union's Aaa rating to negative from stable due to risks to Germany, France, and the Netherlands. Moody's said, "The creditworthiness of these member states is highly correlated, as they are all exposed, albeit to varying degrees, to the euro-area debt crisis."
• The 10-year Italian bond yield today is down 5 bp at 5.72% on reports that ECB President Draghi told an EU committee on Monday that the ECB's plan is to buy bonds with maturities up to 3 years. The ECB on Thursday is widely expected to announce the details of its bond buying plan. French President Hollande is scheduled to meet today in Rome with Italian Prime Minister Monti.
• The UK Aug PMI manufacturing index rose by 4.3 points to 49.5 from a revised 45.2 in July and was much stronger than market expectations for a report of 46.1.
• On Monday, Germany's Aug final PMI manufacturing index was revised lower by 0.4 points to 44.7 from the preliminary report of 45.1. Eurozone's Aug final PMI manufacturing index was revised 0.2 points lower to 45.1 from the preliminary report of 45.3.
• China's Aug manufacturing PMI report on Saturday from the China Federation of Logistics and Purchasing and the National Bureau of Statistics showed a sharp -0.9 point decline to 49.2, falling below the expansion-contraction level of 50.0 for the first time since November 2011. On Monday, China's manufacturing PMI from HSBC/Markit for August was revised 0.2 points lower to 47.6 from the flash report of 47.8. That put the PMI down sharply by 1.7 points from July. The manufacturing PMI reports were negative indicators for the Chinese economy but the markets took the reports to mean that Chinese government economic stimulus is more likely.
  Market Comments
  • Sep E-mini S&Ps this morning are trading -1.50 points (-0.11%) on this morning's -0.20% sell-off in the Euro Stoxx 50 and on general market concerns ahead of this week's key economic news that includes Thursday's ECB meeting and Friday's U.S. Aug unemployment report. E-mini S&Ps were also undercut by the weak Chinese manufacturing PMI reports that were released on Saturday and Monday, although those reports also boosted the chances that the Chinese government will launch new stimulus measures. The U.S. stock market on Friday whipsawed higher after Fed Chairman Bernanke's speech and finished with moderate gains: S&P 500 +0.51%, Dow Jones +0.69%, Nasdaq 100 +0.67%. Bullish factors included (1) Fed Chairman Bernanke's assertion that the Fed will ease again "if economic conditions warrant," (2) the unexpected increase in the final Aug U.S. University of Michigan consumer confidence, and (3) the stronger than expected +2.8% increase in July factory orders, the biggest gain in a year. Limiting gains in stocks was the bigger-than-expected decline in the Aug Chicago purchasing managers index (-0.7 to 53.0) and global growth concerns after Japan's July industrial production unexpectedly contracted by -1.2% m/m and German July retail sales unexpectedly weakened by -0.9% m/m.
  • Dec 10-year T-notes this morning are down 2.5 ticks. Dec 10-year T-note futures prices on Friday rebounded from early losses and posted a 1-month high and finished with moderate gains after Fed Chairman Bernanke wouldn't rule out additional bond purchases: TYZ2 +18.5, FVZ2 +10.2. Bearish factors included the stronger-than-expected economic data on July factory orders and Aug University of Michigan consumer confidence that helped fuel a rally in stocks.
  • The dollar index this morning is slightly higher by +0.05 (+0.07%), with EUR/USD down -0.0007 (-0.06%) and USD/JPY +0.12 (+0.15%). The dollar index on Friday slumped to a 3-1/4 month low and finished with moderate losses on concern Fed Chairman Bernanke may go ahead with additional dollar negative bond purchases in an effort to boost the economy: Dollar index -0.483 (-0.59%), EUR/USD +0.0075 (+0.60%), USD/JPY -0.24 (-0.31%).
  • Oct WTI crude oil prices this morning are up +0.38 points (+0.39%) a barrel and Oct gasoline is up +0.0245 (+0.82%) on hopes for additional central bank stimulus during September and on continued disruptions from Hurricane Isaac last week. As of Monday, 58% of oil production and 39% of natural gas production in the Gulf of Mexico was still closed down, according to the U.S. Bureau of Safety and Environmental Enforcement. Crude oil and gasoline prices on Friday rallied and closed higher after the dollar weakened when Fed Chairman Bernanke said he wouldn't rule out additional stimulus to stimulate the economy: CLV2 +1.01 (+1.07%), RBV2 +0.00648 (+2.23%). Other bullish factors included the stronger-than-expected U.S. economic data on July factory orders and Aug University of Michigan consumer confidence along with speculation that U.S. gasoline inventories will tighten after Hurricane Isaac shut down 13% of Gulf Coast refining capacity.
  • For the complete subscription version of this daily report (plus a 13-page big-picture weekly report), along with the earliest possible delivery in the morning, please visit http://www.barchart.com/register/crbfms_usmc.php
    Today's U.S. Earnings Reports Earnings reports (ranked by market cap): CPB-Campbell Soup (Consensus $0.38), SFD-Smithfield Foods (0.45), CIM-Chimera Investment (0.10), FCE-Forest City Enterprises (0.06), FRAN-Francesca's Holdings (0.24), GWRE-Guidewire Software (0.04), CUB-Cubic Corp. (0.77), FNSR-Finisar (0.14), NX-Quanex Building Products (0.22).
    Global Financial Calendar
    

    Tuesday 9/4/12
    United States
    1000 ET	Aug ISM manufacturing expected +0.2 to 50.0, July +0.1 to 49.8. Aug ISM prices paid expected +7.0 to 46.5, July +2.5 to 39.5.
    1000 ET	July construction spending expected +0.4%, Jun +0.4%.
    1100 ET	USDA weekly grain export inspections.
    1130 ET	Weekly 3-mo and 6-mo T-bill auctions.
    1600 ET	USDA Crop Progress
    1700 ET	Aug total vehicle sales expected 14.17 million, July 14.05 million. Aug domestic vehicle sales expected 11.00 million, July 11.00 million.
    United Kingdom
    0430 ET	UK Aug construction PMI expected-0.9 to 50.0, July 50.9.
    Euro-Zone
    0500 ET	Eurozone July PPI expected +0.2% m/m and +1.6% y/y, June -0.5% m/m and +1.8% y/y.
    0630 ET	EU President Herman Von Rompuy meets German Chancellor Merkel in Berlin.
    CHI
    2230 ET	China Aug HSBC services PMI, previous 53.1.

    Barchart.com provides Financial Quotes, Charts and Technical Analysis for Stock and Commodity Traders.

Barchart Morning Call 3/5

Barchart Morning Call

Barchart.com - 2 hrs 35 mins ago

Overnight Developments

• Global stocks this morning are lower with the Euro Stoxx 50 down -0.56% and Mar S&Ps down -6.00 points. The dollar index rose to a 2-week high and Treasuries are stronger while stocks and commodities moved lower after China announced its lowest economic growth target in 8 years and European services and manufacturing output last month was revised lower. The euro fell to a 2-week low against the dollar and the cost of insuring against default on European government debt rose to a 1-1/2 month high after the Feb Euro-Zone PMI composite was unexpectedly revised down -0.4 to 49.3 from the originally reported 49.7. The euro recovered from its worst levels against the dollar after Jan Euro-Zone retail sales unexpectedly rose +0.3% m/m and was unchanged y/y, stronger than expectations of -0.1% m/m and -1.5% y/y. The British pound slipped to a 1-week low against the dollar after Feb U.K. PMI services dropped -2.2 to 53.8, weaker than expectations of -1.1 to 54.9.
• Asian stocks today closed lower with Japan down -0.80%, China -0.64%, Australia -0.24%, South Korea -1.01%, India -1.55%. The biggest negative factor dragging Asian and other global equity markets lower was the action by Chinese Premier Wen Jiabao to cut China's growth target to 7.5% from an 8.0% goal in place since 2005, saying China needs to shift to a more sustainable and efficient economic model and achieve "higher-quality development over a longer period of time." China will also aim for inflation of about 4% this year, unchanged from its 2011 goal, even after China's consumer prices rose 5.4% last year. Another negative factor for Chinese stocks was the -4.5 point decline in the Feb China non-manufacturing index to 48.4, its weakest pace of growth in a year. Japanese stocks closed lower on the China news along with a stronger yen, which clouds the earnings outlook for exporters.

Overnight U.S. Stock News

• March S&Ps this morning are trading down -6.00 points. The U.S. stock market Friday settled lower on concern the recent rally in the S&P 500 to a 3-3/4 year high has outpaced global growth prospects: Dow Jones +0.22%, S&P 500 +0.62%, Nasdaq Composite +0.74%. The Nasdaq posted a fresh 11-year high but shed its gains and closed lower. Bearish factors Friday included (1) concern over sustainability of the global expansion after Jan German retail sales unexpectedly declined and Jan Japan overall household spending fell more than expected, (2) concern over contagion of the European crisis after Spain's Prime Minister raised his country's budget deficit target for 2012 to 5.8% of GDP, defying a previous 4.4% level previously agreed to with EU leaders, and (3) weakness in energy and raw material producers after a surge in the dollar index to a 2-week high prompted weakness in most commodities.
• Bullish factors included (1) comments from St. Louis Fed President Bullard who said recent U.S. economic data is "better than expected," and the U.S. could weather a recession in Europe and (2) carry-over support from a rally in European banks after Goldman Sachs raised the European banking industry to "overweight" from "neutral," citing an anticipated boost in liquidity and profits from the ECB's 3 year loans to European lenders.
• Freeport-McMoran Copper & Gold (FCX) slipped 1.2% in European trading after copper declined on concern China's demand for industrial metals may slow after Premier Wen Jiabao cut China's growth target.

Today's Market Focus

• June 10-year T-notes this morning are up +0.5 of a tick. T-note prices Friday settled higher on dovish comments from San Francisco Fed President Williams along with increased safe-haven demand on concern European economic growth may slow after Jan German retail sales unexpectedly declined: TYM2 +18.0, FVM2 +9.7, EDU2 +2.0. Bullish factors Friday included (1) comments from San Francisco Fed President Williams who said the Fed should maintain an "extraordinarily supportive policy" to reduce an unemployment rate that will probably exceed 7% for years and "we may need to do more if the recovery falters or if inflation stays below 2%," (2) concern the European economy may slow after Jan German retail sales unexpectedly declined, and (3) increased safe-haven demand for Treasuries as stocks retreated. A bearish factor was comments from St. Louis Fed President Bullard who said recent U.S. economic data is "better than expected," and the U.S. could weather a recession in Europe.
• The dollar index this morning is higher and at a 2-week high with the dollar/yen -0.48 yen and the euro/dollar -0.11 cents. The dollar index Friday posted a 2-week high and settled higher after the euro weakened on an unexpected decline in German retail sales while the yen sank on speculation the BOJ may expand its monetary easing measures: Dollar Index +0.614, USDJPY +0.583, EURUSD -0.01146. The euro fell to a 1-1/2 week low and the yen sank to a 9-month low against the dollar. Bullish factors included (1) concern that economic growth in Europe may slow after Jan German retail sales unexpectedly declined, (2) the action by Spain's Prime Minister to raise the country's budget deficit target for 2012 to 5.8% of GDP, defying a previous 4.4% level previously agreed to with EU leaders, which may worsen the European debt crisis and weaken the euro, (3) the weaker-than-expected Jan Japan household spending along with the unexpected increase in the Jan Japan jobless rate, which undercut the yen on speculation the BOJ may boost its easing measures to stimulate economic growth, and (4) increased safe-haven demand for the dollar as stocks tumbled. Bearish factors included (1) dollar negative comments from San Francisco Fed President Williams who said the Fed should maintain an "extraordinarily supportive policy" to reduce the unemployment rate and (2) reduced safe-haven demand for the dollar after Goldman Sachs upgraded the European banking industry to "overweight" from "neutral," citing an anticipated boost in liquidity and profits from the ECB's 3 year loans to European lenders.
• Apr crude oil prices this morning are down -39 cents a barrel and Apr gasoline is +0.05 of a cent per gallon. Crude oil and gasoline prices Friday settled lower after Saudi Arabia denied a report of sabotage at its oil facilities and after the dollar rallied: CLJ12 -$2.14, RBJ -7.96. Bearish factors included (1) the rally in the dollar index to a 2-week high, which discourages investment demand in commodities, (2) the denial from a Saudi official who said there was no damage or sabotage to its oil facilities in the Qatif area, contradicting reports from Iran's Press TV late Thursday that an explosion hit pipelines in the area, (3) comments from President Obama who said in an interview with The Atlantic magazine that a pre-emptive strike against Iran might generate "sympathy" for Iran and allow it to portray itself as a victim, which eases concern that a pre-emptive attack may take place, and (4) concern that economic growth in Europe may slow after Jan German retail sales unexpectedly declined. Bullish factors included (1) concern over Monday's meeting between President Obama and Israeli Prime Minister Netanyahu and whether it will lead to military action against Iran over its nuclear program and (2) comments from San Francisco Fed President Williams who said the Fed should maintain an "extraordinarily supportive policy" to reduce the unemployment rate, which may spur economic growth and boost fuel demand.

Today's U.S. Earnings Reports Earnings reports (confirmed releases, sorted by mkt cap): EEP-Enbridge Energy Partners LP (BEST earnings consensus $0.38), PAY-Verifone Systems (0.52), ARCO-Arcos Dorados Holdings (0.23), MSG-Madison Square Garden (0.15), CASY-Casey's General Stores (0.44), HGIC-Harleysville Group (0.65), ABM-ABM Industries (0.22), GA-Giant Interactive Group (0.17), SONO-SonoSite (0.84), NX-Quanex Building Products (-0.03).
Global Financial Calendar

Monday 3/5/12
United States
1000 ET	Feb ISM non-manufacturing index expected -0.7 to 56.1, Jan +3.8 to 56.8.
1000 ET	Jan factory orders expected -1.3%, Dec +1.1%.
1130 ET	Weekly 3-mo and 6-mo T-bill auctions.
1320 ET	Dallas Fed President Richard Fisher speaks to the Dallas Regional Chamber on ?The State of the Economy.?
CHI
0200 ET	Zhang Ping, head of the National Development and Reform Commission, China?s top planning agency, holds a press briefing during the annual session of the National People?s Congress.
France
0350 ET	Revised Feb French PMI services expected no change at 50.3.
Germany
0355 ET	Revised Feb German PMI services expected no change at 52.6.
Euro-Zone
0400 ET	Revised Feb Euro-Zone PMI composite expected no change at 49.7.
0430 ET	Mar Euro-Zone Sentix investor confidence expected+6.1 to -5.0, Feb +10.0 to -11.1.
0500 ET	Jan Euro-Zone retail sales expected -0.1% m/m and -1.5% y/y, Dec -0.3% m/m and -1.3% y/y.
United Kingdom
0430 ET	Feb U.K. PMI services expected -1.1 to 54.9, Jan +2.0 to 56.0.
Japan
2030 ET	Jan Japan labor cash earnings expected -0.3% y/y, Dec +0.1% y/y.

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Quanex Building Products - NX - Moving Up

On Barchart's S&P 600 small cap new high list today: Quanex Building Products (NX)

Barchart technical indicators:

• 96% Barchart technical buy signal
• Trend Spotter buy signal
• above its 20, 50 and 100 day moving averages
• 15 new highs and up 34.65% in the last month
• Relative strength Index 67.46%
• Barchart computes a technical support level at 16.56
• Recently traded at 17.32 with a 50 day moving average of 14.90