Morning Call 8/15

Barchart Morning Call

Barchart.com - Tue Aug 15, 6:34AM CDT

OVERNIGHT MARKETS AND NEWS

Sep E-mini S&Ps (ESU17 +0.26%) this morning are up +0.20% and European stocks are up +0.40% as tensions between the U.S. and North Korea wane, which is fueling gains in global equity markets. The VIX volatility index fell for a third day and Dec COMEX gold prices (GCZ17 -0.81%) declined -0.81% on reduced safe-haven demand after a North Korean media report signaled that North Korean President Kim Jong Un had decided not to launch missiles toward Guam. Gains in European stocks were contained after German Q2 GDP expanded at a slower than expected pace, while weakness in energy stocks limited the upside in U.S. markets as Sep WTI crude oil (CLU17 -0.46%) slid -0.38% to a 3-week low. GBP/USD fell -0.69% to a 1-month low on weaker-than-expected UK Jul CPI, which may keep the BOE from tapering its QE program. Asian stocks settled mostly higher: Japan +1.11%, Hong Kong -0.28%, China +0.43%, Taiwan +0.84%, Australia +0.47%, Singapore -0.42%, South Korea and India closed for holiday. Chinese stocks also found support on stronger-than-expected China Jul aggregate financing, the broadest measure of credit, and Japanese exporters led gains in the Nikkei Stock Index as USD/JPY rose for a second day.

The dollar index (DXY00 +0.36%) is up +0.34%. EUR/USD (^EURUSD) is down -0.21%. USD/JPY (^USDJPY) is up +0.71%.

Sep 10-year T-note prices (ZNU17 -0.22%) are down -9 ticks.

German Q2 GDP rose +0.6% q/q, weaker than expectations of +0.7% q/q.

UK Jul CPI of -0.1% m/m and +2.6% y/y was weaker than expectations of unch m/m and +2.7% y/y. Jul core CPI rose +2.4% y/y, weaker than expectations of +2.5% y/y.

China Jul new yuan loans rose 825.5 billion yuan, stronger than expectations of +800.0 billion yuan. Jul aggregate financing increased by 1.22 trillion yuan, stronger than expectations of 1.00 trillion yuan.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Jul import price index (expected +0.1% m/m, Jun -0.2% and +0.1% ex-petroleum), Jul export price index (expected +0.2% m/m, Jun -0.2% m/m and +0.6% y/y), (2) Aug Empire manufacturing survey general business conditions (expected +0.2 to 10.0, Jul -10.0 to 9.8), (3) Jul retail sales (expected +0.3% and +0.4% ex autos, Jun -0.2% and -0.2% ex autos), (4) Aug NAHB housing market index (expected unch at 64, Jul -2 to 64), (5) Jun business inventories (expected +0.4%, May +0.3%).

Notable Russell 1000 earnings reports today include: Advance Auto Parts (consensus $1.65), Coach $0.50, TJX Cos $0.84, Home Depot $2.21, Dick's Sporting Goods $1.00, Brighthouse Financial $2.43, Agilent Technologies $0.52, Urban Outfitters $0.37, Jack Henry & Associates $0.83.

U.S. IPO's scheduled to price today: Capitol Investment Co.

Equity conferences this week: D. A. Davidson & Co Technology Forum on Tue, Nomura Holdings Inc Instinet Media Telecom Conference on Tue, Citi Insurance & Asset Managers Forum on Wed, Barclays Kohler Conference on Wed, Wedbush Pacgrow Health Care Conference on Wed.

OVERNIGHT U.S. STOCK MOVERS

Home Depot (HD -0.40%) rose nearly 2% in pre-market trading after it reported Q2 EPS of $2.25, better than consensus of $2.21, and then raised guidance on full-year EPS to $7.29 from a prior view of $7.15.

American Eagle Outfitters (AEO -2.32%) was upgraded to 'Buy' from 'Market Perform' at FBR Capital Markets with a 12-month target price of $13.

NetApp (NTAP +1.30%) was upgraded to 'Buy' from 'Neutral' at Longbow Research with a 12-month target price of $50.

Wynn Resorts Ltd (WYNN +2.03%) was upgraded to 'Buy' from 'Hold' at Deutsche Bank.

Targa Resources (TRGP -1.31%) was upgraded to 'Buy' from 'Neutral' at Guggenheim Securities with a 12-month target price of $50.

Synchrony Financial (SYF +1.51%) climbed nearly 5% in after-hours trading after Berkshire Hathaway reported that it increased its stake in SYF to $520 million in Q2.

FibroGen (FGEN +5.76%) lost over 2% in after-hours trading after it announced that it intends to offer and sell up to $300 million of its common stock in an underwritten follow-on offering.

Allscripts Healthcare Solutions (MDRX +0.47%) gained 1% in after-hours trading after it was upgraded to 'Overweight' from 'Neutral' at Cantor Fitzgerald with a price target of $17.

Omeros (OMER +4.95%) dropped nearly 5% in after-hours trading after it filed to sell 3 million shares of its common stock in a secondary public offering.

Pandora Media (P -0.12%) rose 4% in after-hours trading after it named Sling TV CEO Roger Lynch as CEO and board member effective September 18.

Extreme Networks (EXTR +8.00%) jumped 10% in after-hours trading after it reported Q4 adjusted EPS of 17 cents, above consensus of 15 cents.

Photronics (PLAB +3.68%) plunged 16% in after-hours trading after it reported Q3 revenue of $111.6 million, below consensus of $115.2 million, and then said it sees Q4 revenue of $108 million-$116 million, weaker than expectations of $124.2 million.

MARKET COMMENTS

Sep S&P 500 E-mini stock futures (ESU17 +0.26%) this morning are up +5.00 points (+0.20%). Monday's closes: S&P 500 +1.00, Dow Jones +0.62%, Nasdaq +1.31%. The S&P 500 on Monday closed sharply higher on reduced market volatility after the VIX volatility index plunged when North Korean geopolitical risks subsided. Another supportive factor was signs of strength in the Japanese economy that benefits global growth after Japan Q2 GDP rose +4.0% (q/q annualized), stronger than expectations of +2.5% (q/q annualized) and the fastest pace of growth in over 2-years. A bearish factor was weakness in energy producers after crude oil prices fell -2.52%.

Sep 10-year T-note prices (ZNU17 -0.22%) this morning are down -9 ticks. Monday's closes: TYU7 -8.50, FVU7 -4.75. Sep 10-year T-notes on Monday closed lower on reduced safe-haven demand for T-notes as the stock market rallied sharply after North Korean tensions eased, and on signs of stronger global economic growth that may prompt the Fed to raise interest rates and the BOJ to taper QE after Japan Q2 GDP expanded at a +4.0% (q/q annualized) pace, the fastest pace of growth in over 2-years.

The dollar index (DXY00 +0.36%) this morning is up +0.318 (+0.34%). EUR/USD (^EURUSD) is down -0.0025 (-0.21%) and USD/JPY (^USDJPY) is up +0.78 (+0.71%). Monday's closes: Dollar Index +0.342 (+0.37%), EUR/USD -0.0041 (-0.35%), USD/JPY +0.44 (+0.40%). The dollar index on Monday closed higher due to weakness in EUR/USD after Eurozone Jun industrial production fell -0.6% m/m, the biggest decline in 6 months, and on the increase in 10-year T-note yields, which improves the dollar's interest rate differentials.

Sep crude oil (CLU17 -0.46%) this morning is down -18 cents (-0.38%) at a 3-week low. Sep gasoline (RBU17 -0.15%) is unch. Monday's closes: Sep WTI crude -1.23 (-2.52%), Sep gasoline -0.0363 (-2.25%). Sep crude oil and gasoline on Monday fell to 2-1/2 week lows and closed lower due to a stronger dollar, and slack Chinese crude demand after China Jul crude processing fell -4.4% to 10.76 million bpd, the smallest amount of crude processed in 10-months. Another bearish factor was negative carry-over from Friday's data from Baker Hughes that showed U.S. active oil rigs in the week ended Aug 11 rose +3 to 768, the most in 2-1/3 years.

GLOBAL EVENT CALENDAR08/15/2017

		Tuesday, Aug 15
US	0830 ET	Jul import price index expected +0.1% m/m, Jun -0.2% and +0.1% ex-petroleum. Jul export price index expected +0.2% m/m, Jun -0.2% m/m and +0.6% y/y.
	0830 ET	Aug Empire manufacturing survey general business conditions expected +0.2 to 10.0, Jul -10.0 to 9.8.
	0830 ET	Jul retail sales expected +0.3% and +0.4% ex autos, Jun -0.2% and -0.2% ex autos.
	1000 ET	Aug NAHB housing market index expected unch at 64, Jul -2 to 64.
	1000 ET	Jun business inventories expected +0.4%, May +0.3%.
		Wednesday, Aug 16
US	0700 ET	Weekly MBA mortgage applications, previous +3.0% with purchase sub-index +0.8% and refi sub-index +5.3%.
	0830 ET	Jul housing starts expected +0.4% to 1.220 million, Jun +8.3% to 1.215 million. Jul building permits expected -2.0%to 1.250 million, Jun +9.2% to 1.275 million.
	1030 ET	EIA Weekly Petroleum Status Report.
	1400 ET	Minutes of the Jul 25-26 FOMC meeting.

U.S. STOCK CALENDAR08/15/2017

Company	Ticker	Time	Event Description	Period	Estimate
Advance Auto Parts Inc	AAP US	Bef-mkt	Q2 2017 Earnings Release	Q2 17	1.65
Coach Inc	COH US	Bef-mkt	Q4 2017 Earnings Release	Q4 17	0.495
TJX Cos Inc/The	TJX US	Bef-mkt	Q2 2018 Earnings Release	Q2 18	0.84
Home Depot Inc/The	HD US	6:00	Q2 2018 Earnings Release	Q2 18	2.214
Dick's Sporting Goods Inc	DKS US	7:30	Q2 2018 Earnings Release	Q2 18	0.998
Advance Auto Parts Inc	AAP US	8:00	Q2 2017 Earnings Call	Q2 17
Coach Inc	COH US	8:30	Q4 2017 Earnings Call	Q4 17
Home Depot Inc/The	HD US	9:00	Q2 2018 Earnings Call	Q2 18
Dick's Sporting Goods Inc	DKS US	10:00	Q2 2018 Earnings Call	Q2 18
TJX Cos Inc/The	TJX US	11:00	Q2 2018 Earnings Call	Q2 18
Brighthouse Financial Inc	BHF US		Q2 2017 Earnings Release	Q2 17	2.432
Equifax Inc	EFX US		Investor Meeting - Los Angeles
Equifax Inc	EFX US		Investor Meeting - Denver
Agilent Technologies Inc	A US	16:00	Q3 2017 Earnings Release	Q3 17	0.522
Urban Outfitters Inc	URBN US	16:05	Q2 2018 Earnings Release	Q2 18	0.367
Jack Henry & Associates Inc	JKHY US	16:15	Q4 2017 Earnings Release	Q4 17	0.83
Agilent Technologies Inc	A US	16:30	Q3 2017 Earnings Call	Q3 17
Urban Outfitters Inc	URBN US	17:00	Q2 2018 Earnings Call	Q2 18

MORNING CALL 5/11

Barchart Morning Call

Barchart.com - Thu May 11, 6:39AM CDT

OVERNIGHT MARKETS AND NEWS

Jun E-mini S&Ps (ESM17 -0.14%) this morning are down -0.16% and European stocks are down -0.19% as the BOE cut its UK GDP estimate and raised its UK CPI forecast. The BOE, as expected, kept its benchmark interest rate unchanged at 0.25% and maintained its asset purchase target at 435 billion pounds, but cut its 2017 UK GDP forecast to 1.9% from 2.0% and raised its 2017 CPI forecast to 2.7% from 2.4%. Losses in equities were contained on strength in energy producing stocks and mining companies as Jun WTI crude oil (CLM17 +1.33%) rose +1.52% and Jul COMEX copper (HGN17 +1.92%) climbed +1.88%, both at 1-week highs. Asian stocks settled higher: Japan +0.31%, Hong Kong +0.44%, China +0.29%, Taiwan +0.33%, Australia +0.05%, Singapore +0.65%, South Korea +1.20%, India +0.01%. Stock markets in India and South Korea climbed to record highs, while Japan's Nikkei Stock index rose to a 17-month high and China's Shanghai Composite recovered from a 7-month low and closed higher on speculation the government intervened to prop up stocks late in the session.

The dollar index (DXY00 -0.03%) is down -0.04%. EUR/USD (^EURUSD) is up +0.05% after the European Commission raised its 2017 Eurozone GDP forecast. USD/JPY (^USDJPY) is down -0.22%.

Jun 10-year T-note prices (ZNM17 +0.05%) are up +3 ticks.

The European Commission raised its Eurozone 2017 GDP forecast to 1.7%, up from a forecast of +1.6% in Feb, and said risks to Eurozone growth are more balanced, though they remain tilted to the downside.

New York Fed President Dudley (voter) said that the U.S. economic recovery continues apace and that the Fed expects to gradually raise interest rates. He added that later this year or in 2018 the Fed is likely to start shrinking its balance sheet, although it won't shrink back to its pre-crisis size.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) NY Fed President William Dudley gives speech entitled “Benefits and Challenges of Globalization” in Mumbai, (2) weekly initial unemployment claims (expected +7,000 to 245,000, previous -19,000 to 238,000) and continuing claims (expected +16,000 to 1.980 million, previous -23,000 to 1.964 million), (3) Apr PPI final demand (expected +0.2% m/m and +2.2% y/y, Mar -0.1% m/m and +2.3% y/y) and Apr PPI ex food & energy (expected +0.2% m/m and +1.6% y/y, Mar unch m/m and +1.6% y/y), (4) Treasury auctions $15 billion of 30-year T-bonds, (5) USDA weekly Export Sales.

Notable S&P 500 earnings reports today include: Macy's (consensus $0.35), Kohl's (0.29), Nordstrom (0.28), CA (0.49).

U.S. IPO's scheduled to price today: Solaris Oilfield Infrastructure (SOI), Gardner Denver Holdings (GDI), ASV LLC (ASV).

Equity conferences: 11th Annual Barrington Research Spring Investment Conference on Thu, Citi Boston Energy Conference on Thu, Deutsche Bank AutoTech Conference on Thu.

OVERNIGHT U.S. STOCK MOVERS

Snap (SNAP -1.46%) sank over 20% in pre-market trading after it reported Q1 revenue of $149.6 million, below consensus of $158.6 million.

O'Reilly Automotive (ORLY +0.68%) gained 1% in after-hours trading after it said it added $1 billion to its share buyback program for a total of $8.75 billion.

Symantec (SYMC +2.38%) dropped 7% in in after-hours trading after it said it sees Q1 adjusted EPS of 28 cents-32 cents, weaker than consensus of 38 cents, and then said it sees full-year adjusted revenue of $5.10 billion-$5.20 billion, below consensus of $5.21 billion.

Merck & Co (MRK +1.03%) rose 3% in after-hours trading after it won FDA approval for using its Keytruda drug and chemotherapy for treatment of metastatic non-squamous non-small cell lung cancer.

Twenty-First Century Fox (FOXA -1.17%) fell 2% in after-hours trading after it reported Q3 revenue of $7.56 billion, less than consensus of $7.64 billion.

Bright Horizons Family Solutions (BFAM -0.19%) lost 1% in after-hours trading after it announced a secondary offering of 4.15 million shares of common stock by selling shareholders.

Pegasystems (PEGA +3.15%) jumped 9% in after-hours trading after it reported Q1 adjusted EPS of 39 cents, well above consensus of 23 cents.

Intrexon (XON +0.62%) climbed over 4% in after-hours trading after it reported Q1 revenue of $53.7 million, higher than consensus of $49.1 million.

Aviat Networks ({=AVNW =}) plunged over 25% in after-hours trading after it reported Q3 revenue of $58.7 million, down -2.9% y/y.

U.S. Steel (X +0.87%) gained 1% in after-hours trading after CEO Mario Longhi stepped down and COO David Burritt replaced him.

Omeros (OMER +0.62%) lost almost 2% in after-hours trading after it reported Q1 revenue of $12.3 million, weaker than consensus of $13.3 million.

Arbor Realty Trust (ABR +0.46%) slid over 5% in after-hours trading after it announced plans to make a public offering of 9.5 million shares of its common stock.

MARKET COMMENTS

June E-mini S&Ps (ESM17 -0.14%) this morning are down -3.75 points (-0.16%). Wednesday's closes: S&P 500 +0.11%, Dow Jones -0.16%, Nasdaq +0.06%. The S&P 500 on Wednesday closed higher on strength in energy producer stocks after crude oil prices jumped +3.16% and on strength in technology stocks led by a +17% surge in shares of Nvidia after it reported stronger-than-expected Q1 earnings. Gains were limited by political uncertainty after President Trump fired FBI Director Comey.

June 10-year T-notes (ZNM17 +0.05%) this morning are up +3 ticks. Wednesday's closes: TYM7 -0.50, FVM7 -0.25. Jun 10-year T-notes on Wednesday closed little changed. T-notes were boosted by political uncertainty in Washington after President Trump fired FBI Director Comey and by some flight to safety after North Korea's UK ambassador said his country will proceed with nuclear tests. T-notes gave up their advance on weaker-than-expected demand for the Treasury’s $23 billion of 10-year T-notes that had a bid-to-cover of 2.33, below the 12-auction average of 2.47.

The dollar index (DXY00 -0.03%) this morning is down -0.036 (-0.04%). EUR/USD (^EURUSD) is +0.0005 (+0.05%) and USD/JPY (^USDJPY) is -0.25 (-0.22%). Wednesday's closes: Dollar index +0.011 (+0.01%), EUR/USD -0.0006 (-0.06%), USD/JPY +0.05 (+0.04%). The dollar index on Wednesday closed slightly higher on the stronger-than-expected U.S. Apr import price index report, which bolsters the case for additional Fed rate hikes. There was also weakness in EUR/USD which fell to a 1-week low after ECB President Draghi said, "underlying inflation pressures continue to remain subdued and have yet to show a convincing upward trend," which bolsters speculation the ECB is not yet ready to taper QE.

June WTI crude oil prices (CLM17 +1.33%) this morning are up +72 cents (+1.52%) at a 1-week high and June gasoline (RBM17 +1.50%) is +0.0250 (+1.62%) at a 1-1/2 week high. Wednesday's closes: Jun crude +1.45 (+3.16%), Jun gasoline +0.0501 (+3.36%). Jun crude oil and gasoline on Wednesday closed sharply higher on the -5.247 million bbl decline in EIA crude inventories (versus expectations of -2.0 million bbl) and the unexpected -150,000 bbl decline in EIA gasoline inventories (vs expectations of +300,000 bbl). On the bearish side, U.S. crude production in the week of May 5 rose +0.2% to 9.314 million bpd, a 1-1/2 year high.

GLOBAL EVENT CALENDAR05/11/2017

		Thursday, May 11
US	0625 ET	NY Fed President William Dudley gives speech entitled Benefits and Challenges of Globalization in Mumbai.
	0830 ET	Weekly initial unemployment claims expected +7,000 to 245,000, previous -19,000 to 238,000. Weekly continuing claims expected +16,000 to 1.980 million, previous -23,000 to 1.964 million.
	0830 ET	Apr PPI final demand expected +0.2% m/m and +2.2% y/y, Mar -0.1% m/m and +2.3% y/y. Apr PPI ex food & energy expected +0.2% m/m and +1.6% y/y, Mar unch m/m and +1.6% y/y.
	0830 ET	USDA weekly Export Sales.
	1100 ET	Treasury announces amount of 10-year TIPS to be auctioned May 18 (previous $11 billion).
	1300 ET	Treasury auctions $15 billion of 30-year T-bonds
		Friday, May 12
US	0830 ET	Apr CPI expected +0.2% m/m and +2.3% y/y, Mar -0.3% m/m and +2.4% y/y. Apr CPI ex food & energy expected +0.2% m/m and +2.0% y/y, Mar -0.1% m/m and +2.0% y/y.
	0830 ET	Apr retail sales expected +0.6% and +0.5% ex autos, Mar -0.2% and unch ex autos.
	0830 ET	Apr real avg weekly earnings, Mar -0.1% y/y.
	0900 ET	Chicago Fed President Charles Evans discusses economic conditions and monetary policy on a panel at the ACI Financial Markets Association World Conference in Dublin.
	1000 ET	Preliminary-May University of Michigan U.S. consumer sentiment index expected unch at 97.0, Apr +0.1 to 97.0.
	1000 ET	Mar business inventories expected +0.1%, Feb +0.3%.
	1230 ET	Philadelphia Fed President Patrick Harker (voter) delivers speech on U.S. economic outlook at Drexel University.

U.S. STOCK CALENDAR05/11/2017

Company	Ticker	Time	Event Description	Period	Estimate
Macy's Inc	M US	Bef-mkt	Q1 2018 Earnings Release	Q1 18	0.346
Kohl's Corp	KSS US	07:00	Q1 2018 Earnings Release	Q1 18	0.29
Williams Cos Inc/The	WMB US	08:00	Analyst Day
Kohl's Corp	KSS US	08:30	Q1 2018 Earnings Call	Q1 18
Ford Motor Co	F US	08:30	Annual General Meeting
E*TRADE Financial Corp	ETFC US	08:30	Annual General Meeting
Delta Air Lines Inc	DAL US	08:30	Analyst Meeting
Laboratory Corp of America Holdings	LH US	09:00	Annual General Meeting
Macy's Inc	M US	10:00	Q1 2018 Earnings Call	Q1 18
Principal Financial Group Inc	PFG US	10:00	Roadshow
Zoetis Inc	ZTS US	10:00	Annual General Meeting
Dow Chemical Co/The	DOW US	10:00	Annual General Meeting
Discover Financial Services	DFS US	10:00	Annual General Meeting
Nucor Corp	NUE US	10:00	Annual General Meeting
Wells Fargo & Co	WFC US	10:30	Investor Day
Apache Corp	APA US	11:00	Annual General Meeting
UDR Inc	UDR US		Annual General Meeting
Express Scripts Holding Co	ESRX US		Annual General Meeting
Equifax Inc	EFX US		Investors Meeting
Equifax Inc	EFX US		Investor Meeting
Equifax Inc	EFX US		Investor Meeting
Western Union Co/The	WU US		Annual General Meeting
Host Hotels & Resorts Inc	HST US		Annual General Meeting
CH Robinson Worldwide Inc	CHRW US		Annual General Meeting
Union Pacific Corp	UNP US	12:00	Annual General Meeting
Norfolk Southern Corp	NSC US		Annual General Meeting
Assurant Inc	AIZ US		Annual General Meeting
Cimarex Energy Co	XEC US		Annual General Meeting
Edwards Lifesciences Corp	EW US	13:00	Annual General Meeting
Transocean Ltd	RIG US	13:30	Annual General Meeting
Invesco Ltd	IVZ US	14:00	Annual General Meeting
Nordstrom Inc	JWN US	Aft-mkt	Q1 2018 Earnings Release	Q1 18	0.277
CA Inc	CA US	Aft-mkt	Q4 2017 Earnings Release	Q4 17	0.492
Nordstrom Inc	JWN US	16:45	Q1 2018 Earnings Call	Q1 18
CA Inc	CA US	17:00	Q4 2017 Earnings Call	Q4 17
Boston Scientific Corp	BSX US	17:00	Investor Conference