Showing posts with label OSIR. Show all posts
Showing posts with label OSIR. Show all posts

Tuesday, May 31, 2016

MORNING CALL 5/31

MORNING CALL
OVERNIGHT MARKETS AND NEWS
Jun E-mini S&Ps (ESM16 +0.11%)are up +0.04% at a 1-1/4 month high on optimism that a strengthening U.S. economy could handle another 25 bp rate hike from the Fed. Fed Chair Yellen said Friday afternoon that an improving economy would probably warrant another rate increase "in the coming months." Strength in crude oil prices is lifting energy producers, while European stocks are down -0.33% as automakers declined after Volkswagen dropped over 3% when it reported an 86% plunge in quarterly profit due to its emissions-cheating scandal. European stocks were also undercut after an unexpected decline in German Apr retail sales. Asian stocks settled mostly higher: Japan +0.98%, Hong Kong +0.90%, China +3.34%, Taiwan unch, Australia -0.54%, Singapore -0.20%, South Korea +0.79%, India -0.22%. China's Shanghai Composite climbed to a 3-week high after Goldman Sachs said that it was likely that the stocks in the Shanghai Composite would be included in MSCI Inc.'s global benchmark indexes. Japan's Nikkei Stock Index rose to a 1-month high on optimism the Japanese government will delay an increase in the sales tax after senior officials from Prime Minister Abe's ruling party and its coalition partner said that Prime Minister Abe wants to put off a planned national sale tax increase for 2-1/2 years.
The dollar index (DXY00 -0.01%) is up +0.09%. EUR/USD (^EURUSD) is up +0.13%. USD/JPY (^USDJPY) is down -0.04%.
Jun T-note prices (ZNM16 -0.24%) are down -12.5 ticks.
German Apr retail sales unexpectedly fell -0.9% m/m, weaker than expectations of +0.9% m/m.
The Eurozone May CPI estimate fell -0.1% y/y, right on expectations. The May core CPI rose +0.8% y/y, right on expectations.
The Eurozone Apr unemployment rate was unch at 10.2%, right on expectations.

U.S. STOCK PREVIEW
Key U.S. news today includes: (1) Apr personal spending (expected +0.7%, Mar +0.1%) and Apr personal income (expected +0.4%, Mar +0.4%), (2) Apr PCE deflator expected (+0.3% m/m and +1.1% y/y, Mar +0.1% m/m and +0.8% y/y) and Apr core PCE deflator (expected +0.2% m/m and +1.6% y/y, Mar +0.2% m/m and +1.6% y/y), (3) S&P/CaseShiller composite-20 home price index (expected +0.7% m/m and +5.06% y/y, Feb +0.66% m/m and +5.38% y/y), (4) May Chicago PMI (expected +0.1 to 50.5, Apr -3.2 to 50.4), (5) May Conference Board U.S. consumer confidence (expected +2.1 to 96.3, Apr-1.9 to 94.2), (6) May Dallas Fed manufacturing activity (expected +5.9 to -8.0, Apr -13.9), (7) USDA weekly grain export inspections, and (8) USDA Weekly Crop Progress.
There are 3 of the Russell 1000 companies that report earnings today: Golar LNG (consensus -$0.42), Medtronic (1.26), Workday (-0.02).
U.S. IPO's scheduled to price today: Cancer Preventation Pharmaceuticals (CPP).
Equity conferences this week include: Deutsche Bank Global Financial Services Investor Conference on Tue-Wed, BMO Capital Markets Energy & Power Conference on Wed, D. A. Davidson & Co Technology Forum on Wed, Stifel Dental & Veterinary Conference on Wed, Bank of America Merrill Lynch Global Technology Conference on Wed-Thu, Cowen and Company Technology, Media & Telecom Conference on Wed-Thu, RBC Capital Markets Consumer & Retail Conference on Wed-Thu, Bernstein Strategic Decisions Conference on Wed-Fri, Credit Suisse Engineering & Construction Conference on Thu, Keefe, Bruyette & Woods Asset Management Conference on Thu, American Society of Clinical Oncology (ASCO) Meeting on Fri.
OVERNIGHT U.S. STOCK MOVERS
Celator Pharmaceuticals (CPXX +0.17%) soared over 70% in pre-market trading after it agreed to a $1.5 billion takeover offer from Jazz Pharmaceuticals.
Lockheed Martin (LMT -0.60%) was downgraded to 'Hold' from 'Buy' at Berenberg.
Marathon Oil (MRO -2.05%) was upgraded to 'Overweight' from 'Neutral' at Piper Jaffray.
Deere & Co. (DE +0.29%) was upgraded to 'Buy' from 'Neutral' at UBS with a 12-month price target of $94.
Micron (MU +3.01%) was upgraded to 'Outperform' from 'Neutral' at Robert Baird.
Dril-Quip (DRQ +1.12%) was upgraded to 'Buy' from 'Accumulate' at KLR Group with a price target of $70.
Signature Bank/New York (SBNY +0.85%) was downgraded to 'Neutral' from 'Overweight' at Piper Jaffray with a 12-month price target of $146.
TransDigm Group (TDG +0.47%) jumped 4% in after-hours trading after it was announced that it will replace Baxalta in the S&P 500 after the close of trading Thursday, June 2.
Brocade (BRCD +0.23%) rose 3% in after-hours trading after it was announced that it will replace MDC Holdings in the MidCap 400 after the close of trading on Tuesday, May 31.
The FDA approved Zinbryta, made by Biogen (BIIB +0.28%) and Abbvie (ABBV +1.31%) , for the treatment of adults with relapsing forms of multiple sclerosis.
Reuters reports that Williams Cos (WMB +3.22%) has informed Energy Transfer Equity ETE that it is open to considering a new offer that would replace the $6 billion portion of the deal with shares in the acquisition vehicle that Energy Transfer will create.
Osiris Therapeutics (OSIR +1.43%) slumped 10% in after-hours trading after it said a criminal probe against the company was started by the U.S. Attorney's Office for the Southern District of New York.
MARKET COMMENTS
June E-mini S&Ps (ESM16 +0.11%) this morning up +0.75 of a point (+0.04%) at a 1-1/4 month high. Friday's closes: S&P 500 +0.43%, Dow Jones +0.25%, Nasdaq +0.55%. The S&P 500 Friday rallied to a 1-1/4 month high and closed higher on the upward revision to U.S. Q1 GDP to +0.8% from +0.5% and on optimism that the U.S. economy is strong enough to handle further Fed rate hikes. Stocks were undercut by the -1.1 point decline in final-May University of Michigan U.S. consumer sentiment index to 94.7, weaker than expectations of -0.4 to 95.4.
June 10-year T-note prices (ZNM16 -0.24%) this morning are down -12.5 ticks. Friday's closes: TYM6 -3.50, FVM6 -3.00. Jun T-notes on Friday closed lower on the upward revision to U.S. Q1 GDP to +0.8% from +0.5%, hawkish comments from Fed Chair Yellen who said a Fed rate hike in coming months may be "appropriate," and reduced safe-haven demand with the rally in stocks.
The dollar index (DXY00 -0.01%) this morning is up +0.085 (+0.09%). EUR/USD (^EURUSD) is up +0.0014 (+0.13%). USD/JPY (^USDJPY) is down-0.05 (-0.04%). Friday's closes: Dollar Index +0.353 (+0.37%), EUR/USD -0.0079 (-0.71%), USD/JPY +0.55 (+0.50%). The dollar index on Friday rallied to a 2-month high and closed higher on the upward revision in U.S. Q1 GDP to +0.8% from +0.5% and hawkish comments from Fed Chair Yellen who said a Fed rate hike in coming months may be "appropriate." The dollar was also boosted by weakness in EUR/USD which tumbled to a 2-1/2 month low on divergent central bank policies with the Fed expected to further tighten monetary policy while the ECB maintains or even expands its monetary policy.
July WTI crude oil (CLN16 +0.47%) this morning is up +14 cents (+0.28%). July gasoline (RBN16 -0.90%) is down -0.0192 (-1.17%). Friday's closes: CLN6 -0.15 (-0.30%), RBN6 +0.0111 (+0.68%). July crude oil and gasoline prices on Friday settled mixed as July gasoline rebounded from a 1-week low. Crude oil prices were undercut by the rally in the dollar index to a 2-month high and by the restart of oil-sands facilities in Alberta as wildfire risks abated. Gasoline prices were boosted by signs of stronger demand as the AAA estimates that 38 million Americans will travel 50 miles or more this Memorial holiday weekend, up +2.2% y/y and the second-highest ever.
GLOBAL EVENT CALENDAR05/31/2016
US0830 ETApr personal spending expected +0.7%, Mar +0.1%. Apr personal income expected +0.4%, Mar +0.4%.
0830 ETApr PCE deflator expected +0.3% m/m and +1.1% y/y, Mar +0.1% m/m and +0.8% y/y. Apr core PCE deflator expected +0.2% m/m and +1.6% y/y, Mar +0.2% m/m and +1.6% y/y.
0900 ETMar S&P/CaseShiller composite-20 home price index expected +0.7% m/m and +5.06% y/y, Feb +0.66% m/m and +5.38% y/y.
0945 ETMay Chicago PMI expected +0.1 to 50.5, Apr -3.2 to 50.4.
1000 ETMay U.S. consumer confidence (Conference Board) expected +2.1 to 96.3, Apr -1.9 to 94.2.
1030 ETMay Dallas Fed manufacturing activity expected +5.9 to -8.0, Apr -13.9.
1100 ETUSDA weekly grain export inspections.
1600 ETUSDA Weekly Crop Progress.
JPN0000 ETJapan Apr vehicle production, Mar +1.2% y/y.
0100 ETJapan Apr housing starts expected +4.0% to 950,000 annualized, Mar +8.4% y/y to 993,000 annualized.
0100 ETJapan Apr construction orders, Mar +19.8% y/y.
1950 ETJapan Q1 capital spending expected +1.9% y/y, Q4 +8.5% y/y. Q1 capital spending ex software expected +4.1% y/y, Q4 +8.9% y/y.
2200 ETRevised Japan May Nikkei manufacturing PMI.
GER0200 ETGerman Apr retail sales expected +1.0% m/m and +1.9% y/y, Mar -1.4% m/m and +0.7% y/y.
0355 ETGerman May unemployment change expected -5,000, Apr -16,000. May unemployment rate, Apr 6.2%.
EUR0400 ETEurozone Apr M3 money supply expected +5.0% y/y, Mar +5.0% y/y.
0500 ETEurozone Apr unemployment rate expected unch at 10.2%, Mar -0.2 to 10.2%.
0500 ETEurozone May CPI estimate expected -0.1% y/y, Apr -0.2% y/y. May core CPI expected +0.8% y/y, Apr +0.7% y/y.
UK1901 ETUK May BRC shop price index, Apr -1.7% y/y.
CHI2100 ETChina May manufacturing PMI expected -0.1 to 50.0, Apr -0.1 to 50.1. May non-manufacturing PMI, Apr -0.3 to 53.5.
2145 ETChina May Caixin manufacturing PMI expected -0.2 to 49.2, Apr -0.3 to 49.4.
U.S. STOCK CALENDAR05/31/2016
CompanyTickerTimeEvent DescriptionPeriodEstimate
Golar LNG LtdGLNG USBef-mktQ1 2016 Earnings ReleaseQ1 2016-0.424
Medtronic PLCMDT US6:45Q4 2016 Earnings ReleaseQ4 20161.264
Medtronic PLCMDT US8:00Q4 2016 Earnings CallQ4 2016
Golar LNG LtdGLNG US10:00Q1 2016 Earnings CallQ1 2016
Workday IncWDAY US17:00Q1 2017 Earnings CallQ1 2017
Workday IncWDAY USAft-mktQ1 2017 Earnings ReleaseQ1 2017-0.021
Henry Schein IncHSIC USAnnual General Meeting
Tesla Motors IncTSLA USAnnual General Meeting
Empire State Realty Trust IncESRT USAnnual General Meeting

Wednesday, March 16, 2016

MORNING CALL 3/16

MORNING CALL

OVERNIGHT MARKETS AND NEWS
Jun E-mini S&Ps (ESM16 -0.04%) are unchanged ahead of the outcome of today's FOMC meeting and press conference from Fed Chair Yellen. Gains in mining stocks and energy producers are supporting the overall market as the price of crude oil and copper gain. European stocks are up +0.12% as a rally in automakers leads the market higher after data from the European Automobile Manufacturers' Association showed European new car registrations rose for a 30th month in Feb. Asian stocks settled mixed: Japan -0.83%, Hong Kong -0.15%, China +0.21%, Taiwan +1.02%, Australia +0.15%, Singapore +0.17%, South Korea +0.22%, India +0.53%.
The dollar index (DXY00 +0.25%) is up +0.23%. EUR/USD (^EURUSD) is down -0.20%. USD/JPY (^USDJPY) is up +0.36% as the yen weakened after comments from BOJ Governor Kuroda who said that a negative -0.5% Japanese benchmark rate was a possibility.
Jun T-note prices (ZNM16 +0.06%) are unchanged.
BOJ Governor Kuroda told a Japanese parliamentary committee that "looking at Europe, theoretically, there is a lot of room" to cut the negative interest rate further. He added that a cut in the interest rate to -0.5% was a possibility.
Eurozone Feb new car registrations rose +14.3% y/y t0 1.057 million, the 30th consecutive month that new car registrations have increased.
U.S. STOCK PREVIEW
Key U.S. news today includes: weekly MBA mortgage applications (previous +0.2% with purchase sub-index +4.2% and refi sub-index -2.3%), (2) Feb housing starts (expected +4.6% to 1.150 million, Jan -3.8% to 1.099 million), (3) Feb CPI (expected -0.2% m/m and +0.9% y/y, Jan unch m/m and +1.4% y/y) and Feb CPI ex food & energy (expected +0.2% m/m and +2.2% y/y, Jan +0.3% m/m and +2.2% y/y), (4) Feb industrial production (expected -0.3%, Jan +0.9%), and (5) the FOMC post-meeting statement and a press conference by Fed Chair Yellen.
There are 3 of the Russell 1000 companies that report earnings today: FedEx (consensus $2.34), Williams-Sonoma (1.58), Jabil Circuit (0.60).
U.S. IPO's scheduled to price today: Hutchison China MediTech (HCM).
Equity conferences during the remainder of 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
Oracle (ORCL +0.10%) rallied over 4% in pre-market trading after it reported Q3 adjusted EPS of 64 cents, higher than consensus of 62 cents.
Chipotle Mexican Grill (CMG -2.47%) is down nearly 6% in pre-market trading after it said it expects a Q1 EPS loss of -$1.00, much weaker than consensus for a 3 cent gain.
Kraft Heinz (KHC +0.27%) and Monster Beverage (MNST +0.02%) were both added to the 'Conviction Buy' list at Goldman Sachs.
Valeant Pharmaceuticals International (VRX -51.46%) slid 6% in pre-market trading after the stock plunged more than 51% yesterday.
LinkedIn (LNKD -1.45%) dropped nearly 5% in pre-market trading after it was downgraded to 'Equalweight' from 'Overweight' at Morgan Stanley.
Achaogen (AKAO -1.63%) was downgraded to 'Hold' from 'Buy' at Needham & Co.
Casey's General Stores (CASY +0.80%) reported that its February same-store-sales for grocery and other merchandise rose +12% y/y.
Relypsa (RLYP -9.95%) climbed over 3% in after-hours trading after it reported that 812 new patients started taking its Veltassa last month versus 409 in January.
Caleres (CAL -0.79%) dropped over 8% in after-hours trading after it lowered guidance on full-year adjusted EPS to $2.00-$2.10, below consensus of $2.22.
Osiris Therapeutics (OSIR -4.29%) reported that it received a subpoena from the SEC about its accounting practices.
Xcel Brands (XELB +4.58%) jumped nearly 7% in after-hours trading after it reported Q4 adjusted EPS of 10 cents, higher than consensus of 7 cents.
Tronox Ltd. (TROX -6.96%) rose over 3% in after-hours trading on signs of insider buying after Tronox SVP Willlem Van Niekerk reported that he bought another 4,600 shares of stock.
MARKET COMMENTS
Jun E-mini S&Ps (ESM16 -0.04%) this morning are unchanged. Tuesday's closes: S&P 500 -0.18%, Dow Jones +0.13%, Nasdaq -0.01%. The S&P 500 on Tuesday closed lower on concern about weak consumer spending after the Feb retail sales report of -0.1% and -0.1% ex-autos and the downward revision in Jan retail sales to -0.4% and -0.4% ex-autos from +0.2% and +0.1% ex-autos. There was also weakness in energy producers after crude oil dropped to a 1-week low.
Jun 10-year T-notes (ZNM16 +0.06%) this morning are unchanged. Tuesday's closes: TYM6 -0.50, FVM6 -2.25. Jun T-notes on Tuesday closed little changed. T-notes were undercut by the +17.26 point increase in the Mar Empire manufacturing survey of business conditions to an 8-month high of 0.62 (stronger than expectations of +6.14 to -10.50) and by some position-squaring ahead of Wednesday's FOMC meeting outcome, which could be a bit more hawkish in tone than the market expects. T-notes received support from the weak retail sales report and March NAHB housing index report and by the mildly lower close in stocks.
The dollar index (DXY00 +0.25%) this morning is up +0.223 (+0.23%). EUR/USD (^EURUSD) is down -0.0022 (-0.20%). USD/JPY (^USDJPY) is up +0.41 (+0.26%). Tuesday's closes: Dollar Index +0.009 (+0.01%), EUR/USD +0.0006 (+0.05%), USD/JPY -0.64 (-0.56%). The dollar index on Tuesday closed little changed. The dollar received a boost from the stronger-than-expected Mar Empire manufacturing survey business conditions index that rose to an 8-month high and bolstered the case for the Fed to keep raising interest rates. However, the dollar index was undercut by the weak U.S. retail sales report and by some strength in the yen which received a boost after the BOJ left its policy unchanged and refrained from expanding stimulus measures.
Apr WTI crude (CLJ16 +2.09%) this morning is up +72 cents (+1.98%) and Apr gasoline (RBJ16 +0.48%) is up +0.0027 (+0.19%). Tuesday's closes: CLJ6 -0.84 (-2.26%), RBJ6 -0.0146 (-1.03%). Apr crude and gasoline on Tuesday closed lower with Apr crude at a 1-week low. Crude oil prices were undercut by Russian Energy Minister Novak's comment that Iran has "reasonable arguments" for not joining other major producers in freezing production and by expectations for Wednesday's weekly EIA crude inventories to increase by +2.75 million bbl.
GLOBAL EVENT CALENDAR03/16/2016
US0700 ETWeekly MBA mortgage applications, previous +0.2% with purchase sub-index +4.2% and refi sub-index -2.3%.
0830 ETFeb housing starts expected +4.6% to 1.150 million, Jan -3.8% to 1.099 million. Feb building permits expected 0.2% to 1.200 million, Jan unch at 1.202 million.
0830 ETFeb CPI expected -0.2% m/m and +0.9% y/y, Jan unch m/m and +1.4% y/y. Feb CPI ex food & energy expected +0.2% m/m and +2.2% y/y, Jan +0.3% m/m and +2.2% y/y.
0915 ETFeb industrial production expected -0.3%, Jan +0.9%. Feb manufacturing production expected +0.1%, Jan +0.5%. Feb capacity utilization expected -0.2 to 76.9%, Jan 77.1%.
1030 ETEIA Weekly Petroleum Status Report.
1400 ETFOMC announces interest rate decision; no change expected to the 0.25%-0.50% fed funds rate target.
1430 ETFed Chair Janet Yellen holds press conference following FOMC meeting.
JPN0200 ETRevised Japan Feb machine tool orders.
1950 ETJapan Feb trade balance expected +400.2 billion yen, Jan -648.5 billion yen. Feb exports expected -3.0% y/y, Jan -12.9% y/y. Feb imports expected -15.8% y/y, Jan -17.8% y/y.
EUR0300 ETEurozone Feb new car registrations, Jan +6.2% y/y.
0600 ETEurozone Jan construction output, Dec -0.6% m/m and -0.4% y/y.
UK0530 ETUK Feb jobless claims change expected -9,100, Jan -14,800. Feb claimant count rate expected unch at 2.2%.
0530 ETUK Jan avg weekly earnings expected +2.0% 3-month avg y/y, Dec +1.9% 3-month avg y/y.
0530 ETUK Jan avg weekly earnings ex-bonus expected +2.1% 3-month avg y/y, Dec +2.0% 3-month avg y/y.
0530 ETUK Jan ILO unemployment rate expected unch at 5.1% for the three months through Jan, previous 5.1% for the 3-months through Dec.
U.S. STOCK CALENDAR03/16/2016
CompanyTickerTimeEvent DescriptionPeriodEstimate
Mallinckrodt PLCMNK US5:30Annual General Meeting
ARRIS International PLCARRS US8:00Investor & Analyst DayY 2016
MDU Resources Group IncMDU US9:00Investor MeetingY 2016
Expedia IncEXPE US10:00Investor & Analyst MeetingY 2016
Jabil Circuit IncJBL US16:02Q2 2016 Earnings ReleaseQ2 20160.596
FedEx CorpFDX US16:15Q3 2016 Earnings ReleaseQ3 20162.337
Jabil Circuit IncJBL US16:30Q2 2016 Earnings CallQ2 2016
FedEx CorpFDX US17:00Q3 2016 Earnings CallQ3 2016
Williams-Sonoma IncWSM US17:00Q4 2016 Earnings CallQ4 2016
Williams-Sonoma IncWSM USAft-mktQ4 2016 Earnings ReleaseQ4 20161.582
Progressive Corp/ThePGR USFebruary 2016 Sales and Revenue Release2016
Questar CorpSTR USRoadshow - New YorkY 2016
Agilent Technologies IncA USAnnual General Meeting