MORNING CALL 12/21

Barchart Morning Call

Barchart.com - 3 hours ago

OVERNIGHT MARKETS AND NEWS

Mar E-mini S&Ps (ESH17 -0.08%) are little changed, down -0.07% in uninspired trade, and European stocks are down -0.37% on weakness in bank stocks. Spanish bank stocks sold-off, with Banco Sabadell SA down over 7% and Banco Popular down 10%, which put pressure on the overall market after the EU Court of Justice ruled that borrowers in Spain who paid too much interest on home loans pre-dating a May 2013 Spanish court ruling on mortgage floors are entitled to a refund from their banks. Stock losses were contained on strength in energy producing companies as Feb WTI crude oil (CLG17 +0.56%) is up +0.68% after the API reported late yesterday that U.S. crude supplies dropped -4.15 million bbl last week. Also, reduced market anxiety is positive for stock prices as the VIX volatility index slid to a 4-1/4 month low. Asian stocks settled mixed: Japan -0.26%, Hong Kong +0.37%, China +1.11%, Taiwan -0.41%, Australia +0.40%, Singapore -0.33%, South Korea -0.19%, India -0.25%. Japan's Nikkei Stock Index posted a new 1-year high, but gave up its advance and closed lower as the yen strengthened against the dollar, which undercut exporter stocks.

The dollar index (DXY00 -0.35%) is down -0.15%. EUR/USD (^EURUSD) is up +0.21%. USD/JPY (^USDJPY) is down -0.48%.

Mar 10-year T-note prices (ZNH17 +0.05%) are up +2 ticks and garnered support from a rally in German bunds which climbed to a 3-week high.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly MBA mortgage applications (previous -4.0% with purchase sub-index -3.3% and refi sub-index -3.6%), (2) Nov existing home sales (expected -1.8% to 5.50 million, Oct +2.0% to 5.60 million), (3) EIA Weekly Petroleum Status Report.

Russell 1000 earnings reports today include: Accenture (consensus $1.50), Paychex (0.56), Bed Bath & Beyond (0.98), Red Hat (0.58), Micron Technology (0.27), Orbital ATK (1.39).

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

Equity conferences this week: none.

OVERNIGHT U.S. STOCK MOVERS

Goldman Sachs (GS +1.68%) was downgraded to 'Neutral' from 'Overweight' at Atlantic Securities with a 12-month target price of $240.

JetBlue Airways (JBLU +1.24%) was downgraded to 'Market Perform' from 'Outperform' at Raymond James.

Sunoco LP (SUN -8.02%) was upgraded to 'Outperform' from 'Neutral' at Credit Suisse with a target price of $31.

Goldcorp (GG -0.40%) was upgraded to 'Buy' from 'Hold' at TD Securities with a 12-month target price of $18.50.

Texas Instruments (TXN +0.64%) was rated a new 'Positive' at Susquehanna with a 12-month target price of $85.

Fluor (FLR -0.57%) gained 1% in after-hours trading after it was awarded a contract by Novo Nordisk to build a $2 billion manufacturing facility in Clayton, North Carolina.

BB&T (BBT +1.69%) boosted its 2016/17 share buyback program by $200 million.

Nike (NKE +1.85%) climbed 3% in after-hours trading after it reported Q2 EPS of 50 cents, higher than consensus of 43 cents. Under Armour (UAA -0.33%) also gained 1% on the news.

FedEx (FDX +0.57%) dropped 3% in after-hours trading after it reported Q2 adjusted EPS of $2.80, weaker than consensus of $2.91.

DexCom (DXCM +0.08%) gained almost 2% in after-hours trading after the FDA approved its G5 Mobile CGM system as the first and only continuous glucose monitoring system that can be used without finger pricking to test glucose levels.

Steelcase (SCS +3.38%) slumped 8% in after-hours trading after it reported Q3 revenue of $786.5 million, less than consensus of $787 million, and then lowered guidance on Q4 revenue to $735 million-$760 million, below consensus of $762 million.

MARKET COMMENTS

Mar E-mini S&Ps (ESH17 -0.08%) this morning are down -1.50 points (-0.07%). Tuesday's closes: S&P 500 +0.36%, Dow Jones +0.46%, Nasdaq +0.38%. The S&P 500 on Tuesday closed higher on carry-over support from a rally in Japan's Nikkei Stock Index to a 1-year high after Japan's Cabinet Office raised its Japan 2017 GDP forecast to 1.5% from +1.2%. In addition, energy producer stocks were boosted as the price of crude oil rose +0.85%.

Mar 10-year T-notes (ZNH17 +0.05%) this morning are up +2 ticks. Tuesday's closes: TYH7 -4.50, FVH7 -2.25. Mar 10-year T-notes on Tuesday closed lower on reduced safe-haven demand with the rally in stocks and on higher inflation expectations from the rally in crude oil prices.

The dollar index (DXY00 -0.35%) this morning is down -0.160 (-0.15%). EUR/USD (^EURUSD) is up +0.0022 (+0.21%). USD/JPY (^USDJPY) is down -0.57 (-0.48%). Tuesday's closes: Dollar index +0.150 (+0.15%), EUR/USD -0.0014 (-0.13%), USD/JPY +0.77 (+0.66%). The dollar index on Tuesday rallied to a 14-year high and closed higher on the increase in the 10-year T-note yield. In addition, there was strength in USD/JPY after the BOJ maintained its asset-purchase program and Japan's Cabinet Office lowered its Japan 2017 CPI estimate, which bolsters the case for additional BOJ easing.

Feb WTI crude oil prices (CLG17 +0.56%) this morning are up +36 cents (+0.68%) and Feb gasoline (RBG17 +0.35%) is +0.0059 (+0.37%) at a new 1-1/2 month high. Tuesday's closes: Feb crude +0.45 (+0.85%), Feb gasoline +0.0349 (+2.20%). Feb crude oil and gasoline on Tuesday closed higher with Feb gasoline at a 1-1/2 month high. Crude oil prices were boosted by expectations for Wednesday's EIA crude inventories to decline by -2.5 million bbl and by the increase in the crack spread to a 1-1/2 month high, which may boost refinery demand for crude to refine into gasoline. Crude oil prices were undercut by the rise in the dollar index to a 14-year high.

GLOBAL EVENT CALENDAR12/21/2016

		Wednesday, Dec 21
US	0700 ET	Weekly MBA mortgage applications, previous -4.0% with purchase sub-index -3.3% and refi sub-index -3.6%.
	1000 ET	Nov existing home sales expected -1.8% to 5.50 million, Oct +2.0% to 5.60 million.
	1030 ET	EIA Weekly Petroleum Status Report.
		Thursday, Dec 22
US	0830 ET	Weekly initial unemployment claims expected +3,000 to 257,000, previous -4,000 to 254,000. Weekly continuing claims expected -8,000 to 2.010 million, previous +11,000 to 2.018 million.
	0830 ET	Revised Q3 GDP expected 3.3% (q/q annualized), previous +3.2%. Q3 personal consumption expected unrevised at +2.8%. Q3 GDP price index expected unrevised at +1.4%. Q3 core PCE expected unrevised at +1.7% q/q.
	0830 ET	Nov durable goods orders expected -4.9% and +0.2% ex transportation, Oct +4.6% and +0.8% ex transportation. Nov capital goods new orders nondefense ex aircraft expected +0.4%, Oct +0.2%.
	0830 ET	Nov Chicago Fed national activity index expected -0.02 to -0.10, Oct +0.15 to -0.08.
	0830 ET	USDA weekly Export Sales.
	0900 ET	Oct FHFA house price index expected +0.5% m/m, Sep +0.6% m/m.
	1000 ET	Nov personal spending expected +0.3%, Oct +0.3%. Nov personal income expected +0.3%, Oct +0.6%.
	1000 ET	Nov PCE deflator expected +0.2% m/m and +1.5% y/y, Oct +0.2% m/m and +1.4% y/y. Nov core PCE deflator expected +0.1% m/m and +1.7% y/y, Oct +0.1% m/m and +1.7% y/y.
	1000 ET	Nov leading indicators expected +0.1%, Oct +0.1%.
	1100 ET	Dec Kansas City Fed manufacturing activity expected +3 to 4, Nov -5 to 1.
	1100 ET	Treasury announces amount of 2-year T-notes (previous $26 billion), 2-year floating-rate notes (previous $13 billion), 5-year T-notes (previous $34 billion) and 7-year T-notes (previous $28 billion) to be auctioned Dec 27-29.
	1300 ET	Treasury auctions $14 billion of 5-year TIPS.

U.S. STOCK CALENDAR12/21/2016

Company	Ticker	Time	Event Description	Period	Estimate
Paychex Inc	PAYX US	Bef-mkt	Q2 2017 Earnings Release	Q2 2017	0.555
Accenture PLC	ACN US	6:59	Q1 2017 Earnings Release	Q1 2017	1.496
Accenture PLC	ACN US	8:00	Q1 2017 Earnings Call	Q1 2017
Paychex Inc	PAYX US	9:30	Q2 2017 Earnings Call	Q2 2017
Bed Bath & Beyond Inc	BBBY US	16:15	Q3 2017 Earnings Release	Q3 2017	0.984
Red Hat Inc	RHT US	16:15	Q3 2017 Earnings Release	Q3 2017	0.579
Micron Technology Inc	MU US	16:30	Q1 2017 Earnings Call	Q1 2017
Bed Bath & Beyond Inc	BBBY US	17:00	Q3 2017 Earnings Call	Q3 2017
Red Hat Inc	RHT US	17:00	Q3 2017 Earnings Call	Q3 2017
Micron Technology Inc	MU US	Aft-mkt	Q1 2017 Earnings Release	Q1 2017	0.269
Orbital ATK Inc	OA US		Q3 2016 Earnings Release	Q3 2016	1.386
Raymond James Financial Inc	RJF US		November 2016 Sales and Revenue Release - Operating Data	2016

The 5 Best NASDAQ 100 stocks for Momentum Investors

Today I used Barchart to sort the NASDAQ 100 Index stocks first for the highest short term buy signals, then I used the Flipchart feature to review the charts for consistency.  Today's additions to the Watchlist include:

SBA Communications (SBAC), Paychex (PAYX), Netease (NTES), Intuitive Surgical (ISRG) and Intuit (INTU)

SBA Communications (SBAC)

Barchart technical indicators:

• 100% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 9 new highs and up 8.69% in the last month
• Relative Strength Index 62.51%
• Technical support level at 103.31
• Recently traded at 107.44 with a 50 day moving average of 101.47

Paychex (PAYX)

Barchart technical indicators:

• 100% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 8 new highs and up 3.33% in the last month
• Relative Strength Index 61.18%
• Technical support level at 55.49
• Recently traded at 56.14 with a 50 day moving average of 53.55

Netease (NTES)

Barchart technical indicators:

• 100% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 2 new highs and up 3.24% in the last month
• Relative Strength Index 67.13%
• Technical support level at 167.83
• Recently traded at 657.72 with a 50 day moving average of 636.00

Intuitive Surgical (ISRG)

Barchart technical indicators:

• 88% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 6 new highs and up 3.21% in the last month
• Relative Strength Index 59.03%
• Technical support level at 633.01
• Recently traded at 657.72 with a 50 day moving average of 636.00

Intuit (INTU)

Barcart technical indicators:

• 96% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 4 new highs and up 1.30% for the last month
• Relative Strength Index 58.40%
• Technical support level at 105.66
• Recently traded at 109.29 with a 50 day moving average of 104.68

MORNING CALL 6/30

MORNING CALL

Thursday, June 30th, 2016View Older Reports

Everything you need to know about the markets in one free daily newsletter.

E-mail:  

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OVERNIGHT MARKETS AND NEWS

Sep E-mini S&Ps (ESU16 +0.17%) are up +0.25% and European stocks are up +0.80%. A rally in U.S. bank stocks is leading the overall market higher with Goldman Sachs, Bank of America and Citigroup all up over 1% in pre-market trading after they passed the Fed's annual stress tests and said they will increase their stock buyback programs. A +0.16% gain in copper prices (HGU16 -0.05%) to a 1-3/4 month high is giving European mining stocks a lift, as is data that showed German May retail sales rose +0.9% m/m, the biggest increase in 10 months. Asian stocks settled mostly higher: Japan +0.06%, Hong Kong +1,75%, China -0.07%, Taiwan +0.93%, Australia +1,77%, Singapore +1.73%, South Korea +0.75%, India +0.97%.

The dollar index (DXY00 -0.33%) is down -0.31%. EUR/USD (^EURUSD) is up +0.16% after Eurozone Jun CPI rose more than expected, which reduces the chances of additional ECB stimulus. USD/JPY (^USDJPY) is down -0.04%.

Sep T-note prices (ZNU16 -0.26%) are down -13.5 ticks.

German May retail sales rose +0.9% m/m, stronger than expectations of +0.6% m/m and the largest increase in 10 months.

The Eurozone Jun CPI estimate rose +0.1% y/y, stronger than expectations of unch y/y. The Jun core CPI rose +0.9% y/y, stronger than expectations of +0.8% y/y.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly initial unemployment claims (expected +8,000 to 267,000, previous -18,000 to 259,000) and continuing claims (expected +9,000 to 2.151 million, previous -20,000 to 2.142 million), (2) Jun Chicago PMI (expected +1.7 to 51.0, May -1.1 to 49.3), (3) St. Louis Fed President James Bullard speaks at the Society of Business Economists’ dinner in London, (4) USDA weekly Export Sales, and (5) USDA Q2 Quarterly Grain Stocks and 2016 U.S. planted acreage.

There are 7 of the Russell 1000 companies report earnings today: McCormick (consensus $0.74), Paychex (0.49), Constellation Brands (1.52), Darden Restaurants (1.09), ConAgra Foods (0.52), Micron Technology (-0.10), Alere (0.58).

U.S. IPO's scheduled to price today: Tactile Systems Technology (TCMD)

Equity conferences during the remainder of this week include: none.

OVERNIGHT U.S. STOCK MOVERS

JPMorgan Chase (JPM +2.82%) , Bank of America (BAC +3.86%) ,and Goldman Sachs (GS +2.17%) all rose over 1% in pre-market trading after they passed the Fed's CCAR stress tests without conditions.

Marriott International (MAR +3.69%) was upgraded to 'Buy' from 'Hold' at Evercore ISI with a price target of $75.

American International Group (AIG +3.29%) was upgraded to 'Overweight' from 'Neutral' at Atlantic Equities with a 12-month price target of $60.

Progress Software (PRGS +1.74%) rallied 5% in after-hours trading after it reported Q2 adjusted EPS of 33 cents, higher than consensus of 29 cents.

CIT Group (CIT +4.28%) climbed 6% in after-hours trading after it sold its Canadian Equipment Finance and Corporate Finance businesses to Laurentian Bank of Canada.

Pier 1 Imports (PIR +4.02%) slid 3% in after-hours trading after it lowered guidance on full-year adjusted EPS to 32 cents-40 cents from an April 13 view of 42 cents-50 cents.

Shutterstock (SSTK +4.47%) rose over 1% in after-hours trading after it was announced that it will replace Southwest Gas in the S&P Smallcap 600.

Alliant Energy (LNT +0.03%) gained 0.5% in after-hours trading after it was announced that it will replace AGL Resources in the S&P 500 after the close of trading on Thursday, June 30.

Tractor Supply (TSCO +1.06%) dropped over 7% in after-hours trading after it reported Q2 revenue of $1.85 billion, below consensus of $1.93 billion, and then lowered guidance on full-year EPS to $3.35-$3.40 from a prior view of $3.40-$3.48.

Citigroup (C +4.15%) rose over 2% in after-hours trading after it announced a $8.6 billion stock buyback and said it will lift its quarterly dividend to 16 cents from 5 cents.

Stone Energy (SGY +4.03%) jumped over 7% in after-hours trading after it said it ended its pact with ESV and ended its contract with Midstream and entered into a new gas gathering, processing pact with Williams at Mary Field in Appalachia.

Care.com (CRCM +2.79%) surged 18% in after-hours trading after it received a $46.35 million investment from Google Capital, who will add a representative to CRCM's board and is now the company's largest shareholder.

MARKET COMMENTS

September E-mini S&Ps (ESU16 +0.17%) this morning are up +5.25 points (+0.25%). Wednesday's closes: S&P 500 +1.70%, Dow Jones +1.64%, Nasdaq +1.73%. The S&P 500 on Wednesday closed sharply higher on reduced Brexit concerns on speculation global central banks will take the necessary measures to mitigate the damage done by the UK's decision to leave the European Union. Stocks were also boosted by the as-expected +0.4% increase in U.S. May personal spending and by strength in energy producers after crude oil prices climbed +4.24%. Stocks were undercut by the-3.7% m/m decline in U.S. May pending home sales, the largest monthly decline in 6 years.

Sep 10-year T-note prices (ZNU16 -0.26%) this morning are down -13.5 ticks. Wednesday's closes: TYU6 -6.00. FVU6 -4.00. Sep T-notes on Wednesday closed lower on reduced safe-haven demand with the 2-day recovery rally in stocks and the Atlanta Fed's hike in its U.S. Q2 GDP estimate to 2.7% from a previous estimate of 2.6%.

The dollar index (DXY00 -0.33%) this morning is down -0.296 (-0.31%). EUR/USD (^EURUSD) is up +0.0018 (+0.16%). USD/JPY (^USDJPY) is down-0.04 (-0.04%). Wednesday's closes: Dollar Index -0.476 (-0.49%), EUR/USD +0.0060 (+0.54%), USD/JPY +0.08 (+0.08%). The dollar index on Wednesday closed lower on the weaker-than-expected U.S. May pending home sales report of -3.7% and the as-expected increase in German Jun CPI, which may keep the ECB from expanding stimulus and boosted EUR/USD.

Aug WTI crude oil (CLQ16 -1.06%) this morning is down -43 cents (-0.86%). Aug gasoline (RBQ16 -0.13%) is up +0.0002 (+0.01%). Wednesday's closes: CLQ6 +2.03 (+4.24%), RBQ6 +0.0184 (+1.21%). Aug crude oil and gasoline on Wednesday settled higher on the weaker dollar and the -4.05million bbl decline in EIA crude inventories (vs expectations of -2.5 million bbl). Crude oil was also boosted by the -0.6% drop in U.S. crude production in the week ended Jun 24 to a 1-3/4 year low of 8.622 million bpd. Gasoline prices were undercut on news that EIA gasoline stockpiles unexpectedly rose +1.37 million bbl, more than expectations for a -300,000 bbl decline.

GLOBAL EVENT CALENDAR06/30/2016

		Thursday, June 30, 2016
US	0830 ET	Weekly initial unemployment claims expected +8,000 to 267,000, previous -18,000 to 259,000. Weekly continuing claims expected +9,000 to 2.151 million, previous -20,000 to 2.142 million.
	0830 ET	USDA weekly Export Sales.
	0945 ET	Jun Chicago PMI expected +1.7 to 51.0, May -1.1 to 49.3.
	1200 ET	USDA Q2 Quarterly Grain Stocks and 2016 U.S. planted acreage.
	1330 ET	St. Louis Fed President James Bullard speaks at the Society of Business Economists dinner in London.
CHI	2100 ET	China Jun manufacturing PMI expected -0.1 to 50.0, May unch at 50.1. Jun non-manufacturing PMI, May -0.4 to 53.1.
	2145 ET	China Jun Caixin manufacturing PMI expected unch at 49.2, May -0.2 to 49.2.
		Friday, July 1, 2016
US	0945 ET	Final-Jun Markit manufacturing PMI expected -0.1 to 51.3, prelim-Jun +0.7 to 51.4.
	1000 ET	Jun ISM manufacturing index expected +0.1 to 51.4, May +0.5 to 51.3. Jun ISM new orders, May -0.1 to 55.7. Jun ISM employment, May unch at 49.2. Jun ISM prices paid expected +0.1 to 63.6, May +4.5 to 63.5.
	1000 ET	May construction spending expected +0.6%, Apr -1.8% m/m.
	n/a	Jun total vehicle sales expected 17.29 million, May 17.37 million. Jun domestic vehicle sales expected 13.40 million, May 13.33 million.
JPN	0100 ET	Japan Jun vehicle sales, May +6.6% y/y.
	0100 ET	Japan Jun consumer confidence index expected +0.2 to 41.1, May 40.9.
GER	0355 ET	Revised German Jun Markit/BME manufacturing PMI, prelim-Jun +2.3 to 54.4.
EUR	0400 ET	Revised Eurozone Jun Markit manufacturing PMI, prelim-Jun +1.1 to 52.6.
	0500 ET	Eurozone May unemployment rate expected -0.1 to 10.1%, Apr unch at 10.2%.
UK	0430 ET	UK Jun Markit manufacturing PMI expected +0.1 to 50.2, May +0.7 to 50.1.
	0430 ET	UK Q1 labor costs expected +1.5% y/y, Q4 +1.3% y/y.

U.S. STOCK CALENDAR06/30/2016

Company	Ticker	Time	Event Description	Period	Estimate
McCormick & Co Inc/MD	MKC	Bef-mkt	Q2 2016 Earnings Release	Q2 2016	0.741
Paychex Inc	PAYX	Bef-mkt	Q4 2016 Earnings Release	Q4 2016	0.489
Constellation Brands Inc	STZ	Bef-mkt	Q1 2017 Earnings Release	Q1 2017	1.519
Darden Restaurants Inc	DRI	Bef-mkt	Q4 2016 Earnings Release	Q4 2016	1.085
ConAgra Foods Inc	CAG	7:30	Q4 2016 Earnings Release	Q4 2016	0.522
McCormick & Co Inc/MD	MKC	8:00	Q2 2016 Earnings Call	Q2 2016
Darden Restaurants Inc	DRI	8:30	Q4 2016 Earnings Call	Q4 2016
ConAgra Foods Inc	CAG	9:30	Q4 2016 Earnings Call	Q4 2016
Paychex Inc	PAYX	9:30	Q4 2016 Earnings Call	Q4 2016
Constellation Brands Inc	STZ	10:30	Q1 2017 Earnings Call	Q1 2017
Red Hat Inc	RHT	13:30	Analyst Day	Y 2016
Micron Technology Inc	MU	16:00	Q3 2016 Earnings Release	Q3 2016	-0.095
Micron Technology Inc	MU	16:30	Q3 2016 Earnings Call	Q3 2016
Yahoo! Inc	YHOO	17:00	Annual General Meeting
Rowan Cos Plc	RDC		Extraordinary Shareholders Meeting
Rowan Cos Plc	RDC		Special Meeting
Alere Inc	ALR		Q4 2015 Earnings Release	Q4 2015	0.583

The 5 Best NASDAQ 100 Stocks for Momentum Investors

I have received requests to use short term technical screening criteria so momentum stocks are identified earlier.  Today I used Barchart to sort the NASDAQ 100 Index stocks first for the highest number of new highs in the last month, then again for the highest short term technical buy signals.  Next I used the Flipchart feature to review the charts.  Today's list includes:

Intuitive Surgical (ISRG), Applied Materials (AMAT), Paychex (PAYX), Charter Communications (CHTR) and Tesla Motors (TSLA)

Intuitive Surgical (ISRG)

Barchart technical indicators:

• 14 new highs and up 9.76% in the last month
• Trend Spotter buy signal
• 80% short term technical buy signals
• Relative Strength Index 66.38%
• Recently traded at 587.38 with a technical support level at 581.96

Applied Materials (AMAT)

Barchart technical indicators:

• 14 new highs and up 19.92% in the last month
• Trend Spotter buy signal
• 80% short term technical buy signals
• Relative Strength Index 67.48%
• Recently traded at 20.05 with a technical support level at 19.87

Paychex (PAYX)

Barchart technical indicators:

• 14 new highs and up 6.62% in the last month
• Trend Spotter buy signal
• 100% short term technical buy signals
• Relative Strength Index 66.60%
• Recently traded at 53.30 with a technical support level at 52.91

Charter Communications (CHTR)

Barchart technical indicators:

• 14 new highs and up 17.30% in the last month
• Trend Spotter buy signal
• 100% short term technical buy signals
• Relative Strength Index 70.81%
• Recently traded at 198.16 with a technical support level at 190.51

Tesla Motors (TSLA)

Barchart technical indicators:

• 14 new highs and up 43.02% in the last month
• Trend Spotter buy signal
• 80% short term technical buy signals
• Relative Strength Index 71.77%
• Recently traded at 221.93 with a technical support level at 218.44

MORNING CALL 12/22

MORNING CALL

Tuesday, December 22nd, 2015View Older Reports

Everything you need to know about the markets in one free daily newsletter.

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You will also receive a free subscription to the Barchart family of newsletters.

OVERNIGHT MARKETS AND NEWS

March E-mini S&Ps (ESH16 +0.02%) are up +0.02%and European stocks are up +0.09%% as crude oil prices (CLG16 +0.20%) gained +0.45% in overnight trading. European stocks also found support after German Dec GfK consumer confidence unexpectedly rose. Gains in stocks were limited as weaker metals prices undercut miners and raw-material producers. Asian stocks settled mixed: Japan -0.16%, Hong Kong +0.18%, China +0.26%, Taiwan +0.13%, Australia +0.15%, Singapore +0.26%, South Korea +0.71%, India -0.56%. China's Shanghai Composite eked out a new 3-week high on positive carryover from Monday when the Chinese government signaled more stimulus measures.

The dollar index (DXY00 -0.12%) is down -0.13%. EUR/USD (^EURUSD) is up +0.26 % after German Nov import prices fell less than expected and German Dec GfK consumer confidence unexpectedly rose. USD/JPY (^USDJPY) is down -0.21%.

Mar T-note prices (ZNH16 -0.02%) are down -2.5 ticks.

German Dec GfK consumer confidence unexpectedly rose +0.1 to 9.4, stronger than expectations of unch at 9.3.

The German Nov import price index fell -0.2% m/m and -3.5% y/y, a slower pace of decline than expectations of -0.2% m/m and -3.7% y/y.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Q3 GDP (expected revised to +1.9% from +2.1%), (2) Oct FHFA house price index (expected +0.5% m/m, Sep +0.8% m/m), (3) Nov existing home sales (expected -0.4% at 5.34 million, Oct -3.4% to 5.36 million), (4) Dec Richmond Fed manufacturing survey (expected +2 to -1, Nov -2 to -3).

There are 4 of the Russell 1000 companies that report earnings today: ConAgra Foods (consensus $0.60), Paychex (0.51), NIKE (0.86), Micron Technology (0.23).

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

Equity conferences this week: none.

OVERNIGHT U.S. STOCK MOVERS

Express Scripts Holdings (ESRX +1.78%) rose over 1% in pre-market trading after it gave guidance on fiscal 2016 adjusted EPS of $6.08-$6.28, above consensus of $6.05.

American Express (AXP +0.78%) was rated new 'Market Perform' at JMP Securities.

Chipolte Mexican Grill (CMG -3.52%) was downgraded to 'Neutral' from 'Overweight' at JPMorgan Chase.

Whiting Petroleum (WLL -8.58%) was downgraded to 'Market Perform' from 'Outperform' at BMO.

Alaska Air Group (ALK +3.19%) was downgraded to 'Hod' from 'Buy' at Stifel.

Box Inc. (BOX +0.36%) was rated new 'Market Outperform' at JMP Securities with a 12-month price target of $18.

NetApp (NTAP unch) said it will acquire SolidFire for $870 million.

Pfizer (PFE +1.47%) reported that a Phase 3 study of its Pristiq drug did demonstrate superior efficacy versus a placebo in pediatric patients ages 7 to 17 with Major Depressive Disorder.

Cintas (CTAS +0.80%) rallied over 1% in after-hours trading after it reported Q2 continuing operations EPS of $1.03, better than consensus of $1.00.

Steelcase (SCS +3.00%) slumped over 15% in after-hours trading after reported Q3 adjusted EPS of 30 cents, below consensus of 33 cents, and then lowered guidance on Q4 adjusted EPS to 20 cents-24 cents, weaker than consensus of 26 cents.

Stone Energy (SGY -14.36%) slid nearly 2% in after-hours trading after it lowered its Q4 production forecast to 23-24 Mboepd (thousand barrels of oil equivalents per day) from 25-26 Mboepd.

Alexza Pharmaceuticals (ALXA -2.22%) soared over 30% in after-hours trading after it said it was "encouraged" by data in a Phase 2a study of it AZ-002drug being developed for the management of epilepsy in patients with acute repetitive seizures.

MARKET COMMENTS

Mar E-mini S&Ps (ESH16 +0.02%) this morning are up +0.50 of a point (+0.02%). Monday's closes: S&P 500 +0.78%, Dow Jones +0.72%, Nasdaq +1.01%. The S&P 500 on Monday closed higher on positive carryover from a +1.77% increase in China's Shanghai Composite on speculation China may boost stimulus measures after a statement from the government's Central Economic Work Conference said that monetary policy must be more "flexible" and fiscal policy more "forceful." There was also strength in mining and raw-material producing stocks after metals prices rallied.

Mar 10-year T-notes (ZNH16 -0.02%) this morning are down -2.5 ticks. Monday's closes: TYH6 +2.50, FVH6 +2.25. Mar T-notes on Monday settled higher on the fall in crude oil prices to a 6-3/4 year low, which undercuts inflation expectations, and on the weaker-than-expected Nov Chicago Fed national activity index. T-notes were undercut by a rally in stocks curbed the safe-haven demand for T-notes.

The dollar index (DXY00 -0.12%) this morning is down -0.132 (-0.13%). EUR/USD (^EURUSD) is up +0.0028 (+0.26%). USD/JPY (^USDJPY) is down-0.26 (-0.21%). Monday's closes: Dollar Index -0.340 (-0.34%), EUR/USD +0.0047 (+0.43%), USD/JPY +0.03 (+0.02%). The dollar index on Monday closed lower on the weaker-than-expected Nov Chicago Fed national activity index, which fell to a 6-month low, and on strength in EUR/USD after Eurozone Dec consumer confidence unexpectedly climbed to a 6-month high.

Feb crude oil (CLG16 +0.20%) this morning is up +16 cents (+0.45%) and Feb gasoline (RBG16 -1.86%) is down -0.0237 (-1.95%). Monday's closes: CLG6 +0.01 (+0.03%), RBG6 -0.0627 (-4.94%). Feb crude oil and gasoline on Monday settled mixed with nearest-futures (F16) crude at a new 6-3/4 year low and Feb gasoline at a 1-1/2 week low. Crude oil prices were undercut by concern that energy stockpiles may increase further as the above-normal winter temperatures in the U.S. reduce demand for heating fuels. Crude oil prices recovered from their worst levels as a weak dollar spurred short covering in crude futures.

GLOBAL EVENT CALENDAR12/22/2015

US	0830 ET	Q3 GDP expected revised to +1.9% from +2.1% (q/q annualized). Q3 personal consumption expected revised to +2.9% from +3.0%. Q3 GDP price index expected unrevised from +1.3%. Q3 core PCE expected unrevised from +1.3% q/q.
	0900 ET	Oct FHFA house price index expected +0.5% m/m, Sep +0.8% m/m.
	1000 ET	Nov existing home sales expected -0.4% at 5.34 million, Oct -3.4% to 5.36 million.
	1000 ET	Dec Richmond Fed manufacturing survey expected +2 to -1, Nov -2 to -3.
	1500 ET	USDA Nov Cold Storage.
GER	0200 ET	German Jan GfK consumer confidence expected unch at 9.3.
	0200 ET	German Nov import price index expected -0.2% m/m and -3.7% y/y, Oct -0.3% m/m and -4.1% y/y.
UK	0430 ET	UK Nov public sector net borrowing expected +11.1 billion pounds, Oct +7.5 billion pounds.

U.S. STOCK CALENDAR12/22/2015

Company	Ticker	Time	Event Description	Period	Estimate
ConAgra Foods Inc	CAG US	7:30	Q2 2016 Earnings Release	Q2 2016	0.598
Paychex Inc	PAYX US	8:30	Q2 2016 Earnings Release	Q2 2016	0.513
Express Scripts Holding Co	ESRX US	9:00	Q4 2016 Guidance Call	Q4 2016
ConAgra Foods Inc	CAG US	9:30	Q2 2016 Earnings Call	Q2 2016
Paychex Inc	PAYX US	9:30	Q2 2016 Earnings Call	Q2 2016
Donaldson Co Inc	DCI US	10:00	Annual General Meeting
Avangrid Inc	EAS US	12:00	Business Update Call
NIKE Inc	NKE US	16:15	Q2 2016 Earnings Release	Q2 2016	0.856
Micron Technology Inc	MU US	16:30	Q1 2016 Earnings Call	Q1 2016
NIKE Inc	NKE US	17:00	Q2 2016 Earnings Call	Q2 2016
Micron Technology Inc	MU US	Aft-mkt	Q1 2016 Earnings Release	Q1 2016	0.233
Raymond James Financial Inc	RJF US		November 2015 Sales and Revenue Release - Operating Data	2015
NVIDIA Corp	NVDA US		ITC Due to Release Findings in 2nd Samsung vs. Nvidia Patent Case