MORNING CALL 12/21

MORNING CALL

Monday, December 21st, 2015View Older Reports

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OVERNIGHT MARKETS AND NEWS

March E-mini S&Ps (ESH16 +0.85%) are up +0.87% and European stocks are up +0.31% as technology stocks rose with Apple up over 1% in pre-market trading and Ericsson AG up 7% after Apple settled a patent dispute with Ericsson AB and agreed to a 7-year licensing agreement with the company. Also, Disney rose nearly 2% in pre-market trading after its "Star Wars: The Force Awakens" movie collected a record $238 million in weekend ticket sales in the U.S. and Canada. On the negative side, Spain's benchmark IBEX 35 Stock Index is down more than 2% and the yield on the 10-year Spanish government bond jumped to a 5-week high of 1.88% after Prime Minister Rajoy lost his majority in Sunday's election, which threatens Spain with a period of instability. Asian stocks settled mostly higher: Japan -0.37%, Hong Kong +0.17%, China +1.77%, Taiwan +0.30%, Australia +0.05%, Singapore -0.26%, South Korea +0.31%, India +0.85%. China's Shanghai Composite rallied to a 3-week high on signs the government may boost stimulus measures after a statement from the government's Central Economic Work Conference said that monetary policy must be more "flexible" and that the country's fiscal policy must be more "forceful" as leaders create "appropriate monetary conditions for structural reforms."

The dollar index (DXY00 +0.07%) is up +0.05%. EUR/USD (^EURUSD) is down -0.04%. USD/JPY (^USDJPY) is up +0.19%.

Mar T-note prices (ZNH16 -0.04%) are down -2 ticks.

ECB Executive Board member Praet said that "seeping pessimism" is a key risk for Eurozone prospects in coming years and that the ECB "will pursue an accommodative monetary policy for as long as necessary."

The German Nov PPI that fell -0.2% m/m and -2.5% y/y was weaker than expectations of -0.2% m/m and -2.4% y/y with the -2.5% y/y drop the largest annual decline in 5-3/4 years.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Nov Chicago Fed national activity index (expected +0.14 to 0.10, Oct +0.25 to -0.04).

There are 3 of the Russell 3000 companies that report earnings today: Cintas (consensus $1.00), Steelcase (0.33), Neogen (0.26).

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

Equity conferences this week: none.

OVERNIGHT U.S. STOCK MOVERS

Apple (AAPL -2.71%) is up 1.6% in pre-market trading after it settled a patent dispute with Ericsson AB and agreed to pay Ericsson royalties as part of a 7-year licensing agreement.

Disney (DIS -3.83%) gained nearly 2% in pre-market trading after the company said its "Star Wars: The Force Awakens" movie had topped ticket sales of $100 million on Friday alone, the first time a movie had surpassed $100 million in a single day, and that weekened ticket sales in the U.S. and Canada were a record $238 million.

General Dynamics (GD -1.05%) was upgraded to 'Buy' from 'Hold' at Drexel Hamilton LLC with a 12-month price target of $153.

Ross Stores (ROST -1.69%) were upgraded to 'Outperform' from 'Market Perform' at Cowen with a 12-month price target of $63.

The U.S. Department of Defense awarded Ratheon (RTN -1.66%) a $2.35 billion award modification to deliver SM-3 Block IB missiles and related support and recertification.

Merck (MRK -1.94%) said that its Keytruda drug had won expanded FDA approval for treatment of patients with unresectable or metastatic melanoma.

Century Aluminum (CENX +7.91%) rose over 2% in after-hours trading after saying it will keep its Goose Creek plant operating at half capacity while the South Carolina legislature pursues a "long-term solution" to access market power for all of its power supply.

Syngenta (SYT +0.93%) climbed over 2% in after-hours trading after China National Chemical improved its offer to purchase the company.

40 North Management said it raised its stake in Mattress Firm (MFRM +1.36%) to 8.3% from 6.9%.

Sunstone Hotel Investors (SHO -2.51%) rose nearly 2% in after-hours trading after it sold its leasehold interest in the 468-room Doubletree Guest Suites in Times Square for $540 million.

MARKET COMMENTS

Mar E-mini S&Ps (ESH16 +0.85%) this morning are up +17.25 points (+0.87%). Friday's closes: S&P 500 -1.78%, Dow Jones -2.10%, Nasdaq -1.81%. The S&P 500 on Friday closed sharply lower on year-end tax selling, weakness in energy producers after crude oil fell to a new 6-3/4 year low, and the-2.4 point decline in the U.S. Dec Markit services PMI to 53.7, weaker than expectations of -0.2 to a 1-year low of 55.9.

Mar 10-year T-notes (ZNH16 -0.04%) this morning are down -2 ticks. Friday's closes: TYH6 +11.50, FVH6 +7.75. Mar T-notes on Friday closed higher on safe-haven demand with the sharp sell-off in stocks and the weaker-than-expected Dec Markit services PMI which slowed to its slowest pace in a year.

The dollar index (DXY00 +0.07%) this morning isup +0.047 (+0.05%). EUR/USD (^EURUSD) is down -0.0004 (-0.04%). USD/JPY (^USDJPY) is up +0.23 (+0.19%). Friday's closes: Dollar Index -0.567 (-0.57%), EUR/USD +0.0042 (+0.39%), USD/JPY -1.40 (-1.149%). The dollar index on Friday closed lower on the weaker-than-expected U.S. Dec Markit services PMI. Meanwhile, USD/JPY which retreated from a 2-week high and closed lower after details of the BOJ's new stimulus measures indicated a fine-tuning rather than an extensive expansion of stimulus, which was supportive for the yen.

Jan crude oil (CLF16 -1.38%) this morning is down -36 cents (-1.04%) and Jan gasoline (RBF16 -3.37%) is down -0.0315 (-2.47%). Friday's closes: CLF6 -0.40 (-1.14%), RBF6 +0.0001 (+0.01%). Jan crude oil and gasoline on Friday settled mixed with Jan crude at a fresh 6-3/4 year low. Crude oil prices were undercut by (1) an increase in U.S. oil rigs as Baker Hughes reporting that active U.S oil rigs rose by 17 rigs in the week ended Dec 18 to 541, the first increase in 5 weeks, and (2) the ongoing crude oil glut as U.S. oil inventories are 130 million bbl above the 5-year seasonal average. Crude oil prices received a boost as Congress approved legislation dropping the 40-year old U.S. export ban on crude oil exports, which expands demand for U.S. oil.

GLOBAL EVENT CALENDAR12/21/2015

US	0830 ET	Nov Chicago Fed national activity index expected +0.14 to 0.10, Oct +0.25 to -0.04.
	1100 ET	USDA weekly grain export inspections.
GER	0200 ET	German Nov PPI expected -0.2% m/m and -2.4% y/y, Oct -0.4% m/m and -2.3% y/y.
UK	0600 ET	UK Dec CBI reported sales expected +14 to 21, Nov 7.
	1905 ET	UK Dec GfK consumer confidence expected +1 to 2, Nov 1.
EUR	1000 ET	Eurozone Dec consumer confidence expected unch at -5.9.
CHI	2100 ET	China Nov leading economic index (Conference Board).

U.S. STOCK CALENDAR12/21/2015

Company	Ticker	Time	Event Description	Period	Estimate
Neogen Corp	NEOG US	Bef-mkt	Q2 2016 Earnings Release	Q2 2016	0.26
NeoGenomics Inc	NEO US	10:00	Special Meeting
Neogen Corp	NEOG US	11:00	Q2 2016 Earnings Call	Q2 2016
Puma Biotechnology Inc	PBYI US	16:15	Business Update Call
Lannett Co Inc	LCI US	16:30	Business Update Call
Cintas Corp	CTAS US	17:00	Q2 2016 Earnings Call	Q2 2016
Cintas Corp	CTAS US	Aft-mkt	Q2 2016 Earnings Release	Q2 2016	0.998
Steelcase Inc	SCS US	Aft-mkt	Q3 2016 Earnings Release	Q3 2016	0.33

BARCHART MORNING CALL 12/23

BARCHART MORNING CALL

Monday, December 23rd, 2013View 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 (ESH14 +0.39%) this morning are up +0.37% at a new record high and European stocks are up +0.05% after IMF Managing Director Lagarde, who spoke on NBC's "Meet the Press" Sunday, said the IMF sees a "stronger" U.S. economic outlook in 2014 as a budget deal in Washington and the Fed's plan to taper its bond buying will allow for a higher growth estimate. Asian stocks closed higher: Japan is closed for holiday, Hong Kong +0.48%, China +0.28%, Taiwan +0.57%, Australia +0.51%, Singapore +0.70%, South Korea +0.75%, India +0.10%. Another positive for U.S. Stocks that also helped China's Shanghai Stock Index rebound from a 3-3/4 month low and close higher was the deal that Apple struck with China Mobile to sell the iPhone in China. After 6-years of negotiations, China Mobile said it will sell the iPhone in its retail stores starting Jan 17. China's Shanghai Stock Index had posted a 3-3/4 month low on concerns of a liquidity squeeze after China's 7-day repurchase rate, a gauge of funding availability in the banking system, jumped +124 bp to 8.84% the highest in 6-months. Commodity prices are mixed. Feb crude oil (CLG14 -0.35%) is down -0.40%. Feb gasoline (RBG14 -0.33%) is down -0.31%. Feb gold (GCG14 -0.49%) is down -0.73%. March copper (HGH14 -0.12%) is up +0.03%. Agriculture prices are mixed. The dollar index (DXY00 -0.25%) is down -0.17%. EUR/USD (^EURUSD) is up +0.08%. USD/JPY (^USDJPY) is down -0.23%. March T-note prices (ZNH14 -0.08%) are down -4.5 ticks.
ECB Executive Board member Praet said in an interview in the Italian newspaper La Stampa that the ECB is monitoring an expected increase in investment in the Eurozone and "is ready to act" if credit contracts and threatens the recovery.
The German Nov import price index rose +0.1% and fell -2.9% y/y, stronger than expectations of -0.1% m/m and -3.1% y/y.
Eurozone Dec consumer confidence strengthened +1.8 points -13.6, better than expectations of a +0.4 point increase to -15.0 and the highest in 2-1/3 years.
The Chinese yuan closed at 6.0702 per dollar, according to China Foreign Exchange System prices, the strongest since the government unified the market and official exchange rates at the end of 1993 after the PBOC boosted the daily fixing rate for the yuan by +0.06% to 6.1161 per dollar.

U.S. STOCK PREVIEW

The U.S. economic schedule is heavy today and tomorrow before Wednesday’s Christmas holiday.  Today’s Nov personal income report is expected to show a strong increase of +0.5%, improving after the -0.1% decline seen in Oct.  Nov personal spending is expected to show a strong increase of +0.5%, adding to the +0.3% increase seen in October.  Today’s Nov PCE deflator is to strengthen slightly to +0.9% y/y from +0.7% y/y in October.  Meanwhile, the Fed’s preferred inflation measure, Nov core PCE deflator is expected to strengthen slightly to +1.2% y/y from +1.1% y/y in October.  Today’s final-Dec U.S. consumer confidence index from the University of Michigan is expected to be revised higher by +0.5 points from early-Dec to 83.0l, which would produce a sharp overall gain of +7.9 from November.   There are no major earnings reports today.  There are no equity conferences this week.

OVERNIGHT U.S. STOCK MOVERS

Apple (AAPL +0.84%) rose nearly 4% in pre-market trading after it announced after 6-years of negotiations with China Mobile that it will be allowed to sell its iPhone in China starting next month. The deal may bring 12 million new iPhone sales for Apple in 2014, according to an analyst from Morgan Stanley.
Tiffany (TIF +0.21%) fell 3.5% in pre-market trading after Swatch Group AG won an arbitration award of 402 million francs ($449 million) from Tiffany.
KB Home (KBH +2.67%) was upgraded to 'Neutral' from 'Sell' at Citigroup.
Xilinx (XLNX +0.90%) was upgraded to 'Buy' from 'Hold' at Drexel Hamilton.
The WSJ reported that Target (TGT +0.55%) said on Friday that it has received "very few" reports of credit card fraud following a massive data breach that compromised 40 million and debit card accounts.
Micron (MU +2.54%) was downgraded to 'Underperform' from 'Neutral' at BofA/Merrill.
Five Below (FIVE +1.09%) was upgraded to 'Outperform' from 'Neutral' at Credit Suisse.
CIT Group (CIT +0.61%) disclosed in a regulatory filing that it reached an agreement with Tyco International (TYC +1.77%) in which CIT will pay $60 million to settle claims asserted by Tyco related to a Tax Agreement that CIT and Tyco entered into in 2002 in connection with CIT’s separation from Tyco.
United Technologies (UTX +1.06%) was awarded a $231.47 million government contract modification for sustainment of F119-PW-100 Engines.
Lockheed Martin (LMT +0.85%) was awarded a $561.96 million government contract modification for nine months of sustainment activities for the F-22 air vehicle.
Levin Capital Strategies reported a 5.5% passive stake in Pinnacle Foods (PF +0.49%) .
Abrams reported a 5.99% passive stake in Global Eagle (ENT +3.24%) .
Blue Ridge Capital reported a 7.82% passive stake in PBF Energy (PBF +1.52%) .
Ronin Capital reported a 7.9% passive stake in Kingstone Companies (KINS +2.40%) .

MARKET COMMENTS

Mar E-mini S&Ps (ESH14 +0.39%) this morning are up +6.75 points (+0.37%) at a new all-time high. The S&P 500 on Friday rallied to a new record high after U.S. Q3 GDP was revised higher to +4.1% from +3.6% and Q3 personal consumption was revised higher to +2.0% from +1.4%. U.S. stocks also found carry-over support from a rally in European bourses after German Jan GfK consumer confidence unexpectedly rose +0.2 to a 6-1/3 year high of 7.6. Closes: S&P 500 +0.48%, Dow Jones +0.26%, Nasdaq 100 +0.93%.
Mar 10-year T-notes (ZNH14 -0.08%) this morning are down -4.5 ticks. Mar 10-year T-note prices on Friday fell to a 3-1/4 month low after U.S. Q3 GDP was revised higher-than-expected. However, T-notes recovered as the Treasury curve flattened when losing steepener trades were unwound as the Fed’s action to taper QE3 Wednesday instead of waiting until next year forced traders to unwind the trades and sell the shorter-end of the Treasury curve (i.e., 2-year and 5-year T-notes) and buy the longer-end of the curve, (i.e., 10-year T-notes and 30-year T-bonds). Closes: TYH4 +2.50, FVH4 -4.25.
The dollar index (DXY00 -0.25%) this morning is down -0.137 (-0.17%). EUR/USD (^EURUSD) is up +0.0011 (+0.08%) and USD/JPY (^USDJPY) is down -0.24 (-0.23%). The dollar index on Friday fell back from a 2-week high after a rally in the S&P 500 to a record high reduced safe-haven demand for the dollar. EUR/USD closed higher after it recovered from a 2-week low after S&P downgraded the credit rating of the European Union and USD/JPY posted a fresh 5-year high after the BOJ said they will maintain stimulus until annual inflation is stable at 2%. Closes: Dollar index -0.055 (-0.07%), EUR/USD +0.00109 (+0.08%), USD/JPY -0.166 (-0.16%).
Feb WTI crude oil (CLG14 -0.35%) this morning is down -40 cents (-0.40%) and Feb gasoline (RBG14 -0.33%) is down -0.0087 (-0.31%). Feb crude oil and gasoline prices on Friday closed higher with Feb gasoline at a 3-month high. Bullish factors included (1) the larger-than-expected upward revision in U.S. Q3 GDP to a 1-3/4 year high of +4.1%, which was supportive for energy consumption and demand, and (2) the rally in the S&P 500 to a record high, which signals confidence in the economic outlook. Closes: CLG4 +0.28 (+0.28%), RBG4 +0.0379 (+1.38%).

GLOBAL EVENT CALENDAR12/23/2013

US	0830 ET	Nov Chicago Fed national activity index, Oct -0.18.
	0830 ET	Nov personal spending expected +0.5%, Oct +0.3%. Nov personal income expected +0.5%, Oct -0.1%. Nov PCE deflator expected +0.1% m/m and +0.9% y/y, Oct unch m/m and +0.7% y/y. Nov PCE core deflator expected +0.1% m/m and +1.2% y/y, Oct +0.1% m/m and +1.1% y/y.
	0955 ET	Final U.S. Dec University of Michigan consumer confidence expected +0.5 to 83.0, previous +7.4 to 82.5.
	1100 ET	USDA weekly grain export inspections.
	1500 ET	Nov USDA Cold Storage.
GER	0200 ET	German Nov import price index expected -0.1% m/m and -3.1% y/y, Oct -0.7% m/m and -3.0% y/y.
JPN	n/a	Japanese markets closed for Emperors Birthday.

U.S. STOCK CALENDAR12/23/2013

Company Name	Ticker	Time	Event Description	Period	Estimate
United Therapeutics Corp	UTHR US	9:00	Business Update Call
CalAmp Corp	CAMP US	16:30	Q3 2014 Earnings Call	Q3 2014
Puma Biotechnology Inc	PBYI US	16:30	PB272 (Neratinib) Update Call
CalAmp Corp	CAMP US	Aft-mkt	Q3 2014 Earnings Release	Q3 2014	0.213
Hain Celestial Group Inc/The	HAIN US	Aft-mkt	Green Plains Renewable Energy Replaces Hain Celestial Group in S&P SmallCap 600
Hain Celestial Group Inc/The	HAIN US	Aft-mkt	Hain Celestial Group Replaces NV Energy Inc. in S&P MidCap 400
Green Plains Renewable Energy Inc	GPRE US	Aft-mkt	Green Plains Renewable Energy Replaces Hain Celestial Group in S&P SmallCap 600

Puma Biotechnology - Chart of the Day

Summary:

Puma Biotechnology (PBYI) is the Chart of the Day.  The cancer treatment stock has soared 396.00% in the past year and is starting to draw the attention of Wall Street. I found the stock on the New High List when sorted for frequency.

Article:

The Chart of the Day is Puma Biotechnology (PBYI).  In the last month the stock hit 15 new highs and is up 59.89% with a Relative strength Index of 80.00% and reports by major Wall Street players.

They are a biopharmaceutical company focused on the acquisition, in-licensing, development and commercialization of novel therapeutics for the treatment of cancer. Its products under development include PB272 (oral neratinib) for the treatment of patients with human epidermal growth factor receptor type 2 (HER2) positive metastatic breast cancer and gastric cancer and PB272 (neratinib intravenous) for the treatment of patients with advanced cancer.

Barchart's Opinion trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 10 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com web site when you read this report.

Barchart technical indicators:

• 100% Barchart technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 15 new highs and up 59.89% in the last month
• Relative Strength Index 80.00%
• Barchart computes a technical support level at 53.10
• Recently traded at 55.80 with a 50 day moving average of 37.57

Fundamental factors:

• Market Cap $1.60 billion
• Earnings expected to grow 45.60% this year, decrease by 26.30% next year but increase annually by 16.30% for the next 5 years
• Wall Street analysts issued 3 strong buy, 2 buy and 1 hold recommendation
• The stock is on the buy list at UBS and Stifel Nicolaus
• Research reports have been issued by Zacks, Thompson/Reuters and ValuEngine

When a stock moves up this fast it can crash just as fast.  I'd advise using a moving stop loss at the Barchart technical support level which is 53.50 today.