MORNING CALL 1/30

Barchart Morning Call

Barchart.com - 1 hour ago

OVERNIGHT MARKETS AND NEWS

Mar E-mini S&Ps (ESH17 -0.26%) are down -0.28% and European stocks are down -0.90% on concern the Trump administration's isolationist policies may slow global trade. Many international companies, such as Apple and Google, have said that President Trump's executive order halting immigration from seven African and Middle Eastern countries threatens to choke the free flow of workers and commerce. European stocks fell even after Eurozone Jan business confidence rose to a 5-3/4 year high. Asian stocks settled mostly lower: Japan -0.51%, Australia -0.92%, India -0.12%, Hong Kong, China, Taiwan, Singapore and South Korea were all closed for holiday. Asian stocks were undercut on trade concerns over President Trump's policies and Japanese stocks were also pressured after Japan Dec retail sales fell more than expected.

The dollar index (DXY00 +0.39%) is up +0.25%. EUR/USD (^EURUSD) is down -0.32%. USD/JPY (^USDJPY) is down -0.39%.

Mar 10-year T-note prices (ZNH17 -0.04%) are down -2 ticks.

Eurozone Jan business confidence rose +0.4 to 108.2, stronger than expectations of unch at 107.8 and a 5-3/4 year high.

Japan Dec retail sales fell -1.7% m/m, weaker than expectations of -0.5% m/m and the biggest decline in 10 months.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Dec personal spending (expected +0.5%, Nov +0.2%) and Dec personal income (expected +0.4%, Nov unch), (2) Dec PCE deflator (expected +0.2% m/m and +1.7% y/y, Nov unch m/m and +1.4% y/y) and Dec core PCE deflator (expected +0.1% m/m and +1.7% y/y, Nov unch m/m and +1.6% y/y), (3) Dec pending home sales (expected +1.1% m/m, Nov -2.5% m/m and +1.4% y/y), (4) Jan Dallas Fed manufacturing activity index (expected -0.5 to 15.0, Dec +5.3 to 15.5), (5) USDA weekly grain export inspections.

Notable S&P 500 earnings reports today include: Principal Financial Group (consensus 0.58), Affiliated Managers Group (3.71), GGP (0.43), LEggett & Platt (0.58), UDR (0.46).

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

Equity conferences: none.

OVERNIGHT U.S. STOCK MOVERS

MB Financial (MBFI -1.09%) was downgraded to 'Market Perform' from ‘Outperform' at KBW with a price target of $46.

NetApp (NTAP +0.43%) was upgraded to 'Buy' from 'Neutral' at Goldman Sachs with a 12-month target price of $43.

Royal Caribbean Cruises Ltd. (RCL -1.13%) was upgraded to 'Buy' from 'Hold' at Argus with a price target of $116.

Temper Sealy International (TPX -2.89%) is indicated to open down 6% after it was downgraded to 'Underperform' from 'Outperform' at Raymond James.

Colgate-Palmolive (CL -5.22%) was downgraded to 'Neutral' from 'Buy' at Citigroup.

American Express (AXP -0.10%) was upgraded to 'Outperform' from 'Market Perform' at KBQ with a price target of $91.

Dick's Sporting Goods (DKS -2.01%) was upgraded to 'Buy' from 'Neutral' at Goldman Sachs with a 12-month target price of $62.

Regulus Therapeutics (RGLS unch) was downgraded to 'Hold' from 'Buy' at Needham & Co.

Array BioPharma (ARRY +1.27%) was downgraded to 'Market Perform' from 'Outperform' at Leerink Partners with a 12-month target price of $11.

Lowe's (LOW +0.03%) gained almost 1% in after-hours trading after it announced a new $5 billion share repurchase program.

Cannell Capital reported a 5% stake in Build-A-Bear Workshop (BBW +2.95%) .

Arctic Cat (ACAT +2.56%) was upgraded to 'Market Perform' from 'Underperform' at BMO Capital Markets with a price target of $18.50.

MARKET COMMENTS

Mar E-mini S&Ps (ESH17 -0.26%) this morning are down -6.50 points (-0.25%). Friday's closes: S&P 500 -0.09%, Dow Jones -0.04%, Nasdaq +0.22%. The S&P 500 on Friday closed lower on growth concerns after U.S. Q4 GDP rose +1.9% (q/q annualized), weaker than expectations of +2.2%. There was also weakness in energy producers after crude oil fell -1.13%. Supportive factors included the +0.8% increase in U.S. December capital goods orders nondefense ex-aircraft (stronger than expectations of +0.2%) and the +0.5-point increase in the U.S. Jan University of Michigan consumer sentiment to a 13-year high of 98.5 (stronger than expectations of unchanged at 98.1).

Mar 10-year T-notes (ZNH17 -0.04%) this morning are down -2 ticks. Friday's closes: TYH7 +6.50, FVH7 +3.50. Mar 10-year T-notes on Friday closed higher on the the weaker-than-expected U.S. Q4 GDP report of +1.9% and on increased safe-haven demand with the sell-off in stocks. T-notes were undercut by the rise in the Jan University of Michigan U.S. consumer sentiment index to a 13-year high.

The dollar index (DXY00 +0.39%) this morning is up +0.25 (+0.25%). EUR/USD (^EURUSD) is -0.0034 (-0.32%). USD/JPY (^USDJPY) is -0.45 (-0.39%). Friday's closes: Dollar index +0.15 (+0.15%), EUR/USD +0.0017 (+0.16%), USD/JPY +0.57 (+0.50%). The dollar index on Friday closed higher on the stronger-than-expected U.S. Dec capital goods orders nondefense ex-aircraft report, a proxy for capital spending, which shows firms are more confident in the economic outlook. The dollar was also boosted by the increase in U.S. Jan University of Michigan consumer sentiment to a 13-year high.

Mar WTI crude oil prices (CLH17 +0.26%) this morning are up +13 cents (+0.24%) and Mar gasoline (RBH17 -0.37%) is -0.0068 (-0.44%). Friday's closes: Mar crude -0.61 (-1.13%), Mar gasoline -0.0175 (-1.12%). Mar crude oil and gasoline on Friday closed lower on a stronger dollar and on the weaker-than-expected U.S. Q4 GDP report. Crude oil prices were also undercut by the increase in U.S. active oil rigs by 16 in the week ended Friday to a 14-1/2 month high of 566 rigs.

GLOBAL EVENT CALENDAR01/30/2017

		Monday, Jan 30
US	0830 ET	Dec personal spending expected +0.5%, Nov +0.2%. Dec personal income expected +0.4%, Nov unch.
	0830 ET	Dec PCE deflator expected +0.2% m/m and +1.7% y/y, Nov unch m/m and +1.4% y/y. Dec core PCE deflator expected +0.1% m/m and +1.7% y/y, Nov unch m/m and +1.6% y/y.
	1000 ET	Dec pending home sales expected +1.1% m/m, Nov -2.5% m/m and +1.4% y/y.
	1030 ET	Jan Dallas Fed manufacturing activity expected -0.5 to 15.0, Dec +5.3 to 15.5.
	1100 ET	USDA weekly grain export inspections.
		Tuesday, Jan 31
US	0830 ET	Q4 employment cost index expected +0.6%, Q3 +0.6%.
	0900 ET	Nov S&P CoreLogic composite-20 home price index expected +0.6% m/m and +5.04% y/y, Oct +0.63% m/m and +5.1% y/y.
	0930 ET	FOMC begins 2-day policy meeting.
	0945 ET	Jan Chicago PMI expected +1.1 to 55.0, Dec -3.3 to 53.9.
	1000 ET	Jan Conference Board U.S. consumer confidence expected -0.8 to 112.9, Dec +4.3 to 113.7.

U.S. STOCK CALENDAR01/30/2017

Company	Ticker	Time	Event Description	Period	Estimate
Affiliated Managers Group Inc	AMG US	Bef-mkt	Q4 2016 Earnings Release	Q4 2016	3.709
Affiliated Managers Group Inc	AMG US	8:30	Q4 2016 Earnings Call	Q4 2016
GGP Inc	GGP US	16:01	Q4 2016 Earnings Release	Q4 2016	0.426
Principal Financial Group Inc	PFG US	16:15	Q4 2016 Earnings Release	Q4 2016	1.143
Leggett & Platt Inc	LEG US	Aft-mkt	Q4 2016 Earnings Release	Q4 2016	0.575
UDR Inc	UDR US	Aft-mkt	Q4 2016 Earnings Release	Q4 2016	0.457

Morning Call 12/8

Barchart Morning Call

Barchart.com - 4 minutes ago

OVERNIGHT MARKETS AND NEWS

Dec E-mini S&Ps (ESZ16 +0.10%) are up +0.02% and European stocks are up +0.30% at an 11-month high as the markets expect the ECB later today to announce an extension of its QE program. Government bond prices fell and EUR/USD (^EURUSD) rose to a 3-week high on speculation the ECB may also announce a slower pace of asset purchases and that this will be the last extension of QE before the ECB starts to taper its bond buying. The weaker dollar has boosted crude oil prices with Jan WTI crude (CLF17 +0.86%) up +0.78%, which has also lifted energy producing stocks. Stock markets around the world also rose on signs of economic strength in China after China Nov exports unexpectedly rose for the first time in 8 months and after China imports posted their largest increase in 2 years. Asian stocks settled mostly higher: Japan +1.45%, Hong Kong +0.27%, China -0.21%, Taiwan +1.21%, Australia +1.20%, Singapore -0.03%, South Korea +2.21%, India +1.74%. Japan's Nikkei Stock Index climbed to an 11-month high as strength in Chinese Nov imports boosted exporter stocks.

The dollar index (DXY00 -0.34%) is down -0.28% at a 3-week low. EUR/USD (^EURUSD) is up +0.31% at a 3-week high. USD/JPY (^USDJPY) is down -0.29%.

Mar 10-year T-note prices (ZNH17 -0.18%) are down -7 ticks.

China Nov exports unexpectedly rose +0.1% y/y, stronger than expectations of -5.0% y/y and the first increase in 8 months. Nov imports unexpectedly rose +6.7% y/y, stronger than expectations of -1.9% y/y and the biggest increase in 2 years.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly initial unemployment claims (expected -13,000 to 255,000, previous +17,000 to 268,000) and continuing claims (expected -33,000 to 2.048 million, previous +38,000 to 2.081 million), (2) USDA weekly Export Sales.

Russell 1000 earnings reports today include: Toro (consensus $0.22), Cooper Cos (2.25), Broadcom (3.36).

U.S. IPO's scheduled to price today: Ichor Holdings (ICHR), Athene Holding (ATH).

Equity conferences during the remainder of this week include: Citi Global Health Care Conference on Wed-Thu, Barclays Global Technology, Media and Telecommunications Conference on Wed-Thu, Bernstein Consumer Summit on Wed-Thu, Capital One Southcoast Energy Conference on Wed-Thu, ACI European Biopolymer Summit on Thu.

OVERNIGHT U.S. STOCK MOVERS

L-3 Communications Holdings (LLL +1.96%) was downgraded to 'Neutral' from 'Buy' at Bank of America/Merrill Lynch with a price target of $170.

Priceline.com (PCLN +1.48%) was rated a new 'Buy' at CLSA with a price target of $1,900.

Tailored Brands (TLRD +3.39%) was upgraded to 'Buy' from 'Neutral' at Mizuho Securities with a 12-month target price of $25.

Lululemon Athletica (LULU +4.54%) surged 13% in after-hours trading after it reported Q3 adjusted EPS of 47 cents, higher than consensus of 43 cents, and then said its board approved up to $100 million in stock repurchases.

Ollie's Bargain Outlet Holdings (OLLI +1.11%) fell over 2% in after-hours trading after it reported Q3 comparable store sales rose +1.8%, below consensus of +2.1%.

Corning (GLW +2.46%) gained over 1% in after-hours trading after it announced a new $4 billion share repurchase program.

United Natural Foods (UNFI +0.88%) slid over 2% in after-hours trading after it reported Q1 EPS of 58 cents, below consensus of 62 cents.

Verint Systems (VRNT +0.26%) tumbled over 12% in after-hours trading after it reported Q3 adjusted EPS of 59 cents, weaker than consensus of 70 cents, and then lowered guidance on fiscal 2017 adjusted EPS to $2.50, below a September 7 view of $2.85.

Comtech (CMTL +6.43%) dropped 7% in after-hours trading after it reported Q1 revenue of $135.8 million, below consensus of $139.2 million, and then cut its quarterly dividend to 10 cents a share from 30 cents a share.

H&R Block (HRB +2.86%) jumped nearly 6% in after-hours trading after it reported Q2 revenue of $131.3 million, higher than consensus of $127 million.

Casey's General Stores (CASY +0.93%) fell over 2% in after-hours trading after it reported Q2 EPS of $1.44, below consensus of $1.57.

Voyager Therapeutics (VYGR -1.93%) surged over 30% in after-hours trading after it announced positive results on its phase 1b trial of its VY-AADC01 gene therapy that showed improved measures of motor function in in patients with advanced Parkinson's disease.

MARKET COMMENTS

Dec E-mini S&Ps (ESZ16 +0.10%) this morning are up +0.50 of a point (+0.02%). Wednesday's closes: S&P 500 +1.32%, Dow Jones +1.55%, Nasdaq +1.32%. The S&P 500 on Wednesday pushed up to a new record high and closed higher on carry-over support from a rally in European stocks to a 7-1/4 month high on expectations that the ECB on Thursday will extend QE past March 2017. Stocks were also boosted by reduced interest rate concerns as the 10-year T-note yield fell -4 bp.

Mar 10-year T-notes (ZNH17 -0.18%) this morning are down -7 ticks. Wednesday's closes: TYH7 +11.00, FVH7 +7.00. Mar 10-year T-notes on Wednesday closed higher on the -2.28% slide in crude oil prices, which undercut inflation expectations. T-notes were also boosted by carry-over support from a rally in German bunds ahead of Thursday's ECB meeting.

The dollar index (DXY00 -0.34%) this morning is down -0.284 (-0.28%) at a 3-week low. EUR/USD (^EURUSD) is up +0.0033 (+0.31%) at a 3-week high. USD/JPY (^USDJPY) is down -0.33 (-0.29%). Wednesday's closes: Dollar index -0.260 (-0.26%), EUR/USD +0.0035 (+0.33%), USD/JPY -0.25 (-0.22%). The dollar index on Wednesday closed lower on a -4 bp decline in the 10-year T-note yield, which reduced the dollar's interest rate differentials. In addition, there was strength in EUR/USD on short-covering ahead of Thursday's ECB meeting.

Jan WTI crude oil prices (CLF17 +0.86%) this morning are up +39 cents (+0.78%) and Jan gasoline (RBF17 -0.20%) is -0.0038 (-0.25%). Wednesday's closes: Jan crude -1.16 (-2.28%), Jan gasoline -0.0291 (-1.89%). Jan crude oil and gasoline on Wednesday closed lower on the +3.783 million bbl increase in crude stockpiles at Cushing to a 5-1/2 month high and on the +3.425 million bbl increase in weekly EIA gasoline supplies, a larger increase than expectations of +1.6 million bbl.

GLOBAL EVENT CALENDAR12/08/2016

		Thursday, Dec 8
US	0830 ET	Weekly initial unemployment claims expected -13,000 to 255,000, previous +17,000 to 268,000. Weekly continuing claims expected -33,000 to 2.048 million, previous +38,000 to 2.081 million.
	0830 ET	USDA weekly Export Sales.
	1100 ET	Treasury announces amount of 3-year T-notes (previous $24 billion), 10-year T-notes (previous $23 billion) and 30-year T-bonds (previous $15 billion) to be auctioned Dec 12-13.
		Friday, Dec 9
US	1000 ET	Revised Oct wholesale inventories expected -0.4%, prelim-Oct -0.4%. Oct wholesale trade sales expected +0.7% m/m, Sep +0.2%.
	1000 ET	Preliminary-Dec University of Michigan U.S. consumer sentiment index expected +0.7 to 94.5, Nov +6.6 to 93.8.
	1200 ET	USDA WASDE Dec crop production.

U.S. STOCK CALENDAR12/08/2016

Company	Ticker	Time	Event Description	Period	Estimate
Dell Technologies Inc Class V	DVMT US	Bef-mkt	Q3 2017 Earnings Release	Q3 2017
Toro Co/The	TTC US	7:30	Q4 2016 Earnings Release	Q4 2016	0.216
Principal Financial Group Inc	PFG US	8:00	Roadshow	Y 2016
Hilton Worldwide Holdings Inc	HLT US	8:00	Investor Day	Y 2016
Nielsen Holdings PLC	NLSN US	8:00	Analyst Day	Y 2016
Dell Technologies Inc Class V	DVMT US	8:00	Q3 2017 Earnings Call	Q3 2017
CMS Energy Corp	CMS US	8:30	Investor Meeting
UGI Corp	UGI US	8:30	Investor Day	Y 2016
Verisk Analytics Inc	VRSK US	8:30	Investor Day	Y 2016
Baker Hughes Inc	BHI US	9:00	Investor Meeting	Y 2016
General Electric Co	GE US	9:00	Investor Meeting	Y 2016
Edwards Lifesciences Corp	EW US	9:00	Investor Meeting	Y 2016
Casey's General Stores Inc	CASY US	10:30	Q2 2017 Earnings Call	Q2 2017
Toro Co/The	TTC US	11:00	Q4 2016 Earnings Call	Q4 2016
Palo Alto Networks Inc	PANW US	13:00	Annual General Meeting
Cooper Cos Inc/The	COO US	16:15	Q4 2016 Earnings Release	Q4 2016	2.248
Cooper Cos Inc/The	COO US	17:00	Q4 2016 Earnings Call	Q4 2016
Broadcom Ltd	AVGO US	17:00	Q4 2016 Earnings Call	Q4 2016
Broadcom Ltd	AVGO US	Aft-mkt	Q4 2016 Earnings Release	Q4 2016	3.358
American Airlines Group Inc	AAL US		November 2016 Sales and Revenue Release - Traffic Results	2016
Vail Resorts Inc	MTN US		Annual General Meeting
TD Ameritrade Holding Corp	AMTD US		November 2016 Sales and Revenue Release	2016
Spirit Airlines Inc	SAVE US		November 2016 Sales and Revenue Release - Traffic Results	2016
Alere Inc	ALR US		Annual General Meeting
United Continental Holdings Inc	UAL US		November 2016 Sales and Revenue Release - Traffic Results	2016