MORNING CALL 2/24

Barchart Morning Call

Barchart.com - Fri Feb 24, 6:37AM CST

OVERNIGHT MARKETS AND NEWS

Mar E-mini S&Ps (ESH17 -0.41%) are down -0.47% and European stocks are down -1.19%. Uncertainty ahead of France's presidential election in April and Tuesday's speech to Congress from President Trump has fueled long liquidation in stocks. European political risks have increased as far-right French presidential candidate Marine Le Penn, who wants to take France out of the EU, is seen gaining in polls, while President Trump promised something "phenomenal" with respect to tax reform three weeks ago, and his every word will be parsed when he addresses House and Senate lawmakers on Tuesday. The slide in equity markets has boosted the price of gold with Apr COMEX gold (GCJ17 +0.53%) up +0.59% to a 3-1/4 month high. Government bonds are also higher on increased safe-haven demand as German bunds climbed to a 1-1/2 month high and T-notes are at a 2-week high. Asian stocks settled mostly lower: Japan -0.45%, Hong Kong -0.62%, China +0.06%, Taiwan -0.19%, Australia -0.79%, Singapore -0.65%, South Korea -0.92%, India closed for holiday. A stronger yen undercut Japanese stocks as USD/JPY tumbled to a 2-week low.

The dollar index (DXY00 -0.26%) is down -0.24%. EUR/USD (^EURUSD) is up +0.23%. USD/JPY (^USDJPY) is down -0.26% at a 2-week low.

Mar 10-year T-note prices (ZNH17 +0.16%) are up +6 ticks at a 2-week high.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Jan new home sales (expected +6.3% to 570,000, Dec -10.4% to 536,000), (2) revised-Feb University of Michigan U.S. consumer sentiment index (expected +0.3 to 96.0, prelim-Feb -2.8 to 95.7), (3) USDA weekly Export Sales, (4) USDA Jan Cattle on Feed.

Notable S&P 500 earnings reports today include: Foot Locker (consensus $1.32), Public Service Enterprise Group (0.53), Pinnacle West Capital (0.48), Cabot Oil & Gas (0.01).

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

Equity conferences: CAGNY Investor Conference on Tue-Fri.

OVERNIGHT U.S. STOCK MOVERS

Goldman Sachs (GS -0.21%) was downgraded to 'Sell' from 'Hold' at Berenberg with a price target of $190.

Incyte (INCY +0.49%) climbed over 4% in after-hours trading after it was announced that it will replace Spectra Energy in the S&P 500 at the open of trading on Tuesday, February 28.

Nordstrom (JWN -3.11%) rallied 3% in after-hours trading after it reported Q4 adjusted EPS of $1.37, higher than consensus of $1.15.

Stamps.com (STMP -0.52%) fell almost 3% in after-hours trading after it said it sees full-year adjusted EPS of $6.00-$7.00, weaker than consensus of $7.91

Hewlett Packard Enterprise (HPE -0.48%) dropped 6% in after-hours trading after it reported Q1 net revenue of $11.4 billion, weaker than consensus of $12.1 billion, and said it sees Q2 adjusted EPS of 41 cents-45 cents, below consensus of 47 cents.

B&G Foods (BGS -1.37%) slid 6% in after-hours trading after it reported Q4 adjusted EPS of 29 cents, weaker than consensus of 40 cents.

RH US (RH -3.15%) surged 15% in after-hours trading after it reported Q4 adjusted EPS of 68 cents, above consensus of 66 cents.

MercadoLibre (MELI -0.29%) gained 2% in after-hours trading after it reported Q4 net revenue of $256.3 million, better than consensus of $250 million.

Universal Display (OLED -5.33%) jumped nearly 12% in after-hours trading after it reported Q4 EPS of 55 cents, above consensus of 43 cents.

Baidu (BIDU -0.74%) rose 3% in after-hours trading after it reported Q4 adjusted profit for ADS of $1.91, well above consensus of $1.09.

Acacia Communications (ACIA +1.94%) tumbled 11% in after-hours trading after it said it sees Q1 adjusted EPS of 63 cents-70 cents, weaker than consensus of 78 cents.

Sarepta Therapeutics (SRPT -0.76%) gained over 1% in after-hours trading after Point72 Asset Management said it raised its passive stake in the company to 5.2% from 2.5%.

Zoe's Kitchen (ZOES -1.49%) sank 11% in after-hours trading after it said it sees full-year revenue of $325 million-$327 million, below consensus of $329.1 million.

Accelerate Diagnostics (AXDX +1.23%) rose 3% in after-hours trading after it received clearance from the FDA to market its PhenoTest BC Kit as the first test to identify organisms that cause bloodstream infections and provide information on antibiotic sensitivity.

Emergent BioSolutions (EBS -0.47%) gained over 2% in after-hours trading after it reported Q4 adjusted EPS of 74 cents, better than consensus of 61 cents.

Acadia Healthcare (ACHC +1.41%) fell over 8% in after-hours trading after it said it sees Q1 adjusted EPS of 45 cents-47 cents, below consensus of 56 cents, and then lowered guidance on full-year EPS to $2.40-$2.50, weaker than consensus of $2.53.

Hi-Crush Partners LP (HCLP -6.38%) slid over 7% in after-hours trading after it announced a primary offering of 20.5 million common units.

MARKET COMMENTS

Mar E-mini S&Ps (ESH17 -0.41%) this morning are down -11.00 points (-0.47%). Thursday's closes: S&P 500 +0.04%, Dow Jones +0.17%, Nasdaq -0.37%. The S&P 500 on Thursday posted a new record high and closed higher on strength in energy producing stocks after the price of crude oil rose +1.44% to a 1-1/2 month high and on a rally in mining stocks after the price of gold and silver climbed to 3-1/4 month highs. Stocks were undercut by weakness in technology stocks and by hawkish comments from Atlanta Fed President Lockhart who said that "two or three 25 bp rate hikes are likely this year as long as the economy remains on the track it is on."

Mar 10-year T-notes (ZNH17 +0.16%) this morning are up +6 ticks at a 2-week high. Thursday's closes: TYH7 +9.00, FVH7 +6.50. Mar 10-year T-notes on Thursday climbed to a 2-week high and closed higher on carry-over support from a rally in German bunds to a 1-1/2 month high on increased safe-haven demand due to political risks in France and on short-covering at the conclusion of this week's T-note auctions.

The dollar index (DXY00 -0.26%) this morning is down -0.24 (-0.24%). EUR/USD (^EURUSD) is up +0.0024 (+0.23%). USD/JPY (^USDJPY) is down -0.29 (-0.26%) at a 2-week low. Thursday's closes: Dollar index -0.17 (-0.17%), EUR/USD +0.0024 (+0.23%), USD/JPY -0.70 (-0.62%). The dollar index on Thursday closed lower on the slide in 10-year T-note yields to 2-week lows, which reduces the dollar's interest rate differentials. The dollar was also undercut by Treasury Secretary Mnuchin's comment that fiscal stimulus effects on the U.S. economy this year may be limited.

Apr WTI crude oil prices (CLJ17 -0.77%) this morning are down -25 cents (-0.46%) and Apr gasoline (RBJ17 -0.51%) is -0.0037 (-0.21%). Thursday's closes: Apr crude +0.77 (+1.44%), Apr gasoline +0.0128 (+0.74%). Apr crude and gasoline on Thursday closed higher with Apr crude at a 1-1/2 month high and Apr gasoline at a 1-week high. Crude oil prices were boosted by a weaker dollar, the +564,000 increase in EIA crude inventories (less than expectations of +3.25 million bbl) and the -1.528 million bbl decline in crude supplies at Cushing to a 2-1/2 month low. Crude prices fell back from their best levels after U.S. crude production in the week of Feb 17 rose +0.3% to 9.001 million bpd, a 10-1/2 month high.

GLOBAL EVENT CALENDAR02/24/2017

		Friday, Feb 24
US	0830 ET	USDA weekly Export Sales.
	1000 ET	Jan new home sales expected +6.5% to 571,000, Dec -10.4% to 536,000.
	1000 ET	Revised-Feb University of Michigan U.S. consumer sentiment expected +0.3 to 96.0, prelim-Feb -2.8 to 95.7.
	1500 ET	USDA Jan Cattle on Feed.
		Monday, Feb 27
US	0830 ET	Jan durable goods orders expected +2.0% and +0.5% ex transportation, Dec -0.5% and +0.5% ex transportation. Jan capital goods new orders non-defense ex aircraft & parts expected +0.5%, Dec +0.7%.
	1000 ET	Jan pending home sales expected +0.9% m/m, Dec +1.6% m/m and -2.0% y/y.
	1030 ET	Feb Dallas Fed manufacturing activity expected -2.1 to 20.0, Jan +4.4 to 22.1.
	1100 ET	USDA weekly grain export inspections.
	1100 ET	Dallas Fed President Robert Kaplan (voter) speaks at the University of Oklahoma Price College of Business.

U.S. STOCK CALENDAR02/24/2017

Company	Ticker	Time	Event Description	Period	Estimate
Cabot Oil & Gas Corp	COG US	Bf-mkt	Q4 2016 Earnings Release	Q4 2016	0.011
Pinnacle West Capital Corp	PNW US	Bf-mkt	Q4 2016 Earnings Release	Q4 2016	0.481
Foot Locker Inc	FL US	6:45	Q4 2017 Earnings Release	Q4 2017	1.328
Public Service Enterprise Group	PEG US	7:30	Q4 2016 Earnings Release	Q4 2016	0.525
Eaton Corp PLC	ETN US	8:00	Analyst Conference	Y 2017
Foot Locker Inc	FL US	9:00	Q4 2017 Earnings Call	Q4 2017
Cabot Oil & Gas Corp	COG US	9:30	Q4 2016 Earnings Call	Q4 2016
Southwestern Energy Co	SWN US	10:00	Q4 2016 Earnings Call	Q4 2016
Alliant Energy Corp	LNT US	10:00	Q4 2016 Earnings Call	Q4 2016
Pinnacle West Capital Corp	PNW US	11:00	Q4 2016 Earnings Call	Q4 2016
Public Service Enterprise Group	PEG US	11:00	Q4 2016 Earnings Call	Q4 2016

5 Soaring Mid Caps

Today I used Barchar to sort the S & P 400 Mid Cap Index for 5 stocks with great technical indicators and charts.  The list includes Towers Watson (TW), Protective Life (PL),  Corrections Corporation of America CXW), Aqua America (WTR) and Waste Connections (WCN):

Towers Watson (TW)

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 8.46% in the last month
• Relative Strength Index 74.82%
• Barchart computes a technical support level at 70.61
• Recently traded at 72.92 with a 50 day moving average of 67.46

Protective Life (PL)

Barchart technical indicators:

• 100% Barchart technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 5 new highs and up 5.81% in the last month
• Relative Strength Index 65.58%
• Barchart computes a technical support level at 35.43
• Recently traded at 37.26 with a 50 day moving average of 33.89

Corrections Corporation of America (CXW)

Barchart technical indicators:

• 100% Barchart technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 9 new highs and up 7.23% in the last month'
• Relative Strength Index 71.64%
• Barchart computes a technical support level at 40.02
• Recently traded at 41.09 with a 50 day moving average of 38.22

Aqua America (WTR)

Barchart technical indicators:

• 96% Barchart technical buy signals
• Trend Spotter buy signal
• Above  its 20, 50 and 100 day moving averages
• 14 new highs and up 8.46% in the last month'
• Relative strength Index 73.60%
• Barchart computes a technical support level at 31.60
• Recently traded at 32.83 with a 50 day moving average of 30.06

Waste Connections (WCN)

Barchart technical indicators:

• 96% Barchart technical buy signals
• Trend spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 6 new highs and up 1.90% in the last month
• Relative strength Index 60.01%
• Barchart computes a technical support level at 35.19
• Recently traded at 36.52 with a 50 day moving average of 35.37

Barchart Morning Call 4/11

BARCHART MORNING CALL - Thursday, April 11th, 2013View Older Reports

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OVERNIGHT MARKETS AND NEWS

June E-mini S&Ps (ESM13 unch) this morning are little changed as the market looks ahead to this morning's unemployment claims report and next week's pickup in Q1 earnings reports. The Euro Stoxx 50 index this morning is slightly higher by +0.08%. Asian stocks today closed mostly higher except for the -0.30% decline in the Chinese CSI 300 index. The Nikkei index today closed +1.96% and the Hang Seng closed +0.30%. Commodity prices this morning are mildly higher by +0.16%. May crude oil (CLK13 -0.11%) is down -0.10%, May gasoline (RBK13 +0.29%) is up +0.20%, May natural gas (NGK13 +0.86%) is up +0.51%, June gold GCM13 +0.09%) is down -0.03%, May copper (HGK13 -0.42%) is down -0.12%, and agriculture prices are trading mostly higher. The dollar index (DXY00 -0.55%) this morning is down -0.48% on reduced safe-haven demand. EUR/USD (^EURUSD) is up +0.48% on a positive Italian 3-year bond auction today. USD/JPY (^USDJPY) is down -0.26%. June 10-year T-note prices (ZNM13 -0.02%) are down -0.5 tick ahead of today's 30-year bond auction.
In the first sign of a possible break in North Korea's feverish rhetoric, the official North Korean Central News Agency last night said that the suspension of business activity at the joint North-South business zone at Gaeseong is "temporary." Despite that comment, South Korean officials still believe there is a good chance that North Korea in coming days will launch an intermediate-range missile and/or conduct another nuclear test.
The South Korean central bank at its meeting today left its policy rate unchanged at 2.75%. The South Korean Kospi stock index today closed +0.7% and the won strengthened by +0.6%.
Italy today sold 4 trillion euros of a 3-year bond at 2.29%, down by 19 bp from the 2.48% on the same bond maturity sold on March 13. The bid cover ratio rose to 1.40 from 1.28 in March.
Greece's Jan unemployment rate rose to a record 27.2% from a revised 25.7% in Dec. The European Commission is forecasting that Greek GDP this year will fall -4.4%, adding to last year's plunge of -6.4%.
China's March local-currency lending was 1.06 trillion yuan ($171 billion), which was higher than market expectations of 900 billion yuan and was supportive for the Chinese economic outlook. Feb lending was 620 billion yuan. Separately, China's M2 money supply growth of +15.7% y/y was stronger than market expectations of +14.6%.
China's foreign exchange reserves rose to a record $3.44 trillion at the end of Q1, up from $3.31 trillion at the end of Q4.
Japan Feb machine orders rose +7.5% m/m, which was stronger than market expectations of +6.9% m/m and regained some ground after the -13.1% m/m decline seen in Jan. On a year-on-year basis, Feb machine orders fell to -11.3% y/y from -9.7% in Jan.

U.S. STOCK PREVIEW

Today’s weekly initial unemployment claims report is expected to show a decline of -25,000 to 360,000, reversing most of last week’s sharp increase of +28,000 to 4-month high of 385,000. Meanwhile today’s continuing claims report is expected to show a small +7,000 increase to 3.070 mln, reversing most of last week’s decline of -8,000 to 3.063 mln. The Treasury today will sell $13 billion in 30-year T-bonds, concluding this week's $66 billion coupon package. Earnings reports today include Commerce Bancshares (consensus $0.68) and JB Hunt Transport ($0.64). Conferences through the remainder of this week include the Bio-IT World Conference & Expo 2013 on Wed-Thu.

June E-mini S&Ps (ESM13 unch) this morning are slightly higher by +0.75 points (+0.05%) on a possible break in North Korea's feverish rhetoric and on a decline in yields at today's Italian 3-year bond auction. The S&P 500 index on Wednesday closed sharply higher and posted an all-time high on economic optimism and speculation that U.S. companies can beat already reduced Q1 corporate earnings estimates. Technology stocks soared after the CEO of Taiwan Semiconductor, the world's biggest chip maker, predicted that the global chip industry will grow 4% this year. Stocks shrugged off weaker-than-expected March China export growth of +10% y/y, versus expectations of +11.7% y/y, and the slightly hawkish Mar 19-20 FOMC meeting minutes. Closes: S&P 500 +1.22%, Dow Jones +0.88%, Nasdaq 100 +1.94%.

OVERNIGHT U.S. STOCK MOVERS

• Microsoft (MSFT +2.26%) was downgraded to Sell from Neutral at Goldman Sachs and cut its target to $27 from $30 due to weakening PC trends.
• Rite Aid (RAD +0.56%) reported Q4 EPS of 13 cents, better than the consensus for a 2-cent loss.
• Genesee & Wyoming (GWR +0.39%) reports Q1 traffic up 102.7% y/y. March traffic was up +100.0% y/y.
• Yum! Brands (YUM -0.04%) slid 3% in after-hours trading after the compoany said its China Division same-store sales were down 13% in March.
• According to the International Data Corporation (IDC) worldwide quarterly PC tracker, worldwide PC shipments totaled 76.3 million units in Q1, down 13.9% compared to the same quarter in 2012 and worse than the forecast decline of 7.7%. The extent of the year-on-year contraction marked the worst quarter since IDC began tracking the PC market quarterly in 1994. The results also marked the fourth consecutive quarter of year-on-year shipment declines.
• Apogee Enterprises (APOG +0.10%) slumped over 7% in after-hours trading after the company reported Q4 EPS of 15 cents, below consensus of 17 cents.
• Integra LifeSciences (IART +1.27%) announced that it initiated a voluntary recall of certain products. After the announcement, the company lowered its guidance on Q1 EPS to 30 cents to 40 cents, well below consensus of 69 cents.
• Bed Bath & Beyond (BBBY +1.55%) reported Q4 EPS of $1.68, right on consensus $1.68, but lowered its guidance on Q1 EPS to 88 cents to 94 cents, below consensus of 95 cents.
• Fortinet (FTNI) reported preliminary Q1 EPS of 10 cents, weaker than consensus of 12 cents.
• Mondelez (MDLZ +0.33%) was initiated with an "Outperform" at Wells Fargo with a valuation range of $35-$37 a share.
• Xerox (XRX +2.05%) was initiated with an "Overweight" at Piper Jaffray with a target of $12 a share.
• MEI Pharma (MEIP +2.24%) announced the presentation of new data showing the ability of its drug ME-344 to decrease tumor burden and delay recurrence of ovarian cancer.
• Ruby Tuesday (RT +5.29%) reported Q3 adjusted EPS of 10 cents, right on expectations, but raised its guidance for fiscal year 2013 to EPS of 28 cents to 32 cents, above the consensus of 25 cents.

MARKET COMMENTS

June 10-year T-notes (ZNM13 -0.02%) this morning are down 0.5 tick. June 10-year T-note futures prices on Wednesday closed lower after the Mar 19-20 FOMC meeting minutes indicated support for a slowdown of the Fed's QE program. Treasuries were also pressured on reduced safe-haven demand after the S&P 500 and Dow rallied to fresh all-time highs. Closes: TYM3 -21.5, FVM3 -5.5.
The dollar index (DXY00 -0.55%) this morning is moderately lower by -0.48% on reduced safe-haven demand and technical selling with the new 1-month low. EUR/USD (^EURUSD) is up +0.0063 (+0.48%) on the positive Italian 3-year bond auction and on technical buying with the new 1-month high this morning. USD/JPY is down -0.26 yen (-0.26%). The dollar index on Wednesday recovered from a 2-week low and closed higher after the Mar 19-20 FOMC minutes indicated several Fed members were in favor of reducing dollar negative asset purchases. USD/JPY (^USDJPY) posted a nearly 4-year high as the yen slumped when BOJ Governor Kuroda said the BOJ will take "all necessary measures" to boost inflation. Closes: Dollar index +0.223 (+0.27%), EUR/USD -0.00123 (-0.09%), USD/JPY +0.746 (+0.75%).
May WTI crude oil (CLK13 -0.11%) this morning is down -0.09 (-0.10%) and May gasoline is up +0.0058 (+0.20%). May crude oil and gasoline prices (RBK13 +0.29%) on Wednesday closed mixed. Bearish factors included (1) the increase in U.S. crude production by 30,000 bbl to 7.18 million bbl in the week ended Apr 5, its highest in 22 years, (2) OPEC's action to cut its 2013 world oil consumption estimate to +800,000 bpd from +840,000 bpd last month, and (3) the unexpected +1.699 million bbl increase in weekly EIA gasoline inventories when a draw of -1.5 million bbl was expected. Supportive factors included (1) economic optimism after the S&P 500 and the Dow rallied to fresh record highs and (2) the +250,000 bbl increase in weekly EIA crude inventories, less than expectations of a +1.5 million bbl build. Closes: CLK3 +0.44 (+0.47%), RBK3 -0.0773 (-2.63%).

GLOBAL EVENT CALENDAR04/11/2013

US	0600 ET	Philadelphia Fed President Charles Plosser speaks on monetary policy in Hong Kong at the Market News International Economic Seminar.
	0830 ET	Weekly initial unemployment claims expected -25,000 to 360,000, previous +28,000 to 385,000. Weekly continuing claims expected +7,000 to 3.070 mln, previous -8,000 to 3.063 mln.
	0830 ET	March import price index expected -0.5% m/m and -1.9% y/y, Feb +1.1% m/m and -0.3% y/y.
	0830 ET	USDA weekly Export Sales.
	0830 ET	St. Louis Fed President James Bullard gives welcoming remarks in Washington at 2013 Federal Reserve System Community Development Research Conference Resilience & Rebuilding for Low-Income Communities: Research to Inform Policy.
	0900 ET	Treasury announces 5-year TIPS auction for April 18.
	1300 ET	Treasury sells $13 billion of 30-year T-bonds.
EUR	0400 ET	ECB publishes monthly report.
GER	0200 ET	German March final-March CPI expected unrevised from preliminary of +0.5% m/m and +1.4% y/y. German final-March CPI expected unrevised from preliminary +0.4% m/m and +1.8% y/y.
JPN	1950 ET	Japan Feb tertiary industry index expected +0.7% m/m, Jan -1.1% m/m.

U.S. STOCK CALENDAR04/11/2013

Company Name	Symbol	Time	Event Description	Period	EPS Est (US$)
Commerce Bancshares Inc/MO	CBSH US	Bef-mkt	Q1 2013 Earnings Release	Q1 2013	0.678
L Brands Inc	LTD US	7:30	March 2013 Sales and Revenue Call	2013
TJX Cos Inc	TJX US	8:15	March 2013 Sales and Revenue Release	2013
Protective Life Corp	PL US	9:00	Business Update Call
Hartford Financial Services Group Inc	HIG US	9:00	Investor Day	Y 2013
Gap Inc/The	GPS US		March 2013 Sales and Revenue Release	2013
L Brands Inc	LTD US		March 2013 Sales and Revenue Release	2013
Questar Corp	STR US		Roadshow - Day 3	Y 2013
TJX Cos Inc	TJX US		March 2013 Sales and Revenue Call	2013
Costco Wholesale Corp	COST US		March 2013 Sales and Revenue Release	2013
JB Hunt Transport Services Inc	JBHT US		Q1 2013 Earnings Release	Q1 2013	0.643
Ross Stores Inc	ROST US		March 2013 Sales and Revenue Release	2013