BARCHART MORNING CALL 10/29

BARCHART MORNING CALL

Wednesday, October 29th, 2014View Older Reports

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

E-mail:

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

OVERNIGHT MARKETS AND NEWS

December E-mini S&Ps (ESZ14 -0.08%) this morning are down -0.16% ahead of the FOMC decision later today and European stocks are up +0.16% on better-than-expected earnings results from Total SA an Schneider Electric SE. Asian stocks closed mostly higher: Japan +1.46%, Hong Kong +1.27%, China +1.44%, Taiwan +1.48%, Australia -0.09%, Singapore +0.39%, South Korea +2.19%, India +0.81%. Japanese stocks rallied as the Nikkei Stock Index rose to a 1-1/2 week high after Japan's industrial output last month rose more than expected by the most in 8 months. The Shanghai Stock Index climbed to a 1-1/2 week high after Hong Kong's securities regulator said the preparatory work for a planned trade link with Shanghai had been completed, which boosted optimism that the link between the two exchanges will be launched sooner than expected. Commodity prices are mixed. Dec crude oil (CLZ14 +1.44%) is up +0.98%. Dec gasoline (RBZ14 +1.94%) is up +1.23%. Dec gold (GCZ14 -0.37%) is down -0.15%. Dec copper (HGZ14 -0.03%) is up +0.26% at a 2-week high. Agriculture and livestock prices are higher. The dollar index (DXY00 -0.03%) is unch. EUR/USD (^EURUSD) is up +0.02%. USD/JPY (^USDJPY) is down -0.06%. Dec T-note prices (ZNZ14 -0.04%) are down -2.5 ticks.
Japan Sep industrial production rose +2.7% m/m and +0.6% y/y, stronger than expectations of +2.2% m/m and -0.1% y/y with the +2.7% m/m gain the biggest monthly increase in 8 months.
UK Sep net consumer credit rose +0.9 billion pounds, more than expectations of +0.8 billion pounds.
UK Sep mortgage approvals increased by 61,300, less than expectations of 62,000.
UK Sep M4 money supply fell -0.7% m/m, the biggest decline in 6 months. On a year-over-year basis Sep M4 money supply fell -2.5% y/y, the sixth straight y/y decline and the largest annual decrease in 22 months.

U.S. STOCK PREVIEW

The markets are unanimously expecting the FOMC at its 2-day meeting that ends today to end QE3 with a final $15 billion cut.  The Treasury today will sell $15 billion of 2-year floating rate notes and $35 billion of 5-year T-notes.   Equity conferences during the remainder of this week include:  GTEC (Government Technology Exhibition & Conference) 2014 on Tue-Thu.

OVERNIGHT U.S. STOCK MOVERS

U.S. Steel (X +5.10%) rallied over 5% in after-hours trading after it reported Q3 adjusted EPS of $2.16, well ahead of consensus of $1.17.
Marriott (MAR +2.41%) reported Q3 EPS of 65 cents, higher than consensus of 62 cents.
McKesson (MCK -0.74%) reported Q2 adjusted EPS of $2.79, stronger than consensus of $2.73.
Ameriprise (AMP +1.52%) reported Q3 EPS ex-items of $2.24, well above consensus of $1.96.
Western Digital (WDC +0.14%) reported Q1 adjusted EPS of $2.10, higher than consensus of $2.03.
Wynn Resorts (WYNN +0.86%) reported Q3 adjusted EPS of $1.95, stronger than consensus of $1.84.
Owens-Illinois (OI +4.55%) reported Q3 adjusted EPS of 75 cents, better than consensus of 74 cents.
Edison International (EIX +1.46%) reported Q3 core EPS of $1.52, well ahead of consensus of $1.33.
Anadarko (APC +2.30%) reported Q3 adjusted EPS of $1.16, below consensus of $1.27.
Aflac (AFL +1.34%) rose 3% in after-hours trading after it reported Q3 EPS of $1.51, stronger than consensus of $1.43.
Fiserv (FISV +1.72%) reported Q3 adjusted EPS of 86 cents, higher than consensus of 84 cents.
Total System (TSS +1.53%) reported Q3 adjusted EPS of 56 cents, better than consensus of 52 cents.
Gilead (GILD +0.76%) reported Q3 EPS of $1.84, weaker than consensus of $1.92.
AMC Entertainment (AMC +3.43%) reported Q3 EPS of 8 cents, right on consensus, although Q3 revenue of $633.9 million ws below consensus of $639.89 million.
Facebook (FB +0.61%) reported Q3 EPS of 43 cents, higher than consensus of 40 cents.
Electronic Arts (EA +1.65%) jumped over 6% in after-hours trading after it reported Q2 adjusted EPS of 73 cents, well above consensus of 53 cents, and raised guidance on fiscal 2015 EPS view to $2.05 from $1.85, well ahead of consensus of $1.92.
PriceSmart (PSMT +4.37%) reported Q4 EPS of 73 cents, less than consensus of 74 cents.

MARKET COMMENTS

Dec E-mini S&Ps (ESZ14 -0.08%) this morning are down -3.25 points (-0.16%). The S&P 500 index on Tuesday rose to a 1-month high and closed higher: S&P 500 +1.19%, Dow Jones +1.12%, Nasdaq +1.50%. Bullish factors included (1) the +5.5 point increase in U.S. Oct consumer confidence (Conference Board) to 94.5, stronger than expectations of +1.0 to 87.0 and the highest in 7 years, (2) the unexpected +6 point increase in the Oct Richmond Fed manufacturing index to 20, better than expectations of -3 to 11 and the highest in 3-3/4 years, and (3) strong Q3 stock earnings results with about 79% of reporting S&P 500 companies having beaten earnings estimates.
Dec 10-year T-notes (ZNZ14 -0.04%) this morning are down -2.5 ticks. Dec 10-year T-note futures prices on Tuesday closed lower: TYZ4 -6.00, FVZ4 -3.00. Bearish factors included (1) the larger-than-expected increase in U.S. Oct consumer confidence to a 7-year high, and (2) supply pressures as the Treasury auctions $108 billion of T-notes this week. Losses were contained after Sep durable goods orders and Aug S&P CaseShiller home prices both unexpectedly declined.
The dollar index (DXY00 -0.03%) this morning is unchanged. EUR/USD (^EURUSD) is up +0.0002 (+0.02%). USD/JPY (^USDJPY) is down -0.06 (-0.06%). The dollar index on Tuesday closed lower. Closes: Dollar index -0.087 (-0.10%), EUR/USD +0.00359 (+0.28%), USD/JPY +0.339 (+0.31%). Bearish factors included (1) the unexpected declines in U.S. Sep durable goods orders and Aug S&P CaseShiller home prices, which may prod the Fed into delaying an interest rate hike, and (2) long liquidation pressures in the dollar ahead of the conclusion of the FOMC meeting on Wednesday.
Dec WTI crude oil (CLZ14 +1.44%) this morning is up +80 cents (+0.98%) and Dec gasoline (RBZ14 +1.94%) is up +0.0265 (+1.23%). Dec crude and Dec gasoline on Tuesday closed higher. Closes: CLZ4 +0.42 (+0.52%), RBZ4 +0.0251 (+1.18%). Supportive factors included (1) a weaker dollar, and (2) the increase in Oct U.S. consumer confidence to a 7-year high. Gains were limited on expectations that Wednesday’s weekly EIA report will show a +3.8 million bbl jump in crude oil inventories.

GLOBAL EVENT CALENDAR10/29/2014

US	0700 ET	Weekly MBA mortgage applications, previous +11.6% with purchase sub-index -4.6% and the refi sub-index +23.3%.
	1030 ET	EIA Weekly Petroleum Status Report.
	1130 ET	Treasury auctions $15 billion 2-year floating-rate notes.
	1300 ET	Treasury auctions $35 billion 5-year T-notes.
	1400 ET	FOMC meeting announcement: no change expected in fed funds rate target range of zero to 0.25%; QE3 expected to be cut by -$15 billion to zero to end the program.
UK	0530 ET	UK Sep net consumer credit expected +0.8 billion pounds, Aug +0.9 billion pounds.
	0530 ET	UK Sep mortgage approvals expected 62,000, Aug 64,200.
	0530 ET	UK Sep M4 money supply, Aug +0.3% m/m and -1.5% y/y.

U.S. STOCK CALENDAR10/29/2014

Company Name	Ticker	Time	Event Description	Period	Estimate
WellPoint Inc	WLP US	6:00	Q3 2014 Earnings Release	Q3 2014	2.263
TE Connectivity Ltd	TEL US	6:01	Q4 2014 Earnings Release	Q4 2014	1
Praxair Inc	PX US	6:02	Q3 2014 Earnings Release	Q3 2014	1.622
Eaton Corp PLC	ETN US	6:31	Q3 2014 Earnings Release	Q3 2014	1.236
Wisconsin Energy Corp	WEC US	7:00	Q3 2014 Earnings Release	Q3 2014	0.519
Hershey Co/The	HSY US	7:00	Q3 2014 Earnings Release	Q3 2014	1.081
DENTSPLY International Inc	XRAY US	7:00	Q3 2014 Earnings Release	Q3 2014	0.595
Garmin Ltd	GRMN US	7:00	Q3 2014 Earnings Release	Q3 2014	0.711
McGraw Hill Financial Inc	MHFI US	7:10	Q3 2014 Earnings Release	Q3 2014	0.938
Hess Corp	HES US	7:30	Q3 2014 Earnings Release	Q3 2014	1.068
Automatic Data Processing Inc	ADP US	7:30	Q1 2015 Earnings Release	Q1 2015	0.601
Southern Co/The	SO US	7:30	Q3 2014 Earnings Release	Q3 2014	1.071
Waste Management Inc	WM US	7:30	Q3 2014 Earnings Release	Q3 2014	0.677
Sealed Air Corp	SEE US	7:30	Q3 2014 Earnings Release	Q3 2014	0.454
Kroger Co/The	KR US	7:45	Investor Meeting - Day 2	Y 2014
Dun & Bradstreet Corp/The	DNB US	8:00	Q3 2014 Earnings Call	Q3 2014
Owens-Illinois Inc	OI US	8:00	Q3 2014 Earnings Call	Q3 2014
Exelon Corp	EXC US	8:00	Q3 2014 Earnings Release	Q3 2014	0.715
Phillips 66	PSX US	8:00	Q3 2014 Earnings Release	Q3 2014	1.746
Ralph Lauren Corp	RL US	8:01	Q2 2015 Earnings Release	Q2 2015	2.052
WellPoint Inc	WLP US	8:30	Q3 2014 Earnings Call	Q3 2014
Automatic Data Processing Inc	ADP US	8:30	Q1 2015 Earnings Call	Q1 2015
Sealed Air Corp	SEE US	8:30	Q3 2014 Earnings Call	Q3 2014
Express Scripts Holding Co	ESRX US	8:30	Q3 2014 Earnings Call	Q3 2014
TE Connectivity Ltd	TEL US	8:30	Q4 2014 Earnings Call	Q4 2014
Hershey Co/The	HSY US	8:30	Q3 2014 Earnings Call	Q3 2014
DENTSPLY International Inc	XRAY US	8:30	Q3 2014 Earnings Call	Q3 2014
CH Robinson Worldwide Inc	CHRW US	8:30	Q3 2014 Earnings Call	Q3 2014
McGraw Hill Financial Inc	MHFI US	8:30	Q3 2014 Earnings Call	Q3 2014
Aflac Inc	AFL US	9:00	Q3 2014 Earnings Call	Q3 2014
Anadarko Petroleum Corp	APC US	9:00	Q3 2014 Earnings Call	Q3 2014
AGL Resources Inc	GAS US	9:00	Q3 2014 Earnings Call	Q3 2014
Ralph Lauren Corp	RL US	9:00	Q2 2015 Earnings Call	Q2 2015
Gannett Co Inc	GCI US	9:00	Acquisition of Cars.com by Gannett Co Inc Call
Goodyear Tire & Rubber Co/The	GT US	9:00	Q3 2014 Earnings Call	Q3 2014
Ameriprise Financial Inc	AMP US	9:00	Q3 2014 Earnings Call	Q3 2014
Kohl's Corp	KSS US	9:00	Investor Meeting	Y 2014
Hess Corp	HES US	10:00	Q3 2014 Earnings Call	Q3 2014
Marriott International Inc/DE	MAR US	10:00	Q3 2014 Earnings Call	Q3 2014
Waste Management Inc	WM US	10:00	Q3 2014 Earnings Call	Q3 2014
Eaton Corp PLC	ETN US	10:00	Q3 2014 Earnings Call	Q3 2014
Boston Properties Inc	BXP US	10:00	Q3 2014 Earnings Call	Q3 2014
Kimco Realty Corp	KIM US	10:00	Q3 2014 Earnings Call	Q3 2014
Garmin Ltd	GRMN US	10:30	Q3 2014 Earnings Call	Q3 2014
Equity Residential	EQR US	11:00	Q3 2014 Earnings Call	Q3 2014
Exelon Corp	EXC US	11:00	Q3 2014 Earnings Call	Q3 2014
Praxair Inc	PX US	11:00	Q3 2014 Earnings Call	Q3 2014
Newfield Exploration Co	NFX US	11:00	Q3 2014 Earnings Call	Q3 2014
Phillips 66	PSX US	11:00	Q3 2014 Earnings Call	Q3 2014
Cincinnati Financial Corp	CINF US	11:00	Q3 2014 Earnings Call	Q3 2014
Southern Co/The	SO US	13:00	Q3 2014 Earnings Call	Q3 2014
Macerich Co/The	MAC US	13:30	Q3 2014 Earnings Call	Q3 2014
Wisconsin Energy Corp	WEC US	14:00	Q3 2014 Earnings Call	Q3 2014
Unum Group	UNM US	16:00	Q3 2014 Earnings Release	Q3 2014	0.898
CBRE Group Inc	CBG US	16:00	Q3 2014 Earnings Release	Q3 2014	0.348
Kraft Foods Group Inc	KRFT US	16:00	Q3 2014 Earnings Release	Q3 2014	0.741
F5 Networks Inc	FFIV US	16:05	Q4 2014 Earnings Release	Q4 2014	1.481
Allstate Corp/The	ALL US	16:05	Q3 2014 Earnings Release	Q3 2014	1.335
F5 Networks Inc	FFIV US	16:30	Q4 2014 Earnings Call	Q4 2014
Akamai Technologies Inc	AKAM US	16:30	Q3 2014 Earnings Call	Q3 2014
Visa Inc	V US	17:00	Q4 2014 Earnings Call	Q4 2014
CBRE Group Inc	CBG US	17:00	Q3 2014 Earnings Call	Q3 2014
Kraft Foods Group Inc	KRFT US	17:00	Q3 2014 Earnings Call	Q3 2014
Murphy Oil Corp	MUR US	Aft-mkt	Q3 2014 Earnings Release	Q3 2014	0.986
Visa Inc	V US	Aft-mkt	Q4 2014 Earnings Release	Q4 2014	2.097
Noble Corp plc	NE US	Aft-mkt	Q3 2014 Earnings Release	Q3 2014	0.546
Akamai Technologies Inc	AKAM US	Aft-mkt	Q3 2014 Earnings Release	Q3 2014	0.566
FMC Corp	FMC US	Aft-mkt	Q3 2014 Earnings Release	Q3 2014	0.96
Williams Cos Inc/The	WMB US	Aft-mkt	Q3 2014 Earnings Release	Q3 2014	0.187
Lincoln National Corp	LNC US	Aft-mkt	Q3 2014 Earnings Release	Q3 2014	1.425
MetLife Inc	MET US	Aft-mkt	Q3 2014 Earnings Release	Q3 2014	1.38
Assurant Inc	AIZ US	Aft-mkt	Q3 2014 Earnings Release	Q3 2014	1.607
Range Resources Corp	RRC US	Aft-mkt	Q3 2014 Earnings Release	Q3 2014	0.334
Goodyear Tire & Rubber Co/The	GT US		Q3 2014 Earnings Release	Q3 2014	0.704

BARCHART MORNING CALL 4/10

BARCHART MORNING CALL

Thursday, April 10th, 2014View Older Reports

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

E-mail:

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

OVERNIGHT MARKETS AND NEWS

June E-mini S&Ps (ESM14 -0.01%) this morning are down -0.15% and European stocks are down -0.54% on concern over a slowdown in the ChinesJe economy after China's Mar exports unexpectedly fell for a second month. Asian stocks closed mostly higher: Japan unchanged, Hong Kong +1.51%, China +1.57%, Taiwan +0.20%, Australia +0.31%, Singapore -0.20%, South Korea +0.46%, India +0.06%. Hong Kong's Hang Seng Stock Index rose to a 2-3/4 month high and China's Shanghai Stock Index recovered from losses due to weak China Mar trade data and rallied up to a 1-1/2 month high after the government said it would allow a combined 23.5 billion yuan ($3.8 billion) of daily cross-border trading in equities with Hong Kong. China's Securities Regulatory Commission said investors will be able to trade 10.5 billion yuan of Hong Kong-listed stocks through the Shanghai exchange, and 13 billion yuan of mainland shares through Hong Kong. Commodity prices are mixed. May crude oil (CLK14 -0.23%) is down -0.19%. May gasoline (RBK14 -0.60%) is down -0.47%. Jun gold (GCM14 +1.30%) is up +1.24% at a 2-week high after the minutes of the latest FOMC meeting showed that several policy makers said projections for an interest-rate increase might be overstated. May copper (HGK14 -0.15%) is down -0.12%. Agriculture and livestock prices are mixed. The dollar index (DXY00 -0.01%) is down -0.05% at a 3-week low. EUR/USD (^EURUSD) is up +0.09% at a 2-week high. USD/JPY (^USDJPY) is down -0.34% at a 3-week low. June T-note prices (ZNM14 +0.15%) are up +9 ticks at a 3-week high.
The China Mar trade balance climbed to a +$7.71 billion surplus, higher than expectations of a +$1.80 billion surplus. Mar exports unexpectedly fell for a second month as they dropped -6.6% y/y, weaker than expectations of a +4.8% y/y increase. Mar imports unexpectedly fell -11.3% y/y, weaker than expectations of a +3.9% y/y increase and the largest decline in 13 months.
As expected, the BOE maintained its benchmark interest rate at 0.50% and held the asset purchase target at 375 billion pounds.
The UK Mar RICS house price balance unexpectedly rose +10 to 57%, better than expectations of a -4 point decline to 43%.
Japan Mar machine tool orders surged +41.8% y/y, the largest increase in 2-3/4 years.
Japan Feb machine orders fell -8.8% m/m and rose +10.8% y/y, weaker than expectations of -2.6% m/m and +17.5% y/y.

U.S. STOCK PREVIEW

Today’s weekly initial unemployment claims report is expected to show a decline of -6,000 to 320,000, reversing part of last week’s +16,000 increase to 326,000. Meanwhile, continuing claims are expected to show a slight decline of -1,000 to 2.835 million after last week’s increase of +22,000 to 2.836 million. Today’s March import price index is expected to rise by +0.2% m/m, adding to the +0.9% increase seen in February. The Treasury today will conclude this week’s $64 billion coupon package by selling $13 billion of 30-year T-bonds. There are 2 of the Russell 1000 companies that report earnings today: Family Dollar Stores (consensus $0.90), Commerce Bancshares (0.68). There are no equity conferences during the remainder of the week.

OVERNIGHT U.S. STOCK MOVERS

Molson Coors (TAP +0.19%) was downgraded to 'Neutral' from 'Buy' at Nomura.
Rite Aid (RAD +4.75%) reported Q4 EPS ex-items of 10 cents, more than double consensus of 4 cents.
Facebook (FB +7.25%) was upgraded to 'Buy' from 'Hold' at Pivotal Research.
Twitter (TWTR +1.70%) was upgraded to 'Hold' from 'Sell' at Cantor.
Pier 1 Imports (PIR -0.27%) reported Q4 EPS of 41 cents, right on consensus, although Q4 revenue of $515.8 million was slghtly better than consensus of $512.76 million.
Akamai (AKAM +1.34%) was upgraded to 'Buy' from 'Neutral' at B. Riley.
Family Dollar Stores (FDO +0.56%) reported Q2 EPS of 80 cents, well below consensus of 90 cents, and then lowered guidance on fiscal 2014 EPS ex-items to $3.05-$3.25, below consensus of $3.38.
Chevron (CVX +1.10%) warned in its interim update that earnings for Q1 2014 are expected to be lower than Q4, principally as a result of adverse foreign exchange effects and selected asset impairments and related charges.
Huber Capital reported a 10.14% passive stake in Uranium Energy (UEC +16.50%) .
Bed Bath & Beyond (BBBY +0.22%) fell 4% in after-hours trading after it reported Q4 EPS of $1.60, right on consensus, but reported Q4 revenue of $3.2 billion, less than consensus of $3.22 billion.
PriceSmart (PSMT +0.99%) reported Q2 EPS of 93 cents, better than consensus of 88 cents.

MARKET COMMENTS

June E-mini S&Ps (ESM14 -0.01%) this morning are down -2.75 points (-0.15%). The S&P 500 on Wednesday closed higher. Bullish factors included (1) optimism that Q1 quarterly company earnings results will be positive for stocks after Alcoa started off the earnings season by reporting higher-then-expected profits, and (2) reduced interest rate concerns after the minutes of the Mar 18-19 FOMC meeting noted the Fed members said the projections for the timing of a Fed interest rate increase were exaggerated. Closes: S&P 500 +1.09%, Dow Jones +1.11%, Nasdaq +1.76%.
Jun 10-year T-notes (ZNM14 +0.15%) this morning are up +9 ticks at a 3-week high. Jun 10-year T-note futures prices on Wednesday opened lower on reduced safe-haven demand after stocks rose, but T-notes erased their decline and rallied to a 3-week high after the minutes of the Mar 18-19 FOMC meeting said that the rise in median projections for the Fed to begin raising the Fed funds rate was exaggerated. Closes: TYM4 +5.00, FVM4 +6.25.
The dollar index (DXY00 -0.01%) this morning is down -0.041 (-0.05%) at a 3-week low. EUR/USD (^EURUSD) is up +0.0013 (+0.09%) at a 2-week high. USD/JPY (^USDJPY) is down -0.35 (-0.34%) at a 3-week low. The dollar index on Wednesday dropped to a 3-week low and closed lower. Bearish factors included (1) the dovish minutes of the Mar 18-19 FOMC meeting in which Fed members said projections for the timing of a Fed interest rate increase were overstated, and (2) strength in EUR/USD which rallied to a 2-week high on speculation the ECB will refrain from QE after the IMF on Tuesday raised its Eurozone 2014 GDP forecast to 1.2% from its Jan estimate of 1.0%. Closes: Dollar index -0.268 (-0.34%), EUR/USD +0.00585 (+0.42%), USD/JPY +0.186 (+0.18%).
May WTI crude oil (CLK14 -0.23%) this morning is down -20 cents (-0.19%) and May gasoline (RBK14 -0.60%) is down -0.0142 (-0.47%). May crude and gasoline prices on Wednesday posted 1-month highs and closed higher. Bullish factors included (1) the fall in the dollar index to a 3-week low, and (2) the -5.188 mln bbl plunge in weekly EIA gasoline inventories to a 4-1/2 month low versus expectations for a -940,000 bbl draw. Crude oil prices fell back from their best levels after the +4.03 million bbl surge in weekly EIA crude inventories to a 4-month high versus expectations of +970,000. Closes: CLK4 +1.04 (+1.01%). RBK4 +0.0283 (+0.95%).

GLOBAL EVENT CALENDAR04/10/2014

US	0830 ET	Weekly initial unemployment claims expected -6,000 to 320,000, previous +16,000 to 326,000. Weekly continuing claims expected -1,000 to 2.835 million, previous +22,000 to 2.836 million.
	0830 ET	Mar import price index expected +0.2% m/m and -0.9% y/y, Feb +0.9% m/m and -1.1% y/y.
	0830 ET	USDA weekly Export Sales.
	1100 ET	Treasury announces amount of 5-year TIPS to be auctioned Apr 17.
	1130 ET	Chicago Fed President Charles Evans, ECB Vice President Vitor Constancio and RBI Governor Raghuram Rajan speak on a panel discussion on Global Monetary Policy and Emerging Markets in Washington D.C.
	1300 ET	Treasury auctions $13 billion 30-year T-bonds.
	1400 ET	Mar monthly budget statement expected -$71.0 billion, Feb -$193.5 billion.
JPN	0200 ET	Japan machine tool orders, Feb +26.15 y/y.
	1950 ET	Japan Mar domestic CGPI expected +0.1% m/m and +1.8% y/y, Feb -0.2% m/m and +1.8% y/y.
EUR	0400 ET	ECB publishes monthly report for April.
UK	0700 ET	BOE announces interest rate decision and asset purchase target.
CHI	2130 ET	China Mar CPI expected +2.4% y/y, Feb +2.0% y/y. Mar PPI expected -2.2% y/y, Feb -2.0% y/y.

U.S. STOCK CALENDAR04/10/2014

Company Name	Ticker	Time	Event Description	Period	Estimate
Family Dollar Stores Inc	FDO US	Bef-mkt	Q2 2014 Earnings Release	Q2 2014	0.895
Commerce Bancshares Inc/MO	CBSH US	Bef-mkt	Q1 2014 Earnings Release	Q1 2014	0.677
L Brands Inc	LB US	7:30	March 2014 Sales and Revenue Call	2014
ConocoPhillips	COP US	9:00	Analyst Meeting	Y 2014
Family Dollar Stores Inc	FDO US	10:00	Q2 2014 Earnings Call	Q2 2014
Host Hotels & Resorts Inc	HST US	10:00	Investor Day	Y 2014
Gap Inc/The	GPS US		March 2014 Sales and Revenue Release	2014
Gap Inc/The	GPS US		March 2014 Sales and Revenue Call	2014
L Brands Inc	LB US		March 2014 Sales and Revenue Release	2014
Questar Corp	STR US		Roadshow - Day 3	Y 2014
Weyerhaeuser Co	WY US		Annual General Meeting
Adobe Systems Inc	ADBE US		Annual General Meeting
Costco Wholesale Corp	COST US		March 2014 Sales and Revenue Release	2014

Barchart Morning Call 7/11

BARCHART MORNING CALL

Thursday, July 11th, 2013

View Older Reports

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

E-mail:

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

OVERNIGHT MARKETS AND NEWS

September E-mini S&Ps (ESU13 +1.15%) this morning are up +0.97% at a 1-1/2 month high and European stocks are up +0.90%. Asian stocks closed higher: Japan +0.39%, Hong Kong +2.55%, China +4.61%, Taiwan +2.10%, Australia +1.31%, Singapore +1.91%, South Korea +3.24%, India +1.98%. Global stock and bond markets surged after Fed Chairman Bernanke, in a speech delivered after the U.S. markets had closed Wednesday, said that low inflation and high unemployment mean the Fed needs to continue with its stimulus measures. Commodity prices are mostly higher. Aug crude oil (CLQ13 -0.54%) is down -0.64% as it fell back from a 15-month high. Aug gasoline (RBQ13 -0.85%) is down -0.95%, Aug gold (GCQ13 +2.69%) is up +2.83% at a 2-week high, and Sep copper (HGU13 +3.09%) is up +3.02% at a 3-week high. Agricultural and livestock prices are mostly higher ahead of the USDA's monthly WASDE report later this morning. The dollar index (DXY00 -1.26%) plunged -1.30% and is at a 2-week low after Fed Chairman Bernanke said that it's too early to taper QE3. EUR/USD (^EURUSD) is up +0.65% at a 2-1/2 week high and USD/JPY (^USDJPY) is down -0.43%. September T-note prices (ZNU13 +0.85%) are up sharply by 1-02/32 points after Fed Chairman Bernanke said he backed continued bond buying.
In its monthly bulletin for July, the ECB said that its statement last week that it is committed to keep rates low for an extended period of time uses a "flexible horizon" and will depend on the Eurozone's economic performance.
German Jun wholesale prices fell -0.4% m/m, the fourth consecutive monthly decline, and rose +0.7% y/y.
In a statement following its 2-day policy meeting, the BOJ raised its outlook on the Japanese economy for the seventh straight month when it said Japan's economy "is starting to recover moderately." That was the first time the BOJ has used the word "recovery" in its assessment of the Japanese economy since Jan 2011.
Japan May machine orders surged +10.5% m/m and +16.5% y/y, the biggest annual increase in 1-3/4 years. The report was stronger than expectations of +1.9% m/m and +3.3% y/y.

U.S. STOCK PREVIEW

The Treasury today will sell $13 billion in 10-year T-bonds, concluding this week's $66 billion package of 3-year, 10-year and 30-year securities. Today’s weekly initial unemployment claims report is expected to show a small decline of -3,000 to 340,000, adding to last week’s decline of -5,000 to 343,000. Meanwhile, today’s continuing claims report is expected to show an increase of +22,000 to 2.955 million, reversing about one-half of last week’s decline of -54,000 to 2.933 million. There are two of the Russell 1000 companies that report earnings today: Progressive Corp (consensus $0.41), and Commerce Bancshares (0.71).

OVERNIGHT U.S. STOCK MOVERS

Viacom (VIAB +1.55%) was upgraded to "Market Perform" from "Underperform" at Bernstein.
Family Dollar (FDO +7.11%) was downgraded to "Equal Weight" from "Overweight" at Barclays.
The NY Post reported that Verizon Wireless, a joint venture between Verizon (VZ -0.82%) and Vodafone (VOD -0.10%) , could end up owing Apple (AAPL -0.38%) as much as $14 billion in purchase commitments if the mobile carrier fails to sell an agreed number of iPhones.
Wynn Resorts (WYNN +0.54%) was downgraded to "Underweight" from "Equal Weight" at Morgan Stanley.
Hess Corp. (HES +0.23%) was upgraded to "Overweight" from "Neutral" at JPMorgan.
New York Times (NYT -1.11%) was downgraded to "Equal Weight" from "Overweight" at Barclays.
Analog Devices (ADI +1.02%) was upgraded to "Buy" from "Hold" at Jefferies.
KB Home (KBH -2.81%) was upgraded to "Buy" from "Fair Value" at CRT Capital.
Diamond Offshore (DO -0.04%) was upgraded to "Market Perform" from "Underperform" at BMO Capital.
Transocean (RIG -0.35%) was downgraded to "Market Perform" from "Outperform" at BMO Capital.
Worldwide PC shipments dropped to 76 million units in Q2, a 10.9% decrease from the same period last year, according to preliminary results by Gartner. This marks the fifth consecutive quarter of declining shipments, which is the longest duration of decline in the PC market’s history.
Fed Chairman Bernanke who was speaking at an event late Wednesday in Cambridge, MA. said "inflation, jobs indicate accomodative policy needed" and that "a rate increase won't be automatic when jobless rate hits the Fed's target."
Yum! Brands (YUM -0.88%) reported Q2 EPS ex-items of 56 cents, better than consensus of 54 cents, although it said its June same-store-sales for its China division were down approx 10%.
PriceSmart (PSMT -1.80%) fell nearly 4% in after-hours trading after it reported Q3 EPS of 61 cents, weaker than consensus of 64 cents.
Walgreens (WAG +3.01%) increased its quarterly dividend from 27.5 cents to 31.5 cents per share.

MARKET COMMENTS

Sep E-mini S&Ps (ESU13 +1.15%) this morning are up sharply by +16.00 points (+0.97%) after Fed Chairman Bernanke said he backs sustained stimulus. The U.S. stock market on Wednesday opened lower on concerns about the Chinese economy after China Jun exports unexpectedly fell -3.1% y/y, the biggest decline in 3-1/2 years. However, prices moved higher after the Jun 18-19 FOMC meeting minutes showed many members wanted to see further progress in the labor market before they start to taper QE3. Closes: S&P 500 +0.02%, Dow Jones -0.06%, Nasdaq 100 +0.55%.
Sep 10-year T-notes (ZNU13 +0.85%) this morning are up sharply by +1-02/32 points after Fed Chairman Bernanke said he favors continued bond buying. Sep 10-year T-note prices on Wednesday closed lower on (1) reduced safe-haven demand as stocks rallied, and (2) weak demand for the Treasury’s $21 billion 10-year T-note auction that had a bid-to-cover ratio of 2.57, weaker than the 12-auction average of 2.87. Closes: TYU3 -7.0, FVU3 -3.50.

The dollar index (DXY00 -1.26%) this morning is down -1.089 (-1.30%) to a 2-week low on signs the Fed favors maintaining its dollar-negative asset purchases. EUR/USD (^EURUSD) is up +0.0084 (+0.65%) at a 2-1/2 week high. USD/JPY (^USDJPY) is down -0.43 (-0.43%). The dollar index on Wednesday closed lower after the Jun 18-19 FOMC meeting minutes indicated Fed members wanted more evidence of economic strength before tapering QE3. EUR/USD rebounded after the ECB issued a statement saying that Tuesday’s comments from ECB Executive Board member Asmussen that interest rates will stay low for an extended period “beyond 12 months” was not intended to give guidance on rates for an exact period. Closes: Dollar index -0.539 (-0.64%), EUR/USD +0.01949 (+1.53%), USD/JPY -1.773 (-1.75%).
Aug WTI crude oil (CLQ13 -0.54%) this morning is down -68 cents a barrel (-0.64%) and Aug gasoline (RBQ13 -0.85%) is down -2.86 cents per gallon (-0.95%). Crude oil and gasoline prices on Wednesday rallied sharply with crude at a 14-month high and gasoline at a 3-month high. Bullish factors include (1) the -9.87 million bbl plunge in weekly EIA crude inventories, more than three times expectations of a -3.2 million bbl draw), (2) the -2.69 million bbl decline in inventories at Cushing, the delivery point of WTI futures, and (3) the fall in weekly EIA gasoline inventories (-2.634 million bbl vs. expectations of +1.0 million bbl). Crude oil prices ignored the +1.8% increase in U.S. crude production to a new 21-year high of 7.4 million bpd in the week ended July 5. Closes: CLQ3 +2.99 (+2.89%), RBQ3 +0.0889 (+3.04%).

GLOBAL EVENT CALENDAR07/11/2013

US	0830 ET	Weekly initial unemployment claims expected -3,000 to 340,000, previous -5,000 to 343,000. Weekly continuing claims expected +22,000 to 2.955 mln, previous -54,000 to 2.933 mln.
	0830 ET	Jun import price index expected unch m/m and +0.4% y/y, May -0.6% m/m and -1.9% y/y.
	0830 ET	USDA weekly Export Sales.
	1100 ET	Treasury announces amount of 10-year TIPS to be auctioned July 18 (previous $13 billion).
	1200 ET	July WASDE crop production report.
	1300 ET	Treasury auctions $13 billion in 30-year T-bonds.
	1400 ET	Jun monthly budget statement expected +$100.0 billion, May -$138.732 billion..
GER	0200 ET	German Jun wholesale price index, May -0.4% m/m and -0.1% y/y.
EUR	0400 ET	ECB publishes monthly economic report.
JPN	n/a	BOJ announces monetary policy decision after 2-day meeting.

U.S. STOCK CALENDAR07/11/2013

Company Name	Symbol	Time	Event Description	Period	EPS Est (US$)
L Brands Inc	LTD US	7:30	June 2013 Sales and Revenue Call	2013
Yum! Brands Inc	YUM US	9:15	Q2 2013 Earnings Call	Q2 2013
Macy's Inc	M US		June 2013 Sales and Revenue Release	2013
Gap Inc/The	GPS US		June 2013 Sales and Revenue Release	2013
L Brands Inc	LTD US		June 2013 Sales and Revenue Release	2013
Progressive Corp/The	PGR US		Q2 2013 Earnings Release	Q2 2013	0.408
Progressive Corp/The	PGR US		Q2 2013 Earnings Release - June Sales	Q2 2013	0.408
Costco Wholesale Corp	COST US		June 2013 Sales and Revenue Release	2013
Costco Wholesale Corp	COST US		June 2013 Sales and Revenue Call	2013
Commerce Bancshares Inc/MO	CBSH US		Q2 2013 Earnings Release	Q2 2013	0.714
Ross Stores Inc	ROST US		June 2013 Sales and Revenue Release	2013
WP Carey Inc	WPC US		Annual General Meeting

Barchart Morning Call 4/10

BARCHART MORNING CALL

Wednesday, April 10th, 2013View Older Reports

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

E-mail:

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

OVERNIGHT MARKETS AND NEWS

June E-mini S&Ps (ESM13 +0.27%) this morning are trading mildly higher by +0.32% due to a +1.47% rally in the Euro Stoxx 50 index and generally higher stocks in Asia. The market is hoping for today's FOMC minutes to show a continued firm dedication among FOMC members to QE3. Japan's Nikkei index today closed +0.73% and the Hang Seng closed +0.75%, but China's CSI 300 index fell by -0.17%. Commodity prices today are little changed on average. May crude oil (CLK13 -0.57%) prices are trading -0.39%, May gasoline (RBK13 -1.16%) is down -0.95%, May natural gas is up +1.32%, June gold (GCM13 -0.49%) is down -0.45%, May copper (HGK13 -0.52%) is down -0.35%, and agriculture prices are mixed. The dollar index (DXY00 +0.03%) is slightly higher by +0.06%. EUR/USD (^EURUSD) is up +0.12% and USD/JPY (^USDJPY) is up +0.52%. June 10-year T-note (ZNM13 -0.09%) prices are down -5 ticks.
President Obama today submits his budget to Congress. The budget calls for trimming Social Security and other entitlements in an attempt to get negotiations started on a grand bargain by this summer when Congress must increase the debt ceiling.
The Polish central bank today left its policy rate unchanged at 3.25%, which was fully in line with market expectations. The Polish central bank had already signaled that its rate cut regime is over after the 1.5 point cut since November. The bank is now waiting to see if the Polish economy starts to recover after being hurt by the Eurozone recession.
China's March export growth eased to +10.0% y/y from +21.8% y/y in Feb and was mildly weaker than market expectations of +11.7% . Imports rose +14.1% y/y after the -15.2% decline seen in Feb. China's March trade balance posted a deficit of -$0.88 billion after the $15.23 billion surplus seen in Feb and was much worse than market expectations for a surplus of $15.1 billion. The quality of China's trade data has been called into question by a number of Wall Street firms who believe the trade export data has recently been inflated, possibly by companies seeking to repatriate more foreign currency or by regional governments to prop up their performance. The Chinese customs administration has stood by the quality of the data saying that it is based on actual invoices. In any case, the markets were not surprised to see weaker export growth in March as a reversal to some of the inflated data in Jan and Feb.
Italy today successfully sold 11 billion euros of 1-year bills at 0.922%, down from 1.28% at the last auction of those bills on March 12. The Italian Treasury also sold 3 billion euros of 91-day bills today at 0.243%.
OPEC trimmed its forecast for 2013 world oil consumption growth to +800,000 bpd y/y (+0.09% y/y) from +840,000 bpd last month. The lower forecast was due to weaker demand seen in Q1.

U.S. STOCK PREVIEW

The markets will be carefully assessing today’s minutes from the March 19-20 FOMC meeting to gauge the strength of the FOMC's commitment to maintaining QE3 at its current size at least through year-end. The Treasury today will sell $21 billion in 10-year T-notes. Q1 earnings season picks up today with earnings reports from Constellation Brands (consensus $0.45), Family Dollar Stores ($1.22), Fastenal ($0.37), CarMax ($0.46), Bed Bath & Beyond ($1.68), and Progressive Corp ($0.44).
Conferences through the remainder of this week include CESCO 2013 - XII World Copper Conference on Tue-Wed, RBC Capital Markets Iron Ore Conference on Wed, and Bio-IT World Conference & Expo 2013 on Wed-Thu.

June E-mini S&Ps (ESM13 +0.27%) this morning are up +5.00 points (+0.32%) as positive sentiment continues. The S&P 500 index on Tuesday closed mildly higher as optimism about China increased after its March CPI fell to +2.1% from +3.2% in Feb, which reduces the pressure on Chinese authorities to tighten policy in response to strong home prices. Other supportive factors including stability in European peripheral bonds and carry-over support from the BOJ’s massive new QE program announced last week. Closes: S&P 500 +0.35%, Dow Jones +0.41%, Nasdaq 100 +0.67%.

OVERNIGHT U.S. STOCK MOVERS

• Constellation Brands (STZ +0.12%) reported Q4 EPS of 47 cents, above the consensus of 45 cents.
• CarMax (KMX -1.65%) reported Q4 EPS of 46 cents, which was in line with the consensus.
• Family Dollar (FDO +0.69%) reported Q2 EPS of $1.21, slightly below the consensus of $1.23.
• Fastenal (FAST +1.17%) reported Q1 EPS of 37 cents, which was in line with the consensus.
• Apple (AAPL +0.18%) and Yahoo (YHOO) are in talks to deeper their iPhone partnership, according to the WSJ.
• First Solar (FSLR +45.53%) will acquire TetraSun from JX Nippon Oil & Energy and other investors. The terms were not disclosed.
• PriceSmart (PSMT -0.26%) rallied 3.5% in after-hours trading after reporting positive earnings news.
• Health Management (HMA -0.40%) plunged 10% in after-hours after announcing disappointing Q1 results.
• Realogy (RLGY -2.27%) fell 7% in after-hours trading after a Q1 revenue revenue miss.

MARKET COMMENTS

June 10-year T-notes (ZNM13 -0.09%) this morning are down -5 ticks on reduced safe-haven demand with higher U.S. and European stock indexes. June 10-year T-note futures prices on Tuesday closed slightly lower on reduced safe-haven demand with the higher close in the U.S. stock market and reduced concerns about China. Closes: TYM3 -1.5, FVM3 +0.25.
The dollar index (DXY00 +0.03%) this morning is slightly higher by +0.05 points (+0.06%). EUR/USD (^EURUSD) is up +0.0016 (+0.12%) and USD/JPY (^USDJPY) is up +0.51 yen (+0.52%). The dollar index on Tuesday closed moderately lower on reduced safe-haven demand with the rally in the S&P 500 index. EUR/USD closed higher as Portugal’s bond and CDS prices were relatively stable and did not indicate any fresh concerns about Portugal’s commitment to its adjustment program. Closes: Dollar index -0.44 (-0.54%), EUR/USD +0.0074 (+0.57%), USD/JPY -0.34 (-0.34%).
May WTI crude oil (CLK13 -0.57%) this morning is down -0.37 (-0.39%) and May gasoline (RBK13 -1.16%) is down -0.0279 (-0.95%). May crude oil and gasoline prices on Tuesday closed higher on continued short-covering and optimism about China with the decline in its CPI rate to +2.1%. Crude oil prices were able to shake off news that API crude oil inventories soared by +5.06 million bbls. In addition, crude oil inventories at Cushing rose by 888,000 bbl to 50.0 million due to the diversion of oil to pipelines feeding Cushing due to the leak at Exxon’s pipeline in Arkansas. Closes: CLK3 +0.84 (+0.90%), RBK3 +0.0331 (+1.14%).

GLOBAL EVENT CALENDAR04/10/2013

US	n/a	Obama administration scheduled to deliver 2014 budget to Congress.
	0700 ET	Weekly MBA mortgage applications, previous -4.0% with purchase sub-index +1.4% and refi sub-index -5.6%.
	0730 ET	Atlanta Fed President Dennis Lockhart makes concluding remarks at the Atlanta Fed’s conference on “Maintaining Financial Stability: Holding a Tiger by the Tail.”
	1030 ET	EIA Weekly Petroleum Status Report.
	1200 ET	USDA WASDE report.
	1210 ET	IMF Chief Lagarde speaks to Economic Club of New York.
	1300 ET	Treasury sells $21 billion of 10-year T-notes.
	1400 ET	U.S. March monthly budget statement.
	1400 ET	Minutes from March 19-20 FOMC meeting.
	1700 ET	Dallas Fed President Richard Fisher speaks on economic and monetary policy at University of Texas at El Paso.
JPN	1950 ET	Japan M2 expected +2.9% y/y, Feb +2.9% y/y. March M3 expected +2.4% y/y, Feb +2.4% y/y.
	1950 ET	Japan March domestic CGPI expected +0.2% m/m and -0.4% y/y, Feb +0.4% m/m and -0.1% y/y.
	1950 ET	Japan Feb machine orders expected +6.9% y/y and -7.6% y/y, Jan -13.1% m/m and -9.7% y/y.
	2200 ET	Tokyo March average office vacancies, Feb 8.57%.

U.S. STOCK CALENDAR04/10/2013

Company Name	Symbol	Time	Event Description	Period	EPS Est (US$)
Constellation Brands Inc	STZ US	Bef-mkt	Q4 2013 Earnings Release	Q4 2013	0.447
Family Dollar Stores Inc	FDO US	7:00	Q2 2013 Earnings Release	Q2 2013	1.216
Fastenal Co	FAST US	7:00	Q1 2013 Earnings Release	Q1 2013	0.371
MSC Industrial Direct Co Inc	MSM US	7:30	Q2 2013 Earnings Release	Q2 2013	0.9
CarMax Inc	KMX US	7:35	Q4 2013 Earnings Release	Q4 2013	0.455
Advance Auto Parts Inc	AAP US	8:30	Investor & Analyst Conference	Y 2013
Health Management Associates Inc	HMA US	9:00	Q1 2013 Earnings Call	Q1 2013
CarMax Inc	KMX US	9:00	Q4 2013 Earnings Call	Q4 2013
Schlumberger Ltd	SLB US	9:30	Annual General Meeting	Y 2013
Family Dollar Stores Inc	FDO US	10:00	Q2 2013 Earnings Call	Q2 2013
Fastenal Co	FAST US	10:00	Q1 2013 Earnings Call	Q1 2013
Constellation Brands Inc	STZ US	10:30	Q4 2013 Earnings Call	Q4 2013
Bed Bath & Beyond Inc	BBBY US	Aft-mkt	Q4 2013 Earnings Release	Q4 2013	1.679
Progressive Corp/The	PGR US		Q1 2013 Earnings Release	Q1 2013	0.444
Progressive Corp/The	PGR US		Q1 2013 Earnings Release - March Sales	Q1 2013	0.444
Questar Corp	STR US		Roadshow - Day 2	Y 2013