Showing posts with label REGI. Show all posts
Showing posts with label REGI. Show all posts

Monday, August 3, 2015

BARCHART MORNING CALL 8/3

OVERNIGHT MARKETS AND NEWS
September E-mini S&Ps (ESU15 unch) are down -0.04%, led by a decline in basic-resource companies and energy producers, as the price of copper (HGU15 -0.83%) dropped to a 6-year low on concerns over Chinese demand and crude oil (CLU15 -1.57%) tumbled to a 4-1/4 month low on concern the global supply glut will persist after Iranian Oil Minister Bijan Namdar Zanganeh said Iran can raise oil output by 500,000 bpd within a week of the end of sanctions. European stocks are up +0.68% on signs of improving company earnings after Heineken NV and Commerzbank AG both reported better-than-expected earnings results. Another positive for European stocks was the upward revision to the Eurozone Jul Markit manufacturing PMI. European stocks rose despite the -17.24% plunge in Greek stocks which reopened after a 5-week suspension. The Greek economy is in shambles as it trys to recover from its debt crisis after the Greek Jul Markit manufacturing PMI collapsed to a record low of 30.2 from 46.9 in Jun. Asian stocks closed mostly lower: Japan -0.18%, Hong Kong -0.91%, China -1.11%, Taiwan -1.63%, Australia -0.35%, Singapore -0.30%, South Korea -1.15%, India +0.26%. Chinese stocks were undercut by economic concerns after a gauge of Chinese manufacturing activity last month was revised lower to its steepest pace of contraction in 2 years.
The dollar index (DXY00 +0.17%) is up +0.14%. EUR/USD (^EURUSD) is down -0.22%. USD/JPY (^USDJPY) is up +0.27%.

Sep T-note prices (ZNU15 +0.06%) are up +1 tick.
The Eurozone Jul Markit manufacturing PMI was revised upward to 52.4 from the previously reported 52.2.
The China Jul Caixin manufacturing PMI was unexpectedly revised lower to 47.8 from the previously reported 48.2, weaker than expectations of +0.1 to 48.3 and the steepest pace of contraction in 2 years.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) June personal spending (expected +0.2%, May +0.9%) and June personal income (expected +0.3%, May +0.5%), (2) June PCE deflator (expected +0.2% m/m and +0.2% y/y, May +0.3% m/m and +0.2% y/y) and June core PCE deflator (expected +0.1% m/m and +1.2% y/y, May +0.1% m/m and +1.2% y/y), (3) final-Jul Markit manufacturing PMI (expected unrevised at 53.8, prelim-Jul +0.2 to 53.8), (4) June construction spending (expected +0.6%, May +0.8% m/m), (5) July ISM manufacturing index (expected unch at 53.5, Jun +0.3 to 53.5), and (5) July total vehicle sales (expected 17.20 million).
There are 17 of the S&P 500 companies that report earnings today with notable reports including: AllState (consensus $0.96), NextEra Energy (1.50), Tyson Foods (0.92), Tenet Healthcare (0.45), General Growth Properties (0.33).
U.S. IPO's scheduled to price today include: none.
Equity conferences this week: Piper Jaffray Technology-Enabled Industrials Symposium on Tue-Wed, Needham Interconnect Conference on Wed.
OVERNIGHT U.S. STOCK MOVERS
Lowes (L -0.52%) reported Q2 EPS of 45 cents, well below consensus of 70 cents.
Diamond Offshore Drilling (DO -1.61%) reported Q2 EPS of 66 cents, higher than consensus of 47 cents.
Noble Energy (NBL -2.54%) reported Q2 EPS of 26 cents, well above conensus of 6 cents.
NiSource (NI +1.99%) reported Q2 EPS of 18 cents, weaker than consensus of 21 cents.
Torchmark (TMK -0.29%) was upgraded to 'Market Perform' from 'Underperform' at FBR Capital.
AMC Networks (AMCX +0.60%) was upgraded to 'Overweight' from 'Equal Weight' at Morgan Stanley.
Coach (COH -0.32%) was downgraded to 'Neutral' from 'Overweight' at JPMorgan Chase.
Assurant (AIZ -0.73%) was upgraded to 'Buy' from 'Underperform' at BofA/Merrill Lynch.
Monster Beverage (MNST +0.90%) should be bought on any weakness, says Stifel.
NVIDIA (NVDA -0.35%) was upgraded to 'Outperform' from 'Neutral' at Macquarie.
Yelp's (YELP +1.42%) recent guidance cut may signal weakness for similar companies such as Groupon (GRPN +0.21%) and others, according to a weekend Barron's story.
Kellogg (K +0.12%) on Sunday announced an agreement on a five-year master contract with labor unions at four of its ready-to-eat cereal factories in Battle Creek, one day before current contract expires on Monday.
Renewable Energy (REGI -1.45%) announced an agreement to acquire most of the assets of Imperium Renewables.
MARKET COMMENTS
Sep E-mini S&Ps (ESU15 unch) this morning are down -0.75 of a point (-0.04%). Friday's closes: S&P 500 -0.23%, Dow Jones -0.32%, Nasdaq -0.01%. The S&P 500 on Friday closed the day mildly lower on some pre-weekend long liquidation pressure and on the downward revision in the final-July U.S. consumer sentiment index to 93.1 from the preliminary-July level of 93.3, which was substantially weaker than market expectations of +0.7 to 94.0. Stocks received some underlying support from the rally in T-notes and the stronger-than-expected July Chicago PMI report of +5.3 to 54.7 vs expectations of +1.4 to 50.8.
Sep 10-year T-note prices (ZNU15 +0.06%) this morning are up +1 tick. Friday's closes: TYU5 +19, FVU5 +12. Sep 10-year T-notes on Friday rallied sharply on the much weaker-than-expected +0.2% increase in the Q2 ECI, which indicated weaker inflation pressure. T-notes also received a boost after the Treasury on Thursday concluded its $105 billion weekly T-note package.
The dollar index (DXY00 +0.17%) this morning is up +0.133 (+0.14%). EUR/USD (^EURUSD) is down -0.0024 (-0.22%). USD/JPY (^USDJPY) is up +0.33 (+0.27%). Friday's closes: Dollar Index -0.224 (-0.23%), EUR/USD -0.0006 (-0.05%), USD/JPY +0.11 (+0.09%). The dollar index on Friday closed mildly lower on the weak U.S. ECI report, which gives the Fed less reason to raise interest rates.
Sep crude oil (CLU15 -1.57%) this morning is down -71 cents (-1.57%) at a 4-1/4 month low and Sep gasoline (RBU15 -1.86%) is down -0.0336 (-1.90%). Friday's closes: CLU5 -1.40 (-2.89%), RBU5 +0.0030 (+0.17%). Sep crude oil and gasoline on Friday closed mixed. Crude oil prices continued to see downward pressure on expectations for a boost in Iranian oil late this year when sanctions are dropped since it does not appear that Republicans have enough Democratic support to gain a veto-proof way of stopping President Obama from dropping Iranian sanctions.
GLOBAL EVENT CALENDAR08/03/2015
US0830 ETJun personal spending expected +0.2%, May +0.9%. Jun personal income expected +0.3%, May +0.5%. Personal income and spending benchmark revisions.
0830 ETJun PCE deflator expected +0.2% m/m and +0.2% y/y, May +0.3% m/m and +0.2% y/y. Jun core PCE deflator expected +0.1% m/m and +1.2% y/y, May +0.1% m/m and +1.2% y/y.
0945 ETFinal-Jul Markit manufacturing PMI expected unrevised at 53.8, prelim-Jul +0.2 to 53.8.
1000 ETJun construction spending expected +0.6%, May +0.8% m/m.
1000 ETJul ISM manufacturing index expected unch at 53.5, Jun +0.3 to 53.5. Jul ISM new orders, Jun +0.2 to 56.0, Jul ISM employment, Jun +3.8 to 55.5. Jul ISM prices paid expected -0.2 to 49.3, Jun unch at 49.5.
1100 ETUSDA weekly grain export inspections.
1600 ETUSDA weekly crop progress.
n/aJul total vehicle sales expected 17.20 million, Jun 17.11 million. Jul domestic vehicle sales expected 13.50 million, Jun 13.34 million.
JPN0100 ETJapan Jul vehicle sales, Jun +5.4% y/y.
2130 ETJapan Jun labor cash earnings, May +0.7% y/y. Jun real cash earnings, May unch y/y.
GER0355 ETRevised German Jul Markit/BME manufacturing PMI, previous -0.4 to 51.5.
EUR0400 ETRevised Eurozone Jul Markit manufacturing PMI, previous -0.3 to 52.2.
UK0430 ETUK Jul Markit manufacturing PMI, Jun 51.4.
U.S. STOCK CALENDAR08/03/2015
CompanyTickerTimeEvent DescriptionPeriodEstimate
Reynolds American IncRAI US4:00Investor Meeting - LondonY 2015
Frontier Communications CorpFTR USBef-mktQ2 2015 Earnings ReleaseQ2 20150.029
Clorox Co/TheCLX USBef-mktQ4 2015 Earnings ReleaseQ4 20151.372
NextEra Energy IncNEE USBef-mktQ2 2015 Earnings ReleaseQ2 20151.497
Loews CorpL USBef-mktQ2 2015 Earnings ReleaseQ2 20150.7
NiSource IncNI USBef-mktQ2 2015 Earnings ReleaseQ2 20150.211
Noble Energy IncNBL USBef-mktQ2 2015 Earnings ReleaseQ2 20150.055
PPL CorpPPL USBef-mktQ2 2015 Earnings ReleaseQ2 20150.466
Tyson Foods IncTSN USBef-mktQ3 2015 Earnings ReleaseQ3 20150.921
Diamond Offshore Drilling IncDO USBef-mktQ2 2015 Earnings ReleaseQ2 20150.468
Columbia Pipeline Group IncCPGX USBef-mktQ2 2015 Earnings ReleaseQ2 20150.203
Frontier Communications CorpFTR US8:30Q2 2015 Earnings CallQ2 2015
PPL CorpPPL US8:30Q2 2015 Earnings CallQ2 2015
Diamond Offshore Drilling IncDO US8:30Q2 2015 Earnings CallQ2 2015
NextEra Energy IncNEE US9:00Q2 2015 Earnings CallQ2 2015
NiSource IncNI US9:00Q2 2015 Earnings CallQ2 2015
Tyson Foods IncTSN US9:00Q3 2015 Earnings CallQ3 2015
Ford Motor CoF US9:15July 2015 Sales and Revenue Release2015
Ford Motor CoF US10:00July 2015 Sales and Revenue Call2015
Noble Energy IncNBL US10:00Q2 2015 Earnings CallQ2 2015
Columbia Pipeline Group IncCPGX US10:00Q2 2015 Earnings CallQ2 2015
Loews CorpL US11:00Q2 2015 Earnings CallQ2 2015
Clorox Co/TheCLX US13:30Q4 2015 Earnings CallQ4 2015
American International Group IncAIG USAft-mktQ2 2015 Earnings ReleaseQ2 20151.228
XL Group PLCXL USAft-mktQ2 2015 Earnings ReleaseQ2 20150.795
Tenet Healthcare CorpTHC USAft-mktQ2 2015 Earnings ReleaseQ2 20150.453
Vornado Realty TrustVNO USAft-mktQ2 2015 Earnings ReleaseQ2 20151.243
Microchip Technology IncMCHP USAft-mktQ1 2016 Earnings ReleaseQ1 20160.71
General Growth Properties IncGGP USAft-mktQ2 2015 Earnings ReleaseQ2 20150.33
Allstate Corp/TheALL USAft-mktQ2 2015 Earnings ReleaseQ2 20150.962
Microchip Technology IncMCHP US18:00Q1 2016 Earnings CallQ1 2016 
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Tuesday, June 2, 2015

BARCHART MORNING CALL 6/2

OVERNIGHT MARKETS AND NEWS
June E-mini S&Ps (ESM15 -0.25%) this morning are down -0.20% and European stocks are down -0.13%, both at 2-week lows, although prices recovered from their worst levels on optimism over an end to the Greek credit impasse after EU Economic Commissioner Moscovici said there was "real progress" in talks. IMF chief Lagarde met with German Chancellor Merkel, ECB President Draghi and European Commission President Juncker at the German Chancellery in Berlin on Monday night in an attempt to forge a plan to unlock bailout funds for Greece. Although Greece says it can make a debt repayment due to the IMF on Friday, it is the smallest of four payments due this month that total almost 1.6 billion euros. Asian stocks closed mixed: Japan -0.13%, Hong Kong -0.47%, China +1.69%, Taiwan -0.12%, Australia -1.73%, Singapore -1.61%, South Korea -0.95%, India -2.37%. India's BSE Sensex 30 Stock Index fell over 2% even after the RBI lowered interest rates for the third time this year as the central bank cut its growth estimates for India.
Commodity prices are mostly higher. Jul crude oil (CLN15 +1.31%) is up +0.95% at a 2-week high and Jul gasoline (RBN15 +0.33%) is up +0.11%. Metals prices are higher. Aug gold (GCQ15 +0.14%) is up +0.13% and Jul copper (HGN15 +0.17%) is up +0.15%. Agricultural prices are stronger.
The dollar index (DXY00 -0.59%) is down -0.53%. EUR/USD (^EURUSD) is up +0.95% on reduced deflation concerns after Eurozone consumer prices rose or the first time in 6 months. USD/JPY (^USDJPY) is up +0.02% at a fresh 12-1/2 year high.

Sep T-note prices (ZNU15 -0.25%) are down -6.5 ticks at a 1-week low.
The Reserve Bank of India (RBI) cut its benchmark repurchase rate by 25 bp to 7.25%, right on expectations and the third interest rate cut this year. The RBI also lowered its gross value added (GVA), a component of GDP watched closely by the RBI, to 7.6% in the year though Mar 2016 from a previous estimate of 7.8%.
The Eurozone May CPI estimate rose +0.3% y/y, stronger than expectations of +0.2% y/y and the largest increase in 6 months. The May core CPI climbed +0.9% y/y, stronger than expectations of +0.7% y/y and the fastest pace of increase in 9 months.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) May New York ISM (April was +8.1 to 58.1), (2) Apr factory orders (expected -0.1% after March's +2.1% and -0.1% ex-transportation), (3) a speech by Fed Governor Lael Brainard on the U.S. economic outlook and monetary policy at the Center for Strategic and International Studies, and (4) May total vehicle sales (expected 17.10 million units vs April's 16.46 million).
There are 3 of the Russell 1000 companies that report earnings today: Dollar General (consensus $0.81), Medtronic (1.12), Ascena Retail Group (0.20).
U.S. IPO's scheduled to price today include: Nevro Corp (NVRO), Catalent (CTLT), Ferrellgas Partners (FGP), Intersect ENT (XENT).
Equity conferences during the remainder of this week include: American Society of Clinical Oncology Meeting on Mon-Tue, Andean Institutional Real Estate Forum on Mon-Tue, RBC - Conference: Global Energy & Power Executive Conference - New York on Mon-Tue, Jefferies Global Healthcare Conference on Mon-Wed, Bank of America Merrill Lynch Global Telecom & Media Conference on Tue, Goldman Sachs Lodging, Gaming, Restaurant and Leisure Conference on Tue, Keefe, Bruyette, & Woods Mortgage Finance Conference on Tue, RBC Global Energy Conference on Tue, Bank of America Merrill Lynch Global Technology Conference on Tue-Wed, Deutsche Bank Global Financial Services Investor Conference on Tue-Wed, KBW Asset Management and Capital Markets Conference on Wed, Sandler O'Neill & Partners Global Exchange and Brokerage Conference on Wed, Deutsche Bank Global Industrials and Basic Materials Conference on Wed-Thu, FBN Securities: Field Trip - 8th Semi-Annual Silicon Valley Tour on Wed-Thu, Credit Suisse Engineering & Construction Conference on Thu, Morgan Stanley Leveraged Finance Conference on Thu.
OVERNIGHT U.S. STOCK MOVERS
Intel (INTC -1.63%) was downgraded to 'Market Perform' from 'Outperform' at BMO Capital.
Big Lots (BIG +2.26%) was upgraded to 'Overweight' from 'Equal Weight' at Barclays.
Iron Mountain (IRM +0.99%) was downgraded to 'Underperform' from 'Hold' at Jefferies.
Medtronic PLC (MDT +0.50%) reported Q4 EPS of $1.16, higher than consensus of $1.12.
Dollar General (DG +0.30%) reported Q1 EPS of 84 cents, better than consensus of 81 cents.
Glenview Capital reported a 7.06% stake in Manitowoc (MTW +2.33%) .
Whiting Petroleum (WLL -1.55%) was initiated with a Buy at Evercore ISI with a price target of $45.
Prudential (PRU -0.34%) was initiated with an 'Overweight' at Piper Jaffray with a price target of $106.
AIG (AIG +0.12%) was initiated with an 'Overweight' at Piper Jaffray with a price target of $73.
Anadarko (APC +0.28%) was initiated with a 'Buy' at Evercore ISI with a price target of $100.
Palo Alto (PANW +0.60%) was initiated with a 'Buy' at Guggenheim with a price target of $200.
Point72 Asset reported a 5.1% passive stake in Renewable Energy (REGI +16.46%) .
PVH Corp. (PVH +0.04%) reported Q1 adjusted EPS of $1.50, better than consensus of $1.38, and then raised guidance on fiscal 2015 adjusted EPS view to $6.85-$6.95 from $6.75-$6.90, above consensus of $6.86.
MARKET COMMENTS
June E-mini S&Ps (ESM15 -0.25%) this morning are down -4.25 points (-0.20%) at a 2-week low. Monday's closes: S&P 500 +0.21%, Dow Jones +0.16%, Nasdaq +0.30%. The S&P 500 on Monday settled higher on the +1.3 point increase in the May ISM manufacturing index to 52.8 (stronger than expectations of +0.5 to 52.0) and the +2.2% jump in U.S. Apr construction spending, which was the biggest increase in 2-3/4 years.
Sep 10-year T-notes (ZNU15 -0.25%) this morning are down -6.5 ticks at a 1-week low. Monday's closes: TYU5 -25.00, FVU5 -14.50. Sep T-notes Monday closed lower on the stronger-than-expected May ISM manufacturing report and the +2.2% increase in U.S. Apr construction spending, which may prompt the Fed to raise interest rates sooner rather than later.
The dollar index (DXY00 -0.59%) this morning is down -0.518 (-0.53%). EUR/USD (^EURUSD) is up +0.0104 (+0.95%). USD/JPY (^USDJPY) is up +0.02 (+0.02%) at a fresh 12-1/2 year high. Monday's closes: Dollar Index +0.485 (+0.50%), EUR/USD -0.00662 (-0.60%), USD/JPY +0.644 (+0.52%). The dollar index on Monday closed higher on the stronger-than-expected U.S. May ISM manufacturing and April construction spending reports, which bolster the case for Fed rate hikes sooner rather than later. The yen showed weakness on poor Japanese interest rate differentials as USD/JPY surged to a 12-1/2 year high.
July WTI crude oil (CLN15 +1.31%) this morning is up +57 cents (+0.95%). July gasoline (RBN15 +0.33%) is up +0.0022 (+0.11%). Monday's closes: CLN5 -0.10 (-0.17%), RBN5 -0.0172 (-0.83%). Jul crude and gasoline on Monday closed lower on the stronger dollar and on record Saudi crude output as Saudi Arabian May oil production was 10.25 million bpd, unch from Apr and the highest since data began in 1962. Other bearish monthly OPEC data included (1) record Iraq oil exports with Iraq May crude exports up +2.2% to a record 3.145 million bpd, and (2) the rise in May OPEC crude production by +67,000 bpd to a 2-1/2 year high of 31.579 million bpd.
GLOBAL EVENT CALENDAR06/02/2015
US0945 ETMay New York ISM, Apr +8.1 to 58.1.
1000 ETApr factory orders expected -0.1%, Mar +2.1% and -0.1% ex-transportation.
1000 ETFed Governor Lael Brainard speaks on the U.S. economic outlook and monetary policy at the Center for Strategic and International Studies.
n/aMay total vehicle sales expected 17.10 million, Apr 16.46 million. May domestic vehicle sales expected 13.20 million, Apr 12.88 million.
GER0355 ETGerman May unemployment change expected -10,000, Apr -8,000. May unemployment rate expected unch at 6.4%.
UK0430 ETUK Apr net consumer credit expected +1.0 billion pounds, Mar +1.2 billion pounds.
0430 ETUK Apr mortgage approvals expected 63,500, Mar 61,300.
0430 ETUK Apr M4 money supply, Mar +0.3% m/m and -0.6% y/y.
0430 ETUK May Markit/CIPS construction PMI expected +0.8 to 55.0, Apr 54.2.
1901 ETUK May BRC shop price index expected -1.8% y/y, Apr -1.9% y/y.
EUR0500 ETEurozone May CPI estimate expected +0.2% y/y, Apr unch y/y. May core CPI expected +0.7% y/y, Apr +0.6% y/y.
0500 ETEurozone Apr PPI expected +0.1% m/m and -2.0% y/y, Mar +0.2% m/m and -2.3% y/y
U.S. STOCK CALENDAR06/02/2015
CompanyTickerTimeEvent DescriptionPeriodEstimate
Dollar General CorpDG US7:00Q1 2016 Earnings ReleaseQ1 20160.813
Medtronic PLCMDT US7:15Q4 2015 Earnings ReleaseQ4 20151.119
Medtronic PLCMDT US8:00Q4 2015 Earnings CallQ4 2015
PVH CorpPVH US9:00Q1 2016 Earnings CallQ1 2016
Energizer Holdings IncENR US9:00Investor Day - Edgewell Personal Care
Ford Motor CoF US9:15May 2015 Sales and Revenue Release2015
Ford Motor CoF US10:00May 2015 Sales and Revenue Call2015
Dollar General CorpDG US10:00Q1 2016 Earnings CallQ1 2016
Urban Outfitters IncURBN US10:30Annual General Meeting
Liberty Media CorpLMCA US11:00Annual General MeetingY 2015
Liberty Interactive CorpQVCA US11:10Annual General MeetingY 2015
Liberty TripAdvisor Holdings IncLTRPA US11:20Annual General MeetingY 2015
Liberty Broadband CorpLBRDA US11:30Annual General MeetingY 2015
Whiting Petroleum CorpWLL US12:00Annual General MeetingY 2015
T-Mobile US IncTMUS US12:30Annual General MeetingY 2015
International Flavors & Fragrances IncIFF US13:00Investor DayY 2015
Voya Financial IncVOYA US13:00Investor DayY 2015
Energizer Holdings IncENR US13:00Investor Day - New Energizer Household Products CompanyY 2015
ANSYS IncANSS US14:30Investor DayY 2015
Ascena Retail Group IncASNA US16:00Q3 2015 Earnings ReleaseQ3 20150.195
Pfizer IncPFE US16:30Business Update Call
Ascena Retail Group IncASNA US16:30Q3 2015 Earnings CallQ3 2015
Questar CorpSTR USRoadshow - Europe - Day 2Y 2015
WR Berkley CorpWRB USAnnual General Meeting
Nabors Industries LtdNBR USAnnual General Meeting
Ocwen Financial CorpOCN USAnnual General Meeting
Cognizant Technology Solutions CorpCTSH USAnnual General Meeting
LifePoint Health IncLPNT USAnnual General Meeting
IPG Photonics CorpIPGP USAnnual General Meeting
Delta Air Lines IncDAL USMay 2015 Sales and Revenue Release - Traffic Results2015
SolarCity CorpSCTY USAnnual General Meeting
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Wednesday, June 11, 2014

BARCHART MORNING CALL 6/11

OVERNIGHT MARKETS AND NEWS
June E-mini S&Ps (ESM14 -0.47%) this morning are down -0.40% and European stocks are down -0.64% after the World Bank cut its global 2014 GDP forecast to 2.8% from a Jan estimate of 3.2%. Also undercutting European stocks was a 4% drop in Airbus after Emirates airlines canceled a deal for $16 billion of A350 planes, the biggest-ever order cancelation. In addition, Lufthansa tumbled 14% after it lowered its earnings forecasts for this year and next. Asian stocks closed mostly lower: Japan +0.50%, Hong Kong -0.25%, China -0.02%, Taiwan +0.08%, Australia -0.29%, Singapore -0.11%, South Korea -0.01%, India -0.43%. Commodity prices are mixed. July crude oil (CLN14 +0.16%) is up +0.15% after Saudi Oil Minister Ali al-Naimi, speaking before OPEC's meeting in Vienna today, said that crude supply, demand and prices are good. July gasoline (RBN14 +0.67%) is up +0.43%. Aug gold (GCQ14 +0.25%) is up +0.18% at a 2-week high. July copper (HGN14 -0.41%) is down -0.44%. Agriculture and livestock prices are mixed ahead of the Jun WASDE crop production report later today. The dollar index (DXY00 -0.16%) is down -0.04%. EUR/USD (^EURUSD) is down -0.10%. USD/JPY (^USDJPY) is down -0.30% at a 1-week low. Sep T-note prices (ZNU14 +0.06%) are down -1.5 ticks.
The World Bank cut its 2014 global growth forecast to 2.8% from a Jan estimate of 3.2%. It also lowered its U.S. 2014 GDP forecast to 2.1% from a Jan estimate of 2.8% and cut its China 2014 GDP estimate to 7.6% from 7.7% estimated in Jan.
UK May jobless claims fell -37,400, more than expectations of -25,000, and Apr was revised to show a -28,400 decrease, more than the originally reported -25,100. The May claimant count rate fell -0.1 to 3.2%, right on expectations and the lowest in 5-1/2 years.
The UK Apr unemployment rate fell -0.2 to 6.6% for the 3-months ended Apr, a bigger decline than expectations of -0.1 to 6.7% and the lowest in 4-1/3 years.
The UK Apr average weekly earnings 3-month avg was +0.7% y/y, less than expectations of +1.2% y/y and the smallest increase in 13 months. UK Apr average weekly earnings ex-bonus 3-month avg rose +0.9% y/y, less than expectations of +1.2% y/y and the smallest increase in 6 months.
The Japan Q2 BSI large all industry business conditions tumbled to -14.6 from 12.7 in Q1. The Q2 BSI large manufacturing business conditions fell to -13.9 from 12.5 in Q1. Both fell to 3-year lows.
Japan May domestic CGPI rose +0.3% m/m and +4.4% y/y, more than expectations of +0.1% m/m and +4.1% y/y, with the +4.4% y/y gain the largest annual increase in 5-1/2 years.
U.S. STOCK PREVIEW
The Treasury today will sell $21 billion of 10-year T-notes. There is one of the Russell 1000 companies that report earnings today: H&R Block (consensus $3.23). Equity conferences during the remainder of this week include: Morgan Stanley Financials Conference on Tue-Wed, Piper Jaffray Consumer Conference on Tue-Wed, Goldman Sachs Global Healthcare Conference on Tue-Thu, William Blair Growth Stock Conference on Tue-Thu, Credit Suisse Future of Payments & Commerce Conference on Wed, Goldman Sachs North American Energy Summit on Wed, Mexico Capital Projects & Infrastructure Summit on Wed, 2nd Annual Mexico Capital Projects & Infrastructure Summit on Wed-Thu, Morgan Stanley Leveraged Finance Conference on Wed-Thu, Drexel Hamilton Aerospace and Defense Conference on Thu, and Robert W. Baird & Co. Inc. Utility & Infrastructure Symposium on Thu.








OVERNIGHT U.S. STOCK MOVERS
B. Riley kept its 'Sell' rating on Radio Shack (RSH -10.39%) and cut its price target on the stock to $0, saying a turnaround at RadioShack is unlikely given its balance sheet and limited cost cutting opportunities.
Stryker (SYK -0.47%) was upgraded to 'Buy' from 'Hold' at Argus.
Marvell (MRVL -0.07%) was upgraded to 'Buy' from 'Neutral' at Nomura.
Reynolds American (RAI -0.29%) was upgraded to 'Buy' from 'Neutral' at BofA/Merrill with a price target of $65.
Molson Coors (TAP +5.36%) was upgraded to 'Buy' from 'Underperform' at BofA/Merrill with a price target of $80.
Tiger Global Investments reported an 8% passive stake in Restoration Hardware (RH -0.94%) .
Covidien (COV -0.21%) announced U.S. FDA approval of its Apollo Onyx delivery micro catheter; the first detachable tip micro catheter available in the U.S.
Third Avenue reported a 16.36% passive stake in Spanish Broadcasting (SBSA +1.71%) .
Baker Bros. Advisors reported a 10.8% passive stake in Avanir (AVNR +2.43%) .
Sooner Holdings reported a 8.3% passive stake in Renewable Energy (REGI -0.38%) .
Ulta Salon (ULTA -0.12%) rose over 5% in after-hours trading after it reported Q1 EPS of 77 cents, better than consensus of 74 cents.
United Natural Foods (UNFI -0.85%) reported Q3 EPS of 73 cents, right on consensus.
MARKET COMMENTS
June E-mini S&Ps (ESM14 -0.47%) this morning are down -7.75 points (-0.40%). The S&P 500 index on Tuesday settled mixed as profit-taking set in after the S&P 500 rose +7.8% in the past 2 months up to Monday’s all-time high. Losses in stocks were contained on optimism that Chinese economic growth can be sustained after the PBOC announced a -0.5 point cut in reserve requirements for some banks in a policy move aimed at supporting smaller companies and agriculture. Closes: S&P 500 -0.02%, Dow Jones +0.02%, Nasdaq +0.13%.
Sep 10-year T-notes (ZNU14 +0.06%) this morning are down -1.5 ticks. Sep 10-year T-note futures prices on Tuesday dropped to a 4-week low and closed lower. Bearish factors for T-notes included (1) supply pressures as the Treasury auctions $62 billion of T-notes this week, and (2) reduced safe-haven demand after stocks erased early losses and settled little changed. Closes: TYU4 -5.50, FVU4 -3.75.
The dollar index (DXY00 -0.16%) this morning is down -0.030 (-0.04%). EUR/USD (^EURUSD) is down -0.0014 (-0.10%). USD/JPY (^USDJPY) is down -0.31 (-0.30%). The dollar index on Tuesday closed higher. Supportive factors included (1) early weakness in stocks which boosted the safe-haven demand for the dollar, and (2) speculation that divergent monetary policies among global central banks will boost the dollar’s interest rate differentials versus the euro and yen as the Fed continues to taper QE3 while the BOJ and ECB expand their monetary stimulus measures. Closes: Dollar Index +0.167 (+0.21%), EUR/USD -0.00462 (-0.34%), USD/JPY -0.176 (-0.17%).
July WTI crude oil (CLN14 +0.16%) this morning is up +16 cents (+0.15%). July gasoline (RBN14 +0.67%) is up +0.0127 (+0.43%). July crude and gasoline prices on Tuesday closed lower. July crude posted a 3-1/4 month high on expectations that Wednesday’s weekly EIA inventory data will show crude stockpiles fell -1.5 million bbl. Prices fell back, however, and closed lower on bearish factors that included (1) a stronger dollar, and (2) reduced geopolitical concerns on the prospects for a cease-fire to be implemented in eastern Ukraine as peace talks continue between Russia and Ukraine. Closes: CLN4 -0.06 (-0.06%) RBN4 -0.0103 (-0.35%).
GLOBAL EVENT CALENDAR06/11/2014
US0700 ETWeekly MBA mortgage applications, previous -3.1% with purchase sub-index -3.6% and refi sub-index -2.9%.
1030 ETEIA Weekly Petroleum Status Report.
1200 ETJun WASDE crop production report.
1300 ETTreasury auctions $21 billion 10-year T-notes.
1400 ETMay monthly budget statement expected -$142.500 billion, Apr +$106.853 billion.
UK0430 ETUK May jobless claims change expected -25,000, Apr -25,100. May claimant count rate expected -0.1 to 3.2%.
0430 ETUK Apr avg weekly earnings expected +1.2% 3-mo avg y/y, Mar +1.7% 3-mo avg y/y. Apr weekly earnings ex-bonus expected +1.2% 3-mo avg y/y, Mar +1.3% 3-mo avg y/y.
0430 ETUK Apr ILO unemployment rate expected -0.1 to 6.7% 3-months through Apr.
1901 ETUK May RICS house price balance expected 52%, Apr 54%.
JPN1950 ETJapan Apr machine orders expected -10.8% m/m and +13.3% y/y, Mar +19.1% m/m and +16.1% y/y.
U.S. STOCK CALENDAR06/11/2014
Company NameTickerTimeEvent DescriptionPeriodEstimate
H&R Block IncHRB USBef-mktQ4 2014 Earnings ReleaseQ4 20143.233
Rayonier IncRYN US7:00Business Update Call
H&R Block IncHRB US8:30Q4 2014 Earnings CallQ4 2014
Caterpillar IncCAT US9:00Annual General MeetingY 2014
Triumph Group IncTGI US9:00Investor DayY 2014
Allegion PLCALLE US9:30Annual General Meeting
Teekay CorpTK US11:00Annual General MeetingY 2013
SeaWorld Entertainment IncSEAS US11:00Annual General Meeting
Knowles CorpKN US11:00Management Conference Call
NetSuite IncN US11:30Annual General MeetingY 2014
FireEye IncFEYE US13:00Annual General Meeting
Dick's Sporting Goods IncDKS US13:30Annual General MeetingY 2014
Target CorpTGT US14:30Annual General MeetingY 2014
Progressive Corp/ThePGR USMay 2014 Sales and Revenue Release2014
Alliant Energy CorpLNT USRoadshow-Day 2Y 2014
United Parcel Service IncUPS USRoadshow - GenevaY 2014
DreamWorks Animation SKG IncDWA USAnnual General Meeting
United Continental Holdings IncUAL USAnnual General Meeting
Zynga IncZNGA USAnnual General Meeting
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Monday, May 6, 2013

Barchart Morning Call 5/6



Monday, May 6th, 2013>>View Older Reports
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OVERNIGHT MARKETS AND NEWS
June E-mini S&Ps (ESM13 -0.05%) this morning are down -0.05% and European stocks are down -0.45%. Asian stocks closed mostly higher: Japan closed for holiday, Hong Kong +0.99%, China +1.33%, Taiwan +0.42%, Australia +0.52%,Singapore +0.37%, South Korea -0.32%, India +0.50%. Commodity prices are mixed. June WTI crude oil (CLM13 +0.09%) is up +0.56% and jumped to a 1-month high in overnight trade after Israeli aircraft reportedly attacked a Syrian military research center on Sunday, which raises geopolitical risks in the Middle East. June gasoline (RBM13 -0.10%) is up +0.32%, June natural gas (NGM13 -0.49%) is down -0.84%, June gold (GCM13 +0.66%) is up +0.72%, July copper (HGN13 -0.57%) is down -0.26%. Agriculture prices are lower. The dollar index (DXY00 +0.06%) is up +0.07%. EUR/USD (^EURUSD) is down -0.10% after dovish comments from ECB Executive Board member Coeure weakened the euro. USD/JPY (^USDJPY) is up +0.19% as the yen posted a 1-week low. June 10-year T-note futures prices (ZNM13 -0.01%) are up +2 ticks.
Syria's Deputy Foreign Minister Mekdad said that recent Israeli airstrikes on his country were a "declaration of war" and that his government would retaliate in its own time. Israel has staged air strikes into Syria twice over the past 3 days reportedly targeting a shipment of missiles thought to be bound for Hezbollah militants in Lebanon, according to the Associated Press who cited unidentified Israeli officials.
The German Apr PMI Services index was unexpectedly revised up to 49.6 from the originally reported 49.2.
Eurozone Mar retail sales fell -0.1% m/m, right on expectations, and fell -2.4% y/y, weaker than expectations of -2.2% y/y.
The Eurozone Apr PMI Composite index was unexpectedly revised up to 46.9 from the originally reported 46.6.
The Eurozone May Sentix investor confidence rose +1.7 to -15.6, weaker than expectations of +2.1 to -15.2.
ECB Executive Board member Coeure said the ECB is ready to cut interest rates further if the economic outlook in the Eurozone worsens.
The China April HSBC Services PMI fell -3.2 points to 51.1 from 54.3 in March.
The Chinese yuan fell back from a 19-year high of 6.1521 against the dollar after China's currency regulator said it will increase scrutiny of cross-border capital flows entering the country disguised as trade bills.
U.S. STOCK PREVIEW
This week’s U.S. economic schedule is relatively light and is focused on this week’s $72 billion Treasury coupon package, Fed Chairman Bernanke’s keynote address on Friday, and another heavy earnings week. Q1 earnings season has peaked but there are still 46 of the S&P 500 companies that are scheduled to report this week. Q2 earnings growth for the S&P 500 companies is now expected at +5.1% y/y, better than +1.5% as of April 1, according to Thomson I/B/E/S. There are 6 of the S&P 500 companies that report earnings today: Sysco (consensus $0.43), Tyson Foods (0.45), Andarko (0.95), Frontier Communications (0.06), First Solar (0.75), EOG Resources (1.19), Vornado Realty (1.71).
Conferences this week include American Gas Association (AGA) Financial Forum on Mon, Mizuho Securities USA Healthcare Access Day on Tue, Barclays Chemical ROC Star Conference on Tue, Robert W. Baird Growth Stock Conference on Tue-Thu, Jefferies Global Technology, Media and Telecom Conference on Tue-Thu, ISI Bermuda Energy Conference on Wed, 17th Annual International Cash and Treasury Management Conference on Wed-Thu, Wells Fargo Industrial and Construction Conference on Wed-Thu, Skybridge Alternatives Conference (SALT)-Las Vegas on Wed-Thu, Sanford C. Bernstein & Co IT Services Conference on Thu.
OVERNIGHT U.S. STOCK MOVERS
Tyson Foods (TSN +1.30%) reported Q1 adjusted EPS of 36 cents, weaker than expectations of 45 cents.
Cognizant (CTSH +3.53%) was added to Evercore's "Conviction Buy List" with a $96 a share price target.
Dollar General (DG +0.19%) was upgraded to a "Buy" from "Neutral" at BofA/Merril and they raised their price target on the stock to $60 a share from $55.
Comerica (CMA +2.26%) was downgraded to "Neutral" from "Buy" at BTIG due to valuation.
Jefferies reaffirmed its "Buy" rating on Kraft Foods (KRFT +5.11%) and raised its price target on the stock to $60 a share from $52.
ADT Corp. (ADT +2.47%) was upgraded to "Equal Weight" from "Underweight" at Morgan Stanley based on valuation.
Harley-Davidson (HOG +0.35%) was initiated with an "Overweight" at Morgan Stanley with a price target of $62.
Apollo Global (APO +1.30%) reported Q1 EPS of $1.60, well ahead of consensus of $1.24.
Retailers including J.C. Penney (JCP +2.74%), Best Buy (BBY +0.99%), Barnes & Noble (BKS +1.37%), McDonald's (MCD +0.84%), Home Depot (HD +0.86%), and Gap (GPS +2.21%), lost a court bid to invalidate patents held by Alexsam related to systems that activate and recharge gift cards, according to a report by Bloomberg.
Lord, Abbett & Co. reported a 12.1% stake in Overhill Farms (OFI -1.30%).
Berkshire Hathaway (BRK) reported Q1 operating EPS of $2,302, better than consensus of $1,995.
Southwest Gas (SWX +0.42%) reported Q1 EPS of $1.73, better than consensus of $1.67.
Bunge North America reported a 10.14% passive stake in Renewable Energy (REGI +4.41%).
SAC Capital reported a 5.3% passive stake in RenaissanceRe (RNR -0.35%).
MARKET COMMENTS
June E-mini S&Ps (ESM13 -0.05%) this morning are little changed, down -0.75 of a point (-0.05%). The S&P 500 index on Friday rallied to a record high and closed higher. Stocks found support from a larger-than-expected +165,000 increase in Apr non-farm payrolls (vs expectations of +140,000). March and Feb payrolls were revised upward by an additional +114,000. Also, the Apr unemployment rate unexpectedly fell -0.1 to a 4-1/3 year low of 7.5%. Stocks shook off the -4.0% fall in Mar factory orders (vs expectations of -2.9%), and the -1.3 point slide in the Apr ISM non-manufacturing index to 53.1, a bigger drop than expectations of -0.4 to 54.0. Closes: S&P 500 +1.05%, Dow Jones +0.96%, Nasdaq 100 +1.15%.
June 10-year T-notes (ZNM13 -0.01%) this morning are up +2 ticks. June 10-year T-note futures prices on Friday tumbled to a 3-week low and closed sharply lower. The stronger-than-expected Apr non-farm payrolls boosted the outlook for economic growth and sent the S&P 500 soaring to a record high, thus reducing the safe-haven demand for Treasuries. Closes: TYM3 -25.0, FVM3 -11.5.
The dollar index (DXY00 +0.06%) this morning is up slightly by +0.054 (+0.07%). EUR/USD (^EURUSD) is down -0.0013 (-0.10%) and USD/JPY (^USDJPY) is up +0.19 (+0.19%). The dollar index on Friday rallied initially on the stronger-than-expected Apr non-farm payrolls, but then shed its gains and closed lower on speculation the data wasn’t strong enough for the Fed to reduce its dollar-negative stimulus. EUR/USD received a boost after ECB Governing Council member Nowotny said markets “over-interpreted” ECB President Draghi’s comments Thursday that the ECB would consider a deposit rate below zero. Closes: Dollar index -0.099 (-0.12%), EUR/USD +0.00501 (+0.38%), USD/JPY +1.064 (+1.09%).
June WTI crude oil (CLM13 +0.09%) this morning is up +0.54 (+0.56%) and posted a fresh 1-month high in overnight trade after Israeli airstrikes into Syria over the weekend raised geopolitical risks in the Middle East. June gasoline (RBM13 -0.10%) is up +0.0090 (+0.32%). June crude oil and gasoline on Friday closed higher as June crude posted a 1-month high. Economic optimism boosted energy prices after U.S. Apr non-farm payrolls rose more than expected, which boosted the S&P 500 to a record high and stoked speculation that fuel demand will increase. Closes: CLM3 +1.62 (+1.72%), RBM3 +0.0448 (+1.61%).
GLOBAL EVENT CALENDAR05/06/2013
US1100 ETUSDA weekly grain export inspections.
1600 ETUSDA Crop Progress.
GER0355 ETRevised German Apr PMI services expected unch at 49.2.
EUR0400 ETRevised Eurozone Apr PMI composite expected unch at 46.5.
0430 ETEurozone May Sentix investor confidence expected -15.0, Apr -17.3.
0500 ETEurozone Mar retail sales expected -0.1% m/m and -2.2% y/y, Feb -0.3% /m and -1.4% y/y.
UK1901 ETUK Apr Lloyds employment confidence, Mar -45.
JPNn/aMarkets closed for final day of Golden Week holiday.
U.S. STOCK CALENDAR05/06/2013
Company NameSymbolTimeEvent DescriptionPeriodEPS Est (US$)
Sysco CorpSYY USBef-mktQ3 2013 Earnings ReleaseQ3 20130.428
Tyson Foods IncTSN USBef-mktQ2 2013 Earnings ReleaseQ2 20130.452
Covidien PLCCOV US8:00Q4 2013 Guidance CallQ4 2013
Tyson Foods IncTSN US9:00Q2 2013 Earnings CallQ2 2013
Sysco CorpSYY US10:00Q3 2013 Earnings CallQ3 2013
Celgene CorpCELG US13:00Analyst & Investor DayY 2013
Target CorpTGT US16:15Vancouver Board of Trade Presents President, Tony Fisher, Target Canada
Frontier Communications CorpFTR US16:30Q1 2013 Earnings CallQ1 2013
First Solar IncFSLR US16:30Q1 2013 Earnings CallQ1 2013
Adobe Systems IncADBE US17:30Analyst and Investor MeetingY 2013
Anadarko Petroleum CorpAPC USAft-mktQ1 2013 Earnings ReleaseQ1 20130.945
Frontier Communications CorpFTR USAft-mktQ1 2013 Earnings ReleaseQ1 20130.058
First Solar IncFSLR USAft-mktQ1 2013 Earnings ReleaseQ1 20130.747
EOG Resources IncEOG USAft-mktQ1 2013 Earnings ReleaseQ1 20131.185
Vornado Realty TrustVNO USAft-mktQ1 2013 Earnings ReleaseQ1 20131.712
Aflac IncAFL USAnnual General MeetingY 2013
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