MORNING CALL 11/10

MORNING CALL

Tuesday, November 10th, 2015View Older Reports

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OVERNIGHT MARKETS AND NEWS

December E-mini S&Ps (ESZ15 -0.27%) are down -0.12% and European stocks are down -0.22% at a 1-week low as deflation concerns in China weighed on global equity markets. Miners and raw material producers are weaker after China Oct producer prices fell by the most in 6 years, which undercut industrial metals prices and sent the price of copper (HGZ15 -0.65%) down -0.78% to a 2-1/2 month low. Asian stocks settled mostly lower: Japan +0.15%, Hong Kong -1.43%, China -0.18%, Taiwan -1.22%, Australia -0.40%, Singapore closed for holiday, South Korea -1.34%, India -1.45%. Japan's Nikkei Stock index bucked the trend and closed higher as bank stocks rallied after Reuters reported that the government is considering raising the deposit limit on savings accounts by between 3 million yen ($24,347) and 5 million yen this fiscal year. Losses in Chinese stocks were limited on speculation the weaker-than-expected China Oct CPI gives the PBOC more room for monetary easing.

The dollar index (DXY00 +0.13%) is up +0.20%. EUR/USD (^EURUSD) is down -0.18% on the prospects for additional easing measures from the ECB. USD/JPY (^USDJPY) is up +0.03%.

Dec T-note prices (ZNZ15 +0.15%) are up +5.5 ticks.

ECB Board member and Bank of Finland Governor Liikanen said that "decelerating growth in the emerging economies threatens to dampen global activity" and the Governing Council "is willing and able to act by using all the instruments available within its mandate if warranted in order to maintain an appropriate degree of monetary accommodation."

Reuters reports that four unnamed ECB Governing Council members say a consensus is forming around cutting the deposit rate in December, which currently stands at -0.2%. Three of the policymakers say debate is now about the size of the rate cut with some arguing that a -0.1% reduction is already priced in by markets.

China Oct CPI rose +1.3% y/y, less than expectations of +1.5% y/y and the slowest pace of increase in 5 months.

China Oct PPI fell -5.9% y/y, right on expectations and the fastest pace of decline in 6 years.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Oct import price index (expected -0.1% m/m and -9.4% y/y, Sep -0.1% m/m and -10.7% y/y), (2) Sep wholesale inventories (expected +0.1% m/m, Aug +0.1% m/m) and Sep wholesale trade sales (expected -0.1% m/m, Aug -1.0% m/m), (3) the Treasury's auction of $24 billion of 10-year T-notes, and (4) Chicago Fed President Charles Evans' speech on a panel at a conference on government debt management.

There are 2 of the S&P 500 companies that report earnings today: DR Horton (consensus $0.63), Rockwell Automation (1.78).

U.S. IPO's scheduled to price today: Mesoblast Ltd (MBLTY), WaVe Life Sciences (SVE), Voyager Therapeutics (VYGR), Equity Bancshares (EQBK), Advanced Accelerator (AAAP), American CareSource Holdings (GNOW).

Equity conferences today include: Morgan Stanley Global Chemicals & Agriculture Conference on Mon-Tue, Baird Healthcare Conference on Mon-Wed, Edison Electric Institute Financial Conference on Mon-Wed, Robert W. Baird & Co. Industrial Conference on Mon-Wed, Citi Financial Technology Conference on Tue, J.P. Morgan Ultimate Services Investor Conference on Tue, Mizuho Securities Technology Corporate Access Day on Tue, Mitsubishi UFJ Securities: Healthcare Conference - Seattle on Tue, Bank of America Merrill Lynch Global Energy Conference on Tue-Wed, Credit Suisse Boston Financials Conference on Tue-Wed, Credit Suisse Health Care Conference on Tue-Wed, Wells Fargo Securities Technology, Media and Telecom Conference on Tue-Wed, RBC Capital Markets Technology, Internet, Media and Telecommunications Conference on Tue-Wed, Stephens Inc Fall Investment Conference on Tue-Wed, Jefferies Energy Conference on Wed, UBS Building & Building Products CEO Conference on Wed.

OVERNIGHT U.S. STOCK MOVERS

The Gap (GPS -2.81%) slid over 4% in pre-market trading after it reported Oct same-store-sales were down -3.0% y/y, weaker than estimates of down-0.4% y/y. Gap then lowered guidance on Q3 adjusted EPS to 62 cents-63 cents, below consensus of 67 cents.

DR Horton (DHI -2.14%) reported Q4 EPS of 71 cents, higher than consensus of 63 cents.

Rockwell Automation (ROK -1.11%) reported Q4 EPS of $1.57, less than consensus of $1.78.

Synchrony Financial (SYF -4.30%) will replace Genworth (GNW +0.42%) in the S&P 500 as of the close of trading on Nov 17.

Foot Locker (FL +0.36%) was downgraded to 'Neutral' from 'Buy' at Buckingham.

Rackspace Hosting (RAX -4.21%) climbed over 7% in after-hours trading after it reported Q3 EPS of 26 cents, higher than consensus of 21 cents.

International Flavors & Fragrances (IFF +0.80%) reported Q3 EPS of $1.39, higher than consensus of $1.35.

McDermott (MDR -2.60%) rose over 5% in after-hours trading after it reported Q3 adjusted EPS of 9 cents, better than consensus of 5 cents.

Caesars Entertainment (CZR -1.72%) fell over 2% in after-hours trading after it reported a continuing operations Q3 EPS loss of -$5.44 and said that results prior to Jan of 2015 have not been adjusted to reflect its filing for Chapter 11.

Lionsgate (LGF -2.77%) tumbled 6% in after-hours trading after it reported an unexpected Q2 EPS loss of -19 cents, weaker than consensus of a 6 cent profit.

OPKO Health (OPK -0.10%) rose over 5% in after-hours trading after it reported Q3 EPS of 25 cents, much better than consensus for a -2 cent loss.

Jazz Pharmaceuticals (JAZZ -1.82%) fell nearly 4% in after-hours trading after it lowered guidance on fiscal 2015 EPS to $9.45-$9.60 from an Aug estimate of $9.45-$9.75, below consensus of $9.66.

Depomed (DEPO +1.21%) climbed 6% in after-hours trading after it reported adjusted Q3 EPS of 33 cents, better than consensus of 19 cents.

MARKET COMMENTS

Dec E-mini S&Ps (ESZ15 -0.27%) this morning are down -2.50 points (-0.12%). Monday's closes: S&P 500 -0.98%, Dow Jones -1.00%, Nasdaq -1.10%. The S&P 500 on Monday sold off to a 1-week low and closed lower on concern that the slowdown in China will undercut global growth after China Oct exports fell -6.9% y/y, more than expectations of -3.2% y/y, and after China Oct imports fell -18.8% y/y, more than expectations of -15.2% y/y. In addition, the OECD cut its global economic forecast for the second time in three months, cutting its global 2015 GDP estimate to 2.9% from a Sep forecast of 3.0%.

Dec 10-year T-notes (ZNZ15 +0.15%) this morning are up +5.5 ticks. Monday's closes: TYZ5 -0.50, FVZ5 unch. Dec T-notes on Monday posted a fresh 3-1/2 month nearest-futures low but recovered and closed little changed. T-notes were undercut by negative carryover from Friday's larger-than-expected increase in U.S. Oct non-farm payrolls and on the larger-than-expected increase in U.S. Oct average hourly earnings, which bolstered the likelihood that the Fed will raise interest rates at December's FOMC meeting. T-notes were also undercut by comments from Chicago Fed President Evans, who previously argued that the Fed should wait until next year to raise interest rates, when he said he's "not predisposed" to vote against raising interest rates at the Dec FOMC meeting. T-notes recovered nearly all of their losses on increased safe-haven demand after stocks sold off.

The dollar index (DXY00 +0.13%) this morning is up +0.195 (+0.20%). EUR/USD (^EURUSD) is down -0.0019 (-0.18%). USD/JPY (^USDJPY) is up +0.04 (+0.03%). Monday's closes: Dollar Index -0.189 (-0.19%), EUR/USD +0.0011 (+0.10%), USD/JPY +0.05 (+0.04%). The dollar index on Monday closed lower on strength in EUR/USD after the Eurozone Nov Sentix investor confidence rose more than expected. The dollar index was also undercut by the weaker-than-expected China Oct exports and imports report that signaled weakness in China's economy that may slow global growth and prompt the Fed to delay an interest rate increase.

Dec crude oil (CLZ15 +0.59%) this morning is up +12 cents (+0.27%) and Dec gasoline (RBZ15 -0.30%) is down -0.0090 (-0.66%). Monday's closes: CLZ5 -0.42 (-0.95%), RBZ5 +0.0021 (+0.15%). Dec crude oil and gasoline on Monday settled mixed with Dec crude at a 1-week low. Crude oil prices were undercut by concerns about global economic growth after the weak Chinese trade report and after the OECD cut its 2015 and 2016 global GDP estimates. Gasoline prices found support on the weaker dollar and the increase in the crack spread to a 2-month high, which signals strong demand for gasoline and distillate products.

GLOBAL EVENT CALENDAR11/10/2015

US	0830 ET	Oct import price index expected -0.1% m/m and -9.4% y/y, Sep -0.1% m/m and -10.7% y/y.
	1000 ET	Sep wholesale inventories expected +0.1% m/m, Aug +0.1% m/m. Sep wholesale trade sales expected -0.1% m/m, Aug -1.0% m/m.
	1200 ET	USDA Nov WASDE crop production.
	1300 ET	Treasury auctions $24 billion 10-year T-notes.
	1715 ET	Chicago Fed President Charles Evans speaks on a panel at a conference on government debt management.
JPN	0000 ET	Japan Oct eco-watchers survey current expected +0.5 to 48.0, Sep 47.5. Oct eco-watchers survey outlook expected +0.2 to 49.3, Sep 49.1.

U.S. STOCK CALENDAR11/10/2015

Company	Ticker	Time	Event Description	Period	Estimate
DR Horton Inc	DHI US	Bef-mkt	Q4 2015 Earnings Release	Q4 2015	0.627
Rockwell Automation Inc	ROK US	Bef-mkt	Q4 2015 Earnings Release	Q4 2015	1.78
Ventas Inc	VTR US	8:30	Investor Day	Y 2015
Rockwell Automation Inc	ROK US	8:30	Q4 2015 Earnings Call	Q4 2015
Cummins Inc	CMI US	9:00	Analyst Day	Y 2015
International Flavors & Fragrances Inc	IFF US	10:00	Q3 2015 Earnings Call	Q3 2015
DR Horton Inc	DHI US	10:00	Q4 2015 Earnings Call	Q4 2015
McDonald's Corp	MCD US	13:00	Investor Meeting	Y 2015
Broadcom Corp	BRCM US	14:00	Extraordinary Shareholders Meeting	Y 2015
Avago Technologies Ltd	AVGO US	14:00	Extraordinary Shareholders Meeting
AGL Resources Inc	GAS US		Shareholders Meeting
Automatic Data Processing Inc	ADP US		Annual General Meeting
Corning Inc	GLW US		Shareholders Meeting
EI du Pont de Nemours & Co	DD US		Shareholders Meeting
Duke Energy Corp	DUK US		Shareholders Meeting
Emerson Electric Co	EMR US		Shareholders Meeting
EQT Corp	EQT US		Shareholders Meeting
Helmerich & Payne Inc	HP US		Shareholders Meeting
CenterPoint Energy Inc	CNP US		Shareholders Meeting
Kroger Co/The	KR US		Shareholders Meeting
Eli Lilly & Co	LLY US		Shareholders Meeting
Exelon Corp	EXC US		Shareholders Meeting
Plum Creek Timber Co Inc	PCL US		Shareholders Meeting
Sherwin-Williams Co/The	SHW US		Shareholders Meeting
JM Smucker Co/The	SJM US		Shareholders Meeting
BB&T Corp	BBT US		Shareholders Meeting
TECO Energy Inc	TE US		Shareholders Meeting
United Technologies Corp	UTX US		Shareholders Meeting
WEC Energy Group Inc	WEC US		Shareholders Meeting
PACCAR Inc	PCAR US		Shareholders Meeting
Costco Wholesale Corp	COST US		Shareholders Meeting
Linear Technology Corp	LLTC US		Shareholders Meeting
United Parcel Service Inc	UPS US		Roadshow - Day7	Y 2015
Darden Restaurants Inc	DRI US		Shareholders Meeting
Darden Restaurants Inc	DRI US		Shareholders Meeting
Diamond Offshore Drilling Inc	DO US		Shareholders Meeting
Principal Financial Group Inc	PFG US		Roadshow - Day 2	Y 2015
Cimarex Energy Co	XEC US		Shareholders Meeting
Avago Technologies Ltd	AVGO US		Special Meeting - M&A Vote
Spectra Energy Corp	SE US		Shareholders Meeting
Visa Inc	V US		Shareholders Meeting
Visa Inc	V US		Shareholders Meeting
Visa Inc	V US		Shareholders Meeting

Barchart Morning Call 1/30

Barchart Morning Call

BC - Wed Jan 30, 7:00AM CST

Overnight Developments

• March E-mini S&Ps this morning are trading unchanged ahead of today's FOMC meeting and GDP and ADP reports. European stocks are down -0.24% while Asian stocks closed higher almost across the board. Japan closed +2.28%, Hong Kong closed +0.71%, and China closed +0.48%. Commodity prices are trading moderately higher by +0.53%. March crude oil is up +0.33%, March gasoline is up +0.19%, Feb gold is up +0.17%, March copper is up +1.15%, and agriculture prices are trading mostly higher. The dollar index is down -0.19% while EUR/USD has continued higher and is up +0.39%. USD/JPY is up +0.60%. March 10-year T-notes are down 7 ticks on reduced safe-haven demand.
• The FOMC at its meeting today is unanimously expected to leave its policy unchanged with its QE3 program at $85 billion per month. The FOMC needs to maintain its insurance policy on the U.S. economy as Washington engages in its fiscal battle over the next three months capped by the return of the debt limit in mid-May. However, the minutes from the December FOMC meeting said that FOMC members generally expect QE3 to end somewhere between mid-2013 and the end of 2013. The FOMC's zero interest rate policy, by contrast, is still expected to last until 2015.
• Eurozone Jan economic confidence rose by 2.2 points to a 7-month high of 89.2 from 87.0 in December, which was 1.0 stronger than market expectations for an increase to 88.2. Dec was revised higher by +0.8 points to 87.8 from 87.0. The report provided some additional hopeful signs that the Eurozone economy has bottomed and is set to slowly improve this year.
• Spain's Q4 GDP fell -0.7% q/q (-2.8% annualized), which was worse than the Q3 rate of -0.3% q/q (-1.2% annualized) but generally in line with market expectations. On a year-on-year basis, Spain's GDP fell -1.8% in Q4 and by -1.4% for the full 2012 calendar year. The market consensus is that the Spanish economy will see another year of recession in 2013 with a GDP decline of -1.5%, but then improve to +0.4% in 2014.
• Japan Dec retail trade rose +0.1% m/m and +0.4% y/y, which was a bit weaker than market expectations of +0.4% m/m.
  Market Comments
  • March E-mini S&Ps this morning are trading unchanged as the market treads water ahead of today's FOMC meeting and GDP and ADP reports. The S&P 500 index on Tuesday shook off early weakness and rallied to a fresh 5-year high and closed higher on better-than-expected quarterly stock earnings results along with improved global economic sentiment. Closes: S&P 500 +0.51%, Dow Jones +0.52%, Nasdaq +0.04%. Strength in home prices bolstered confidence in the economic outlook after the Nov S&P/CaseShiller composite-20 home price index rose +5.5% y/y, the biggest increase in 6 years. Other bullish factors included a rally in European stocks after Italy's 6-month bill yields declined to a 3-year low of 0.73% and German Feb Gfk consumer confidence rose by +0.2 to 5.8, which reduced European sovereign debt concerns. Earnings results from U.S. companies were another positive for stocks with profits beating estimates at 75% of the 175 companies in the S&P 500 that have reported earnings so far this season. Prices dipped briefly mid-morning after U.S. Jan consumer confidence showed a larger-than-expected decline of -8.1 to a 14-month low of 58.6.
  • March 10-year T-notes this morning are down 7 ticks as the market sees additional weakness on reduced safe-haven demand. March 10-year T-note prices on Tuesday closed little changed as stock market strength reduced safe-haven demand for Treasuries and offset the larger-than-expected -8.1 point decline in U.S. Jan consumer confidence to a 14-month low. Another negative for T-note prices was the +5.5% y/y increase in the Nov S&P/CaseShiller home price index, the biggest y/y gain in 6 years. Closes: TYH3 unch, FVH3 +1.25.
  • The dollar index this morning is down -0.15 (-0.19%) on reduced safe-haven demand. EUR/USD is up +0.0053 (+0.39%) and USD/JPY is up +0.54 (+0.60%). The dollar index on Tuesday fell to a 2-week low on reduced safe-haven demand after the S&P 500 rose to a fresh 5-year high. EUR/USD climbed to a 13-3/4 month high after Italy successfully sold 8.5 billion euros of 6-month bills at 0.731%, the lowest rate in nearly 3 years, illustrating the containment of the European debt crisis. Closes: Dollar index -0.272 (-0.34%), EUR/USD +0.00366 (+0.27%), USD/JPY -0.135 (-0.14%).
  • March WTI crude oil this morning is up +0.32 (+0.33%) and March gasoline is up +0.0057 (+0.19%). Mar crude oil and gasoline Tuesday closed higher as a rally in the S&P 500 to a 5-year high boosted economic sentiment. Increased geopolitical concerns also helped propel Mar crude to a 4-1/4 month high and Mar gasoline to a 3-1/2 month high after Egypt's defense chief warned that continued political unrest could bring about the "collapse" of the state, which may slow or stop the flow of crude through the Suez Canal. Expectations for Wednesday's weekly DOE report are for a +2.5 million barrel increase in crude oil inventories, a +1.0 million barrel increase in gasoline inventories, a -500,000 barrel decline in distillate inventories, and a -0.3 point decline in the refinery utilization rate. Closes: CLH3 +1.13 (+1.17%), RBH3 +0.0354 (+1.20%).
  • For the complete subscription version of this daily report (plus a 13-page big-picture weekly report), along with the earliest possible delivery in the morning, please visit http://www.barchart.com/register/crbfms_usmc.php
    Today's U.S. Earnings ReportsEarnings reports (ranked by market cap): QCOM-Qualcom (consensus $1.12), COP-ConoccoPhillips (1.42), FB-Facebook (0.15), BA-Boeing (1.18), LVS-Las Vegas Sands (0.60), SO-Southern (0.40), PSX-Phillips (1.69), MPC-Marathon Petroleum (2.10), HES-Hess Corp (1.21), NOC-Northrop Grumman (1.74), AVB-Avalonbay (0.73), AMP-Ameriprise Financial (1.47), CTXS-Citrix Systems (0.84), ROK-Rockwell Automation (1.26), MUR-Murphy Oil (1.36), ADT-ADT Corp (0.42), WEC-Wisconsin Energy (0.41), TNDX-Yandex (0.28), SLG-SL Green Realty (0.21), NXPI-NXP Semiconductor, LLL-L-3 Communications (2.12), TSCO-Tractor Supply (1.03).
    Global Financial Calendar

    Wednesday 1/30/13
    United States
    0700 ET	Weekly MBA mortgage applications, previous +7.0% with purchase sub-index +2.5% and refi sub-index +7.7%.
    0815 ET	Jan ADP employment change expected +165,000, Dec +215,000.
    0830 ET	Q4 GDP expected +1.1% q/q annualized, Q3 +3.1% q/q annualized. Q4 price index expected +1.5%, Q3 +2.7%. Q4 core PCE expected +1.0%, Q3 +1.1%. Q4 personal consumption expected +2.1%, Q3 +1.6%.
    1030 ET	DOE Weekly Petroleum Status Report.
    1300 ET	Treasury auction of $29 billion in 7-year T-notes.
    1415 ET	FOMC releases post-meeting statement after 2-day policy meeting. No Bernanke press conference.
    United Kingdom
    0430 ET	UK Dec net consumer credit expected +0.2 bln pounds, Nov +0.1 bln pounds. Dec net lending secured on dwellings expected +0.5 bln pounds, Nov -0.2 bln pounds.
    0430 ET	UK Dec mortgage approvals expected +54,500, Nov 54,000.
    0430 ET	UK Dec M4, Nov -0.2% m/m and -2.8% y/y.
    1901 ET	UK Jan GfK consumer confidence survey expected -28, Dec -29.
    Euro-Zone
    0500 ET	Eurozone Jan economic confidence expected 88.2, Dec 87.0. Jan business climate indicator expected -1.00, Dec -1.12. Jan industrial confidence expected -13.5, Dec -14.4. Jan services confidence expected -9.0, Dec -9.8.
    Japan
    1815 ET	Japan Jan Markit/JMMA manufacturing PMI, Dec 45.
    1850 ET	Japan Dec industrial production expected +4.1% m/m and -5.6% y/y, Nov -1.4% m/m and -5.5% y/y.
    2030 ET	Japan Dec labor cash earnings, Nov -0.8% y/y.
    2300 ET	Japan Dec vehicle production, Nov -8.4% y/y.

    
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Barchart Morning Call 11/5

Barchart Morning Call

BC - 1 hr 42 mins ago

Overnight Developments

• Dec E-mini S&Ps this morning are unchanged as the market treads water ahead of tomorrow's U.S. election. European stocks are down -0.88% on worries about Greece, while Asian stocks closed lower almost across the board. Japan closed down -0.48%, Hong Kong closed down -0.47%, and China closed down -0.21%. Commodity prices are slightly lower by -0.05% on average. Dec crude oil is up +0.14%, Dec gasoline is up +0.31%, Dec gold is up +0.35%, Dec copper is down -0.78%, and agriculture prices are mixed. The dollar index is up +0.17 points and EUR/USD is down -0.20%. USD/JPY is down -0.20%. Dec 10-year T-notes are up 9.5 ticks.
• The markets are worried about whether the Greek Parliament will approve the 13.5 billion euro austerity package that is necessary for Greece to receive its next 31 billion bailout tranche before a big bond redemption payment is due next week. The Greek Parliament could start voting on the austerity package as soon as this week.
• China's October non-manufacturing PMI from the China Federation of Logistics and Purchasing and the National Bureau of Statistics rose 1.8 points to 55.5, recovering some of the -2.6 point decline to 53.7 seen in September. However, the Oct services PMI from HSBC fell 0.8 points to 53.5 from 54.3 in September.
• The Eurozone Nov Sentix investor confidence index improved to -18.8 from -22.2 and was stronger than market expectations for a rise to -21.0.
  Market Comments
  • Dec E-mini S&Ps this morning are trading unchanged this morning. The market is treading water ahead of tomorrow's U.S. election. E-mini S&Ps this morning have been able to shake off the bearish influence from this morning's -0.88% sell-off in the Euro Stoxx 50 index and lower Asian stocks. U.S. stocks on Friday rallied early in the session to 1-1/2 week highs on the stronger-than-expected Oct U.S. payrolls report but then shed their gains and sold off the rest of the day on uncertainty ahead of Tuesday's U.S. presidential election: S&P 500 -0.94%, Dow Jones -1.05%, Nasdaq -1.16%. Stocks were supported by the 171,000 increase in Oct non-farm payrolls, stronger than expectations of 125,000, and by the 4.8% increase in Sep factory orders that was better than expectations of +4.6%. Weakness in raw material and energy producers also helped drag the overall market lower after Chevron and Newmont Mining posted disappointing earnings results.
  • Dec 10-year T-notes this morning are up 9.5 ticks on lower European and Asian stocks and on some safe-haven demand ahead of Tuesday's election. Dec 10-year T-note prices Friday sold-off on the stronger-than expected U.S. Oct payrolls report but pared losses and closed only modestly lower after stocks erased an early rally and closed lower: TYZ2 -1.5, FVZ2 -0.2. Other bearish factors included the stronger-than-expected Sep factory orders of +4.8% along with supply pressures ahead of the Nov refunding when the Treasury on Nov 6-8 will auction $72 billion of T-notes and T-bonds.
  • The dollar index this morning is up +0.17 points (+0.21%) as EUR/USD is down -0.0051 (-0.40%) on pressure from Greek worries. USD/JPY is down -0.16 points (-0.20%). The dollar index Friday rallied sharply to a 1-3/4 month high and closed higher after the stronger-than-expected U.S. Oct payrolls reports added to evidence the economy is improving, which boosted the dollar's interest rate differentials on speculation the Fed may refrain from additional stimulus measures: Dollar index +0.546 (+0.68%), EUR/USD -0.01089 (-0.84%), USD/JPY +0.335 (+0.42%). EUR/USD fell to a 3-week low on continued European sovereign debt concerns while USD/JPY surged to a 6-month high on the stronger-than-expected U.S. payrolls report along with speculation the BOJ will expand its monetary stimulus measures. EUR/USD weakness was limited after Commerzbank AG raised its forecast for EUR/USD to $1.30 by year-end from a previous forecast of $1.23, citing the ECB's "announcement of unlimited bond purchases that has calmed the markets," which will push back euro weakness until later next year.
  • Dec WTI crude oil prices this morning are up +0.12 (+0.14%) and Dec gasoline is up +0.0080 (+0.31). Dec crude oil and gasoline prices Friday closed lower as a rally in the dollar index to a 1-3/4 month high undercut most commodities along with speculation that the continued shutdown of East Coast refineries due to power outages will add to U.S. crude inventories that are already at the highest they've been this time of year in at least 10 years: CLZ2 -2.23 (-2.56%), RBZ2 -0.0600 (-2.28%). Crude oil saw support from the stronger-than-expected Oct payroll and Sep factory orders reports.
  • For the complete subscription version of this daily report (plus a 13-page big-picture weekly report), along with the earliest possible delivery in the morning, please visit http://www.barchart.com/register/crbfms_usmc.php
    Today's U.S. Earnings Reports Earnings reports (ranked by market cap): ESRX-Express Scripts (Consensus:$0.99), SO-Southern Company (1.13), EOG-EOG Resources, TWC-Time Warner (1.43), SYY-Sysco (0.51), RIG-Transocean (0.79), PAA-Plains All American (0.54), TEL-TE Connectivity (0.74), ETR-Entergy (2.00), CF-CF Industries (5.75), HUM-Humana (12.16), ROK-Rockwell (1.32), DIS-Fidelity National (0.62), ICE-Intercontinental Exchange (1.73), SBAC-SBA Communications (-0.17), XL-XL Group (0.49).
    Global Financial Calendar
    

    Monday 11/5/12
    United States
    1000 ET	Oct ISM non-manufacturing index expected -0.6 to 54.5, Sep +1.4 to 55.1.
    1100 ET	USDA weekly grain export inspections.
    1130 ET	Weekly 3-mo and 6-mo T-bill auctions.
    1600 ET	USDA Crop Progress.
    n/a	G-20 2-day meeting concludes in Mexico City.
    United Kingdom
    0430 ET	UK Oct services PMI expected 52.0, Sep 52.2.
    1901 ET	UK Oct BRC sales like-for-like, Sep +1.5% y/y.
    Euro-Zone
    0430 ET	Eurozone Nov Sentix investor confidence expected -21.0, Oct -22.2.

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