MORNING CALL 1/11

MORNING CALL

Monday, January 11th, 2016View Older Reports

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OVERNIGHT MARKETS AND NEWS

March E-mini S&Ps (ESH16 +0.33%) are up +0.50% and European stocks are up +0.74%. The Mar E-mini S&P had posted a 3-1/4 month low in overnight trade when China's Shanghai Composite slid over 5% to a 3-3/4 month low, but recovered their losses and moved higher as they attempt to stabilize ahead of Q4 company earnings season that begins this week. European stocks were led higher by a rally in automakers, with Volkswagen, BMW AG, and Daimler AG all up over 1.5%. Asian stocks settled lower: Japan closed for holiday, Hong Kong -2.76%, China -5.33%, Taiwan -1.34%, Australia -1.17%, Singapore -1.54%, South Korea -1.22%, India -0.44%. China's Shanghai Composite closed down % after China Dec producer prices fell for a record 46th consecutive month and declined at the fastest pace in 6-1/2 years, which pessimism over China's economy. The Shanghai Composite closed on its lows even as the yuan strengthened against the dollar, after Beijing News cited Premier Li Keqiang as saying policy makers won't seek strong stimulus or flood the economy with too much investment to boost demand.

The dollar index (DXY00 -0.08%) is down -0.03%. EUR/USD (^EURUSD) is down -0.20%. USD/JPY (^USDJPY) is up +0.38% as it recovered from a 4-1/2 month low after a rally in U.S. and European stocks curbed safe-haven demand for the yen.

Mar T-note prices (ZNH16 -0.12%) are down -4.5 ticks.

Eurozone Jan Sentix investor confidence fell -6.1 to 9.6, weaker than expectations of -4.3 to 11.4 and a 1-year low.

China Dec CPI rose +1.6% y/y, right on expectations. Dec PPI fell -5.9% y/y, weaker than expectations of -5.8% y/y and matched the fastest pace of decline in 6-1/4 years.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Atlanta Fed President Dennis Lockhart speaks on the U.S. economic outlook and monetary policy to the Rotary Club of Atlanta, (2) Dallas Fed President Rob Kaplan speaks on economic conditions and monetary policy at the North Texas Economic Forum.

There are 3 of the Russell 1000 companies that report earnings today: Alcoa (consensus $0.02), Global Payments (0.75), Lumentum Holdings (0.28).

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

Equity conferences this week: North American International Auto Show (Detroit) - Press Days on Mon-Tue, J.P. Morgan Health Care Conference on Mon-Thu, Needham & Company Growth Conference on Tue, Deutsche Bank Global Auto Conference on Tue-Wed.

OVERNIGHT U.S. STOCK MOVERS

Wyndham Worldwide (WYN -0.30%) was upgraded to 'Hold' from 'Sell' at Deutsche Bank.

Ilumina (ILMN -1.52%) is up 6% in pre-market trading after it raised guidance on 2016 core adjusted EPS to $3.80-$3.90, higher than estimates of $3.76.

Whiting Petroleum (WLL +3.05%) was upgraded to 'Outperfom' from 'Market Perform' at Wells Fargo Securities.

Marathon Oil (MRO -3.00%) and Devon Energy (DVN +1.57%) were both upgraded to 'Overweight' from 'Equalweight' at Barclays.

Williams-Sonoma (WSM -3.22%) was downgraded to 'Neutral' from 'Outperform' at Wedbush.

M&T Bank (MTB -2.05%) was downgraded to 'Neutral' from 'Buy' at Goldman Sachs.

Statoil (STO -2.74%) was added to the 'Conviction Sell' list at Goldman Sachs.

L'oreal (LRLCY -0.45%) was added to the 'Conviction Buy' list at Goldman Sachs.

Keycorp (KEY -2.13%) was upgraded to 'Buy' from 'Neutral' at Goldman Sachs.

Cheniere Energy (LNG +0.11%) climbed nearly 3% in after-hours trading after Baupost raised its stake in eh company to 15.01% from 9.60% in September.

HCA Holdings (HCA -0.03%) rose nearly 6% in after-hours trading after the company said its fiscal 2015 adjusted EBITDA will be about $7.9 billion, higher than consensus of $7.77 billion.

Affymetrix (AFFX -1.39%) surged over 40% in after-hours trading after Thermo Fisher Scientific TMO acquired the company for $1.3 billion or $14 a share.

Actuity Brands (AYI -3.73%) fell over 3% in after-hours trading, adding on to Friday's -3.7% decline, after the company reported Q1 revenue of $736.6 million, below estimates of $740.1 million.

MARKET COMMENTS

Mar E-mini S&Ps (ESH16 +0.33%) this morning are up +9.50 points (+0.50%). Friday's closes: S&P 500 -1.08%, Dow Jones -1.02%, Nasdaq -0.81%. The S&P 500 on Friday erased an early rally and fell to a 3-1/4 month low on weakness in energy producers as crude oil prices declined and on concern that the recent weakness in Chinese stocks has yet to run its course. Stocks initially opened higher on carry-over support from a +1.97% rally in China's Shanghai Composite and the +292,000 increase in U.S. Dec non-farm payrolls, stronger than expectations of +200,000.

Mar 10-year T-notes (ZNH16 -0.12%) this morning are down -4.5 ticks. Friday's closes: TYH6 +9.50, FVH6 +6.50. Mar T-notes on Friday posted a 2-1/4 month high and closed higher on (1) a lack of wage pressures after U.S. Dec average hourly earnings were unch m/m and up +2.5% y/y (weaker than expectations of +0.2% m/m and +2.7% y/y) (2) weaker commodity prices that reduced inflation expectations as the 10-year T-note breakeven inflation rate fell to a 2-week low, and (3) increased safe-haven demand after the S&P 500 gave up an early rally and fell to a 3-1/4 month low.

The dollar index (DXY00 -0.08%) this morning isdown -0.030 (-0.03%) . EUR/USD (^EURUSD) is down -0.0022 (-0.20%). USD/JPY (^USDJPY) is up +0.45 (+0.38%). Friday's closes: Dollar Index +0.321 (+0.33%), EUR/USD -0.0010 (-0.09%), USD/JPY -0.41 (-0.35%). The dollar index on Friday settled higher on the stronger-than-expected U.S. Dec payroll report, which bolsters the case for the Fed to continue to raise interest rates. In addition, there was weakness in EUR/USD after German Nov industrial production unexpectedly fell -0.3% m/m, weaker than expectations of +0.5% m/m. The dollar was undercut by the slide in stocks, which boosted safe-haven demand for the yen as USD/JPY tumbled to a 4-1/2 month low.

Feb crude oil (CLG16 -1.54%) this morning is down -54 cents (-1.63%) and Feb gasoline (RBG16 +0.20%) is down -0.0056 (-0.50%). Friday's closes: CLG6 -0.39 (-1.17%), RBG6 -0.0241 (-2.10%). Feb crude oil and gasoline on Friday closed lower on a stronger dollar and on concern that the turmoil in China will exacerbate a global oil glut. Losses in crude oil were limited after U.S. Dec non-farm payrolls rose more than expected in a sign of U.S. economic strength.

GLOBAL EVENT CALENDAR01/11/2016

US	1100 ET	USDA weekly grain export inspections.
	1240 ET	Atlanta Fed President Dennis Lockhart speaks on the U.S. economic outlook and monetary policy to the Rotary Club of Atlanta.
	1750 ET	Dallas Fed President Rob Kaplan speaks on economic conditions and monetary policy at the North Texas Economic Forum.
EUR	0430 ET	Eurozone Jan Sentix investor confidence expected -4.4 to 11.3, Dec 15.7.
UK	1901 ET	UK Dec BRC sales like-for-like expected +0.5% y/y, Nov -0.4% y/y.
JPN	n/a	Japanese markets closed for Coming-of-Age Day.

U.S. STOCK CALENDAR01/11/2016

Company	Ticker	Time	Event Description	Period	Estimate
American Airlines Group Inc	AAL US	Bef-mkt	December 2015 Sales and Revenue Release - Traffic Results	2015
Sirona Dental Systems Inc	SIRO US	13:00	Extraordinary Shareholders Meeting
Alcoa Inc	AA US	16:03	Q4 2015 Earnings Release	Q4 2015	0.024
Alcoa Inc	AA US	17:00	Q4 2015 Earnings Call	Q4 2015
United Continental Holdings Inc	UAL US	17:00	December 2015 Sales and Revenue Release - Operational Performance	2015
DENTSPLY International Inc	XRAY US		Special Meeting - M&A Vote
Sirona Dental Systems Inc	SIRO US		Special Meeting - M&A Vote
Global Payments Inc	GPN US		Q2 2016 Earnings Release	Q2 2016	0.753
Lumentum Holdings Inc	LITE US		Q2 2016 Earnings Release	Q2 2016	0.283

Sell Signals - STO,ETR and ACE

Today I dropped Statoil (STO), Entergy (ETR) and Ace Ltd (ACE) from the Barchart Van Meerten New High portfolio for negative price momentum:

Statoil (STO)

Barchart technical indicators:

• 80% Barchart technical sell signals
• Trend Spotter sell signal
• Below its 20, 50 and 100 day moving averages
• 11.14% off its recent high
• Relative Strength Index 33.58

Entergy (ETR)

Barchart technical indicators:

• 64% Barchart technical sell signals
• Trend Spotter sell signal
• Below its 20, 50 and 100 day moving averages
• 12.98% below its recent high
• Relative Strength Index 33.24%

Ace Ltd (ACE)

Barchart technical indicators:

• 64% Barchart technical sell signals
• Trend Spotter sell signal
• Below its 20, 50 and 100 day moving averages
• 7.83% odd its recent high
• Relative Strength Index 31.20%

BARCHART MORNING CALL 6/12

BARCHART MORNING CALL

Thursday, June 12th, 2014View Older Reports

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

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OVERNIGHT MARKETS AND NEWS

June E-mini S&Ps (ESM14 +0.08%) this morning are up +0.03% and European stocks are unchanged after China's money supply and new loans grew more than expected last month, a sign of economic growth. European stocks also received a boost after Eurozone Apr industrial production rose at the fastest pace in 5 months. Another positive for stocks was the action by the Kiel Institute to raise its German 2014 GDP growth forecast to 2.0% from a 1.9% estimate in Mar. Asian stocks closed mostly lower: Japan -0.64%, Hong Kong -0.35%, China -0.34%, Taiwan -0.27%, Australia -0.46%, Singapore +0.09%, South Korea -0.23%, India +0.40%. Commodity prices are mostly higher. July crude oil (CLN14 +1.48%) is up +1.48% at an 8-3/4 month high on supply concerns after Islamist militants extended control over northern areas of Iraq, the second-largest producer in OPEC. Iraqi forces, backed by air power, are attempting to check the rapid advance of militants known as the Islamic State of Iraq and the Levant (ISIL) after the militants seized Mosul, the largest city in northern Iraq earlier this week. July gasoline (RBN14 +1.42%) is up +1.42% at a 1-1/2 month high. Aug gold (GCQ14 +0.35%) is up +0.38%. July copper (HGN14 +0.02%) is up +0.03%. Agriculture and livestock prices are mostly higher. The dollar index (DXY00 unch) is down -0.01%. EUR/USD (^EURUSD) is down -0.03%. USD/JPY (^USDJPY) is unchanged. Sep T-note prices (ZNU14 -0.06%) are down -3.5 ticks.
China May new yuan loans were 870.8 billion yuan, more than expectations of 750.0 billion yuan. China M2 money supply, the broadest measure of money supply, rose +13.4% y/y, better than expectations of +13.1% y/y and the strongest pace of growth in 5 months.
Eurozone Apr industrial production rose +0.8% m/m, better than expectations of +0.5% m/m and the fastest pace in 5 months. On an annual basis Apr industrial production climbed +1.4% y/y, better than expectations of +0.9% y/y.
The German May wholesale price index fell -0.1% m/m and -0.9% y/y, the eleventh consecutive month that wholesale prices have declined on an annual basis.
Japan Apr machine orders fell -9.1% m/m and rose +17.6% y/y, better than expectations of -10.8% m/m and +13.3% y/y.

U.S. STOCK PREVIEW

Today’s weekly initial unemployment claims report is expected to show a small decline of -2,000 to 310,000, reversing part of last week’s increase of +8,000 to 312,000. Meanwhile, continuing claims are expected to show a small increase of +2,000 to 2.605 million following last week’s decline of -20,000 to 2.603 million. Today’s May retail sales report is expected to show a solid increase of +0.6% and +0.4% ex-autos. Strength in May retail sales would follow the pause that consumers took in April when retail sales rose by only +0.1% overall and were unchanged ex-autos. The Treasury today will sell $13 billion of 30-year T-bonds, concluding this week’s $62 billion coupon package.
None of the Russell 1000 companies report earnings today. Equity conferences during the remainder of this week include: Goldman Sachs Global Healthcare Conference on Tue-Thu, William Blair Growth Stock Conference on Tue-Thu, 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

Statoil (STO -0.75%) was downgraded to 'Hold' from 'Buy' at Deutsche Bank.
Argus kept a 'Buy' rating on Apache (APA +0.38%) and raised its price target on the stock to $118 from $103.
Lufthansa (DLAKY -14.25%) was downgraded to 'Hold' from 'Buy' at Jefferies.
Lululemon Athletica (LULU -2.59%) fell 7% in pre-market trading after the company lowered guidance on fiscal 2014 EPS to $1.71-$1.76 from $1.80-$1.90, below consensus of $1.89.
Hewlett-Packard (HPQ -1.07%) rose 1.2% in pre-market trading after Goldman Sachs upgraded the stock to 'Neutral' from 'Sell.'
Senator Investment Group reported a 5.5% passive stake in Peabody (BTU +0.37%) .
ImmunoGen (IMGN -1.30%) was upgraded to 'Neutral' from 'Sell' at UBS.
Vale (VALE -0.15%) was downgraded to 'Equal Weight' from 'Overweight' at Morgan Stanley.
Achillion (ACHN -6.42%) was upgraded to 'Buy' from 'Neutral' at UBS.
Restoration Hardware (RH +2.82%) jumped over 10% in after-hours trading after it reported Q1 adjusted EPS of 18 cents, well above consensus of 11 cents, and then raised guidance on fiscal 2014 EPS to $2.24-$2.30 from $2.14-$2.22, higher than consensus of $2.20.

MARKET COMMENTS

June E-mini S&Ps (ESM14 +0.08%) this morning are up +0.50 of a point (+0.03%). The S&P 500 index on Wednesday closed lower. Bearish factors included (1) global economic concerns that fueled long liquidation pressure in stocks after the World Bank lowered its 2014 global growth forecast to 2.8% from a Jan estimate of 3.2%, and (2) concern about increased gridlock in Washington D.C. after U.S. House Majority leader Cantor lost his primary election to a Tea Party-backed candidate in Virginia. Closes: S&P 500 -0.35%, Dow Jones -0.60%, Nasdaq -0.08%.
Sep 10-year T-notes (ZNU14 -0.06%) this morning are down -3.5 ticks. Sep 10-year T-note futures prices on Wednesday recovered from a 4-week low and closed higher on (1) increased safe-haven demand with the slide in stocks, and (2) the World Bank’s cut in its global 2014 economic growth forecast. Closes: TYU4 +2.00, FVU4 +2.25.
The dollar index (DXY00 unch) this morning is down -0.005 (-0.01%). EUR/USD (^EURUSD) is down -0.0004 (-0.03%). USD/JPY (^USDJPY) is unch. The dollar index on Wednesday closed lower. Bearish factors included (1) the World Bank’s cut in its U.S. 2014 GDP forecast to 2.1% from Jan’s estimate of 2.8%, and (2) strength in the yen as USD/JPY fell to a 1-week low on speculation the BOJ will refrain from expanding stimulus measures when it meets on Thursday. Closes: Dollar Index -0.032 (-0.04%), EUR/USD -0.0016 (-0.12%), USD/JPY -0.276 (-0.27%).
July WTI crude oil (CLN14 +1.48%) this morning is up +$1.54 a barrel (+0.148%) at an 8-3/4 month high. July gasoline (RBN14 +1.42%) is up +0.0425 (+1.42%) at a 1-1/2 month high. July crude and gasoline prices on Wednesday closed higher with July gasoline at a 1-1/2 week high. Bullish factors included (1) the -198,000 bbl slide in inventories at Cushing, OK, the delivery point for WTI futures, to a 5-1/2 yr low of 21.17 million bbl, and (2) the -2.596 bbl decline in EIA crude inventories to a 2-month low of 386.93 million bbl, more than expectations of -2.0 million bbl. Crude prices fell back from their best levels on demand concerns after U.S. fuel consumption in the week ended Jun 6 fell -3.0% w/w to 18.025 million bpd, the lowest in a year. Closes: CLN4 +0.05 (+0.05%) RBN4 +0.0275 (+0.92%).

GLOBAL EVENT CALENDAR06/12/2014

US	0830 ET	Weekly initial unemployment claims expected -2,000 to 310,000, previous +8,000 to 312,000. Weekly continuing claims expected +2,000 to 2.605 million, previous -20,000 to 2.603 million.
	0830 ET	May retail sales expected +0.6% and +0.4% ex autos, Apr +0.1% and unch ex autos.
	0830 ET	May import prices expected +0.2% m/m and +0.5% y/y, Apr -0.4% m/m and -0.3% y/y.
	0830 ET	USDA weekly Export Sales.
	1000 ET	Apr business inventories expected +0.4%, Mar +0.4%.
	1100 ET	Treasury announces amount of 30-year TIPS to be auctioned Jun 19.
	1300 ET	Treasury auctions $13 billion 30-year T-bonds.
GER	0200 ET	German May wholesale price index, Apr +0.2% m/m and -1.3% y/y.
EUR	0400 ET	ECB publishes monthly report.
	0500 ET	Eurozone Apr industrial production expected +0.5% m/m and +0.9% y/y, Mar -0.3% m/m and -0.1% y/y.

U.S. STOCK CALENDAR06/12/2014

Company Name	Ticker	Time	Event Description	Period	Estimate
Lands' End Inc	LE US	Bef-mkt	Q1 2015 Earnings Release	Q1 2015
WW Grainger Inc	GWW US	8:00	May 2014 Sales and Revenue Call	2014
WW Grainger Inc	GWW US	8:00	May 2014 Sales and Revenue Release	2014
CONSOL Energy Inc	CNX US	8:00	Analyst Day	Y 2014
Hanover Insurance Group Inc/The	THG US	8:30	Investor Meeting	Y 2014
Biogen Idec Inc	BIIB US	9:00	Annual General Meeting	Y 2014
Omega Healthcare Investors Inc	OHI US	10:00	Annual General Meeting	Y 2014
Visteon Corp	VC US	11:00	Annual General Meeting	Y 2014
Equity Residential	EQR US	14:00	Annual General Meeting	Y 2014
CR Bard Inc	BCR US		FDA Adcomm, Lutonix 035 Drug Coated Balloon (PTA) Catheter
Alliant Energy Corp	LNT US		Roadshow-Day 3	Y 2014
Jarden Corp	JAH US		Annual General Meeting
United Parcel Service Inc	UPS US		Roadshow - Paris	Y 2014
Penn National Gaming Inc	PENN US		Annual General Meeting
Gulfport Energy Corp	GPOR US		Annual General Meeting
TripAdvisor Inc	TRIP US		Annual General Meeting

Stock added to my portfolio

This week I added Royal Dutch Shell (RDS.B), Statoil ASA (STO), Dynegy (DYN) and Ace Limited (ACE) to the Barchart Van Meerten New High portfolio for great technical indicators and price momentum:

Royal Dutch Shell (RDS.B)

Barchart technical indicators:

• 96% Barchart technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 15 new highs and up 10.37% in the last month
• Relative Strength Index 86.43%
• Barchart computes a technical support level at 85.72%
• Recently traded at 86.76 with a 50 day moving average of 79.23

Statoil ASA (STO)

Barchart technical indicators:

• 96% Barchart technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 13 new highs and up 12.96% in the last month
• Relative Strength Index 76.53%
• Barchart computes a technical support level at 31.25
• Recently traded at 31.28 with a 50 day moving average of 28.29

Dynegy (DYN)

Barchart technical indicators:

• 96% Barchart technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 14 new highs and up 28.52% in the last month
• Relative Strength Index 90.73%
• Barchart computes a technical support level at 29.91
• Recently traded at 31.62 with a 50 day moving average of 25.69

Ace Limited (ACE)

Barchart technical indicators:

• 88% Barchart technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 13 new highs and up 4.81% in the last month
• Relative strength Index 61.59%
• Barchart computes a technical support level at 101.26
• Recently traded at 102.30 with a 50 day moving average of 99.42

BARCHART MORNING CALL 4/8

BARCHART MORNING CALL 

Tuesday, April 8th, 2014View Older Reports

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OVERNIGHT MARKETS AND NEWS

June E-mini S&Ps (ESM14 -0.14%) this morning are down -0.15% and European stocks are down -0.98% on concern tensions in Ukraine may escalate after Ukraine sent additional police forces into its eastern regions to quell pro-Russian protesters who seized government buildings in Donetsk, Luhansk and Kharkiv this week. Asian stocks closed mixed: Japan -1.36%, Hong Kong +0.98%, China +2.37%, Taiwan +0.13%, Australia -0.06%, Singapore +0.33%, South Korea +0.22%, India closed for holiday. Japan's Nikkei Stock Index fell to a 1-week low as exporter stocks weakened after the yen rose to a 1-week high against the dollar when the BOJ refrained from providing additional stimulus measures following its 2-day policy meeting. China's Shanghai Stock index rallied to a 1-1/2 month high on speculation that weak Chinese economic data for Mar will prompt the government to introduce measures to promote growth. Commodity prices are mixed. May crude oil (CLK14 +0.96%) is up +0.64%. May gasoline (RBK14 +0.42%) is up +0.27%. Jun gold (GCM14 +1.09%) is up +1.08% at a 1-1/2 week high. May copper (HGK14 -0.25%) is down -0.07%. Agriculture and livestock prices are mixed. The dollar index (DXY00 -0.42%) is down -0.30%. EUR/USD (^EURUSD) is up +0.17%. USD/JPY (^USDJPY) is down -0.53% at a 1-week low after the BOJ refrained from providing additional stimulus. The British pound climbed to a 4-week high against the dollar after UK Feb industrial output rose more than expected. June T-note prices (ZNM14 -0.05%) are down -2 ticks.
In a sign that the European sovereign debt crisis has receded, ECB lending to Portuguese banks fell in Mar for a six month to 45.05 billion euros, the least amount Portuguese lenders have borrowed from the ECB since July 2011.
UK Feb industrial production rose +0.9% m/m, three times expectations of +0.3% m/m and the largest monthly increase in 8 months. On an annual basis, UK Feb industrial production rose +2.7% y/y, better than expectations of +2.2% y/y.
UK Feb manufacturing production rose +1.0% m/m and +3.8% y/y, stronger than expectations of +0.3% m/m and +3.1% y/y with the +3.8% y/y gain the largest annual increase in 3 years.
The Japan Mar eco watchers survey current conditions jumped +4.9 to 57.9, a bigger increase than expectations of +0.3 to 53.3 and the highest since the data began in the year 2000. The Mar eco watchers survey outlook of expectations fell -5.3 to 34.7, a bigger decline than expectations of -0.5 to 39.5 and the lowest in 3 years.

U.S. STOCK PREVIEW

The Treasury today will sell $30 billion in 3-year T-notes. There are two of the Russell 1000 companies that report earnings today: Alcoa (consensus $0.05), Science Applications (0.65). Equity and industry conferences during the remainder of this week include: BNEF Summit on Mon-Wed, IPAA Oil & Gas Investment Symposium on Tue, Noble Financial NAB Financial Forum on Tue, and New Economic Summit (NES) 2014 on Tue-Wed.

OVERNIGHT U.S. STOCK MOVERS

Dr Pepper Snapple (DPS -0.06%) was downgraded to 'Underperform' from 'Market Perform' at Wells Fargo.
Nike (NKE -2.76%) was upgraded to 'Buy' from 'Hold' at Stifel.
Cisco (CSCO +0.62%) was downgraded to 'Hold' from 'Buy' at Wunderlich.
Estee Lauder (EL +0.48%) was upgraded to 'Outperform' from 'Market Perform' at Bernstein.
Statoil (STO -1.81%) was downgraded to 'Hold' from 'Buy' at Societe Generale.
Infineon (IFNNY -1.17%) was downgraded to 'Underperform' from 'Neutral' at BofA/Merrill.
Eli Lilly (LLY -0.66%) fell over 2% in European trading after a federal-court jury said that Eli Lilly and its partner Takeda Pharmaceutical must pay a combined $9 billion in punitive damages after they hid the cancer risks of their Actos diabetes medicine.
Glen Capital Partners reported a 7.1% passive stake in LMI Aerospace (LMIA +1.94%) .
Barron's reported that four Oracle (ORCL -1.28%) insiders sold 1.69 million shares of the company's stock for $69.5 million.
SAC Capital reported a 5.5% passive stake in Cytokinetics (CYTK +0.23%) .
AK Steel (AKS -5.20%) said that effective immediately for new orders it will increase the current spot market base price for its hot roll carbon steel to a minimum of $700 per ton.
A. Schulman (SHLM +0.25%) gained over 6% in after-hours trading after it reported Q2 EPS ex-items of 39 cents, better than consensus of 33 cents, and then raised guidance on fiscal 2014 adjusted EPS to $2.23-$2.28 from $2.08-$2.13, well above consensus of $2.16.
Whole Foods Markets (WFM -1.59%) was added to the Key Calls list at UBS who also has a 'Buy' rating on the stock with a $70 price target.

MARKET COMMENTS

June E-mini S&Ps (ESM14 -0.14%) this morning are down -2,75 points (-0.15%). The S&P 500 on Monday fell to a 3-week low and closed lower. Bearish factors included (1) continued selling of biotechnology and computer and internet-related stocks on concern about their high multiples and profit taking pressure, and (2) concern that a slowdown in Chinese economic growth may slow the global economy after the World Bank reduced its Chinese 2014 GDP estimate to +7.6% from October’s +7.7% estimate. Closes: S&P 500 -1.08%, Dow Jones -1.02%, Nasdaq -0.89%.
Jun 10-year T-notes (ZNM14 -0.05%) this morning are down -2 ticks. Jun 10-year T-note futures prices on Monday rallied to a 2-week high and closed higher. Bullish factors included (1) the drop in the S&P 500 to a 3-week low, which fueled safe-haven demand for T-notes, and (2) follow-through buying from Friday’s slightly weaker-than-expected payroll report. Closes: TYM4 +6.00, FVM4 +4.75.
The dollar index (DXY00 -0.42%) this morning is down -0.240 (-0.30%). EUR/USD (^EURUSD) is up +0.0023 (+0.17%). USD/JPY (^USDJPY) is down -0.55 (-0.53%) at a 1-week low. The dollar index on Monday closed lower. Bearish factors included (1) negative carry-over from Friday’s smaller-than-expected increase in U.S. Mar payrolls, and (2) strength in EUR/USD after ECB Executive Board member Merscsh said that deflation risks aren’t imminent in the Eurozone and after ECB Governing Council member Nowotny said that there’s no “immediate need” for further ECB action on additional stimulus. Closes: Dollar index -0.191 (-0.24%), EUR/USD +0.00387 (+0.28%), USD/JPY -0.234 (-0.23%).
May WTI crude oil (CLK14 +0.96%) this morning is up +64 cents (+0.64%) and May gasoline (RBK14 +0.42%) is up +0.0080 (+0.27%). May crude and gasoline prices on Monday closed lower. Bearish factors included (1) the slide in the S&P 500 index to a 3-week low, which undercuts confidence in the economic outlook and thus energy demand, and (2) the World Bank’s cut in its China 2014 GDP estimate to 7.6% from 7.7% forecast in Oct, which signals reduced energy consumption in the world’s second-biggest crude oil consumer. Closes: CLK4 -0.70 (-0.69%). RBK4 -0.0053 (-0.18%).

GLOBAL EVENT CALENDAR04/08/2014

US	1300 ET	Treasury auctions $30 billion 3-year T-notes.
	1330 ET	Minneapolis Fed President Narayana Kocherlakota speaks to the Rochester Chamber of Commerce.
	1445 ET	Philadelphia Fed President Charles Plosser delivers a keynote speech at the Wharton Financial Institutions Center titled Enhancing Prudential Standards in Financial Regulation.
JPN	0030 ET	Japan Mar bankruptcies, Feb -14.62% y/y.
	0100 ET	Japan Mar eco watchers survey current expected +0.3 to 53.3. Mar eco watchers survey outlook expected -0.5 to 39.5
	n/a	BOJ announces interest rate decision following 2-day policy meeting.
UK	0430 ET	UK Feb industrial production expected +0.3% m/m and +2.2% y/y, Jan +0.1% m/m and +2.9% y/y.
	0430 ET	UK Feb manufacturing production expected +0.3% m/m and +3.1% y/y, Jan +0.4% m/m and +3.3% y/y.
	1000 ET	UK Mar NIEST GDP estimate, Feb +0.8% q/q.
	1901 ET	UK Mar BRC shop price index expected -1.5% y/y, Feb -1.4% y/y.

U.S. STOCK CALENDAR04/08/2014

Company Name	Ticker	Time	Event Description	Period	Estimate
Bank of New York Mellon Corp/The	BK US	4/8/2014	Annual General Meeting	Y 2014
Alcoa Inc	AA US	4/8/2014	Q1 2014 Earnings Release	Q1 2014	0.051
Science Applications International Corp	SAIC US	4/8/2014	Q4 2014 Earnings Release	Q4 2014	0.648
IDEX Corp	IEX US	4/8/2014	Annual General Meeting
Questar Corp	STR US	4/8/2014	Roadshow - Day 1	Y 2014
Principal Financial Group Inc	PFG US	4/8/2014	Roadshow -Tokyo Day 2	Y 2014
Brocade Communications Systems Inc	BRCD US	4/8/2014	Annual General Meeting

BARCHART MORNING CALL 4/7

BARCHART MORNING CALL

Monday, April 7th, 2014View Older Reports

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OVERNIGHT MARKETS AND NEWS

June E-mini S&Ps (ESM14 -0.39%) this morning are down -0.34% at a 1-week low and European stocks are down -0.81% as a slide in internet and technology stocks in pre-market trading has dragged the June mini-Nasdaq futures down -0.68% to a fresh 2-month low. Friday's slide in stocks within the Nasdaq Composite Index continues today on concern that the recent rally in the index to a 13-1/2 year high has stretched valuations too far. Concern that tensions are building again in Ukraine is also undercutting European stocks after pro-Russian demonstrators seized administration buildings in Ukraine's east. Ukraine Prime Minister Yatsenyuk said Russia was sending agents into eastern Ukraine to stir up separatist unrest that would give Russian President Putin an excuse to send Russian troops into Ukraine. Asian stocks closed mostly lower: Japan -1.69%, Hong Kong -0.59%, China closed for holiday, Taiwan -0.14%, Australia -0.17%, Singapore -0.60%, South Korea +0.16%, India -0.07%. Asian stocks were undercut after the World Bank lowered its GDP forecast for developing East Asia this year to 7.1%, down from an Oct estimate of 7.2% as growth in China moderates. The World Bank also lowered its GDP forecast for China this year down to 7.6% from an Oct forecast of 7.7%. Commodity prices are mixed. May crude oil (CLK14 -0.58%) is down -0.49%. May gasoline (RBK14 -0.62%) is down -0.62%. Jun gold (GCM14 -0.28%) is down -0.20%. May copper (HGK14 -0.17%) is down -0.13% at a 1-week low after the World Bank cut its China GDP forecast. Agriculture prices are mixed. The dollar index (DXY00 -0.13%) is down -0.09%. EUR/USD (^EURUSD) is up +0.18%. USD/JPY (^USDJPY) is down -0.03%. June T-note prices (ZNM14 +0.06%) are up +2.5 ticks.
ECB Governing Council member Nowotny said he sees no "immediate need" for further ECB action on additional stimulus and ECB Executive Board member Mersch said there's no imminent risk of deflation.
The Eurozone Apr Sentix investor confidence unexpectedly rose +0.2 to 14.1, better than expectations of unchanged at 13.9 and its best level in 3 years.
German Feb industrial production rose +0.4% m/m and +4.8% y/y, better than expectations of +0.3% m/m and +4.7% y/y, although Jan was revised lower to +0.7% m/m and +4.9% y/y from the originally reported +0.8% m/m and +5.9% y/y.
The UK Mar Lloyds employment confidence was unchanged at -2, right on expectations.
The Japan Feb composite index of leading indicators fell -4.6 to 108.5, a bigger decline than expectations of -4.3 to 108.8 and the lowest level in 6-months. The Feb coincident index fell -1.8 to 113.4, right on expectations.

U.S. STOCK PREVIEW

Today's Feb U.S. consumer credit report is expected to show an increase of +$14.0 billion, a little stronger than Jan's report of +$13.7 billion. None of the Russell 1000 companies report earnings today. Equity and industry conferences this week include: BNEF Summit on Mon-Wed, IPAA Oil & Gas Investment Symposium on Tue, Noble Financial NAB Financial Forum on Tue, and New Economic Summit (NES) 2014 on Tue-Wed.

OVERNIGHT U.S. STOCK MOVERS

C.R. Bard (BCR -0.07%) was downgraded to 'Neutral' from 'Buy' at BofA/Merrill.
Netflix (NFLX -4.90%) was upgraded to 'Outperform' from 'Perform' at Oppenheimer.
Questcor (QCOR -5.96%) was acquired by Mallinckrodt (MNK +0.05%) for $5.6 billion.
Under Armour (UA -7.39%) was upgraded to 'Buy' from 'Neutral' at Sterne Agee.
Alcoa (AA -0.86%) and Newmont Mining (NEM +0.04%) were boths upgraded to 'Hold' from 'Sell' at Deutsche Bank.
Analog Devices (ADI -1.96%) was upgraded to 'Neutral' from 'Sell' at Goldman.
Mattel (MAT -1.23%) was downgraded to 'Underperform' from 'Market Perform' at BMO Capital.
Intel (INTC -0.95%) was upgraded to 'Outperform' from 'Sector Perform' at Pacific Crest.
PBF Energy (PBF -0.87%) was upgraded to 'Buy' from 'Neutral' at Citigroup.
Statoil (STO +0.54%) was downgraded to 'Sell' from 'Neutral' at Goldman Sachs.
Blackstone (BX -2.26%) will acquire Gates Global for $5.4 billion.
SAC Capital lowered its passive stake in Diamond Foods (DMND -3.07%) to 4.0% from 9.0%.

MARKET COMMENTS

June E-mini S&Ps (ESM14 -0.39%) this morning are down -6.25 points (-0.34%) at a 1-week low. The S&P 500 on Friday rallied to a new record high but fell back and closed lower. Bearish factors included (1) the +192,000 increase in U.S. Mar non-farm payrolls, less than expectations of +200,000, although Feb was revised +22,000 higher to +197,000 from +175,000, and (2) the plunge in biotechnology and computer and internet-related stocks as concern over their high multiples fueled profit taking and long liquidation. Closes: S&P 500 -1.25%, Dow Jones -0.96%, Nasdaq -2.70%.
Jun 10-year T-notes (ZNM14 +0.06%) this morning are up +2.5 ticks. Jun 10-year T-note futures prices on Friday rebounded from early losses and closed higher after stocks tumbled. T-notes also found support from (1) the smaller-than-expected increase in U.S. Mar non-farm payrolls, and (2) the unchanged Mar unemployment rate of 6.7%, higher than expectations of -0.1 to 6.6%. Closes: TYM4 +22.50, FVM4 +13.50.
The dollar index (DXY00 -0.13%) this morning is down -0.074 (-0.09%). EUR/USD (^EURUSD) is up +0.0024 (+0.18%). USD/JPY (^USDJPY) is down -0.03 (-0.03%). The dollar index on Friday retreated from a 5-week high and closed lower on speculation the smaller-than-expected increase in U.S. Mar payrolls may prompt the Fed to slow its pace of QE3 tapering. EUR/USD fell to a 5-week low on negative carry-over from ECB President Draghi’s comments on Thursday that the ECB may consider additional stimulus measures to stave off deflation. Closes: Dollar index -0.052 (-0.06%), EUR/USD -0.00173 (-0.13%), USD/JPY -0.614 (-0.59%).
May WTI crude oil (CLK14 -0.58%) this morning is down -50 cents (-0.49%) and May gasoline (RBK14 -0.62%) is down -0.0182 (-0.62%). May crude and gasoline prices on Friday closed higher. Bullish factors included (1) strength in the U.S. Mar payrolls report, which is positive for the economic outlook and fuel demand, and (2) the stronger-than-expected German Feb factory orders, which was a positive indicator for Eurozone energy demand. Closes: CLK4 +0.85 (+0.85%). RBK4 +0.0195 (+0.67%).

GLOBAL EVENT CALENDAR04/07/2014

US	1100 ET	USDA weekly grain export inspections.
	1145 ET	St. Louis Fed President James Bullard speaks about the U.S. economy and monetary policy to the Asia Pacific Business Outlook Conference at USC.
	1500 ET	Feb consumer credit expected +$14.0 billion, Jan +$13.698 billion.
JPN	0100 ET	Japan Feb leading index CI expected -2.3 to 108.8, Jan 113.1. Feb coincident index expected -1.8 to 113.4, Jan 115.2.
UK	0430 ET	UK Mar Lloyds employment confidence, Feb -2.
EUR	0430 ET	Eurozone Apr Sentix investor confidence expected unch at 13.9, Mar 13.9.
	0900 ET	ECB Vice President Vitor Constancio presents the ECBs annual report to the European Parliament in Brussels.
GER	0600 ET	German Feb industrial production expected +0.3% m/m and +4.7% y/y, Jan +0.8% m/m and +5.0% y/y.

U.S. STOCK CALENDAR04/07/2014

Company Name	Ticker	Time	Event Description	Period	Estimate
Principal Financial Group Inc	PFG US	8:00	Roadshow -Tokyo Day 1	Y 2014
AO Smith Corp	AOS US		Annual General Meeting
Cheniere Energy Inc	LNG US		Analyst Day