MORNING CALL 11/5

MORNING CALL

Thursday, November 5th, 2015View Older Reports

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OVERNIGHT MARKETS AND NEWS

December E-mini S&Ps (ESZ15 +0.43%) are up +0.29% and European stocks are up +0.85% on better-than-expected company quarterly earnings offset the possibility the Fed may raise interest rates next month. Facebook is up over 4% in pre-market trading after it reported stronger-than-expected Q3 earnings and Societe Generale SA and Adidas AG are both up nearly 5% after they reported better-than-expected earnings results. Comments on Wednesday from Fed Chair Yellen signaled the Fed may still yet raise interest rates this month, although European government bonds rallied today as German bunds recovered from a 2-week low after weaker-than-expected economic data on Eurozone Sep retail sales and German Sep factory orders boosted speculation the ECB may need to expand QE. As expected, the BOE kept its benchmark interest rate at 0.50% and maintained its asset purchase target at 375 billion pounds following today's policy meeting. Asian stocks settled mixed: Japan +1.00%, Hong Kong-0.01%, China +1.83%, Taiwan -0.08%, Australia -0.94%, Singapore -0.55%, South Korea -0.21%, India -0.94%. China's Shanghai Composite rose to a 2-1/2 month high as government measures to limit short selling and to direct state funds to stock purchases have boosted Chinese stocks.

The dollar index (DXY00 unch) is down -0.02%. EUR/USD (^EURUSD) is up +0.02%. USD/JPY (^USDJPY) is up % at a 2-1/4 month high as the rally in stocks reduces the safe-haven demand for the yen.

Dec T-note prices (ZNZ15 unch) are up +2.5 ticks.

The European Commission raised its 2015 Eurozone GDP estimate to 1.6% from a previous estimate of 1.5%, but cut its 2016 Eurozone GDP estimate to 1.8% from a 1.9% estimate in May.

Eurozone Sep retail sales unexpectedly fell -0.1% m/m, weaker than expectations of +0.2% m/m and the first decline in 6 months. On an annual basis, Sep retail sales rose +2.9% y/y, weaker than expectations of +3.0% y/y.

German Sep factory orders unexpectedly fell -1.7% m/m, weaker than expectations of +1.0% m/m and the third straight monthly decline. On an annual basis, Sep factory orders fell -1.0% y/y, weaker than expectations of +1.9% y/y.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Oct Challenger job cuts (Sep +93.2% y/y), (2) weekly initial unemployment claims (expected +2,000 to 262,000, previous +1,000 to 260,000) and continuing claims (expected -4,000 to 2.140 million, previous -37,000 to 2.144 million), (3) Q3 non-farm productivity (expected-0.3%, Q2 +3.3%) and Q3 unit labor costs (expected +2.5%, Q2 -1.4%), (4) speaking engagements by Fed Vice Chair Stanley Fischer, New York Fed President William Dudley and IMF Managing Director Christine Lagarde at a workshop on reforming culture and behavior in the financial services industry, and (5) Atlanta Fed President Dennis Lockhart's speech to the Joint Central Bank Conference in Bern, Switzerland.

There are 24 of the S&P 500 companies that report earnings today with notable reports including: Walt Disney (1.14), Symantec (0.42), Duke Energy (1.52), Molson Coors Brewing (1.30), Ralph Lauren (1.73), TripAdvisor (0.54), Kraft Heinz (0.65), Monster Beverage (0.81).

U.S. IPO's scheduled to price today: Lending Tree (TREE), Cancer Genetics (CGIZ), Xtera Communications (XCOM), GenSight Biologics (GNST).

Equity conferences during the remainder of this week include: Citi Global Health Care Conference on Thu, Needham Next Generation Storage Networking Conference on Thu, Bernstein Technology Innovation Summit on Thu-Fri, BancAnalysts Association of Boston Conference on Thu-Fri.

OVERNIGHT U.S. STOCK MOVERS

Molson Coors Brewing (TAP -0.55%) reported Q3 EPS of $1.40, better than consensus of $1.30.

Celgene (CELG +0.51%) reported Q3 EPS of $1.23, higher than consensus of $1.22.

Facebook (FB +1.33%) climbed over 4% in pre-market trading after it reported Q3 adjusted EPS of 57 cents, higher than consensus of 52 cents.

Gilead Sciences (GILD -0.11%) fell nearly 2% in after-hours trading after French doctors said that Gilead's hepatitis C medicine Sovaldi may trigger an abnormally slow heartbeat and put patients at risk of passing out.

Qualcomm (QCOM -1.00%) slipped over 6% in after-hours trading after it reported Q4 adjusted EPS of 91 cents, better than consensus of 86 cents, but then lowered guidance on Q1 EPS to 80 cents-90 cents, below consensus of $1.08.

Marathon Oil (MRO -1.32%) fell over 4% in after-hours trading after it reported a Q3 adjusted EPS loss of -20 cents, better than consensus of a -41 cent loss, but reported Q3 revenue of $1.32 billion, below consensus of $1.38 billion.

CenturyLink (CTL -1.65%) rose over 1% in after-hours trading after it reported Q3 adjusted EPS of 70 cents, higher than consensus of 69 cents.

Bojangles' (BOJA +4.43%) climbed nearly 5% in after-hours trading after it reported Q3 adjusted EPS of 23 cents, better than consensus of 18 cents, and then raised guidance on fiscal 2015 EPS to 79 cents-81 cents from a prior view of 75 cents-78 cents, above consensus of 76 cents.

Lannett (LCI -1.54%) tumbled 15% in after-hours trading after it reported Q1 adjusted EPS of 99 cents, higher than consensus of 89 cents, but said a "key customer has taken steps to transition its purchases of certain product lines" from Kremers Urban Pharmaceuticals, which LCI agreed to acquire on Sep 1.

SolarEdge (SEDG -8.76%) rose over 6% in after-hours trading after it reported Q1 adjusted EPS of 36 cents, better than consensus of 29 cents.

Select Comfort (SCSS -2.63%) jumped over 10% in after-hours trading after it reported Q3 EPS of 62 cents, higher than consensus of 41 cents.

FireEye (FEYE +0.66%) slumped over 15% in after-hours trading after it lowered guidance on fiscal 2015 revenue to $620 million-$628 million from an earlier estimate of $630 million-$645 million, below consensus of $640.4 million.

MARKET COMMENTS

Dec E-mini S&Ps (ESZ15 +0.43%) this morning are up +6.00 points (+0.29%). Wednesday's closes: S&P 500 -0.35%, Dow Jones -0.28%, Nasdaq -0.03%. The S&P 500 on Wednesday closed lower on interest rate concerns after Fed Chair Yellen reiterated that a December interest rate increase was a "live possibility." Stocks also saw weakness as the dollar jumped to a 2-3/4 month high and caused worries about lower overseas earnings. Energy producers saw weakness after crude oil prices sold off.

Dec 10-year T-notes (ZNZ15 unch) this morning are up +2.5 ticks. Wednesday's closes: TYZ5 -6.00, FVZ5 -7.25. Dec T-notes on Wednesday slumped to a 3-month nearest-futures low and closed lower on Fed Chair Yellen's comment that the U.S. economy performing well and that a rate hike at the Dec FOMC meeting is a "live possibility" if the economic data holds up. T-note prices were also undercut by the unexpected increase in the Oct ISM non-manufacturing index.

The dollar index (DXY00 unch) this morning is down -0.017 (-0.02%). EUR/USD (^EURUSD) is up +0.0002 (+0.02%). USD/JPY (^USDJPY) is up +0.42 (+0.35%). Wednesday's closes: Dollar Index +0.792 (+0.82%), EUR/USD -0.0098 (-0.89%), USD/JPY +0.50 (+0.41%). The dollar index on Wednesday jumped to a 2-3/4 month high and closed higher on Fed Chair Yellen's comment that an interest rate increase at the Dec FOMC meeting is a "live possibility" if economic data hold up. In addition, EUR/USD fell to a 3-1/4 month low after Tuesday afternoon's comments from ECB President Draghi that bolstered speculation the ECB may expand QE when he said the ECB is "willing and able" to act to support the recovery.

Dec crude oil (CLZ15 +0.17%) this morning is up +5 cents (+0.11%) and Dec gasoline (RBZ15 -0.40%) is down -0.0058 (-0.42%). Wednesday's closes: CLZ5 -1.32 (-2.76%), RBZ5 -0.0421 (-2.91%). Dec crude oil and gasoline prices on Wednesday closed lower on the rally in the dollar index to a 2-3/4 month high and the EIA report, which showed a +0.5% increase in U.S. crude production to 9.16 million bpd and a +2.85 million bbl increase in EIA crude inventories to a 5-1/2 month high, a bigger increase than expectations of +2.50 million bbl.

GLOBAL EVENT CALENDAR11/05/2015

US	0700 ET	Oct Challenger job cuts, Sep +93.2% y/y.
	0830 ET	Weekly initial unemployment claims expected +2,000 to 262,000, previous +1,000 to 260,000. Weekly continuing claims expected -4,000 to 2.140 million, previous -37,000 to 2.144 million.
	0830 ET	Q3 non-farm productivity expected -0.3%, Q2 +3.3%. Q3 unit labor costs expected +2.5%, Q2 -1.4%.
	0830 ET	USDA weekly Export Sales.
	0830 ET	Fed Vice Chair Stanley Fischer, New York Fed President William Dudley and IMF Managing Director Christine Lagarde speak at a workshop on reforming culture and behavior in the financial services industry.
	1330 ET	Atlanta Fed President Dennis Lockhart speaks to the Joint Central Bank Conference in Bern, Switzerland.
GER	0200 ET	German Sep factory orders expected +1.0% m/m and +1.9% y/y, Aug -1.8% m/m and +1.9% y/y.
	0330 ET	German Oct Markit construction PMI, Sep 52.4.
UK	0400 ET	UK Oct new car registrations, Sep +8.6% y/y.
	0700 ET	BOE announces interest rate decision and asset purchase target, expected no change to the 0.50% benchmark rate or to the 375 billion pound asset purchase target.
	0700 ET	BOE Quarterly inflation report.
EUR	0500 ET	Eurozone Sep retail sales expected +0.2% m/m and +3.0% y/y, Aug unch m/m and +2.3% y/y.
	0500 ET	European Commission releases economic forecasts.

U.S. STOCK CALENDAR11/05/2015

Company	Ticker	Time	Event Description	Period	Estimate
CenterPoint Energy Inc	CNP US	Bef-mkt	Q3 2015 Earnings Release	Q3 2015	0.293
TECO Energy Inc	TE US	Bef-mkt	Q3 2015 Earnings Release	Q3 2015	0.313
AES Corp/VA	AES US	Bef-mkt	Q3 2015 Earnings Release	Q3 2015	0.359
Celgene Corp	CELG US	Bef-mkt	Q3 2015 Earnings Release	Q3 2015	1.224
Symantec Corp	SYMC US	Bef-mkt	Q2 2016 Earnings Release	Q2 2016	0.419
Quanta Services Inc	PWR US	Bef-mkt	Q3 2015 Earnings Release	Q3 2015	0.292
Endo International PLC	ENDP US	Bef-mkt	Q3 2015 Earnings Release	Q3 2015	0.989
Teradata Corp	TDC US	Bef-mkt	Q3 2015 Earnings Release	Q3 2015	0.557
Duke Energy Corp	DUK US	7:00	Q3 2015 Earnings Release	Q3 2015	1.515
Fastenal Co	FAST US	7:00	October 2015 Sales and Revenue Release	2015
L Brands Inc	LB US	7:30	October 2015 Sales and Revenue Call	2015
Molson Coors Brewing Co	TAP US	7:30	Q3 2015 Earnings Release	Q3 2015	1.295
Apache Corp	APA US	8:00	Q3 2015 Earnings Release	Q3 2015	-0.375
Ralph Lauren Corp	RL US	8:00	Q2 2016 Earnings Release	Q2 2016	1.734
MetLife Inc	MET US	8:00	Q3 2015 Earnings Call	Q3 2015
Symantec Corp	SYMC US	8:30	Q2 2016 Earnings Call	Q2 2016
Endo International PLC	ENDP US	8:30	Q3 2015 Earnings Call	Q3 2015
Teradata Corp	TDC US	8:30	Q3 2015 Earnings Call	Q3 2015
TECO Energy Inc	TE US	9:00	Q3 2015 Earnings Call	Q3 2015
Marathon Oil Corp	MRO US	9:00	Q3 2015 Earnings Call	Q3 2015
AES Corp/VA	AES US	9:00	Q3 2015 Earnings Call	Q3 2015
Celgene Corp	CELG US	9:00	Q3 2015 Earnings Call	Q3 2015
Transocean Ltd	RIG US	9:00	Q3 2015 Earnings Call	Q3 2015
Ralph Lauren Corp	RL US	9:00	Q2 2016 Earnings Call	Q2 2016
Quanta Services Inc	PWR US	9:00	Q3 2015 Earnings Call	Q3 2015
CF Industries Holdings Inc	CF US	9:00	Q3 2015 Earnings Call	Q3 2015
WestRock Co	WRK US	9:00	Q4 2015 Earnings Call	Q4 2015
Computer Sciences Corp	CSC US	9:30	Investor Day	Y 2015
CenterPoint Energy Inc	CNP US	9:30	Q3 2015 Earnings Call	Q3 2015
Duke Energy Corp	DUK US	10:00	Q3 2015 Earnings Call	Q3 2015
Kimco Realty Corp	KIM US	10:00	Q3 2015 Earnings Call	Q3 2015
Fastenal Co	FAST US	10:00	Investor Meeting	Y 2015
Molson Coors Brewing Co	TAP US	11:00	Q3 2015 Earnings Call	C3 2015
Prudential Financial Inc	PRU US	11:00	Q3 2015 Earnings Call	Q3 2015
Molson Coors Brewing Co	TAP US	13:00	Q3 2015 Earnings Call - Follow-Up Session	Q3 2015
Apache Corp	APA US	14:00	Q3 2015 Earnings Call	Q3 2015
Qorvo Inc	QRVO US	16:00	Q2 2016 Earnings Release	Q2 2016	1.114
Walt Disney Co/The	DIS US	16:15	Q4 2015 Earnings Release	Q4 2015	1.141
NVIDIA Corp	NVDA US	16:20	Q3 2016 Earnings Release	Q3 2016	0.345
TripAdvisor Inc	TRIP US	16:30	Q3 2015 Earnings Call	Q3 2015
Walt Disney Co/The	DIS US	17:00	Q4 2015 Earnings Call	Q4 2015
PerkinElmer Inc	PKI US	17:00	Q3 2015 Earnings Call	Q3 2015
Skyworks Solutions Inc	SWKS US	17:00	Q4 2015 Earnings Call	Q4 2015
NVIDIA Corp	NVDA US	17:00	Q3 2016 Earnings Call	Q3 2016
Kraft Heinz Co/The	KHC US	17:00	Q3 2015 Earnings Call	Q3 2015
Qorvo Inc	QRVO US	17:00	Q2 2016 Earnings Call	Q2 2016
Monster Beverage Corp	MNST US	17:00	Q3 2015 Earnings Call	Q3 2015
Consolidated Edison Inc	ED US	Aft-mkt	Q3 2015 Earnings Release	Q3 2015	1.481
PerkinElmer Inc	PKI US	Aft-mkt	Q3 2015 Earnings Release	Q3 2015	0.598
EOG Resources Inc	EOG US	Aft-mkt	Q3 2015 Earnings Release	Q3 2015	-0.302
Skyworks Solutions Inc	SWKS US	Aft-mkt	Q4 2015 Earnings Release	Q4 2015	1.516
Mohawk Industries Inc	MHK US	Aft-mkt	Q3 2015 Earnings Release	Q3 2015	2.991
TripAdvisor Inc	TRIP US	Aft-mkt	Q3 2015 Earnings Release	Q3 2015	0.54
News Corp	NWSA US	Aft-mkt	Q1 2016 Earnings Release	Q1 2016	0.057
Kraft Heinz Co/The	KHC US	Aft-mkt	Q3 2015 Earnings Release	Q3 2015	0.647
Monster Beverage Corp	MNST US	Aft-mkt	Q3 2015 Earnings Release	Q3 2015	0.809
News Corp	NWSA US	17:30	Q1 2016 Earnings Call	Q1 2016
L Brands Inc	LB US		October 2015 Sales and Revenue Release	2015
Gilead Sciences Inc	GILD US		PDUFA, ECF/TAF single tablet for HIV
United Parcel Service Inc	UPS US		Roadshow - Day2	Y 2015

Today's 5 Best Large Caps

This morning I wanted to find the large cap stocks that have had good price appreciation not only over the past year but also still seem to have some steam left.  I used Barchart to sort the S&P 500 Large Cap Index stocks first for the highest Weighted Alpha then for current technical buy signals of 80% or better.  The stock that made the cut were Cablevision Systems (CVC), Under Armour (UA), Teco Energy (TE), Reynolds American (RAI and Autozone (AZO).

Cablevision Systems (CVC)

Barchart technical indicators:

• 96% Barchart technical buy signals
• 97.80+ Weighted Alpha
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 13 new highs and up 39.55% in the last month
• Relative Strength Index 78.59%
• Barchart computes a technical support level at 32.93
• Recently traded at 33.13 with a 50 day moving average of 27.01

Under Armour (UA)

Barchart technical indicators:

• 80% Barchart technical buy signals
• 51.90+ Weighted Alpha
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 10 new highs and up 12.66% in the last month
• Relative Strength Index 58.23%
• Barchart computes a technical support level at 99.92
• Recently traded at 101.43 with a 50 day moving average of 96.30

Teco Energy (TE)

Barchart technical indicators:

• 88% Barchart technical buy signals
• 51.10+ Weighted Alpha
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 8 new highs and up 22.74% in the last month
• Relative Strength Index 79.98%
• Barchart computes a technical support level at 26.50
• Recently traded at 26.61 with a 50 day moving average of 22.71

Reynolds American (RAI)

Barchart technical indicators:

• 88% Barchart technical buy signals
• 45.60+ Weighted Alpha
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 6 new highs and up 2.71% in the last month
• Relative Strength Index 57.89%
• Barchart computes a technical support level at 42.40
• Recently traded at 42.94 with a 50 day moving average of 41.91

Autozone (AZO)

Barchart technical indicators:

• 88% Barchart technical buy signals
• 43.10+ Weighted Alpha
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 6 new highs and up 6.46% in the last month
• Relative Strength Index 61.16%
• Barchart computes a technical support level at 710.76
• Recently traded at 746.23 with a 50 day moving average of 711.46

The 2 Best Large Caps

Today I used Barchart to sort the S&P 500 Large Cap Index stocks to find which ones met my criteria.  Today there were only two stocks that passed the test: Vulcan Materials (VMC) and  Teco Energy (TE).

Vulcan Materials (VMC)

Barchart technical indicators:

• 96% Barchart technical buy signals
• 60.72+ Weighted Alpha
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 3 new highs and up 2.12% in the last month
• Relative Strength Index 61.77%
• Barchart computes a technical support level at 97.81
• Recently traded at 99.84 with a 50 day moving average of 93.02

Teco Energy (TE)

Barchart technical indicators:

• 96% Barchart technical buy signals
• 51.46+ Weighted Alpha
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 5 new highs and up 19.57% in the last month
• Relative Strength Index 84.97%
• Barchart computes a technical support level at 26.48
• Recently traded at 26.76 with a 50 day moving average of 21.56 

BARCHART MORNING CALL 2/9

BARCHART MORNING CALL 

Monday, February 9th, 2015View Older Reports

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

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OVERNIGHT MARKETS AND NEWS

March E-mini S&Ps (ESH15 -0.54%) this morning are down -0.60% and European stocks are down -1.59% on Greek sovereign debt concerns after Greek Prime Minister Tsipras on Sunday vowed to negotiate an end to austerity measures, which fuels concern about a confrontation with Greece's international creditors. EU finance ministers will hold an emergency meeting in Brussels on Wednesday with Greek Finance Minister Varoufakis to discuss Greece's financing needs. Also pressuring stocks was an unexpected decline in China Jan exports, which fell by the most in 10 months and heightens concern about a global economic slowdown. Asian stocks closed mostly lower: Japan +0.36%, Hong Kong -0.64%, China +1.01%, Taiwan -0.37%, Australia -0.09%, Singapore -0.39%, South Korea -0.36%, India -1.71%. Despite the largest drop in China Jan imports in 5-1/2 years, Chinese stocks rose on speculation that the government will boost stimulus measures to revive economic growth. Commodity prices are mostly higher. Mar crude oil (CLH15 +1.66%) is up +1.37% and Mar gasoline (RBH15 +1.12%) is up +0.83%. Apr gold (GCJ15 +0.35%) is up +0.53%. Mar copper (HGH15 -0.35%) is down -0.04%. Agriculture prices are mixed. The dollar index (DXY00 unch) is down -0.03%. EUR/USD (^EURUSD) is down -0.05%. USD/JPY (^USDJPY) is down -0.54%. Mar T-note prices (ZNH15 +0.17%) are up +7.5 ticks.
The China Jan trade balance unexpectedly expanded to a record +$60.03 billion surplus, wider than expectations of a +$48.90 billion surplus. Jan exports unexpectedly fell -3.3% y/y, weaker than expectations of +5.9% y/y and the lowest in 10 months. Jan imports sank -19.9% y/y, more than expectations of -3.2% y/y and the biggest decline in 5-1/2 years.
The Eurozone Feb Sentix investor confidence jumped +11.5 to 12.4, more than expectations of +2.1 to 3.0 and the highest in 9 months.
The German Dec trade balance unexpectedly widened to a surplus of +19.1 billion euros, wider than expectations of +16.0 billion euros. Dec exports rose +3.4% m/m, better than expectations of +1.0% m/m. Dec imports unexpectedly fell -0.8% m/m, weaker than expectations of +0.2% m/m.
The Japan Jan consumer confidence index rose +0.3 to 39.1, less than expectations of +0.5 to 39.3.

U.S. STOCK PREVIEW

There are no U.S. economic reports today. There are 7 of the S&P 500 companies that report earnings today: Diamond Offshore Drilling (consensus $0.66), Hasbro (1.20), TECO Energy (0.21), Loews (0.53), Masco (0.20), Computer Sciences (1.12), Dun & Bradstreet (2.62).
Equity conferences this week include: Stifel, Nicolaus Technology, Internet & Media Conference on Mon-Tue, BIO CEO & Investor Conference on Tue, Credit Suisse Financial Services Forum on Tue-Wed, Stifel Transportation and Logistics Conference on Tue-Wed, Goldman Sachs Technology & Internet Conference on Tue-Thu, Aviation Festival Asia on Wed-Thu, Bank of America Merrill Lynch Insurance Conference on Wed-Thu, Leerink Swann Global Health Care Conference on Wed-Thu, Bank of America Merrill Lynch Rates and Currencies Risk Management Conference on Wed-Thu, BB&T Capital Markets Transportation Services Conference on Wed-Thu, and Morgan Stanley Chemicals Corporate Access Day on Thu.

OVERNIGHT U.S. STOCK MOVERS

Alcoa (AA -2.93%) was downgraded to 'Neutral' from 'Overweight' at JPMorgan Chase.
Buffalo Wild Wings (BWLD +7.12%) was downgraded to 'Hold' from 'Buy' at Miller Tabak.
Pfizer (PFE +0.55%) was upgraded to 'Outperform' from 'Market Perform' at BMO Capital.
B. Riley downgraded Skechers (SKX -0.81%) to 'Neutral' from 'Buy.'
Prudential (PRU +3.29%) was downgraded to 'Hold' from 'Buy' at Deutsche Bank.
Abercrombie & Fitch (ANF -0.15%) was downgraded to 'Sell' from 'Hold' at Wunderlich.
TECO Energy (TE -3.26%) reported Q4 EPS of 19 cents, less than consensus of 21 cents.
Loews (L +0.02%) reported Q4 EPS of 59 cents, better than consensus of 53 cents.
Masco (MAS +1.80%) reported Q4 EPS pf 24 cents, more than consensus of 20 cents.
Hasbro (HAS -0.69%) reported Q4 EPS of $1.22, highe than consensus of $1.20.
Diamond Offshore Drilling (DO -0.68%) reported Q4 EPS of 73 cents, better than consensus of 66 cents.
Barron's reports that Hillenbrand (HI +2.81%) , which generates lots of free cash and is modestly valued, could see its shares rise 20% over the next year.
Dominion (D -3.79%) reported Q4 EPS of 84 cents, better than consensus of 83 cents.

MARKET COMMENTS

Mar E-mini S&Ps (ESH15 -0.54%) this morning are down -12.25 points (-0.60%). The S&P 500 index on Friday rallied up to a 1-1/4 month high but gave up its gains and closed lower: S&P 500 -0.34%, Dow Jones -0.34%, Nasdaq -0.65%. Bullish factors included (1) the +257,000 increase in U.S. Jan non-farm payrolls, more than expectations of +230,000, along with the upward revision in Dec payrolls to +329,000 from the originally reported +252,000, and (2) the +0.5% m/m increase in U.S. Jan avg hourly earnings, more than expectations of +0.3% m/m and the largest monthly increase in 6 years. Stocks fell back and closed lower on long liquidation after Philadelphia Fed President Plosser said that stronger U.S. economic data has him "at the cusp" of thinking the time to raise interest rates is now.
Mar 10-year T-notes (ZNH15 +0.17%) this morning are up +7.5 ticks. Mar 10-year T-note futures prices on Friday slid to a 1-month low and closed lower. Closes: TYH5 -1-4.5/32, FVH5 -27.25. Bearish factors included (1) the larger-than-expected increase in U.S. Jan non-farm payrolls and Jan hourly earnings, which increases the likelihood the Fed raises interest rates as soon as Jun, and (2) hawkish comments from Philadelphia Fed President Plosser who said "we're fast approaching" the point where it's hard to justify not raising rates.
The dollar index (DXY00 unch) this morning is down -0.028 (-0.03%). EUR/USD (^EURUSD) is down -0.0006 (-0.05%). USD/JPY (^USDJPY) is down -0.64 (-0.54%). The dollar index on Friday closed higher: Dollar index +1.129 (+1.21%), EUR/USD -0.01663 (-1.45%), USD/JPY +1.606 (+1.37%). Bullish factors included (1) the stronger-than-expected U.S. Jan payrolls report, which bolsters the outlook for the Fed to raise interest rates sooner rather than later, and (2) weakness in the yen after USD/JPY climbed to a 3-week high as an early rally in the S&P 500 to a 1-1/4 month high reduced the safe-haven demand for the yen.
Mar WTI crude oil (CLH15 +1.66%) this morning is up +71 cents (+1.37%) and Mar gasoline (RBH15 +1.12%) is up +0.0129 (+0.83%). Mar crude oil and Mar gasoline on Friday closed higher: CLH5 +1.21 (+2.40%), RBH5 +0.0402 (+2.64%). Bullish factors included (1) the larger-than-expected increase in U.S. Jan non-farm payrolls, a sign of economic strength, (2) signs that U.S. oil production may fall after data from Baker Hughes that showed operating U.S. oil rigs in the week ended Feb 6 fell to a 3-year low of 1140, and (3) the ongoing strike by the United Steelworkers union, which represents employees at more than 200 refineries and 10% of U.S. refining output, which may lead to reduced gasoline and distillate output.

GLOBAL EVENT CALENDAR02/09/2015

US	1100 ET	USDA weekly grain export inspections.
	n/a	2-day meeting of G-20 finance chiefs begins in Istanbul, Turkey.
JPN	0000 ET	Japan Jan consumer confidence index expected +0.5 to 39.3, Dec 38.8.
	0100 ET	Japan Jan eco-watchers survey current expected +0.6 to 45.8, Dec 45.2. Jan eco-watchers survey outlook expected +0.8 to 47.5, Dec 46.7.
	1850 ET	Japan Dec tertiary industry index expected -0.1% m/m, Nov +0.2% m/m.
GER	0200 ET	German Dec trade balance expected +16.0 billion euros, Nov +17.9 billion euros. Dec exports expected +1.0% m/m, Nov -1.9% m/m. Dec imports expected +0.2% m/m, Nov +1.6% m/m.
EUR	0430 ET	Eurozone Feb Sentix investor confidence expected +2.1 to 3.0, Jan 0.9.
UK	1901 ET	UK Jan BRC sales like-for-like expected +0.5% y/y, Dec -0.4% y/y.
CHI	2030 ET	China Jan CPI expected +1.0% y/y, Dec +1.5% y/y. Jan PPI expected -3.7% y/y, Dec -3.3% y/y.
	n/a	China Jan new yuan loans expected 1.350 trillion yuan, Dec +697.3 billion yuan.

U.S. STOCK CALENDAR02/09/2015

Company	Ticker	Time	Event Description	Period	Estimate
Diamond Offshore Drilling Inc	DO US	Bef-mkt	Q4 2014 Earnings Release	Q4 2014	0.657
Hasbro Inc	HAS US	Bef-mkt	Q4 2014 Earnings Release	Q4 2014	1.195
TECO Energy Inc	TE US	Bef-mkt	Q4 2014 Earnings Release	Q4 2014	0.211
Loews Corp	L US	Bef-mkt	Q4 2014 Earnings Release	Q4 2014	0.53
Masco Corp	MAS US	7:00	Q4 2014 Earnings Release	Q4 2014	0.199
Diamond Offshore Drilling Inc	DO US	8:30	Q4 2014 Earnings Call	Q4 2014
Hasbro Inc	HAS US	8:30	Q4 2014 Earnings Call	Q4 2014
Masco Corp	MAS US	8:30	Q4 2014 Earnings Call	Q4 2014
Dominion Resources Inc/VA	D US	9:00	Analyst Meeting	Y 2015
TECO Energy Inc	TE US	10:00	Q4 2014 Earnings Call	Q4 2014
Loews Corp	L US	11:00	Q4 2014 Earnings Call	Q4 2014
Gap Inc/The	GPS US	16:00	January 2015 Sales and Revenue Release	2015
Computer Sciences Corp	CSC US	16:15	Q3 2015 Earnings Release	Q3 2015	1.115
Computer Sciences Corp	CSC US	17:00	Q3 2015 Earnings Call	Q3 2015
Dun & Bradstreet Corp/The	DNB US	Aft-mkt	Q4 2014 Earnings Release	Q4 2014	2.616
Masco Corp	MAS US		Investor Day	Y 2015
McDonald's Corp	MCD US		January 2015 Sales and Revenue Release	2015

BARCHART MORNING CALL 10/31

BARCHART MORNING CALL

Friday, October 31st, 2014View Older Reports

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OVERNIGHT MARKETS AND NEWS

December E-mini S&Ps (ESZ14 +1.07%) this morning are up +1.16% at a contract high and European stocks are up +1.96% as global stocks rallied sharply after the BOJ unexpectedly expanded stimulus. The BOJ said it will increase holdings of government bonds to 80 trillion yen ($724 billion) from as much as 70 trillion yen and will boost exchange-traded fund purchases to 3 trillion yen. Asian stocks closed higher: Japan +4.83%, Hong Kong +1.25%, China +1.60%, Taiwan +0.98%, Australia +0.92%, Singapore +1.23%, South Korea +0.65%, India +1.90%. Japan's Nikkei Stock Index soared to a 7-year high and China's Shanghai Stock Index climbed to a 1-1/2 year high on the unexpected action by the BOJ to raise stimulus. Japanese stocks also received a boost after Japan's Government Pension Investment Fund, the world's biggest pension fund, said it will raise its allocation target for Japanese and overseas equities to 25% from 12%. In an attempt to stop the slide in the ruble, the Bank of Russia raised its key interest rate to 9.5% from 8.0%. Commodity prices are mostly lower as the dollar surged after the BOJ's action to expand stimulus. Dec crude oil (CLZ14 -0.83%) is down -0.86%. Dec gasoline (RBZ14 -1.07%) is down -1.05%. Dec gold (GCZ14 -2.12%) is down -2.18% at a 4-1/4 year low. Dec copper (HGZ14 +0.65%) is up +0.60%. Agriculture prices are mixed. The dollar index (DXY00 +0.46%) is up +0.53% at a 4-week high. EUR/USD (^EURUSD) is down -0.29% at a 3-week low after Eurozone Oct core CPI rose at the slowest pace of increase on record. USD/JPY (^USDJPY) is up +2.30% at a 6-3/4 year high as the yen plunged following the increase in quantitative easing by the BOJ. Dec T-note prices (ZNZ14 -0.21%) are down -5.5 ticks.
The BOJ unexpectedly expanded its stimulus measures by raising the target for enlarging the monetary base to 80 trillion yen ($724 billion), up from 60 to 70 trillion yen. The BOJ also lowered its estimate for the core consumer price index to +1.7% for the fiscal year through Mar 2016, down from a previous estimate of +1.9%.
The Eurozone Oct CPI estimate rose +0.4% y/y, right on expectations. The Oct core CPI rose +0.7% y/y, less than expectations of +0.8% y/y and matched the smallest pace of increase since the data series began in 1997.
The Eurozone Sep unemployment rate remained unchanged at 11.5% y/y, right on expectations.
German Sep retail sales tumbled -3.2% m/m, a bigger decrease than expectations of -0.9% m/m and the largest monthly decline in 7-1/3 years. On an annual basis, Sep retail sales rose +2.3% y/y, more than expectations of +1.2% y/y.
Japan Sep national CPI rose +3.2% y/y less than expectations of +3.3% y/y and the slowest pace of increase in 6 months. Sep national CPI ex-fresh food rose +3.0% y/y, right on expectations, and Sep national CPI ex food & energy rose +2.3% y/y, a faster pace of increase than expectations of +2.2% y/y.
The Japan Sep jobless rate rose +0.1 to 3.6%, right on expectations. The Sep job-to-applicant ratio fell -0.01 to 1.09, slightly weaker than expectations of unch at 1.10.
Japan Sep overall household spending dropped -5.6% y/y, a bigger decline than expectations of -4.3% y/y and the sixth consecutive month that spending has fallen.

U.S. STOCK PREVIEW

Today’s final-Oct U.S. consumer confidence index from the University of Michigan is expected to be unchanged from early-Oct at 86.4, thus leaving the index up by +1.8 points from Sep. Today’s Sep PCE deflator is expected to be unchanged from Aug at +1.5% y/y and for the Sep core PCE deflator to also be unchanged from Aug at +1.5% y/y. Today’s Oct Chicago PMI report is expected to fall -0.5 points to 60.0, adding to the -3.8 decline to 60.5 seen in September.
There are 14 of the S&P 500 companies that report earnings today with notable reports including: Berkshire Hathaway (consensus $2,592), Exxon (1.71), Chevron (2.52), AbbVie (0.77), Newell Rubbermaid (0.555), Weyerhaeuser (0.30), Aon (1.12). There are no equity conferences today.

OVERNIGHT U.S. STOCK MOVERS

Wyerhaeuser (WY +1.39%) reported Q3 EPS of 33 cents, higher than consensus of 30 cents.
Citigroup (C +0.95%) fell 1% in after-hours trading after it lowered its Q3 results due to a $600 million increase in legal accruals.
Mohawk (MHK +0.80%) reported Q3 EPS ex-items of $2.44, better than consensus of $2.42.
Fluor (FLR +1.36%) reported Q3 EPS of $1.15, higher than consensus of $1.10.
Live Nation (LYV +0.44%) reported Q3 EPS of 49 cents, stronger than consensus of 38 cents.
Standard Pacific (SPF +0.25%) reported Q3 EPS of 14 cents, less than consensus of 15 cents.
Mylan (MYL +2.99%) reported Q3 EPS of $1.16, better than consensus of $1.14, and then raised guidance on fiscal 2014 EPS view to $3.54-$3.60, above consensus of $3.49.
Groupon (GRPN +3.45%) reported Q3 EPS of 3 cents, triple consensus of 1 cent, but then lowered guidance on Q4 Q4 EPS ex-items to 2 cents-4 cents, below consensus of 7 cents.
Expedia (EXPE +1.50%) reported Q3 adjusted EPS of $1.93, higher than consensus of $1.74.
Western Union (WU +1.64%) reported Q3 EPS of 44 cents, stronger than consensus of 38 cents.
Crown Castle (CCI +0.90%) reported Q3 FFO of $1.05, better than consensus of $1.01.
Starbucks (SBUX +1.02%) fell over 3% in after-hours trading after it reported Q4 adjusted EPS of 74 cents, right on consensus, although Q4 revenue of $4.20 billion was slightly less than consensus of $4.23. Starbucks then lowered guiidance on fiscal 2015 EPS to $3.08-$3.13, below consensus of $3.16.
LinkedIn (LNKD +1.70%) climbed more than 4% in pre-market trading after it reported Q3 EPS of 52 cents, stronger than consensus of 47 cents, and then raised guidance on fiscal 2014 EPS to $1.89, higher than consensus of $1.87.
Columbia Sportswear (COLM +0.16%) reported Q3 EPS of 93 cents, better than consensus of 87 cents, and then raised guidance on fiscal 2014 EPS to $1.80, higher than consensus of $1.76.

MARKET COMMENTS

Dec E-mini S&Ps (ESZ14 +1.07%) this morning are up sharply by +23.00 points (+1.16%) at a fresh contract high. The S&P 500 index on Thursday climbed to a 1-month high and closed higher: S&P 500 +0.62%, Dow Jones +1.30%, Nasdaq +0.25%. Bullish factors included (1) U.S. Q3 GDP that grew at a +3.5% q/q annualized pace, stronger than expectations of +3.0% q/q annualized, (2) strong Q3 stock earnings results with about 80% of reporting S&P 500 companies having beaten earnings estimates, and (3) reduced European recession concerns after Eurozone Oct economic confidence unexpectedly rose +0.8 to 100.7, better than expectations of -0.2 to 99.7.
Dec 10-year T-notes (ZNZ14 -0.21%) this morning are down -5.5 ticks. Dec 10-year T-note futures prices on Thursday closed higher: TYZ4 +5.50, FVZ4 +4.75. Supportive factors included (1) slack price pressures after the U.S. Q3 core PCE deflator increased at a +1.4% q/q pace, well below the Fed's 2.0% target, which fueled curve flattening trades where investors sell short-term Treasuries (i.e., 2-year and 5-year T-notes) and buy longer-term Treasuries ((i.e., 10-year T-notes and 30-year T-bonds), and (2) carry-over support from a rally n German bunds on speculation the ECB may expand stimulus measures after German Oct CPI rose less than expected.
The dollar index (DXY00 +0.46%) this morning is up +0.458 (+0.53%) at a 4-week high. EUR/USD (^EURUSD) is down -0.0036 (-0.29%) at a 3-week low. USD/JPY (^USDJPY) is up +2.51 (+2.30%) at a 6-3/4 year high. The dollar index on Thursday posted a 3-week high and closed higher. Closes: Dollar index +0.195 (+0.23%), EUR/USD -0.00189 (-0.15%), USD/JPY +0.325 (+0.30%). Bullish factors included (1) signs of U.S. economic strength after U.S. Q3 GDP expanded at a stronger-than-expected +3.5% q/q annualized pace, and (2) weakness in EUR/USD which fell to a 3-week low on speculation the ECB may expand stimulus after German Oct CPI fell -0.3% m/m, more than expectations of -0.1% m/m and the largest decline in 5 months.
Dec WTI crude oil (CLZ14 -0.83%) this morning is down -0.70 cents (-0.86%) and Dec gasoline (RBZ14 -1.07%) is down -0.0227 (-1.05%). Dec crude and Dec gasoline on Thursday closed lower. Closes: CLZ4 -1.15 (-1.40%), RBZ4 -0.0239 (-1.10%). Bearish factors included (1) Wednesday's action by the Fed to end QE3 along with the hawkish post-FOMC statement that boosted the dollar index to a 3-week high, and (2) carry-over bearishness from Wednesday's weekly EIA data that showed U.S. crude production rose to 8.97 million bpd, a 40-year high.

GLOBAL EVENT CALENDAR10/31/2014

US	0830 ET	Sep personal spending expected +0.1%, Aug +0.5%. Sep personal income expected +0.3%, Aug +0.3%.
	0830 ET	Sep PCE deflator expected +0.1% m/m and +1.5% y/y, Aug unch m/m and +1.5% y/y. Sep core PCE deflator expected +0.1% m/m and +1.5% y/y, Aug +0.1% m/m and +1.5% y/y.
	0830 ET	Q3 employment cost index expected +0.5%, Q2 +0.7%.
	0900 ET	Oct Milwaukee PMI expected -3.18 to 60.00, Sep +3.55 to 63.18.
	0945 ET	Oct Chicago PMI expected -0.5 to 60.0, Sep -3.8 to 60.5.
	0955 ET	Final-Oct U.S. consumer confidence (University of Michigan) expected unch at 86.4, prelim-Oct +1.8 to 86.4.
JPN	0100 ET	Japan Sep housing starts expected -17.2% y/y to 848,000, Aug -12.5% y/y to 845,000.
	n/a	BOJ announces interest rate decision.
GER	0300 ET	German Sep retail sales expected -0.9% m/m and +1.2% y/y, Aug +1.5% m/m and +0.1% y/y
EUR	0600 ET	Eurozone Oct CPI estimate expected +0.4% y/y, Sep +0.3% y/y. Oct core CPI expected +0.8% y/y, Sep +0.8% y/y.
	0600 ET	Eurozone Sep unemployment rate expected unch at 11.5%.
CHI	2100 ET	China Oct manufacturing PMI (National Bureau of Statistics) expected +0.1 to 51.2, Sep unch at 51.1.

U.S. STOCK CALENDAR10/31/2014

Company Name	Ticker	Time	Event Description	Period	Estimate
Newell Rubbermaid Inc	NWL US	Bef-mkt	Q3 2014 Earnings Release	Q3 2014	0.551
Pinnacle West Capital Corp	PNW US	Bef-mkt	Q3 2014 Earnings Release	Q3 2014	2.134
AbbVie Inc	ABBV US	Bef-mkt	Q3 2014 Earnings Release	Q3 2014	0.773
Clorox Co/The	CLX US	Bef-mkt	Q1 2015 Earnings Release	Q1 2015	1.029
TECO Energy Inc	TE US	Bef-mkt	Q3 2014 Earnings Release	Q3 2014	0.326
Dominion Resources Inc/VA	D US	Bef-mkt	Q3 2014 Earnings Release	Q3 2014	0.949
Weyerhaeuser Co	WY US	Bef-mkt	Q3 2014 Earnings Release	Q3 2014	0.299
Aon PLC	AON US	6:30	Q3 2014 Earnings Release	Q3 2014	1.122
Legg Mason Inc	LM US	7:00	Q2 2015 Earnings Release	Q2 2015	0.005
Rockwell Collins Inc	COL US	7:30	Q4 2014 Earnings Release	Q4 2014	1.268
NextEra Energy Inc	NEE US	7:30	Q3 2014 Earnings Release	Q3 2014	1.538
Exxon Mobil Corp	XOM US	8:00	Q3 2014 Earnings Release	Q3 2014	1.708
Legg Mason Inc	LM US	8:00	Q2 2015 Earnings Call	Q2 2015
Eastman Chemical Co	EMN US	8:00	Q3 2014 Earnings Call	Q3 2014
Aon PLC	AON US	8:30	Q3 2014 Earnings Call	Q3 2014
Chevron Corp	CVX US	8:30	Q3 2014 Earnings Release	Q3 2014	2.519
Tesoro Corp	TSO US	8:30	Q3 2014 Earnings Call	Q3 2014
Newell Rubbermaid Inc	NWL US	9:00	Q3 2014 Earnings Call	Q3 2014
AbbVie Inc	ABBV US	9:00	Q3 2014 Earnings Call	Q3 2014
Rockwell Collins Inc	COL US	9:00	Q4 2014 Earnings Call	Q4 2014
TECO Energy Inc	TE US	9:00	Q3 2014 Earnings Call	Q3 2014
NextEra Energy Inc	NEE US	9:00	Q3 2014 Earnings Call	Q3 2014
Exxon Mobil Corp	XOM US	9:30	Q3 2014 Earnings Call	Q3 2014
Newmont Mining Corp	NEM US	10:00	Q3 2014 Earnings Call	Q3 2014
Dominion Resources Inc/VA	D US	10:00	Q3 2014 Earnings Call	Q3 2014
Weyerhaeuser Co	WY US	10:00	Q3 2014 Earnings Call	Q3 2014
Crown Castle International Corp	CCI US	10:30	Q3 2014 Earnings Call	Q3 2014
Mohawk Industries Inc	MHK US	11:00	Q3 2014 Earnings Call	Q3 2014
Chevron Corp	CVX US	11:00	Q3 2014 Earnings Call	Q3 2014
Pinnacle West Capital Corp	PNW US	12:00	Q3 2014 Earnings Call	Q3 2014
Public Storage	PSA US	13:00	Q3 2014 Earnings Call	Q3 2014
Apartment Investment & Management Co	AIV US	13:00	Q3 2014 Earnings Call	Q3 2014
Clorox Co/The	CLX US	13:30	Q1 2015 Earnings Call	Q1 2015
Essex Property Trust Inc	ESS US	14:00	Q3 2014 Earnings Call	Q3 2014
Bristol-Myers Squibb Co	BMY US	14:30	Investor Teleconference to Discuss CMSTO Highlights
Berkshire Hathaway Inc	BRK/A US		Q3 2014 Earnings Release	Q3 2014	2592.69