OVERNIGHT MARKETS AND NEWS
March E-mini S&Ps (
ESH14 -0.04%) this morning are down
-0.10% and European stocks are down
-0.19% as IBM and Texas Instruments slid in pre-market trading. Asian stocks closed mostly higher on a fall in Chinese money-market rates: Japan +0.16%, Hong Kong +0.21%, China +2.58%, Taiwan +0.30%, Australia
-0.22%, Singapore
-0.02%, South Korea +0.29%, India +0.41%. China's Shanghai Stock Index climbed to a 1
-1/2 week high after China's benchmark money-market rates fell for a second day as the PBOC made more funding available for smaller lenders. Commodity prices are mixed. Mar crude oil (
CLH14 +0.42%) is up +0.52% at a 2-week high on positive carry-over from the IEA's action Tuesday to hike its 2014 global crude oil consumption forecast. Mar gasoline (
RBH14 +0.32%) is up +0.68%. Feb gold (
GCG14 -0.07%) is down
-0.06%. March copper (
HGH14 -0.79%) is down
-0.58%. Agriculture and livestock prices are mixed. The dollar index (
DXY00 unch) is down
-0.02%. EUR/USD (
^EURUSD) is down
-0.04% and USD/JPY (
^USDJPY) is up +0.04%. The British pound rose to a 2-week high against the dollar after the UK Nov unemployment rate fell more than expected to a 4
-3/4 year low. March T-note prices (
ZNH14 -0.25%) are down
-8 ticks.
The minutes of the Jan
-9 BOE policy meeting stated that the MPC "saw no immediate need to raise the bank rate even if the 7.0% unemployment threshold were to be reached in the near future" as cost pressures were "subdued" and headwinds to growth "would persist for some time."
UK Dec jobless claims change fell
-24,000, less than expectations of
-32,000. The Dec claimant count rate was 3.7%, right on expectations and the lowest in 5-years.
The UK Nov ILO unemployment rate fell
-0.3 to 7.1% in the 3-months through Nov, better than expectations of
-0.1 to 7.3% and the lowest in 4
-3/4 years.
UK Nov avg weekly earnings rose +0.9% 3-mo avg y/y, less than expectations of +1.0% 3-mo avg y/y. Nov weekly earnings ex-bonus also rose +0.9% 3-mo avg y/y, less than expectations of +1.0% y/y.
UK Dec public sector net borrowing climbed +10.4 billion pounds, less than expectations of +12.0 billion pounds.
The Japan Nov leading index CI was revised upward to a 6
-1/2 year high of 111.1 from the originally reported 110.8. The Nov coincident index was revised upward to a 5
-1/3 year high of 110.7 from the originally reported 110.5.
The Japan Nov all-industry activity index rose +0.3% m/m, right on expectations, although Oct was revised down to
-0.4% m/m from the originally reported
-0.2% m/m.
U.S. STOCK PREVIEW
There are no major U.S. economic reports today. There are 25 of the S&P 500 companies that report earnings today. Notable reports include: eBay (consensus $0.80), Northern Trust (0.75), US Bancorp (0.75), United Technologies (1.53), Textron (0.59), Abbott Labs (0.58), Coach (1.11), St. Jude Medical (0.99), Noble (0.81), and Progressive (0.42).
There are 13 of the S&P 500 companies that report earnings today with notable reports including IBM (consensus $6.00), Texas Instruments (0.46), Halliburton (0.89), Baker Hughes (0.61), Johnson & Johnson (1.20), Verizon (0.65), Rockwell Collins (0.94), Travelers (2.15).
Equity conferences during the remainder of this week include: World Future Energy Summit on Tue-Wed, 13th Annual Pharma Contact Centers Conference on Wed-Thu, World Economic Forum Annual Meeting 2014 on Wed-Thu, and SMi Social Media in the Pharmaceutical Industry on Thu.
OVERNIGHT U.S. STOCK MOVERS
Mosaic (
MOS -0.45%) was downgraded to 'Sell' from 'Neutral' at Goldman.
Motorola Solutions (
MSI +1.53%) reported Q4 EPS of $1.67, stronger than consensus of $1.62.
United Technologies (
UTX +0.68%) reported Q4 EPS of $1.58, higher than consensus of $1.53.
Textron (
TXT unch) reported Q4 EPS of 60 cents, better than consensus of 59 cents.
Coach (
COH -0.02%) reported Q2 EPS of $1.06, below consensus of $1.11.
Allegheny Technologies (
ATI -5.84%) reported a Q4 EPS loss of
-8 cents, better than expectations of a
-21 cent loss.
Texas Instruments (
TXN +0.92%) fell over 1% in pre-market trading after it reported Q4 EPS of 46 cents with items, right on consensus, but then said it sees Q1 EPS of 36 cents
-44 cents, below consensus of 44 cents.
Xilinx (
XLNX +0.68%) reported Q3 EPS of 61 cents, stronger than consensus of 54 cents.
Nuance (
NUAN -0.87%) rose 9% in after-hours trading after it raised its Q1 adjusted EPS view to 23 cents
-24 cents from 18 cents
-21 cents, better than consensus of 20 cents.
Cree (
CREE +0.53%) climbed over 4% in after-hours trading after it reported adjusted Q2 EPS of 46 cents, better than consensus of 39 cents.
IBM (
IBM -0.87%) slid nealy 4% in pre-market trading after it reported Q4 EPS of $6.13, higher than consensus $5.99, and said it sees 2014 EPS at least $18.00, better than consensus of $17.97. However, IBM said revenue declined to $27.7 billion in the 3-months throgh Dec amid plunging demand for servers, the seventh consecutive quarter revenue has declined.
Bob Evans (
BOBE +0.04%) fell over 4% in after-hours trading after it cut its fiscal 2014 EPS outlook to $2.20-$2.30, well below consensus of $2.57.
MARKET COMMENTS
Mar E-mini S&Ps (
ESH14 -0.04%) this morning are down
-1.75 points (
-0.10%). The S&P 500 on Tuesday closed higher after the IMF raised its 2014 global GDP forecast to 3.7% from an Oct estimate of 3.6% along with carry-over support from a rally in Chinese stocks after the PBOC added funds to the financial system in an attempt to lower China's money-market rates. Stocks fell back from their best levels on weak Q4 earnings results from Johnson & Johnson and Verizon. Closes: S&P 500 +0.28%, Dow Jones
-0.27%, Nasdaq 100 +0.74%.
Mar 10-year T-notes (
ZNH14 -0.25%) this morning aredown
-8 ticks. Mar 10-year T-note futures prices on Tuesday moved lower on reduced safe-haven demand after the IMF raised their 2014 global GDP forecast, but a slide in stocks from their best levels pulled T-notes off of their lows and they finished just slightly lower. Closes: TYH4
-1.5, FVH4
-1.75.
The dollar index (
DXY00 unch) this morning is down
-0.019 (
-0.02%). EUR/USD (
^EURUSD) is down
-0.0006 (
-0.04%). USD/JPY (
^USDJPY) is up +0.04 (+0.04%). The dollar index on Tuesday posted a 2
-1/4 month high on speculation the Fed will continue to taper QE3 after the IMF raised their 2014 global GDP forecast. The dollar fell back, however, and closed lower after EUR/USD recovered early losses and moved higher when ECB Governing Council member Nowotny said his "personal view" is that the ECB could raise its Eurozone growth forecasts higher in March. Closes: Dollar index
-0.127 (
-0.16%), EUR/USD +0.0022 (+0.16%), USD/JPY +0.057 (+0.05%).
Mar WTI crude oil (
CLH14 +0.42%) this morning is up +49 cents (+0.52%) at a 2-week high and Mar gasoline (
RBH14 +0.32%) is up +0.0179 (+0.68%). Mar crude oil and gasoline prices on Tuesday closed higher with Mar crude at a 2-week high and Mar gasoline at a 1-week high after the IEA raised its 2014 global oil demand forecast by +90,000 bpd from last month to a record 92.5 million bpd and after the IMF raised its 2014 global GDP forecast to 3.7% from an Oct estimate of 3.6%. Closes: CLH4 +0.38 (+0.40%), RBH4 +0.0025 (+0.10%).
GLOBAL EVENT CALENDAR01/22/2014
| US | 0700 ET | Weekly MBA mortgage applications, previous +11.9% with purchase sub-index +11.5% and the refi sub-index +11.2%. |
| 1500 ET | Dec USDA Cold Storage. |
| JPN | 0000 ET | Revised Japan Nov leading index CI, previous 110.8. Revised Nov coincident index, previous 110.5. |
| n/a | BOJ announces interest rate decision. |
| UK | 0430 ET | UK Dec jobless claims change expected -32,000, Nov -36,700. Dec claimant count rate expected 3.7%, Nov 3.8%. |
| 0430 ET | UK Nov avg weekly earnings expected +1.0% 3-mo avg y/y, Oct +0.9% 3-mo avg y/y. Nov weekly earnings ex-bonus expected +1.0% 3-mo avg y/y, Oct +0.8% 3-mo avg y/y. |
| 0430 ET | UK Nov ILO unemployment rate expected -0.1 to 7.3% 3-months, Oct 7.4% 3-months. |
| 0430 ET | UK Dec public sector net borrowing expected +12.0 billion pounds, Nov +14.8 billion pounds. |
| 0430 ET | Minutes of the Jan 8-9 BOE policy meeting. |
| CHI | 2045 ET | China Jan HSBC/market flash manufacturing PMI expected -0.2 to 50.3, Dec -0.3 to 50.5. |
U.S. STOCK CALENDAR01/22/2014
| Company Name | Ticker | Time | Event Description | Period | Estimate |
|---|
| Abbott Laboratories | ABT US | Bef-mkt | Q4 2013 Earnings Release | Q4 2013 | 0.582 |
| Parker Hannifin Corp | PH US | Bef-mkt | Q2 2014 Earnings Release | Q2 2014 | 1.245 |
| Allegheny Technologies Inc | ATI US | Bef-mkt | Q4 2013 Earnings Release | Q4 2013 | -0.211 |
| Textron Inc | TXT US | Bef-mkt | Q4 2013 Earnings Release | Q4 2013 | 0.592 |
| United Technologies Corp | UTX US | Bef-mkt | Q4 2013 Earnings Release | Q4 2013 | 1.53 |
| General Dynamics Corp | GD US | Bef-mkt | Q4 2013 Earnings Release | Q4 2013 | 1.754 |
| Northern Trust Corp | NTRS US | Bef-mkt | Q4 2013 Earnings Release | Q4 2013 | 0.746 |
| US Bancorp/MN | USB US | Bef-mkt | Q4 2013 Earnings Release | Q4 2013 | 0.748 |
| TE Connectivity Ltd | TEL US | 6:00 | Q1 2014 Earnings Release | Q1 2014 | 0.769 |
| Motorola Solutions Inc | MSI US | 7:00 | Q4 2013 Earnings Release | Q4 2013 | 1.619 |
| Coach Inc | COH US | 7:00 | Q2 2014 Earnings Release | Q2 2014 | 1.109 |
| St Jude Medical Inc | STJ US | 7:30 | Q4 2013 Earnings Release | Q4 2013 | 0.988 |
| Motorola Solutions Inc | MSI US | 8:00 | Q4 2013 Earnings Call | Q4 2013 | |
| Norfolk Southern Corp | NSC US | 8:00 | Q4 2013 Earnings Release | Q4 2013 | 1.506 |
| Textron Inc | TXT US | 8:00 | Q4 2013 Earnings Call | Q4 2013 | |
| Freeport-McMoRan Copper & Gold Inc | FCX US | 8:00 | Q4 2013 Earnings Release | Q4 2013 | 0.798 |
| St Jude Medical Inc | STJ US | 8:00 | Q4 2013 Earnings Call | Q4 2013 | |
| Amphenol Corp | APH US | 8:00 | Q4 2013 Earnings Release | Q4 2013 | 0.984 |
| Allegheny Technologies Inc | ATI US | 8:30 | Q4 2013 Earnings Call | Q4 2013 | |
| Coach Inc | COH US | 8:30 | Q2 2014 Earnings Call | Q2 2014 | |
| TE Connectivity Ltd | TEL US | 8:30 | Q1 2014 Earnings Call | Q1 2014 | |
| FirstEnergy Corp | FE US | 8:30 | FY 2014 Guidance Call | Y 2014 | |
| Norfolk Southern Corp | NSC US | 8:45 | Q4 2013 Earnings Call | Q4 2013 | |
| Abbott Laboratories | ABT US | 9:00 | Q4 2013 Earnings Call | Q4 2013 | |
| United Technologies Corp | UTX US | 9:00 | Q4 2013 Earnings Call | Q4 2013 | |
| US Bancorp/MN | USB US | 9:00 | Q4 2013 Earnings Call | Q4 2013 | |
| Freeport-McMoRan Copper & Gold Inc | FCX US | 10:00 | Q4 2013 Earnings Call | Q4 2013 | |
| Parker Hannifin Corp | PH US | 11:00 | Q2 2014 Earnings Call | Q2 2014 | |
| General Dynamics Corp | GD US | 11:30 | Q4 2013 Earnings Call | Q4 2013 | |
| Northern Trust Corp | NTRS US | 12:00 | Q4 2013 Earnings Call | Q4 2013 | |
| Amphenol Corp | APH US | 13:00 | Q4 2013 Earnings Call | Q4 2013 | |
| Stryker Corp | SYK US | 16:00 | Q4 2013 Earnings Release | Q4 2013 | 1.224 |
| Netflix Inc | NFLX US | 16:05 | Q4 2013 Earnings Release | Q4 2013 | 0.657 |
| F5 Networks Inc | FFIV US | 16:30 | Q1 2014 Earnings Call | Q1 2014 | |
| Stryker Corp | SYK US | 16:30 | Q4 2013 Earnings Call | Q4 2013 | |
| eBay Inc | EBAY US | 17:00 | Q4 2013 Earnings Call | Q4 2013 | |
| Netflix Inc | NFLX US | 17:00 | Q4 2013 Earnings Call | Q4 2013 | |
| Varian Medical Systems Inc | VAR US | 17:00 | Q1 2014 Earnings Call | Q1 2014 | |
| Western Digital Corp | WDC US | 17:00 | Q2 2014 Earnings Call | Q2 2014 | |
| SanDisk Corp | SNDK US | 17:00 | Q4 2013 Earnings Call | Q4 2013 | |
| eBay Inc | EBAY US | Aft-mkt | Q4 2013 Earnings Release | Q4 2013 | 0.804 |
| Crown Castle International Corp | CCI US | Aft-mkt | Q4 2013 Earnings Release | Q4 2013 | 0.936 |
| Noble Corp plc | NE US | Aft-mkt | Q4 2013 Earnings Release | Q4 2013 | 0.811 |
| Varian Medical Systems Inc | VAR US | Aft-mkt | Q1 2014 Earnings Release | Q1 2014 | 0.905 |
| Western Digital Corp | WDC US | Aft-mkt | Q2 2014 Earnings Release | Q2 2014 | 2.084 |
| Jacobs Engineering Group Inc | JEC US | Aft-mkt | Q1 2014 Earnings Release | Q1 2014 | 0.741 |
| SanDisk Corp | SNDK US | Aft-mkt | Q4 2013 Earnings Release | Q4 2013 | 1.568 |
| Progressive Corp/The | PGR US | | Q4 2013 Earnings Release | Q4 2013 | 0.422 |
| Progressive Corp/The | PGR US | | Q4 2013 Earnings Release - December Sales | Q4 2013 | 0.422 |
