Showing posts with label WBA. Show all posts
Showing posts with label WBA. Show all posts

Tuesday, September 19, 2017

Morning Call 9/19

Barchart Morning Call

OVERNIGHT MARKETS AND NEWS
Dec E-mini S&Ps (ESZ17 +0.05%) this morning are up +0.10% and European stocks are up +0.03% after a gauge of German investor confidence rose for the first time in 4 months. Also, energy stocks are higher with Nov WTI crude oil (CLX17 +0.58%) up +0.93% after Iraqi Oil Minister Jabbar al-Luaibi said OPEC should cut its oil output by an additional 1% to help rebalance the global oil market. Gains in stocks were limited ahead of the start of the 2-day FOMC meeting today where the Fed is expected to set out a plan to reduce its $4.5 trillion balance sheet. Asian stocks settled mostly lower: Japan +1.96%, Hong Kong -0.38%, China -0.18%, Taiwan -0.52%, Australia -0.12%, Singapore -0.49%, South Korea -0.13%, India -0.07%. China's Shanghai Composite fell to a 2-week low as exporter stocks fell on trade concerns after U.S. Trade Representative Lighthizer said China's economic model represents an "unprecedented" threat to the world trading system that can't be addressed under current global rules. Japan's Nikkei Stock Index surged to a 2-year high, led by a rally in exporter stocks, after USD/JPY climbed to a fresh 1-1/2 month high, which improves the earnings prospects of exporters with the weaker yen.
The dollar index (DXY00 -0.20%) is down -0.20%. EUR/USD (^EURUSD) is up +0.32% at a 1-week high on the stronger than expected German Sep ZEW investor confidence. USD/JPY (^USDJPY) is down -0.04%.
Dec 10-year T-note prices (ZNZ17 +0.07%) are up +2 ticks.
The German Sep ZEW survey expectations of economic growth rose +7.0 to 17.0, stronger than expectations of +2.0 to 12.0.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) Aug housing starts (expected +1.7% to 1.175 million, Jul -4.8% to 1.155 million), (2) Aug import price index (expected +0.4% m/m and +2.2%, July +0.1% m/m and +1.5% y/y), (3) Q2 current account balance (expected -$112.4 billion, Q1 -$116.8 billion), (4) FOMC begins 2-day policy meeting, (5) EIA Weekly Petroleum Status Report.
Notable Russell 1000 earnings reports today include: FedEx (consensus $3.10) Adobe (1.01), Autozone (15.11), Bed Bath Beyond (0.95), Copart (0.31).
U.S. IPO's scheduled to price today: Krystal Biotech (KRYS), Despegar.com Corp (DESP), Celcuity LLC (CELC), Zai Lab (ZLAB), BEST Inc (BSTI).
Equity conferences this week: Stephens Bank CEO Forum on Mon-Tue, CECP CEO Investor Forum on Tue, Forum International Supply Chain Expo on Tue, J.P. Morgan U.S. All Stars Conference on Tue, Raymond James North America Equities Conference on Tue, D.A. Davidson Engineering & Construction Conference on Wed, Electronic Design Process Symposium on Thu.
OVERNIGHT U.S. STOCK MOVERS
Michael Kors (KORS -0.60%) was upgraded to 'Outperform' from 'Market Perform' at Oppenheimer with a price target of $55.
Tesla (TSLA +1.37%) slid over 1% in pre-market trading after it was initiated with an 'Underperform' at Jeffries with a price target of $280.
Nike (NKE -0.69%) was downgraded to 'Neutral' from 'Positive' at Susquehanna.
Acacia Communications (ACIA +2.57%) was initiated a new 'Buy' at MKM Partners with a 12-month price target of $64.
Walgreens Boots Alliance ({=WBA =}) was initiated a new 'Outperform' at RBC Capital Markets with a 12-month price target of $96
Quintiles IMS Holdings (Q +0.64%) was initiated a new 'Outperform' at RBC Capital Markets with a 12-month price target of $116.
Total System Services (TSS -0.49%) was downgraded to 'Hold' from 'Buy' at Stifel.
Watts Water (WTS +4.53%) was initiated a new 'Buy' at Oppenheimer with a 12-month price target of $72.
Quality Systems (QSII -0.88%) was initiated a new 'Underperform' at RBC Capital Markets with a price target of $12.
Beacon Roofing Supply (BECN +1.15%) slid almost 5% in after-hours trading after it announced an underwritten public offering of $300 million in shares of its common stock.
Mirati Therapeutics (MRTX -3.57%) gained almost 1% in after-hours trading after it was initiated a new 'Outperform' at Oppenheimer with an 18-month price target of $18.
Steelcase (SCS +0.70%) rose almost 4% in after-hours trading after it reported Q2 revenue of $775.6 million, better than consensus of $758.3 million.
Aldeyra Therapeutics (ALDX +2.25%) dropped 12% in after-hours trading after it announced an underwritten public offering of 2.7 million shares of common stock.
MARKET COMMENTS
Dec S&P 500 E-mini stock futures (ESZ17 +0.05%) this morning are up +2.50 points (+0.10%). Friday's closes: S&P 500 +0.15%, Dow Jones +0.28%, Nasdaq -0.11%. The S&P 500 on Monday climbed to a new record high and closed higher on carry-over support from a rally in European stocks to a 2-month high after the Bundesbank in its monthly report said, “the German economy may continue its path of strong expansion in Q3 of 2017." There was also strength in defense contractor stocks on signs of increased M&A activity after Northrop Grumman agreed to buy Orbital ATK for $7.8 billion. Stocks fell back from their best levels after the U.S. Sep NAHB housing market index fell -3 to 64, weaker than expectations of -1 to 67.
Dec 10-year T-note prices (ZNZ17 +0.07%) this morning are up +2 ticks. Friday's closes: TYZ7 -7.50, FVZ7 -3.25. Dec 10-year T-notes on Monday fell to a 1-month low and closed lower on negative carry-over from an increase in the German 10-year bund yield to a 1-month high and increased inflation expectations after the 10-year T-note breakeven inflation rate rose to a 4-month high.
The dollar index (DXY00 -0.20%) this morning is down -0.181 (-0.20%). EUR/USD (^EURUSD) is up +0.0038 (+0.32% at a 1-week high and USD/JPY (^USDJPY) fell back from a new 1-1/2 month high in overnight trade and is down -0.04 (-0.04%). Friday's closes: Dollar Index +0.164 (+0.18), EUR/USD +0.0009 (+0.08%), USD/JPY +0.74 (+0.67%). The dollar index on Monday closed higher on the rally in the S&P 500 to a new all-time high, which reduced safe-haven demand for the yen and sent USD/JPY up to a 1-1/2 month high. The dollar also found support on the rise in 10-year T-note yields to a 1-month high, which improves the dollar's interest rate differentials.
Nov crude oil (CLX17 +0.58%) this morning is up +47 cents (+0.93%) and Nov gasoline (RBX17 +0.28%) is up +0.0064 (+0.40%). Friday's closes: Nov WTI crude -0.09 (-0.18%), Nov gasoline -0.0048 (-0.30%). Nov crude oil and gasoline on Monday closed lower on a stronger dollar and on demand concerns as the refining maintenance season begins, which will reduce refinery demand for crude oil as refiners shut down for maintenance.
Metals prices this morning are higher with Dec gold (GCZ17 +0.02%) up +0.6 (+0.05%), Dec silver (SIZ17 +0.17%) +0.044 (+0.26%) and Dec copper (HGZ17 +0.32%) +0.009 (+0.29%). Friday's closes: Dec gold -14.4 (-1.09%), Dec silver -0.545(-3.08%), Dec copper +0.0200 (+0.68%). Metals on Monday settled mixed with Dec gold at a 2-week low and Dec silver at a 3-week low. Metals prices fell on a stronger dollar and on reduced safe-haven demand after the S&P 500 rose to a new record high. Copper closed higher after LME canceled warrants, a sign of demand, rose by +12,275 MT, the biggest increase in 3-months.
GLOBAL EVENT CALENDAR09/19/2017
Tuesday, Sep 19
US0830 ETAug housing starts expected +1.7% to 1.175 million, Jul -4.8% to 1.155 million. Aug building permits expected -0.8%to 1.220 million, Jul -3.5% to 1.230 million.
0830 ETAug import price index expected +0.4% m/m and +2.2%, July +0.1% m/m and +1.5% y/y. Aug import price index ex-petroleum expected +0.2%, July unchanged. Aug export price index expected +0.2% m/m, Jul +0.4% m/m and +0.8% y/y.
0830 ETQ2 current account balance expected -$112.4 billion, Q1 -$116.8 billion
1030 ETEIA Weekly Petroleum Status Report.
1030 ETFOMC begins 2-day policy meeting.
Wednesday, Sep 20
US0700 ETWeekly MBA mortgage applications, previous +9.9% with purchase sub-index +10.9% and refi sub-index +8.9%.
1000 ETAug existing home sales expected +0.4% to 5.46 million, Jul -1.3% to 5.44 million.
1030 ETEIA weekly Petroleum Status Report.
1400 ETFOMC announces policy decision; no change expected to 1.00%-1.25% fed funds target range but Fed may announce the start date of its balance sheet reduction program.
U.S. STOCK CALENDAR09/19/2017

NameTickerTimeDescriptionPeriodEstimate
AutoZone IncAZO USBef-mktQ4 2017 Earnings ReleaseQ4 1715.113
AutoZone IncAZO US10:00Q4 2017 Earnings CallQ4 17
CDW Corp/DECDW USAnnual General Meeting
Ameren CorpAEE USFixed Income Meeting
Humana IncHUM USInvestors Meeting
Equifax IncEFX USInvestor Meeting
Best Buy Co IncBBY US14:00Investor Day
Bed Bath & Beyond IncBBBY USAft-mktQ2 2018 Earnings ReleaseQ2 180.947
Copart IncCPRT USAft-mktQ4 2017 Earnings ReleaseQ4 170.308
Adobe Systems IncADBE US16:05Q3 2017 Earnings ReleaseQ3 171.007
FedEx CorpFDX US16:15Q1 2018 Earnings ReleaseQ1 183.1
Bed Bath & Beyond IncBBBY US17:00Q2 2018 Earnings CallQ2 18
FedEx CorpFDX US17:00Q1 2018 Earnings CallQ1 18
Adobe Systems IncADBE US17:00Q3 2017 Earnings CallQ3 17

Monday, February 6, 2017

MORNING CALL 2/6

Barchart Morning Call

OVERNIGHT MARKETS AND NEWS
Mar E-mini S&Ps (ESH17 -0.04%) are up +0.01% on positive carry-over from Friday's employment data that showed U.S. employers added the most jobs in four months. European stocks are down -0.19%, led by losses in automakers, after Bank of America-Merrill Lynch downgraded the sector to underweight. Another negative for European equities is political risks from France where French presidential candidate Marine Le Pen unveiled her plans to take France out of the EU should she be elected in April. Losses in European stocks were limited after German Dec factory orders posted their largest year-on-year increase in over 5 years. Asian stocks settled mostly higher: Japan +0.31%, Hong Kong +0.95%, China +0.54%, Taiwan +0.87%, Australia -0.11%, Singapore +0.49%, South Korea +0.24%, India +0.70%.
The dollar index (DXY00 +0.14%) is up +0.14%. EUR/USD (^EURUSD) is down -0.42%. USD/JPY (^USDJPY) is down -0.12%.
Mar 10-year T-note prices (ZNH17 +0.31%) are up +12 ticks as they garner support form a rally in 10-year German bunds which rallied to a 1-1/2 week high.
Eurozone Feb Sentix investor confidence fell -0.8 to 17.4, stronger than expectations of -1.4 to 16.8.
German Dec factory orders rose +8.1% y/y, stronger than expectations of +4.2% y/y and the largest year-on-year increase in 5-1/3 years.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) USDA weekly grain export inspections, (2) Philadelphia Fed President Patrick Harker (voter) speaks at a payment conference in San Diego.
Notable S&P 500 earnings reports today include: Tyson Foods (consensus $1.27), Lowes (0.63), Newell Brands (0.80), Sysco (0.54), Hasbro (1.28), Twenty-First Century Fox (0.49), FMC (0.88), Tesoro (-0.14), Macerich 1.16).
U.S. IPO's scheduled to price today: none.
Equity conferences: Credit Suisse Financial Services Forum on Tue-Wed, Cowen Aerospace/Defense & Industrials Conference on Wed-Thu.
OVERNIGHT U.S. STOCK MOVERS
American Airlines Group (AAL +0.43%) was upgraded to 'Market Perform' from 'Underperform' at Bernstein with a price target of $43.
Delta Air Lines (DAL +0.91%) was upgraded to 'Outperform' from 'Market Perform' at Bernstein with a price target of $61.
FedEx (FDX +1.95%) was upgraded to 'Outperform' from 'Market Perform' at Raymond James.
AutoNation (AN -3.86%) was downgraded to 'Hold' from 'Buy' at Evercore ISI.
Walgreens Boots Alliance (WBA -0.15%) was upgraded to 'Overweight' from 'Neutral' at Atlantic Equities with a 12-month target price of $95.
CVS Health Corp. (CVS +0.88%) was downgraded to 'Neutral' from 'Overweight' at Atlantic Equities with a 12-month target price of $84.
Barracuda Networks (CUDA +2.54%) was rated a new 'Buy' at Needham with a price target of $28.
Nvidia (NVDA -0.88%) was downgraded to 'Neutral' from 'Buy' at Roth Capital
Parexel International (PRXL -1.44%) was downgraded to 'Neutral' from 'Outperform' at Credit Suisse with a target price of $65.
CBS (CBS +0.02%) was upgraded to 'Overweight' from 'Neutral' at Atlantic Equities with a price target of $78.
U.S. Steel (X -3.07%) was upgraded to 'Buy' from 'Hold' at Argus with a price target of $39.
Lone Star boosted its stake in Edgewater Technology (EDGW -2.90%) to 6.2% from 1.4%.
Credit Acceptance Corp. (CACC +2.01%) slipped 2% in after-hours trading after the company received FTC civil investigative demand seeking information on car dealers using GPS Starter Interrupters on consumer vehicles.
Atwood Oceanics (ATW +4.37%) lost 1% in after-hours trading after it reported Q1 revenue of $157.6 million, below consensus of $159.4 million.
MARKET COMMENTS
Mar E-mini S&Ps (ESH17 -0.04%) this morning are little changed, up +0.25 of a point (+0.01%). Friday's closes: S&P 500 +0.73%, Dow Jones +0.94%, Nasdaq +0.27%. The S&P 500 on Friday closed higher on the +227,000 increase in U.S. Jan non-farm payrolls (stronger than expectations of +180,000), and the +1.3% increase in U.S. Dec factory orders (stronger than expectations of +0.5%). A negative factor was the +2.5% y/y increase in U.S. Jan average hourly earnings, weaker than expectations of +2.7% y/y.
Mar 10-year T-notes (ZNH17 +0.31%) this morning are up +12 ticks. Friday's closes: TYH7 -3.00, FVH7 -1.75. Mar 10-year T-notes on Friday fell back from a 1-1/2 week high and closed lower on the larger-than-expected increase in U.S. Jan non-farm payrolls and stronger-than-expected U.S. Dec factory orders reports that bolstered the case for additional Fed rate hikes. T-notes were boosted by increased safe-haven demand with the fairly sharp rally in stocks. T-notes found some underlying support from the Jan hourly earnings report of +2.5% y/y, weaker than expectations of +2.7% y/y.
The dollar index (DXY00 +0.14%) this morning is up +0.142 (+0.14%). EUR/USD (^EURUSD) is down -0.0045 (-0.42%). USD/JPY (^USDJPY) is down -0.13 (-0.12%). Friday's closes: Dollar index +0.078 (+0.08%), EUR/USD +0.0024 (+0.22%), USD/JPY -0.19 (-0.17%). The dollar index on Friday closed higher on the stronger-than-expected U.S. payroll and factory orders reports and the increase in U.S. T-note yields, which improved the dollar's interest rate differentials.
Mar WTI crude oil prices (CLH17 +0.22%) this morning are up +17 cents (+0.32%) and Mar gasoline (RBH17 +0.83%) is +0.0074 (+0.48%). Friday's closes: Mar crude +0.29 (+0.54%), Mar gasoline +0.0208 (+1.36%). Mar crude oil and gasoline on Friday closed higher on reduced output by OPEC as OPEC Jan crude production fell -840,000 bpd to 32.2 million bpd, a 14-month low. Crude oil prices were also boosted by increased geopolitical tensions after the U.S. imposed new sanctions on Iran for conducting ballistic missile tests. Crude oil prices were undercut by the Baker Hughes report that U.S. active oil rigs in the week ended Feb 3 rose by 17 rigs to a 1-1/4 year high of 583 rigs.

GLOBAL EVENT CALENDAR02/06/2017
Monday, Feb 6
US1100 ETUSDA weekly grain export inspections.
1630 ETPhiladelphia Fed President Patrick Harker (voter) speaks at a payment conference in San Diego.
Tuesday, Feb 7
US0830 ETDec trade balance expected -$45.0 billion, Nov -$45.2 billion.
1000 ETDec JOLTS job openings expected +47,000 to 5.569 million, Nov +71,000 to 5.522 million.
1300 ETTreasury auctions $24 billion of 3-year T-notes.
1500 ETDec consumer credit expected +$20.0 billion, Nov +$24.532 billion.
U.S. STOCK CALENDAR02/06/2017
CompanyTickerTimeEvent DescriptionPeriodEstimate
Loews CorpL USBf-mktQ4 2016 Earnings ReleaseQ4 20160.63
Newell Brands IncNWL USBf-mktQ4 2016 Earnings ReleaseQ4 20160.8
Sysco CorpSYY USBf-mktQ2 2017 Earnings ReleaseQ2 20170.542
Hasbro IncHAS US6:30Q4 2016 Earnings ReleaseQ4 20161.281
Fastenal CoFAST US7:00January 2017 Sales and Revenue Release2017
Tyson Foods IncTSN US7:30Q1 2017 Earnings ReleaseQ1 20171.268
Newell Brands IncNWL US8:30Q4 2016 Earnings CallQ4 2016
Hasbro IncHAS US8:30Q4 2016 Earnings CallQ4 2016
Tyson Foods IncTSN US9:00Q1 2017 Earnings CallQ1 2017
Sysco CorpSYY US10:00Q2 2017 Earnings CallQ2 2017
Loews CorpL US11:00Q4 2016 Earnings CallQ4 2016
Twenty-First Century Fox IncFOXA US16:00Q2 2017 Earnings ReleaseQ2 20170.49
Gap Inc/TheGPS US16:15January 2017 Sales and Revenue Release2017
Twenty-First Century Fox IncFOXA US16:30Q2 2017 Earnings CallQ2 2017
FMC CorpFMC USAft-mktQ4 2016 Earnings ReleaseQ4 20160.884
Tesoro CorpTSO USAft-mktQ4 2016 Earnings ReleaseQ4 2016-0.103
Macerich Co/TheMAC USAft-mktQ4 2016 Earnings ReleaseQ4 20161.16
Credicorp LtdBAP US18:00Q4 2016 Earnings ReleaseQ4 201610.375
Viacom IncVIAB USAnnual General Meeting