Morning Call 11/18

Barchart Morning Call

Barchart.com - Wed Oct 18, 6:42AM CDT

OVERNIGHT MARKETS AND NEWS

Dec E-mini S&Ps (ESZ17 +0.15%) this morning are up +0.16% at a new record nearest-futures high and European stocks are up +0.45% at a 5-month high. Optimism that the Trump administration will pass a tax reform plan continues to underpin U.S. equity prices, while speculation that the ECB will remain accommodative for longer in lifting European stocks. An introductory speech by ECB President Draghi today at a conference in Frankfort shed no light on ECB plans, while the markets speculate that President Trump will insert a hawk to be the next Fed Chair. A person familiar with the process said that President Trump will name his choice for the next Fed Chair before he leaves Nov 3 on an 11-day trip to Asia and Hawaii. Asian stocks settled mostly higher: Japan +0.13%, Hong Kong +0.05%, China +0.29%, Taiwan -0.03%, Australia +0.01%, Singapore closed for holiday, South Korea -0.03%, India -0.08%. Chinese stocks gained ahead of data tomorrow on China GDP, industrial production and retail sales. Japan's Nikkei Stock Index rose to a new 20-3/4 year high as polls suggest Prime Minister Abe's ruling party may show its best election result in more than three decades after this Sunday's elections in Japan. Abe's Liberal Democratic Party is projected to win as many as 303 seats, close to 2/3 of the 465 seats up for election. That would be the strongest showing since 304 seats were won in the 1986 election.

The dollar index (DXY00 +0.21%) is up +0.20% at a 1-week high on hawkish comments from San Francisco Fed President Williams and Philadelphia Fed President Harker who both look for Fed rate hike at the Dec FOMC meeting. EUR/USD (^EURUSD) is down -0.13% at a 1-week low. USD/JPY (^USDJPY) is up +0.52% at a 1-week high.

Dec 10-year T-note prices (ZNZ17 -0.22%) are down -10 ticks.

San Francisco Fed President Williams said the U.S. economy is stronger than in looks and that inflation softness in overstated. He said the Fed should aim to raise interest rates at the Dec FOMC meeting and three more times next year.

Philadelphia Fed President Harker said he sees one more rate increase in 2017 and notes that high prices for equities and other assets could be an argument for continued, steady pace for rate increases and "that's why I would like to prudently move up to the neutral real rate as quickly as possible."

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly MBA mortgage applications (previous -2.1% with purchase sub-index -0.1% and refi sub-index -4.2%), (2) New York Fed President William Dudley (voter) and Dallas Fed President Robert Kaplan (voter) take part in a moderated discussion on economic development, (3) Sep housing starts (expected -0.4% to 1.175 million, Aug -0.8% to 1.18 million), (4) Fed Beige Book, (5) EIA weekly Petroleum Status Report.

Notable S&P 500 earnings reports today include: American Express (consensus $1.48), United Rentals (3.03), M&T Bank (2.04), United Continental (2.19), SL Green Realty (1.56), Northern Trust (1.12), Crown Castle (1.00), US Bancorp (0.88), Abbott Labs (0.65), EBay (0.48), Kinder Morgan (0.15).

U.S. IPO's scheduled to price today: MongoDB (MDB), RumbleOn (RMBL)

Equity conferences this week: International Association for the Study of Lung Cancer World Conference - Abstra on Mon-Wed, BIO Investor Forum on Tue, METALCON Conference on Thu, SAP Retail Executive Forum on Thu, American Association for the Study of Liver Diseases Liver Meeting on Fri.

OVERNIGHT U.S. STOCK MOVERS

Expedia (EXPE +0.44%) was upgraded to 'Buy' from 'Neutral' at Redburn.

Grainger (GWW +12.65%) was upgraded to 'Outperform' from 'Market Perform' at Oppenheimer with an 18-month target price of $245.

Chipotle Mexican Grill (CMG +2.78%) fell nearly 3% in pre-market trading after it was downgraded to 'Underperform' from 'Neutral' at Bank of America/Merrill Lynch.

WP Carey (WPC -0.43%) was initiated as an 'Outperform' at Baird with a 12-month target price of $77.

Allergan (AGN -0.32%) was downgraded to 'Hold' from 'Buy' at Edward Jones,

International Business Machines (IBM -0.20%) jumped nearly 5% in after-hours trading after it reported Q3 operating EPS of $3.30, better than consensus of $3.28, and said it sees a $2.8 billion to $2.9 billion increase in Q4 sales from Q3.

Cree (CREE +0.20%) lost nearly 3% in after-hours trading after it forecast Q2 revenue of $340 million-$360 million, below consensus of $369 million.

Select Comfort (SCSS -0.56%) fell over 4% in after-hours trading after it reported Q3 EPS of 62 cents, weaker than consensus of 68 cents, and then said it sees full-year EPS of $1.30-$1.45, the midpoint below consensus of $1.39.

Hi-Crush Partners LP (HCLP +2.87%) jumped nearly 12% in after-hours trading when it announced that it will resume a quarterly cash distribution of 15 cents per share and its board said it authorized a stock buyback program of up to $100 million.

Inovio Pharmaceuticals (INO +0.48%) rose nearly 3% in after-hours trading after it was initiated as an 'Outperform' at RBC Capital Markets with a 12-month target price of $11.

Akari Therapeutics LLC (AKTX -1.23%) plunged 15% in after-hours trading after it was said to offer $17 million in company shares at $5.00-$5.25 each, a 17.97%-21.88% discount to Tuesday's close.

MobileIron (MOBL -2.56%) slumped 10% in after-hours trading after it announced that CEO Barry Mainz will step down effective immediately amid a "mutual decision," and after the company reported preliminary Q3 revenue of $42 million-$43 million, below a July 27 forecast of $44 million-$46 million.

MARKET COMMENTS

Dec S&P 500 E-mini stock futures (ESZ17 +0.15%) this morning are up +4.00 points (+0.16%) at a fresh record nearest-futures high. Tuesday's closes: S&P 500 +0.07%, Dow Jones +0.18%, Nasdaq +0.13%. The S&P 500 on Tuesday eked out a new record high and closed slightly higher on the unexpected +4 point increase in the U.S. Oct NAHB housing market index to 68, stronger than expectations of unchanged at 64 and a 5-month high. There was also strength in health-care stocks after Republican Senator Alexander and Democratic Senator Murray said they have the "basic outlines" of a bipartisan deal to resume federal subsidies to health insurers for 2 years. Stocks were undercut by news that U.S. Sep import prices rose +0.7% m/m, stronger than expectations of +0.6% m/m and the fastest pace of increase in 15 months, which bolsters the case for a Fed rate hike in Dec.

Dec 10-year T-note prices (ZNZ17 -0.22%) this morning are down -10 ticks. Tuesday's closes: TYZ7 +0.50, FVZ7 unch. Dec 10-year T-notes on Tuesday closed little changed. T-note prices were supported by the the weaker-than-expected U.S. Sep manufacturing production report and by the decline in the 10-year T-note breakeven inflation expectations rate to a 3-week low. T-note prices were undercut by the stronger-than expected U.S. Sep import price report of +0.7% m/m, the most in 15 months, and by the unexpected 4-point increase in the U.S. Oct NAHB housing market index to a 5-month high.

The dollar index (DXY00 +0.21%) this morning is up +0.183 (+0.20%) at a 1-week high. EUR/USD (^EURUSD) is down -0.0015 (-0.13%) at a 1-week low and USD/JPY (^USDJPY) is up +0.58 (+0.52%) at a 1-week high. Tuesday's closes: Dollar Index +0.174 (+0.19%), EUR/USD -0.0030 (-0.25%), USD/JPY +0.01 (+0.01%). The dollar index on Tuesday closed higher on speculation that President Trump may be leaning toward John Taylor as the next Fed chair, who is thought to be hawkish. There was also weakness in EUR/USD which fell to a 1-week low after the German Oct ZEW came in lower than expected and after Spain cut its 2018 GDP estimates.

Nov crude oil (CLX17 +0.31%) this morning is up +20 cents (+0.39%) and Nov gasoline (RBX17 +0.50%) is +0.0083 (+0.51%). Tuesday's closes: Nov WTI crude +0.01 (+0.02%), Nov gasoline +0.0132 (+0.82%). Nov crude oil and gasoline on Tuesday closed higher on expectations for Wednesday's EIA crude inventories to fall -3.0 million bbl and the increase in the crack spread to a 1-week high, which gives incentive for refineries to purchase more crude to refine into gasoline. Crude oil prices were undercut by a stronger dollar and by reduced tensions between Iraq and Kurdistan after Sky News reported that the Kurdish Peshmerga agreed to return to Iraq's 2003 border demarcations, which reduces the likelihood of disruptions of crude supplies from Iraq.

Metals prices this morning are lower with Dec gold (GCZ17 -0.35%) -5.5 (-0.43%) at a 1-week low, Dec silver (SIZ17-0.36%) -0.081 (-0.48%) at a 1-week low and Dec copper (HGZ17 -0.25%) -0.007 (-0.20%). Tuesday's closes: Dec gold -16.8(-1.29%), Dec silver -0.328 (-1.89%), Dec copper -0.0435 (-1.34%). Metals on Tuesday closed lower with Dec gold and Dec silver at 1-week lows. Metals prices were undercut by a stronger dollar and by speculation that President Trump is leaning toward John Taylor as the next Fed chair, who is thought to be a monetary policy hawk.

GLOBAL EVENT CALENDAR10/18/2017

		Wednesday, Oct 18
US	0700 ET	Weekly MBA mortgage applications, previous -2.1% with purchase sub-index -0.1% and refi sub-index -4.2%.
	0800 ET	New York Fed President William Dudley (voter) and Dallas Fed President Robert Kaplan (voter) take part in a moderated discussion on economic development.
	0830 ET	Sep housing starts expected -0.4% to 1.175 million, Aug -0.8% to 1.18 million. Sep building permits expected -2.1%to 1.245 million, Aug +3.4% to 1.272 million.
	1030 ET	EIA weekly Petroleum Status Report.
	1400 ET	Fed Beige Book.
		Thursday, Oct 19
US	0830 ET	Weekly initial unemployment claims expected -3,000 to 240,000, previous -15,000 to 243,000. Weekly continuing claims expected +1,000 to 1.890 million, previous -32,000 to 1.889 million.
	0830 ET	Oct Philadelphia Fed business outlook survey expected -1.8 to 22.0, Sep +4.9 to 23.8.
	0830 ET	USDA weekly Export Sales.
	1000 ET	Sep leading indicators expected +0.1%, Aug +0.4%.
	1100 ET	Treasury announces amount of 2-year T-notes (previous $26 billion), 2-year floating-rate notes (previous $13 billion), 5-year T-notes (previous $34 billion) and 7-year T-notes (previous $28 billion) to be auctioned Oct 24-26
	1300 ET	Treasury auctions $5 billion of 30-year TIPS.

U.S. STOCK CALENDAR10/18/2017

Name	Ticker	Time	Description	Period	Estimate
M&T Bank Corp	MTB US	Bef-mkt	Q3 2017 Earnings Release	Q3 17	2.404
US Bancorp	USB US	Bef-mkt	Q3 2017 Earnings Release	Q3 17	0.881
Northern Trust Corp	NTRS US	07:30	Q3 2017 Earnings Release	Q3 17	1.123
Abbott Laboratories	ABT US	07:30	Q3 2017 Earnings Release	Q3 17	0.653
Navient Corp	NAVI US	08:00	Q3 2017 Earnings Call	Q3 17
US Bancorp	USB US	09:00	Q3 2017 Earnings Call	Q3 17
Abbott Laboratories	ABT US	09:00	Q3 2017 Earnings Call	Q3 17
M&T Bank Corp	MTB US	11:00	Q3 2017 Earnings Call	Q3 17
Northern Trust Corp	NTRS US	12:00	Q3 2017 Earnings Call	Q3 17
Seagate Technology PLC	STX US		Annual General Meeting
SL Green Realty Corp	SLG US	Aft-mkt	Q3 2017 Earnings Release	Q3 17	1.56
United Continental Holdings Inc	UAL US	Aft-mkt	Q3 2017 Earnings Release	Q3 17	2.189
Hewlett Packard Enterprise Co	HPE US	16:00	Analyst Meeting
Kinder Morgan Inc/DE	KMI US	Aft-mkt	Q3 2017 Earnings Release	Q3 17	0.146
American Express Co	AXP US	16:05	Q3 2017 Earnings Release	Q3 17	1.48
eBay Inc	EBAY US	16:15	Q3 2017 Earnings Release	Q3 17	0.48
United Rentals Inc	URI US	16:15	Q3 2017 Earnings Release	Q3 17	3.025
Kinder Morgan Inc/DE	KMI US	16:30	Q3 2017 Earnings Call	Q3 17
American Express Co	AXP US	17:00	Q3 2017 Earnings Call	Q3 17
eBay Inc	EBAY US	17:00	Q3 2017 Earnings Call	Q3 17
Adobe Systems Inc	ADBE US	17:00	Analyst Meeting
Crown Castle International Corp	CCI US	17:00	Q3 2017 Earnings Release	Q3 17	0.995

BARCHART MORNING CALL 3/3

BARCHART MORNING CALL

Monday, March 3rd, 2014View Older Reports

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OVERNIGHT MARKETS AND NEWS

March E-mini S&Ps (ESH14 -1.05%) this morning are down -1.10% and European stocks are down sharply by -2.69% after Russian troops seized control of Ukraine's Crimea region. The situation threatens to escalate after Russian servicemen attacked Ukrainian army units in the last 24 hours, according to Ukraine's border guard service. U.S. Secretary of State Kerry is traveling to Kiev after discussing sanctions against Russia, and European Union foreign ministers will hold an emergency meeting. The Russian ruble tumbled to a record low, which prompted Bank Rossii, Russia's central bank, to unexpectedly hike the 1-week auction rate, the benchmark rate introduced in Sep, by 150 bp to 7.00%. Asian stocks closed mostly lower: Japan -1.27%, Hong Kong -1.47%, China +0.52%, Taiwan -0.44%, Australia -0.38%, Singapore -0.75%, South Korea -0.82%, India -0.82%. Commodity prices are sharply higher as escalating tension in Ukraine fuel concern that energy and agricultural supplies will be disrupted. Apr crude oil (CLJ14 +2.00%) is up +1.94% at a 5-1/4 month high. Apr gasoline (RBJ14 +1.95%) is up +1.97%. Apr gold (GCJ14 +1.82%) is up +1.73% at a 4-month high on increased safe-haven demand from the Ukraine crisis. May copper (HGK14 -0.71%) is down -0.86% at a 3-1/2 month low after manufacturing activity in China weakened to its slowest pace in 8-months. Agriculture prices are sharply higher with May corn up +3.24% at a 5-3/4 month high and May wheat up +5.35% at a 2-1/2 month high. The dollar index (DXY00 +0.27%) is up +0.24%. EUR/USD (^EURUSD) is down -0.29%. USD/JPY (^USDJPY) is down -0.53%. June T-note prices (ZNM14 +0.36%) are up +16 ticks on surge in safe-haven demand as global stocks slump on the Ukraine crisis.
The China Feb manufacturing PMI fell -0.3 to 50.2, a smaller decline than expectations of -0.4 to 50.1, but still the slowest pace of expansion in 8-months. The Feb non-manufacturing PMI rose +1.6 to 55.0.
The German Feb PMI manufacturing index was revised up to 54.8 from the originally reported 54.7.
The Eurozone Feb manufacturing PMI index was revised higher to 53.2 from the originally reported 53.0.
The UK Feb PMI manufacturing index rose +0.3 to 56.9 from an upward revised 56.6 in Jan, a faster pace of expansion than expectations of +0.1 to 56.8.
UK Jan mortgage approvals rose 76,900, more than expectations of 74,500 and the most in 6-years.
UK Jan net consumer credit rose +0.7 billion pounds, right on expectations.

U.S. STOCK PREVIEW

Today’s Feb ISM manufacturing index is expected to show a recovery of +0.7 points to 52.0 after the sharp -5.2 point drop to 51.3 seen in January. Today’s Feb total vehicle sales report is expected to improve to 15.40 million from 15.16 million in January. Today’s Jan personal income and consumption report is expected to be modest and show increases of +0.2% and +0.1%, respectively. Today’s Jan PCE deflator is expected to be unchanged from December at +1.1% y/y. Meanwhile, the Jan core PCE deflator is expected to ease to +1.1% y/y from +1.2% in December. There are 8 of the Russell 1000 companies that report earnins today: Nu Skin Enterprises (consensus $2.01), WP Carey (0.79), Ascena Retail Group (0.21), MBIA (0.17), McDermott International (0.16), URS Corp (0.18), Rockwood Holdings (0.32), Stratasys (0.49).
Equity conferences this week include: Morgan Stanley Utilities Conference on Mon, Citi Korea Investor Conference on Mon, JMP Securities Technology Research Conference on Mon-Tue,
Morgan Stanley Technology, Media & Telecom Conference on Mon-Thu, Citi Global Property CEO Conference on Mon-Wed, Cowen & Co. Healthcare Conference on Mon-Wed, Raymond James Institutional Investor Conference on Mon-Wed, Credit Suisse Healthcare Conference on Tue, IHS Energy CERAWeek Conference on Tue, UBS Natural Gas Electric Power and MLP Conference, Morgan Stanley European Medtech & Services Conference on Tue-Wed, Canadian Energy Research Institure (CERI) National Gas Conference on Tue, Pacific Crest Emerging Tech Summit conference on Wed, ISI Enterprise Infrastructure Conference on Wed, Mitsubishi Seattle Consumer Conference on Wed, Seattle Consumer Conference on Wed, Bank of America Merrill Lynch Refining Conference on Thu, and Jefferies Industrial Leaders Day on Thu.

OVERNIGHT U.S. STOCK MOVERS

Autodesk (ADSK -3.32%) was downgraded to 'Sell' from 'Neutral' at Citigroup.
Superior Energy (SPN +2.00%) was downgraded to 'Neutral' from 'Buy' at Guggenheim.
Darden (DRI +2.53%) lowered guidance on Q3 EPS to 82 cents, below consensus of 93 cents, citing severe winter weather that undercut restaurant sales.
Tyco (TYC -0.66%) said it will sell its security business in South Korea to Carlyle Group (CG +0.58%) for $1.93 billion.
Intuit INTU=}) was upgraded to 'Buy' from 'Neutral' at Citigroup.
U.S. Cellular (USM -3.81%) and Telephone and Data (TDS -2.36%) were both upgraded to 'Overweight' from 'Neutral' at JPMorgan.
Magna (MGA +2.21%) reported Q4 EPS of $2.03, well above consensus of $1.54.
Bloomberg reported that Las Vegas Sands (LVS +0.14%) said customer data was stolen recently in a cyber-attack on systems at its Pennsylvania property.
Raytheon (RTN +0.33%) was awarded $655.41 million government contract for two PATRIOT fire units and associated initial spares for the military of Kuwait.
In a regulatory filing, billionare investor Carl Icahn disclosed the purchase of an additional 33,515 shares of Herbalife (HLF -1.01%) .
VA Partners reported a 6.6% stake in Dresser-Rand (DRC +0.06%) .
Cooper Tire (CTB +0.08%) reported Q3 EPS of 0 cents, well below consensus of 38 cents, as the company said there was unusual items related to the terminated merger agreement with Apollo Tyres.
Moody's Investors Service raised its outlook on Germany's Aaa government bond rating to stable from negative.
Michael Weiss reported a 15.0% stake in Coronado (CNDO -3.73%) .
River Road Asset reported a 9.2% stake in Miller Energy (MILL +0.73%) .

MARKET COMMENTS

Mar E-mini S&Ps (ESH14 -1.05%) this morning are down sharply by -20.50 points (-1.10%) as escalating tensions in Ukraine prompts a sell-off in global stocks. The S&P 500 on Friday opened lower after U.S. Q4 GDP was revised lower to +2.4% from +3.2%, which was a slightly larger decline than expectations of +2.5%. Stocks recovered and rallied to a fresh record high and closed higher, however, on bullish factors that included (1) the unexpected +0.2 point rise in the Chicago Feb PMI that to 59.8, better than expectations of -3.2 to 56.4, and (2) the +0.4 point increase in the final-Feb University of Michigan U.S. consumer confidence index to 81.6, stronger than expectations of unch at 81.2. Closes: S&P 500 +0.49%, Dow Jones +0.46%, Nasdaq 100 +0.63%.
Jun 10-year T-notes (ZNM14 +0.36%) this morning are up +16 ticks at a 1-month high. Jun 10-year T-note futures prices Friday fell back from a 1-month high and closed lower. Bearish factors included (1) signs of economic growth after the unexpected increases in the Feb Chicago PMI and the U.S. Feb University of Michigan consumer confidence, and (2) the rally in the S&P 500 to a record high, which reduced safe-haven demand for T-notes. Closes: TYM4 -7.00, FVM4 -3.75.
The dollar index (DXY00 +0.27%) this morning is up +0.192 (+0.24%). EUR/USD (^EURUSD) is down -0.004 (-0.29%). USD/JPY (^USDJPY) is down -0.54 (-0.53%). The dollar index on Friday fell to a 2-month low and closed lower. Negative factors included (1) the rally in the S&P 500 to a record high, which reduced safe-haven demand for the dollar, and (2) strength in EUR/USD, which rallied to a 2-month high after the Feb Eurozone CPI estimate of +0.8% y/y was higher than expectations of +0.7% y/y and dampened speculation the ECB will expand its stimulus measures when it meets on Thursday. Closes: Dollar index -0.594 (-0.74%), EUR/USD +0.00912 (+0.67%), USD/JPY -0.384 (-0.38%).
Apr WTI crude oil (CLJ14 +2.00%) this morning is up +$1.99 a barrel (+1.94%) at a 5-1/4 month high and Apr gasoline (RBJ14 +1.95%) is up +0.0588 (+1.97%). Apr crude and gasoline prices Friday closed higher. Bullish factors included (1) the slide in the dollar index to a 2-month low, (2) the unexpected increase in the Feb Chicago PMI, and (3) the unexpected increase in the U.S. Feb University of Michigan consumer confidence. Gains were limited after U.S. Q4 GDP was revised lower than expected, a sign of weaker energy demand. Closes: CLJ4 +0.19 (+0.19%), RBJ4 +0.0169 (+0.57%).

GLOBAL EVENT CALENDAR03/03/2014

US	0830 ET	Jan personal spending expected +0.1%, Dec +0.4%. Jan personal income expected +0.2%, Dec unch. Jan PCE deflator expected +0.1% m/m and +1.1% y/y, Dec +0.2% m/m and +1/1% y/y. Jan PCE core deflator expected +0.1% m/m and +1.1% y/y, Dec +0.1% m/m and +1.2% y/y.
	1000 ET	Feb ISM manufacturing index expected +0.7 to 52.0, Jan -5.2 to 51.3. Feb ISM prices paid expected -3.1 to 57.4, Jan +7.0 to 60.5. Feb ISM new orders sub-index, Jan -13.2 to 51.2.
	1000 ET	Jan construction spending expected -0.5% m/m, Dec +0.1% m/m.
	1100 ET	USDA weekly grain export inspections.
	n/a	Feb total vehicle sales expected 15.40 million, Jan 15.16 million. Feb domestic vehicle sales expected 11.90 million, Jan 11.94 million.
JPN	0000 ET	Japan Feb vehicle sales, Jan +27.5% y/y.
	2030 ET	Japan Jan labor cash earnings expected +0.3% y/y, Dec +0.5% y/y.
GER	0355 ET	Revised German Feb PMI manufacturing, previous 54.7.
EUR	0400 ET	Revised Eurozone Feb PMI manufacturing, previous 53.0.
	0900 ET	ECB President Mario Draghi speaks at the Quarterly Hearing before the Committee on Economic and Monetary Affairs of the European Parliament.
UK	0430 ET	UK Feb PMI manufacturing expected +0.3 to 57.0, Jan 56.7.
	0430 ET	UK Jan net consumer credit expected +0.7 billion pounds, Dec +0.6 billion pounds.
	0430 ET	UK Jan mortgage approvals expected 74,500, Dec 71,600.
	0430 ET	UK Jan M4 money supply, Dec -1.4% m/m and +0.2% y/y.

U.S. STOCK CALENDAR03/03/2014

Company Name	Ticker	Time	Event Description	Period	Estimate
Nu Skin Enterprises Inc	NUS US	3/3/2014	Q4 2013 Earnings Release	Q4 2013	2.012
WP Carey Inc	WPC US	3/3/2014	Q4 2013 Earnings Release	Q4 2013	0.79
BioMarin Pharmaceutical Inc	BMRN US	3/3/2014	Q4 2013 Earnings Call	Q4 2013
Stratasys Ltd	SSYS US	3/3/2014	Q4 2013 Earnings Call	Q4 2013
Ford Motor Co	F US	3/3/2014	February 2014 Sales and Revenue Release	2014
Ford Motor Co	F US	3/3/2014	February 2014 Sales and Revenue Call	2014
Rockwood Holdings Inc	ROC US	3/3/2014	Q4 2013 Earnings Call	Q4 2013
Nu Skin Enterprises Inc	NUS US	3/3/2014	Q4 2013 Earnings Call	Q4 2013
WP Carey Inc	WPC US	3/3/2014	Q4 2013 Earnings Call	Q4 2013
Ascena Retail Group Inc	ASNA US	3/3/2014	Q2 2014 Earnings Release	Q2 2014	0.213
Ascena Retail Group Inc	ASNA US	3/3/2014	Q2 2014 Earnings Call	Q2 2014
McDermott International Inc	MDR US	3/3/2014	Q4 2013 Earnings Call	Q4 2013
URS Corp	URS US	3/3/2014	Q4 2013 Earnings Call	Q4 2013
MBIA Inc	MBI US	3/3/2014	Q4 2013 Earnings Release	Q4 2013	0.17
McDermott International Inc	MDR US	3/3/2014	Q4 2013 Earnings Release	Q4 2013	0.163
URS Corp	URS US	3/3/2014	Q4 2013 Earnings Release	Q4 2013	0.175
Rockwood Holdings Inc	ROC US	3/3/2014	Q4 2013 Earnings Release	Q4 2013	0.321
Stratasys Ltd	SSYS US	3/3/2014	Q4 2013 Earnings Release	Q4 2013	0.494

Barchart Morning Call 7/11

BARCHART MORNING CALL

Thursday, July 11th, 2013

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OVERNIGHT MARKETS AND NEWS

September E-mini S&Ps (ESU13 +1.15%) this morning are up +0.97% at a 1-1/2 month high and European stocks are up +0.90%. Asian stocks closed higher: Japan +0.39%, Hong Kong +2.55%, China +4.61%, Taiwan +2.10%, Australia +1.31%, Singapore +1.91%, South Korea +3.24%, India +1.98%. Global stock and bond markets surged after Fed Chairman Bernanke, in a speech delivered after the U.S. markets had closed Wednesday, said that low inflation and high unemployment mean the Fed needs to continue with its stimulus measures. Commodity prices are mostly higher. Aug crude oil (CLQ13 -0.54%) is down -0.64% as it fell back from a 15-month high. Aug gasoline (RBQ13 -0.85%) is down -0.95%, Aug gold (GCQ13 +2.69%) is up +2.83% at a 2-week high, and Sep copper (HGU13 +3.09%) is up +3.02% at a 3-week high. Agricultural and livestock prices are mostly higher ahead of the USDA's monthly WASDE report later this morning. The dollar index (DXY00 -1.26%) plunged -1.30% and is at a 2-week low after Fed Chairman Bernanke said that it's too early to taper QE3. EUR/USD (^EURUSD) is up +0.65% at a 2-1/2 week high and USD/JPY (^USDJPY) is down -0.43%. September T-note prices (ZNU13 +0.85%) are up sharply by 1-02/32 points after Fed Chairman Bernanke said he backed continued bond buying.
In its monthly bulletin for July, the ECB said that its statement last week that it is committed to keep rates low for an extended period of time uses a "flexible horizon" and will depend on the Eurozone's economic performance.
German Jun wholesale prices fell -0.4% m/m, the fourth consecutive monthly decline, and rose +0.7% y/y.
In a statement following its 2-day policy meeting, the BOJ raised its outlook on the Japanese economy for the seventh straight month when it said Japan's economy "is starting to recover moderately." That was the first time the BOJ has used the word "recovery" in its assessment of the Japanese economy since Jan 2011.
Japan May machine orders surged +10.5% m/m and +16.5% y/y, the biggest annual increase in 1-3/4 years. The report was stronger than expectations of +1.9% m/m and +3.3% y/y.

U.S. STOCK PREVIEW

The Treasury today will sell $13 billion in 10-year T-bonds, concluding this week's $66 billion package of 3-year, 10-year and 30-year securities. Today’s weekly initial unemployment claims report is expected to show a small decline of -3,000 to 340,000, adding to last week’s decline of -5,000 to 343,000. Meanwhile, today’s continuing claims report is expected to show an increase of +22,000 to 2.955 million, reversing about one-half of last week’s decline of -54,000 to 2.933 million. There are two of the Russell 1000 companies that report earnings today: Progressive Corp (consensus $0.41), and Commerce Bancshares (0.71).

OVERNIGHT U.S. STOCK MOVERS

Viacom (VIAB +1.55%) was upgraded to "Market Perform" from "Underperform" at Bernstein.
Family Dollar (FDO +7.11%) was downgraded to "Equal Weight" from "Overweight" at Barclays.
The NY Post reported that Verizon Wireless, a joint venture between Verizon (VZ -0.82%) and Vodafone (VOD -0.10%) , could end up owing Apple (AAPL -0.38%) as much as $14 billion in purchase commitments if the mobile carrier fails to sell an agreed number of iPhones.
Wynn Resorts (WYNN +0.54%) was downgraded to "Underweight" from "Equal Weight" at Morgan Stanley.
Hess Corp. (HES +0.23%) was upgraded to "Overweight" from "Neutral" at JPMorgan.
New York Times (NYT -1.11%) was downgraded to "Equal Weight" from "Overweight" at Barclays.
Analog Devices (ADI +1.02%) was upgraded to "Buy" from "Hold" at Jefferies.
KB Home (KBH -2.81%) was upgraded to "Buy" from "Fair Value" at CRT Capital.
Diamond Offshore (DO -0.04%) was upgraded to "Market Perform" from "Underperform" at BMO Capital.
Transocean (RIG -0.35%) was downgraded to "Market Perform" from "Outperform" at BMO Capital.
Worldwide PC shipments dropped to 76 million units in Q2, a 10.9% decrease from the same period last year, according to preliminary results by Gartner. This marks the fifth consecutive quarter of declining shipments, which is the longest duration of decline in the PC market’s history.
Fed Chairman Bernanke who was speaking at an event late Wednesday in Cambridge, MA. said "inflation, jobs indicate accomodative policy needed" and that "a rate increase won't be automatic when jobless rate hits the Fed's target."
Yum! Brands (YUM -0.88%) reported Q2 EPS ex-items of 56 cents, better than consensus of 54 cents, although it said its June same-store-sales for its China division were down approx 10%.
PriceSmart (PSMT -1.80%) fell nearly 4% in after-hours trading after it reported Q3 EPS of 61 cents, weaker than consensus of 64 cents.
Walgreens (WAG +3.01%) increased its quarterly dividend from 27.5 cents to 31.5 cents per share.

MARKET COMMENTS

Sep E-mini S&Ps (ESU13 +1.15%) this morning are up sharply by +16.00 points (+0.97%) after Fed Chairman Bernanke said he backs sustained stimulus. The U.S. stock market on Wednesday opened lower on concerns about the Chinese economy after China Jun exports unexpectedly fell -3.1% y/y, the biggest decline in 3-1/2 years. However, prices moved higher after the Jun 18-19 FOMC meeting minutes showed many members wanted to see further progress in the labor market before they start to taper QE3. Closes: S&P 500 +0.02%, Dow Jones -0.06%, Nasdaq 100 +0.55%.
Sep 10-year T-notes (ZNU13 +0.85%) this morning are up sharply by +1-02/32 points after Fed Chairman Bernanke said he favors continued bond buying. Sep 10-year T-note prices on Wednesday closed lower on (1) reduced safe-haven demand as stocks rallied, and (2) weak demand for the Treasury’s $21 billion 10-year T-note auction that had a bid-to-cover ratio of 2.57, weaker than the 12-auction average of 2.87. Closes: TYU3 -7.0, FVU3 -3.50.

The dollar index (DXY00 -1.26%) this morning is down -1.089 (-1.30%) to a 2-week low on signs the Fed favors maintaining its dollar-negative asset purchases. EUR/USD (^EURUSD) is up +0.0084 (+0.65%) at a 2-1/2 week high. USD/JPY (^USDJPY) is down -0.43 (-0.43%). The dollar index on Wednesday closed lower after the Jun 18-19 FOMC meeting minutes indicated Fed members wanted more evidence of economic strength before tapering QE3. EUR/USD rebounded after the ECB issued a statement saying that Tuesday’s comments from ECB Executive Board member Asmussen that interest rates will stay low for an extended period “beyond 12 months” was not intended to give guidance on rates for an exact period. Closes: Dollar index -0.539 (-0.64%), EUR/USD +0.01949 (+1.53%), USD/JPY -1.773 (-1.75%).
Aug WTI crude oil (CLQ13 -0.54%) this morning is down -68 cents a barrel (-0.64%) and Aug gasoline (RBQ13 -0.85%) is down -2.86 cents per gallon (-0.95%). Crude oil and gasoline prices on Wednesday rallied sharply with crude at a 14-month high and gasoline at a 3-month high. Bullish factors include (1) the -9.87 million bbl plunge in weekly EIA crude inventories, more than three times expectations of a -3.2 million bbl draw), (2) the -2.69 million bbl decline in inventories at Cushing, the delivery point of WTI futures, and (3) the fall in weekly EIA gasoline inventories (-2.634 million bbl vs. expectations of +1.0 million bbl). Crude oil prices ignored the +1.8% increase in U.S. crude production to a new 21-year high of 7.4 million bpd in the week ended July 5. Closes: CLQ3 +2.99 (+2.89%), RBQ3 +0.0889 (+3.04%).

GLOBAL EVENT CALENDAR07/11/2013

US	0830 ET	Weekly initial unemployment claims expected -3,000 to 340,000, previous -5,000 to 343,000. Weekly continuing claims expected +22,000 to 2.955 mln, previous -54,000 to 2.933 mln.
	0830 ET	Jun import price index expected unch m/m and +0.4% y/y, May -0.6% m/m and -1.9% y/y.
	0830 ET	USDA weekly Export Sales.
	1100 ET	Treasury announces amount of 10-year TIPS to be auctioned July 18 (previous $13 billion).
	1200 ET	July WASDE crop production report.
	1300 ET	Treasury auctions $13 billion in 30-year T-bonds.
	1400 ET	Jun monthly budget statement expected +$100.0 billion, May -$138.732 billion..
GER	0200 ET	German Jun wholesale price index, May -0.4% m/m and -0.1% y/y.
EUR	0400 ET	ECB publishes monthly economic report.
JPN	n/a	BOJ announces monetary policy decision after 2-day meeting.

U.S. STOCK CALENDAR07/11/2013

Company Name	Symbol	Time	Event Description	Period	EPS Est (US$)
L Brands Inc	LTD US	7:30	June 2013 Sales and Revenue Call	2013
Yum! Brands Inc	YUM US	9:15	Q2 2013 Earnings Call	Q2 2013
Macy's Inc	M US		June 2013 Sales and Revenue Release	2013
Gap Inc/The	GPS US		June 2013 Sales and Revenue Release	2013
L Brands Inc	LTD US		June 2013 Sales and Revenue Release	2013
Progressive Corp/The	PGR US		Q2 2013 Earnings Release	Q2 2013	0.408
Progressive Corp/The	PGR US		Q2 2013 Earnings Release - June Sales	Q2 2013	0.408
Costco Wholesale Corp	COST US		June 2013 Sales and Revenue Release	2013
Costco Wholesale Corp	COST US		June 2013 Sales and Revenue Call	2013
Commerce Bancshares Inc/MO	CBSH US		Q2 2013 Earnings Release	Q2 2013	0.714
Ross Stores Inc	ROST US		June 2013 Sales and Revenue Release	2013
WP Carey Inc	WPC US		Annual General Meeting