Thursday, June 23rd, 2016View Older Reports
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OVERNIGHT MARKETS AND NEWS
Sep E-mini S&Ps (ESU16 +0.99%) are up sharply by +0.99% at a 1-1/2 week high and European stocks are up +2.34% at a 3-week high as the UK referendum on membership in the European Union is under way. Optimism is high that Britain will vote to remain in the EU as GBP/USD soared +1.13% to a 5-3/4 month high. Global government bonds and the price of gold tumbled to 2-week lows with the surge in equity markets. Copper prices (HGN16+0.61%) jumped to a 1-1/2 month high and European stocks also found support on an unexpected increase in the Eurozone Jun Markit manufacturing PMI to its fastest pace of expansion in 6 months. Asian stocks settled mixed: Japan +1.07%, Hong Kong +0.35%, China -0.47%, Taiwan -0.45%, Australia +0.18%, Singapore +0.28%, South Korea -0.18%, India +0.88%.
The dollar index (DXY00 -0.54%) is down -0.60% at a 1-1/2 month low. EUR/USD (^EURUSD) is up +0.91% at a 2-week high. USD/JPY (^USDJPY) is up +1.34% at a 1-week high.
The Eurozone Jun Markit manufacturing PMI unexpectedly rose +1.1 to 52.6, stronger than expectations of -0.1 to 51.4 and the fastest pace of expansion in 6 months.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) today's Brexit vote in the UK, (2) weekly initial unemployment claims (expected -7,000 to 270,000, previous +13,000 to 277,000) and continuing claims (expected -13,000 to 2.144 million, previous +45,000 to 2.157 million), (3) May Chicago Fed national activity index (expected +0.01 to 0.11, Apr +0.65 to 0.10), (4) preliminary Jun Markit U.S. manufacturing PMI (expected +0.2 to 50.9, May -0.1 to 50.7), (5) May new home sales (expected -9.5% to 560,000, Apr +16.6% to 619,000), (6) May leading indicators (expected +0.1%, Apr +0.6%), (7) Jun Kansas City Fed manufacturing activity (expected unch at -5, May -1 to -5), (8) Dallas Fed President Robert Kaplan (non-voter) speaks at a Money Marketeers dinner un New York, and (9) USDA weekly Export Sales.
There is 1 of the Russell 1000 companies that reports earnings today: Accenture (consensus $1.41).
U.S. IPO's scheduled to price today: none.
Equity conferences during the remainder of this week include: Citigroup Insurance Conference on Thu.
OVERNIGHT U.S. STOCK MOVERS
Herman Miller (MLHR -0.86%) climbed over 5% in after-hours trading after it reported Q4 adjusted EPS of 56 cents, higher than consensus of 52 cents, and said it sees Q1 adjusted EPS of 60 cents-64 cents, above consensus of 60 cents.
Amazon.com (AMZN -0.73%) was rated a new 'Buy' at Maxim Group with a 12-month price target of $825.
Home Depot (HD -0.11%) was upgraded to 'Buy' from 'Neutral' at Nomura with a price target of $155.
Intuit (INTU -1.34%) was added to America's 'COnviction Buy List' at Goldman Sachs.
CACI International (CACI -0.57%) said it sees fiscal 2017 EPS of $6.02-$6.43, below consensus of $6.50.
Steelcase (SCS -0.87%) slid 4% in after-hours trading after it said it sees Q2 adjusted EPS of 29 cents-33 cents, below consensus of 37 cents.
Apogee Enterprises (APOG -4.22%) jumped over 9% in after-hours trading after it reported Q1 EPS of 61 cents, well above consensus of 49 cents, and then raised guidance on fiscal 2017 EPS to $2.70-$2.85 from an April 6 view of $2.65-$2.80.
Bed Bath & Beyond (BBBY -0.35%) fell nearly 6% in after-hours trading after it reported Q1 EPS of 80 cents, below consensus of 86 cents.
Red Hat (RHT -0.80%) dropped over 5% in after-hours trading after it lowered guidance on fiscal 2017 adjusted EPS to $2.19-$2.23 from a March 22 view of $2.22-$2.26.
H.B. Fuller (FUL -0.45%) reported Q2 adjusted EPS of 67 cents, weaker than consensus of 68 cents.
CubeSmart (CUBE +0.57%) was rated a new 'Outperform' at FBR Capital Markets with a 12-month price target of $35.
The U.S. Department of Defense said Harris Corp. (HRS -0.13%) won a $1.7 billion army contract for radios, ancillaries, spare parts and services for Afghanistan.
Weyerhaeuser (WY +0.14%) said it will close 2 of its 3 lumber and plywood mills in Columbia Falls, Montana this summer and approximately 100 positions will be eliminated.
SolarCity (SCTY +3.26%) fell over 2% in after-hours trading after Citron Research founder Andrew Left said that SolarCity "is not even technology. It's a subprime lender" and that he sees the stock price going to zero.
MARKET COMMENTS
September E-mini S&Ps (ESU16 +0.99%) this morning are up sharply by +20.50 points (+0.99%) at a 1-1/2 week high. Wednesday's closes: S&P 500-0.17%, Dow Jones -0.27%, Nasdaq -0.20%. The S&P 500 on Wednesday closed lower on the IMF's cut in its U.S. 2016 GDP estimate to 2.2% from 2.4% and on long liquidation pressure ahead of Thursday's UK Brexit vote. Stocks found support on the +1.8% increase in U.S. May existing home sales to a 9-1/4 year high of 5.53 million.
Sep 10-year T-note prices (ZNU16 -0.31%) this morning are down -13.5 ticks at a 2-week low. Wednesday's closes: TYU6 +3.00, FVU6 +2.25. Sep T-notes on Wednesday closed higher on economic concerns after the IMF cut its U.S. 2016 GDP forecast and on decent demand for the Treasury's $28 billion 7-year T-note auction that had a 2.56 bid-to-cover ratio, above the 12-auction average of 2.49.
The dollar index (DXY00 -0.54%) this morning is down -0.565 (-0.60%) at a 1-1/2 month low. EUR/USD (^EURUSD) is up +0.0103 (+0.91%) at a 2-week high. USD/JPY (^USDJPY) is up +1.40 (+1.34%) at a 1-week high. Wednesday's closes: Dollar Index -0.301 (-0.32%), EUR/USD +0.0054 (+0.48%), USD/JPY -0.34 (-0.32%). The dollar index on Wednesday closed lower on strength in GBP/USD as Brexit concerns eased on optimism the UK will vote Thursday to remain in the European Union. The dollar was also undercut by cautious comments from Fed Chair Yellen that signal the Fed may be slow to raise interest rates when she said the "headwinds" of weak productivity growth and tepid business investment may only slowly fade over time.
Aug WTI crude oil (CLQ16 +1.47%) this morning is up +64 cents (+1.30%). Aug gasoline (RBQ16 +0.88%) is up +0.0087 (+0.55%). Wednesday's closes: CLQ6 -0.72 (-1.44%), RBQ6 -0.0086 (-0.54%). Aug crude and gasoline on Wednesday both fell back from 1-week highs and closed lower. Crude oil prices were undercut by the -917,000 bbl decline in EIA crude inventories (less than expectations of -1.5 million bbl) and the unexpected +627,000 bbl increase in EIA gasoline inventories, more than expectations of -1.0 million bbl. Crude oil found support on a weaker dollar and the -0.4%decline in U.S. crude production in the week ended Jun 17 to a 1-3/4 year low of 8.677 million bpd.
GLOBAL EVENT CALENDAR06/23/2016
U.S. STOCK CALENDAR06/23/2016
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Showing posts with label XL. Show all posts
Showing posts with label XL. Show all posts
Thursday, June 23, 2016
MORNING CALL 6/23
MORNING CALL
Monday, February 2, 2015
BARCHART MORNING CALL 2/2
BARCHART MORNING CALL
The China Jan manufacturing PMI unexpectedly fell -0.3 to 49.8, weaker than expectations of +0.1 to 50.2 and the first time manufacturing activity has contracted in 28 months. The Jan non-manufacturing PMI fell -0.4 to 53.7, the slowest pace of expansion in a year.
The German Jan Markit/BME manufacturing PMI was revised downward to 50.9 from the originally reported 51.0.
UK Jan Markit manufacturing PMI rose +0.5 from an upward revised 52.7 in Dec to 53.0, better than expectations of +0.2 to 52.7.
Japan Jan vehicle sales fell -18.9% y/y, the biggest decline in 3-1/3 years and the sixth consecutive month sales have fallen.
There are 9 of the S&P 500 companies that report earnings today: Exxon (consensus $1.34), Pitney Bowes (0.51), Sysco (0.41), Avery Dennison (0.80), Anadarko Petroleum (0.86), Owens-Illinois (0.45), Hartford ((0.94), Torchmark (1.00), XL Group (0.88). Equity conferences this week include: ANS Conference on Nuclear Training and Education on Mon-Tue, In-Pharma Osaka 2015 on Tue, Media Insights & Engagement Conference on Tue-Thu, Cowen and Company Aerospace/Defense Conference & Transport Forum on Wed-Thu.
NuStar Energy (NS +3.11%) upgraded to 'Buy' from 'Neutral' at UBS.
Western Gas Partners (WES +1.12%) was reinstated with an 'Overweight' at Barclays with a price target of $84.
Delta Air Lines (DAL -5.78%) and Spirit Airlines (SAVE -7.09%) were both upgraded to 'Strong Buy' from 'Outperform' at Raymond James.
Wyndham (WYN -2.07%) was downgraded to 'Sell' from 'Hold' at Deutsche Bank.
Abercrombie & Fitch (ANF -2.18%) and Guess (GES -4.86%) were both downgraded to 'Sell' from 'Hold' at Evercore ISI.
1-800-Flowers.com (FLWS +3.14%) reported Q2 EPS of 68 cents, below consensus of 80 cents.
Diamond Foods (DMND -9.93%) was upgraded to 'Outperform' from 'Market Perform' at BMO Capital.
Pitney Bowes (PBI -0.29%) reported Q4 EPS of 51 cents, right on expectations
Sysco (SYY -1.83%) reported Q2 EPS of 41 cents, right on consensus.
Shire (SHPG -1.31%) announced that the U.S. FDA approved its Vyvanse Capsules, the first and only medication for the treatment of moderate to severe binge eating disorder in adults.
Nicholas Woodman reported a 44.9% passive stake in GoPro (GPRO -2.14%) .
JPMorgan Chase reported a 6.5% passive stake in Brandywine Realty (BDN -1.66%) .
Mar 10-year T-notes (ZNH15 -0.02%) this morning are down -0.5 of a tick. Mar 10-year T-note futures prices on Friday posted a contract high and closed higher and the 10-year T-note yield fell to a 1-1/2 year low of 1.65%. Closes: TYH5 +22.00, FVH5 +14.75. Bullish factors included (1) concern about a slowdown in the U.S. economy after Q4 GDP expanded at a 2.6% pace, weaker expectations of +3.0%, and (2) carry-over support from a rally in German bund prices to a record high on deflation concerns after Eurozone Jan CPI fell -0.6% y/y and matched the biggest drop since the euro currency was introduced in 1999.
The dollar index (DXY00 -0.07%) this morning is down -0.111 (-0.12%). EUR/USD (^EURUSD) is up +0.0028 (+0.25%). USD/JPY (^USDJPY) is up +0.16 (+0.14%). The dollar index on Friday closed higher: Dollar index +0.022 (+0.02%), EUR/USD -0.00400 (-0.35%), USD/JPY -0.765 (-0.65%). Bullish factors included (1) hawkish comments from St. Louis Fed President Bullard who said it is “reasonable” to expect an interest rate increase in June or July, and (2) weakness in EUR/USD on deflation concerns after Eurozone Jan core CPI rose +0.6% y/y, the slowest pace of increase since the euro currency was introduced in 1999.
Mar WTI crude oil (CLH15 +0.58%) this morning is up $1.50 (+3.11%) at a 2-week high and Mar gasoline (RBH15 +2.84%) is up +0.0739 (+5.00%) at a 1-month high. Mar crude oil and Mar gasoline on Friday closed sharply higher with Mar crude at a 1-week high and Mar gasoline at a 1-month high: CLH5 +3.71 (+8.33%), RBH5 +0.0875 (+6.29%). Bullish factors included (1) concern that the recent plunge in crude prices will curb U.S, oil output after the Baker Hughes operating oil rig count sank to a 3-year low of 1,223, (2) the unexpected increase in the Jan Chicago PMI, which spurred short covering in crude, and (3) the better-than-expected +4.3% increase in Q4 U.S. personal consumption, which signals increased fuel demand.
Monday, February 2nd, 2015View Older Reports
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OVERNIGHT MARKETS AND NEWS
March E-mini S&Ps (ESH15 +0.25%) this morning are up +0.38% as energy producers and oil service providers gained in pre-market trading after crude oil jumped to a 2-week high, while European stocks are down -0.12%, led by a plunge in Spanish bank stocks, on concern Spain may try to follow Greece in attempting to renegotiate the country's debt. The leader of Spain's anti-austerity party, Podemos, pledged to restructure Spain's debt if his party can convert its opinion-poll lead into victory in elections later this year. Asian stocks closed mixed: Japan -0.66%, Hong Kong -0.09%, China -2.34%, Taiwan +0.27%, Australia +0.66%, Singapore +0.95%, South Korea +0.29%, India -0.21%. China's Shanghai Stock Index fell to a 1-1/2 week low after a gauge of Chinese manufacturing signaled contraction for the first time in over two years. Commodity prices are mostly higher. Mar crude oil (CLH15 +0.58%) is up +3.11% at a 2-week high and Mar gasoline (RBH15 +2.84%) is up +5.00% at a 1-month high after a strike by oil workers in refineries that account for 10% of U.S. refining capacity enters its second day. Feb gold (GCG15 -0.24%) is down -0.24%. Mar copper (HGH15 +0.12%) is up +0.80%. Agriculture prices are higher. The dollar index (DXY00 -0.07%) is down -0.12%. EUR/USD (^EURUSD) is up +0.25%. USD/JPY (^USDJPY) is up +0.14%. Mar T-note prices (ZNH15 -0.02%) are down -0.5 of a tick.The China Jan manufacturing PMI unexpectedly fell -0.3 to 49.8, weaker than expectations of +0.1 to 50.2 and the first time manufacturing activity has contracted in 28 months. The Jan non-manufacturing PMI fell -0.4 to 53.7, the slowest pace of expansion in a year.
The German Jan Markit/BME manufacturing PMI was revised downward to 50.9 from the originally reported 51.0.
UK Jan Markit manufacturing PMI rose +0.5 from an upward revised 52.7 in Dec to 53.0, better than expectations of +0.2 to 52.7.
Japan Jan vehicle sales fell -18.9% y/y, the biggest decline in 3-1/3 years and the sixth consecutive month sales have fallen.
U.S. STOCK PREVIEW
Today’s Jan ISM manufacturing index is expected to show a -0.8 decline to 54.7, which would be the third monthly decline in a row. Today’s Dec personal income report is expected to show a small increase of +0.2% and the Dec personal spending report is expected to show a decline of -0.2% m/m. Today’s Dec PCE deflator is expected to fall to +0.8% y/y from +1.2% in November. Meanwhile, today’s Dec core PCE deflator is expected to edge lower to +1.3% y/y from +1.4% in November.There are 9 of the S&P 500 companies that report earnings today: Exxon (consensus $1.34), Pitney Bowes (0.51), Sysco (0.41), Avery Dennison (0.80), Anadarko Petroleum (0.86), Owens-Illinois (0.45), Hartford ((0.94), Torchmark (1.00), XL Group (0.88). Equity conferences this week include: ANS Conference on Nuclear Training and Education on Mon-Tue, In-Pharma Osaka 2015 on Tue, Media Insights & Engagement Conference on Tue-Thu, Cowen and Company Aerospace/Defense Conference & Transport Forum on Wed-Thu.
OVERNIGHT U.S. STOCK MOVERS
Tenneco (TEN -2.15%) reported Q4 adjusted EPS of $1.05, higher than consensus of 99 cents.NuStar Energy (NS +3.11%) upgraded to 'Buy' from 'Neutral' at UBS.
Western Gas Partners (WES +1.12%) was reinstated with an 'Overweight' at Barclays with a price target of $84.
Delta Air Lines (DAL -5.78%) and Spirit Airlines (SAVE -7.09%) were both upgraded to 'Strong Buy' from 'Outperform' at Raymond James.
Wyndham (WYN -2.07%) was downgraded to 'Sell' from 'Hold' at Deutsche Bank.
Abercrombie & Fitch (ANF -2.18%) and Guess (GES -4.86%) were both downgraded to 'Sell' from 'Hold' at Evercore ISI.
1-800-Flowers.com (FLWS +3.14%) reported Q2 EPS of 68 cents, below consensus of 80 cents.
Diamond Foods (DMND -9.93%) was upgraded to 'Outperform' from 'Market Perform' at BMO Capital.
Pitney Bowes (PBI -0.29%) reported Q4 EPS of 51 cents, right on expectations
Sysco (SYY -1.83%) reported Q2 EPS of 41 cents, right on consensus.
Shire (SHPG -1.31%) announced that the U.S. FDA approved its Vyvanse Capsules, the first and only medication for the treatment of moderate to severe binge eating disorder in adults.
Nicholas Woodman reported a 44.9% passive stake in GoPro (GPRO -2.14%) .
JPMorgan Chase reported a 6.5% passive stake in Brandywine Realty (BDN -1.66%) .
MARKET COMMENTS
Mar E-mini S&Ps (ESH15 +0.25%) this morning are up +7.50 poinrs (+0.38%). The S&P 500 index on Friday closed lower: S&P 500 -1.30%, Dow Jones -1.45%, Nasdaq -0.79%. Negative factors included (1) carry-over weakness from a slide in European stocks on deflation concerns after the Eurozone Jan CPI estimate fell by -0.6% y/y and matched the July 2009 decline as the biggest drop since the euro currency was introduced in 1999, and (2) U.S. economic concerns after U.S. Q4 GDP rose +2.6% q/q annualized, weaker than expectations of +3.0%.Mar 10-year T-notes (ZNH15 -0.02%) this morning are down -0.5 of a tick. Mar 10-year T-note futures prices on Friday posted a contract high and closed higher and the 10-year T-note yield fell to a 1-1/2 year low of 1.65%. Closes: TYH5 +22.00, FVH5 +14.75. Bullish factors included (1) concern about a slowdown in the U.S. economy after Q4 GDP expanded at a 2.6% pace, weaker expectations of +3.0%, and (2) carry-over support from a rally in German bund prices to a record high on deflation concerns after Eurozone Jan CPI fell -0.6% y/y and matched the biggest drop since the euro currency was introduced in 1999.
The dollar index (DXY00 -0.07%) this morning is down -0.111 (-0.12%). EUR/USD (^EURUSD) is up +0.0028 (+0.25%). USD/JPY (^USDJPY) is up +0.16 (+0.14%). The dollar index on Friday closed higher: Dollar index +0.022 (+0.02%), EUR/USD -0.00400 (-0.35%), USD/JPY -0.765 (-0.65%). Bullish factors included (1) hawkish comments from St. Louis Fed President Bullard who said it is “reasonable” to expect an interest rate increase in June or July, and (2) weakness in EUR/USD on deflation concerns after Eurozone Jan core CPI rose +0.6% y/y, the slowest pace of increase since the euro currency was introduced in 1999.
Mar WTI crude oil (CLH15 +0.58%) this morning is up $1.50 (+3.11%) at a 2-week high and Mar gasoline (RBH15 +2.84%) is up +0.0739 (+5.00%) at a 1-month high. Mar crude oil and Mar gasoline on Friday closed sharply higher with Mar crude at a 1-week high and Mar gasoline at a 1-month high: CLH5 +3.71 (+8.33%), RBH5 +0.0875 (+6.29%). Bullish factors included (1) concern that the recent plunge in crude prices will curb U.S, oil output after the Baker Hughes operating oil rig count sank to a 3-year low of 1,223, (2) the unexpected increase in the Jan Chicago PMI, which spurred short covering in crude, and (3) the better-than-expected +4.3% increase in Q4 U.S. personal consumption, which signals increased fuel demand.
GLOBAL EVENT CALENDAR02/02/2015
| US | 0830 ET | Dec personal spending expected -0.2% m/m, Nov +0.6%. Dec personal income expected +0.2% m/m, Nov +0.4%. |
| 0830 ET | Dec PCE deflator expected -0.3% m/m and +0.8% y/y, Nov -0.2% m/m and +1.2% y/y. Dec PCE core deflator expected unch m/m and +1.3% y/y, Nov unch m/m and +1.4% y/y. | |
| 0945 ET | Final Jan Markit manufacturing PMI, previous -0.2 to 53.7. | |
| 1000 ET | Dec construction spending expected +0.7% m/m, Nov -0.3%. | |
| 1000 ET | Jan ISM manufacturing index expected -0.8 to 54.7, Dec -3.2 to 55.5. Jan ISM new orders sub-index, Dec -8.7 to 57.3. Jan ISM employment sub-index, Dec +1.9 to 56.8. Jan ISM prices paid sub index expected +1.5 to 40.0, Dec -6.0 to 38.5. | |
| 1100 ET | USDA weekly grain export inspections. | |
| JPN | 0000 ET | Japan Jan vehicle sales, Dec -8.8% y/y. |
| GER | 0355 ET | Revised German Jan Markit/BME manufacturing PMI, previous -0.3 to 51.0. |
| EUR | 0300 ET | ECB Executive Board member Benoit Coeure and the central bank chiefs of Austria, Turkey, Portugal, Slovenia, Croatia and Finland meet at a conference in Budapest organized by the Bank of Hungary. |
| 0400 ET | Revised Eurozone Jan Markit manufacturing PMI, previous +0.4 to 51.0. | |
| UK | 0430 ET | UK Jan Markit manufacturing PMI expected +0.2 to 52.7, Dec 52.5. |
U.S. STOCK CALENDAR02/02/2015
| Company | Ticker | Time | Event Description | Period | Estimate |
|---|---|---|---|---|---|
| Pitney Bowes Inc | PBI US | Bef-mkt | Q4 2014 Earnings Release | Q4 2014 | 0.505 |
| Sysco Corp | SYY US | Bef-mkt | Q2 2015 Earnings Release | Q2 2015 | 0.408 |
| Pitney Bowes Inc | PBI US | 8:00 | Q4 2014 Earnings Call | Q4 2014 | |
| Exxon Mobil Corp | XOM US | 8:00 | Q4 2014 Earnings Release | Q4 2014 | 1.339 |
| Avery Dennison Corp | AVY US | 8:30 | Q4 2014 Earnings Release | Q4 2014 | 0.804 |
| Exxon Mobil Corp | XOM US | 9:30 | Q4 2014 Earnings Call | Q4 2014 | |
| Sysco Corp | SYY US | 10:00 | Q2 2015 Earnings Call | Q2 2015 | |
| Avery Dennison Corp | AVY US | 11:00 | Q4 2014 Earnings Call | Q4 2014 | |
| XL Group PLC | XL US | 17:00 | Q4 2014 Earnings Call | Q4 2014 | |
| Anadarko Petroleum Corp | APC US | Aft-mkt | Q4 2014 Earnings Release | Q4 2014 | 0.859 |
| Owens-Illinois Inc | OI US | Aft-mkt | Q4 2014 Earnings Release | Q4 2014 | 0.452 |
| Hartford Financial Services Group Inc/The | HIG US | Aft-mkt | Q4 2014 Earnings Release | Q4 2014 | 0.935 |
| Torchmark Corp | TMK US | Aft-mkt | Q4 2014 Earnings Release | Q4 2014 | 1.002 |
| XL Group PLC | XL US | Aft-mkt | Q4 2014 Earnings Release | Q4 2014 | 0.881 |
Monday, October 27, 2014
BARCHART MORNING CALL 10/27
BARCHART MORNING CALL
The German Oct IFO business climate fell -1.5 to 103.2, a larger decline than expectations of -0.2 to 104.5 and the lowest in 1-3/4 years. The Oct IFO current assessment fell -2.0 to 108.4, more than expectations of -0.5 to 110.0 and the lowest in 1-1/2 years. Oct IFO expectations dropped -1.0 to 98.3, a bigger decline than expectations of -0.1 to 99.2 and the lowest in 1-3/4 years.
Eurozone Sep M3 money supply rose +2.5% y/y and +2.1% 3-month average, more than expectations of +2.2% y/y and +2.0% 3-month average with the 2.5% y/y gain the largest annual increase in 16 months.
Data from the ECB showed that European bank lending to companies and households in Sep fell -1.2% y/y. Although it was an improvement from the -1.5% y/y fall in Aug, it was the 29th consecutive month that bank lending has shrunk.
Japan Sep PPI services rose +3.5% y/y, right on expectations and matched the largest increase in 23 years.
Merck & Co. (MRK +1.73%) reported Q3 EPS of 72 cents, weaker than consensus of 88 cents.
Roper Industries (ROP +0.43%) reported Q3 EPS of $1.55, better than consensus of $1.53.
Precision Drilling (PDS -1.99%) reported Q3 EPS of 18 cents, higher than consensus of 17 cents.
Armstrong World (AWI -0.14%) reported Q3 adjusted EPS of 83 cents, stronger than consensus of 78 cents.
Business Insider reports that Wal-Mart and Best Buy have joined Rite Aid and CVS Health in rejecting Apple's (AAPL +0.37%) mobile payments system Apple Pay.
Rackspace (RAX +0.98%) was upgraded to 'Buy' from 'Neutral' at BofA/Merrill Lynch.
Ventas (VTR -1.28%) was downgraded to 'Neutral' from 'Buy' at UBS.
Halliburton (HAL -0.13%) was downgraded to 'Buy' from 'Conviction Buy' at Goldman Sachs.
Anadarko (APC -1.29%) and EP Energy (EPE +1.64%) were both downgraded to 'Neutral' from 'Buy' at Goldman Sachs.
Precision Castparts (PCP -0.26%) was downgraded to 'Neutral' from 'Overweight' at JPMorgan Chase.
Acuity Brands (AYI +0.76%) was upgraded to 'Conviction Buy' from 'Buy' at Goldman Sachs.
Alcoa (AA +1.91%) was upgraded to 'Buy' from 'Hold' at Deutsche Bank.
Dec 10-year T-notes (ZNZ14 +0.02%) this morning are down -0.5 of a tick. Dec 10-year T-note futures prices on Friday closed slightly higher on concern the spread of the Ebola virus will slow the economy and bolster the case for the Fed to delay raising interest rates. Closes: TYZ4 +0.50, FVZ4 +0.75. T-note prices fell back from their best levels after stocks rallied and after Sep new home sales climbed to a 6-year high.
The dollar index (DXY00 -0.07%) this morning is down -0.069 (-0.08%). EUR/USD (^EURUSD) is up +0.0001 (+0.01%). USD/JPY (^USDJPY) is down -0.28 (-0.26%). The dollar index on Friday closed lower. Closes: Dollar index -0.111 (-0.13%), EUR/USD +0.00232 (+0.18%), USD/JPY -0.125 (-0.12%). Bearish factors included (1) strength in EUR/USD after German Nov GfK consumer confidence unexpectedly rose +0.1 to 8.5, better than expectations of -0.3 to 8.0, and (2) concern that the spread of the Ebola virus may undercut economic growth and prompt the Fed to delay any interest rate hikes after New York City reported its first case of the virus.
Dec WTI crude oil (CLZ14 -0.52%) this morning is down -43 cents (-0.53%) and Dec gasoline (RBZ14 -0.48%) is down -0.0187 (-0.87%). Dec crude and Dec gasoline on Friday closed lower. Closes: CLZ4 -1.08 (-1.32%), RBZ4 -0.0238 (-1.10%). Negative factors included (1) speculation that Saudi Arabia won’t cut crude production in an attempt to push oil prices higher as they try to keep their share of OPEC output, and (2) concern that the spread of the Ebola virus may undercut consumer sentiment and spending and lead to slower economic growth and energy demand after the first case of the Ebola virus was reported in New Your City.
Monday, October 27th, 2014View Older Reports
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OVERNIGHT MARKETS AND NEWS
December E-mini S&Ps (ESZ14 -0.22%) this morning are down -0.20% and European stocks are down -0.55%. U.S. and European stocks had initially rallied up to 2-week highs in early trade Monday after the ECB said that most European banks passed stress tests, but stocks erased their gains and headed lower after German business confidence slid for a sixth month to the lowest in 1-3/4 years. Asian stocks closed mixed: Japan +0.63%, Hong Kong -0.68%, China -0.91%, Taiwan -0.21%, Australia +0.86%, Singapore +0.11%, South Korea +0.40%, India -0.37%. Japan's Nikkei Stock Index climbed to a 1-1/2 month high on optimism over U.S. stock earnings and after the ECB gave most European banks a clean bill of health following stress tests. Chinese stocks tumbled as the Shanghai Stock Index fell to a 1-3/4 month low after a Hong Kong bourse operator said that he had no idea when authorities will give the green light for cross-border trading between the two exchanges. Chinese stocks had rallied sharply in anticipation that price discounts versus Hong Kong stocks would narrow with the start of cross-border trading. Commodity prices are mostly lower. Dec crude oil (CLZ14 -0.52%) is down -0.53%. Dec gasoline (RBZ14 -0.48%) is down -0.87%. Dec gold (GCZ14 -0.08%) is down -0.10%. Dec copper (HGZ14 +0.31%) is up +0.07%. Agriculture prices are lower as dry, warm weather in the Midwest over the weekend sped up the pace of the U.S. harvest. The dollar index (DXY00 -0.07%) is down -0.08%. EUR/USD (^EURUSD) is up +0.01%. USD/JPY (^USDJPY) is down -0.26%. Dec T-note prices (ZNZ14 +0.02%) are down -0.5 of a tick.The German Oct IFO business climate fell -1.5 to 103.2, a larger decline than expectations of -0.2 to 104.5 and the lowest in 1-3/4 years. The Oct IFO current assessment fell -2.0 to 108.4, more than expectations of -0.5 to 110.0 and the lowest in 1-1/2 years. Oct IFO expectations dropped -1.0 to 98.3, a bigger decline than expectations of -0.1 to 99.2 and the lowest in 1-3/4 years.
Eurozone Sep M3 money supply rose +2.5% y/y and +2.1% 3-month average, more than expectations of +2.2% y/y and +2.0% 3-month average with the 2.5% y/y gain the largest annual increase in 16 months.
Data from the ECB showed that European bank lending to companies and households in Sep fell -1.2% y/y. Although it was an improvement from the -1.5% y/y fall in Aug, it was the 29th consecutive month that bank lending has shrunk.
Japan Sep PPI services rose +3.5% y/y, right on expectations and matched the largest increase in 23 years.
U.S. STOCK PREVIEW
Today’s Sep pending home sales report is expected to show an increase of +1.0% m/m. There are 13 of the S&P 500 companies that report earnings today with notable reports including: Amgen (consensus $2.11), Seagate (1.25), Merck (0.88), General Growth (0.31), AvalonBay Communities (1.73). Equity conferences this week include: RMA Annual Risk Management Conference 2014 on Mon-Tue, and GTEC (Government Technology Exhibition & Conference) 2014 on Tue-Thu.
OVERNIGHT U.S. STOCK MOVERS
Allergan (AGN +0.46%) reported Q3 EPS of $1.72, below consensus of $1.77.Merck & Co. (MRK +1.73%) reported Q3 EPS of 72 cents, weaker than consensus of 88 cents.
Roper Industries (ROP +0.43%) reported Q3 EPS of $1.55, better than consensus of $1.53.
Precision Drilling (PDS -1.99%) reported Q3 EPS of 18 cents, higher than consensus of 17 cents.
Armstrong World (AWI -0.14%) reported Q3 adjusted EPS of 83 cents, stronger than consensus of 78 cents.
Business Insider reports that Wal-Mart and Best Buy have joined Rite Aid and CVS Health in rejecting Apple's (AAPL +0.37%) mobile payments system Apple Pay.
Rackspace (RAX +0.98%) was upgraded to 'Buy' from 'Neutral' at BofA/Merrill Lynch.
Ventas (VTR -1.28%) was downgraded to 'Neutral' from 'Buy' at UBS.
Halliburton (HAL -0.13%) was downgraded to 'Buy' from 'Conviction Buy' at Goldman Sachs.
Anadarko (APC -1.29%) and EP Energy (EPE +1.64%) were both downgraded to 'Neutral' from 'Buy' at Goldman Sachs.
Precision Castparts (PCP -0.26%) was downgraded to 'Neutral' from 'Overweight' at JPMorgan Chase.
Acuity Brands (AYI +0.76%) was upgraded to 'Conviction Buy' from 'Buy' at Goldman Sachs.
Alcoa (AA +1.91%) was upgraded to 'Buy' from 'Hold' at Deutsche Bank.
MARKET COMMENTS
Dec E-mini S&Ps (ESZ14 -0.22%) this morning are down -4.00 points (-0.20%). The S&P 500 index on Friday rallied to a 2-week high and closed higher: S&P 500 +0.71%, Dow Jones +0.76%, Nasdaq +0.74%. Bullish factors included (1) strong Q3 stock earnings results with 70% of reporting S&P 500 companies beating estimates, and (2) an unexpected +0.2% increase in Sep new home sales to a 6-year high of 467,000 after Aug was revised lower to 466,000 from 504,000. Gains in stocks were limited on concern that the spread of the Ebola virus may slow the global economy after the first case of the virus was reported in New York City.Dec 10-year T-notes (ZNZ14 +0.02%) this morning are down -0.5 of a tick. Dec 10-year T-note futures prices on Friday closed slightly higher on concern the spread of the Ebola virus will slow the economy and bolster the case for the Fed to delay raising interest rates. Closes: TYZ4 +0.50, FVZ4 +0.75. T-note prices fell back from their best levels after stocks rallied and after Sep new home sales climbed to a 6-year high.
The dollar index (DXY00 -0.07%) this morning is down -0.069 (-0.08%). EUR/USD (^EURUSD) is up +0.0001 (+0.01%). USD/JPY (^USDJPY) is down -0.28 (-0.26%). The dollar index on Friday closed lower. Closes: Dollar index -0.111 (-0.13%), EUR/USD +0.00232 (+0.18%), USD/JPY -0.125 (-0.12%). Bearish factors included (1) strength in EUR/USD after German Nov GfK consumer confidence unexpectedly rose +0.1 to 8.5, better than expectations of -0.3 to 8.0, and (2) concern that the spread of the Ebola virus may undercut economic growth and prompt the Fed to delay any interest rate hikes after New York City reported its first case of the virus.
Dec WTI crude oil (CLZ14 -0.52%) this morning is down -43 cents (-0.53%) and Dec gasoline (RBZ14 -0.48%) is down -0.0187 (-0.87%). Dec crude and Dec gasoline on Friday closed lower. Closes: CLZ4 -1.08 (-1.32%), RBZ4 -0.0238 (-1.10%). Negative factors included (1) speculation that Saudi Arabia won’t cut crude production in an attempt to push oil prices higher as they try to keep their share of OPEC output, and (2) concern that the spread of the Ebola virus may undercut consumer sentiment and spending and lead to slower economic growth and energy demand after the first case of the Ebola virus was reported in New Your City.
GLOBAL EVENT CALENDAR10/27/2014
| US | 0945 ET | Oct Markit services PMI expected -0.9 to 58.0, Sep -0.6 to 58.9. Oct Markit composite PMI, Sep -0.7 to 59.0. |
| 1000 ET | Sep pending home sales expected +1.0% m/m and +2.2% y/y, Aug -1.0% m/m and -4.1% y/y. | |
| 1030 ET | Oct Dallas Fed manufacturing activity index expected +0.2 to 11.0, Sep +3.7 to 10.8. | |
| 1100 ET | USDA weekly grain export inspections. | |
| 1600 ET | USDA weekly crop progress. | |
| GER | 0500 ET | German Oct IFO business climate expected +0.1 to 104.8. Oct IFO current assessment expected -0.5 to 110.0, Sep 110.5. Oct IFO expectations expected -0.1 to 99.2, Sep 99.3. |
| EUR | 0500 ET | Eurozone Sep M3 money supply expected +2.2% y/y and +2.0% 3-mo avg, Aug +2.0% y/y and +1.8% 3-mo avg. |
| UK | 0700 ET | UK Oct CBI reported sales expected -6 to 25, Sep 31. |
| JPN | 1950 ET | Japan Sep retail sales expected +0.9% m/m and +0.8% y/y, Aug +1.9% m/m and +1.2% y/y. |
| CHI | 2130 ET | China Sep industrial profits, Aug -0.6% y/y. |
U.S. STOCK CALENDAR10/27/2014
| Company Name | Ticker | Time | Event Description | Period | Estimate |
|---|---|---|---|---|---|
| Allergan Inc/United States | AGN US | Bef-mkt | Q3 2014 Earnings Release | Q3 2014 | 1.765 |
| Seagate Technology PLC | STX US | Bef-mkt | Q1 2015 Earnings Release | Q1 2015 | 1.246 |
| Merck & Co Inc | MRK US | Bef-mkt | Q3 2014 Earnings Release | Q3 2014 | 0.878 |
| Roper Industries Inc | ROP US | 7:00 | Q3 2014 Earnings Release | Q3 2014 | 1.534 |
| Merck & Co Inc | MRK US | 8:00 | Q3 2014 Earnings Call | Q3 2014 | |
| Roper Industries Inc | ROP US | 8:30 | Q3 2014 Earnings Call | Q3 2014 | |
| Franklin Resources Inc | BEN US | 8:30 | Q4 2014 Earnings Release | Q4 2014 | 0.928 |
| Franklin Resources Inc | BEN US | 8:30 | Q4 2014 Earnings Call - Pre-Recorded | C4 2014 | |
| Allergan Inc/United States | AGN US | 9:00 | Q3 2014 Earnings Call | Q3 2014 | |
| Seagate Technology PLC | STX US | 9:00 | Q1 2015 Earnings Call | Q1 2015 | |
| Charles Schwab Corp/The | SCHW US | 11:00 | Business Update Call | ||
| Franklin Resources Inc | BEN US | 11:00 | Q4 2014 Earnings Call | Q4 2014 | |
| Plum Creek Timber Co Inc | PCL US | 17:00 | Q3 2014 Earnings Call | Q3 2014 | |
| XL Group PLC | XL US | 17:00 | Q3 2014 Earnings Call | Q3 2014 | |
| Amgen Inc | AMGN US | 17:00 | Q3 2014 Earnings Call | Q3 2014 | |
| Plum Creek Timber Co Inc | PCL US | Aft-mkt | Q3 2014 Earnings Release | Q3 2014 | 0.297 |
| Hartford Financial Services Group Inc/The | HIG US | Aft-mkt | Q3 2014 Earnings Release | Q3 2014 | 0.825 |
| General Growth Properties Inc | GGP US | Aft-mkt | Q3 2014 Earnings Release | Q3 2014 | 0.313 |
| XL Group PLC | XL US | Aft-mkt | Q3 2014 Earnings Release | Q3 2014 | 0.62 |
| Amgen Inc | AMGN US | Aft-mkt | Q3 2014 Earnings Release | Q3 2014 | 2.112 |
| Masco Corp | MAS US | Aft-mkt | Q3 2014 Earnings Release | Q3 2014 | 0.317 |
| AvalonBay Communities Inc | AVB US | Aft-mkt | Q3 2014 Earnings Release | Q3 2014 | 1.732 |
| Universal Health Services Inc | UHS US | 17:01 | Q3 2014 Earnings Release | Q3 2014 | 1.342 |
Monday, July 28, 2014
BARCHART MORNING CALL 7/28
Monday, July 28th, 2014View Older Reports
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OVERNIGHT MARKETS AND NEWS
September E-mini S&Ps (ESU14 -0.14%) this morning are down -0.08% and European stocks are up +0.14%. Goldman Sachs cut its rating on global stocks to neutral for the next 3 months, saying stocks are at risk of a brief selloff as rising inflation boosts government bond yields. Stocks received a boost on increased M&A activity after Dollar Tree agreed to buy rival Family Dollar Stores in a cash-and-stock deal valued at about $8.5 billion. Russia's Micex fell nearly 2% to a 2-month low and the ruble slid as the U.S. and Europe consider more sanctions against Russia after the U.S. said it had satellite photos showing Russia firing across the border at Ukraine forces. Asian stocks closed mostly higher: Japan +0.46%, Hong Kong +0.88%, China +2.81%, Taiwan -0.20%, Australia -0.11%, Singapore closed for holiday, South Korea +0.78%, India -0.52%. Japan's Nikkei Stock Index rallied to a 6-month high on speculation Q2 Japanese company earnings results will be positive. China's Shanghai Stock Index jumped to a 7-month high on signs of increased company profits after China Jun industrial profits rose by the most in 9 months. Commodity prices are mixed. Sep crude oil (CLU14 -0.44%) is down -0.60%. Sep gasoline (RBU14 -0.44%) is down -0.43%. Aug gold (GCQ14 +0.11%) is up +0.07%. Sep copper (HGU14 +0.02%) is up +0.23%. Agriculture prices are mixed. The dollar index (DXY00 -0.02%) is down -0.03%. EUR/USD (^EURUSD) is up +0.07%. USD/JPY (^USDJPY) is up +0.01%. Sep T-note prices (ZNU14 -0.06%) are down -4 ticks.ECB Vice President Constancio said that the Eurozone and the global economy "still face challenges" and that inflation rates in the Eurozone "remained too low" in the second quarter.
China Jun industrial profits rose +17.9% y/y, the largest increase in 9 months.
U.S. STOCK PREVIEW
Today’s June pending home sales report is expected to show an increase of +0.5% m/m, adding to the sharp gain of +6.1% seen in May. The Treasury today will sell $29 billion of 2-year T-notes. There are 10 of the S&P 500 companies that report earnings today with notable reports including: Tyson Foods (consensus $0.78), Cummins (2.39), Roper Industries (1.50), Plum Creek Timber (0.30), and Eastman Chemical (1.84). Equity conferences this week include the following: Institute of Validation technology on Tue-Thu, and Marcus Evans 13th Annual Outage Management for Power Plants Conference on Tue-Thu.
OVERNIGHT U.S. STOCK MOVERS
Tyson Foods (TSN -0.58%) reported Q3 EPS of 75 cents, weaker than consensus of 78 cents.PG&E (PCG -0.57%) was downgraded to 'Sell' from 'Neutral' at Goldman Sachs.
Pfizer (PFE -0.49%) was downgraded to 'Market Perform' from 'Outperform' at BMO Capital.
Time Warner Cable (TWC -1.09%) was upgraded to 'Buy' from 'Hold' at Wunderlich.
Semtech (SMTC -4.26%) was upgraded to 'Strong Buy' from 'Outperform' at Raymond James.
Reynolds American (RAI -0.75%) was upgraded to 'Top Pick' from 'Outperform' at RBC Capital.
Cal-Maine Foods (CALM +0.66%) reported Q4 EPS $1.30, better than consensus of $1.15.
Citigroup raised its price target for Chipotle (CMG +2.03%) to $793 from $648 and keeps its 'Buy' ratng on the stock.
Dollar Tree (DLTR -1.33%) agreed to buy Family Dollar (FDO -0.79%) for $74.50 per share in cash and stock.
Cisco (CSCO +0.54%) was downgraded to 'Sector Perform' from 'Outperform' at Pacific Crest.
CIT Group (CIT +0.59%) was upgraded to 'Overweight' from 'Equal Weight' at Morgan Stanley who also raised their price target on the stock to $57 from $46.
Cummins (CMI -0.43%) reported Q2 EPS of $2.43, higher than consensus of $2.39.
Roper Industries (ROP -0.14%) reported Q2 EPS of $1.56, better than consensus of $1.50.
The U.S Commerce Department proposed expanded duties on some Chinese solar-energy imports, according to Bloomberg, potentially affecting Chinese solar companies such as Trina (TSL +0.71%), Yingli (YGE +0.57%) and JinkoSolar (JKS +2.17%), among others.
Amazon.com (AMZN -9.65%) is likely to remain range-bound as costs escalate, according to Barron's.
MARKET COMMENTS
Sep E-mini S&Ps (ESU14 -0.14%) this morning are down -1.50 points (-0.08%). The S&P 500 index on Friday closed moderately lower: S&P 500 -0.48%, Dow Jones -0.72%, Nasdaq -0.50%. The durable goods orders report was generally favorable, but stocks lost ground on (1) pre-weekend long liquidation pressure, (2) nervousness as the U.S. and Europe consider further sanctions against Russia, and (3) the surprise 50 bp rate hike to 8.00% by the Russian central bank along with the -1.45% sell-off in the Russian Micex stock index on Friday.Sep 10-year T-notes (ZNU14 -0.06%) this morning are down -4 ticks. Sep 10-year T-note futures prices on Friday closed moderately higher on weak global stocks and on increased safe-haven demand with impending new sanctions on Russia and the Russian rate hike. Closes: TYU4 +8.5, FVU4 +3.75.
The dollar index (DXY00 -0.02%) this morning is down -0.023 (-0.03%). EUR/USD (^EURUSD) is up +0.0010 (+0.07%). USD/JPY (^USDJPY) is up +0.01 (+0.01%). The dollar index on Friday extended the 3-week rally to a new 5-1/2 month high with bullish factors including generally strong U.S. economic data and continued safe-haven demand. EUR/USD fell to a new 8-month low on the ECB’s recent monetary policy easing and on concerns about new sanctions on Russia. Closes: Dollar index +0.16 (+0.19%), EUR/USD -0.0034 (-0.25%), USD/JPY +0.02 (+0.02%).
Sep WTI crude oil (CLU14 -0.44%) this morning is down -61 cents (-0.60%). and Sep gasoline (RBU14 -0.44%) is down -0.0122 (-0.43%). Aug crude and gasoline prices on Friday closed steady to higher: CLU4 +0.02 (+0.02%), RBU4 +0.0272 (+0.97%). Crude oil and gasoline prices received a boost on Friday from Ukraine-Russian turmoil, but continued to see some downward pressure from rising U.S. gasoline inventories and concerns about a near-term rise in Libyan exports.
GLOBAL EVENT CALENDAR07/28/2014
| US | 0945 ET | Jul Markit services PMI expected -0.2 to 59.8, Jun +2.9 to 61.0. |
| 1000 ET | Jun pending home sales expected +0.5% m/m and -5.2% y/y, May +6.1% m/m and -6.9% y/y. | |
| 1030 ET | Jul Dallas Fed manufacturing activity expected +0.6 to 12.0, Jun +3.4 to 11.4. | |
| 1100 ET | USDA weekly grain export inspections. | |
| 1300 ET | Treasury auctions $29 billion of 2-year T-notes. | |
| 1600 ET | USDA weekly crop progress. | |
| JPN | 1930 ET | Japan Jun jobless rate expected unch at 3.5%, May 3.5%. Jun job-to-applicant ratio expected unch at 1.09, May 1.09. |
| 1930 ET | Japan Jun overall household spending expected -3.9% y/y, May -8.0% y/y. | |
| 1950 ET | Japan Jun retail sales expected +0.8% y/y and -0.5% y/y, May +4.6% m/m and -0.4% y/y. |
U.S. STOCK CALENDAR07/28/2014
| Company Name | Ticker | Time | Event Description | Period | Estimate |
|---|---|---|---|---|---|
| Roper Industries Inc | ROP US | Bef-mkt | Q2 2014 Earnings Release | Q2 2014 | 1.503 |
| Tyson Foods Inc | TSN US | Bef-mkt | Q3 2014 Earnings Release | Q3 2014 | 0.784 |
| Cummins Inc | CMI US | 7:30 | Q2 2014 Earnings Release | Q2 2014 | 2.385 |
| Tyson Foods Inc | TSN US | 8:00 | Q3 2014 Earnings Call | Q3 2014 | |
| Roper Industries Inc | ROP US | 8:30 | Q2 2014 Earnings Call | Q2 2014 | |
| Cummins Inc | CMI US | 10:00 | Q2 2014 Earnings Call | Q2 2014 | |
| Plum Creek Timber Co Inc | PCL US | 17:00 | Q2 2014 Earnings Call | Q2 2014 | |
| XL Group PLC | XL US | 17:00 | Q2 2014 Earnings Call | Q2 2014 | |
| Eastman Chemical Co | EMN US | 17:00 | Q2 2014 Earnings Release | Q2 2014 | 1.837 |
| Plum Creek Timber Co Inc | PCL US | Aft-mkt | Q2 2014 Earnings Release | Q2 2014 | 0.299 |
| General Growth Properties Inc | GGP US | Aft-mkt | Q2 2014 Earnings Release | Q2 2014 | 0.305 |
| XL Group PLC | XL US | Aft-mkt | Q2 2014 Earnings Release | Q2 2014 | 0.837 |
| Masco Corp | MAS US | Aft-mkt | Q2 2014 Earnings Release | Q2 2014 | 0.281 |
| Range Resources Corp | RRC US | Aft-mkt | Q2 2014 Earnings Release | Q2 2014 | 0.398 |
| Jacobs Engineering Group Inc | JEC US | 21:30 | Q3 2014 Earnings Release | Q3 2014 | 0.864 |
Friday, May 2, 2014
BARCHART MORNING CALL 5/2
Friday, May 2nd, 2014View Older Reports
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OVERNIGHT MARKETS AND NEWS
June E-mini S&Ps (ESM14 +0.07%) this morning are up +0.05% ahead of this morning's U.S. Apr non-farm payrolls report and European stocks are down -0.32% as the Ukraine crisis intensified when two Ukrainian helicopters were shot down as government forces launched a military offensive to retake Slovyansk, a stronghold for pro-separatist forces. Losses in European stocks were limited after Royal Bank of Scotland jumped nearly 7% when it reported Q1 profit of 1.2 billion pounds, six times better than consensus of 200 million pounds. Another positive for European stocks is reduced European sovereign debt concerns as Eurozone government bond yields fell to record lows after Italy's 10-year government bond yield fell to 3.047% and Spain's 10-year bond yield dropped to 2.98%, both the lowest since data began in 1993. Asian stocks closed mixed: Japan -0.19%, Hong Kong +0.57%, China closed for holiday, Taiwan +0.86%, Australia +0.17%, Singapore -0.37%, South Korea -0.10%, India -0.06%. Commodity prices are mostly higher. Jun crude oil (CLM14 +0.42%) is up +0.42%. Jun gasoline (RBM14 +0.27%) is up +0.28%. Jun gold (GCM14 +0.26%) is up +0.25%. July copper (HGN14 +0.58%) is up +0.60%. Agriculture and livestock prices are mixed. The dollar index (DXY00 +0.04%) is up +0.07%. EUR/USD (^EURUSD) is down -0.07%. USD/JPY (^USDJPY) is up +0.18%. June T-note prices (ZNM14 -0.06%) are down -4 ticks.The Eurozone Mar unemployment rate was unchanged from Feb at 11.8%, which was revised lower from the originally reported 11.9%.
The Eurozone Apr Markit manufacturing PMI was revised upward to 53.4 from the originally reported 53.3.
The German Apr Markit/BME manufacturing PMI was revised down to 54.1 from the originally reported 54.2.
The Japan Mar jobless rate held steady at a 16-1/3 year low of 3.6%, right on expectations. The Mar job-to-applicant ration rose +0.02 to 1.07, better than expectations of +0.01 to 1.06 and the most in 7-1/2 years.
Japan Mar overall household spending jumped +7.2% y/y, over three times expectations of +2.0% y/y and the largest increase since the data series began in 2001.
U.S. STOCK PREVIEW
Today’s April payroll report is expected to show an increase of +215,000, strengthening from +192,000 in March. Today’s April unemployment rate is expected to fall -0.1 point to 6.6%, thus matching the 5-1/2 year low posted in January. Today’s March factory orders report is expected to show a +1.5% increase, adding to the +1.6% increase seen in February.There are 10 of the S&P 500 companies that report earnings today. Notable reports include Berkshire Hathaway (cosnensus $2171.39), Chevron (2.52), Sempra Energy (0.95), Newell Rubbermaid (0.32), CVS Caremark (1.04), Estee Lauder (0.55). There are no equity conferences today.
OVERNIGHT U.S. STOCK MOVERS
Newell Rubbermaid (NWL -0.23%) reported Q1 EPS of 35 cents, higher than consensus of 32 cents.CVS Caremark (CVS +0.51%) reported Q1 EPS of $1.02, weaker than consensus of $1.04.
XL Group (XL +1.28%) reported Q1 EPS of 85 cents, better than consensus of 74 cents.
Manitowoc (MTW +1.57%) reported Q1 adjusted EPS of 17 cents, below consensus of 20 cents.
Fluor (FLR -0.21%) reported Q1 EPS of 92 cents, weaker than consensus of 97 cents.
Tempur Sealy (TPX +0.74%) reported Q1 adjusted EPS of 53 cents, better than consensus of 51 cents.
Southwestern Energy (SWN -0.98%) reported Q1 adjusted EPS of 66 cents, stronger than consensus of 63 cents.
Akamai (AKAM +2.75%) reported Q1 adjusted EPS of 58 cents, higher than consensus of 53 cents.
Covance (CVD -0.28%) reported Q1 EPS ex-items of 90 cents, better than consensus of 89 cents.
Mohawk (MHK +0.69%) reported Q1 EPS ex-items of $1.23, stronger than consensus of $1.17.
DaVita (DVA +0.91%) reported Q1 adjusted EPS of 85 cents, less than consensus of 86 cents, although Q1 revenue of $3.04 billion was slightly above consensus of $3.03 billion.
Outerwall (OUTR -2.86%) reported Q1 EPS of 94 cents, better than consensus of 93 cents.
Avon Products (AVP -10.21%) was downgraded to 'Neutral' from 'Buy' at BTIG.
Western Union (WU -0.13%) reported Q1 EPS of 37 cents, better than consensus of 35 cents.
Wynn Resorts (WYNN +1.34%) reported Q1 adjusted EPS of $2.32, well ahead of consensus of $2.07.
LinkedIn (LNKD +5.05%) fell nearly 3% in pre-market trading after it reported Q1 adjusted EPS of 38 cents, better than consensus of 34 cents, but then said it sees fiscal 2014 revenue of $2.05 billion-$2.06 billion, lower than cosnensus of $2.11 billion.
Kraft Foods (KRFT -0.30%) reported Q1 EPS ex-items of 78 cents, higher than consensus of 76 cents.
Expedia (EXPE +4.06%) reported Q1 adjusted EPS of 16 cents, better than consensus of 15 cents.
MARKET COMMENTS
June E-mini S&Ps (ESM14 +0.07%) this morning are up +1.00 point (+0.05%). The S&P 500 index on Thursday rose to a 3-week high but fell back and closed little changed. Bullish factors included (1) the +0.9% increase in Mar personal spending, more than expectations of +0.6% and the largest increase in 4-1/2 years, and (2) the +1.2 point increase in the Apr ISM manufacturing index, a larger increase than expectations of +0.6 to 54.3. Limiting strength in stocks was the unexpected +14,000 jump in weekly initial unemployment claims to a 2-month high of 344,000, more than expectations of a -9,000 decline to 320,000. Closes: S&P 500 -0.01%, Dow Jones -0.13%, Nasdaq +0.34%.Jun 10-year T-notes (ZNM14 -0.06%) this morning are down -4 ticks. Jun 10-year T-note futures prices on Thursday climbed to a 2-week high and closed higher. Bullish factors included (1) the unexpected increase in weekly U.S. jobless claims to a 2-month high, and (2) scant inflation pressures after the Mar core PCE deflator of +1.2% y/y remained far below the Fed’s inflation target of +2.0% y/y. Closes: TYM4 +7.50, FVM4 +4.00.
The dollar index (DXY00 +0.04%) this morning is up +0.055 (+0.07%). EUR/USD (^EURUSD) is down -0.0010 (-0.07%). USD/JPY (^USDJPY) is up +0.18 (+0.18%). The dollar index on Thursday rebounded from a 2-week low and closed higher: Dollar index +0.053 (+0.07%), EUR/USD +0.0002 (+0.02%), USD/JPY +0.092 (+0.09%). Bullish factors for the dollar included signs of strength in the U.S. economy after (1) U.S. Mar personal spending rose more than expected by +0.9% at the fastest pace in 4-1/2 years, and (2) the larger-than-expected increase in the Apr ISM manufacturing index.
Jun WTI crude oil (CLM14 +0.42%) this morning is up +42 cents (+0.42%). Jun gasoline (RBM14 +0.27%) is up +0.0083 (+0.28%). Jun crude and gasoline prices on Thursday closed lower with Jun crude at a 4-week low and Jun gasoline at a 3-week low. Bearish factors included (1) negative carry-over from Wednesday’s EIA data where U.S. crude inventories rose to their highest since EIA data began in 1982 and monthly government data began in 1920, and (2) the recovery in the dollar which rebounded from a 2-1/2 week low and closed higher. Closes: CLM4 -1.54 (-1.52%). RBM4 -0.0436 (-1.45%).
GLOBAL EVENT CALENDAR05/02/2014
| US | 0830 ET | Apr non-farm payrolls expected +215,000, Mar +192,000. Apr private payrolls expected +215,000, Mar +192,000. Apr manufacturing payrolls expected +8,000, Mar 1,000. Apr unemployment rate expected -0.1 to 6.6%, Mar unch at 6.7%. |
| 0830 ET | Apr avg hourly earnings expected +0.2% m/m and +2.1% y/y, Mar unch m/m and +2.1% y/y. Apr avg weekly hours expected unch at 34.5 hours, Mar 34.5 hours. | |
| 0945 ET | Apr New York ISM expected +2.0 to 54.0, Mar 52.0. | |
| 1000 ET | Mar factory orders expected +1.5%, Feb +1.6%. | |
| EUR | 0400 ET | Eurozone Apr Markit manufacturing PMI, Mar 53.4. |
| 0500 ET | Eurozone Mar unemployment rate expected unch at 11.9%, Feb 11.9%. | |
| UK | 0430 ET | UK Apr Markit/CIPS construction PMI, Mar 62.5. |
| CHI | 2100 ET | China Apr non-manufacturing PMI (National Bureau of Statistics), Mar -0.5 to 54.5. |
| n/a | Chinese markets closed for Labour Day holiday. |
U.S. STOCK CALENDAR05/02/2014
| Company Name | Ticker | Time | Event Description | Period | Estimate |
|---|---|---|---|---|---|
| Newell Rubbermaid Inc | NWL US | Bef-mkt | Q1 2014 Earnings Release | Q1 2014 | 0.321 |
| Pinnacle West Capital Corp | PNW US | Bef-mkt | Q1 2014 Earnings Release | Q1 2014 | 0.129 |
| Marsh & McLennan Cos Inc | MMC US | Bef-mkt | Q1 2014 Earnings Release | Q1 2014 | 0.803 |
| CVS Caremark Corp | CVS US | Bef-mkt | Q1 2014 Earnings Release | Q1 2014 | 1.044 |
| Estee Lauder Cos Inc/The | EL US | 7:30 | Q3 2014 Earnings Release | Q3 2014 | 0.55 |
| Newell Rubbermaid Inc | NWL US | 8:00 | Q1 2014 Earnings Call | Q1 2014 | |
| XL Group PLC | XL US | 8:00 | Q1 2014 Earnings Call | Q1 2014 | |
| Chevron Corp | CVX US | 8:30 | Q1 2014 Earnings Release | Q1 2014 | 2.524 |
| Graham Holdings Co | GHC US | 8:30 | Q1 2014 Earnings Release | Q1 2014 | |
| Marsh & McLennan Cos Inc | MMC US | 8:30 | Q1 2014 Earnings Call | Q1 2014 | |
| CVS Caremark Corp | CVS US | 8:30 | Q1 2014 Earnings Call | Q1 2014 | |
| Northeast Utilities | NU US | 9:00 | Q1 2014 Earnings Call | Q1 2014 | |
| Integrys Energy Group Inc | TEG US | 9:00 | Q1 2014 Earnings Call | Q1 2014 | |
| Sempra Energy | SRE US | 9:00 | Q1 2014 Earnings Release | Q1 2014 | 0.948 |
| Alcoa Inc | AA US | 9:30 | Annual General Meeting | Y 2014 | |
| Equifax Inc | EFX US | 9:30 | Annual General Meeting | ||
| Estee Lauder Cos Inc/The | EL US | 9:30 | Q3 2014 Earnings Call | Q3 2014 | |
| Southwestern Energy Co | SWN US | 10:00 | Q1 2014 Earnings Call | Q1 2014 | |
| Mohawk Industries Inc | MHK US | 11:00 | Q1 2014 Earnings Call | Q1 2014 | |
| Chevron Corp | CVX US | 11:00 | Q1 2014 Earnings Call | Q1 2014 | |
| Entergy Corp | ETR US | 11:00 | Annual General Meeting | ||
| Wisconsin Energy Corp | WEC US | 11:00 | Annual General Meeting | ||
| Pinnacle West Capital Corp | PNW US | 12:00 | Q1 2014 Earnings Call | Q1 2014 | |
| Public Storage | PSA US | 13:00 | Q1 2014 Earnings Call | Q1 2014 | |
| Apartment Investment & Management Co | AIV US | 13:00 | Q1 2014 Earnings Call | Q1 2014 | |
| Sempra Energy | SRE US | 13:00 | Q1 2014 Earnings Call | Q1 2014 | |
| Illinois Tool Works Inc | ITW US | 16:00 | Annual General Meeting | Y 2014 | |
| Occidental Petroleum Corp | OXY US | Annual General Meeting | |||
| Berkshire Hathaway Inc | BRK/A US | Q1 2014 Earnings Release | Q1 2014 | 2171.37 | |
| Ryder System Inc | R US | Annual General Meeting | |||
| Consolidated Edison Inc | ED US | Q1 2014 Earnings Release | Q1 2014 | 1.048 | |
| AutoNation Inc | AN US | April 2014 Sales and Revenue Release | 2014 | ||
| FMC Technologies Inc | FTI US | Annual General Meeting | |||
| Merck & Co Inc | MRK US | FDA Adcomm, Singulair Allergy (montelukast 10mg tablet) OTC, allergy |
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