Morning Call 12/7

Barchart Morning Call

Barchart.com - 5 hours ago

OVERNIGHT MARKETS AND NEWS

Dec E-mini S&Ps (ESZ16 +0.01%) are up +0.02% and European stocks are up +1.01% at a 7-1/4 month high on optimism the ECB will prolong QE. Expectations are for the ECB at its monthly meeting tomorrow to extend its monthly asset purchases of 80 billion euros by 6 to 9 months. Also, energy producing stocks are higher with Jan WTI crude oil (CLF17-0.55%) up +0.20% after the API reported late yesterday that U.S. oil inventories fell -2.21 million bbl last week. Market anxiety has also fallen since last month's surprise election of Donald Trump as U.S. President as the VIX volatility index dropped to a 3-1/2 month low today. Asian stocks settled mostly higher: Japan +0.74%, Hong Kong +0.55%, China +0.71%, Taiwan +0.14%, Australia +0.91%, Singapore +0.36%, South Korea +0.28%, India -0.59%. India's S&P Sensex Stock Index erased an early rally and closed down -0.59 % after the Reserve Bank of India unexpectedly kept the benchmark repurchase rate unch at 6.25% when expectations were for a -25 bp cut to 6.00%.

The dollar index (DXY00 -0.03%) is unch. EUR/USD (^EURUSD) is up +0.06%. USD/JPY (^USDJPY) is down -0.04%.

Mar 10-year T-note prices (ZNH17 +0.16%) are up +5.5 ticks.

German Oct industrial production rose +0.3% m/m and +1.2% y/y, weaker than expectations of +0.8% m/m and +1.6% y/y.

UK Oct industrial production unexpectedly fell -1.3% m/m, weaker than expectations of +0.2% m/m and the biggest decline in 4 years.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly MBA mortgage applications (previous -9.4% with purchase sub-index -0.2% and refi sub-index -16.2%), (2) Oct JOLTS job openings (expected +14,000 to 5.500 million, Sep +33,000 to 5.486 million), (3) Oct consumer credit (expected +$18.3 billion, Sep +$19.292 billion), (4) EIA Weekly Petroleum Status Report.

Russell 1000 earnings reports today include: Costco (consensus $1.19), John Wiley (0.66), Brown-Forman (0.50), Casey's General Stores (1.57), H&R Block (-0.68), lululemon athletica (0.43), Orbital ATK (1.39).

U.S. IPO's scheduled to price today: Collplant Holdings (CQPTD).

Equity conferences during the remainder of this week include: UBS Global Media and Communications Conference on Mon-Wed, Goldman Sachs U.S. Financial Services Conference on Tue-Wed, Wells Fargo Pipeline, MLP and Utility Symposium on Wed, Citi Global Health Care Conference on Wed-Thu, Barclays Global Technology, Media and Telecommunications Conference on Wed-Thu, Bernstein Consumer Summit on Wed-Thu, Capital One Southcoast Energy Conference on Wed-Thu, ACI European Biopolymer Summit on Thu.

OVERNIGHT U.S. STOCK MOVERS

Discover Financial Services (DFS +1.38%) was upgraded to 'Outperform' from 'Neutral' at Wedbush with a 12-month target price of $78.

Best Buy (BBY +0.23%) was rated a new 'Buy' at Loop Capital with a price target of $58.

ABIOMED (ABMD +2.72%) was rated a new 'Buy' at Guggenheim Securities with a 12-month target price of $150.

MasterCard (MA -1.50%) gained almost 1% in after-hours trading after it boosted its quarterly dividend to 22 cents a share from 19 cents, and then approved a $4 billion stock buyback program, effective upon completion of a previous program that has $1.3 billion remaining.

Western Digital (WDC +2.83%) rallied over 5% in after-hours trading after it renewed a royalty-bearing cross licensing agreement with Samsung through 2024, and then raised guidance on Q2 adjusted EPS to $2.10-$2.15 from an October 26 view of $1.85-$1.95.

Dave & Buster's Entertainment (PLAY -1.70%) jumped 12% in after-hours trading after it reported Q3 EPS of 25 cents, well above consensus of 14 cents, and then raised guidance on fiscal 2017 comparable store sales to up +3.1%-3.6% from a prior view of +2.25%-3.25%.

Bluebird Bio (BLUE +9.42%) fell over 2% in after-hours trading after it proposed a $200 million stock offering.

HealthEquity (HQY -2.76%) dropped over 4% in after-hours trading after it reported Q3 EPS of 10 cents, below consensus of 12 cents.

AeroVironment (AVAV +2.66%) tumbled nearly 10% in after-hours trading after it reported a Q2 loss per share of -18cents, a much bigger loss than expectations of -1 cent, and then said it sees a Q3 loss per share of -34 cents to -38 cents, more than consensus of -24 cents.

Ensco PLC (ESV +4.55%) declined over 6% in after-hours trading after it started a private placement of $650 million senior notes due 2014.

Sigma Designs (SIGM +1.31%) sank over 10% in after-hours trading after it said it expects Q4 revenue of $42 million-$45 million, weaker than consensus of $57.4 million.

TerraForm Power (TERP +1.83%) slid nearly 2% in after-hours trading after it said it sees completing the rest of its 2016 filings and regaining full compliance by March.

MARKET COMMENTS

Dec E-mini S&Ps (ESZ16 +0.01%) this morning are up +0.50 of a point (+0.02%). Tuesday's closes: S&P 500 +0.34%, Dow Jones +0.18%, Nasdaq +0.22%. The S&P 500 on Tuesday closed higher on carry-over support from a rally in European stocks to a 3-week high on expectations that the ECB this Thursday will extend QE past March of next year. Stocks were also boosted by the +2.7% increase in U.S. Oct factory orders, stronger than expectations of +2.6% and the biggest increase in 16 months. Stocks were undercut by the U.S. Oct trade deficit of -$42.6 billion, which was wider than expectations of -$42.0 billion and was negative for Q4 GDP. There was also weakness in energy producer stocks as crude oil prices fell -1.70%.

Mar 10-year T-notes (ZNH17 +0.16%) this morning are up +5.5 ticks. Tuesday's closes: TYH7 unch, FVH7 +1.00. Mar 10-year T-notes on Tuesday closed little changed. T-notes were boosted by the the wider-than-expected U.S. Oct trade deficit, which was negative for Q4 GDP. T-notes were also boosted by the slide in crude oil prices, which undercut inflation expectations. T-note prices were undercut by the +2.7% increase in U.S. Oct factory orders, their biggest increase in 16 months.

The dollar index (DXY00 -0.03%) this morning is unch. EUR/USD (^EURUSD) is +0.0006 (+0.06%). USD/JPY (^USDJPY) is -0.05 (-0.04%). Tuesday's closes: Dollar index +0.400 (+0.40%), EUR/USD -0.0046 (-0.43%), USD/JPY +0.17 (+0.15%). The dollar index on Tuesday closed higher on the stronger than expected U.S. Oct factory orders report and by weakness in EUR/USD on expectations that the ECB on Thursday will announce an extension of QE beyond March of 2017.

Jan WTI crude oil prices (CLF17 -0.55%) this morning are up +10 cent s(+0.20%) and Jan gasoline (RBF17 -0.18%) is +0.0064 (+0.42%). Tuesday's closes: Jan crude -0.88 (-1.70%), Jan gasoline -0.0158 (-1.01%). Jan crude oil and gasoline on Tuesday closed lower on a stronger dollar and on news that OPEC Nov crude production rose by +200,000 bpd to a record 34.160 million bpd.

GLOBAL EVENT CALENDAR12/07/2016

		Wednesday, Dec 7
US	0700 ET	Weekly MBA mortgage applications, previous -9.4% with purchase sub-index -0.2% and refi sub-index -16.2%.
	1000 ET	Oct JOLTS job openings expected +14,000 to 5.500 million, Sep +33,000 to 5.486 million.
	1030 ET	EIA Weekly Petroleum Status Report.
	1500 ET	Oct consumer credit expected +$18.3 billion, Sep +$19.292 billion.
		Thursday, Dec 8
US	0830 ET	Weekly initial unemployment claims expected -13,000 to 255,000, previous +17,000 to 268,000. Weekly continuing claims expected -33,000 to 2.048 million, previous +38,000 to 2.081 million.
	0830 ET	USDA weekly Export Sales.
	1100 ET	Treasury announces amount of 3-year T-notes (previous $24 billion), 10-year T-notes (previous $23 billion) and 30-year T-bonds (previous $15 billion) to be auctioned Dec 12-13.

U.S. STOCK CALENDAR12/07/2016

Company	Ticker	Time	Event Description	Period	Estimate
Brown-Forman Corp	BF/B US	8:00	Q2 2017 Earnings Release	Q2 2017	0.498
Starbucks Corp	SBUX US	8:00	Investor Day	Y 2016
Principal Financial Group Inc	PFG US	8:00	Roadshow	Y 2016
Xerox Corp	XRX US	9:00	Investor Conference	Y 2016
Brown-Forman Corp	BF/B US	10:00	Q2 2017 Earnings Call	Q2 2017
Lowe's Cos Inc	LOW US	10:00	Analyst & Investor Conference	Y 2016
H&R Block Inc	HRB US	16:30	Q2 2017 Earnings Call	Q2 2017
Costco Wholesale Corp	COST US	17:00	Q1 2017 Earnings Call	Q1 2017
H&R Block Inc	HRB US	Aft-mkt	Q2 2017 Earnings Release	Q2 2017	-0.675
Costco Wholesale Corp	COST US	Aft-mkt	Q1 2017 Earnings Release	Q1 2017	1.187
Baker Hughes Inc	BHI US		November 2016 Sales and Revenue Release - Rig Counts	2016
Equifax Inc	EFX US		Investor Meeting	Y 2016

MORNING CALL 4/25

MORNING CALL

Monday, April 25th, 2016View Older Reports

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OVERNIGHT MARKETS AND NEWS

Jun E-mini S&Ps (ESM16 -0.07%) are down -0.11% and European stocks are down -0.46% as crude oil and metals prices fall. Marathon Oil is down over 2% in pre-market trading to lead energy producing stocks lower and Freeport McMoRan and Alcoa are both down over 1% in pre-market trading to lead raw-material producers lower. Another negative for European stocks was an unexpected decline in German Apr IFO business confidence. Asian stocks settled mostly lower: Japan -0.76%, Hong Kong -0.76%, China -0.42%, Taiwan +0.29%, Australia closed for holiday, Singapore -1.37%, South Korea -0.08%, India -0.62%. Chinese stocks closed lower as material companies fell after commodity exchanges in Zhengzhou and Dalian announced late Friday that they will raise margin requirements on futures contracts of cotton and thermal coal, which followed hikes of margins in steel reinforcement-bar iron and iron ore contracts earlier last week. Recent stronger-than-expected Chinese economic data has reduced the odds of further easing and led to increased speculation in Chinese commodity markets. Japan's Nikkei Stock Index retreated from a 2-3/4 month high and closed lower after USD/JPY fell back from a 3-week high and moved lower, which curbs the earnings prospects of Japanese exporters.

The dollar index (DXY00 -0.35%) is down -0.23%. EUR/USD (^EURUSD) is up +0.34%. USD/JPY (^USDJPY) is down -0.63%.

Jun T-note prices (ZNM16 +0.11%) are up +3 ticks.

The German Apr IFO business climate unexpectedly fell -0.1 to 106.6, weaker than expectations of +0.4 to 107.1.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Mar new home sales (expected +1.6% to 520,000, Feb +2.0% to 512,000), (2) Apr Dallas Fed manufacturing activity (expected +3.6 to -10.0, Mar +18.2 to -13.6), and (3) the Treasury's auction of $26 billion of 2-year T-notes.

There are 5 of the S&P 500 companies that report earnings today with notable reports including: Halliburton (consensus $0.04), Lab Corp of America (1.95), Roper Technologies (1.46), Xerox (0.23), Express Scripts (1.22), Pioneer Natural Resources (-0.75).

U.S. IPO's scheduled to price today: none.

Equity conferences this week include: Nomura Retail and Restaurants Conference on Wed.

OVERNIGHT U.S. STOCK MOVERS

Marathon OIL (MRO +3.46%) slid over 2% in pre-market trading as the price of crude oil fell.

Public Storage (PSA +0.73%) dropped over 1% in pre-market trading after it was downgraded to 'Sell' form 'Neutral' at Goldman Sachs.

Freeport McMoRan (FCX +1.30%) and Alcoa (AA -0.19%) are both down over 1% in pre-market trading as the price of copper declined.

PulteGroup (PHM -0.42%) was downgraded to 'Market Perform' from 'Outperform' at Raymond James.

L Brands (LB -0.58%) was upgraded to 'Buy' from 'Hold' at Stifel with a price target of $90.

Hub Group (HUBG +2.26%) was downgraded to 'Hold' from 'Buy' at BB&T Capital Markets.

Jazz Pharmaceuticals Plc (JAZZ +0.67%) was upgraded to 'Buy' from 'Neutral' at SunTrust with a price target of $200.

Discovery Communications (DISCK +0.98%) was downgraded to 'Hold' from 'Buy' at Topeka Capital Markets.

Joy Global (JOY -0.82%) was upgraded to 'Neutral' from 'Sell' at Goldman Sachs.

International Paper (IP +1.86%) was downgraded to 'Sector Perform' from 'Outperform' at RBC Capital Markets.

Halliburton (HAL +1.26%) reported Q1 revenue of $4.2 billion, higher than consensus of $4.15 billion, said it cut over 6,000 jobs in Q1, and took a $2.1 billion after-tax restructuring charge in Q1.

Inflobox (BLOX +1.52%) jumped almost 6% in after-hours trading after Starboard Value reported a 7.5% stake in the company.

Cabot Oil & Gas (COG +1.88%) fell nearly 3% in after-hours trading after the New York Department of Environmental Conservation denied a key water permit for the Constitution gas pipeline.

MARKET COMMENTS

June E-mini S&Ps (ESM16 -0.07%) this morning are down -2.25 points (-0.11%). Friday's closes: S&P 500 unch, Dow Jones +0.12%, Nasdaq -1.47%. The S&P 500 on Friday closed little changed. Stocks were boosted by strength in bank stocks and by a rally in mining stocks and energy producers after copper prices rose to a 1-month high and crude oil prices gained. Stocks were undercut by the unexpected -0.7 point decline in the U.S. Apr Markit manufacturing PMI to 50.8 (weaker than expectations of +0.5 to 52.0) and by a slide in technology as the Nasdaq fell to a 1-1/2 week low after Microsoft and Alphabet both reported disappointing earnings results.

June 10-year T-note prices (ZNM16 +0.11%) this morning are up +3 ticks. Friday's closes: TYM6 -4.50, FVM6 -2.75. Jun T-notes on Friday fell to a 3-week low and closed lower on the rise in the 10-year T-note breakeven inflation expectations rate to a 3-week high and on reduced safe-haven demand as stocks recovered from early losses.

The dollar index (DXY00 -0.35%) this morning is down -0.215 (-0.23%). EUR/USD (^EURUSD) is up +0.0038 (+0.34%). USD/JPY (^USDJPY) is is down -0.70 (-0.63%). Friday's closes: Dollar Index +0.517 (+0.55%), EUR/USD -0.0066 (-0.58%), USD/JPY +2.33 (+2.12%). The dollar index on Friday closed higher on the rally in USD/JPY to a 2-1/2 week high on speculation the BOJ will boost stimulus measures when it meets Apr 27-28 in an attempt to weaken the yen. In addition, EUR/USD saw weakness on the unexpected decline in the Eurozone Apr Markit manufacturing PMI (-0.1 versus expectations of +0.3).

June WTI crude oil (CLM16 -0.75%) this morning is down -39 cents (-0.89%). June gasoline (RBM16 -0.80%) is down -0.0119 (-0.77%). Friday's closes: CLM6 +0.57 (+1.32%), RBM6 +0.0162 (+1.06%). Jun crude and gasoline on Friday closed higher with Jun gasoline at a 3-1/2 month high. Crude oil prices were boosted by the outlook for U.S. crude production to continue to decline after Baker Hughes reported that the number of active U.S. oil rigs fell -8 to a 6-1/2 year low of 343 rigs in the week ended Apr 22. In addition, the International Energy Agency forecast that non-OPEC oil production will drop about -700,000 bpd this year.

GLOBAL EVENT CALENDAR04/25/2016

US	1000 ET	Mar new home sales expected +1.6% to 520,000, Feb +2.0% to 512,000.
	1030 ET	Apr Dallas Fed manufacturing activity expected +3.6 to -10.0, Mar +18.2 to -13.6.
	1100 ET	USDA weekly grain export inspections.
	1300 ET	Treasury auctions $26 billion of 2-year T-notes.
	1600 ET	USDA Weekly Crop Progress.
JPN	0100 ET	Revised Japan Feb leading index CI, preliminary 99.8. Revised Feb coincident index, preliminary 110.3.
GER	0400 ET	German Apr IFO business climate expected +0.3 to 107.0, Mar 106.7. Apr IFO current assessment expected -0.1 to 113.7. Apr IFO expectations expected +0.9 to 100.9, Mar 100.0.
UK	0600 ET	UK Apr CBI trends total orders expected -3 to -17, Mar -14. Apr CBI business optimism, Mar -4. Apr CBI trends selling prices, Mar -1.

U.S. STOCK CALENDAR04/25/2016

Company	Ticker	Time	Event Description	Period	Estimate
Halliburton Co	HAL US	Bef-mkt	Q1 2016 Earnings Release	Q1 2016	0.042
Laboratory Corp of America Holdings	LH US	Bef-mkt	Q1 2016 Earnings Release	Q1 2016	1.954
Roper Technologies Inc	ROP US	Bef-mkt	Q1 2016 Earnings Release	Q1 2016	1.461
Xerox Corp	XRX US	7:00	Q1 2016 Earnings Release	Q1 2016	0.23
United Technologies Corp	UTX US	8:00	Annual General Meeting
Roper Technologies Inc	ROP US	8:30	Q1 2016 Earnings Call	Q1 2016
Laboratory Corp of America Holdings	LH US	9:00	Q1 2016 Earnings Call	Q1 2016
Xerox Corp	XRX US	10:00	Q1 2016 Earnings Call	Q1 2016
Honeywell International Inc	HON US	10:30	Annual General Meeting	Y 2016
NVIDIA Corp	NVDA US	17:00	ITC Final Decision Due in Samsung vs. Nvidia Patent-Infringement Case
UDR Inc	UDR US	Aft-mkt	Q1 2016 Earnings Release	Q1 2016	0.431
Express Scripts Holding Co	ESRX US	Aft-mkt	Q1 2016 Earnings Release	Q1 2016	1.218
Zions Bancorporation	ZION US	Aft-mkt	Q1 2016 Earnings Release	Q1 2016	0.393
Pioneer Natural Resources Co	PXD US	Aft-mkt	Q1 2016 Earnings Release	Q1 2016	-0.747
Zions Bancorporation	ZION US	17:30	Q1 2016 Earnings Call	Q1 2016
Genuine Parts Co	GPC US		Annual General Meeting
Public Storage	PSA US		Annual General Meeting
Hanesbrands Inc	HBI US		Annual General Meeting

MORNING CALL 1/29

MORNING CALL

Friday, January 29th, 2016View Older Reports

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OVERNIGHT MARKETS AND NEWS

March E-mini S&Ps (ESH16 +0.84%) are up +0.76% and European stocks are up +0.78% as global stock and bond markets rallied after the BOJ unexpectedly adopted a negative interest rate. Also, Microsoft is up over 3% in pre-market trading after it reported better-than-expected earnings results after the close of trade yesterday, which gave technology stocks a lift. The BOJ's action to adopt a negative interest rate sent global bond yield tumbling with the 10-year Japanese bond yield down to a record low .090%, the German 10-year bund yield down to a 9-month low 0.334% and the U.S. T-note yield down to a 3-1/2 month low of 1.92%. Asian stocks settled higher: Japan +2.80%, Hong Kong +2.54%, China +3.09%, Taiwan +2.22%, Australia +0.59%, Singapore +2.60%, South Korea +0.25%, India +1.64%.

The dollar index (DXY00 +0.59%) is up +0.56%. EUR/USD (^EURUSD) is down -0.16%. USD/JPY (^USDJPY) is up +1.75% at a 5-week high as the BOJ's action to adopt a negative interest rate undercut the yen.

Mar T-note prices (ZNH16 +0.39%) are up +19 ticks at a contract high.

The BOJ unexpectedly voted 5-4 to put an interest rate of -0.1% on reserves held at the BOJ worth 10 trillion yen to 30 trillion yen initially and will apply only to new reserves that financial institutions deposit at the BOJ. BOJ Governor Kuroda said the BOJ "won't hesitate" to add further monetary stimulus if needed and has scope to make deeper cuts to the negative rate or to increase its asset purchases.

Japan Dec industrial production fell -1.4% m/m, weaker than expectations of -0.3% m/m and the biggest decline in 7 months.

Japan Dec overall household spending fell -4.4% y/y, weaker than expectations of -2.5% y/y and the biggest decline in 9 months.

The Eurozone Jan CPI estimate rose +0.4% y/y, right on expectations. Jan core CPI rose +1.0% y/y, higher than expectations of +0.9% y/y.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Q4 GDP expected +0.8% (q/q annualized), Q3 +2.0%) and Q4 personal consumption (expected +1.8%, Q3 +3.0%), (2) Q4 employment cost index (expected +0.6%, Q3 +0.6%), (3) Jan Milwaukee ISM (expected +1.47 to 50.00, Dec +3.19 to 48.53), (4) Jan Chicago PMI (expected +2.4 to 45.3, Dec -5.8 to 42.9), (5) University of Michigan final-Jan U.S. consumer sentiment index (expected -0.3 to 93.0, prelim-Jan +0.7 to 93.3), (6) San Francisco Fed President John Williams's speech at the Commonwealth Club in San Francisco.

There are 18 of the S&P 500 companies that report earnings today with notable reports including: MasterCard (consensus $0.70), American Airlines (1.97), Honeywell (1.58), Chevron (0.47), Phillips 66 (1.26),

U.S. IPO's scheduled to price today: Shimmick Construction (SCCI).

Equity conferences during the remainder of this week: none.

OVERNIGHT U.S. STOCK MOVERS

Microsoft (MSFT +1.64%) is up over 3% in pre-market trading after it reported Q2 adjusted EPS of 78 cents, above consensus of 71 cents.

Amazon.com (AMZN +8.91%) slumped over 10% in pre-market trading after it reported Q4 EPS of $1.00, well below consensus of $1.55, and said it sees Q1 operating income pf $100 million-$700 million, below consensus of $731.7 million.

Electronic Arts (EA +0.43%) tumbled 8% in pre-market trading after it said it sees Q4 adjusted EPS of 40 cents, below consensus of 50 cents, and then forecast fiscal 2016 adjusted EPS of $3.04, below consensus of $3.11.

Colgate-Palmolive (CL +1.12%) reported Q4 EPS of 73 cents, better than consensus of 72 cents.

Phillips 66 (PSX +1.25%) reported Q4 EPS of $1.31, higher than consensus og $1.26.

Amgen (AMGN -1.41%) rose over 1% in after-hours trading after it reported Q4 adjusted EPS of $2.61, higher than consensus of $2.29, and then raised guidance on fiscal 2016 adjusted EPS to $10.60-$11.00 from a November estimate of $10.35-$10.75, above consensus of $10.66.

Western Digital (WDC +4.63%) slid over 1% in after-hours trading after it forecast Q3 sales of $2.8 billion-$2.9 billion, below consensus of $3.23 billion.

Visa (V -2.23%) gained over 2% in after-hours trading after it reported Q1 adjusted EPS of 69 cents, higher than consensus of 68 cents.

Synaptics (SYNA -1.18%) fell nearly 2% in after-hours trading after it reported Q2 revenue of $470.5 million, below consensus of $477.9 million, and then lowered guidance on Q3 revenue to $430 million-$470 million, less than consensus of $501.4 million.

QLogic (QLGC +2.38%) surged over 10% in after-hours trading after it reported Q3 non-GAAP EPS of 33 cents, above consensus of 26 cents, and then raised guidance on Q4 adjusted EPS to 23 cents-27 cents, higher than consensus of 23 cents.

Fortinet (FTNT +2.05%) jumped over 7% in after-hours trading after it raised guidance on fiscal 2016 adjusted EPS to 67 cents-69 cents, above consensus of 67 cents.

Flextronics (FLEX -0.63%) climbed 4% in after-hours trading after it reported Q3 adjusted EPS of 35 cents, higher than consensus of 30 cents.

Skyworks Solutions (SWKS +4.26%) fell over 4% in after-hours trading after it reported Q1 adjusted EPS of $1.60, better than consensus of $1.58, but then lowered guidance on Q2 adjusted EPS to $1.24, below consensus of $1.32.

According to the WSJ, Xerox (XRX unch) will split itself into two companies; one company grouping hardware operations, and another that will house its service business.

MARKET COMMENTS

Mar E-mini S&Ps (ESH16 +0.84%) this morning are up +14.25 points (+0.76%). Thursday's closes: S&P 500 +0.55%, Dow Jones +0.79%, Nasdaq +1.39%. The S&P 500 on Thursday closed higher on the rally in crude oil to a 3-week high, which lifted energy producing stocks, and the -16,000 decline in U.S. weekly initial unemployment claims to 278,000, a bigger decline than expectations of -12,000 to 281,000. Stocks were undercut by (1) concern that companies are cutting back on capital investment after U.S. Dec capital goods orders non-defense ex-aircraft fell -4.3%, weaker than expectations of -0.2% and the biggest decline in 10 months, and (2) the +0.1% m/m and +3.1% y/y increase in U.S. Dec pending home sales, weaker than expectations of +0.9% m/m and +4.8% y/y.

Mar 10-year T-notes (ZNH16 +0.39%) this morning are up +19 ticks at a contract high. Thursday's closes: TYH6 +5.50, FVH6 +4.00. Mar T-notes on Thursday closed higher on carryover support from a rally in German bunds to an 8-1/2 month high and on the weaker-than-expected U.S. Dec durable goods orders. T-notes were undercut by reduced safe-haven demand with the rally in stocks and by the rally in crude that boosted inflation expectations after the 10-year T-note breakeven inflation rate rose to a 1-week high.

The dollar index (DXY00 +0.59%) this morning is up +0.555 (+0.56%). EUR/USD (^EURUSD) is down -0.0018 (-0.16%). USD/JPY (^USDJPY) is up +2.08 (+1.75%) at a 5-week high. Thursday's closes: Dollar Index -0.392 (-0.40%), EUR/USD +0.0047 (+0.43%), USD/JPY +0.14 (+0.12%). The dollar index on Thursday dropped to a 2-week low and closed lower on negative carryover from Wednesday's post-FOMC meeting statement that adopted more dovish language and on the weaker-than-expected U.S. Dec durable goods orders report, which adds to evidence of slowing growth that may further delay additional Fed rate hikes.

Mar crude oil (CLH16 +0.93%) this morning is up +7 cents (+0.21%) and Mar gasoline (RBH16 -0.21%) is down -0.0060 (-0.55%). Thursday's closes: CLH6 +1.42 (+4.40%), RBH6 +0.0536 (+5.02%). Mar crude oil and gasoline on Thursday closed sharply higher with Mar crude at a 3-week high and Mar gasoline at a 2-1/2 week high. Crude oil prices were boosted by the fall in the dollar index to a 2-week low and by heavy fund short covering after Russia’s Energy Minister said he may meet with OPEC next month to discuss a potential coordinated cut in crude output.

GLOBAL EVENT CALENDAR01/29/2016

US	0830 ET	Q4 GDP expected +0.8% (q/q annualized), Q3 +2.0%. Q4 personal consumption expected +1.8%, Q3 +3.0%. Q4 GDP price index expected +0.8%, Q3 +1.3%. Q4 core PCE deflator expected +1.2% q/q, Q3 +1.4% q/q.
	0830 ET	Q4 employment cost index expected +0.6%, Q3 +0.6%.
	0830 ET	USDA weekly Export Sales.
	0900 ET	Jan Milwaukee ISM expected +1.47 to 50.00, Dec +3.19 to 48.53.
	0945 ET	Jan Chicago PMI expected +2.4 to 45.3, Dec -5.8 to 42.9.
	1000 ET	University of Michigan final-Jan U.S. consumer sentiment index expected -0.3 to 93.0, prelim-Jan +0.7 to 93.3.
	1500 ET	USDA bi-annual Cattle inventory.
	1530 ET	San Francisco Fed President John Williams speaks at the Commonwealth Club in San Francisco.
JPN	0000 ET	Japan Dec housing starts expected +0.5% y/y to 888,000 annualized, Nov +1.7% y/y to 886,000 annualized.
	0000 ET	Japan Dec construction orders, Nov +5.7% y/y.
	n/a	BOJ announces interest rate decision.
GER	0200 ET	German Dec retail sales expected +0.4% m/m and +1.9% y/y, Nov +0.4% m/m and +2.3% y/y.
EUR	0400 ET	Eurozone Dec M3 money supply expected +5.2% y/y, Nov +5.1% y/y.
	0500 ET	Eurozone Jan CPI estimate expected +0.4% y/y, Dec +0.2% y/y. Jan core CPI expected +0.9% y/y, Dec +0.9% y/y.

U.S. STOCK CALENDAR01/29/2016

Company	Ticker	Time	Event Description	Period	Estimate
Air Products & Chemicals Inc	APD US	Bef-mkt	Q1 2016 Earnings Release	Q1 2016	1.705
Honeywell International Inc	HON US	Bef-mkt	Q4 2015 Earnings Release	Q4 2015	1.584
American Airlines Group Inc	AAL US	Bef-mkt	Q4 2015 Earnings Release	Q4 2015	1.969
Chevron Corp	CVX US	Bef-mkt	Q4 2015 Earnings Release	Q4 2015	0.473
Colgate-Palmolive Co	CL US	Bef-mkt	Q4 2015 Earnings Release	Q4 2015	0.72
Newell Rubbermaid Inc	NWL US	Bef-mkt	Q4 2015 Earnings Release	Q4 2015	0.563
Praxair Inc	PX US	Bef-mkt	Q4 2015 Earnings Release	Q4 2015	1.468
Tyco International Plc	TYC US	Bef-mkt	Q1 2016 Earnings Release	Q1 2016	0.42
PACCAR Inc	PCAR US	Bef-mkt	Q4 2015 Earnings Release	Q4 2015	1.018
Simon Property Group Inc	SPG US	Bef-mkt	Q4 2015 Earnings Release	Q4 2015	2.386
Seagate Technology PLC	STX US	Bef-mkt	Q2 2016 Earnings Release	Q2 2016	0.71
MasterCard Inc	MA US	Bef-mkt	Q4 2015 Earnings Release	Q4 2015	0.695
AbbVie Inc	ABBV US	Bef-mkt	Q4 2015 Earnings Release	Q4 2015	1.121
Baxalta Inc	BXLT US	Bef-mkt	Q4 2015 Earnings Release	Q4 2015	0.556
Whirlpool Corp	WHR US	6:00	Q4 2015 Earnings Release	Q4 2015	3.91
CONSOL Energy Inc	CNX US	6:45	Q4 2015 Earnings Release	Q4 2015	-0.093
Xerox Corp	XRX US	7:00	Q4 2015 Earnings Release	Q4 2015	0.283
Phillips 66	PSX US	7:00	Q4 2015 Earnings Release	Q4 2015	1.257
Tyco International Plc	TYC US	8:00	Q1 2016 Earnings Call	Q1 2016
Eastman Chemical Co	EMN US	8:00	Q4 2015 Earnings Call	Q4 2015
American Airlines Group Inc	AAL US	8:30	Q4 2015 Earnings Call	Q4 2015
Newell Rubbermaid Inc	NWL US	8:30	Q4 2015 Earnings Call	Q4 2015
Seagate Technology PLC	STX US	9:00	Q2 2016 Earnings Call	Q2 2016
MasterCard Inc	MA US	9:00	Q4 2015 Earnings Call	Q4 2015
AbbVie Inc	ABBV US	9:00	Q4 2015 Earnings Call	Q4 2015
WestRock Co	WRK US	9:00	Q1 2016 Earnings Call	Q1 2016
Honeywell International Inc	HON US	9:30	Q4 2015 Earnings Call	Q4 2015
Air Products & Chemicals Inc	APD US	10:00	Q1 2016 Earnings Call	Q1 2016
Whirlpool Corp	WHR US	10:00	Q4 2015 Earnings Call	Q4 2015
Xerox Corp	XRX US	10:00	Q4 2015 Earnings Call	Q4 2015
CONSOL Energy Inc	CNX US	10:00	Q4 2015 Earnings Call	Q4 2015
Chevron Corp	CVX US	11:00	Q4 2015 Earnings Call	Q4 2015
Colgate-Palmolive Co	CL US	11:00	Q4 2015 Earnings Call	Q4 2015
Praxair Inc	PX US	11:00	Q4 2015 Earnings Call	Q4 2015
Simon Property Group Inc	SPG US	11:00	Q4 2015 Earnings Call	Q4 2015
PACCAR Inc	PCAR US	12:00	Q4 2015 Earnings Call	Q4 2015
Phillips 66	PSX US	12:00	Q4 2015 Earnings Call	Q4 2015
Monsanto Co	MON US	14:30	Annual General Meeting	Y 2016
Broadcom Corp	BRCM US	Aft-mkt	Federal Realty Investment Trust Replaces Broadcom Corp in S&P 500
Walt Disney Co/The	DIS US		U.S. Box Office Release of Movie The Finest Hours""
Twenty-First Century Fox Inc	FOXA US		U.S. Box Office Release of Movie Kung Fu Panda 3""
Costco Wholesale Corp	COST US		Annual General Meeting