Showing posts with label YUMC. Show all posts
Showing posts with label YUMC. Show all posts

Friday, October 6, 2017

Morning Call 10/6

Barchart Morning Call

OVERNIGHT MARKETS AND NEWS
Dec E-mini S&Ps (ESZ17 -0.06%) this morning are down -0.04% ahead of this morning's U.S. Sep payrolls report as the market consolidates this week's sharp gains to a new record high Thursday. European stocks are down -0.22%, led by losses in Spanish banks, as the financial and political squeeze on the separatist government in Catalonia tightens. Catalan President Puigdemont risks economic damage and isolation if he goes ahead with plans to declare independence based on a referendum that was considered illegal under Spain's constitution. Other Spanish companies may join Spain's banks in deciding to relocate their headquarters out of Catalonia as the crisis persists. Losses in European stocks were limited on signs of strength in the German economy, Europe's largest, after German Aug factory orders rose +3.6% m/m, the biggest increase in 8-months. GBP/USD tumbled -0.40% to a 4-week low on concern the political movement in the UK to try to remove Prime Minister May from power would throw the Brexit negotiations into chaos. Asian stocks settled higher: Japan +0.30%, Hong Kong +0.28%, Taiwan +0.14%, Australia +1.04%, Singapore +0.90%, India +0.70%. China and South Korea remain closed for holidays. Japan's Nikkei Stock Index climbed to a new 2-year high on carry-over support from the rally in U.S. stocks Thursday to a record high.
The dollar index (DXY00 +0.01%) is up +0.04% at a 1-1/2 month high. EUR/USD (^EURUSD) is down -0.04% at a 1-1/2 month low as the political crisis in Spain weighs on the euro. USD/JPY (^USDJPY) is up +0.10%.
Dec 10-year T-note prices (ZNZ17 -0.11%) are down -4 ticks.
UK Q2 unit labor costs rose +1.6% y/y, the slowest pace of increase since Q4 of 2015.
Japan Aug labor cash earnings rose +0.9% y/y, stronger than expectations of +0.5% y/y and the biggest increase in 13-months.
The Japan Aug leading index CI rose +1.6 to 106.8, weaker than expectations of +1.9 to 107.1 but still a 3-1/2 year high. The Aug coincident index rose +1.9 to 117.6, stronger than expectations of +1.8 to 117.5.
German Aug factory orders jumped +3.6% m/m, stronger than expectations of +0.7% m/m and the largest increase in 8-months.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) Sep non-farm payrolls (expected +80,000, Aug +156,000) and Sep unemployment rate (expected unch at 4.4%, Aug +0.1 to 4.4%), (2) Sep avg hourly earnings (expected +0.3% m/m and +2.5% y/y, Aug +0.1% m/m and +2.5% y/y), (3) Atlanta Fed President Raphael Bostic (non-voter) speaks at the “Investing in America’s Workforce” conference, (4) Aug wholesale trade sales (expected unch m/m, Jul -0.1% m/m), (5) New York Fed President William Dudley (voter)will deliver a speech on “The Monetary Policy Outlook and the Importance of Higher Education for Economic Mobility” at an event in New York, (6) Dallas Fed President Robert Kaplan (voter) speaks in a moderated Q&A at an “Investing in America’s Workforce” conference in Dallas, (7) Aug consumer credit expected +$15.54 billion, Jul +$18.499 billion.
Notable Russell 1000 earnings reports today include: Costco (consensus $2.02), Constellation Brands (2.17), Global Payments (1.10), Yum China Holdings (0.56).
U.S. IPO's scheduled to price today: Switch (SWCH).
Equity conferences this week: Petaluma Area Chamber of Commerce Business Conference on Fri.
OVERNIGHT U.S. STOCK MOVERS
Goldman Sachs (GS +2.39%) was downgraded to 'Market Perform' from 'Market Outperform' at Vining Sparks.
Bank of America (BAC +1.63%) was downgraded to 'Market Outperform' from 'Strong Buy' at Vining Sparks.
Albemarle (ALB +1.04%) was downgraded to 'Neutral' from 'Buy' at Goldman Sachs.
Kraft Heinz (KHC +0.62%) was upgraded to 'Overweight' from 'Neutral' at Piper Jaffray with a price target of $90.
Microchip (MCHP -0.33%) was initiated as a new 'Buy' at Argus with a price target of $106.
Marathon Petroleum (MPC -0.11%) was upgraded to 'Buy' from 'Hold' at Edward Jones with a price target of $63.
Green Dot (GDOT +2.71%) was initiated with a 'Buy' rating at Craig-Hallum with a price target of $70.
Valero Energy (VLO -0.54%) was downgraded to 'Neutral' from 'Overweight' at JPMorgan Chase.
HollyFrontier (HFC -2.56%) was downgraded to 'Underweight' from 'Neutral' at JPMorgan Chase.
Yum China Holdings (YUMC +0.20%) climbed almost 4% in after-hours trading after it reported Q3 revenue of $2.04 billion, higher than consensus of $1.98 billion.
Costco Wholesale (COST +1.13%) fell over 1% in after-hours trading even after it reported Q4 revenue of $43.3 billion, better than consensus of $41.62 billion.
Annaly Capital Management (NLY +0.41%) slid nearly 3% in after-hours trading after it announced that it intends to make a public offering of 65 million shares of its common stock.
Synchronoss Technologies (SNCR -0.09%) surged nearly 20% in after-hours trading after it entered into an exclusivity pact with Siris Capital Group.
MARKET COMMENTS
Dec S&P 500 E-mini stock futures (ESZ17 -0.06%) this morning are down -1.00 point (-0.04%). Thursday's closes: S&P 500 +0.56%, Dow Jones +0.50%, Nasdaq +0.97%. The S&P 500 on Thursday accelerated up to a new record high and settled higher on the -12,000 fall in U.S. weekly jobless claims to 260,000, a bigger decline than expectations of -7,000 to 265,000, and on the U.S. Aug factory orders report of +1.2%, stronger than expectations of +1.0%. There was also strength in energy stocks after crude oil prices rose +1.62%.
Dec 10-year T-note prices (ZNZ17 -0.11%) this morning are down -4 ticks. Thursday's closes: TYZ7 -5.50, FVZ7 -3.75. Dec 10-year T-notes on Thursday closed lower on the stronger-than-expected U.S. Aug factory orders report of +1.2%, and on comments from Philadelphia Fed President Harker who said that he has already "penciled in" a third 25 bp Fed rate hike in Dec and that he projects three more rate increases in 2018. T-notes were also undercut by reduced safe-haven demand with the rally in the S&P 500 to a new record high.
The dollar index (DXY00 +0.01%) this morning is up +0.038 (+0.04%) at a 1-1/2 month high. EUR/USD (^EURUSD) is down -0.0005 (-0.04%) at a 1-1/2 month low and USD/JPY (^USDJPY) is up +0.11 (+0.10%). Thursday's closes: Dollar Index +0.503 (+0.54%), EUR/USD -0.0048 (-0.41%), USD/JPY +0.06 (+0.05%). The dollar index on Thursday closed higher on hawkish comments from Philadelphia Fed President Harker who said he has already "penciled in" a third 25 bp rate hike by the Fed in Dec. The dollar index was also boosted by the increase in 10-year T-note yields, which boosts the dollar's interest rate differentials.
Nov crude oil (CLX17 -0.91%) this morning is down -53 cents (-1.04%) and Nov gasoline (RBX17 +0.24%) is +0.0007 (+0.04%). Thursday's closes: Nov WTI crude +0.81 (+1.62%), Nov gasoline +0.0309 (+1.96%). Nov crude oil and gasoline on Thursday closed higher with Nov gasoline at a 1-week high. Crude oil prices were supported by the prospects for an extension of crude oil production cuts between OPEC and Russia after Saudi King Salman bin Abdulaziz made a trip to Moscow to meet Russian President Putin and said Saudi Arabia wants to continue cooperation with Russia to maintain stability on the world oil market. Crude oil prices were also boosted by the increase in the crack spread to a 1-week high, which gives incentive for refiners to increase their crude purchases to refine crude oil into gasoline.
Metals prices this morning are mixed with Dec gold (GCZ17 -0.13%) -1.5 (-0.12%), Dec silver (SIZ17 -0.02%) -0.003 (-0.02%) and Dec copper (HGZ17 -0.05%) +0.002 (+0.05%) at a 3-week high. Thursday's closes: Dec gold -3.6 (-0.28%), Dec silver +0.014 (+0.08%), Dec copper +0.0875 (+2.96%). Metals on Thursday settled mixed with Dec copper at a 3-week high. Metals prices were boosted by the stronger-than-expected U.S. Aug factory orders report of +1.2% that was positive for industrial metals demand, and by the -2,450 MT decline in LME copper inventories, a sign of tighter supplies. Metals prices were undercut by a stronger dollar and by reduced safe-haven demand for stocks with the rally in the S&P 500 to a new record high.
GLOBAL EVENT CALENDAR10/06/2017
Friday, Oct 6
US0830 ETSep non-farm payrolls expected +80,000, Aug +156,000. Sep private payrolls expected +72,000, Aug +165,000. Sep manufacturing payrolls expected +8,000, Aug +36,000. Sep unemployment rate expected unch at 4.4%, Aug +0.1 to 4.4%.
0830 ETSep avg hourly earnings expected +0.3% m/m and +2.5% y/y, Aug +0.1% m/m and +2.5% y/y. Sep avg weekly hours all-employees expected unch at 34.4 hours, Aug -0.1 to 34.4 hours.
0915 ETAtlanta Fed President Raphael Bostic (non-voter) speaks at the Investing in Americas Workforce conference.
1000 ETAug wholesale trade sales expected unch m/m, Jul -0.1% m/m. Revised Aug wholesale inventories expected unchanged at +1.0%, prelim-Aug +1.0% m/m.
1215 ETNew York Fed President William Dudley (voter)will deliver a speech on The Monetary Policy Outlook and the Importance of Higher Education for Economic Mobility at an event in New York.
1245 ETDallas Fed President Robert Kaplan (voter) speaks in a moderated Q&A at an Investing in Americas Workforce conference in Dallas.
1500 ETAug consumer credit expected +$15.54 billion, Jul +$18.499 billion.
Monday, Oct 9
USn/aU.S. government offices and cash Treasury trading closed for Columbus Day. Exchanges open.
U.S. STOCK CALENDAR10/06/2017
NameTickerTimeDescriptionPeriodEstimate
Constellation Brands IncSTZ USBef-mktQ2 2018 Earnings ReleaseQ2 182.166
Leucadia National CorpLUK US08:30Investor Meeting
Clorox Co/TheCLX US09:00Analyst Day
Constellation Brands IncSTZ US10:30Q2 2018 Earnings CallQ2 18
Telephone & Data Systems IncTDS USRoadshow - Day 4
United States Cellular CorpUSM USRoadshow - Day 4
RPM International IncRPM USAnnual General Meeting
Global Payments IncGPN USQ3 2017 Earnings ReleaseQ3 171.098
Leucadia National CorpLUK USInvestor Day
Symantec CorpSYMC US12:00Annual General Meeting
Oracle CorpORCL US14:00Analyst Meeting
Costco Wholesale CorpCOST US16:15Q4 2017 Earnings ReleaseQ4 172.017
Yum China Holdings IncYUMC US16:30Q3 2017 Earnings ReleaseQ3 170.564
Costco Wholesale CorpCOST US17:00Q4 2017 Earnings CallQ4 17
Yum China Holdings IncYUMC US20:00Q3 2017 Earnings CallQ3 17

Tuesday, June 6, 2017

Yum China - Chart of the Day

Yum China (YUMC) is the Barchart Chart of the Day.  The Chinese restaurant company has a Trend Spotter buy signal, a Weighted Alpha of 65.53+ and gained 55.44% in the last year.

The Chart of the Day belongs to Yum China (YUMC).  I found the Chinese restaurant stock by using Barchart to sort today's All Time High list first for the most frequent number of new highs in the last month, then again for technical buy signals of 80% or better.  Since the Trend Spotter signaled a buy in 4/3 the stock gained 49.71%.

Yum China Holdings, Inc. is a licensee of Yum! Brands primarily in mainland China. The company have rights to KFC, China's quick-service restaurant concept, Pizza Hut, casual dining restaurant brand and Taco Bell. Yum China Holdings, Inc. is based in Shanghai, China.


The status of Barchart's Opinion trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 10 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com web site when you read this report.

Barchart technical indicators:

  • 96% technical buy signals
  • Trend Spotter buy signals
  • Above its 20, 50 and 100 day moving averages
  • 16 new highs and up 20.34% in the last month
  • Relative Strength Index 83.43%
  • Technical support level at 39.94
  • Recently traded at 40.72 with a 50 day moving average of 33.74
Fundamental factors:
  • Market Cap $15.35 billion
  • Revenue expected to grow 2.70% this year and another 6.30% next year
  • Earnings estimated to increase 11.70% this year, an additional 11.90% next year and continue to compound at an annual rate of 13.07% for the next 5 years
  • Wall Street analysts issued 2 strong buy, 1 buy and 2 hold recommendations on the stock

Thursday, April 6, 2017

MORNING CALL 4/6

Barchart Morning Call

OVERNIGHT MARKETS AND NEWS
Jun E-mini S&Ps (ESM17 +0.11%) this morning are up +0.13% as they recovered from a 1-week low in overnight trade. Concern by FOMC members over high stock prices led to a sell-off Wednesday afternoon that extended into overnight trading after the Mar 14-15 FOMC meeting minutes said, "some participants viewed equity prices as quite high relative to standard valuation measures." Stocks recovered, though, on short-covering ahead of a 2-day meeting that begins today between President Trump and Chinese President Xi Jinping in Florida. European stocks are up +0.10% after comments from ECB President Draghi signaled the ECB will continue with its QE program when he said that "a reassessment of the current monetary policy stance is not warranted at this stage." Asian stocks settled mostly lower: Japan -1.40%, Hong Kong -0.52%, China +0.33%, Taiwan -0.52%, Australia -0.34%, Singapore -0.03%, South Korea -0.45%, India -0.16%. China's Shanghai Composite bucked the sell-off in global stock markets and rallied to a 4-month high on optimism that talks between Chinese President Xi Jinping and U.S. President Trump will improve U.S.-China trade relations. Japan's Nikkei Stock Index followed the late sell-off in U.S. stocks Wednesday and fell to a 3-3/4 month low.
The dollar index (DXY00 +0.01%) is up +0.04%. EUR/USD (^EURUSD) is up +0.04%. USD/JPY (^USDJPY) is up +0.14%.
Jun 10-year T-note prices (ZNM17 unch) are little changed, down -0.5 of a tick.
ECB President Draghi said, "we have not yet seen sufficient evidence to materially alter our assessment of the inflation outlook" and that "a reassessment of the current monetary policy stance is not warranted at this stage."
San Francisco Fed President Williams (non-voter) said two more rate hikes this year is a sensible starting point and that it makes sense for the Fed to start shrinking its balance sheet toward the end of this year. He added that it will take something like 5-years to bring the balance sheet down to a more normal level, just based on the arithmetic of its holdings.
German Feb factory orders rose +3.4% m/m, weaker than expectations of +4.0% m/m.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) Mar Challenger job cuts (Feb -40.0% y/y), (2) weekly initial unemployment claims (expected -8,000 to 250,000, previous -3,000 to 258,000), (3) weekly continuing claims (expected -22,000 to 2.030 million, previous +65,000 to 2.052 million), (4) San Francisco Fed President John Williams (non-voter) speaks on a ECB panel in Frankfurt on “Do monetary policy frameworks need to be adjusted in a world of (potentially) low natural interest rates? If so, how?” (5) President Trump and Chinese President Xi Jinping hold talks on Thu-Fri at Mar-a-Lago, Florida.
Notable Russell 1000 earnings reports today include: Constellation Brands (consensus $1.36), RPM Intl (0.11), MSC Industrial Direct (0.90), CarMax (0.79), Lamb Weston (0.54).
U.S. IPO's scheduled to price today:
Equity conferences: Jefferies Animal Health Summit on Thu.
OVERNIGHT U.S. STOCK MOVERS
Medtronic PLC (MDT -0.47%) gained almost 2% in after-hours trading after Reuters reported that it was close to selling its medical supplies unit to Cardinal Health for $6 billion.
Jazz Pharmaceuticals PLC (JAZZ -1.79%) climbed over 4% in after-hours trading after it settled a lawsuit with Hikma that grants Hikma the right to sell an authorized generic version of Xyrem in the U.S. starting January 1, 2023.
Yum China Holdings (YUMC +0.79%) rallied nearly 10% in after-hours trading after it reported Q1 comparable sales unexpectedly rose 1%, better than consensus of -2.4%, and reported Q1 revenue of $1.28 billion, higher than consensus of $1.27 billion.
TD Ameritrade (AMTD -2.06%) was upgraded to 'Buy' from 'Neutral' at Buckingham Research Group with a 12-month target price of $48.
Cardinal Health (CAH +0.14%) was upgraded to 'Outperform' from 'Inline' at Evercore ISI with a 12-month target price of $91.50.
Teladoc (TDOC +1.41%) was downgraded to 'Neutral' from 'Overweight' at Cantor Fitzgerald with a 12-month target price of $27.
OZ Minerals (OZMLF -8.26%) was downgraded to 'Sell' from 'Hold' at Morningstar.
Bed Bath & Beyond (BBBY -3.03%) rose nearly 3% in after-hours trading after it reported Q4 EPS of $1.84, above consensus of $1.77.
Resources Connection (RECN -1.53%) dropped 9% in after-hours trading after it reported Q3 EPS of 9 cents, below consensus of 14 cents.
8Point3 Energy Partners LP (CAFD +0.92%) tumbled 14% in after-hours trading after it said it sees Q2 revenue of $14 million to $16 million, weaker than consensus of $16.2 million.
GoPro (GPRO unch) fell over 1% in after-hours trading after it offered $150 million of convertible senior notes due 2022 in a private placement.
Colony Northstar (CLNS -0.53%) lost nearly 2% in after-hours trading after a person familiar with the matter said a 21.9 million share block of Northstar shares were being offered at $12.65 to $12.70 via Morgan Stanley.
Synacor (SYNC +1.22%) slumped 6% in after-hours trading after it announced a proposed public offering of common stock, although no size was given.
MARKET COMMENTS
Jun E-mini S&Ps (ESM17 +0.11%) this morning are up +3.00 points (+0.13%). Wednesday's closes: S&P 500 -0.31%, Dow Jones -0.20%, Nasdaq -0.40%. The S&P 500 on Wednesday rallied to a 2-week high but shed its gains and closed lower. Negative factors include the -2.4 point decline in the U.S. Mar ISM non-manufacturing index to a 5-month low of 55.2, House Speaker Ryan's comment that tax reform could take longer than a health care overhaul, and the Mar 14-15 FOMC meeting minutes where some policy makers said that stock prices were "quite high" and where the FOMC said it would start reducing its balance sheet "later this year." Stocks found early support on the Mar ADP employment report of +263,000, stronger than expectations of +185,000 and the most in 2-1/4 years.
Jun 10-year T-notes (ZNM17 unch) this morning are down -0.5 of a tick. Wednesday's closes: TYM7 +0.50, FVM7 +1.50. Jun 10-year T-notes on Wednesday closed slightly higher on weakness in stocks and the U.S. Mar ISM non-manufacturing index report of -2.4 points to a 5-month low of 55.2. T-notes were undercut by the stronger-than-expected U.S. Mar ADP employment report and by the minutes from the Mar 14-15 FOMC meeting where policy makers said they would begin shrinking the Fed's balance sheet later this year.
The dollar index (DXY00 +0.01%) this morning is up +0.04 (+0.04%). EUR/USD (^EURUSD) is up +0.0004 (+0.04%) and USD/JPY (^USDJPY) is up +0.16 (+0.14%). Wednesday's closes: Dollar index +0.02 (+0.02%), EUR/USD -0.0011 (-0.10%), USD/JPY -0.04 (-0.04%). The dollar index on Wednesday rose to a 3-week high and settled higher. The dollar was boosted by the stronger-than-expected U.S. Mar ADP employment report (+263,000) and the Mar 14-15 FOMC minutes where the Fed it would likely start reducing its balance sheet later in the year.
May WTI crude oil prices (CLK17 +0.57%) this morning are up +11 cents (+0.22%) and May gasoline (RBK17 +0.26%) is -0.0003 (-0.02%). Wednesday's closes: May crude +0.12 (+0.24%), May gasoline -0.0064 (-0.37%). May crude oil and gasoline on Wednesday settled mixed with May crude at a 4-week high. Crude oil was boosted by optimism that OPEC will extend its production cuts past June. Crude oil prices were undercut by the unexpected +1.57 million bbl increase in EIA crude inventories to a record 535.5 million bbl (vs expectations of -150,000 bbl), the +1.41 million bbl increase in crude supplies at Cushing, OK, delivery point of WTI futures, to a record 69.144 million bbl, and the +0.6% increase in U.S. crude production the week ended Mar 31 to a 14-month high of 9.199 million bpd.

GLOBAL EVENT CALENDAR04/06/2017
Thursday, April 6
USn/aPresident Trump and Chinese President Xi Jinping hold talks on Thu-Fri at Mar-a-Lago, Florida.
0700 ETMar Challenger job cuts, Feb -40.0% y/y.
0830 ETWeekly initial unemployment claims expected -8,000 to 250,000, previous -3,000 to 258,000. Weekly continuing claims expected -22,000 to 2.030 million, previous +65,000 to 2.052 million.
0830 ETUSDA weekly Export Sales.
0930 ETSan Francisco Fed President John Williams (non-voter) speaks on a ECB panel in Frankfurt on Do monetary policy frameworks need to be adjusted in a world of (potentially) low natural interest rates? If so, how?
1100 ETTreasury announces amount of 3-year T-notes (previous $24 billion), 10-year T-notes (previous $20 billion) and 30-year T-bonds (previous $12 billion) to be auctioned Apr 10-12.
Friday, April 7
USn/aPresident Trump and Chinese President Xi Jinping hold talks on Thu-Fri at Mar-a-Lago, Florida.
0700 ETMar Challenger job cuts, Feb -40.0% y/y.
0830 ETWeekly initial unemployment claims expected -8,000 to 250,000, previous -3,000 to 258,000. Weekly continuing claims expected -22,000 to 2.030 million, previous +65,000 to 2.052 million.
0830 ETUSDA weekly Export Sales.
0930 ETSan Francisco Fed President John Williams (non-voter) speaks on a ECB panel in Frankfurt on Do monetary policy frameworks need to be adjusted in a world of (potentially) low natural interest rates? If so, how?
1100 ETTreasury announces amount of 3-year T-notes (previous $24 billion), 10-year T-notes (previous $20 billion) and 30-year T-bonds (previous $12 billion) to be auctioned Apr 10-12.
U.S. STOCK CALENDAR04/06/2017

CompanyTickerTimeEvent DescriptionPeriodEstimate
Constellation Brands IncSTZ USBef-mktQ4 2017 Earnings ReleaseQ4 171.364
RPM International IncRPM USBef-mktQ3 2017 Earnings ReleaseQ3 170.109
MSC Industrial Direct Co IncMSM USBef-mktQ2 2017 Earnings ReleaseQ2 170.897
CarMax IncKMX US07:00Q4 2017 Earnings ReleaseQ4 170.786
Lamb Weston Holdings IncLW US08:30Q3 2017 Earnings ReleaseQ3 170.535
MSC Industrial Direct Co IncMSM US08:30Q2 2017 Earnings CallQ2 17
CarMax IncKMX US09:00Q4 2017 Earnings CallQ4 17
Comcast CorpCMCSA US09:00Analyst Day
RPM International IncRPM US10:00Q3 2017 Earnings CallQ3 17
Lamb Weston Holdings IncLW US10:00Q3 2017 Earnings CallQ3 17
Constellation Brands IncSTZ US10:30Q4 2017 Earnings CallQ4 17
Synopsys IncSNPS US11:00Annual General Meeting
Quintiles IMS Holdings IncQ USAnnual General Meeting