Showing posts with label bsx. Show all posts
Showing posts with label bsx. Show all posts

Wednesday, October 26, 2016

MORNING CALL 10/26

MORNING CALL
OVERNIGHT MARKETS AND NEWS
Dec E-mini S&Ps (ESZ16 -0.41%) are down -0.37% and European stocks are down -0.76%. A 3% drop in Apple in pre-market trading is undercutting stocks after the company forecast uninspiring forward expectations. A -1.38% slide in crude oil prices (CLZ16 -1.62%) to a 2-week low is also pushing energy producing stocks lower after the API reported late yesterday that U.S. crude inventories rose +4.75 million bbl last week. European stocks were also pressured by an unexpected decline in German Nov GfK consumer confidence to a 6-month low. Asian stocks settled mostly lower: Japan +0.15%, Hong Kong -1.02%, China -0.50%, Taiwan -0.25%, Australia -1.53%, Singapore -0.89%, South Korea -1.18%, India -0.91. Japan's Nikkei Stock Index bucked the trend today and rallied up to a 5-3/4 month high after Tuesday's rally in USD/JPY to a 2-3/4 month high fueled gains in exporter stocks.
The dollar index (DXY00 -0.12%) is down -0.21%. EUR/USD (^EURUSD) is up +0.30%. USD/JPY (^USDJPY) is down -0.01%.
Dec 10-year T-note prices (ZNZ16 -0.13%) are down -4 ticks.
ECB Governing Council member Hanson said wage growth, which could boost price growth "remains rather modest in some regions" and "even looking at headline inflation developments, one can notice tendency for growth lately, but where some weakness can be seen is core inflation, where we can't yet see a very clear trend for improvement."
The German Nov GfK consumer confidence unexpectedly fell -0.3 to 9.7, weaker than expectations of no change at 10.0 and a 6-month low.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) weekly MBA mortgage applications (previous +0.6% with purchase sub-index +3.0% and refi sub-index -0.8%), (2) Sep wholesale inventories (expected +0.1%, Aug -0.2%), (3) Oct Markit services PMI (expected +0.2 to 52.5, Sep +1.3 to 52.3), (4) Sep new home sales (expected -1.5% to 600,000, Aug -7.6% to 609,000), (5) the Treasury's auction of $14 billion of 2-year floating-rate notes and $34 billion of 5-year T-notes, and (6) EIA Weekly Petroleum Status Report.
Notable S&P 500 earnings reports today include: Coca-Cola (consensus $0.48), Boeing (2.67), General Dynamics (2.38), Norfolk Southern (1.45), Biogen (4.97), Waste Management (0.80), Simon Property Group (2.68), Southwest Airlines (0.88), Comcast (0.91), State Street (1.25), Nasdaq (0.90), Newmont Mining (0.49), Public Storage (2.53).
U.S. IPO's scheduled to price today: GTY Technology Holdings (GTYHU), Myovant Sciences (MYOV).
Equity conferences this week include: Money20/20 Conference on Mon-Wed, American Cystic Fibrosis Conference on Thu, ARM TechCon on Thu.
OVERNIGHT U.S. STOCK MOVERS
Apple (AAPL +0.51%) slid 3% in pre-market trading after it reported Q4 revenue of $46.9 billion, below consensus of $47 billion, and forecast Q1 gross margins of 38%-38.5%, weaker than consensus of 39%
Under Armour (UA -13.22%) was downgraded to 'Market Perform' from 'Outperform' at Cowen with a 12-month target price of $35.
Twitter (TWTR -4.27%) rose 3% in after-hours trading after Betaville reported that Disney is still interested in acquiring the company.
Akamai Technologies (AKAM +0.39%) climbed over 6% in after-hours trading after it reported Q3 adjusted EPS of 68 cents, higher than consensus of 61 cents.
Juniper Networks (JNPR +0.25%) rose 4% in after-hours trading after it reported Q3 adjusted EPS of 58 cents, higher than consensus of 52 cents/
Edwards Lifesciences (EW -2.86%) slumped over 12% in after-hours trading after it reported Q3 revenue of $739.4 million, less than consensus of $749.1 million, and said it sees Q4 sales of $750 million-$790 million, below consensus of $801.6 million.
Panera Bread (PNRA -2.04%) rose 5% in after-hours trading after it reported Q3 adjusted EPS of $1.37, higher than consensus of $1.34, and then raised its full-year adjusted EPS view to $6.67-$6.72 from a July 26 estimate of $6.60-$6.70.
NuVasive (NUVA -2.74%) tumbled 12% in after-hours trading after it cut its full-year revenue forecast to $952 million from a prior estimate of $962 million.
Express Scripts Holding (ESRX +0.39%) gained over 1% in after-hours trading after it reported Q3 adjusted EPS of $1.74, above consensus of $1,73, and then raised the low end of its full-year adjusted EPS view to $6.36-$6.42 from a prior view of $6.33-$6.43.
CH Robinson Worldwide (CHRW +0.45%) declined over 3% in after-hours trading after it reported Q3 EPS of 90 cents, below consensus of 96 cents.
Owens-Illinois (OI -0.99%) rallied over 3% in after-hours trading after it raised the low end its full-year adjusted EPS view to $2.27-$2.32 from a July 27 view of $2.25-$2.35.
Pandora Media (P -4.84%) fell 5% in after-hours trading after it lowered guidance on full-year revenue to $1.354 billion-$1.366 billion from a prior view of $1.385 billion-$1.405 billion.
NCR Corp. (NCR -2.17%) rose over 3% in pre-market trading after it reported Q3 adjusted EPS of 87 cents, above consensus of 81 cents, and then raised its full-year adjusted EPS view to $2.97-$3.02 from a prior view of $2.90-$3.00.
Diplomat Pharmacy (DPLO -0.24%) dropped over 5% in after-hours trading after President Gary Kadlec and CFO Sean Whelan said they will both step down on Dec 31.
Gladstone Capital (GLAD -1.68%) slid over 3% in after-hours trading after it announced a common stock offering, although no size was given.
MARKET COMMENTS
Dec E-mini S&Ps (ESZ16 -0.41%) this morning are down -8.00 points (-0.37%). Tuesday's closes: S&P 500 -0.38%, Dow Jones -0.30%, Nasdaq-0.38%. The S&P 500 on Tuesday closed lower on the -4.9 point decline in U.S. Oct consumer confidence to 98.6 (weaker than expectations of -2.6 to 101.5) and on negative earnings news after 3M cut the top end of its 2016 profit forecast, Caterpillar cut its sales forecast for this year and Whirlpool lowered its profit outlook. There was also weakness in energy producer stocks as the price of crude oil fell -2.41%.
Dec 10-year T-notes (ZNZ16 -0.13%) this morning are down -4 ticks. Tuesday's closes: TYZ6 -5.50, FVZ6 -3.25. Dec 10-year T-notes on Tuesday recovered from a 1-week low and closed unchanged. T-notes found underlying support from the larger-than-expected decline in U.S. Oct consumer confidence index and from increased safe-haven demand with the weakness in stocks. Stocks were undercut by slack demand for the Treasury's $26 billion 2-year auction that had a bid-to-cover ratio of 2.53, weaker than the 12-auction average of 2.86 and the weakest demand for a 2-year auction in 3 months.
The dollar index (DXY00 -0.12%) this morning is down -0.209 (-0.21%). EUR/USD (^EURUSD) is up +0.0033 (+0.30%). USD/JPY (^USDJPY) is down-0.01 (-0.01%). Tuesday's closes: Dollar index -0.037 (-0.04%), EUR/USD +0.0007 (+0.06%), USD/JPY +0.04 (+0.04%). The dollar index on Tuesday fell back from an 8-1/2 month high and closed lower on the weaker-than-expected U.S. Oct consumer confidence index. The dollar was also undercut by the rebound in EUR/USD from a 7-1/2 month low after the German Oct IFO business climate index showed an unexpectedly strong increase to a 2-1/2 year high.
Dec WTI crude oil (CLZ16 -1.62%) this morning is down -69 cents (-1.38%) at a 2-week low and Dec gasoline (RBZ16 -1.74%) is down -0.0246(-1.66%) at a 1-1/2 week low. Tuesday's closes: Dec crude -1.22 (-2.41%), Dec gasoline -0.0244 (-1.66%). Dec crude oil and gasoline on Tuesday closed lower on comments from a Russian OPEC envoy who said an oil production cut is not a suitable option for Russia, only a freeze of output at current levels. Crude oil prices were also undercut by expectations for Wednesday's EIA crude inventories to increase by +1.75 million bbl.
GLOBAL EVENT CALENDAR10/26/2016
Wednesday, Oct 26
US0700 ETWeekly MBA mortgage applications, previous +0.6% with purchase sub-index +3.0% and refi sub-index -0.8%.
0830 ETSep wholesale inventories expected +0.1%, Aug -0.2%. Sep wholesale trade sales, Aug +0.7%,
0945 ETOct Markit services PMI expected +0.2 to 52.5, Sep +1.3 to 52.3.
1000 ETSep new home sales expected -1.5% to 600,000, Aug -7.6% to 609,000.
1030 ETEIA Weekly Petroleum Status Report.
1130 ETTreasury auctions $14 billion of 2-year floating-rate notes.
1300 ETTreasury auctions $34 billion of 5-year T-notes.
Thursday, Oct 27
US0830 ETWeekly initial unemployment claims expected -5,000 to 255,000, previous +13,000 to 260,000. Weekly continuing claims expected-5,000 to 2.052 million, previous +7,000 to 2.057 million.
0830 ETSep durable goods orders expected unch and +0.2% ex transportation, Aug +0.1% and -0.2% ex transportation. Sep capital goods orders nondefense ex-aircraft & parts expected -0.1%, Aug +0.9%.
0830 ETUSDA weekly Export Sales.
1000 ETSep pending home sales expected +1.1% m/m and +4.0% y/y, Aug -2.4% m/m and +4.0% y/y.
1100 ETOct Kansas City Fed manufacturing activity survey expected -3 to 3, Sep +10 to 6.
1300 ETTreasury auctions $28 billion 7-year T-notes
U.S. STOCK CALENDAR10/26/2016
CompanyTickerTimeEvent DescriptionPeriodEstimate
St Jude Medical IncSTJ US3:00Annual General Meeting - M&A Vote
Boston Scientific CorpBSX USBef-mktQ3 2016 Earnings ReleaseQ3 20160.268
Coca-Cola Co/TheKO USBef-mktQ3 2016 Earnings ReleaseQ3 20160.482
Laboratory Corp of America HoldingsLH USBef-mktQ3 2016 Earnings ReleaseQ3 20162.293
Northrop Grumman CorpNOC USBef-mktQ3 2016 Earnings ReleaseQ3 20162.808
Exelon CorpEXC USBef-mktQ3 2016 Earnings ReleaseQ3 20160.786
Huntington Bancshares Inc/OHHBAN USBef-mktQ3 2016 Earnings ReleaseQ3 20160.211
Biogen IncBIIB USBef-mktQ3 2016 Earnings ReleaseQ3 20164.967
Waste Management IncWM USBef-mktQ3 2016 Earnings ReleaseQ3 20160.801
Simon Property Group IncSPG USBef-mktQ3 2016 Earnings ReleaseQ3 20162.676
DTE Energy CoDTE USBef-mktQ3 2016 Earnings ReleaseQ3 20161.651
Garmin LtdGRMN USBef-mktQ3 2016 Earnings ReleaseQ3 20160.544
Ingersoll-Rand PLCIR US6:30Q3 2016 Earnings ReleaseQ3 20161.287
Southwest Airlines CoLUV US6:30Q3 2016 Earnings ReleaseQ3 20160.876
Wyndham Worldwide CorpWYN US6:30Q3 2016 Earnings ReleaseQ3 20161.885
Avery Dennison CorpAVY US6:45Q3 2016 Earnings ReleaseQ3 20160.997
WEC Energy Group IncWEC US7:00Q3 2016 Earnings ReleaseQ3 20160.614
Comcast CorpCMCSA US7:00Q3 2016 Earnings ReleaseQ3 20160.91
State Street CorpSTT US7:00Q3 2016 Earnings ReleaseQ3 20161.253
Nasdaq IncNDAQ US7:00Q3 2016 Earnings ReleaseQ3 20160.901
Hess CorpHES US7:30Q3 2016 Earnings ReleaseQ3 2016-1.24
Boeing Co/TheBA US7:30Q3 2016 Earnings ReleaseQ3 20162.674
General Dynamics CorpGD US7:30Q3 2016 Earnings ReleaseQ3 20162.381
FLIR Systems IncFLIR US7:30Q3 2016 Earnings ReleaseQ3 20160.425
Boston Scientific CorpBSX US8:00Q3 2016 Earnings CallQ3 2016
Norfolk Southern CorpNSC US8:00Q3 2016 Earnings ReleaseQ3 20161.451
Owens-Illinois IncOI US8:00Q3 2016 Earnings CallQ3 2016
FLIR Systems IncFLIR US8:00Q3 2016 Earnings CallQ3 2016
Nasdaq IncNDAQ US8:00Q3 2016 Earnings CallQ3 2016
Mondelez International IncMDLZ US8:00Q3 2016 Earnings ReleaseQ3 20160.434
Assurant IncAIZ US8:00Q3 2016 Earnings CallQ3 2016
Franklin Resources IncBEN US8:30Q4 2016 Earnings ReleaseQ4 20160.691
Franklin Resources IncBEN US8:30Q4 2016 Earnings Call - Pre RecordedC4 2016
Comcast CorpCMCSA US8:30Q3 2016 Earnings CallQ3 2016
Express Scripts Holding CoESRX US8:30Q3 2016 Earnings CallQ3 2016
Biogen IncBIIB US8:30Q3 2016 Earnings CallQ3 2016
Chubb LtdCB US8:30Q3 2016 Earnings CallQ3 2016
CH Robinson Worldwide IncCHRW US8:30Q3 2016 Earnings CallQ3 2016
Wyndham Worldwide CorpWYN US8:30Q3 2016 Earnings CallQ3 2016
Norfolk Southern CorpNSC US8:45Q3 2016 Earnings CallQ3 2016
Coca-Cola Co/TheKO US9:00Q3 2016 Earnings CallQ3 2016
General Dynamics CorpGD US9:00Q3 2016 Earnings CallQ3 2016
Laboratory Corp of America HoldingsLH US9:00Q3 2016 Earnings CallQ3 2016
Parker-Hannifin CorpPH US9:00Annual General MeetingY 2016
Huntington Bancshares Inc/OHHBAN US9:00Q3 2016 Earnings CallQ3 2016
Range Resources CorpRRC US9:00Q3 2016 Earnings CallQ3 2016
DTE Energy CoDTE US9:00Q3 2016 Earnings CallQ3 2016
Ameriprise Financial IncAMP US9:00Q3 2016 Earnings CallQ3 2016
State Street CorpSTT US9:30Q3 2016 Earnings CallQ3 2016
Hess CorpHES US10:00Q3 2016 Earnings CallQ3 2016
Ingersoll-Rand PLCIR US10:00Q3 2016 Earnings CallQ3 2016
Citigroup IncC US10:00Q3 2016 Earnings Call - Fixed IncomeC3 2016
Waste Management IncWM US10:00Q3 2016 Earnings CallQ3 2016
Boston Properties IncBXP US10:00Q3 2016 Earnings CallQ3 2016
Mondelez International IncMDLZ US10:00Q3 2016 Earnings CallQ3 2016
Boeing Co/TheBA US10:30Q3 2016 Earnings CallQ3 2016
Garmin LtdGRMN US10:30Q3 2016 Earnings CallQ3 2016
Avery Dennison CorpAVY US11:00Q3 2016 Earnings CallQ3 2016
Franklin Resources IncBEN US11:00Q4 2016 Earnings CallQ4 2016
Exelon CorpEXC US11:00Q3 2016 Earnings CallQ3 2016
Torchmark CorpTMK US11:00Q3 2016 Earnings CallQ3 2016
Cincinnati Financial CorpCINF US11:00Q3 2016 Earnings CallQ3 2016
Equity ResidentialEQR US11:00Q3 2016 Earnings CallQ3 2016
Simon Property Group IncSPG US11:00Q3 2016 Earnings CallQ3 2016
Northrop Grumman CorpNOC US12:00Q3 2016 Earnings CallQ3 2016
Southwest Airlines CoLUV US12:30Q3 2016 Earnings CallQ3 2016
UDR IncUDR US13:00Q3 2016 Earnings CallQ3 2016
WEC Energy Group IncWEC US14:30Q3 2016 Earnings CallQ3 2016
F5 Networks IncFFIV US16:00Q4 2016 Earnings ReleaseQ4 20161.941
Robert Half International IncRHI US16:15Q3 2016 Earnings ReleaseQ3 20160.709
Unum GroupUNM US16:15Q3 2016 Earnings ReleaseQ3 20160.949
Western Digital CorpWDC US16:15Q1 2017 Earnings ReleaseQ1 20171.05
Texas Instruments IncTXN US16:30Q3 2016 Earnings ReleaseQ3 20160.863
O'Reilly Automotive IncORLY US16:30Q3 2016 Earnings ReleaseQ3 20162.923
F5 Networks IncFFIV US16:30Q4 2016 Earnings CallQ4 2016
Fortune Brands Home & Security IncFBHS US16:30Q3 2016 Earnings CallQ3 2016
Robert Half International IncRHI US17:00Q3 2016 Earnings CallQ3 2016
Varian Medical Systems IncVAR US17:00Q4 2016 Earnings CallQ4 2016
Western Digital CorpWDC US17:00Q1 2017 Earnings CallQ1 2017
Fiserv IncFISV US17:00Q3 2016 Earnings CallQ3 2016
XL Group LtdXL US17:00Q3 2016 Earnings CallQ3 2016
Equifax IncEFX USAft-mktQ3 2016 Earnings ReleaseQ3 20161.356
Murphy Oil CorpMUR USAft-mktQ3 2016 Earnings ReleaseQ3 2016-0.2
Newmont Mining CorpNEM USAft-mktQ3 2016 Earnings ReleaseQ3 20160.491
Universal Health Services IncUHS USAft-mktQ3 2016 Earnings ReleaseQ3 20161.683
Varian Medical Systems IncVAR USAft-mktQ4 2016 Earnings ReleaseQ4 20161.34
Fiserv IncFISV USAft-mktQ3 2016 Earnings ReleaseQ3 20161.134
Realty Income CorpO USAft-mktQ3 2016 Earnings ReleaseQ3 20160.728
Extra Space Storage IncEXR USAft-mktQ3 2016 Earnings ReleaseQ3 20160.995
Fortune Brands Home & Security IncFBHS USAft-mktQ3 2016 Earnings ReleaseQ3 20160.782
XL Group LtdXL USAft-mktQ3 2016 Earnings ReleaseQ3 20160.377
Public StoragePSA US17:30Q3 2016 Earnings ReleaseQ3 20162.525
Texas Instruments IncTXN US17:30Q3 2016 Earnings CallQ3 2016
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Thursday, June 9, 2016

MORNING CALL 6/8

MORNING CALL
OVERNIGHT MARKETS AND NEWS
Jun E-mini S&Ps (ESM16 -0.33%) are down -0.33% and European stocks are down -0.89% as weakness in commodity prices drags down global equity markets. A sell-off in mining stocks and energy and raw-material producers are leading stocks lower after they rallied sharply earlier this week. The slide in world equity markets has fueled rallies in government bond markets as the German 10-year bund yield matched its record low of 0.033% set Wednesday and the UK 10-year gilt yield dropped to a record low of 1.24%. Asian stocks settled mostly lower: Japan -0.97%, Hong Kong, China and Taiwan closed for holiday, Australia -0.15%, Singapore -0.65%, South Korea +0.06%, India -0.95%. Japanese stocks were undercut by strength in the yen as USD/JPY fell to a 1-month low, which reduces the profitability of exporters. Japanese industrial stocks also fell after the -11.0% plunge in Japan Apr machine orders, the biggest monthly decline in 23 months.
The dollar index (DXY00 +0.32%) is up +0.25%. EUR/USD (^EURUSD) is down -0.47%. USD/JPY (^USDJPY) is down -0.44% at a 1-month low.
Sep T-note prices (ZNU16 +0.19%) are up +6.5 ticks at a contract high due to weakness in global stocks and carryover from rallies in European government bonds to record highs.
The German Apr trade balance shrank to a surplus of 25.6 billion euros, a larger surplus than expectations of 22.8 billion euros. Apr exports were unchanged m/m, stronger than expectations of -0.8% m/m. Apr imports unexpectedly fell -0.2% m/m, weaker than expectations of +1.3% m/m.
Japan Apr machine orders fell -11.0% m/m and -8.2% y/y, weaker than expectations of -3.0% m/m and -1.8% y/y with the -11.0% m/m fall the biggest monthly decline in 23 months.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) weekly initial unemployment claims (expected +3,000 to 270,000, previous -1,000 to 267,000) and continuing claims (expected -1,000 to 2.171 million, previous +12,000 to 2.172 million), (2) Apr wholesale inventories (expected +0.1% m/m, Mar +0.1% m/m), (3) the Treasury's auction of $12 billion of 30-year T-bonds, and (4) USDA weekly Export Sales.
There are 2 of the Russell 1000 companies that report earnings today: JM Smucker (consensus $1.21), H&R Block (3.17).
U.S. IPO's scheduled to price today: Atkore International Group (ATKR), China Online Education Group (COE),
Equity conferences during the remainder of this week include: American Society of Clinical Oncology Annual Meeting on Mon-Thu, Goldman Sachs Global Health Care Conference on Tue-Thu, Jefferies Global Health Care Conference on Tue-Thu, Baird Global Consumer, Technology and Services Conference on Tue-Thu, Deutsche Bank Global Industrials and Materials Summit on Wed-Thu, Sandler O'Neill Global Exchange and Brokerage Conference on Wed-Thu, Gabelli & Company Movie & Entertainment Conference on Thu, Susquehanna Financial Group Energy and Industrials Conference on Thu.

OVERNIGHT U.S. STOCK MOVERS
Comtech Telecommunications (CMTL -1.36%) lowered guidance on fiscal 2016 revenue to $425 million-$435 million from a March 10 estimate of $435 million-$445 million.
US Concrete (USCR +2.47%) was rated a new 'Buy' at DA Davidson with an 18-month target price of $80.
SolarCity (SCTY -0.94%) rose over 3% in pre-market trading after it was upgraded to 'Outperform' from 'Neutral' at Baird.
Boston Scientific (BSX +0.75%) was rated a new 'Buy' at Guggenheim Securities with a 12-month price target of $26.
Chesapeake Energy (CHK +6.42%) tumbled over 4% in pre-market trading after it was downgraded to 'Underperform' from 'Sector Perform' at RBC Capital Markets.
Fitbit (FIT -1.47%) was rated a new 'Outperform' at Wedbush with a 12-month price target of $18.
Stryker (SYK +1.51%) was rated a new 'Buy' at Guggenheim Securities with a 12-month price target of $134.
LinkedIn (LNKD +0.11%) climbed nearly 2% in pre-market trading after it was upgraded to 'Outperform' from 'Sector Perform' at RBC Capital Markets with a target price of $160.
Restoration Hardware Holdings (RH +1.95%) plunged over 20% in pre-market trading after it reported an unexpected Q1 adjusted EPS loss of -5 cents, weaker than consensus of a 5 cent gain, and then cut its full-year adjusted EPS forecast to $1.60-$1.80, well below consensus of $2.66,
ABM Industries (ABM +1.52%) gained over 3% in after-hours trading after it reported Q2 adjusted EPS continuing operations of 31 cents, higher than consensus of 27 cents.
Tesco (TESO +2.33%) slid over 3% in after-hours trading after it announced a public offering of 7 million shares of common stock.
Envision Healthcare (EVHC +1.66%) rose over 3% in after-hours trading after Dow Jones reported that the company was in merger talks with Amsung.
Team Health Holdings (TMH -0.10%) tumbled over 9% in after-hours trading after Dow Jones reported that a deal between AmSung, who was rumored to merge with Team Health, was said to be close to a deal to merge with Envision Healthcare.
Brinker International (EAT +1.58%) jumped 6% in after-hours trading after it said it sees fiscal 2017 comparable sales up +0.5% to +2.0%.
MARKET COMMENTS
June E-mini S&Ps (ESM16 -0.33%) this morning are down -7.00 points (-0.33%). Wednesday's closes: S&P 500 +0.33%, Dow Jones +0.37%, Nasdaq +0.17%. The S&P 500 index on Wednesday climbed to a 10-1/2 month high and closed higher on the unexpected +118,000 increase in U.S. Apr JOLTS job openings to 5.788 million, more than expectations for a decline of -82,000 to 5.675 million and matching the July 2015 record high. Stocks were also boosted by strength in energy and raw-material producers as commodity prices rallied with crude oil at a 10-1/2 month high and gold and silver at 3-week highs.
September 10-year T-note prices (ZNU16 +0.19%) this morning are up +6.5 ticks at a contract high. Wednesday's closes: TYU6 +2.50, FVU6 +2.00. Sep T-notes on Wednesday fell back from a 1-month high and closed lower on the rally in the S&P 500 to a 10-1/2 month high and on the unexpected increase in Apr JOLTS job openings to a record high. T-notes gained support from a rally in German bunds as the 10-year bund yield fell to a record low of 0.033% and from economic growth concerns after the World Bank cut its global 2016 GDP forecast.
The dollar index (DXY00 +0.32%) this morning is up +0.238 (+0.25%). EUR/USD (^EURUSD) is down -0.0053 (-0.47%). USD/JPY (^USDJPY) is down-0.47 (-0.44%) at a 1-month low. Wednesday's closes: Dollar Index -0.238 (-0.25%), EUR/USD +0.0037 (+0.33%), USD/JPY -0.38 (-0.35%). The dollar index on Wednesday fell to a 1-month low and closed lower on the World Bank's cut in its U.S. 2016 GDP forecast to 2.4% from 2.7% and on continued dollar bearishness after Fed Chair Yellen on Monday expressed concern about last Friday's payroll report and backed off her previous comment that a rate hike would be appropriate in "coming months."
July WTI crude oil (CLN16 -0.82%) this morning is down -40 cents (-0.78%). July gasoline (RBN16 -1.27%) is down -0.0201 (-1.24%). Wednesday's closes: CLN6 +0.87 (+1.73%), RBN6 +0.0327 (+2.06%). July crude oil and gasoline prices on Wednesday closed higher with July crude at a 10-1/2 month high. Crude oil prices were boosted by the slide in the dollar index to a 1-month low and by the -3.23 million bbl decline in EIA crude inventories, a bigger decline than expectations of -3.0 million bbl. Gasoline prices were undercut by the unexpected +1.01 million bbl increase in EIA gasoline stockpiles versus expectations for a -2.0 million bbl draw.
GLOBAL EVENT CALENDAR06/09/2016
Thursday, June 9
US0830 ETWeekly initial unemployment claims expected +3,000 to 270,000, previous -1,000 to 267,000. Weekly continuing claims expected-1,000 to 2.171 million, previous +12,000 to 2.172 million.
0830 ETUSDA weekly Export Sales.
1000 ETApr wholesale inventories expected +0.1% m/m, Mar +0.1% m/m. Apr wholesale trade sales expected +1.1% m/m, Mar +0.7% m/m.
1300 ETTreasury auctions $12 billion of 30-year T-bonds.
GER0200 ETGerman Apr trade balance expected +22.8 billion euros, Mar +26.2 billion euros. Apr exports expected -0.8% m/m, Mar +1.9% m/m. Apr imports expected +1.3% m/m, Mar -2.3% m/m.
0200 ETGerman Apr current account balance expected +20.5 billion euros, Mar +30.4 billion euros.
0200 ETGerman Q1 labor costs, Q4 +0.5% q/q and +2.1% y/y.
EUR0300 ETECB President Mario Draghi speaks at an economic forum in Brussels.
JPN0200 ETJapan May machine tool orders, Apr -26.3% y/y.
1950 ETJapan May PPI expected +0.1% m/m and -4.2% y/y, Apr -0.3% m/m and -4.2% y/y.
Friday, June 10
US1000 ETPreliminary-Jun University of Michigan U.S. consumer sentiment expected -0.7 to 94.0, May +5.7 to 94.7.
1200 ETUSDA Jun WASDE crop production.
1400 ETMay monthly budget statement expected -$56.0 billion, Apr +$106.452 billion.
JPN0030 ETJapan Apr tertiary industry index expected +0.6% m/m, Mar -0.7% m/m.
GER0200 ETRevised German May CPI (EU harmonized), preliminary-May +0.4% m/m and unch y/y.
0200 ETGerman May wholesale price index, Apr +0.3% m/m and -2.7% y/y.
EUR0815 ETECB Vice President Vitor Constancio speaks at a Bundesbank conference on Monetary, Financial and Fiscal Stability.
UK0430 ETUK Apr construction output expected +1.4% m/m and -4.8% y/y, Mar -3.6% m/m and -4.5% y/y.
CHI0130 ETChina May industrial production expected +6.0% y/y, Apr +6.0% y/y.
0130 ETChina May retail sales expected +10.1% y/y, Apr +10.1% y/y.
JPN1950 ETJapan Q2 BSI large manufacturing business conditions, Q1 -7.9. Q2 BSI large all-industry business conditions, Q1 -3.2.
U.S. STOCK CALENDAR06/09/2016
CompanyTickerTimeEvent DescriptionPeriodEstimate
Endo International PLCENDP US3:00Annual General MeetingY 2016
JM Smucker Co/TheSJM USBef-mktQ4 2016 Earnings ReleaseQ4 20161.205
Brinker International IncEAT US8:30Investor DayY 2016
Lincoln National CorpLNC US8:30Investor MeetingY 2016
JM Smucker Co/TheSJM US8:30Q4 2016 Earnings CallQ4 2016
Omega Healthcare Investors IncOHI US10:00Annual General MeetingY 2016
Visteon CorpVC US11:00Annual General MeetingY 2016
Entergy CorpETR US12:30Analyst DayY 2016
LinkedIn CorpLNKD US13:00Annual General Meeting
Zynga IncZNGA US13:00Annual General Meeting
H&R Block IncHRB US16:30Q4 2016 Earnings CallQ4 2016
H&R Block IncHRB USAft-mktQ4 2016 Earnings ReleaseQ4 20163.168
American Airlines Group IncAAL USMay 2016 Sales and Revenue Release - Traffic Results2016
Equifax IncEFX USInvestors Meeting - TorontoY 2016
Public Service Enterprise Group IncPEG USInvestor MeetingY 2016
Credit Acceptance CorpCACC USAnnual General Meeting
VeriSign IncVRSN USAnnual General Meeting
CoStar Group IncCSGP USAnnual General Meeting
Netflix IncNFLX USAnnual General Meeting
Intrexon CorpXON USAnnual General Meeting
Splunk IncSPLK USAnnual General Meeting
CST Brands IncCST USAnnual General Meeting
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Monday, April 11, 2016

MORNING CALL 4/11

MORNING CALL
OVERNIGHT MARKETS AND NEWS
Jun E-mini S&Ps (ESM16 +0.36%) are up +0.42%, led by a +3.4% gain in Alcoa ahead of U.S. Q1 company earnings results that begin after the close of trading today. A possible increase in M&A activity is also positive for stocks with Yahoo! Inc. up over 1% in pre-market trading after the parent of the UK's Daily Mail said it is in talks with potential bidders for Yahoo. European stocks are up +1.09% as a rally in Italian bank stocks leads European equities higher on optimism a meeting today between the Italian central bank and bank executives will help lead to a reduction of banks' non-performing loans. Asian stocks settled mixed: Japan -0.44%, Hong Kong +0.35%, China +1.64%, Taiwan +0.25%, Australia -0.12%, Singapore +0.03%, South Korea +0.12%, India +1.41%. China's Shanghai Composite closed higher on signs of economic improvement in China after China Mar producer prices increased month-on-month for the first time since September 2013. A sell-off in Japanese export stocks undercut the Nikkei Stock Index after USD/JPY tumbled to a fresh 17-1/2 month low, which reduces earnings prospects of Japanese exporters.
The dollar index (DXY00 -0.16%) is down -0.08% at a 5-3/4 month low. EUR/USD (^EURUSD) is down -0.10%. USD/JPY (^USDJPY) is up +0.12%.
Jun T-note prices (ZNM16 -0.08%) are down -4 ticks.
Italian Treasury and central bank officials will meet with executives of major Italian banks today to discuss the creation of a fund that would help tackle banks' non-performing loans, according to people with knowledge of the matter. The Italian government is seeking to reduce an estimated 360 billion euros ($410 billion) in bad loans and earlier this year struck a deal with the European Commission to allow banks to bundle their bad loans into securities for sale.
China Mar CPI rose +2.3% y/y, a slower pace of increase than expectations of +2.4% y/y. Mar PPI fell -4.3% y/y, a slower pace of decline than expectations of -4.6% y/y.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) New York Fed President William Dudley's keynote speech at the Association for Neighborhood and Housing Development Annual Community Development Conference in New York, and (2) Dallas Fed President Rob Kaplan's speech at a community forum at Louisiana Tech University.
There is 1 of Russell 1000 companies that reports earnings today: Alcoa (consensus $0.02).
U.S. IPO's scheduled to price today: none.
Equity conferences this week include: Goldman Sachs Alzheimer Symposium on Mon, IPAA Oil & Gas Investment Symposium on Mon-Tue, Needham Healthcare Conference on Tue, Goldman Sachs Cars Conference on Fri.
OVERNIGHT U.S. STOCK MOVERS

Alcoa (AA -1.16%) climbed over 3% in pre-market trading before it releases its Q1 earnings results after today's close.
Yahoo! (YHOO -0.28%) rose over 1% in pre-market trading after the parent company of the UK's Daily Mail said it is in talks with a number of potential bidders for Yahoo.
United Natural Foods (UNFI -1.10%) was downgraded to 'Underweight' from Equal Weight' at Morgan Stanley.
NXP Semiconductors (NXPI +1.82%) was rate a new 'Buy' at Nomura with a price target of $95.
Potash Corp. of Saskatchewan (POT -0.50%) was downgraded to 'Hold' from 'Buy' at HSBC.
Noble (NE +1.92%) was downgraded to 'Hold' from 'Buy at Societe Generale.
Restaurant Brands International (QSR -0.78%) was upgraded to 'Outperform' from 'Sector Perform' at RBC Capital Markets.
Cummins (CMI +1.13%) was downgraded to 'Neutral' from 'Outperform' at Macquarie.
Valero Energy (VLO +2.27%) was downgraded to 'Neutral' from 'Outperform' at Credit Suisse.
United Continental (UAL -0.15%) slipped nearly 1% in after-hours trading after the company reported March traffic was down -1.5% and its Mar consolidated load factor fell -1.1 points versus Mar 2015.
QLogic (QLGC +6.80%) climbed over 2% in after-hours trading after Bloomberg reported the company hired Qatalyst Partners to explore strategic alternatives for the company, including a possible sale.
Boston Scientific (BSX +0.10%) fell nearly 1% in after-hours trading after it voluntarily recalled its Fetch 2 aspiration catheter due to complaints of shaft breakage.

MARKET COMMENTS
June E-mini S&Ps (ESM16 +0.36%) this morning are up +8.50 points (+0.42%). Friday's closes: S&P 500 +0.28%, Dow Jones +0.20%, Nasdaq -0.01%. The S&P 500 on Friday closed higher on the +6.6% rally in crude oil prices to a 1-1/2 week high, which boosted energy producer stocks, and on New York Fed President Dudley's comment that the uncertainty of the U.S. economy calls for "gradual" interest rate increases. Stocks fell back from their best levels on the -0.5% decline in U.S. Feb wholesale inventories (which will undercut Q1 GDP) and on long liquidation ahead of Q1 earnings season which begins on Monday.
June 10-year T-note prices (ZNM16 -0.08%) this morning are down -4 ticks. Friday's closes: TYM6 -7.00, FVM6 -3.00. Jun T-notes on Friday closed lower on reduced safe-haven demand with the rally in stocks and on the sharp rally in crude oil to a 1-1/2 week high, which boosted inflation expectations.
The dollar index (DXY00 -0.16%) this morning is down -0.076 (-0.08%) at a 5-3/4 month low. EUR/USD (^EURUSD) is down -0.0011 (-0.10%). USD/JPY (^USDJPY) is up +0.13 (+0.12%). Friday's closes: Dollar Index -0.247 (-0.26%), EUR/USD +0.0021 (+0.18%), USD/JPY -0.14 (-0.13%). The dollar index on Friday closed lower on dovish comments from New York Fed President Dudley who said that the uncertainty of the U.S. economy calls for "gradual" interest rate increases. In addition, EUR/USD gained support from the larger-than-expected +1.3% m/m gain in German Feb exports, the biggest increase in 5 months.
May WTI crude oil (CLK16 -0.58%) is down -2 cents (-0.05%). May gasoline (RBK16 -0.13%) is up +0.0043 (+0.29%). Friday's closes: CLK6 +2.46 (+6.60%), RBK6 +0.0825 (+5.97%). May crude and gasoline prices on Friday closed sharply higher with May crude at a 1-1/2 week high and May gasoline at a 1-week high. Crude oil prices were boosted by a weaker dollar and the outlook for lower U.S. crude oil production after Baker Hughes reported that U.S. active oil rigs last week fell by -8 rigs to a 6-1/3 year low of 354 rigs.
GLOBAL EVENT CALENDAR04/11/2016
US0925 ETNew York Fed President William Dudley delivers the keynote speech at the Association for Neighborhood and Housing Development Annual Community Development Conference in New York.
1100 ETUSDA weekly grain export inspections.
1300 ETDallas Fed President Rob Kaplan speaks at a community forum at Louisiana Tech University.
1600 ETUSDA Weekly Crop Progress.
UK1901 ETUK Mar BRC sales like-for-like expected +1.4% y/y, Feb +0.1% y/y.
U.S. STOCK CALENDAR04/11/2016
CompanyTickerTimeEvent DescriptionPeriodEstimate
Liberty Media CorpLMCA US15:30Extraordinary Shareholders MeetingY 2016
Alcoa IncAA US17:00Q1 2016 Earnings CallQ1 2016
Alcoa IncAA USAft-mktQ1 2016 Earnings ReleaseQ1 20160.023
Goodyear Tire & Rubber Co/TheGT USAnnual General Meeting
AO Smith CorpAOS USAnnual General Meeting
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