MORNING CALL 9/19

MORNING CALL

Monday, September 19th, 2016View Older Reports

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OVERNIGHT MARKETS AND NEWS

Dec E-mini S&Ps (ESZ16 +0.42%) are up +0.42% and European stocks are up +1.13% on speculation that recent mixed economic data will keep the Fed from raising interest rates at this week's FOMC meeting. Crude oil prices (CLV16 +1.42%) are up +1.37%, which has given energy producing stocks a lift, after OPEC Secretary General Mohammed Barkindo said the cartel may call an extraordinary meeting if ministers reach consensus at an informal gathering in Algiers next week. Asian stocks settled mostly higher: Japan closed for holiday, Hong Kong +0.92%, China +0.77%, Taiwan +2.81%, Australia -0.04%, Singapore +0.87%, South Korea +0.86%, India +0.12%. Chinese stocks closed higher, led by a rally in property stocks, after China Aug new home prices rose +1.2% m/m in the 70 cities tracked by the government, the biggest increase in 6-1/2 years.

The dollar index (DXY00 -0.22%) is down -0.24%. EUR/USD (^EURUSD) is up +0.05%. USD/JPY (^USDJPY) is down -0.43%.

Dec T-note prices (ZNZ16 +0.08%) are up +3 ticks.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Sep NAHB housing market index (expected unchanged at 60, Aug +2 to 60), (2) USDA weekly grain export inspections, (3) USDA Weekly Crop Progress.

Russell 1000 companies that report earnings today: none.

U.S. IPO's scheduled to price today: AzurRx BioPharma (AZRX).

Equity conferences this week include: BMO Capital Markets Real Estate Conference on Mon, CLSA Investors Forum on Mon, BMO Capital Markets North American Real Estate Conference on Mon-Tue, Deutsche Bank Energy Summit on Tue, J.P. Morgan U.S. All Stars Conference on Tue, Scotiabank Fertilizer and Chemicals Conference on Tue, Finance Montreal FinTech Forum on Tue-Wed, Johnson Rice Energy Conference on Tue-Wed, Goldman Sachs Communicopia Conference on Tue-Thu, Finance Shared Services & GBS Exchange Conference on Wed.

OVERNIGHT U.S. STOCK MOVERS

GoPro (GPRO +5.65%) jumped nearly 6% in pre-market trading after it said it will unveil new products at today's anaylst meeting.

Mattel (MAT -0.22%) was upgraded to 'Buy' from 'Neutral' at Monness, Crespi, Hardt & Co. with a 12-month price target of $37.

U.S. Steel (X -0.93%) and AK Steel Holdings (AKS +1.23%) were both upgraded to 'Sector Weight' from 'Underweight' at Keybanc Capital Markets.

Enterprise Products Partners LP (EPD +0.19%) was upgraded to 'Outperform' from 'Neutral' at Credit Suisse witha target price of $34.

General Motors (GM -0.48%) climbed over 1% in pre-market trading after it was upgraded to 'Overweight' from 'Equalweight' at Morgan Stanley with a 12-month price target of $37.

PayPal Holdings (PYPL -0.32%) fell over 1% in pre-market trading after it was downgraded to 'Hold' from 'Buy' at Canaccord Genuity.

Buckeye Partners LP (BPL -0.28%) was upgraded to 'Buy' from 'Neutral' at Goldman Sachs with a 12-month price target of $78.

Targa Resources (TRGP +0.58%) was upgraded to 'Buy' from 'Neutral' at Goldman Sachs with a 12-month price target of $52.

Science Applications International (SAIC +0.47%) was awarded a U.S. Defense Logistics Agency contract worth as much as $700 million over the next 5 years for chemicals, packaged petroleum, oils and lubricants.

Enlink Midstream LLC (ENLC -0.06%) was downgraded to 'Sell' from 'Neutral' at Goldman Sachs.

North Sound increased its stake in Novatel Wireless (MIFI +3.82%) to 7.1% from 5.9%.

Sanofi (SNY -1.26%) sued Merck (MRK -0.16%) to block Merck's MK-1293 diabetes drug that Sanofi says infringes on 10 of its patents.

MARKET COMMENTS

Dec E-mini S&Ps (ESZ16 +0.42%) this morning are up +9.00 points (+0.42%). Friday's closes: S&P 500 -0.38%, Dow Jones -0.49%, Nasdaq -0.04%. The S&P 500 on Friday closed lower on continued concern about the recent surge in T-bond yields and concern about the economy after the Sep University of Michigan U.S. consumer sentiment report of unchanged at 89.8, weaker than expectations of +0.8 to 90.6 and the lowest since April. In addition, energy producer stocks were undercut by the -2% decline in crude oil to a 2-week low.

Dec 10-year T-notes (ZNZ16 +0.08%) this morning are up +3 ticks. Friday's closes: TYZ6 -1.50, FVZ6 -3.75. Dec T-notes on Friday closed slightly lower on the stronger-than-expected U.S. Aug core CPI report of +2.3% (versus expectations of +2.2%), which bolsters the case for the Fed to raise interest rates. T-notes were also undercut by increased inflation expectations after the 10-year T-note breakeven rate rose to a 1-week high. T-notes found support on the increased safe-haven demand with the sell-off in stocks.

The dollar index (DXY00 -0.22%) this morning is down -0.231 (-0.24%). EUR/USD (^EURUSD) is up +0.0006 (+0.05%). USD/JPY (^USDJPY) is down-0.44 (-0.43%). Friday's closes: Dollar index +0.820 (+0.86%), EUR/USD -0.0080 (-0.79%), USD/JPY +0.19 (+0.19%). The dollar index on Friday rose to a 2-week high and settled higher on a stronger case for a Fed rate hike after the larger-than-expected increase in U.S. Aug CPI. In addition, EUR/USD fell to a 1-week low on speculation the ECB may need to expand stimulus measures after Eurozone Q2 labor costs rose by only +1.0% y/y, the smallest increase since Q1 of 2014.

Oct crude oil (CLV16 +1.42%) this morning is up +59 cents (+1.37%) and Oct gasoline (RBV16 -0.76%) is down -0.0091 (-0.62%). Friday's closes: Closes: CLV6 -0.88 (-2.00%), RBV6 +0.0314 (+2.20%). Oct crude oil and gasoline on Friday settled mixed with Oct crude at a 5-week low and Oct gasoline at a 2-week high. Crude oil prices were undercut by a rally in the dollar index to a 2-week high and by signs the global oil glut may worsen after Libya lifted export restrictions on crude exports at several ports that may boost Libya's crude exports by +300,000 bpd and after Nigeria's Exxon Mobile said it was ready to resume 300,000 bpd of Qua Iboe crude, Nigeria's biggest export grade. Gasoline prices received a boost after news that Colonial Pipeline's pipeline in Alabama, the biggest fuel pipeline that delivers fuel from refineries from the Gulf Coast to the East Coast, will be shut down due to a leak until at least next week, which may cause gasoline shortages in the Eastern U.S.

GLOBAL EVENT CALENDAR09/19/2016

		Monday, Sep 19
US	1000 ET	Sep NAHB housing market index expected unchanged at 60, Aug +2 to 60.
	1100 ET	USDA weekly grain export inspections.
	1600 ET	USDA Weekly Crop Progress.
		Tuesday, Sep 20
US	0830 ET	Aug housing starts expected -1.7% to 1.190 million, Jul +2.1% to 1.211 million. Aug building permits expected +1.8% to 1.164 million, Jul-0.8% to 1.144 million.
	1030 ET	FOMC begins 2-day policy meeting.
GER	0200 ET	German Aug PPI expected unch m/m and -1.6% y/y, Jul +0.2% m/m and +2.0% y/y.
JPN	1950 ET	Japan Aug trade balance expected +195.5 billion yen, Jul +513.6 billion yen. Aug exports expected -4.5% y/y, Jul-14.0% y/y. Aug imports expected -16.5% y/y, Jul -24.7% y/y.

U.S. STOCK CALENDAR09/19/2016

Company	Ticker	Time	Event Description	Period	Estimate
Ultragenyx Pharmaceutical Inc	RARE US	11:00	KRN23 Study Results Call
Amgen Inc	AMGN US	11:30	Analyst Meeting
GoPro Inc	GPRO US	13:30	Analyst and Investor Meeting	Y 2016
Ascena Retail Group Inc	ASNA US	16:00	Q4 2016 Earnings Release	Q4 2016	0.163
Ascena Retail Group Inc	ASNA US	16:30	Q4 2016 Earnings Call	Q4 2016
RealNetworks Inc	RNWK US	16:30	Annual General Meeting

MORNING CALL 11/9

MORNING CALL

Monday, November 9th, 2015View Older Reports

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OVERNIGHT MARKETS AND NEWS

December E-mini S&Ps (ESZ15 -0.32%) are down -0.33% and European stocks are down -0.42 % on global growth concerns after the OECD cut its global GDP forecasts for this year and next, and after China Oct exports and imports declined more than expected. Asian stocks settled mixed: Japan +1.96%, Hong Kong -0.61%, China +1.58%, Taiwan -0.59%, Australia -1.83%, Singapore -0.42, South Korea -0.42%, India -0.55%. China's Shanghai Composite climbed to a 2-1/2 month high as a government plan to resume initial public offerings by the end of the year boosted brokerages, and Japan's Nikkei Stock Index also rose to a 2-1/2 month high as exporters rallied on improved earnings prospects after the yen fell to a 2-1/2 month low against the dollar.

The dollar index (DXY00 -0.29%) is down -0.28%. EUR/USD (^EURUSD) is up +0.41% after a gauge of Eurozone investor confidence rose more than expected. USD/JPY (^USDJPY) is up +0.26% at a 2-1/2 month high.

Dec T-note prices (ZNZ15 -0.09%) are down -4 ticks.

The OECD cut its global economic forecast for the second time in three months as it cut its global 2015 GDP estimate to 2.9% from a Sep forecast of 3.0%, and cut its 2016 global GDP forecast to 3.3% from a Sep estimate of 3.6%.

The Eurozone Nov Sentix investor confidence rose +3.4 to 15.1, stronger than expectations of +1.4 to 13.1.

The China Oct trade balance widened to a record surplus of +$61.64 billion, less than expectations of +$62.00 billion. Oct exports fell -6.9% y/y, more than expectations of -3.2% y/y and the fourth straight month of declines. Oct imports fell -18.8% y/y, more than expectations of -15.2% y/y and the twelfth consecutive month of declines.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) the Treasury's auction of $24 billion 3-year T-notes.

There are 5 of the S&P 500 companies that report earnings today: Priceline (consensus $24.19), Affiliated Managers Group (2.87), Scripps Networks Interactive (0.98), International Flavors and Fragrances (1.35), AGL Resources (0.21).

U.S. IPO's scheduled to price today: Xtera Communications (XCOM), GenSight Biologics (GNST).

Equity conferences today include: Mitsubishi UFJ Energy Tour-Houston on Mon, Morgan Stanley Global Chemicals & Agriculture Conference on Mon-Tue, Baird Healthcare Conference on Mon-Wed, Edison Electric Institute Financial Conference on Mon-Wed, Robert W. Baird & Co. Industrial Conference on Mon-Wed, Citi Financial Technology Conference on Tue, J.P. Morgan Ultimate Services Investor Conference on Tue, Mizuho Securities Technology Corporate Access Day on Tue, Mitsubishi UFJ Securities: Healthcare Conference - Seattle on Tue, Bank of America Merrill Lynch Global Energy Conference on Tue-Wed, Credit Suisse Boston Financials Conference on Tue-Wed, Credit Suisse Health Care Conference on Tue-Wed, Wells Fargo Securities Technology, Media and Telecom Conference on Tue-Wed, RBC Capital Markets Technology, Internet, Media and Telecommunications Conference on Tue-Wed, Stephens Inc Fall Investment Conference on Tue-Wed, Jefferies Energy Conference on Wed, UBS Building & Building Products CEO Conference on Wed.

OVERNIGHT U.S. STOCK MOVERS

Alcoa (AA -1.20%) was downgraded to 'Neutral' from 'Buy' at Nomura.

Priceline Group (PCLN -0.87%) reported Q3 adjusted EPS of $25.35, better than consensus of $24.19.

Scripps Networks Interactive (SNI +1.34%) reported Q3 EPS of $1.06, higher than consensus of 98 cents.

Affiliated Managers Group (AMG +0.89%) reported Q3 EPS of $2.93, better than consensus of $2.87.

Sanofi (SNY -7.58%) was downgraded to 'Neutral' from 'Buy' at UBS.

Marathon Oil (MRO -3.74%) said it will sell some its Gulf of Mexico assets for $205 million.

Apache Corp. (APA -3.25%) jumped 11% in pre-market trading after it said it rejected an unsolicited $18 billion offer for the company.

Hertz GLobal (HTZ +4.27%) reported Q3 adjusted EPS of 49 cents, weaker than consensus of 52 cents.

Kronos Worldwide (KRO -0.37%) reported an unexpected Q3 EPS loss of -10 cents, weaker than consensus of a profit of 6 cents.

Weight Watchers (WTW +35.20%) rose 4% in after-hours trading after Point 72 Asset reported a 6.0% stake in the company.

BioCryst Pharmaceuticals (BCRX -4.28%) climbed nearly 4% in after-hours trading after Baker Bros. said they raised their stake in the company to 19.5% from 15.8%.

WhiteWave Foods (WWAV -0.96%) rose over 1% in after-hours trading on optimism over the company's Q3 earnings results that are expected before the opening of trading on Monday, Nov 9.

Acadia Pharmaceuticals (ACAD -11.53%) fell nearly 2% in after-hours trading after its Chief Medical Officer, Roger Mills, resigned.

MARKET COMMENTS

Dec E-mini S&Ps (ESZ15 -0.32%) this morning are down -7.00 points (-0.33%). Friday's closes: S&P 500 -0.03%, Dow Jones +0.26%, Nasdaq +0.09%. The S&P 500 on Friday closed slightly lower on the increased odds for a Fed rate hike in December after the +271,000 increase in Oct non-farm payrolls, stronger than expectations of +185,000 and the largest increase in 10 months. In addition, energy producers sold off on a rally in the dollar index to a 6-3/4 month high, which pushed crude prices to a 1-week low. The main bullish factor was the record +$28.918 billion increase in Sep consumer credit, stronger than expectations of +$18.000 billion and a sign that consumers are confident enough in the economy to increase their debt load. Bank stocks rallied on speculation that an increase in interest rates will boost bank profits.

Dec 10-year T-notes (ZNZ15 -0.09%) this morning are down -4 ticks. Friday's closes: TYZ5 -25.00, FVZ5 -14.25. Dec T-notes on Friday slumped to a 3-1/2 month nearest-futures low and closed lower on the larger-than-expected increase in U.S. Oct non-farm payrolls and on the larger-than-expected increase in U.S. Oct average hourly earnings which bolsters the likelihood that the Fed will raise interest rates at December's FOMC meeting.

The dollar index (DXY00 -0.29%) this morning is down -0.279 (-0.28%). EUR/USD (^EURUSD) is up +0.0044 (+0.41%). USD/JPY (^USDJPY) is up +0.32 (+0.26%) at a fresh 2-1/2 month high. Friday's closes: Dollar Index +1.232 (+1.26%), EUR/USD +0.0143 (-1.31%), USD/JPY +1.38 (+1.13%). The dollar index on Friday surged to a 6-3/4 month high and closed higher on increased expectations for a December FOMC rate hike after the stronger-than-expected U.S. Oct payroll report. In addition, EUR/USD tumbled to a 6-1/2 month low on speculation the ECB may expand QE after German Sep industrial production unexpectedly fell by the most in 13 months.

Dec crude oil (CLZ15 +1.29%) this morning is up +61 cents (+1.38%) and Dec gasoline (RBZ15 +1.93%) is up +0.0284 (+2.07%). Friday's closes: CLZ5-0.68 (-1.50%), RBZ5 +0.0139 (+1.02%). Dec crude oil and gasoline prices on Friday settled mixed with Dec crude at a 1-week low. Crude oil prices were undercut by the surge in the dollar index to a 6-3/4 month high and by the ongoing U.S. crude supply glut with U.S. crude inventories more than 100 million bbls above the 5-year seasonal average. Gasoline moved higher on speculation fuel demand will increase with the strength in the economy.

GLOBAL EVENT CALENDAR11/09/2015

US	1100 ET	USDA weekly grain export inspections.
	1300 ET	Treasury auctions $24 billion 3-year T-notes.
	1600 ET	USDA weekly crop progress.
GER	0200 ET	German Sep trade balance expected +20.0 billion euros, Aug +15.4 billion euros. Sep exports expected +2.0% m/m, Aug -5.2% m/m. Sep imports expected +1.0% m/m, Aug -3.2% m/m.
	0200 ET	German Sep current account balance, Aug +12.3 billion euros.
EUR	0430 ET	Eurozone Nov Sentix investor confidence expected +1.4 to 13.1, Oct 11.7.
	0530 ET	OECD economic outlook.
UK	1901 ET	UK Oct BRC sales like-for-like expected +0.8% y/y, Sep +2.6% y/y.
CHI	2030 ET	China Oct CPI expected +1.5% y/y, Sep +1.6% y/y. Oct PPI expected -5.9% y/y, Sep -5.9% y/y.
	n/a	China Oct new yuan loans expected +800.0 billion yuan, Sep +1.050 trillion yuan.
JPN	2330 ET	Japan Oct bankruptcies, Sep -18.62% y/y.

U.S. STOCK CALENDAR11/09/2015

Company	Ticker	Time	Event Description	Period	Estimate
American Airlines Group Inc	AAL US	Bef-mkt	October 2015 Sales and Revenue Release - Traffic Results	2015
Affiliated Managers Group Inc	AMG US	Bef-mkt	Q3 2015 Earnings Release	Q3 2015	2.87
Scripps Networks Interactive Inc	SNI US	Bef-mkt	Q3 2015 Earnings Release	Q3 2015	0.978
Priceline Group Inc/The	PCLN US	7:00	Q3 2015 Earnings Release	Q3 2015	24.19
Priceline Group Inc/The	PCLN US	7:30	Q3 2015 Earnings Call	Q3 2015
Affiliated Managers Group Inc	AMG US	8:00	Q3 2015 Earnings Call	Q3 2015
Multiple Companies	REGN US	10:00	IL-6 Receptor Phase 3 Study Results Call
Scripps Networks Interactive Inc	SNI US	10:00	Q3 2015 Earnings Call	Q3 2015
United Continental Holdings Inc	UAL US	17:00	October 2015 Sales and Revenue Release - Operational Performance	2015
International Flavors & Fragrances Inc	IFF US	Aft-mkt	Q3 2015 Earnings Release	Q3 2015	1.35
AGL Resources Inc	GAS US		Q3 2015 Earnings Release	Q3 2015	0.21
Entergy Corp	ETR US		Shareholders Meeting
Exxon Mobil Corp	XOM US		Shareholders Meeting
Gap Inc/The	GPS US		October 2015 Sales and Revenue Release	2015
TJX Cos Inc/The	TJX US		Shareholders Meeting
Starbucks Corp	SBUX US		Shareholders Meeting
Macerich Co/The	MAC US		Shareholders Meeting
Macerich Co/The	MAC US		Shareholders Meeting
Macerich Co/The	MAC US		Shareholders Meeting
United Parcel Service Inc	UPS US		Roadshow - Day6	Y 2015
Principal Financial Group Inc	PFG US		Roadshow - Day 1	Y 2015
CONSOL Energy Inc	CNX US		Shareholders Meeting
Wynn Resorts Ltd	WYNN US		Shareholders Meeting
Delphi Automotive PLC	DLPH US		Shareholders Meeting

BARCHART MORNING CALL 1/7

BARCHART MORNING CALL

Wednesday, January 7th, 2015View Older Reports

Everything you need to know about the markets in one free daily newsletter.

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OVERNIGHT MARKETS AND NEWS

March E-mini S&Ps (ESH15 +0.59%) this morning are up +0.63% and European stocks are up +1.29% amid optimism that weaker-than-expected Eurozone Dec inflation bolsters the case for the ECB to begin quantitative easing. The Eurozone Dec CPI fell a more-than-expected -0.2% y/y, the biggest decline in 5-1/4 years. Energy producers are leading the rise in stocks as the price of crude oil gained. The Greek 10-year bond yield climbed to a 1-1/4 year high of 10.196% and sent the Greek ASE Stock Index tumbling to a 2-1/4 year low. European economic growth remains divergent after the Italy Nov unemployment rate unexpectedly rose +0.1 to a record high 13.4% (data from 1977), while the German Dec unemployment rate unexpectedly fell -0.1 to 6.5%, the lowest since data for a reunified Germany began in 1991. Asian stocks closed mixed: Japan +0.01%, Hong Kong +0.83%, China +0.08%, Taiwan +0.35%, Australia -0.21%, Singapore +0.50%, South Korea +0.25%, India -0.29%. Commodity prices are mixed. Feb crude oil (CLG15 +0.02%) is up +0.06%. Feb gasoline (RBG15 -1.02%) is down -0.67%. Feb gold (GCG15 -0.48%) is down -0.52%. Mar copper (HGH15 -0.38%) is down -0.33%. Agriculture prices are higher. The dollar index (DXY00 +0.46%) is up +0.58% at a new 9-year high. EUR/USD (^EURUSD) is down -0.52% at an 8-3/4 year low after the larger-than-expected decrease in Eurozone Dec CPI strengthened the case for the ECB to begin large-scale asset purchases. USD/JPY (^USDJPY) is up +0.63%. Mar T-note prices (ZNH15 -0.12%) are down -4 ticks.
Eurozone Dec CPI fell -0.2% y/y, more than expectations of -0.1% y/y and the fastest pace of decline in 5-1/4 years. Dec core CPI rose +0.8% y/y, a larger increase than expectations of +0.7% y/y.
The Eurozone Nov unemployment rate was unchanged at 11.5%, right on expectations.
The German Dec unemployment change fell -27,000 to a record low 2.841 million, more than expectations of -5,000 and the most in 8 months. The Dec unemployment rate unexpectedly fell -0.1 to 6.5%, better than expectations of unch and the lowest since data for a reunified Germany began in 1991.
German Nov retail sales rose +1.0% m/m, better than expectations of +0.2% m/m. On an annual basis, Nov retail sales unexpectedly fell -0.8% y/y, worse than expectations of +0.6% y/y.

U.S. STOCK PREVIEW

Today’s Dec ADP employment report is expected to show a solid increase of +225,000, which would be mildly above November’s rise of +208,000 and the 6-month moving average of +222,000.  Today’s Nov trade deficit is expected to narrow modestly to -$42.0 billion from -$43.4 billion in October.   There are 3 of  the Russell 1000 companies that report earnings today:  Monsanto (consensus $0.35), RPM International (0.55), MSC Industrial Direct (0.98).  Equity equity conferences during the remainder of this week include:  Citi Global Internet, Media & Telecommunications Conference on Tue-Wed, Goldman Sachs Global Energy Conference on Wed-Thu, and Evercore ISI Utility Conference on Thu-Fri.

OVERNIGHT U.S. STOCK MOVERS

Eli Lilly (LLY +0.50%) said it sees fiscal 2015 adjusted EPS of $3.10-$3.20, lower than consensus of $3.21 and that it sees fiscal 2015 revenue of $20.3 billion-$20.8 billion, below consensus of $20.88 billion.
Joy Global (JOY -2.07%) and Terex (TEX -3.23%) were both downgraded to 'Hold' from 'Buy' at KeyBanc.
The WSJ reports that 3G is discussing a possible acquisition of PepsiCo (PEP -0.76%) or Campbell Soup (CPB -0.67%) .
UnitedHealth (UNH -0.20%) was downgraded to 'Neutral' from 'Buy' at Goldman Sachs.
Cigna (CI +0.40%) was upgraded to 'Buy' from 'Neutral' at Goldman Sachs.
Sanofi (SNY +2.52%) was downgraded to 'Sell' from 'Neutral' at Citigroup.
Viking Global Investors reported a 5.5% passive stake in Mohawk (MHK -0.89%) .
J.C. Penney (JCP +1.86%) surged 19% in pre-market trading after it reported Nov/Dec same-store-sales were up 3.7%, at the upper end of guidance range of 2.0% - 4.0%.
Point72 Asset reported a 6.0% passive stake in Shutterfly (SFLY -3.85%) .
Point72 Asset reported an 8.7% passive stake in Kindred Healthcare (KND -1.44%) .
Nordstrom (JWN -0.63%) and Signet Jewelers (SIG -2.35%) were both initiated with an 'Outperform' at Cowen.
American Eagle (AEO +0.36%) was upgraded to 'Market Perform' from 'Underperform' at Cowen.
Micron (MU -2.69%) fell 5% in after-hours trading after it reported Q1 adjusted EPS of 97 cents, better than consensus of 92 cents, but reported Q1 revenue of $4.57 billion, below consensus of $4.62 billion. Micron also said it expects Q2 revenue of $4.1 billion-$4.3 billion, below consensus of $4.53 billion.

MARKET COMMENTS

Mar E-mini S&Ps (ESH15 +0.59%) this morning are up +12.50 points (+0.63%). The S&P 500 index on Tuesday fell to a 2-1/2 week low and closed lower: S&P 500 -0.89%, Dow Jones -0.74%, Nasdaq -1.20%. Bearish factors included (1) the -0.7% drop in U.S. Nov factory orders, weaker than expectations of -0.5%, (2) the -3.1 point decline in the Dec ISM non-manufacturing index, weaker than expectations of -1.3 to a 6-month low of 58.0, and (3) a slide in energy producers after the price of crude oil slumped to a new 5-1/2 year low.
Mar 10-year T-notes (ZNH15 -0.12%) this morning are down -4 ticks. Mar 10-year T-note futures prices on Tuesday rose to a 2-1/2 month high and closed higher. Closes: TYH5 +19.0, FVH5 +12.25. Bullish factors included (1) carry-over support from a plunge in the 10-year German bund yield to a record low 0.441% on speculation the ECB will embark on QE at its Jan 22 policy meeting, and (2) weaker-than-expected U.S. economic data on Nov factory orders and the Dec ISM non-manufacturing index.
The dollar index (DXY00 +0.46%) this morning is up +0.529 (+0.58%) at a new 9-year high. EUR/USD (^EURUSD) is down -0.0062 (-0.52%) at an 8-3/4 year low. USD/JPY (^USDJPY) is up +0.75 (+0.63%). The dollar index on Tuesday closed slightly higher, but remained below Monday’s 9-year high: Dollar index +0.121 (+0.13%), EUR/USD -0.00429 (-0.36%), USD/JPY -1.255 (-1.05%). The main supportive factor was weakness in EUR/USD on speculation the ECB is closer to large-scale sovereign-bond purchases and on concern that Jan 25 elections in Greece may put the anti-austerity Syriza party into power and lead to Greece’s departure from the Eurozone. Limiting gains in the dollar was a fall in USD/JPY fell to a 2-week low as a slide in stocks boosted the safe-haven demand for the yen.
Feb WTI crude oil (CLG15 +0.02%) this morning is up +3 cents (+0.06%) and Feb gasoline (RBG15 -1.02%) is down -0.0091 (-0.67%). Feb crude and Feb gasoline on Tuesday dropped to new 5-1/2 year lows and closed lower: CLG5 -2.11 (-4.22%), RBG5 -0.0334 (-2.42%). Bearish factors included (1) dollar strength, (2) weaker-than-expected U.S. economic data on Nov factory orders and the Dec ISM non-manufacturing index, which signals reduced energy demand, and (3) expectations that Wednesday’s weekly EIA data will show crude supplies increased by +700,000 bbl.

GLOBAL EVENT CALENDAR01/07/2015

US	0700 ET	Weekly MBA mortgage applications, previous +0.9% with purchase sub-index +1.3% and refi sub-index +1.1%.
	0815 ET	Dec ADP employment change expected +225,000, Nov +208,000.
	0830 ET	Nov trade balance expected -$42.0 billion, Oct -$43.4 billion.
	1030 ET	EIA Weekly Petroleum Status Report.
	1400 ET	Minutes of the Dec 16-17 FOMC meeting.
	1830 ET	Chicago Fed President Charles Evans discusses the role and impact of monetary policy in an uncertain economy at an event in Chicago.
GER	0200 ET	German Nov retail sales expected +0.2% m/m and +0.6% y/y, Oct +1.6% m/m and +1.7% y/y.
	0330 ET	German Dec Markit construction PMI, Nov 53.5.
	0355 ET	German unemployment change expected -5,000, Nov -14,000. Dec unemployment rate expected unch at 6.6%.
UK	0400 ET	UK Dec new car registrations, Nov +8.0% y/y.
	0430 ET	UK Dec Lloyds business barometer, Nov 42.
EUR	0500 ET	Eurozone Dec CPI expected -0.1% y/y, Nov +0.3% y/y. Dec core CPI expected +0.7% y/y, Nov +0.7% y/y.
	0500 ET	Eurozone Nov unemployment rate expected unch at 11.5%.

U.S. STOCK CALENDAR01/07/2015

Company	Ticker	Time	Event Description	Period	Estimate
RPM International Inc	RPM US	7:30	Q2 2015 Earnings Release	Q2 2015	0.55
MSC Industrial Direct Co Inc	MSM US	7:30	Q1 2015 Earnings Release	Q1 2015	0.976
Monsanto Co	MON US	8:00	Q1 2015 Earnings Release	Q1 2015	0.347
MSC Industrial Direct Co Inc	MSM US	8:30	Q1 2015 Earnings Call	Q1 2015
Eli Lilly & Co	LLY US	9:00	Q4 2015 Guidance Call	Q4 2015
Monsanto Co	MON US	9:30	Q1 2015 Earnings Call	Q1 2015
RPM International Inc	RPM US	10:00	Q2 2015 Earnings Call	Q2 2015
Acuity Brands Inc	AYI US	11:00	Annual General Meeting	Y 2015
Rovi Corp	ROVI US	17:30	Investor and Analyst Day	Y 2015
Apollo Education Group Inc	APOL US		Annual General Meeting1/7

Barchart Morning Call 9/5

Barchart Morning Call

BC - 2 hrs 7 mins ago

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OVERNIGHT MARKETS AND NEWS

September E-mini S&Ps (ESU13 -0.05%) this morning are down -0.2%, although European stocks are up +0.30%. Asian stocks closed mixed: Japan +0.08%, Hong Kong +1.22%, China -0.38%, Taiwan +1.06%, Australia -0.37%, Singapore +0.80%, South Korea +0.98%, India +2.22%. Stocks fluctuated over Syrian concerns, while the 10-year German bund yield rose to a 17-month high of 2.00% before today's ECB interest rate decision. Commodity prices are mixed. Oct crude oil (CLV13 +0.48%) is up +0.50% and Oct gasoline (RBV13 -0.17%) is down -0.23%. Dec gold (GCZ13 +0.40%) is up +0.40% and Dec copper (HGZ13 +0.19%) is up +0.48%. Agricultural and livestock prices are mostly lower. The dollar index (DXY00 +0.05%) is unchanged. EUR/USD (^EURUSD) is up +0.04% and USD/JPY (^USDJPY) is up +0.14% at a 6-week high as the yen weakened after BOJ Governor Kuroda said the central bank will act if a proposed tax increase undercuts the economy. December T-note prices (ZNZ13 -0.47%) are down -12 ticks as they followed German bunds lower, with the 10-year T-note yield climbing to a new 2-year high of 2.94%.
As expected, the BOE maintained its benchmark rate at 0.50% and kept its asset purchase target at 375 billion pounds.
German July factory orders fell -2.7% m/m and rose +2.0% y/y, weaker than expectations of -1.0% m/m and +2.9% y/y, although Jun factory orders were revised up to +5.0% m/m and +5.6% y/y from the originally reported +3.8% m/m and +4.3% y/y.
Minneapolis Fed President Kocherlakota, who spoke at an event late Wednesday, hinted that he does not favor cutting stimulus when he said the FOMC's "own forecasts suggest that it should be providing more stimulus to the economy, not less."
The BOJ maintained its current extraordinary monetary policy measures following a 2-day meeting today and upgraded its economic outlook when it said a "moderate recovery" is under way. BOJ Governor Kuroda hinted that the BOJ will act if a proposed sales-tax increase slows the economy when he said if the tax move has a big effect on the economy, "fiscal policy can respond and if downside risks materialize to the 2% inflation target, we will of course take appropriate steps."
In an attempt to lower long-term interest rates and strengthen the rupee, new RBI Governor Rajan announced a plan to provide concessional swaps for banks' foreign-currency deposits, a move that could potentially boost the dollar reserves of the RBI, while India's lower house of parliament tried to stem the outflow of capital from the country after it passed a bill that allows international holdings in the country's pension funds.

U.S. STOCK PREVIEW

Today’s Aug ADP employment report is expected to show an increase of +180,000, down from +200,000 in July. Today’s initial unemployment claims report is expected to show a slight decline of -1,000 to 330,000, adding to last week’s -6,000 decline to 331,000. Today’s July factory orders report is expected to show a decline of -3.4%, more than reversing the +1.5% increase seen in June. Today’s Aug ISM non-manufacturing index is expected to ease by -1.0 points to 55.0, reversing part of the +3.8 point increase to 56.0 seen in July.
There are 3 of the Russell 1000 companies that report earnings today: Cooper Companies (consensus $1.72), Forest City Enterprises (-0.02), VeriFone Systems (0.20). Conferences this week include: 18th Handelsblatt Annual Conference - Banks in Upheaval on Thu, and Scotiabank Financials Conference 2013 on Thu.

OVERNIGHT U.S. STOCK MOVERS

Sherwin-Williams (SHW +0.74%) was upgraded to "Buy" from "Neutral" at Longbow.
The NY Times reports that President Obama prefers to nominate Larry Summers as the next Fed chairman.
Lockheed Martin (LMT +0.52%) was downgraded to "Sector Perform" from "Outperform" at RBC Capital.
Newmont Mining (NEM +0.48%) was downgraded to "Equal Weight" from "Overweight" due to valuation at Barclays.
Viacom (VIAB +0.24%) was downgraded to "Neutral" from "Buy" at B. Riley.
JoS. A. Bank (JOSB +0.33%) reported Q2 EPS of 51 cents, lower than consensus of 52 cents.
Transocean (RIG +0.15%) was upgraded to "Outperform" from "Neutral" at Credit Suisse.
POZEN (POZN +1.34%) jumped jumped 13% in after-hours trading after it announced it had signed a commercialization agreement with Sanofi (SNY +0.63%) .
Greif (GEF +3.27%) reported Q3 EPS of 80 cents, below consensus of 89 cents.
Raging Capital reported a 12.5% passive stake in Standard Register (SR +17.27%) .
Starbucks (SBUX +0.75%) was initiated with an "Outperform" at Wedbush with a price target of $80.

MARKET COMMENTS

Sep E-mini S&Ps (ESU13 -0.05%) this morning are little changed, down -0.25 of a point (-0.02%). The S&P 500 index on Wednesday climbed to a 1-week high and closed higher. Stocks opened higher on signs that there will be no immediate U.S. military attack on Syria after Russian President Putin said he will only support a UN resolution for military strikes against Syria if there's conclusive proof that the Syrian government used chemical weapons on its own people. Stocks moved even higher after the Fed's Beige Book stated that the economy maintained a "modest to moderate" pace of growth. Closes: S&P 500 +0.81%, Dow Jones +0.65%, Nasdaq 100 +1.06%.
Dec 10-year T-notes (ZNZ13 -0.47%) this morning are down -12 ticks as the 10-year T-note yield overnight rose to a new 2-year high of 2.94%. Dec 10-year T-note prices on Wednesday closed lower on reduced safe-haven demand as stocks rallied and on the likelihood that the Fed will start to taper QE later this month after the Beige Book said that spending on cars and housing helped the economy maintain a "modest to moderate" pace of expansion from early July through late August, and that manufacturing expanded "modestly" and hiring "held steady or increased modestly." Closes: TYZ3 -15.00, FVZ3 -12.00.
The dollar index (DXY00 +0.05%) this morning is unch. EUR/USD (^EURUSD) is up +0.0005 (+0.04%) and USD/JPY (^USDJPY) is up +0.14 (+0.14%) at a 6-week high. The dollar index on Wednesday closed lower on reduced safe-haven demand as stocks rallied as the prospects of an immediate U.S. attack on Syria dwindled. The dollar was also undercut after the U.S trade balance widened to a deficit of -$39.1 billion, a bigger deficit than expectations of -$38.6 billion. Closes: Dollar index -0.192 (-0.23%), EUR/USD +0.00365 (+0.28%), USD/JPY +0.185 (+0.19%).
Oct WTI crude oil (CLV13 +0.48%) this morning is up +54 cents (+0.50%) and Oct gasoline (RBV13 -0.17%) is down -0.0065 (-0.23%). Oct crude oil and gasoline prices on Wednesday closed lower on signs that there will be no immediate U.S. military attack on Syria. Russian President Putin said he will only support a UN resolution for military strikes against Syria if there's conclusive proof that the Syrian government used chemical weapons on its own people. Another negative for crude prices in growing speculation the Fed will begin tapering QE later this month, which may slow economic growth and demand for commodities. Closes: CLV3 -1.31 (-1.21%), RBV3 -0.0003 (-0.01%).

GLOBAL EVENT CALENDAR09/05/2013

US	0815 ET	Aug ADP employment change expected +180,000, July +200,000.
	0830 ET	Weekly initial unemployment claims expected -1,000 to 330,000, previous -6,000 to 331,000. Weekly continuing claims expected -5,000 to 2.984 million, previous -14,000 to 2.989 million.
	0830 ET	Revised Q2 non-farm productivity expected +1.6%, previous +0.9%. Revised Q2 unit labor costs expected +0.9%, previous +1.4%.
	0900 ET	Minneapolis Fed President Narayana Kocherlakota speaks at the Economic Indicator Breakfast at the University of Wisconsin Lacrosse.
	1000 ET	July factory orders expected -3.4%, Jun +1.5%.
	1000 ET	Aug ISM non-manufacturing index expected -1.0 to 55.0, July +3.8 to 56.0.
	1100 ET	EIA Weekly Petroleum Status Report.
	1100 ET	Treasury announces amounts of 3-year T-notes (previous $32 billion), 10-year T-notes (previous $24 billion), and 30-year T-bonds (previous $16 billion) to be auctioned Sep 10-12.
	n/a	G-20 leaders begin a 2-day summit in St. Petersburg, Russia.
UK	0430 ET	UK Lloyds Aug employment confidence, July -22.
	0700 ET	BOE announces interest rate decision and asset purchase target (expected no change to 0.50% benchmark rate or to the 375 billion pound asset target).
GER	0600 ET	German July factory orders expected -1.0% m/m and +2.9% y/y, Jun +3.6% m/m and +4.3% y/y.
EUR	0745 ET	ECB announces interest rate decision (expected no change to the 0.50% 2-week refinancing rate).
	0830 ET	ECB President Draghi holds press conference following ECB meeting.
JPN	n/a	BOJ announces interest rate decision following 2-day meeting.

U.S. STOCK CALENDAR09/05/2013

Company Name	Ticker	Time	Event Description	Period	Estimate
Fastenal Co	FAST US	7:00	August 2013 Sales and Revenue Release	2013
L Brands Inc	LTD US	7:30	August 2013 Sales and Revenue Call	2013
Theravance Inc	THRX US	8:30	TD-4208 Phase 2b study Results Call
Stryker Corp	SYK US	9:00	Analysts Meeting	Y 2013
Greif Inc	GEF US	10:00	Q3 2013 Earnings Call	Q3 2013
Forest City Enterprises Inc	FCE/A US	Aft-mkt	Q2 2014 Earnings Release	Q2 2014	-0.015
VeriFone Systems Inc	PAY US	Aft-mkt	Q3 2013 Earnings Release	Q3 2013	0.204
Gap Inc/The	GPS US		August 2013 Sales and Revenue Release	2013
L Brands Inc	LTD US		August 2013 Sales and Revenue Release	2013
Walgreen Co	WAG US		August 2013 Sales and Revenue Release	2013
Costco Wholesale Corp	COST US		August 2013 Sales and Revenue Release	2013
AutoNation Inc	AN US		August 2013 Sales and Revenue Release	2013

4 stocks with sell signals

Below are the 4 stock I deleted from the Barchart Van Meerten New High portfolio for triggering Bachart sell signals based on very poor price momentum.

Praxair (PX)

Barchart technical indicators:

• 60% Barchart short term technical sell signal
• Trend Spotter sell signal
• Below its 20, 50 and 100 day moving averages
• 12.71% off its recent high
• Relative Strength Index 31.68% and falling 

Sanofi-Aventis (SNY)

Barchart technical indicators:

• 80% Barchart short term technical sell signal
• Trend Spotter sell signal
• Below its 20, 50 and 100 day moving average
• 11.14% off its recent high
• Relative Strength Index 37.80% and falling

Chevron (CVX)

Barchart technical indicators:

• 72% Barchart overall technical sell signal
• Trend Spotter sell signal
• Below its 20, 50 and 100 day moving averages
• 10.31% off its recent high
• Relative Strength Index 35.38% and falling

Capstead Mortgage (CMO)

Barchart technical indicators:

• 100% Barchart short term technical sell signal
• Trend Spotter sell signal
• Below its 20, 50 and 100 day moving averages
• 11.90% off its recent high
• Relative Strength Index 29.83% and falling

Jim Van Meerten is a Marketocracy Master

5 Large Cap Pharmas on the move but I voice caution

The Large Cap Pharma sector is the fastest rising sector on Barchart when screening for the 1 month price change.  The general investing public is very interested in this sector as evidenced by the 25,409 opinions expressed on Motley Fool on the 5 stocks I selected.  Before buying make sure a pharma fits into your asset allocation plan and then please do you own further due diligence.  Read my opinion at the end of this article.  Let's look at these 5.

Merck (MRK) -  a global research-driven pharmaceutical company dedicated to putting patients first. Established in 1891, Merck discovers, develops, manufactures and markets vaccines and medicines to address unmet medical needs. The company devotes extensive efforts to increase access to medicines through far-reaching programs that not only donate Merck medicines but help deliver them to the people who need them. Merck also publishes unbiased health information as a not-for-profit service.

Technical Factors:

• 100% Barchart short term technical buy signal
• Trend Spotter buy signal
• 8 new highs and up 7.43% in the last month
• Relative Strength Index is 69.87% and climbing
• Trades around 35.60 with a 50 day moving average of 32.84

Fundamental Factors:

• Wall Street brokerages have published 6 strong buy, 11 buy and 7 hold recommendations
• Sales are expected to increase by 2.20% this year and decline by (1.30%) next year
• Earnings are estimated to increase by 7.90% this year, 2.70% next year and 4.90% annually for the next 5 years

General Investor Sentiment:

• 3,596 opinions on Motley Fool
• CAPS members vote 2,670 to 203 that the stock will beat the market
• All Stars agree 681 to 42

Eli Lily (LLY) discovers, develops, manufactures, and sells products in one significant business segment -pharmaceutical products. The company directs its research efforts primarily toward the search for products to diagnose, prevent and treat human diseases. The company also conducts research to find products to treat diseases in animals and to increase the efficiency of animal food production.

Technical Factors:

• 100% Barchart overall technical buy signal
• Trend Spotter buy signal
• 11 new highs and up 6.58% in the last month
• Relative Strength Index 71.87% and rising
• Trades around 36.66 with a 50 day moving average of 34.94

Fundamental Factors:

• Wall Street brokerages have released 1 strong by, 2 buy and 13 hold recommendations
• Sales expected to increase by 1.70% this year and decrease by (6.10%) next year
• Earnings are expected to decrease by (9.90%) this year, (13.10%) next year and (4.79%) annually for the next 5 years

General Investor Sentiment:

• 1,1776 opinions expressed on Motley Fool about this stock
• CAPS members vote 1,247 to 89 that the stock will beat the market
• The more experienced All Stars agree 420 to 20

Johnson & Johnson (JNJ ) is engaged in the manufacture and sale of a broad range of products in the health care field in many countries of the world. The company's worldwide business is divided into three segments: Consumer; Pharmaceutical; and Professional.

Technical Factors:

• 100% Barchart short term technical buy signal
• Trend Spotter buy signal
• 9 new highs and  up 10.36% in the last month
• Relative Strength Index 80.34% and rising
• Trades around 65.10 with a 50 day moving average of 60.17

Fundamental Factors:

• Wall Street brokerages have published 4 strong buy, 5 buy and 13 hold recommendations to their clients
• Sales are expected to increase by 4.40% this year and 4.20% next year
• Earnings are expected to increase by 1.70% this year, 6.40% next year and 6.33% annually for the next 5 years

General Investor Sentiment:

• One of the most widely followed stocks on Motley Fool with 16,722 readers expressing an opinion
• CAPS members vote 13,139 to 488 that the stock will beat the market
• The All Stars vote 3,042 to 53 for the same result

Sanofi-Aventis (SNY)  a global pharmaceutical company that contributes to enhance life by providing medicines, vaccines, and integrated health care solutions adapted to local needs and means primarily in Europe and the United States. The company is engaged in the research, development, manufacture and marketing of health care products. Its strategy is built around three priorities to reach its goals and ensure sustainable growth. The priorities are: increasing innovation in Research and Development, adapting Group structures to future challenges and seizing external growth opportunities. Sanofi-Aventis specializes in six therapeutic areas: thrombosis, cardiovascular, metabolic disorders, oncology, central nervous system (CNS) and internal medicine. The Company offers vaccines in five areas: pediatric combination vaccines, influenza vaccines, adult and adolescent booster vaccines, meningitis vaccines, and travel and endemic vaccines. Sanofi-Aventis is headquartered in Paris, France.

Technical Factors:

• 96% Barchart overall technical buy signal
• Trend Spotter buy signal
• 17 new highs and up 12.11% in the last month
• Relative strength Index 73.76% and rising
• Trades around 38.84 with a 50 day moving average of 35.32

Fundamental Factors:

• Wall Street brokerages have released 1 strong buy, 1 buy and 3 hold reports for their brokers to call clients about
• Sales are expected to decrease by (.50%) this year, but increase by 4.00% next year
• Earnings are expected to increase by 24.80% this year but decrease by (25.90%) next year.  The 5 year EPS projection is a decrease of (2.45%) annually

General Investor Sentiment:

• Only 1,282 opinions on Motley Fool
• CAPS members vote 899 to 43 that the stock will beat the market
• The more experienced All Stars vote in the same direction 332 to 8

Novartis (NVS) is committed to improving health and well-being through innovative products and services. The company aspires to capture and hold a leadership position in all of their businesses with a strong, sustainable performance based on continuous innovation. Their long-term success is founded on meeting the expectations of all our stakeholders - their customers, their people, their shareholders and the communities in which they live and work.

Technical Factors:

• 96% Barchart overall technical buy signal
• Trend Spotter buy signal
• 6 new highs and up 3.37% in the last month
• Relative strength Index 62.33% and rising
• Trades around 57.64 with a 50 day moving average of 55.19

Fundamental Factors:

• Wall Street brokerages have 5 strong buy 1 buy and no hold recommendations
• Sales are expected to increase by 13.20% this year and 1.80% next year
• Earnings are expected to increase by 3.00% this year, 5.80% next year and 4.65% annually for the next 5 years

General Investor Sentiment:

• 2,033 members have expressed opinions on Motley Fool
• CAPS members vote 1,462 to 48 that the stock will beat the market
• All Stars agree 516 to 7

I sorry but I'm not as high on this sector as everyone else is.  You may ask why?  The technical indicators are positive, Wall Street has buy recommendation out and the general investing public thinks the sector will beat the market.  My view is wishing won't make it so.  There are too many "IF's" here.  Sales projections in the future are good only "IF" new drugs are discovered.  Profit projections are good only "IF" subsidized medical care is approved.

For me to put my money down I need to see all the planets in alignment: growing economy, rising stock market, solid double digit projections of sales and earnings and strong and consistent price momentum.

This sector lacks double digit growth projections and strong and consistent price momentum.  Only traders and stop loss disciplined investors should be in this sector.

Jim Van Meerten is an analyst for  Marketocracy Capital Management.  He shares his knowledge and experience from over 40 years of investing in stocks, mutual funds and ETFs on  Barchart.com  in his daily blog -- Barchart Portfolio Blogs.

http://www.barchart.com/