Tuesday, May 16, 2017

MORNING CALL 5/16

Barchart Morning Call

Barchart.com - Tue May 16, 6:42AM CDT

OVERNIGHT MARKETS AND NEWS

Jun E-mini S&Ps (ESM17 +0.07%) this morning are little changed, up +0.01%, as stock prices consolidate following Monday's rally to a new record high. European stocks are down -0.12% as exporter companies weakened after EUR/USD climbed to a 6-1/4 month high. Losses were contained on signs of European economic optimism after the German May ZEW survey expectations of economic growth rose to a 1-3/4 year high. Asian stocks settled mostly higher: Japan +0.25%, Hong Kong -0.14%, China +0.74%, Taiwan -0.05%, Australia +0.21%, Singapore -1.12%, South Korea +0.27%, India +0.86%. China's Shanghai Composite erased early declines and climbed to a 1-week high on signs that policy makers are trying to stabilize the market with state-sponsored buying of equities. Japan's Nikkei Stock Index rallied to a 17-1/2 month high as optimism over corporate earnings boosts stock prices. Japanese telecommunication stocks rose, led by gains in Nippon Telegraph & Telephone, after it announced plans to raise its dividend this year.

The dollar index (DXY00 -0.47%) is down -0.42% at a 6-month low. EUR/USD (^EURUSD) is up +0.75% at a 6-1/4 month high. USD/JPY (^USDJPY) is down -0.11%.

Jun 10-year T-note prices (ZNM17 -0.05%) are down -1 tick.

ECB Governing Council member Smets said risks to Eurozone economic growth "are certainly close to balance," although "in my opinion, it is still too early to declare that inflation is durably converging to its target."

Eurozone Apr new car registrations fell -6.6% y/y to 1.191 million, the largest decline in 4 years. Year-to-date registrations are up +4.7% y/y to 3,819,086.

The German May ZEW survey expectations of economic growth rose +1.1 to 20.6, weaker than expectations of +2.5 to 22.0, but still the highest in 1-3/4 years.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Apr housing starts (expected +3.7% to 1.260 million, Mar -6.8% to 1.215 million), (2) Apr industrial production (expected +0.4%, Mar +0.5%).

Notable Russell 2000 earnings reports today include: Home Depot (consensus $1.61), TJX (0.79), Staples (0.17), Dick's Sporting Goods (0.54), Alere (0.54), Urban Outfitters (0.15).

U.S. IPO's scheduled to price today: G1 Therapeutics (GTHX), Modern Media Acquisition (MMDMU).

Equity conferences: JP Morgan Denver Energy Bus Tour on Mon-Tue, Bank of America Merrill Lynch Global Mining Metals & Steel Conference on Tue, Deutsche Bank Clean Tech Utility & Power Conference on Tue, Needham Emerging Technology Conference on Tue-Wed, Goldman Sachs Basic Materials Conference on Tue-Wed, Bank of America Merrill Lynch Health Care Conference on Tue-Thu, Barclays Americas Select Franchise Conference on Tue-Fri, Stephens Energy Executive Summit on Wed, BMO Capital Markets Farm to Market Conference on Wed-Thu, J.P. Morgan Homebuilding & Building Products Conference on Wed-Thu, MoffettNathanson Media & Communications Summit on Wed-Thu, RBC Capital Markets Canadian Automotive, Transportation & Industrials Conference on Thu, Barclays Water Symposium - Panel on Thu.

OVERNIGHT U.S. STOCK MOVERS

Yum! Brands (YUM +0.46%) was upgraded to 'Buy' from 'Hold' at Argus with a price target of $80.

Dr Pepper Snapple Group (DPS +0.82%) was upgraded to 'Overweight' from 'Equalweight' at Morgan Stanley with a price target of $104.

Pfizer (PFE +0.33%) is down over 1% in pre-market trading after it was downgraded to 'Sell' from 'Neutral' at Citigroup.

Sysco (SYY +0.17%) was initiated with a 'Buy' at Loop Capital Markets with a 12-month price target of $61.

LGI Homes ({=LGIH was upgraded to 'Market Perform' from 'Underperform' at Wells Fargo Securities with a price target of $33.

Sage Therapeutics (SAGE -0.58%) was initiated with a 'Buy' at Needham & Co. with a 12-month target price of $82.

Vipshop Holdings Ltd (VIPS -0.87%) rose over 2% in after-hours trading after it reported Q1 revenue of $2.32 billion, above consensus of $2.27 billion.

Kornit Digital Ltd (KRNT +0.68%) slid 3% in after-hours trading after it announced the launch of an underwritten secondary public offering of 4.25 million shares of its stock by the company's largest shareholder, Fortissimo Capital Fund II LP.

Editas Medicine (EDIT +3.73%) lost nearly 7% in after-hours trading after it reported a Q1 loss of -85 cents a share, wider than consensus of -70 cents.

Akebia Therapeutics (AKBA +1.65%) jumped 12% in after-hour trading after it entered into an exclusive license pact with Fresenius Medical to exclusively distribute vadadustat upon FDA approval.

Etsy Inc (ETSY +0.53%) may move higher today after TPG Group reported a 4.3% stake in Etsy and Dragoneer reported a 3.7% stake in the company.

Pernix Therapeutics Holdings (PTX -2.05%) plunged 30% in after-hours trading after it reported a Q1 net loss of -$29.5 million and said it is still analyzing strategic and refinancing alternatives.

MARKET COMMENTS

June E-mini S&Ps (ESM17 +0.07%) this morning are up +0.25 of a point (+0.01%). Monday's closes: S&P 500 +0.48%, Dow Jones +0.41%, Nasdaq +0.31%. The S&P 500 on Monday rallied to a new record high and closed higher on the unexpected +2 point increase in the U.S. May NAHB housing market index, stronger than expectations of unchanged at 68, and on strength in energy producing companies after crude oil rose 2.11% to a 2-week high. Stocks were undercut by the -6.2 point decline in the U.S. May Empire manufacturing index to -1.0, weaker than expectations of +2.3 to 7.5 and the steepest pace of contraction in 7 months.

June 10-year T-notes (ZNM17 -0.05%) this morning are down -1 tick. Monday's closes: TYM7 -0.50, FVM7 -0.50. Jun 10-year T-notes on Monday fell back from a 1-1/2 week high and closed slightly lower on the unexpected increase in the U.S. May NAHB housing market index (+2 to 70), and (2) the rally in the S&P 500 to a new record high, which reduces the safe-haven demand for T-notes.

The dollar index (DXY00 -0.47%) this morning is down -0.419 (-0.42%) to a 6-month low. EUR/USD (^EURUSD) is up +0.0082 (+0.75%) at a 6-1/4 month high and USD/JPY (^USDJPY) is down -0.12 (-0.11%). Monday's closes: Dollar index -0.341 (-0.34%), EUR/USD +0.0044 (+0.40%), USD/JPY +0.41 (+0.36%). The dollar index on Monday closed lower on the rally in crude oil that boosted the currencies of the crude oil exporting countries of Russia and Canada to 2-week highs against the dollar. The dollar index was also undercut by the unexpected contraction in the U.S. May Empire manufacturing survey of general business conditions (-6.2 to -1.0), which bolsters the case for the Fed to refrain from further raising interest rates.

June WTI crude oil prices (CLM17 +0.63%) this morning are up +18 cnts (+0.37%) and June gasoline (RBM17 +0.81%) is +0.0080 (+0.50%). Monday's closes: Jun crude +1.01 (+2.11%), Jun gasoline +0.0139 (+1.22%). Jun crude oil and gasoline on Monday rallied to 2-week highs and settled higher. Crude oil prices rallied on a weaker dollar and comments from Saudi Arabia's and Russia's energy ministers that they favor extending their crude oil production cuts until Mar 2018, three months longer than expectations for an extension to the end of 2017.

GLOBAL EVENT CALENDAR05/16/2017

		Tuesday, May 16
US	0830 ET	Apr housing starts expected +3.7% to 1.260 million, Mar -6.8% to 1.215 million. Apr building permits expected +0.2% to 1.270 million, Mar +4.2% to 1.267 million.
	0915 ET	Apr industrial production expected +0.4%, Mar +0.5%. Apr manufacturing production expected +0.4%, Mar -0.4%. Apr capacity utilization expected +0.2 to 76.3%, Mar +0.4 to 76.1%.
		Wednesday, May 17
US	0700 ET	Weekly MBA mortgage applications, previous +2.4% with purchase sub-index +1.7% and refi sub-index +3.3%.
	1030 ET	EIA Weekly Petroleum Status Report.

U.S. STOCK CALENDAR05/16/2017

Company	Ticker	Time	Event Description	Period	Estimate
Staples Inc	SPLS US	Bef-mkt	Q1 2018 Earnings Release	Q1 18	0.173
Dick's Sporting Goods Inc	DKS US	Bef-mkt	Q1 2018 Earnings Release	Q1 18	0.542
Murphy USA Inc	MUSA US	08:00	Investor Day
Staples Inc	SPLS US	08:00	Q1 2018 Earnings Call	Q1 18
Diamond Offshore Drilling Inc	DO US	08:30	Annual General Meeting
Hanover Insurance Group Inc/The	THG US	09:00	Annual General Meeting
Stanley Black & Decker Inc	SWK US	09:00	Investor Day
FirstEnergy Corp	FE US	09:00	Annual General Meeting
Home Depot Inc/The	HD US	09:00	Q1 2018 Earnings Call	Q1 18
Home Depot Inc/The	HD US	09:00	Q1 2018 Earnings Release	Q1 18	1.614
TJX Cos Inc/The	TJX US	09:30	Q1 2018 Earnings Release	Q1 18	0.79
Avis Budget Group Inc	CAR US	09:30	Annual General Meeting
BankUnited Inc	BKU US	10:00	Annual General Meeting
Dick's Sporting Goods Inc	DKS US	10:00	Q1 2018 Earnings Call	Q1 18
JPMorgan Chase & Co	JPM US	10:00	Annual General Meeting
Principal Financial Group Inc	PFG US	10:00	Annual General Meeting
Arthur J Gallagher & Co	AJG US	10:00	Annual General Meeting
Halliburton Co	HAL US	10:00	Annual General Meeting
Quest Diagnostics Inc	DGX US	10:30	Annual General Meeting
Square Inc	SQ US	11:00	Investor Day
Vectren Corp	VVC US	11:00	Annual General Meeting
TJX Cos Inc/The	TJX US	11:00	Q1 2018 Earnings Call	Q1 18
Stanley Black & Decker Inc	SWK US		Investor Day
Realty Income Corp	O US		Annual General Meeting
WR Berkley Corp	WRB US		Annual General Meeting
Alere Inc	ALR US		Q1 2017 Earnings Release	Q1 17	0.54
Newfield Exploration Co	NFX US		Annual General Meeting
ConocoPhillips	COP US		Annual General Meeting
QEP Resources Inc	QEP US		Annual General Meeting
Packaging Corp of America	PKG US		Annual General Meeting
Arconic Inc	ARNC US		Annual General Meeting - Proxy Fight for Board Representation
Masco Corp	MAS US	13:00	Investor Day
Nordstrom Inc	JWN US	14:00	Annual General Meeting
Essex Property Trust Inc	ESS US	16:00	Annual General Meeting
Urban Outfitters Inc	URBN US	Aft-mkt	Q1 2018 Earnings Release	Q1 18	0.151
Charles Schwab Corp/The	SCHW US	17:00	Annual General Meeting
Urban Outfitters Inc	URBN US	17:00	Q1 2018 Earnings Call	Q1 18

Monday, May 15, 2017

JD.Com - Chart of the Day

JD.Com (JD) is the Barchart Chart of the Day. The Internet commerce company has a Trend Spotter buy signal, a Weighted Alpha of 89.36+ and gained 77.69% in the last year.

The Chart of the Day belongs to JD.Com (JD). I found the Internet commerce stock by using Barchart to sort today's All Time High list first by the most frequent number of new highs in the last month, then again by technical buy signals of 80% or more. Since the Trend Spotter signaled a buy on 3/28 the stock gained 27.88%.

JD.com, Inc. operates as an online direct sales company in China. The Company, through its Website www.jd.com and mobile applications offers a selection of authentic products. It offers computers; mobile handsets and other digital products, home appliances; automobile accessories; clothing and shoes; luxury goods including handbags, watches and jewelry, furniture and household products; cosmetics and other personal care items; food and nutritional supplements; books, e-books, music, movies and other media products; mother and childcare products; toys, sports and fitness equipment; and virtual goods. JD.com, Inc. is based in Beijing, 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 signal
Above its 20, 50 and 100 day moving averages
16 new highs and up 23.90% in the last month
Relative Strength Index 84.79%
Technical support level at 39.76
Recently traded at 40.23 with a 50 day moving average of 33.40

Fundamental factors:

Market Cap $57.93 billion
Revenue expected to grow 35.00% this year and another 26.50% next year
Earnings estimated to increase by 190.90% this year, an additional 131.20% next year and continue to compound at an annual rate of 19.06% for the next 5 years
Wall Street analyst issued 9 strong buy, 16 buy, 7 hold and 2 sell recommendations on the stock

MORNING CALL - 5/15

Barchart Morning Call

Barchart.com - 45 minutes ago

OVERNIGHT MARKETS AND NEWS

Jun E-mini S&Ps (ESM17 +0.13%) this morning are up +0.10% as energy producing stocks rallied after Jun WTI crude oil (CLM17 +3.05%) surged +2.91% to a 2-week high when Saudi Arabia and Russia said they favored extending a crude oil production-cut deal for another nine months, longer than expectations of six months. European stocks are down -0.30% as the markets gauge the effect of a massive cyber-attack on European businesses. More than 200,000 computers from at least 150 countries have so far been infected with a ransomware, according to Europol. It has affected the UK's National Health Service, Russia's Ministry of Interior, Chinese government agencies, Germany's Deutsche Bahn rail system, automakers Renault SA and Nissan Motor, and other company and hospital computer systems. Asian stocks settled mostly higher: Japan -0.07%, Hong Kong +0.86%, China +0.22%, Taiwan +0.50%, Australia +0.03%, Singapore +0.27%, South Korea +0.21%, India +0.44%. China's Shanghai Composite climbed to a 1-week high after Chinese President Xi Jinping unveiled an infrastructure spending plan at the Belt and Road Forum in Beijing. Gains were limited, though, after data on China Apr industrial production and retail sales missed estimates.

The dollar index (DXY00 -0.36%) is down -0.35%. EUR/USD (^EURUSD) is up +0.34%. USD/JPY (^USDJPY) is up +0.04%.

Jun 10-year T-note prices (ZNM17 +0.01%) are up +2 ticks at a 1-week high.

Japan Apr PPI rose +0.2% m/m and +2.1% y/y, stronger than expectations of -0.1% m/m and +1.8% y/y with the +2.1% y/y gain the largest year-on-year increase in 2-1/3 years.

China Apr industrial production rose +6.5% y/y, weaker than expectations of +7.0% y/y.

China Apr retail sales rose +10.7% y/y, weaker than expectations of +10.8% y/y.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) May Empire manufacturing index (expected +2.1 to 7.3, Apr -11.2 to 5.2), (2) May NAHB housing market index (expected unch at 68, Apr -3 to 68), (3) USDA weekly grain export inspections, (4) USDA crop conditions and planting progress.

Notable Russell 2000 earnings reports today include: Alere (consensus $0.52).

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

OVERNIGHT U.S. STOCK MOVERS

Cisco (CSCO -0.54%) climbed nearly 2% in pre-market trading after it was upgraded to 'Overweight' from 'Equal-Weight' at Morgan Stanley with a price target of $39.

Johnson & Johnson (JNJ +0.36%) was upgraded to 'Overweight' from 'Neutral' at JP Morgan Chase with a price target of $140.

Acadia Health (ACHC +0.59%) was downgraded to 'Market Perform' from 'Outperform' at Leerink Partners LLC.

JC Penney (JCP -13.99%) was downgraded to 'Hold' from 'Buy' at Deutsche Bank.

TD Ameritrade (AMTD -1.30%) was upgraded to 'Outperform' from ‘Market Perform' at Wells Fargo with a price target of $44.

Starbucks (SBUX -0.56%) was upgraded to 'Buy' from 'Hold' at Deutsche Bank with a price target of $69.

Xylem (XYL +0.20%) was upgraded to 'Overweight' from 'Equal Weight' at Barclays with a price target of $59.

Cimarex Energy (XEC -0.84%) was upgraded to 'Buy' from 'Hold' at Williams Capital with a price target of $160.

Buffalo Wild Wings (BWLD -0.19%) was upgraded to 'Buy' from 'Hold' at Deutsche Bank with a price target of $180.

Tesla (TSLA +0.53%) is down over 2% in pre-market trading after it was downgraded to 'Equal-Weight' from 'Overweight.'

Avis Budget Group (CAR -1.65%) fell 2% in after-hours trading after CFO David Wyshner resigned, effective next month, to pursue other opportunities.

Progressive (PGR -0.62%) announced that its board authorized the repurchase of up to 25 million of its common shares.

Allscripts Healthcare Solutions (MDRX -2.53%) announced that Dennis Olis has been named interim CEO and will replace Melinda Whittington who is leaving the company.

MARKET COMMENTS

June E-mini S&Ps (ESM17 +0.13%) this morning are up +2.50 points (+0.10%). Friday's closes: S&P 500 -0.15%, Dow Jones -0.11%, Nasdaq +0.22%. The S&P 500 on Friday closed lower on concerns about U.S. consumer spending after Apr retail sales rose +0.4% and +0.3% ex autos, weaker than expectations of +0.6% and +0.5% ex autos. There was also weakness in retail stocks, led by an 11% plunge in Nordstrom's, after it reported an unexpected -0.8% decline in Q1 comparable-store-sales, weaker than consensus of unchanged. Stocks found support on news that the May University of Michigan U.S. consumer sentiment rose +0.7 to 97.7, stronger than expectations of unch at 97.0.

June 10-year T-notes (ZNM17 +0.01%) this morning are up +2 ticks at a 1-week high. Friday's closes: TYM7 +17.50, FVM7 +12.00. Jun T-=notes on Friday rose to a 1-week high and settled higher on the weaker-than-expected U.S. Apr CPI and Apr retail sales, which takes some of the urgency away for future Fed rate hikes. T-note prices were also supported by comments from Chicago Fed President Evans who said inflation pressures are "still under-running" the Fed's 2% objective.

The dollar index (DXY00 -0.36%) this morning is down -0.238 (-0.35%). EUR/USD (^EURUSD) is up +0.0037 (+0.34%) and USD/JPY (^USDJPY) is up +0.05 (+0.04%). Friday's closes: Dollar index -0.371 (-0.37%), EUR/USD -0.0007 (-0.06%), USD/JPY -0.42 (-0.37%). The dollar index on Friday closed lower on the weaker-than-expected U.S. Apr retail sales and Apr CPI reports, which may delay a Fed rate hike, and Chicago Fed President Evans' comment that downside risks to inflation "still predominate."

June WTI crude oil prices (CLM17 +3.05%) this morning are up +$1.39 a barrel (+2.91%) at a 2-week high and June gasoline (RBM17 +2.36%) is +0.0307 (+1.95%) at a 2-week high. Friday's closes: Jun crude +0.01 (+0.02%), Jun gasoline +0.0139 (+0.89%). Jun crude oil and gasoline on Friday closed higher with Jun gasoline at a 2-week high. Crude oil prices were boosted by a weaker dollar and by the jump in the crack spread to a 2-week high, which may boost refinery demand for crude oil to refine into gasoline. Crude oil prices were undercut by last Friday's report from Baker Hughes that active U.S. oil rigs in the week of May 12 rose 9 to 712, a 2-year high.

GLOBAL EVENT CALENDAR05/15/2017

		Monday, May 15
US	0830 ET	May Empire manufacturing survey general business conditions expected +2.1 to 7.3, Apr -11.2 to 5.2.
	1000 ET	May NAHB housing market index expected unch at 68, Apr -3 to 68.
	1100 ET	USDA weekly grain export inspections.
	1600 ET	USDA crop conditions and planting progress.
		Tuesday, May 16
US	0830 ET	Apr housing starts expected +3.7% to 1.260 million, Mar -6.8% to 1.215 million. Apr building permits expected +0.2% to 1.270 million, Mar +4.2% to 1.267 million.
	0915 ET	Apr industrial production expected +0.4%, Mar +0.5%. Apr manufacturing production expected +0.4%, Mar -0.4%. Apr capacity utilization expected +0.2 to 76.3%, Mar +0.4 to 76.1%.

U.S. STOCK CALENDAR05/15/2017

Company	Ticker	Time	Event Description	Period	Estimate
American International Group Inc	AIG US	09:30	Investor Day
Liberty Expedia Holdings Inc	LEXEA US		Q1 2017 Earnings Release	Q1 17
Alere Inc	ALR US		Q4 2016 Earnings Release	Q4 16	0.516
Ultimate Software Group Inc/The	ULTI US		Annual General Meeting
Motorola Solutions Inc	MSI US		Annual General Meeting
Markel Corp	MKL US		Annual General Meeting
Consolidated Edison Inc	ED US		Annual General Meeting
Equifax Inc	EFX US		Investor Meeting - Zurich
Equifax Inc	EFX US		Investor Meeting - Geneva
PacWest Bancorp	PACW US	13:30	Annual General Meeting