BARCHART MORNING CALL
Thursday, July 23rd, 2015View Older Reports
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OVERNIGHT MARKETS AND NEWS
September E-mini S&Ps (ESU15 +0.06%) are up +0.14% and European stocks are up +0.09% led by an increase in M&A activity. Cigna rose nearly 7% in pre-market trading after people familiar with the matter said Anthem is close to a deal to buy Cigna for $48 billion. Also, technology stocks are higher, led by a 13% surge in SanDisk, after the company reported Q2 earnings that were nearly double analysts' estimates. Representatives of Greece's creditor institutions will meet in Athens on Friday to hold formal negotiations on a new bailout after the Greek parliament passed a second round of reforms needed for a bailout. A Greek government official said decisions about reopening the Athens Stock Exchange and Greek financial markets will be deferred to next week. Asian stocks closed mixed: Japan +0.44%, Hong Kong +0.46%, China +2.43%, Taiwan -1.43%, Australia -0.43%, Singapore -0.08%, South Korea -0.23%, India -0.47%. Japanese stocks closed higher after Japan Jun exports rose by the most in 5 months, and China's Shanghai Composite rallied to a 3-week high, led by gains in financial companies, after data showed margin traders increased holdings of stock purchased on margin debt for a fourth day on Wednesday.
Commodity prices are mostly higher due to a weak dollar. Sep crude oil (CLU15 +0.08%) is up +0.06%. Sep gasoline (RBU15 +0.84%) is up +0.74%. Metals prices are mixed. Aug gold (GCQ15 +0.80%) is up +0.84%. Sep copper (HGU15 +0.14%) is down -0.04%. Agricultural prices are higher.
The dollar index (DXY00 -0.63%) is down -0.56% at a 1-week low. EUR/USD (^EURUSD) is up +0.59% at a 1-week high after Greece's parliament approved a second round of reforms needed for a bailout. USD/JPY (^USDJPY) is down -0.14%.
Sep T-note prices (ZNU15 +0.01%) are up +1 tick.
The Japan Jun trade balance narrowed to a -69.0 billion yen deficit from a downward revised -217.2 billion yen deficit in May, weaker than expectations of a +45.8 billion yen surplus. Jun exports rose +9.5% y/y, weaker than expectations of +10.0% y/y, although the largest increase in 5 months. Jun imports fell -2.9% y/y, a smaller decline than expectations of -4.3% y/y.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) weekly initial unemployment claims (expected -3,000 to 278,000 after last week's -15,000 to 281,000) and continuing claims report (expected +25,000 to 2.240 million after last week's -112,000 to 2.215 million), (2) Jun Chicago Fed national activity index (expected +0.12 to -0.05 after May's +0.02 to -0.17), (3) Jun leading indicators (expected +0.3% after May's +0.7%), (4) Jul Kansas City Fed manufacturing activity (expected +4 to -5 after June's +4 to -9), (5) the Treasurys's auction of $15 billion of 10-year TIPS.
There are 56 of the S&P 500 companies that report earnings today with notable reports including: Amazon.com (consensus -0.14), Visa ($0.58), AT&T (0.64), Starbucks (0.41), Caterpillar ($1.26), McDonald's (1.23), PulteGroup (0.26), Comcast (0.84), GM (1.08), Nasdaq (0.80), Under Armour (0.05), E-Trade (0.27).
U.S. IPO's scheduled to price today include: Exelixis (EXEL).
Equity conferences during the remainder of this week include: Wells Fargo Securities Telecom Symposium on Thu.
OVERNIGHT U.S. STOCK MOVERS
Eli Lilly (LLY +0.95%) gained 3% in pre-market trading after it reported Q2 EPS of 90 cents, well above consensus of 74 cents.
Texas Instruments (TXN -1.85%) reported Q2 EPS of 65 cents, right on consensus, although Q2 revenue of $3.23 billion was below consensus of $3.26 billion.
Equifax (EFX +0.76%) reported Q2 adjusted EPS of $1.15, above consensus of $1.10.
United Rentals (URI -1.45%) slid 5% in after-hours trading after it reported Q2 adjusted EPS of $1.95, better than consensus of $1.74, but then lowered guidance on fiscal 2015 revenue view to $5.8 billion-$5.9 billion from $6 billion-$6.1 billion, lower than consensus of $6 billion.
Cheesecake Factory (CAKE +1.83%) reported Q2 EPS of 69 cents, higher than consensus of 62 cents.
Crown Castle (CCI -0.22%) reported Q2 AFFO of $1.03, less than consensus of $1.06.
Fortune Brands (FBHS +0.14%) reported Q2 adjusted EPS of 59 cents, higher than consensus of 57 cents.
Covanta (CVA -2.06%) reported an unexpected Q2 EPS loss of -6 cents, below consensus of a 3 cent profit.
Discover (DFS +0.12%) reported Q2 EPS of $1.33, better than consensus $1.32, although Q2 revenue of $2.18 billion was below consensus of $2.22.
F5 Networks (FFIV +0.19%) reported Q3 EPS of $1.67, higher than consensus of $1.60.
Tractor Supply (TSCO +1.34%) reported Q2 EPS of $1.12, above consensus of $1.11.
Las Vegas Sands (LVS +0.24%) reported Q2 adjusted EPS of 60 cents, less than consensus of 61 cents.
American Express (AXP +0.05%) reported Q2 EPS of $1.42, better than consensus of $1.32.
Plexus (PLXS -0.28%) reported Q3 EPS of 69 cents, below consensus of 70 cents.
Qualcomm (QCOM -1.46%) dropped 2% in after-hours trading after it reported Q3 adjusted EPS of 99 cents, higher than consensus of 95 cents, but then lowered guidance on fiscal 2015 adjusted EPS view to $4.50-$4.70 from $4.60-$5.00, below consensus of $4.79.
MARKET COMMENTS
September E-mini S&Ps (ESU15 +0.06%) this morning are up +3.00 points (+0.14%). Wednesday's closes: S&P 500 -0.24%, Dow Jones -0.38%, Nasdaq -1.09%. The S&P 500 on Wednesday closed lower on a slide in technology stocks due to disappointing earnings results from the likes of Apple, Microsoft and Yahoo, and weakness in basic-resource companies after commodity prices plunged. Stocks recovered from their worst levels after U.S. Jun existing home sales rose by +3.2% to an 8-1/3 year high of 5.49 million units.
Sep 10-year T-notes (ZNU15 +0.01%) this morning are up +1 tick. Wednesday's closes: TYU5 +3.50, FVU5 -1.00. Sep T-notes in Wednesday rose to a 1-week high and closed higher on increased safe-haven demand for T-notes after stock prices tumbled and on reduced inflation expectations as the 10-year T-note break-even inflation rate fell to a 1-3/4 month low.
The dollar index (DXY00 -0.63%) this morning is down -0.547 (-0.56%) at a 1-week low. EUR/USD (^EURUSD) is up +0.0064 (+0.59%) at a 1-week high. USD/JPY (^USDJPY) is down -0.17 (-0.14%). Wednesday's closes: Dollar Index +0.270 (+0.28%), EUR/USD -0.00075 (-0.07%), USD/JPY +0.07 (+0.06%). The dollar index on Wednesday closed higher on the stronger-than-expected U.S. June existing home sales report of +3.2% to an 8-1/3 year high of 5.49 million units and on weakness in the commodity currencies of Canada, Australia and New Zealand against the dollar after the CRB commodity price index fell to a 3-month low.
Sep WTI crude oil (CLU15 +0.08%) this morning is up +3 cents (+0.06%). Sep gasoline (RBU15 +0.84%)is up +0.0134 (+0.74%). Wednesday's closes: CLU5 -1.67 (-3.28%), RBU5 -0.0556 (-2.97%). Sep crude and gasoline on Wednesday closed sharply lower with Sep crude at a 3-1/2 month low on the (1) a stronger dollar, (2) the unexpected +2.47 million bbl increase in weekly EIA crude inventories, more than expectations of a -1.75 million bbl draw, and (3) the +813,000 bbl increase in crude supplies at Cushing, OK, the delivery point of WTI futures, the fourth straight increase.
GLOBAL EVENT CALENDAR07/23/2015
US
0830 ET
Weekly initial unemployment claims expected -3,000 to 278,000, previous -15,000 to 281,000. Weekly continuing claims expected +25,000 to 2.240 million, previous 112,000 to 2.215 million.
0830 ET
Jun Chicago Fed national activity index expected +0.12 to -0.05, May +0.02 to -0.17.
0830 ET
USDA weekly Export Sales.
1000 ET
Jun leading indicators expected +0.3%, May +0.7%.
1100 ET
Jul Kansas City Fed manufacturing activity expected +4 to -5, Jun +4 to -9.
1100 ET
Treasury announces amount of 2-year T-notes (previous $26 billion), 2-year floating-rate notes (previous $13 billion), 5-year T-notes (previous $35 billion) and 7-year T-notes (previous $29 billion) to be auctioned Jul 28-30.
1300 ET
Treasury auctions $15 billion of 10-year TIPS.
UK
0430 ET
UK Jun retail sales including auto fuel expected +0.4% m/m and +4.8% y/y, May +0.2% m/m and +4.6% y/y.
0430 ET
UK Jun retail sales ex-auto fuel expected +0.4% m/m and +5.1% y/y, May +0.2% m/m and +4.4% y/y.
EUR
1000 ET
Eurozone Jul consumer confidence expected -0.2 to -5.8, Jun unch at -5.6.
U.S. STOCK CALENDAR07/23/2015
Company
Ticker
Time
Event Description
Period
Estimate
American Electric Power Co Inc
AEP US
Bef-mkt
Q2 2015 Earnings Release
Q2 2015
0.806
Boston Scientific Corp
BSX US
Bef-mkt
Q2 2015 Earnings Release
Q2 2015
0.214
Dow Chemical Co/The
DOW US
Bef-mkt
Q2 2015 Earnings Release
Q2 2015
0.819
EQT Corp
EQT US
Bef-mkt
Q2 2015 Earnings Release
Q2 2015
0.017
Kimberly-Clark Corp
KMB US
Bef-mkt
Q2 2015 Earnings Release
Q2 2015
1.359
Eli Lilly & Co
LLY US
Bef-mkt
Q2 2015 Earnings Release
Q2 2015
0.737
McDonald's Corp
MCD US
Bef-mkt
Q2 2015 Earnings Release
Q2 2015
1.232
Nucor Corp
NUE US
Bef-mkt
Q2 2015 Earnings Release
Q2 2015
0.251
PulteGroup Inc
PHM US
Bef-mkt
Q2 2015 Earnings Release
Q2 2015
0.262
Snap-on Inc
SNA US
Bef-mkt
Q2 2015 Earnings Release
Q2 2015
2
Southwest Airlines Co
LUV US
Bef-mkt
Q2 2015 Earnings Release
Q2 2015
1.009
Comcast Corp
CMCSA US
Bef-mkt
Q2 2015 Earnings Release
Q2 2015
0.842
Celgene Corp
CELG US
Bef-mkt
Q2 2015 Earnings Release
Q2 2015
1.23
Huntington Bancshares Inc/OH
HBAN US
Bef-mkt
Q2 2015 Earnings Release
Q2 2015
0.206
T Rowe Price Group Inc
TROW US
Bef-mkt
Q2 2015 Earnings Release
Q2 2015
1.201
Macerich Co/The
MAC US
Bef-mkt
Q2 2015 Earnings Release
Q2 2015
0.929
AmerisourceBergen Corp
ABC US
Bef-mkt
Q3 2015 Earnings Release
Q3 2015
1.146
Cameron International Corp
CAM US
Bef-mkt
Q2 2015 Earnings Release
Q2 2015
0.772
Quest Diagnostics Inc
DGX US
Bef-mkt
Q2 2015 Earnings Release
Q2 2015
1.235
Fidelity National Information Services Inc
FIS US
Bef-mkt
Q2 2015 Earnings Release
Q2 2015
0.708
Mead Johnson Nutrition Co
MJN US
Bef-mkt
Q2 2015 Earnings Release
Q2 2015
0.771
Dr Pepper Snapple Group Inc
DPS US
Bef-mkt
Q2 2015 Earnings Release
Q2 2015
1.1
General Motors Co
GM US
Bef-mkt
Q2 2015 Earnings Release
Q2 2015
1.081
Danaher Corp
DHR US
6:00
Q2 2015 Earnings Release
Q2 2015
1.04
Raytheon Co
RTN US
7:00
Q2 2015 Earnings Release
Q2 2015
1.634
NASDAQ OMX Group Inc/The
NDAQ US
7:00
Q2 2015 Earnings Release
Q2 2015
0.795
Under Armour Inc
UA US
7:15
Q2 2015 Earnings Release
Q2 2015
0.048
Bristol-Myers Squibb Co
BMY US
7:30
Q2 2015 Earnings Release
Q2 2015
0.363
Caterpillar Inc
CAT US
7:30
Q2 2015 Earnings Release
Q2 2015
1.262
CMS Energy Corp
CMS US
7:30
Q2 2015 Earnings Release
Q2 2015
0.292
3M Co
MMM US
7:30
Q2 2015 Earnings Release
Q2 2015
1.995
Waste Management Inc
WM US
7:30
Q2 2015 Earnings Release
Q2 2015
0.629
Alliance Data Systems Corp
ADS US
7:30
Q2 2015 Earnings Release
Q2 2015
3.245
Ryder System Inc
R US
7:55
Q2 2015 Earnings Release
Q2 2015
1.615
Boston Scientific Corp
BSX US
8:00
Q2 2015 Earnings Call
Q2 2015
Danaher Corp
DHR US
8:00
Q2 2015 Earnings Call
Q2 2015
Freeport-McMoRan Inc
FCX US
8:00
Q2 2015 Earnings Release
Q2 2015
0.077
Union Pacific Corp
UNP US
8:00
Q2 2015 Earnings Release
Q2 2015
1.347
NASDAQ OMX Group Inc/The
NDAQ US
8:00
Q2 2015 Earnings Call
Q2 2015
CMS Energy Corp
CMS US
8:30
Q2 2015 Earnings Call
Q2 2015
Equifax Inc
EFX US
8:30
Q2 2015 Earnings Call
Q2 2015
PulteGroup Inc
PHM US
8:30
Q2 2015 Earnings Call
Q2 2015
Comcast Corp
CMCSA US
8:30
Q2 2015 Earnings Call
Q2 2015
Quest Diagnostics Inc
DGX US
8:30
Q2 2015 Earnings Call
Q2 2015
Alliance Data Systems Corp
ADS US
8:30
Q2 2015 Earnings Call
Q2 2015
Fidelity National Information Services Inc
FIS US
8:30
Q2 2015 Earnings Call
Q2 2015
Under Armour Inc
UA US
8:30
Q2 2015 Earnings Call
Q2 2015
Union Pacific Corp
UNP US
8:45
Q2 2015 Earnings Call
Q2 2015
American Electric Power Co Inc
AEP US
9:00
Q2 2015 Earnings Call
Q2 2015
Dow Chemical Co/The
DOW US
9:00
Q2 2015 Earnings Call
Q2 2015
Eli Lilly & Co
LLY US
9:00
Q2 2015 Earnings Call
Q2 2015
3M Co
MMM US
9:00
Q2 2015 Earnings Call
Q2 2015
Raytheon Co
RTN US
9:00
Q2 2015 Earnings Call
Q2 2015
Celgene Corp
CELG US
9:00
Q2 2015 Earnings Call
Q2 2015
Ameriprise Financial Inc
AMP US
9:00
Q2 2015 Earnings Call
Q2 2015
Brown-Forman Corp
BF/B US
9:30
Annual General Meeting
Y 2015
Cameron International Corp
CAM US
9:30
Q2 2015 Earnings Call
Q2 2015
Mead Johnson Nutrition Co
MJN US
9:30
Q2 2015 Earnings Call
Q2 2015
Freeport-McMoRan Inc
FCX US
10:00
Q2 2015 Earnings Call
Q2 2015
Kimberly-Clark Corp
KMB US
10:00
Q2 2015 Earnings Call
Q2 2015
Newmont Mining Corp
NEM US
10:00
Q2 2015 Earnings Call
Q2 2015
Snap-on Inc
SNA US
10:00
Q2 2015 Earnings Call
Q2 2015
Huntington Bancshares Inc/OH
HBAN US
10:00
Q2 2015 Earnings Call
Q2 2015
Waste Management Inc
WM US
10:00
Q2 2015 Earnings Call
Q2 2015
General Motors Co
GM US
10:00
Q2 2015 Earnings Call
Q2 2015
Bristol-Myers Squibb Co
BMY US
10:30
Q2 2015 Earnings Call
Q2 2015
EQT Corp
EQT US
10:30
Q2 2015 Earnings Call
Q2 2015
Crown Castle International Corp
CCI US
10:30
Q2 2015 Earnings Call
Q2 2015
Caterpillar Inc
CAT US
11:00
Q2 2015 Earnings Call
Q2 2015
McDonald's Corp
MCD US
11:00
Q2 2015 Earnings Call
Q2 2015
Ryder System Inc
R US
11:00
Q2 2015 Earnings Call
Q2 2015
AmerisourceBergen Corp
ABC US
11:00
Q3 2015 Earnings Call
Q3 2015
United Rentals Inc
URI US
11:00
Q2 2015 Earnings Call
Q2 2015
Dr Pepper Snapple Group Inc
DPS US
11:00
Q2 2015 Earnings Call
Q2 2015
Southwest Airlines Co
LUV US
12:30
Q2 2015 Earnings Call
Q2 2015
Nucor Corp
NUE US
14:00
Q2 2015 Earnings Call
Q2 2015
SL Green Realty Corp
SLG US
14:00
Q2 2015 Earnings Call
Q2 2015
Stryker Corp
SYK US
16:00
Q2 2015 Earnings Release
Q2 2015
1.168
Principal Financial Group Inc
PFG US
16:00
Q2 2015 Earnings Release
Q2 2015
1.043
Robert Half International Inc
RHI US
16:02
Q2 2015 Earnings Release
Q2 2015
0.661
Stericycle Inc
SRCL US
16:02
Q2 2015 Earnings Release
Q2 2015
1.141
CR Bard Inc
BCR US
16:05
Q2 2015 Earnings Release
Q2 2015
2.176
Capital One Financial Corp
COF US
16:05
Q2 2015 Earnings Release
Q2 2015
1.98
E*TRADE Financial Corp
ETFC US
16:05
Q2 2015 Earnings Release
Q2 2015
0.269
VeriSign Inc
VRSN US
16:05
Q2 2015 Earnings Release
Q2 2015
0.746
Visa Inc
V US
16:05
Q3 2015 Earnings Release
Q3 2015
0.584
Altera Corp
ALTR US
16:15
Q2 2015 Earnings Release
Q2 2015
0.251
AT&T Inc
T US
16:30
Q2 2015 Earnings Call
Q2 2015
Stryker Corp
SYK US
16:30
Q2 2015 Earnings Call
Q2 2015
Macerich Co/The
MAC US
16:30
Q2 2015 Earnings Call
Q2 2015
VeriSign Inc
VRSN US
16:30
Q2 2015 Earnings Call
Q2 2015
TripAdvisor Inc
TRIP US
16:30
Q2 2015 Earnings Call
Q2 2015
CR Bard Inc
BCR US
17:00
Q2 2015 Earnings Call
Q2 2015
CA Inc
CA US
17:00
Q1 2016 Earnings Call
Q1 2016
Robert Half International Inc
RHI US
17:00
Q2 2015 Earnings Call
Q2 2015
Skyworks Solutions Inc
SWKS US
17:00
Q3 2015 Earnings Call
Q3 2015
Starbucks Corp
SBUX US
17:00
Q3 2015 Earnings Call
Q3 2015
Capital One Financial Corp
COF US
17:00
Q2 2015 Earnings Call
Q2 2015
Stericycle Inc
SRCL US
17:00
Q2 2015 Earnings Call
Q2 2015
E*TRADE Financial Corp
ETFC US
17:00
Q2 2015 Earnings Call
Q2 2015
Amazon.com Inc
AMZN US
17:00
Q2 2015 Earnings Call
Q2 2015
Republic Services Inc
RSG US
17:00
Q2 2015 Earnings Call
Q2 2015
Juniper Networks Inc
JNPR US
17:00
Q2 2015 Earnings Call
Q2 2015
Visa Inc
V US
17:00
Q3 2015 Earnings Call
Q3 2015
Chubb Corp/The
CB US
Aft-mkt
Q2 2015 Earnings Release
Q2 2015
1.858
CA Inc
CA US
Aft-mkt
Q1 2016 Earnings Release
Q1 2016
0.617
AT&T Inc
T US
Aft-mkt
Q2 2015 Earnings Release
Q2 2015
0.636
Skyworks Solutions Inc
SWKS US
Aft-mkt
Q3 2015 Earnings Release
Q3 2015
1.286
Starbucks Corp
SBUX US
Aft-mkt
Q3 2015 Earnings Release
Q3 2015
0.409
Amazon.com Inc
AMZN US
Aft-mkt
Q2 2015 Earnings Release
Q2 2015
-0.142
Republic Services Inc
RSG US
Aft-mkt
Q2 2015 Earnings Release
Q2 2015
0.51
Juniper Networks Inc
JNPR US
Aft-mkt
Q2 2015 Earnings Release
Q2 2015
0.404
TripAdvisor Inc
TRIP US
Aft-mkt
Q2 2015 Earnings Release
Q2 2015
0.545
Hanesbrands Inc
HBI US
Q2 2015 Earnings Release
Q2 2015
0.5