Barchart Morning Call
Barchart.com - Fri Feb 24, 6:37AM CST
OVERNIGHT MARKETS AND NEWS
Mar E-mini S&Ps (ESH17 -0.41%) are down -0.47% and European stocks are down -1.19%. Uncertainty ahead of France's presidential election in April and Tuesday's speech to Congress from President Trump has fueled long liquidation in stocks. European political risks have increased as far-right French presidential candidate Marine Le Penn, who wants to take France out of the EU, is seen gaining in polls, while President Trump promised something "phenomenal" with respect to tax reform three weeks ago, and his every word will be parsed when he addresses House and Senate lawmakers on Tuesday. The slide in equity markets has boosted the price of gold with Apr COMEX gold (GCJ17 +0.53%) up +0.59% to a 3-1/4 month high. Government bonds are also higher on increased safe-haven demand as German bunds climbed to a 1-1/2 month high and T-notes are at a 2-week high. Asian stocks settled mostly lower: Japan -0.45%, Hong Kong -0.62%, China +0.06%, Taiwan -0.19%, Australia -0.79%, Singapore -0.65%, South Korea -0.92%, India closed for holiday. A stronger yen undercut Japanese stocks as USD/JPY tumbled to a 2-week low.
The dollar index (DXY00 -0.26%) is down -0.24%. EUR/USD (^EURUSD) is up +0.23%. USD/JPY (^USDJPY) is down -0.26% at a 2-week low.
Mar 10-year T-note prices (ZNH17 +0.16%) are up +6 ticks at a 2-week high.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) Jan new home sales (expected +6.3% to 570,000, Dec -10.4% to 536,000), (2) revised-Feb University of Michigan U.S. consumer sentiment index (expected +0.3 to 96.0, prelim-Feb -2.8 to 95.7), (3) USDA weekly Export Sales, (4) USDA Jan Cattle on Feed.
Notable S&P 500 earnings reports today include: Foot Locker (consensus $1.32), Public Service Enterprise Group (0.53), Pinnacle West Capital (0.48), Cabot Oil & Gas (0.01).
U.S. IPO's scheduled to price today: none.
Equity conferences: CAGNY Investor Conference on Tue-Fri.
OVERNIGHT U.S. STOCK MOVERS
Goldman Sachs (GS -0.21%) was downgraded to 'Sell' from 'Hold' at Berenberg with a price target of $190.
Incyte (INCY +0.49%) climbed over 4% in after-hours trading after it was announced that it will replace Spectra Energy in the S&P 500 at the open of trading on Tuesday, February 28.
Nordstrom (JWN -3.11%) rallied 3% in after-hours trading after it reported Q4 adjusted EPS of $1.37, higher than consensus of $1.15.
Stamps.com (STMP -0.52%) fell almost 3% in after-hours trading after it said it sees full-year adjusted EPS of $6.00-$7.00, weaker than consensus of $7.91
Hewlett Packard Enterprise (HPE -0.48%) dropped 6% in after-hours trading after it reported Q1 net revenue of $11.4 billion, weaker than consensus of $12.1 billion, and said it sees Q2 adjusted EPS of 41 cents-45 cents, below consensus of 47 cents.
B&G Foods (BGS -1.37%) slid 6% in after-hours trading after it reported Q4 adjusted EPS of 29 cents, weaker than consensus of 40 cents.
RH US (RH -3.15%) surged 15% in after-hours trading after it reported Q4 adjusted EPS of 68 cents, above consensus of 66 cents.
MercadoLibre (MELI -0.29%) gained 2% in after-hours trading after it reported Q4 net revenue of $256.3 million, better than consensus of $250 million.
Universal Display (OLED -5.33%) jumped nearly 12% in after-hours trading after it reported Q4 EPS of 55 cents, above consensus of 43 cents.
Baidu (BIDU -0.74%) rose 3% in after-hours trading after it reported Q4 adjusted profit for ADS of $1.91, well above consensus of $1.09.
Acacia Communications (ACIA +1.94%) tumbled 11% in after-hours trading after it said it sees Q1 adjusted EPS of 63 cents-70 cents, weaker than consensus of 78 cents.
Sarepta Therapeutics (SRPT -0.76%) gained over 1% in after-hours trading after Point72 Asset Management said it raised its passive stake in the company to 5.2% from 2.5%.
Zoe's Kitchen (ZOES -1.49%) sank 11% in after-hours trading after it said it sees full-year revenue of $325 million-$327 million, below consensus of $329.1 million.
Accelerate Diagnostics (AXDX +1.23%) rose 3% in after-hours trading after it received clearance from the FDA to market its PhenoTest BC Kit as the first test to identify organisms that cause bloodstream infections and provide information on antibiotic sensitivity.
Emergent BioSolutions (EBS -0.47%) gained over 2% in after-hours trading after it reported Q4 adjusted EPS of 74 cents, better than consensus of 61 cents.
Acadia Healthcare (ACHC +1.41%) fell over 8% in after-hours trading after it said it sees Q1 adjusted EPS of 45 cents-47 cents, below consensus of 56 cents, and then lowered guidance on full-year EPS to $2.40-$2.50, weaker than consensus of $2.53.
Hi-Crush Partners LP (HCLP -6.38%) slid over 7% in after-hours trading after it announced a primary offering of 20.5 million common units.
MARKET COMMENTS
Mar E-mini S&Ps (ESH17 -0.41%) this morning are down -11.00 points (-0.47%). Thursday's closes: S&P 500 +0.04%, Dow Jones +0.17%, Nasdaq -0.37%. The S&P 500 on Thursday posted a new record high and closed higher on strength in energy producing stocks after the price of crude oil rose +1.44% to a 1-1/2 month high and on a rally in mining stocks after the price of gold and silver climbed to 3-1/4 month highs. Stocks were undercut by weakness in technology stocks and by hawkish comments from Atlanta Fed President Lockhart who said that "two or three 25 bp rate hikes are likely this year as long as the economy remains on the track it is on."
Mar 10-year T-notes (ZNH17 +0.16%) this morning are up +6 ticks at a 2-week high. Thursday's closes: TYH7 +9.00, FVH7 +6.50. Mar 10-year T-notes on Thursday climbed to a 2-week high and closed higher on carry-over support from a rally in German bunds to a 1-1/2 month high on increased safe-haven demand due to political risks in France and on short-covering at the conclusion of this week's T-note auctions.
The dollar index (DXY00 -0.26%) this morning is down -0.24 (-0.24%). EUR/USD (^EURUSD) is up +0.0024 (+0.23%). USD/JPY (^USDJPY) is down -0.29 (-0.26%) at a 2-week low. Thursday's closes: Dollar index -0.17 (-0.17%), EUR/USD +0.0024 (+0.23%), USD/JPY -0.70 (-0.62%). The dollar index on Thursday closed lower on the slide in 10-year T-note yields to 2-week lows, which reduces the dollar's interest rate differentials. The dollar was also undercut by Treasury Secretary Mnuchin's comment that fiscal stimulus effects on the U.S. economy this year may be limited.
Apr WTI crude oil prices (CLJ17 -0.77%) this morning are down -25 cents (-0.46%) and Apr gasoline (RBJ17 -0.51%) is -0.0037 (-0.21%). Thursday's closes: Apr crude +0.77 (+1.44%), Apr gasoline +0.0128 (+0.74%). Apr crude and gasoline on Thursday closed higher with Apr crude at a 1-1/2 month high and Apr gasoline at a 1-week high. Crude oil prices were boosted by a weaker dollar, the +564,000 increase in EIA crude inventories (less than expectations of +3.25 million bbl) and the -1.528 million bbl decline in crude supplies at Cushing to a 2-1/2 month low. Crude prices fell back from their best levels after U.S. crude production in the week of Feb 17 rose +0.3% to 9.001 million bpd, a 10-1/2 month high.
GLOBAL EVENT CALENDAR02/24/2017
Friday, Feb 24
US
0830 ET
USDA weekly Export Sales.
1000 ET
Jan new home sales expected +6.5% to 571,000, Dec -10.4% to 536,000.
1000 ET
Revised-Feb University of Michigan U.S. consumer sentiment expected +0.3 to 96.0, prelim-Feb -2.8 to 95.7.
1500 ET
USDA Jan Cattle on Feed.
Monday, Feb 27
US
0830 ET
Jan durable goods orders expected +2.0% and +0.5% ex transportation, Dec -0.5% and +0.5% ex transportation. Jan capital goods new orders non-defense ex aircraft & parts expected +0.5%, Dec +0.7%.
1000 ET
Jan pending home sales expected +0.9% m/m, Dec +1.6% m/m and -2.0% y/y.
1030 ET
Feb Dallas Fed manufacturing activity expected -2.1 to 20.0, Jan +4.4 to 22.1.
1100 ET
USDA weekly grain export inspections.
1100 ET
Dallas Fed President Robert Kaplan (voter) speaks at the University of Oklahoma Price College of Business.
U.S. STOCK CALENDAR02/24/2017
Company
Ticker
Time
Event Description
Period
Estimate
Cabot Oil & Gas Corp
COG US
Bf-mkt
Q4 2016 Earnings Release
Q4 2016
0.011
Pinnacle West Capital Corp
PNW US
Bf-mkt
Q4 2016 Earnings Release
Q4 2016
0.481
Foot Locker Inc
FL US
6:45
Q4 2017 Earnings Release
Q4 2017
1.328
Public Service Enterprise Group
PEG US
7:30
Q4 2016 Earnings Release
Q4 2016
0.525
Eaton Corp PLC
ETN US
8:00
Analyst Conference
Y 2017
Foot Locker Inc
FL US
9:00
Q4 2017 Earnings Call
Q4 2017
Cabot Oil & Gas Corp
COG US
9:30
Q4 2016 Earnings Call
Q4 2016
Southwestern Energy Co
SWN US
10:00
Q4 2016 Earnings Call
Q4 2016
Alliant Energy Corp
LNT US
10:00
Q4 2016 Earnings Call
Q4 2016
Pinnacle West Capital Corp
PNW US
11:00
Q4 2016 Earnings Call
Q4 2016
Public Service Enterprise Group
PEG US
11:00
Q4 2016 Earnings Call
Q4 2016