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Barchart Morning Call 3/26



Tuesday, March 26th, 2013>>View Older Reports

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June E-mini S&Ps (ESM13 +0.06%) are mildly higher by +0.23% on hopes for strong U.S. economic reports today and on the fact that the Euro Stoxx 50 index this morning is up by +0.16%. Asian stocks today closed mixed. Japan's Nikkei index closed down -0.60% but the Hong Kong Hang Seng closed +0.27%. China's CSI 300 index closed down -1.46% on a report of tighter bank loans for property developers as the government continues it efforts to cool property prices. Commodity prices are mildly higher by +0.33% this morning. May crude oil (CLK13+0.45%) is up +0.72%, May gasoline (RBK13 +0.24%) is up +0.43%, April gold (GCJ13 -0.44%) is down -0.42%, May copper (HGK13 +0.36%) is up +0.26%, and agriculture prices are trading mostly higher. The dollar index (DXY00 +0.01%) this morning is little changed while EUR/USD (^EURUSD) is up +0.18%. USD/JPY (^USDJPY) is up +0.22%. June 10-year T-note futures (ZNM13 -0.06%) prices are down -5.5 ticks on the mildly higher trade in U.S. and European stock indexes.
Cyprus banks are closed today and Wednesday but are currently expected to open on Thursday. When they do open, depositors will be restricted in withdrawing their cash and moving it out of the country to tight capital controls that the Cyprus parliament installed late last week. The capital controls will be lifted slowly to prevent bank runs and the quick exit of capital from the country and may last a matter of months. Eurozone officials and the Cyprus government on Sunday night agreed on a 10 billion euro bailout plan that involves closing Cyprus's second largest bank, splitting the largest Cyprus bank into a good bank and bad bank, and imposing heavy losses on large uninsured depositors and bank bond holders.
Democratic Party leader Pier Luigi Bersani today will meet with deputies of Silvio Berlusconi's People of Liberty party and its partner the Northern League as he tries to form a government without the Five Star Movement party headed by ex-comic Grillo, who refuses to be part of any government with the established parties. More than a month after the Feb 24-25 national election, the Italian political parties are still trying to form a government. A new election may yet be necessary. If Mr. Bersani cannot form a government by Thursday, then Italian President Napolitano will give the opportunity to another party leader.
Japan's Feb corporate service price index rose +0.1% y/y, which was higher than market expectations of unchanged and the Jan report of -0.2%y/y.
Japan's March small business confidence index rose to a new 6-year high of 49.7 from 46.0 in February. Small business confidence has risen sharply since late last year when Prime Minister Abe took over the reins of government with his verbally aggressive plan to boost the economy.
The China Security Journal today reported that many banks have started to reduce loans to property developers, which fueled increased concerns about weaker Chinese construction growth.

There are five U.S. economic reports this morning and the Treasury will also sell $35 billion in 2-year T-notes today. The only earnings report today for the Russell 1000 stocks is SAIC (after-market) with a consensus of 52 cents. Conferences this week are light ahead of the Good Friday holiday: Canada's Energy Technology Blueprint Summit on Tuesday, Photon's 10th Solar Silicon Conference on Tuesday, Bank of America Merrill Lynch New York Auto Summit on Wednesday, CIBC Retail & Consumer Conference on Thursday, and Photon's 8th Solar Electric Utility Conference on Thursday.

June E-mini S&Ps are mildly higher by +3.50 points (+0.23%) on higher European stocks (Euro Stoxx 50 index +0.16%) and on hopes for strong U.S. economic reports this morning. The S&P 500 index on Monday closed mildly lower mainly on technical selling. The stock market was initially encouraged by Sunday night's Cyprus bailout agreement, but optimism then soured after the Dutch finance minister said that the Cyprus bailout with its heavy losses placed on uninsured depositors should be viewed as a template for bank restructuring in other countries. That raised the spectre of continued bank runs in countries such as Spain and Italy. Closes: S&P 500 -0.33%, Dow Jones -0.44%, Nasdaq 100 -0.41%.


  • T-Mobile (DTEGY -1.72%) is dropping subsidies for smartphones, according to WSJ, making it the first major U.S. wireless carrier to do so. This may encourage consumers to buy cheaper smartphones than those of Apple (AAPL +0.36%) and Samsung (SSNLF unch).
  • Foster Wheeler (FWLT -0.80%) signed a service agreement with Valero Energy (VLO +0.09%).
  • Children's Place (PLCE +0.99%) reported Q4 adjusted EPS of $1.15, above the consensus of $1.04.
  • Sonic (SONC -1.01%) rallied 4% in after-hours trading on postive earnings.
  • Focus Media (FMCN +2.03%) rallied +0.5% in after-hours trading after announcing earnings and that it will hold a shareholders meeting April 29 to vote on the proposed merger with Giovanna.
  • Gordmans Stores (GMAN +1.50%) fell 3% in after-hours trading after reporting earnings.
  • Magellan Health (MGLN -10.89%) fell 3% in after-hours trading after announcing it was not awarded a contract in Arizona.
  • Calumet Specialty Products (CLMT +0.28%) fell 4% in after-hours trading after filing to sell 5.25 million common shares.

June 10-year T-notes are down 5.5 ticks on reduced safe-haven demand with higher U.S. and European stock indexes this morning and on some supply overhang as the Treasury starts to sell $99 billion in T-notes today. June 10-year T-note prices on Monday closed slightly higher as the U.S. stock market ended up closing lower. Closes: TYM3 +2, FVM3 +0.5.
The dollar index this morning is virtually unchanged while EUR/USD is up +0.0023 (+0.18%). USD/JPY is up +0.21 yen (+0.22%). The dollar index on Monday closed moderately higher and EUR/USD closed lower since the market was already fairly certain that a Cyprus bailout would be reached and then decided to focus more on the negative implication of the bailout for bank deposit runs in other troubled countries. Closes: Dollar index +0.45 (+0.55%), EUR/USD -0.0136 (-1.05%), USD/JPY -0.29 (-0.31%).
May WTI crude oil this morning is up +0.68 (+0.72%) and May gasoline is up +0.0132 (+0.43%). Crude oil and gasoline prices on Monday closed higher on relief about the Cyprus bailout and on expectations for firmer U.S. crude oil demand after last week's news of a sharp +2.5 point increase in the U.S. refinery utilization rate on the end of maintenance runs. Gasoline prices lagged on expectations for higher gasoline output in coming weeks. Closes: CLK3 +1.10 (+1.17%), RBK3 +0.0030 (+0.10%).


US 0110 ET Dallas Fed President Richard Fisher speaks in Abu Dhabi to Global Interdependence Center Banking Series on "An Economic and Monetary Policy Outlook: Where Does the United States Go from Here?
  0830 ET Feb durable goods orders expected +3.9% m/m, Jan -4.9% m/m. Feb durable goods orders ex-transportation expected +0.5% m/m, Jan +2.3% m/m. Feb non-defense capital goods orders ex-defense expected -1.0% m/m, Jan +6.3% m/m.
  0900 ET Jan Case-Shiller Composite-20 Home Price index expected +0.8% m/m and +7.9% y/y, Dec +0.9% m/m and +6.8% y/y.
  1000 ET March Richmond Fed manufacturing index expected unch at 6.0, Feb +18.0 to 6.0.
  1000 ET March U.S. consumer confidence (Conference Board) expected -2.1 to 67.5, Feb +11.2 to 69.6.
  1000 ET Feb new home sales expected -3.9% to 420,000, Jan +15.6% to 437,000.
  1300 ET Treasury sells $35 billion in 2-year T-notes.
  1630 ET API weekly U.S. oil statistics.
UK 0700 ET UK Mar CBI reported sales expected 15, Feb 8.
JPN 0000 ET Japan March small business confidence, Feb 46.


Company Name Symbol Time Event Description Period EPS Est (US$)
Neogen Corp NEOG US Bef-mkt Q3 2013 Earnings Release Q3 2013 0.273
Children's Place Retail Stores Inc/The PLCE US Bef-mkt Q4 2013 Earnings Release Q4 2013 1.04
Children's Place Retail Stores Inc/The PLCE US 8:30 Q4 2013 Earnings Call Q4 2013  
CLARCOR Inc CLC US 9:00 Annual General Meeting    
Apple Inc AAPL US 10:00 Apple vs Samsung - Trial Continues    
ZaZa Energy Corp ZAZA US 10:00 Business Update Call    
Neogen Corp NEOG US 11:00 Q3 2013 Earnings Call Q3 2013  
Fortegra Financial Corp FRF US 11:00 Q4 2012 Earnings Call Q4 2012  
Target Corp TGT US 11:30 Canadian Club of Toronto Presents, President Tony Fisher    
United Parcel Service Inc UPS US 13:00 Shareholders Meeting Y 2013  
General Cable Corp BGC US 13:00 Investor Day Y 2013  
Envivio Inc ENVI US 17:00 Q4 2013 Earnings Call Q4 2013  
SAIC Inc SAI US 17:00 Q4 2013 Earnings Call Q4 2013  
Mattress Firm Holding Corp MFRM US 17:00 Q4 2013 Earnings Call Q4 2013  
Landec Corp LNDC US Aft-mkt Q3 2013 Earnings Release Q3 2013 0.17
Envivio Inc ENVI US Aft-mkt Q4 2013 Earnings Release Q4 2013 -0.163
SAIC Inc SAI US Aft-mkt Q4 2013 Earnings Release Q4 2013 0.515
Mattress Firm Holding Corp MFRM US Aft-mkt Q4 2013 Earnings Release Q4 2013 0.318
Public Service Enterprise Group Inc PEG US   Investor Meeting - Toronto