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Jim Van Meerten
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Jim Van Meerten is an advisor to Marketocracy Capital Management and writes on financial subjects here and on Barchart Portfolio Blogs and Seeking Alpha. He earned a BS in Accounting and Business Administration from Berry College; a Juris Doctorate from the Woodrow Wilson School of Law; and... More
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  • Barchart Morning Call 3/26 0 comments
    Mar 26, 2013 10:22 AM | about stocks: DTEGY, FWLT, PLCE, SONC, FMCN, GMAN, MGLN, CLMT, NEOG, CLC, AAPL, ZAZA, FREE, TGT, UPS, BGC, ENVI, LDOS, MFRM, LNDC, PEG

    BARCHART MORNING CALL

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

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    OVERNIGHT MARKETS AND NEWS
    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.

    U.S. STOCK PREVIEW
    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%.

    OVERNIGHT U.S. STOCK MOVERS

    • 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.

    MARKET COMMENTS
    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%).

    GLOBAL EVENT CALENDAR03/26/2013

    US0110 ETDallas 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 ETFeb 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 ETJan 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 ETMarch Richmond Fed manufacturing index expected unch at 6.0, Feb +18.0 to 6.0.
     1000 ETMarch U.S. consumer confidence (Conference Board) expected -2.1 to 67.5, Feb +11.2 to 69.6.
     1000 ETFeb new home sales expected -3.9% to 420,000, Jan +15.6% to 437,000.
     1300 ETTreasury sells $35 billion in 2-year T-notes.
     1630 ETAPI weekly U.S. oil statistics.
    UK0700 ETUK Mar CBI reported sales expected 15, Feb 8.
    JPN0000 ETJapan March small business confidence, Feb 46.

    U.S. STOCK CALENDAR03/26/2013

    Company NameSymbolTimeEvent DescriptionPeriodEPS Est (US$)
    Neogen CorpNEOG USBef-mktQ3 2013 Earnings ReleaseQ3 20130.273
    Children's Place Retail Stores Inc/ThePLCE USBef-mktQ4 2013 Earnings ReleaseQ4 20131.04
    Children's Place Retail Stores Inc/ThePLCE US8:30Q4 2013 Earnings CallQ4 2013 
    CLARCOR IncCLC US9:00Annual General Meeting  
    Apple IncAAPL US10:00Apple vs Samsung - Trial Continues  
    ZaZa Energy CorpZAZA US10:00Business Update Call  
    Neogen CorpNEOG US11:00Q3 2013 Earnings CallQ3 2013 
    Fortegra Financial CorpFRF US11:00Q4 2012 Earnings CallQ4 2012 
    Target CorpTGT US11:30Canadian Club of Toronto Presents, President Tony Fisher  
    United Parcel Service IncUPS US13:00Shareholders MeetingY 2013 
    General Cable CorpBGC US13:00Investor DayY 2013 
    Envivio IncENVI US17:00Q4 2013 Earnings CallQ4 2013 
    SAIC IncSAI US17:00Q4 2013 Earnings CallQ4 2013 
    Mattress Firm Holding CorpMFRM US17:00Q4 2013 Earnings CallQ4 2013 
    Landec CorpLNDC USAft-mktQ3 2013 Earnings ReleaseQ3 20130.17
    Envivio IncENVI USAft-mktQ4 2013 Earnings ReleaseQ4 2013-0.163
    SAIC IncSAI USAft-mktQ4 2013 Earnings ReleaseQ4 20130.515
    Mattress Firm Holding CorpMFRM USAft-mktQ4 2013 Earnings ReleaseQ4 20130.318
    Public Service Enterprise Group IncPEG US Investor Meeting - Toronto

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