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OVERNIGHT MARKETS AND NEWS
June E-mini S&Ps (ESM13 +0.35%) this morning are up +0.27% as European stocks rally +0.52% on a decline in Eurozone government debt yields. Italian 10-year borrowing costs plummeted to a 2-1/2 year low of 3.94% after new Italian Prime Minister Enrico Letta was sworn in, which ended a 2-month long political standoff caused by inconclusive elections. European stocks gained despite a larger-than-expected decline in the Eurozone April economic and business confidence surveys. Asian stocks today closed mostly higher: Hong Kong +0.15%, Taiwan +0.10%, Australia +0.56%, Singapore +0.39%, South Korea -0.31%, India +0.52%. Japan and China closed for holiday. Commodity prices are mostly higher with a weaker dollar. June WTI crude oil (CLM13 +0.39%) is up +0.40, June gasoline (RBM13 -0.54%)is down -0.0147, June natural gas (NGM13 +1.23%) is down by -1.14, June gold (GCM13 +1.45%) is up +1.22%, May copper (HGK13 +1.24%) is up +0.96%. The dollar index (DXY00 -0.42%) is weaker by -0.36% and fell to a 1-1/2 week low. EUR/USD (^EURUSD) is higher by +0.41%. USD/JPY (^USDJPY) is lower by-0.16% and posted a 1-week low. June 10-year T-note (ZNM13 -0.01%) futures prices are down -1.5 ticks.
Italy sold 3 billion euros of 10-year bonds at 3.94%, down from 4.66% at last month's auction and the lowest yield in 2-1/2 years. The bid-to-cover ratio was 1.42 times the amount offered, up from 1.33 last month. Italy also sold 3 billion euros of 5-year notes at a yield of 2.84%, down from 3.65% at a similar auction last month.
Spain's 10-year bond yield fell to 4.20%, a 2-1/2 year low, as German Finance Minister Schaeuble travels to Spain today to unveil a plan aimed at spurring investment in Spanish companies.
The Eurozone April economic confidence fell -1.5 points to 88.6 from a revised 90.1 in March. That was weaker than expectations of a -0.7 point decline to 89.3. The April business climate indicator fell -0.18 to -0.93 from a revised -0.75 in March. That was also weaker than expectations of a -0.5 point decline to -0.91.
Minutes from the Apr 16 Riksbank meeting showed board members were concerned with strength in the Swedish krona and its impact on the economy. Sweden's central bank kept its main lending rate unchanged at 1.0%, and pushed back plans for a rate increase until 2014, citing a strengthening krona and the inability of companies to raise prices because of weak demand. The Riksbank also cut its inflation forecast to 0.1% from 0.4% for this year and predicted the Swedish economy will grow 1.4% this year and 2.7% in 2014.
U.S. STOCK PREVIEW
June E-mini S&Ps (ESM13 +0.35%) this morning are up +0.27%. The S&P 500 index on Friday moved lower after the U.S. economy grew less than expected in Q1. U.S. Q1 GDP grew at a +2.5% (q/q annualized) pace, weaker than expectations of +3.0%. Stock losses were limited, however, as U.S. Q1 personal consumption rose +3.2%, stronger than expectations of +2.8%, and after the final U.S. Apr consumer confidence (University of Michigan) climbed +4.1 points to 76.4, stronger than expectations of +1.2 to 73.5. Another bullish factor for stocks is strong Q1 earnings growth as 74% of the 270 of the S&P 500 companies that have reported earnings results have beaten estimates. Closes: S&P 500-0.18%, Dow Jones +0.08%, Nasdaq 100 -0.28%.
OVERNIGHT U.S. STOCK MOVERS
Piper Jaffray says Facebook (FB +2.72%) could report Q1 revenue on Wednesday that misses consensus expectations by 1%-2%. Piper Jaffray says the company's core ad revenue growth may not accelerate as fast as analysts expect.
Abercrombie & Fitch (ANF +0.56%) upgraded to Outperform from Neutral at Macquarie.
Penske Automotive (PAG -1.29%) reported Q1 continuing EPS of 63 cents, better than consensus of 62 cents.
Roper Industries (ROP -0.28%) reported Q1 EPS of $1.27, better than consensus of $1.22.
Eaton Corp PLC (ETN -0.07%) reported Q1 EPS of 84 cents, better than consensus of 78 cents.
Loews (L -1.27%) reported Q1 EPS of 82 cwnts, weaker than consensus of 84 cents.
Amin Fadul Ali reported a 9.5% stake in Atlantic Coast Federal (ACFC -0.60%) .
CNBC reported after the markets closed Friday that Goldman Sachs (GS -0.45%) had secured a $1.75 billion loan for J.C. Penney (JCP+11.55%) that would be backed by the company's real estate and real estate leases.
PAR Investment Partners reported a 7% passive stake in Churchill Downs (CHDN +1.59%) .
Dow Jones reported after the markets closed Friday that Clearwire stock holder Aurelius Capital had filed a motion to block the Clearwire (CLWR+3.93%) and Sprint (S -0.28%) merger.
Rent-A-Center (RCII +0.56%) announced that its board has increased the authorization for stock repurchases under the company's common stock repurchase plan by $250 million to $1.25 billion.
June 10-year T-notes (ZNM13 -0.01%) this morning are down -1.5 ticks. June 10-year T-note futures prices on Friday settled higher. T-notes found support on the weaker-than-expected U.S. Q1 GDP, which sent stocks lower and increased the safe-haven demand for Treasuries. Another supportive factor was bond-dealer short covering as dealers lifted short-hedges after Thursday's conclusion to the week's $99 billion of T-note auctions. Closes: TYM3 +12.0, FVM3 +4.50.
The dollar index (DXY00 -0.42%) this morning is weaker by -0.36% and at a a 1-1/2 week low. EUR/USD (^EURUSD) is up +0.41% and USD/JPY (^USDJPY) is down -0.16% at a 1-week low. The dollar index on Friday closed lower. The main bearish factor was the slower-than-expected growth in U.S. Q1 GDP, which increased speculation the Fed will maintain its dollar-negative QE program. USD/JPY fell to a 1-week low as the yen strengthened after the BOJ failed to offer new stimulus measures at the conclusion of its policy meeting Friday. Closes: Dollar index -0.270 (-0.33%), EUR/USD +0.0018 (+0.14%), USD/JPY -1.224 (-1.23%).
June WTI crude oil (CLM13 +0.39%) this morning is up +0.40 and June gasoline (RBM13 -0.54%)is down -0.0147. June crude oil and gasoline on Friday settled mixed. The main bearish factor was the weaker-than-expected U.S. Q1 GDP, which raised demand concerns. Prices came off of their worst levels, though, after the Apr U.S. University of Michigan consumer confidence came in stronger than expected. Closes: CLM3 -0.64(-0.68%), RBM3 +0.0032 (+0.11%).
GLOBAL EVENT CALENDAR04/29/2013
|US||0830 ET||Mar personal spending expected +0.1% m/m Feb +0.7%. Mar personal income expected +0.4%, Feb +1.1%.|
|0830 ET||Mar PCE deflator expected -0.1% m/m and +1.0% y/y, Feb +0.4% m/m and +1.3% y/y. Mar core PCE deflator expected +0.1% m/m and +1.2% y/y, Feb +0.1% m/m and +1.3% y/y.|
|1000 ET||Mar pending home sales expected +1.0% m/m, Feb -0.4% m/m and +5.0% y/y.|
|1030 ET||Apr Dallas Fed manufacturing activity, Mar 7.4.|
|1100 ET||USDA weekly grain export inspections.|
|1500 ET||Treasury issues quarterly borrowing estimates.|
|1600 ET||USDA Crop Progress.|
|EUR||0500 ET||Eurozone Apr economic confidence expected 89.4, Mar 90.0. Apr business climate indicator expected -0.91, Mar -0.86.|
|0500 ET||Final Eurozone Apr consumer confidence, previous -22.3.|
|GER||0800 ET||German Apr CPI (EU harmonized) expected -0.1% m/m and +1.7% y/y, Mar +0.4% m/m and +1.8% y/y.|
|UK||1901 ET||UK Apr GfK consumer confidence survey expected -26, Mar -26.|
|JPN||1930 ET||Japan Mar overall household spending expected +1.6% y/y, Feb +0.8% y/y.|
|1930 ET||Japan Mar jobless rate expected 4.2%, Feb 4.3%.|
|1950 ET||Japan Mar industrial production expected +0.4% m/m and -7.2% y/y, Feb +0.6% m/m and -10.5% y/y.|
|1950 ET||Japan Mar retail trade expected -0.8% m/m and +0.4% y/y, Feb +1.7% m/m and -2.2% y/y.|
|n/a||Japanese markets closed for Showa Day.|
|CH||n/a||Chinese markets closed for Labor Day|
U.S. STOCK CALENDAR04/29/2013
|Company Name||Symbol||Time||Event Description||Period||EPS Est (US$)|
|Pentair Ltd||PNR US||4:00||Annual General Meeting||Y 2013|
|CNA Financial Corp||CNA US||Bef-mkt||Q1 2013 Earnings Release||Q1 2013||0.713|
|Eaton Corp PLC||ETN US||Bef-mkt||Q1 2013 Earnings Release||Q1 2013||0.784|
|Energen Corp||EGN US||Bef-mkt||Q1 2013 Earnings Release||Q1 2013||1.214|
|Loews Corp||L US||Bef-mkt||Q1 2013 Earnings Release||Q1 2013||0.84|
|Health Net Inc/CA||HNT US||Bef-mkt||Q1 2013 Earnings Release||Q1 2013||0.407|
|Roper Industries Inc||ROP US||Bef-mkt||Q1 2013 Earnings Release||Q1 2013||1.222|
|Choice Hotels International Inc||CHH US||Bef-mkt||Q1 2013 Earnings Release||Q1 2013||0.268|
|Senior Housing Properties Trust||SNH US||Bef-mkt||Q1 2013 Earnings Release||Q1 2013||0.437|
|Extra Space Storage Inc||EXR US||Bef-mkt||Q1 2013 Earnings Release||Q1 2013||0.438|
|Compass Minerals International Inc||CMP US||7:00||Q1 2013 Earnings Release||Q1 2013||1.116|
|Roper Industries Inc||ROP US||8:30||Q1 2013 Earnings Call||Q1 2013|
|American Express Co||AXP US||9:00||Annual General Meeting||Y 2013|
|Capitol Federal Financial Inc||CFFN US||9:00||Q2 2013 Earnings Release||Q2 2013||0.118|
|CNA Financial Corp||CNA US||10:00||Q1 2013 Earnings Call||Q1 2013|
|Eaton Corp PLC||ETN US||10:00||Q1 2013 Earnings Call||Q1 2013|
|Fulton Financial Corp||FULT US||10:00||Annual General Meeting||Y 2013|
|Regal-Beloit Corp||RBC US||10:00||Annual General Meeting|
|Choice Hotels International Inc||CHH US||10:00||Q1 2013 Earnings Call||Q1 2013|
|Compass Minerals International Inc||CMP US||10:00||Q1 2013 Earnings Call||Q1 2013|
|Boeing Co/The||BA US||11:00||Annual General Meeting|
|Energen Corp||EGN US||11:00||Q1 2013 Earnings Call||Q1 2013|
|Loews Corp||L US||11:00||Q1 2013 Earnings Call||Q1 2013|
|Health Net Inc/CA||HNT US||11:00||Q1 2013 Earnings Call||Q1 2013|
|Coca-Cola Co/The||KO US||11:45||Economic Club of Canada Presents President Nicola Kettlitz|
|Mercury General Corp||MCY US||13:00||Q1 2013 Earnings Call||Q1 2013|
|Senior Housing Properties Trust||SNH US||13:00||Q1 2013 Earnings Call||Q1 2013|
|Armstrong World Industries Inc||AWI US||13:00||Q1 2013 Earnings Call||Q1 2013|
|Extra Space Storage Inc||EXR US||13:00||Q1 2013 Earnings Call||Q1 2013|
|PACCAR Inc||PCAR US||13:30||Annual General Meeting|
|United Technologies Corp||UTX US||14:00||Annual General Meeting|
|QIAGEN NV||QGEN US||16:00||Q1 2013 Earnings Release||Q1 2013||0.222|
|Hartford Financial Services Group Inc||HIG US||16:15||Q1 2013 Earnings Release||Q1 2013||0.82|
|CapitalSource Inc||CSE US||16:15||Q1 2013 Earnings Release||Q1 2013||0.143|
|Riverbed Technology Inc||RVBD US||16:30||Q1 2013 Earnings Call||Q1 2013|
|Allison Transmission Holdings Inc||ALSN US||16:30||Q1 2013 Earnings Call||Q1 2013|
|Fortune Brands Home & Security Inc||FBHS US||16:30||Annual General Meeting|
|Plum Creek Timber Co Inc||PCL US||17:00||Q1 2013 Earnings Call||Q1 2013|
|CapitalSource Inc||CSE US||17:30||Q1 2013 Earnings Call||Q1 2013|
|Peabody Energy Corp||BTU US||18:00||Annual General Meeting|
|Masco Corp||MAS US||Aft-mkt||Q1 2013 Earnings Release||Q1 2013||0.135|
|Newmont Mining Corp||NEM US||Aft-mkt||Q1 2013 Earnings Release||Q1 2013||0.772|
|Plum Creek Timber Co Inc||PCL US||Aft-mkt||Q1 2013 Earnings Release||Q1 2013||0.323|
|Express Scripts Holding Co||ESRX US||Aft-mkt||Q1 2013 Earnings Release||Q1 2013||0.976|
|General Growth Properties Inc||GGP US||Aft-mkt||Q1 2013 Earnings Release||Q1 2013||0.225|
|Post Properties Inc||PPS US||Aft-mkt||Q1 2013 Earnings Release||Q1 2013||0.701|
|CBL & Associates Properties Inc||CBL US||Aft-mkt||Q1 2013 Earnings Release||Q1 2013||0.511|
|PartnerRe Ltd||PRE US||Aft-mkt||Q1 2013 Earnings Release||Q1 2013||2.376|
|Arch Capital Group Ltd||ACGL US||Aft-mkt||Q1 2013 Earnings Release||Q1 2013||0.958|
|Hanover Insurance Group Inc/The||THG US||Aft-mkt||Q1 2013 Earnings Release||Q1 2013||1.052|
|Erie Indemnity Co||ERIE US||Aft-mkt||Q1 2013 Earnings Release||Q1 2013||0.725|
|Alexandria Real Estate Equities Inc||ARE US||Aft-mkt||Q1 2013 Earnings Release||Q1 2013||1.111|
|SBA Communications Corp||SBAC US||Aft-mkt||Q1 2013 Earnings Release||Q1 2013||-0.209|
|Community Health Systems Inc||CYH US||Aft-mkt||Q1 2013 Earnings Release||Q1 2013||0.849|
|Herbalife Ltd||HLF US||Aft-mkt||Q1 2013 Earnings Release||Q1 2013||1.064|
|Riverbed Technology Inc||RVBD US||Aft-mkt||Q1 2013 Earnings Release||Q1 2013||0.236|
|Hertz Global Holdings Inc||HTZ US||Aft-mkt||Q1 2013 Earnings Release||Q1 2013||0.158|
|Allison Transmission Holdings Inc||ALSN US||Aft-mkt||Q1 2013 Earnings Release||Q1 2013||0.191|
|Jacobs Engineering Group Inc||JEC US||22:00||Q2 2013 Earnings Release||Q2 2013||0.825|
|Boeing Co/The||BA US||Extraordinary Shareholder Meeting|
|Mercury General Corp||MCY US||Q1 2013 Earnings Release||Q1 2013||0.468|
|Armstrong World Industries Inc||AWI US||Q1 2013 Earnings Release||Q1 2013||0.386|