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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 5/1 0 comments
    May 1, 2013 10:10 AM | about stocks: ICE, MRK, CVS, VIAB, CHK, HUM, AMGN, COST, MTW, GNW, TE, CVG, INT, PEP, GPRE, OPEN, SBY, IAC, AJG, CRAY, T, FBHS, DWA, WU, RATE, TRN, SPB, EXC, RDC, CMCSA, TWX

    BARCHART MORNING CALL

    Wednesday, May 1st, 2013>>View Older Reports

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    OVERNIGHT MARKETS AND NEWS
    June E-mini S&Ps (ESM13 +0.11%) this morning are up +0.14% and posted another record high in overnight trade. Most of Europe is closed for holiday, although the UK FTSE 100 Stock Index is up +0.66%. Asian stocks closed lower, although most were closed today for holiday: Japan-0.44%, Australia -0.48%. Commodity prices are mostly lower as weaker-than-expected manufacturing reports in China and Australia undercut most commodities. June WTI crude oil (CLM13 -1.35%) is down -1.41%, June gasoline (RBM13 -1.43%) is down -1.40%, June natural gas (NGM13 +1.04%) is up +0.83%, June gold (GCM13 -0.50%) is down -0.18%, July copper (HGN13 -1.98%) is down -1.84%. Agriculture prices are mostly lower. The dollar index (DXY00 -0.33%) is down -0.18% and fell to its lowest level in 2 months on speculation the Fed today will affirm its commitment to QE3. EUR/USD (^EURUSD)is up +0.23% at a 2-week high. USD/JPY (^USDJPY)is up +0.09%. GBP/USD is up +0.23% and rallied to a 2-1/2 month high after UK manufacturing activity strengthened more than expected last month. June 10-year T-note futures prices (ZNM13 +0.05%) are up +0.5 of a tick ahead of the outcome of the 2-day FOMC meeting later today.
    The China Apr manufacturing PMI fell -0.3 to 50.6, slightly weaker than expectations of -0.2 to 50.7.
    The Australia Apr AiG performance of manufacturing index fell -7.7 points to a 4-year low of 36.7.
    Japan Mar labor cash earnings fell -0.6% y/y, an improvement from a revised -0.8% y/y decline in Feb, and better than expectations of a -1.2%y/y decline.
    UK Apr nationwide house prices fell -0.1% m/m and rose +0.9% y/y, weaker than expectations of +0.3% m/m and +1.3% y/y.
    UK Apr PMI manufacturing rose +1.2 to 49.8 from a revised 48.6 in Mar, stronger than expectations of +0.2 to 48.5.

    U.S. STOCK PREVIEW
    Today's April ISM manufacturing index is expected to show a small decline of -0.3 to 51.0, adding to the sharp decline of -2.9 points to 51.3 seen in March. Today's April ADP employment report is expected at +153,000, which would be just below the +158,000 increase seen in March. Today's Apr total vehicle sales report is expected to edge higher to 15.30 million units from 15.22 million units in March. The 2-day FOMC meeting that concludes today is expected to produce a fully unchanged monetary policy and no change in the FOMC's QE3 program.
    Today is a very busy earnings day with 40 of the S&P 500 companies scheduled to release earnings (please see stock calendar below). Key reports include Time Warner, Merck, Mastercard and Visa. Conferences through the remainder of this week include Barclays Retail and Consumer Discretionary Conference on Tue-Wed, PEX Week Europe 2013 on Tue-Wed.

    OVERNIGHT U.S. STOCK MOVERS
    IntercontinentalExchange (ICE +0.64%) reported Q1 EPS of $2.03, better than consensus of $1.97.
    Merck (MRK -1.71%) reported Q1 EPS of 85 cents, better than consensus of 79 cents.
    CVS Caremark (CVS +1.29%) reported Q1 EPS of 83 cents, better than consensus of 79 cents.
    Viacom (VIAB +0.53%) reported Q1 EPS of 96 cents, better than consensus of 95 cents.
    Chesapeake Energy (CHK +1.09%) reported Q1 EPS of 30 cents, better than consensus of 25 cents.
    Humana (HUM +1.35%) reported Q1 EPS of $2.69, much better than consensus of $1.80.
    Amgen (AMGN -2.31%) rose nearly 3% in pre-market trading after Goldman Sachs raised its outlook on the company to a "Buy" from "Neutral."
    Costco (COST -0.18%) raised its quarterly dividend to 31 cents from 27.5 cents per share.
    Manitowoc (MTW +1.57%) reported Q1 EPS of 9 cents, weaker than consensus of 14 cents.
    Genworth (GNW +0.91%) rose over 5% in after-hours trading after it reported Q1 EPS of 30 cents, better than consensus of 27 cents.
    TECO Energy (TE +0.63%) reported Q1 EPS of 19 cents, better than consensus of 17 cents.
    Convergys (CVG +2.35%) reported Q1 adjusted EPS of 27 cents, better than consensus of 23 cents, and raised its guidance on fiscal 2013 to an adjusted EPS of $1.05 from $1.00.
    World Fuel Services (INT +1.35%) reported Q1 adjusted EPS of 77 cents, well ahead of consensus of 64 cents.
    PepsiCo (PEP -0.22%) increased its annual dividend to $2.27 from $2,15, the company's 41st consecutive annual dividend increase.
    Green Plains (GPRE +0.24%) reported Q1 EPS of 8 cents, better than consensus of a -11 cent loss.
    SAC Capital reported a 5.0% passive stake in OpenTable (OPEN -0.52%) and a 5.8% passive stake in Silver Bay Realty (SBY -0.88%) .
    IAC (IACI +2.98%) reported Q1 adjusted EPS of 83 cents, well ahead of consensus of 69 cents.
    Arthur J. Gallagher (AJG +0.05%) reported Q1 EPS of 32 cents, better than consensus of 24 cents.
    Cray (CRAY +1.34%) reported a Q1 EPS loss of -23 cents, better than consensus of a -24 cent loss, and said ot sees 2013 revenue of $500 million, better than consensus of $498.2 million.
    Leap Wireless (LEAP +1.42%) fell more than 3% in after-hours trading after it reported a Q1 EPS loss of -$1.43, wider than consensus of a -$1.26 loss.
    Fortune Brands (FBHS -0.16%) initiates a quarterly dividend of 10 cents per share, the first dividend paid to shareholders since FBHS became a public company in October 2011.
    DreamWorks (DWA +0.10%) rallied over 8% in after-hours trading after it reported Q1 EPS of 7 cents, better than consensus of a -3 cent loss.
    Western Union (WU +1.16%) reported Q1 EPS of 37 cents, better than consensus of 32 cents.
    Bankrate (RATE -0.30%) jumped over 11% in after-hours trading after it reported Q1 adjusted EPS of 12 cents, stronger than consensus of 9 cents
    Trinity Industries (TRN +1.44%) reported Q1 EPS of 91 cents, higher than consensus of 81 cents, and raised guidance for fiscal 2013 to $3.80-$4.05, higher than consensus of $3.79.
    Spectrum Brands (SPB -0.30%) reported Q2 adjusted of EPS 44 cents, below consensus of 52 cents.

    MARKET COMMENTS
    June E-mini S&Ps (ESM13 +0.11%) this morning are up +2.25 points (+0.14%) at a new record high. The S&P 500 index on Tuesday climbed to a new record high and settled higher after gains in housing prices and consumer confidence offset an unexpected drop in the Apr Chicago PMI. Stocks were pressured early after the Apr Chicago PMI unexpectedly contracted -3.4 points to a 3-1/2 year low of 49.0, weaker than expectations of +0.1 to 52.5. Prices then rallied the rest of the day after U.S. Apr consumer confidence (Conference Board) climbed 6.2 points to a 5-month high of 68.1, better than expectations of +1.3 to 61.0, and after the Feb S&P/CaseShiller composite-20 home price index rose +1.24% m/m and +9.32% y/y, stronger than expectations of +0.9% m/m and +9.0% y/y. Closes: S&P 500 +0.25%, Dow Jones +0.14%, Nasdaq 100 +0.71%.
    June 10-year T-notes (ZNM13 +0.05%) this morning are up +0.5 of a tick. June 10-year T-note futures prices on Tuesday posted a new contract high and the 10-year T-note yield fell to a 4-1/2 month low of 1.636%, but prices fell back and closed slightly lower as stock market strength sapped the safe-haven demand for Treasuries. The main bullish factors were a lack of wage pressures after the Q1 employment cost index rose a smaller-than-expected +0.3%, versus expectations of +0.5%, along with concern the economy is slowing after the Apr Chicago PMI unexpectedly contracted at a 3-year low of 49.0. Closes: TYM3 -3.0, FVM3 -0.25.
    The dollar index (DXY00 -0.33%) this morning is down -0.150 (-0.18%) at a new 2-month low. EUR/USD (^EURUSD) is up +0.0030 (+0.23%) at a 2-week high and USD/JPY (^USDJPY) is up +0.09 (+0.09%). The dollar index on Tuesday dropped to a 2-month low after an unexpected contraction in the Apr Chicago PMI fueled speculation the Fed will maintain or even expand its dollar-negative QE3 program following Wednesday's FOMC meeting. EUR/USD posted a 2-week high on speculation that a forecasted rate cut Thursday by the ECB will spur economic growth in the Eurozone. USD/JPY fell to 2-week low as the yen strengthened after Japan's Mar jobless rate unexpectedly declined -0.1to a 4-1/3 year low of 4.1%. Closes: Dollar index -0.401 (-0.49%), EUR/USD +0.0069 (+0.53%), USD/JPY -0.318 (-0.33%).
    June WTI crude oil (CLM13 -1.35%) this morning is down -1.31 (-1.40%) and June gasoline (RBM13 -1.43%) is down -0.393 (-1.40%). June crude oil and gasoline on Tuesday closed lower. Bearish factors included the unexpected contraction in the Apr Chicago PMI to a 3-year low, which raises demand concerns, and expectations for Wednesday's EIA weekly inventories to show a +1.1 million barrel increase in crude stockpiles to a 22-3/4 year high. Closes: CLM3 -1.04 (-1.10%), RBM3 -0.0200 (-0.71%).

    GLOBAL EVENT CALENDAR05/01/2013

    US 0700 ET Weekly MBA mortgage applications, previous +0.2% with purchase sub-index +0.3% and refi sub-index +0.3%.
      0815 ET Apr ADP employment change expected +153,000, Mar 158,000.
      0900 ET Treasury announces amounts of 3-year T-notes (previous $32 billion), 10-year T-notes (previous $21 billion) and 30-year T-bonds ($13 billion) to be auctioned May 7-9 for the quarterly refunding.
      1000 ET Mar construction spending expected +0.5%, Feb +1.2%.
      1000 ET Apr ISM manufacturing expected -0.3 to 51.0, Mar -2.9 to 51.3. Apr ISM prices paid expected -1.9 to 52.6, Mar 54.5.
      1030 ET EIA Weekly Petroleum Status Report.
      1400 ET FOMC announces interest rate decision.
      1700 ET Apr total vehicle sales expected 15.30 mln, Mar 15.22 mln. Apr domestic vehicle sales expected 12.0 mln units, Mar 12.00 mln.
    EUR n/a European markets closed for Labor Day.
    UK 0200 ET U.K. Apr nationwide house prices expected +0.3% m/m and +1.3% y/y.
      0430 ET U.K. Apr PMI manufacturing expected +0.2 to 48.5, Mar 48.3.
    CH 2145 ET China Apr HSBC manufacturing PMI expected -1.0 to 50.6, Mar 51.6.
      n/a Chinese markets closed for Labor Day.

    U.S. STOCK CALENDAR05/01/2013

     

     

    Company Name Symbol Time Event Description Period EPS Est (US$)
    CVS Caremark Corp CVS US Bef-mkt   Q1 2013 0.794
    Merck & Co Inc MRK US Bef-mkt   Q1 2013 0.794
    Exelon Corp EXC US Bef-mkt   Q1 2013 0.678
    Rowan Cos Plc RDC US Bef-mkt   Q1 2013 0.522
    Comcast Corp CMCSA US Bef-mkt   Q1 2013 0.505
    Time Warner Inc TWX US Bef-mkt   Q1 2013 0.744
    Coventry Health Care Inc CVH US Bef-mkt   Q1 2013 0.813
    Chesapeake Energy Corp CHK US Bef-mkt   Q1 2013 0.25
    MFA Financial Inc MFA US Bef-mkt   Q1 2013 0.21
    Devon Energy Corp DVN US Bef-mkt   Q1 2013 0.551
    Energizer Holdings Inc ENR US Bef-mkt   Q2 2013 1.275
    Garmin Ltd GRMN US Bef-mkt   Q1 2013 0.413
    Mastercard Inc MA US Bef-mkt   Q1 2013 6.167
    IntercontinentalExchange Inc ICE US Bef-mkt   Q1 2013 1.966
    Hospira Inc HSP US Bef-mkt   Q1 2013 0.442
    Viacom Inc VIAB US Bef-mkt   Q2 2013 0.95
    Delphi Automotive PLC DLPH US Bef-mkt   Q1 2013 0.961
    ADT Corp/The ADT US Bef-mkt   Q2 2013 0.425
    Humana Inc HUM US 6:00   Q1 2013 1.801
    Iron Mountain Inc IRM US 6:00   Q1 2013 0.271
    SPX Corp SPW US 6:30   Q1 2013 0.261
    American Tower Corp AMT US 7:00   Q1 2013 0.818
    Sealed Air Corp SEE US 7:30   Q1 2013 0.183
    Hyatt Hotels Corp H US 7:30   Q1 2013 0.08
    Merck & Co Inc MRK US 8:00   Q1 2013  
    Phillips 66 PSX US 8:00   Q1 2013 1.886
    Avnet Inc AVT US 8:30   Y 2013  
    Clorox Co/The CLX US 8:30   Q3 2013 1.051
    CVS Caremark Corp CVS US 8:30   Q1 2013  
    SPX Corp SPW US 8:30   Q1 2013  
    Comcast Corp CMCSA US 8:30   Q1 2013  
    IAC/InterActiveCorp IACI US 8:30   Q1 2013  
    Iron Mountain Inc IRM US 8:30   Q1 2013  
    American Tower Corp AMT US 8:30   Q1 2013  
    General Cable Corp BGC US 8:30   Q1 2013  
    DTE Energy Co DTE US 8:30   Y 2013  
    IntercontinentalExchange Inc ICE US 8:30   Q1 2013  
    Viacom Inc VIAB US 8:30   C1 2013  
    Verisk Analytics Inc VRSK US 8:30   Q1 2013  
    ADT Corp/The ADT US 8:30   Q2 2013  
    Jack Henry & Associates Inc JKHY US 8:45   Q3 2013  
    Allergan Inc/United States AGN US 9:00   Q1 2013 0.963
    Domtar Corp UFS US 9:00   Y 2013  
    Arthur J Gallagher & Co AJG US 9:00   Q1 2013  
    General Dynamics Corp GD US 9:00      
    Humana Inc HUM US 9:00   Q1 2013  
    PepsiCo Inc PEP US 9:00      
    PepsiCo Inc PEP US 9:00   Y 2013  
    UGI Corp UGI US 9:00   Q2 2013  
    Clean Harbors Inc CLH US 9:00   Q1 2013  
    HCC Insurance Holdings Inc HCC US 9:00   Q1 2013  
    Chesapeake Energy Corp CHK US 9:00   Q1 2013  
    QEP Resources Inc QEP US 9:00   Q1 2013  
    Mastercard Inc MA US 9:00   Q1 2013  
    Hospira Inc HSP US 9:00   Q1 2013  
    Genworth Financial Inc GNW US 9:00   Q1 2013  
    Ford Motor Co F US 9:30   2013  
    Questar Corp STR US 9:30   Q1 2013  
    Markel Corp MKL US 9:30   Q1 2013  
    Packaging Corp of America PKG US 9:30      
    Rackspace Hosting Inc RAX US 9:30   Y 2013  
    Archer-Daniels-Midland Co ADM US Aft-mkt   Q1 2013 0.499
    Atmos Energy Corp ATO US Aft-mkt   Q2 2013 1.29
    Con-way Inc CNW US Aft-mkt   Q1 2013 0.273
    Kimco Realty Corp KIM US Aft-mkt   Q1 2013 0.322
    Lincoln National Corp LNC US Aft-mkt   Q1 2013 1.099
    Murphy Oil Corp MUR US Aft-mkt   Q1 2013 0.975
    Northeast Utilities NU US Aft-mkt   Q1 2013 0.655
    Tesoro Corp TSO US Aft-mkt   Q1 2013 0.698
    Integrys Energy Group Inc TEG US Aft-mkt   Q1 2013 1.604
    Atmel Corp ATML US Aft-mkt   Q1 2013 0.029
    Atwood Oceanics Inc ATW US Aft-mkt   Q2 2013 1.217
    CBS Corp CBS US Aft-mkt   Q1 2013 0.677
    JDS Uniphase Corp JDSU US Aft-mkt   Q3 2013 0.114
    Macerich Co/The MAC US Aft-mkt   Q1 2013 0.792
    Mid-America Apartment Communities Inc MAA US Aft-mkt   Q1 2013 1.191
    RenaissanceRe Holdings Ltd RNR US Aft-mkt   Q1 2013 3.041
    Prudential Financial Inc PRU US Aft-mkt   Q1 2013 1.884
    Essex Property Trust Inc ESS US Aft-mkt   Q1 2013 1.88
    Walter Energy Inc WLT US Aft-mkt   Q1 2013 -0.895
    Triumph Group Inc TGI US Aft-mkt   Q4 2013 1.597
    Pioneer Natural Resources Co PXD US Aft-mkt   Q1 2013 0.973
    Concur Technologies Inc CNQR US Aft-mkt   Q2 2013 0.235
    Vectren Corp VVC US Aft-mkt   Q1 2013 0.665
    Charles River Laboratories International Inc CRL US Aft-mkt   Q1 2013 0.708
    MetLife Inc MET US Aft-mkt   Q1 2013 1.304
    Endurance Specialty Holdings Ltd ENH US Aft-mkt   Q1 2013 1.09
    BioMed Realty Trust Inc BMR US Aft-mkt   Q1 2013 0.391
    Las Vegas Sands Corp LVS US Aft-mkt   Q1 2013 0.67
    Brookdale Senior Living Inc BKD US Aft-mkt   Q1 2013 -0.043
    Facebook Inc FB US Aft-mkt   Q1 2013 0.126
    Concho Resources Inc CXO US Aft-mkt   Q1 2013 0.781
    Genpact Ltd G US Aft-mkt   Q1 2013 0.222
    Visa Inc V US Aft-mkt   Q2 2013 1.81
    Intrepid Potash Inc IPI US Aft-mkt   Q1 2013 0.194
    Arrow Electronics Inc ARW US     Q1 2013 0.882
    Federal Realty Investment Trust FRT US     Q1 2013 1.123
    BB&T Corp BBT US     Y 2013  
    Unit Corp UNT US     Q1 2013 0.865
    Clean Harbors Inc CLH US     Q1 2013 0.334
    Expeditors International of Washington Inc EXPD US     Q1 2013 0.393
    Rovi Corp ROVI US     Q1 2013 0.458
    IPG Photonics Corp IPGP US     Q1 2013 0.7
    Sears Holdings Corp SHLD US     Y 2013  
    Validus Holdings Ltd VR US        
    Realogy Holdings Corp RLGY US     Q1 2013 -0.482
    KAR Auction Services Inc KAR US     Q1 2013 0.324
    MSCI Inc MSCI US     Q1 2013 0.542
    General Motors Co GM US     2013  
    Huntington Ingalls Industries Inc HII US     Y 2013
    Stocks: ICE, MRK, CVS, VIAB, CHK, HUM, AMGN, COST, MTW, GNW, TE, CVG, INT, PEP, GPRE, OPEN, SBY, IAC, AJG, CRAY, T, FBHS, DWA, WU, RATE, TRN, SPB, EXC, RDC, CMCSA, TWX
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