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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. He earned a BS in Accounting and Business Administration from Berry College; a Juris Doctorate from the Woodrow Wilson School of Law; and attended... More
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  • Barchart Morning Call 7/31 0 comments
    Jul 31, 2013 8:41 AM | about stocks: AMT, ADT, CMCSA, HUM, POL, GNW, CBST, CBOE, CBI, BWLD, AFL, HBI, AMGN, FISV, SYMC, PCG, HSP, EXC, HCBK, WEC, DLPH, NI, OMC, GRMN, HES, SO, IVZ, GAS, MA, PSX, EQR, CA, BXP, OKE, WMB, QEP, ALL, CBS, LRCX, MCHP, MAR, EA, WFM, LNC, MET, MCK, EFX, BMC, LIFE
    Barchart Morning Call 7/31

     

    Barchart Morning Call

    BC - 47 mins ago

     

    • Article
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    OVERNIGHT MARKETS AND NEWS
    September E-mini S&Ps (ESU13 unch) this morning are up +0.07% as the market awaits U.S. data on Q2 GDP and the FOMC policy statement later today. European stocks are up +0.04% and received a boost after German unemployment unexpectedly dropped last month, a sign of economic strength. Asian stocks closed mixed: Japan -1.45%, Hong Kong -0.32%, China +0.17%, Taiwan -0.68%, Australia +0.09%, Singapore-0.72%, South Korea -0.32%, India -0.01%. Chinese stocks eked out a gain after China's ruling Politburo pledged to stabilize growth while pressing on with economic reforms. Commodity prices are mixed. Sep crude oil (CLU13 +0.19%) is up +0.19%. Sep gasoline (RBU13 -1.12%) is down -1.01%, Aug gold (GCQ13 +0.35%) is up +0.60%, and Sep copper (HGU13 +0.94%) is up +0.92%. Agricultural prices are mixed. The dollar index (DXY00 +0.02%) is little change, up +0.03%. EUR/USD (^EURUSD) is down -0.08% and USD/JPY (^USDJPY) is down -0.40% at a 1-month low. September T-note prices (ZNU13 -0.09%) are down -1 tick.
    The Eurozone July CPI estimate climbed +1.6% y/y, right on expectations, while the July core CPI rose at a +1.1% y/y pace, slower than expectations of +1.2% y/y.
    German July unemployment unexpectedly fell -7,000, when expectations were for no change, while the July unemployment rate remained unchanged at 6.8%, right on expectations.
    German Jun retail sales unexpectedly fell -1.5% m/m and -2.8% y/y, weaker than expectations of +0.2% m/m and +0.5% y/y, the biggest decline in 6 months.
    The Japan July Markit/JMMA manufacturing PMI fell -1.6 from Jun to 50.7, its slowest pace of expansion in 4 months.
    Japan Jun labor cash earnings rose +0.1% y/y, weaker than expectations of +0.2% y/y, while May was revised lower to a decline of -0.1% y/y from the originally reported unch y/y.
    Japan Jun housing starts rose +15.3% y/y to 976,000, slightly weaker than expectations of +16.0% y/y to 982,000.
    The Xinhua News Agency reported that China's Politburo said it will maintain steady second-half expansion amid "extremely complicated domestic and international conditions" and that China will keep a prudent monetary policy and a proactive fiscal stance.

    U.S. STOCK PREVIEW
    Today's July ADP employment report is expected to show an increase of +180,000, which would be mildly below the +188,000 increase seen in June. Today's Q2 GDP report is expected to decelerate to +1.0% (q/q annualized) from +1.8% in Q1. Today's July Chicago purchasing managers index is expected to show a +2.4 point increase to 54.0, recovering somewhat after the -7.1 point plunge to 51.6 seen in July. The FOMC today concludes its 2-day policy meeting. The last conference of the week is today's Keefe, Bruyette & Woods Community Bank Investor Conference.
    There are 33 of the S&P 500 companies that report earnings today. Notable reports today include PG&E (consensus $0.73), Exelon (0.54), Humana (2.47), Comcast (0.63), Hess (1.40), Southern Company (0.68), Mastercard (6.29), Phillips 66 (1.81), Williams Companies (0.14), Allstate (0.98), CBS (0.72), Marriott (0.57), Murphy Oil Company (1.54), Whole Foods (0.37), Lincoln National (1.15), MetLife (1.33).

    OVERNIGHT U.S. STOCK MOVERS
    American Tower (AMT +0.35%) reported Q2 EPS of 92 cents, better than consensus of 91 cents.
    ADT Corp. (ADT +2.26%) reported Q3 EPS of 53 cents, stronger than consensus of 43 cents.
    Comcast (CMCSA -1.59%) reported Q2 EPS of 65 cents, better than expectations of 63 cents.
    Humana (HUM -1.52%) reported Q2 EPS of $2.63, well ahead of consensus of $2.47.
    PolyOne (POL +2.12%) reported Q2 adjusted EPS of 37 cents, better than consensus of 35 cents.
    Genworth (GNW +0.60%) reported Q2 adjusted EPS of 27 cents, lower than consensus of 29 cents.
    Cubist (CBST +1.86%) said it will acquire Optimer (OPTR -1.12%) for $10.75 per share in cash or $535 million on a fully diluted basis, and Cubist said it will also acquire Trius Therapeutics (TSRX +2.27%) for $13.50 per share in cash or $707 million on a fully diluted basis.
    CBOE Holdings (CBOE +0.53%) raised its quarterly dividend to 18 cents per share from 15 cents per share.
    Chicago Bridge & Iron (CBI +0.42%) reported Q2 EPS with items 98 cents, below consensus of $1.03.
    Buffalo Wild Wings (BWLD -0.71%) reported Q2 EPS of 88 cents, stronger than consensus of 79 cents.
    Aflac (AFL -0.26%) reported Q2 adjusted EPS of $1.62, well ahead of consensus of $1.51, and said it intends to repurchase $600 million of its own stock for 2013.
    Hanesbrands (HBI -0.55%) reported Q2 EPS of $1.19, stronger than consensus of 94 cents, and raised its 2013 EPS outlook to $3.50-$3.65 from $3.25-$3.40.
    Amgen (AMGN +1.67%) reported Q2 EPS of $1.89, well ahead of consensus of $1.74, and said it sees fiscal 2013 EPS at the upper end of $7.30-$7.45, better than consensus of $7.29.
    Fiserv (FISV +0.12%) reported Q2 adjusted EPS of $1.50, better than consensus of $1.44.
    Symantec (SYMC +1.16%) rose nearly 4% in pre-market trading after it reported Q1 EPS of 44 cents, stronger than consensus of 36 cents.

    MARKET COMMENTS
    Sep E-mini S&Ps (ESU13 unch) this morning are up +1.25 points (+0.07%) . The S&P 500 index on Tuesday closed slightly higher. Gains were limited by concern that Wednesday's FOMC statement may be on the hawkish side and by the -1.8 point decline to 80.3 in the U.S. July consumer confidence index, which was weaker than expectations of -0.1 to 81.3. Stocks gained support from positive Q2 stock earnings results as 73% of the 302 S&P 500 companies that have reported earnings results so far have beaten expectations. Closes: S&P 500 +0.04%, Dow Jones -0.01%, Nasdaq 100 +0.53%.
    Sep 10-year T-notes (ZNU13 -0.09%) this morning are down -1 tick. Sep 10-year T-note prices on Tuesday closed lower as the market awaited Wednesday's FOMC statement. T-notes found support from the weaker-than-expected U.S. July consumer confidence index. Closes: TYU3 -3.5, FVU3 -2.25.
    The dollar index (DXY00 +0.02%) this morning is up +0.026 (+0.03%). EUR/USD (^EURUSD) is down -0.0011 (-0.08%) and USD/JPY (^USDJPY) is down -0.39 (-0.40%) at a 1-month low. The dollar index on Tuesday closed higher. USD/JPY was boosted by a weaker yen on the-3.3% m/m decline in Japanese Jun industrial production, which was the biggest monthly decline in 2-1/4 years. EUR/USD climbed to a 5-week high after Eurozone July economic confidence rose +1.2 to 92.5, a 1-1/4 year high. Dollar strength was curbed by the decline in U.S. July consumer confidence. Closes: Dollar index +0.166 (+0.20%), EUR/USD +0.0002 (+0.01%), USD/JPY +0.075 (+0.07%).
    Sep WTI crude oil (CLU13 +0.19%) this morning is up +20 cents (+0.19%) and Sep gasoline (RBU13 -1.12%) is down -0.0300 (-1.01%). Sep crude oil and gasoline prices on Tuesday closed lower with Sep crude falling to a 3-week low. A stronger dollar and weaker-than-expected U.S. July consumer confidence undercut energy prices, along with concern that Wednesday's data on U.S. Q2 GDP will show a slowdown in economic growth. Closes: CLU3 -1.47 (-1.41%), RBU3 -0.0030 (-0.10%).

    GLOBAL EVENT CALENDAR07/31/2013

    US0700 ETWeekly MBA mortgage applications, previous -1.2% with purchase sub-index -2.1% and refi sub-index -0.7%.
     0815 ETJuly ADP employment change expected +180,000, Jun +188,000.
     0830 ETQ2 employment cost index expected +0.4%, Q1 +0.3%.
     0830 ETQ2 GDP expected +1.0% (q/q annualized), Q1 +1.8%. Q2 personal consumption expected +1.6%, Q1 +2.6%. Q2 GDP price index expected +1.0%, Q1 +1.2%. Q2 core PCE expected +1.1%, Q1 +1.3%. Annual GDP revisions.
     0900 ETTreasury releases its quarterly refunding statement outlining its funding needs for the next two quarters and announces amounts of 3-year T-notes (previous $32 billion), 10-year T-notes (previous $21 billion), and 30-year T-bonds (previous $13 billion) to be auctioned Aug 6-8 in the quarterly refunding.
     0900 ETJuly Milwaukee ISM manufacturing index expected 52.0, June 51.6.
     0945 ETJuly Chicago purchasing managers index expected +2.4 to 54.0, Jun -7.1 to 51.6.
     1030 ETEIA Weekly Petroleum Status Report.
     1400 ETFOMC interest rate decision.
    JPN0100 ETJapan Jun housing starts expected 982,000 (+16.0% y/y), May 1.027 million (+14.5% y/y).
     0100 ETJapan Jun construction orders, May +26.0% y/y.
    GER0200 ETGerman Jun retail sales expected +0.2% m/m and +0.5% y/y, May +0.7% m/m and +0.4% y/y.
     0355 ETGerman July unemployment change expected unchanged, Jun -12,000. July unemployment rate expected 6.8%, Jun 6.8%.
    EUR0500 ETEurozone July CPI expected +1.6% y/y, Jun +1.6% y/y. July core CPI, Jun +1.2% y/y.
     0500 ETEurozone Jun unemployment rate expected 12.2%, May 12.2%.
    CHI2100 ETChina July manufacturing PMI expected -0.3 to 49.8, Jun -0.7 to 50.1.
     2145 ETChina final-July HSBC manufacturing PMI expected unrevised from early-July flash of 47.7 (-0.5 from 48.2 in June).

    U.S. STOCK CALENDAR07/31/2013

    Company NameSymbolTimeEvent DescriptionPeriodEPS Est (US$)
    PG&E CorpPCG USBef-mktQ2 2013 Earnings ReleaseQ2 20130.73
    Hospira IncHSP USBef-mktQ2 2013 Earnings ReleaseQ2 20130.511
    Exelon CorpEXC USBef-mktQ2 2013 Earnings ReleaseQ2 20130.544
    Hudson City Bancorp IncHCBK USBef-mktQ2 2013 Earnings ReleaseQ2 20130.101
    Wisconsin Energy CorpWEC USBef-mktQ2 2013 Earnings ReleaseQ2 20130.466
    Delphi Automotive PLCDLPH USBef-mktQ2 2013 Earnings ReleaseQ2 20131.137
    ADT Corp/TheADT US6:00Q3 2013 Earnings ReleaseQ3 20130.434
    Humana IncHUM US6:00Q2 2013 Earnings ReleaseQ2 20132.469
    NiSource IncNI US6:30Q2 2013 Earnings ReleaseQ2 20130.23
    Multiple CompaniesOMC US7:00Business Update Call  
    American Tower CorpAMT US7:00Q2 2013 Earnings ReleaseQ2 20130.905
    Comcast CorpCMCSA US7:00Q2 2013 Earnings ReleaseQ2 20130.63
    Garmin LtdGRMN US7:00Q2 2013 Earnings ReleaseQ2 20130.651
    Hess CorpHES US7:30Q2 2013 Earnings ReleaseQ2 20131.402
    Southern Co/TheSO US7:30Q2 2013 Earnings ReleaseQ2 20130.679
    Invesco LtdIVZ US7:30Q2 2013 Earnings ReleaseQ2 20130.514
    AGL Resources IncGAS US8:00Q2 2013 Earnings ReleaseQ2 20130.266
    Mastercard IncMA US8:00Q2 2013 Earnings ReleaseQ2 20136.291
    Genworth Financial IncGNW US8:00Q2 2013 Earnings CallQ2 2013 
    Phillips 66PSX US8:00Q2 2013 Earnings ReleaseQ2 20131.811
    ADT Corp/TheADT US8:30Q3 2013 Earnings CallQ3 2013 
    American Tower CorpAMT US8:30Q2 2013 Earnings CallQ2 2013 
    Comcast CorpCMCSA US8:30Q2 2013 Earnings CallQ2 2013 
    Aflac IncAFL US9:00Q2 2013 Earnings CallQ2 2013 
    Allergan Inc/United StatesAGN US9:00Q2 2013 Earnings ReleaseQ2 20131.197
    NiSource IncNI US9:00Q2 2013 Earnings CallQ2 2013 
    Hospira IncHSP US9:00Q2 2013 Earnings CallQ2 2013 
    AGL Resources IncGAS US9:00Q2 2013 Earnings CallQ2 2013 
    Invesco LtdIVZ US9:00Q2 2013 Earnings CallQ2 2013 
    Mastercard IncMA US9:00Q2 2013 Earnings CallQ2 2013 
    Humana IncHUM US9:00Q2 2013 Earnings CallQ2 2013 
    Equity ResidentialEQR US10:00Q2 2013 Earnings CallQ2 2013 
    Hess CorpHES US10:00Q2 2013 Earnings CallQ2 2013 
    CA IncCA US10:00Annual General MeetingY 2013 
    Boston Properties IncBXP US10:00Q2 2013 Earnings CallQ2 2013 
    Kimco Realty CorpKIM US10:00Q2 2013 Earnings CallQ2 2013 
    Delphi Automotive PLCDLPH US10:00Q2 2013 Earnings CallQ2 2013 
    Garmin LtdGRMN US10:30Q2 2013 Earnings CallQ2 2013 
    Allergan Inc/United StatesAGN US11:00Q2 2013 Earnings CallQ2 2013 
    ONEOK IncOKE US11:00Q2 2013 Earnings CallQ2 2013 
    PG&E CorpPCG US11:00Q2 2013 Earnings CallQ2 2013 
    Exelon CorpEXC US11:00Q2 2013 Earnings CallQ2 2013 
    Phillips 66PSX US11:00Q2 2013 Earnings CallQ2 2013 
    Southern Co/TheSO US13:00Q2 2013 Earnings CallQ2 2013 
    Wisconsin Energy CorpWEC US14:00Q2 2013 Earnings CallQ2 2013 
    Williams Cos Inc/TheWMB US16:01Q2 2013 Earnings ReleaseQ2 20130.143
    QEP Resources IncQEP US16:05Q2 2013 Earnings ReleaseQ2 20130.352
    Allstate Corp/TheALL US16:05Q2 2013 Earnings ReleaseQ2 20130.982
    CBS CorpCBS US16:15Q2 2013 Earnings ReleaseQ2 20130.72
    CBS CorpCBS US16:30Q2 2013 Earnings CallQ2 2013 
    Lam Research CorpLRCX US17:00Q4 2013 Earnings CallQ4 2013 
    Microchip Technology IncMCHP US17:00Q1 2014 Earnings CallQ1 2014 
    Marriott International Inc/DEMAR US17:00Q2 2013 Earnings ReleaseQ2 20130.569
    Electronic Arts IncEA US17:00Annual General MeetingY 2013 
    Whole Foods Market IncWFM US17:00Q3 2013 Earnings CallQ3 2013 
    Lam Research CorpLRCX USAft-mktQ4 2013 Earnings ReleaseQ4 20130.713
    Murphy Oil CorpMUR USAft-mktQ2 2013 Earnings ReleaseQ2 20131.535
    Pioneer Natural Resources CoPXD USAft-mktQ2 2013 Earnings ReleaseQ2 20131.111
    Microchip Technology IncMCHP USAft-mktQ1 2014 Earnings ReleaseQ1 20140.538
    Whole Foods Market IncWFM USAft-mktQ3 2013 Earnings ReleaseQ3 20130.37
    Lincoln National CorpLNC USAft-mktQ2 2013 Earnings ReleaseQ2 20131.148
    MetLife IncMET USAft-mktQ2 2013 Earnings ReleaseQ2 20131.329
    McKesson CorpMCK US Annual General Meeting  
    Equifax IncEFX US Investor MeetingY 2013 
    BMC Software IncBMC US Q1 2014 Earnings ReleaseQ1 20140.786
    Life Technologies CorpLIFE US Q2 2013 Earnings ReleaseQ2 20130.959

    Stocks: AMT, ADT, CMCSA, HUM, POL, GNW, CBST, CBOE, CBI, BWLD, AFL, HBI, AMGN, FISV, SYMC, PCG, HSP, EXC, HCBK, WEC, DLPH, NI, OMC, GRMN, HES, SO, IVZ, GAS, MA, PSX, EQR, CA, BXP, OKE, WMB, QEP, ALL, CBS, LRCX, MCHP, MAR, EA, WFM, LNC, MET, MCK, EFX, BMC, LIFE
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