Seeking Alpha

Jim Van Meerten's  Instablog

Jim Van Meerten
Send Message
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
My company:
Marketocracy Capital Management
My blog:
Barchart Portfolio Blogs
  • BARCHART MORING CALL 9/19 0 comments
    Sep 19, 2013 10:21 AM | about stocks: RAD, DIS, FDX, IHS, PIR, CAG, WFC, GD, TSLA, SCS, MLHR, ORCL, CHL, ARCC, ESRX, NKE, MSFT, TECH, TIBX, LSI, CTAS, GHC, JW.A, FB

    BARCHART MORNING CALL

    Thursday, September 19th, 2013View Older Reports

    Everything you need to know about the markets in one free daily newsletter.

    E-mail: Submit


    You will also receive a free subscription to the Barchart family of newsletters.

    OVERNIGHT MARKETS AND NEWS

    December E-mini S&Ps (ESZ13 +0.31%) this morning are up +0.44% at an all-time high and European stocks are up +1.18%. Asian stocks closed higher: Japan +1.18%, Hong Kong +1.67%, China, Taiwan and South Korea closed for holiday, Australia +1.10%, Singapore +1.81%, India +3.43%. Global stock and bond markets rallied after the Fed unexpectedly refrained from reducing the $85 billion pace of its monthly securities buying. Commodity prices are higher. Oct crude oil (CLV13 +0.55%) is up +0.60% and Oct gasoline (RBV13 +0.51%) is up +0.69%. Dec gold (GCZ13 +4.60%) is up +4.39% at a 1-week high and Dec copper (HGZ13 +1.86%) is up +1.86% at a 3-week high. Agricultural prices are stronger and livestock prices are mixed. The dollar index (DXY00 -0.12%) is down -0.12%. EUR/USD (^EURUSD) is up +0.26% at a 7-1/4 month high and USD/JPY (^USDJPY) is up +0.94%. December T-note prices are up +4 ticks.

    Japan's Aug trade balance was in deficit by -960.3 billion yen, smaller than expectations of a -1.113 trillion yen deficit. Aug exports climbed +14.7% y/y, stronger than expectations of +14.5% y/y and the most in 3 years. Aug imports rose +16.0% y/y, weaker than expectations of +18.5% y/y.

    The Japan July all-industry activity index rose +0.5% m/m, better than expectations of +0.3% m/m.

    The Japan July leading index CI was revised up to 107.9 from the previously reported 107.8, and the July coincident index was revised up to 107.7 from the previously reported 106.4.

    UK Aug retail sales ex autos unexpectedly fell -1.0% m/m, weaker than expectations of unch m/m and the biggest decline in 16-months, while Aug retail sales ex autos on an annual basis rose +2.3% y/y, weaker than expectations of +3.2% y/y. Aug retail sales including autos unexpectedly fell -0.9% m/m, weaker than expectations of +0.4% m/m and the biggest drop in 16-months, while Aug retail sales including autos on an annual basis rose +2.1% y/y, weaker than expectations of +3.3% y/y.

    UK Sep CBI trends full volume of total orders rose to 9 from 0 in Aug, stronger than expectations of an increase to 2 and matched its highest level in 18 years. Sep CBI trends selling prices rose to 3 from 0 in Aug, stronger than expectations of 2.

    In an interview published in the Danish newspaper Jyllands-Posten, ECB Council member Asmussen said that ECB interest rates will be low for some time and that "normalization" is not yet on the agenda. He added that he sees a very gradual recovery in the Eurozone the rest of this year and that the pace of the economic recovery will improve next year.

    U.S. STOCK PREVIEW

    Today's weekly initial unemployment claims report is expected to show an increase of +38,000 to 330,000, more than reversing last week's sharp decline of -31,000 to 292,000. Meanwhile, today's continuing claims report is expected to show a +29,000 increase to 2.900 million, reversing part of last week's decline of -73,000 to 2.871 million. Today's Aug existing home sales report is expected to show a -2.6% decline to 5.25 million, giving back part of the +6.5% surge to a 3-3/4 year high of 5.39 million seen in July. Today's Q2 current account balance is expected to narrow to -$97.0 billion from -$106.1 billion in Q1. Today's Sep Philadelphia Fed manufacturing index is expected to show a +1.0 point increase to 10.3, stabilizing after the -10.5 point decline to 9.3 seen in August. The Treasury today will sell $13 billion in 10-year TIPS. There are four of the Russell 1000 companies that report earnings today: IHS (consensus $1.17), ConAgra (0.39), Cintas (0.63), TIBCO (0.22).

    Equity conferences during the remainder of this week include: Credit Suisse Chemical & Ag Science Conference on Tue-Thu, 28th International Aluminum Conference on Wed-Thu, UBS Houston Energy Symposium on Wed-Thu, Credit Suisse Global Mining & Steel Conference on Thu, Mitsubishi UFJ Securities- Industrials Corporate Access Day on Thu.

    OVERNIGHT U.S. STOCK MOVERS

    Rite Aid (RAD +0.27%) reported Q2 EPS of 3 cents, better than consensus of a -4 cent loss.

    Disney (DIS +0.19%) was downgraded to "Equal Weight" from "Overweight" at Morgan Stanley.

    FedEx (FDX +5.03%) was downgraded to "Neutral" from "Buy" at Goldman.

    IHS Inc. (IHS +0.84%) reported Q3 adjusted EPS of $1.27, better than consensus of $1.18.

    Pier 1 Imports (PIR +0.64%) reported Q2 EPS of 17 cents, lower than consensus of 21 cents.

    ConAgra Foods (CAG +0.69%) reported Q1 EPS of 37 cents, weaker than consensus of 39 cents.

    Bloomberg reports that Wells Fargo (WFC +1.07%) is cutting 1,800 mortgage processing jobs in addition to the 3,000 cuts it announced earlier this quarter.

    General Dynamics (GD +0.28%) was awarded a $187.53 million government contract for conversion of 44 each M1A1 and 40 each M1A2 model vehicles to a M1A2S configuration in support of the Kingdom of Saudi Arabia.

    Deutsche Bank keeps a Buy rating on Tesla (TSLA -0.01%) and raises its price target on the stock to $200 from $160.

    Steelcase (SCS +1.36%) fell over 5% in after-hours trading after ot reported Q2 EPS ex-charge of 24 cents, weaker than consensus of 26 cents.

    Herman Miller (MLHR +0.33%) dropped nearly 3% in after-hours trading after it reported Q1 adjusted EPS of 43 cents, right on consensus, and reported Q1 revenue of $468.1 million, slightly better than consensus of $465.1 million.

    Oracle (ORCL +1.83%) fell over 3% in after-hours trading after it reported Q1 adjusted EPS of 59 cents, better than consensus of 56 cents, but then lowered guidance on Q2 EPS view to 65 cents-70 cents, below consensus of 69 cents.

    MARKET COMMENTS

    Dec E-mini S&Ps (ESZ13 +0.31%) this morning are up +7.50 points (+0.44%) at a record high. The S&P 500 index on Wednesday catapulted up to a record high and closed higher after the Fed unexpectedly refrained from cutting QE3, saying it wants "more evidence" of growth progress before tapering stimulus. On the negative side, the Fed cut its U.S. 2013 GDP estimate to 2.0%-2.3% from June's 2.3%-2.6% and cut its 2014 GDP estimate to 2.9%-3.1% from June's 3.0%-3.5%. Closes: S&P 500 +1.22%, Dow Jones +0.95%, Nasdaq 100 +1.27%.

    Dec 10-year T-notes (ZNZ13 +0.15%) this morning are up +4 ticks. Dec 10-year T-note prices on Wednesday closed sharply higher after the Fed unexpectedly maintained the pace of its monthly Treasury purchases. Other positives for T-notes included (1) the Fed's cut in its U.S. GDP estimates for 2013 and 2014, and (2) the weaker-than-expected U.S. Aug housing starts and building permits. Closes: TYZ3 +1-14/32, FVZ3 +28.75.

    The dollar index (DXY00 -0.12%) this morning is down -0.093 (-0.12%). EUR/USD (^EURUSD) is up +0.0035 (+0.26%) and USD/JPY (^USDJPY) is up +0.92 (+0.94%). The dollar index on Wednesday plunged to a 7-month low and closed sharply lower after the Fed unexpectedly refrained from cutting its $85 billion in monthly bond purchases. Another negative for the dollar was the action by the Fed to cut its 2013 and 2014 U.S. GDP estimates. Closes: Dollar index -0.906 (-1.12%), EUR/USD +.01628 (+1.22%), USD/JPY -1.189 (-1.20%).

    Oct WTI crude oil (CLV13 +0.55%) this morning is up +65 cents (+0.60%) and Oct gasoline (RBV13 +0.51%) is up +0.0189 (+0.69%). Oct crude oil and gasoline prices on Wednesday closed sharply higher. Bullish factors included (1) the plunge in the dollar index to a 7-month low after the Fed refrained from cutting QE3, (2) the -4.37 million bbl slide in weekly EIA crude oil inventories to a 17-month low of 355.6 million bbl, and (3) the unexpected drop in weekly EIA gasoline supplies by -1.63 million bbl to a 4-month low of 216 million bbl. Closes: CLV3 +2.65 (+2.51%), RBV3 +0.0810 (+3.04%).

    GLOBAL EVENT CALENDAR09/19/2013

    US0830 ETWeekly initial unemployment claims expected +38,000 to 330,000, previous -31,000 to 292,000. Weekly continuing claims expected +29,000 to 2.900 million, previous -73,000 to 2.871 million.
     0830 ETQ2 current account balance expected -$97.0 billion, Q1 -$106.1 billion.
     0830 ETUSDA weekly Export Sales.
     1000 ETSep Philadelphia Fed manufacturing index expected +1.0 to 10.3, Aug -10.5 to 9.3.
     1000 ETAug existing home sales expected -2.6% to 5.25 million, July +6.5% to 5.39 million.
     1000 ETAug leading indicators expected +0.6% July +0.6%.
     1100 ETTreasury announces amounts of 2-year T-notes (previous $34 billion), 5-year T-notes (previous $35 billion) and 7-year T-notes (previous $29 billion) to be auctioned Sep 24-26.
     1220 ETCleveland Fed President Sandra Pianalto delivers a speech titled Looking for Common Ground and New Solutions in Household and Consumer Finance at the 2013 Policy Summit on Housing, Human Capital and Inequality.
     1300 ETTreasury auctions $13 billion of 10-year TIPS.
    JPN0030 ETJapan July all-industry activity index expected +0.3%, June -0.6% m/m.
    UK0430 ETUK Aug retail sales ex autos expected unch m/m and +3.2% y/y, July +1.1% m/m and +3.1% y/y. Aug retail sales including autos expected +0.4% and +3.3% y/y, July +1.1% m/m and +3.0% y/y.
     0600 ETUK Sep CBI trends of total orders expected 2, Aug 0. Sep CBI trends of avg selling prices expected 2, Aug 0.

    U.S. STOCK CALENDAR09/19/2013

    Company NameTickerTimeEvent DescriptionPeriodEstimate
    IHS IncIHS USBef-mktQ3 2013 Earnings ReleaseQ3 20131.17
    ConAgra Foods IncCAG US7:30Q1 2014 Earnings ReleaseQ1 20140.392
    IHS IncIHS US8:00Q3 2013 Earnings CallQ3 2013 
    Clean Harbors IncCLH US8:30Investor DayY 2013 
    Ares Capital CorpARCC US8:30Investor DayY 2013 
    ConAgra Foods IncCAG US9:30Q1 2014 Earnings CallQ1 2014 
    Express Scripts Holding CoESRX US11:45Economic Club of Canada Presents President, Michael Biskey  
    NIKE IncNKE US13:00Annual General MeetingY 2013 
    Microsoft CorpMSFT US16:00Financial Analyst MeetingY 2013 
    Techne CorpTECH US16:30Strategy Update Call  
    TIBCO Software IncTIBX US16:30Q3 2013 Earnings CallQ3 2013 
    LSI CorpLSI US17:00ITC Decision Due in LSI & Realtek Patent-Infringement Case  
    Cintas CorpCTAS US17:00Q1 2014 Earnings CallQ1 2014 
    Cintas CorpCTAS USAft-mktQ1 2014 Earnings ReleaseQ1 20140.632
    TIBCO Software IncTIBX USAft-mktQ3 2013 Earnings ReleaseQ3 20130.22
    Washington Post Co/TheWPO US Shareholders DayY 2013 
    John Wiley & Sons IncJW/A US Annual General MeetingY 2013 
    Facebook IncFB US Facebook CEO, Mark Zuckerberg, Meet with Republicans in the House 

    Stocks: RAD, DIS, FDX, IHS, PIR, CAG, WFC, GD, TSLA, SCS, MLHR, ORCL, CHL, ARCC, ESRX, NKE, MSFT, TECH, TIBX, LSI, CTAS, GHC, JW.A, FB
Back To Jim Van Meerten's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

  • $INCR 100% Barchart technical buy signals - 10 new highs and up 18.69% in the last month - Relative Strength Index 72.91%
    about 11 hours ago
  • $GTXI - 24% Barchart technical sell signals - 28.93% off its recent high - Relative Strength Index 37.51%
    about 15 hours ago
  • $RVLT 88% Barchart technical sell signals - 57.43% off recent high - Relative Strength Index 35.02%
    about 15 hours ago
More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.