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 MORNING CALL 10/23 0 comments
    Oct 23, 2013 1:49 PM | about stocks: LLY, NOC, GD, NDAQ, NFLX, UIS, JPM, APOL, BCR, GLW, AVGO, JNPR, AMGN, FTI, DPS, NLSN, PLD, LO, HCBK, ANTM, TMO, WYN, AEP, MSI, ATI, AIQUF, BA, BMY, CAT, MOLX, NSC, ACE, PL, C, EFX, VAR, LEG, LSI-OLD, SYMC, AVB, AIZ, FFIV

    BARCHART MORNING CALL

    Wednesday, October 23rd, 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 -0.54%) this morning are down -0.54% and European stocks are down -1.07% as global stocks fall back from their recent rally. Asian stocks closed lower: Japan -1.95%, Hong Kong -1.36%, China -1.12%, Taiwan -0.29%, Australia -0.32%, Singapore -0.17%, South Korea -1.14%, India -0.47%. Global stocks retreated on signs the PBOC may be leaning toward tighter monetary policy as borrowing costs rose. China's 7-day repurchase rate surged 47 bp to 4.05% as the PBOC has refrained from selling reverse-repurchase contracts, which adds funds to the financial system, since Oct 17. European stocks were also dragged lower by a 5% drop in Orange SA after France's largest telecommunications company reported decreased earnings. Also, technology stocks took a hit as STMicroelectronics tumbled over 6% after Europe's biggest semiconductor maker reported a net loss. Commodity prices are mixed. Dec crude oil (CLZ13 -1.33%) is down -1.55% at a new 3-1/2 month low on expectations that today's EIA inventory report will show a 3 million bbl increase in crude supplies. Dec gasoline (RBZ13 -0.39%) is down -0.36% at a 2-week low. Dec gold (GCZ13 -0.79%) is down -0.89% and Dec copper (HGZ13 -1.47%) is down -0.91%. Agricultural and livestock prices are mostly higher. The dollar index (DXY00 +0.14%) is up +0.16%. EUR/USD (^EURUSD) is down -0.27% and USD/JPY (^USDJPY) is down -0.83% at a 2-week low on increased demand for the yen as global stocks slide. December T-note prices (ZNZ13 +0.09%) are up +3 ticks as the 10-year T-note yield slipped to a 3-month low of 2.48% on carry-over support from Tuesday's weaker-than-expected Sep payrolls report that bolstered the outlook for the Fed to maintain QE3.

    The minutes of the Oct 9-10 BOE meeting showed that members voted unanimously to keep policy unchanged as economic data pointed to a "robust" recovery. The minutes stated that "The news on the month had continued to suggest a robust recovery in activity," with confidence rising and surveys pointing to growth of about 2% over the second half of the year. "Market rates had fallen back over the month and output appeared to be expanding at least as fast as expected" in August. "All members therefore agreed that there was currently little case for increasing the degree of monetary stimulus further."

    U.S. STOCK PREVIEW
    Today's Aug FHFA house price index is expected to show another strong increase of +0.8% m/m, adding to July's +1.0% m/m increase to a new 5-year high of 205.5. There are 39 of the S&P 500 companies that report earnings today with notable reports including WellPoint, Eli Lilly, AEP, Northrop Grumman, General Dynamics, Motorola Solutions, Nasdaq, Boeing, Bristol-Myers Squibb, Caterpillar, AT&T, and Symantec. Equity conferences this week include: 4th Annual Manufacturing Strategies on Tue-Wed, Oil Council 2013 North America Assembly on Tue-Wed.

    OVERNIGHT U.S. STOCK MOVERS

    Eli Lilly (LLY +1.01%) reported Q3 EPS of $1.11, better than consensus of $1.04.

    Northrop Grumman (NOC +1.26%) reported Q3 EPS of $2.14, stronger than consensus of $1.82.

    General Dynamics (GD +0.18%) reported Q3 EPS of $1.84, well ahead of consensus of $1.68.

    NASDAQ OMX Group (NDAQ -0.33%) reported Q3 EPS of 66 cents, better than consensus of 62 cents.

    Netflix (NFLX -9.15%) fell over 2% in after-hours trading after billionare investor Carl Icahn reported a sale of 2.99 million shares of Netflix.

    Unisys (UIS +1.75%) reported Q3 adjusted EPS of 25 cents, weaker than consensus of 40 cents.

    Reuters reported that JPMorgan Chase's (JPM -1.20%) $13 billion settlement with the U.S. could cost the bank closer to $9 billion, as most of the deal is expected to be tax deductible.

    Apollo Group (APOL +0.10%) jumped over 12% in after-hours tradng after it reported Q4 EPS ex-items of 55 cents, more than double consensus of 25 cents.

    C.R. Bard (BCR +0.67%) reported Q3 EPS of $1.50, well ahead of consensus of $1.40.

    Corning (GLW +1.72%) soared over 20% in pre-market trading after it reported preliminary Q3 EPS of 33 cents, better than consensus of 32 cents, and said it approved a $2 billion stock buyback and agreed to purchase full ownership of Samsung Electronics' 43% stake in Samsung Corning Precision Materials Co., which makes glass for liquid crystal displays in South Korea.

    Broadcom (BRCM -0.66%) fell over 6% in after-hours trading after it reported Q3 adjusted EPS of 76 cents, better than consensus of 69 cents, but then announced it will cut 1,150 jobs as part of a restructuring,

    Juniper (JNPR -2.35%) reported preliminary Q3 EPS of 33 cents, better than consensus of 31 cents.

    Amgen (AMGN +2.26%) reported Q3 EPS of $1.94, stronger than consensus of $1.77, and then raised guidance on fiscal 2013 EPS to $7.35 to $7.45, better than consensus of $7.32.

    FMC Technologies (FTI -0.45%) reported Q3 EPS of 49 cents, well below consensus of 59 cents.

    MARKET COMMENTS

    Dec E-mini S&Ps (ESZ13 -0.54%) this morning are down -9.50 points (-0.54%). The S&P 500 index on Tuesday surged to yet another record high and closed higher. Stocks rallied on bullish factors that included (1) the +148,000 increase in Sep non-farm payrolls, less than expectations of +180,000, which nearly assures that the Fed will not taper QE3 until at least next year, (2) the +0.6% increase in Aug construction spending, better than expectations of +0.4%, and (3) strong Q3 earnings results thus far as 73% of the 131 S&P 500 companies that have released earnings have beaten estimates. Closes: S&P 500 +0.57%, Dow Jones +0.49%, Nasdaq 100 +0.17%.

    Dec 10-year T-notes (ZNZ13 +0.09%) this morning are up +3 ticks and the 10-year T-note yield fell below 2.50% for the first time in 3 months. Dec 10-year T-note prices on Tuesday closed higher and the 10-year T-note field fell to a 3-month low of 2.51%. The main bullish factor for T-note prices was the smaller-than-expected increase in Sep non-farm payrolls that bolstered speculation the Fed will maintain its $85 billion a month of bond purchases. Closes: TYZ3 +24, FVZ3 +11.25.

    The dollar index (DXY00 +0.14%) this morning is up +0.128 (+0.16%). EUR/USD (^EURUSD) is down -0.0037 (-0.27%) and USD/JPY (^USDJPY) is down -0.81 (-0.83%) at a 2-week low. The dollar index on Tuesday tumbled to an 8-1/2 month low and closed lower after the smaller-than-expected increase in Sep non-farm payrolls boosted speculation the Fed will refrain from tapering QE3. EUR/USD posted a 1-3/4 year high as prices surged on technical buying after the euro accelerated above 1.37 per dollar. Closes: Dollar index -0.465 (-0.58%), EUR/USD +0.0100 (+0.73%), USD/JPY -0.054 (-0.05%).

    Dec WTI crude oil (CLZ13 -1.33%) this morning is down -$1.52 (-1.55%) at a 3-1/2 month low and Dec gasoline (RBZ13 -0.39%) is down -0.0094 (-0.36%) at a 2-week low. Dec crude oil and gasoline prices on Tuesday erased an early rally and closed lower. Dec crude prices fell to a 3-1/2 month low on bearish factors that included (1) negative carry-over from Monday's EIA inventory report that showed a +4.0 million bbl increase in EIA crude inventories to a 3-1/2 month high, (2) concern about U.S. energy demand after Sep non-farm payrolls rose less than expected, and (3) expectations that Wednesday's EIA inventory data will show crude oil stockpiles rose for a fifth week. Closes: CLZ3 -1.38 (-1.38%), RBZ3 -0.0333 (-1.26%).

    GLOBAL EVENT CALENDAR10/23/2013

    US 0700 ET Weekly MBA mortgage applications, previous +0.3% with purchase sub-index -4.8% and refi sub-index +3.3%.
      0830 ET Sep import prices expected +0.2% m/m and -1.0% y/y, Aug unch m/m and -0.4% y/y.
      0900 ET Aug FHFA house price index purchase-only expected +0.8% m/m, July +1.0% m/m.
      1030 ET EIA Weekly Petroleum Status Report.
    UK 0430 ET Minutes of the Oct 9-10 BOE policy meeting.
    EUR 1000 ET Eurozone Oct consumer confidence expected +0.4 to -14.5, Sep -14.9.
    CHI 2145 ET China Oct HSBC/Markit flash manufacturing PMI expected +0.2 to 50.4, Sep +0.1 to 50.2.

    U.S. STOCK CALENDAR10/23/2013

    Company Name Ticker Time Event Description Period Estimate
    Dr Pepper Snapple Group Inc DPS US Bef-mkt Q3 2013 Earnings Release Q3 2013 0.834
    Nielsen Holdings NV NLSN US Bef-mkt Q3 2013 Earnings Release Q3 2013 0.482
    Prologis Inc PLD US Bef-mkt Q3 2013 Earnings Release Q3 2013 0.412
    Lorillard Inc LO US Bef-mkt Q3 2013 Earnings Release Q3 2013 0.807
    Hudson City Bancorp Inc HCBK US Bef-mkt Q3 2013 Earnings Release Q3 2013 0.082
    WellPoint Inc WLP US 6:00 Q3 2013 Earnings Release Q3 2013 1.818
    Thermo Fisher Scientific Inc TMO US 6:00 Q3 2013 Earnings Release Q3 2013 1.282
    Wyndham Worldwide Corp WYN US 6:30 Q3 2013 Earnings Release Q3 2013 1.362
    Eli Lilly & Co LLY US 6:30 Q3 2013 Earnings Release Q3 2013 1.038
    American Electric Power Co Inc AEP US 6:57 Q3 2013 Earnings Release Q3 2013 1.082
    Motorola Solutions Inc MSI US 7:00 Q3 2013 Earnings Release Q3 2013 1.019
    Northrop Grumman Corp NOC US 7:00 Q3 2013 Earnings Release Q3 2013 1.817
    Allegheny Technologies Inc ATI US 7:00 Q3 2013 Earnings Release Q3 2013 -0.279
    General Dynamics Corp GD US 7:00 Q3 2013 Earnings Release Q3 2013 1.678
    NASDAQ OMX Group Inc/The NDAQ US 7:00 Q3 2013 Earnings Release Q3 2013 0.622
    Airgas Inc ARG US 7:30 Q2 2014 Earnings Release Q2 2014 1.232
    Boeing Co/The BA US 7:30 Q3 2013 Earnings Release Q3 2013 1.515
    Bristol-Myers Squibb Co BMY US 7:30 Q3 2013 Earnings Release Q3 2013 0.442
    Caterpillar Inc CAT US 7:30 Q3 2013 Earnings Release Q3 2013 1.674
    Molex Inc MOLX US 7:30 Q1 2014 Earnings Release Q1 2014 0.373
    Motorola Solutions Inc MSI US 8:00 Q3 2013 Earnings Call Q3 2013  
    Norfolk Southern Corp NSC US 8:00 Q3 2013 Earnings Release Q3 2013 1.388
    NASDAQ OMX Group Inc/The NDAQ US 8:00 Q3 2013 Earnings Call Q3 2013  
    WellPoint Inc WLP US 8:30 Q3 2013 Earnings Call Q3 2013  
    Nielsen Holdings NV NLSN US 8:30 Q3 2013 Earnings Call Q3 2013  
    Allegheny Technologies Inc ATI US 8:30 Q3 2013 Earnings Call Q3 2013  
    Wyndham Worldwide Corp WYN US 8:30 Q3 2013 Earnings Call Q3 2013  
    Thermo Fisher Scientific Inc TMO US 8:30 Q3 2013 Earnings Call Q3 2013  
    ACE Ltd ACE US 8:30 Q3 2013 Earnings Call Q3 2013  
    Norfolk Southern Corp NSC US 8:45 Q3 2013 Earnings Call Q3 2013  
    American Electric Power Co Inc AEP US 9:00 Q3 2013 Earnings Call Q3 2013  
    Parker Hannifin Corp PH US 9:00 Annual General Meeting Y 2013  
    Lorillard Inc LO US 9:00 Q3 2013 Earnings Call Q3 2013  
    FMC Technologies Inc FTI US 9:00 Q3 2013 Earnings Call Q3 2013  
    General Dynamics Corp GD US 9:00 Q3 2013 Earnings Call Q3 2013  
    Eli Lilly & Co LLY US 9:00 Q3 2013 Earnings Call Q3 2013  
    Molex Inc MOLX US 9:30 Q1 2014 Earnings Call Q1 2014  
    Airgas Inc ARG US 10:00 Q2 2014 Earnings Call Q2 2014  
    Citigroup Inc C US 10:00 Q3 2013 Earnings Call - Fixed Income C3 2013  
    Bristol-Myers Squibb Co BMY US 10:00 Q3 2013 Earnings Call Q3 2013  
    Boeing Co/The BA US 10:30 Q3 2013 Earnings Call Q3 2013  
    Dr Pepper Snapple Group Inc DPS US 11:00 Q3 2013 Earnings Call Q3 2013  
    Caterpillar Inc CAT US 11:00 Q3 2013 Earnings Call Q3 2013  
    Nabors Industries Ltd NBR US 11:00 Q3 2013 Earnings Call Q3 2013  
    Equifax Inc EFX US Aft-mkt Q3 2013 Earnings Release Q3 2013 0.884
    Varian Medical Systems Inc VAR US Aft-mkt Q4 2013 Earnings Release Q4 2013 1.113
    Leggett & Platt Inc LEG US Aft-mkt Q3 2013 Earnings Release Q3 2013 0.437
    LSI Corp LSI US Aft-mkt Q3 2013 Earnings Release Q3 2013 0.161
    Symantec Corp SYMC US Aft-mkt Q2 2014 Earnings Release Q2 2014 0.437
    AvalonBay Communities Inc AVB US Aft-mkt Q3 2013 Earnings Release Q3 2013 1.175
    Assurant Inc AIZ US Aft-mkt Q3 2013 Earnings Release Q3 2013 1.504
    F5 Networks Inc FFIV US   Q4 2013 Earnings Release Q4 2013 1.187
    Stocks: LLY, NOC, GD, NDAQ, NFLX, UIS, JPM, APOL, BCR, GLW, AVGO, JNPR, AMGN, FTI, DPS, NLSN, PLD, LO, HCBK, ANTM, TMO, WYN, AEP, MSI, ATI, AIQUF, BA, BMY, CAT, MOLX, NSC, ACE, PL, C, EFX, VAR, LEG, LSI-OLD, SYMC, AVB, AIZ, FFIV
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

  • $EXEL - 96% technical buy signals - 16 new highs and up 39.23% in the last month = Relative Strength Index 86.09
    3 days ago
  • $FARM = 100% technical buy signals - 19 new highs and up 19.51% in the last month - Relative Strength Index 82.78%
    6 days ago
  • $WIN - 96% technical buy signals - 16 new highs and up 19.76% in the last month - Relative Strength index 75.56%
    6 days ago
More »

Latest Comments


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.