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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 10/30 0 comments
    Oct 30, 2013 12:07 PM | about stocks: GM, CMCSA, EXC, GRMN, FB, GNW, TTWO, FLEX, CBI, EA, GILD, EIX, FISV, PCG, BWA, PX, GLW, TEL, AMT, WEC, HES, ADP, PEG, SO, SEE, GAS, RRC, JBL, KR, KIM, MAT, TGT, EXPE, ALL, CSC, V, MCHP, MAR, PKI, SBUX, VIAV, XL, KHC, MUR, OI, LNC, MET, EQR, STX

    BARCHART MORNING CALL

    Wednesday, October 30th, 2013View Older Reports

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    OVERNIGHT MARKETS AND NEWS

    December E-mini S&Ps (ESZ13 +0.24%) this morning are up +0.27% at a record high and European stocks are up +0.52%. Asian stocks closed higher: Japan +1.23%, Hong Kong +2.00%, China +1.49%, Taiwan +0.52%, Australia +0.28%, Singapore +0.67%, South Korea +0.43%, India +0.50%. Stocks are higher worldwide on speculation the Fed will continue its stimulus measures at the conclusion of the 2-day FOMC meeting later today. Expectations are for no change in the Fed's $85 billion monthly purchases of Treasuries and mortgage-backed securities. European stocks received a boost after Eurozone Oct economic confidence rose more-than-expected to a 2-year high. Chinese stocks closed higher despite an increase in China's 7-day repurchase rate, which rose by +38 bp to a 3-3/4 month high of 5.42%. Commodity prices are mostly higher. Dec crude oil (CLZ13 -1.01%) is down -0.69% after weekly API inventories, released late yesterday afternoon, showed crude stockpiles climbed last week by +5.9 million barrels. Dec gasoline (RBZ13 +0.29%) is up +0.48%. Dec gold (GCZ13 +0.37%) is up +0.33% and Dec copper (HGZ13 +1.02%) is up +1.10%. Agricultural and livestock prices are mostly higher. The dollar index (DXY00 -0.08%) is down -0.06%. EUR/USD (^EURUSD) is up +0.11% and USD/JPY (^USDJPY) is up +0.07%. December T-note prices (ZNZ13 +0.05%) are up +3.5 ticks.

    The Eurozone Oct business climate indicator rose +0.18 to -0.01, more than expectations of +0.01 to -0.19, and the highest in 2-years, and the Oct economic confidence rose +0.9 to 97.8, better than expectations of +0.3 to 97.2 and also the highest in 2-years.

    German Oct unemployment rose 2,000, more than expectations for no change, while the Oct unemployment rate remained unch at 6.9%, right on expectations.

    The UK Oct Lloyds business barometer rose +6 from Sep to 63, the highest since the data series began in 2002.

    Japan Sep industrial production rose +1.5% m/m and +5.4% y/y, weaker than expectations of +1.8% m/m and +5.5% y/y.

    Japan Sep vehicle production climbed +13.0% y/y, the first increase in 13 months.

    U.S. STOCK PREVIEW

    The 2-day FOMC meeting concludes today and the market is not expecting the FOMC to announce QE3 tapering. Today's Oct ADP employment report is expected to show a weak increase of +150,000, slipping from September's report of +166,000. Today's Sep CPI report is expected to ease to +1.2% y/y from +1.5% in August. Meanwhile, the Sep core CPI is expected to be unchanged from August at +1.8% y/y. The Treasury today will sell $29 billion of 7-year T-notes, concluding this week's $97 billion T-note auction package. There are 35 of the S&P 500 companies that report earnings today with notable reports including PG&E, BorgWarner, Comcast, Garmin, Hess, ADP, The Southern Company, GM, Phillips 66, Kraft, Expedia, Allstate, Marriott, Visa, Starbucks, Williams Companies, MetLife. Equity conferences during the remainder of this week include The Buttonwood Gathering 2013 on Tue/Wed, Hart Energy Crude In Motion Conference on Wed, The 7th ICIS European Gas Conference on Wed, 7th Toronto Global Forum on Wed-Thu, and SelectUSA 2013 Investment Summit on Thu.

    OVERNIGHT U.S. STOCK MOVERS

    General Motors (GM +0.73%) reported Q3 EPS of 96 cents, better than consenus of 94 cents.

    Comcast (CMCSA -1.08%) reported Q3 EPS of 65 cents, better than consensus of 61 cents.

    Exelon (EXC -0.07%) reported Q3 EPS of 78 cents, stronger than consensus of 67 cents.

    Garmin Ltd (GRMN +0.56%) reported Q3 EPS of 69 cents, well ahead of consensus of 59 cents.

    Facebook (FB -1.65%) was upgraded to 'Buy' from 'Neutral' at BTIG with a price target of $68 a share.

    Genworth (GNW +1.32%) reported Q3 EPS of 24 cents, lower than consensus of 25 cents.

    Take-Two (TTWO +1.53%) reported Q2 adjusted EPS of $2.49, well ahead of consensus of $1.72, and then raised guidance on fiscal 2014 to $3.50-$3.75, well ahead of consensus of $2.80. The company said the largest contributor to Q2 earnings were sales of Grand Theft Auto V which has shattered entertainment industry records and sold nearly 29 million units to date.

    Flextronics (FLEX -1.45%) lowered guidance on Q3 EPS to 21 cents-23 cents, weaker than consensus of 25 cents.

    Chicago Bridge & Iron (CBI unch) reported Q3 EPS with items of $1.08, below consensus of $1.10.

    Electronic Arts (EA -2.82%) reported Q2 adjusted EPS of 33 cents, nearly three times consensus of 12 cents.

    Gilead (GILD +1.12%) reported Q3 adjusted EPS of 52 cents, better than consensus of 48 cents.

    Edison International (EIX -0.22%) reported Q3 EPS of $1.42, well ahead of consensus of $1.23, and then raised guidance on fiscal 2013 EPS view to $3.60-$3.70 from $3.25-$3.45, bette rthan consensus of $3.36.

    Fiserv (FISV -0.02%) reported Q3 EPS of $1.56, better than consensus of $1.51.

    MARKET COMMENTS

    Dec E-mini S&Ps (ESZ13 +0.24%) this morning are up +4.75 points (+0.27%) at a fresh all-time high. The S&P 500 index on Tuesday posted another record high and closed higher on speculation that the weaker-than-expected U.S. Sep retail sales and Oct consumer confidence reports will keep the Fed from tapering QE3. The U.S. Sep retail sales report of -0.1% m/m and +0.4% ex-autos was slightly weaker than unch m/m and +0.4% ex-autos, while U.S. Oct consumer confidence (Conference Board) fell -9.0 to 71.2, a bigger decline than expectations of -4.7 to 75.0 and the lowest level in 6 months. Closes: S&P 500 +0.56%, Dow Jones +0.72%, Nasdaq 100 +0.27%.

    Dec 10-year T-notes (ZNZ13 +0.05%) this morning are up +3.5 ticks. Dec 10-year T-note prices on Tuesday closed higher on speculation that the weaker-than-expected U.S. Sep retail sales and Oct consumer confidence reports will prompt the Fed to maintain its $85 billion a month bond-buying program. Gains in T-notes were limited after the Aug S&P/CaseShiller composite-20 home price index rose +12.82% y/y, higher than expectations of +12.50% y/y and the biggest annual gain in 7-1/2 years. Closes: TYZ3 +5.0, FVZ3 +2.25.

    The dollar index (DXY00 -0.08%) this morning is down -0.046 (-0.06%). EUR/USD (^EURUSD) is up +0.0015 (+0.11%). USD/JPY (^USDJPY) is up +0.07 (+0.07%). The dollar index on Tuesday closed higher on speculation the Fed will refrain from additional stimulus measures following its Tue/Wed FOMC meeting. Losses in EUR/USD were limited after hawkish comments from ECB Governing Council member Nowotny who said it's "unlikely" the ECB will cut interest rates further. Closes: Dollar index +0.361 (+0.46%), EUR/USD -0.00398 (-0.29%), USD/JPY +0.52 (+0.53%).

    Dec WTI crude oil (CLZ13 -1.01%) this morning is down -68 cents (-0.69%) and Dec gasoline (RBZ13 +0.29%) is up +0.0125 (+0.48%). Dec crude oil and gasoline prices on Tuesday closed lower on strength in the dollar along with expectations that weekly EIA crude inventories on Wednesday will climb for a sixth consecutive week. Closes: CLZ3 -0.48 (-0.49%), RBZ3 -0.0186 (-0.71%).

    GLOBAL EVENT CALENDAR10/30/2013

    US 0700 ET Weekly MBA mortgage applications, previous -0.6% with purchase sub-index +0.7% and refi sub-index-1.3%.
      0815 ET Oct ADP employment change expected +150,000, Sep +166,000.
      0830 ET Sep CPI expected +0.2% m/m and +1.2% y/y, Aug +0.1% m/m and +1.5% y/y. Sep CPI ex food & energy expected +0.2% m/m and +1.8% y/y, Aug +0.1% m/m and +1.8% y/y.
      1030 ET EIA Weekly Petroleum Status Report.
      1300 ET Treasury auctions $29 billion of 7-year T-notes.
      1400 ET FOMC policy announcement. QE3 expected unchanged at $85 billion per month ($40 billion of MBS and $45 billion of Treasury securities).
    JPN 0000 ET Japan Sep vehicle production, Aug -7.6% y/y.
      1915 ET Japan Oct Markit/JMMA manufacturing PMI, Sep 52.5.
      2130 ET Japan Sep labor cash earnings expected -0.4% y/y, Aug -0.9% y/y.
    GER 0455 ET German Oct unemployment change expected unch, Sep +25,000. Oct unemployment rate expected unch at 6.9%, Sep 6.9%.
      0900 ET German Oct CPI (EU harmonized) expected unch m/m and +1.5% y/y, Sep unch m/m and +1.6% y/y.
    UK 0530 ET UK Oct Lloyd business barometer, Sep 57.
      2005 ET UK Oct GfK consumer confidence expected +2 to -8, Sep -10.
    EUR 0600 ET Eurozone Oct business climate indicator expected +0.01 to -0.19, Sep -0.20. Oct economic confidence expected +0.3 to 97.2, Sep 96.9.
      0600 ET Revised Eurozone Oct consumer confidence expected no change at -14.5.

    U.S. STOCK CALENDAR10/30/2013

    Company Name Ticker Time Event Description Period Estimate
    PG&E Corp PCG US Bef-mkt Q3 2013 Earnings Release Q3 2013 0.781
    BorgWarner Inc BWA US Bef-mkt Q3 2013 Earnings Release Q3 2013 1.339
    Exelon Corp EXC US Bef-mkt Q3 2013 Earnings Release Q3 2013 0.665
    Praxair Inc PX US Bef-mkt Q3 2013 Earnings Release Q3 2013 1.514
    Corning Inc GLW US Bef-mkt Q3 2013 Earnings Release Q3 2013 0.32
    TE Connectivity Ltd TEL US 6:00 Q4 2013 Earnings Release Q4 2013 0.902
    American Tower Corp AMT US 7:00 Q3 2013 Earnings Release Q3 2013 0.908
    Wisconsin Energy Corp WEC US 7:00 Q3 2013 Earnings Release Q3 2013 0.586
    Comcast Corp CMCSA US 7:00 Q3 2013 Earnings Release Q3 2013 0.609
    Garmin Ltd GRMN US 7:00 Q3 2013 Earnings Release Q3 2013 0.591
    Hess Corp HES US 7:30 Q3 2013 Earnings Release Q3 2013 1.444
    Automatic Data Processing Inc ADP US 7:30 Q1 2014 Earnings Release Q1 2014 0.658
    Public Service Enterprise Group Inc PEG US 7:30 Q3 2013 Earnings Release Q3 2013 0.757
    Southern Co/The SO US 7:30 Q3 2013 Earnings Release Q3 2013 1.111
    Sealed Air Corp SEE US 7:30 Q3 2013 Earnings Release Q3 2013 0.334
    General Motors Co GM US 7:30 Q3 2013 Earnings Release Q3 2013 0.942
    AGL Resources Inc GAS US 8:00 Q3 2013 Earnings Release Q3 2013 0.145
    Genworth Financial Inc GNW US 8:00 Q3 2013 Earnings Call Q3 2013  
    Phillips 66 PSX US 8:00 Q3 2013 Earnings Release Q3 2013 0.934
    Automatic Data Processing Inc ADP US 8:30 Q1 2014 Earnings Call Q1 2014  
    Corning Inc GLW US 8:30 Q3 2013 Earnings Call Q3 2013  
    American Tower Corp AMT US 8:30 Q3 2013 Earnings Call Q3 2013  
    TE Connectivity Ltd TEL US 8:30 Q4 2013 Earnings Call Q4 2013  
    Comcast Corp CMCSA US 8:30 Q3 2013 Earnings Call Q3 2013  
    Aflac Inc AFL US 9:00 Q3 2013 Earnings Call Q3 2013  
    AGL Resources Inc GAS US 9:00 Q3 2013 Earnings Call Q3 2013  
    Ameriprise Financial Inc AMP US 9:00 Q3 2013 Earnings Call Q3 2013  
    Range Resources Corp RRC US 9:00 Q3 2013 Earnings Call Q3 2013  
    BorgWarner Inc BWA US 9:30 Q3 2013 Earnings Call Q3 2013  
    Jabil Circuit Inc JBL US 9:30 Analyst Meeting Y 2013  
    Kroger Co/The KR US 9:30 Investor Meeting Y 2013  
    Hess Corp HES US 10:00 Q3 2013 Earnings Call Q3 2013  
    Exelon Corp EXC US 10:00 Q3 2013 Earnings Call Q3 2013  
    Sealed Air Corp SEE US 10:00 Q3 2013 Earnings Call Q3 2013  
    Boston Properties Inc BXP US 10:00 Q3 2013 Earnings Call Q3 2013  
    General Motors Co GM US 10:00 Q3 2013 Earnings Call Q3 2013  
    Kimco Realty Corp KIM US 10:00 Q3 2013 Earnings Call Q3 2013  
    Mattel Inc MAT US 10:00 Analyst Meeting Y 2013  
    Garmin Ltd GRMN US 10:30 Q3 2013 Earnings Call Q3 2013  
    Praxair Inc PX US 11:00 Q3 2013 Earnings Call Q3 2013  
    Public Service Enterprise Group Inc PEG US 11:00 Q3 2013 Earnings Call Q3 2013  
    Phillips 66 PSX US 11:00 Q3 2013 Earnings Call Q3 2013  
    PG&E Corp PCG US 12:00 Q3 2013 Earnings Call Q3 2013  
    Southern Co/The SO US 13:00 Q3 2013 Earnings Call Q3 2013  
    Target Corp TGT US 13:00 Financial Community Meeting Y 2013  
    Wisconsin Energy Corp WEC US 14:00 Q3 2013 Earnings Call Q3 2013  
    Kraft Foods Group Inc KRFT US 16:00 Q3 2013 Earnings Release Q3 2013 0.696
    Expedia Inc EXPE US 16:00 Q3 2013 Earnings Release Q3 2013 1.358
    Allstate Corp/The ALL US 16:05 Q3 2013 Earnings Release Q3 2013 1.443
    Computer Sciences Corp CSC US 16:15 Q2 2014 Earnings Release Q2 2014 0.828
    Expedia Inc EXPE US 16:30 Q3 2013 Earnings Call Q3 2013  
    Visa Inc V US 17:00 Q4 2013 Earnings Call Q4 2013  
    Microchip Technology Inc MCHP US 17:00 Q2 2014 Earnings Call Q2 2014  
    Marriott International Inc/DE MAR US 17:00 Q3 2013 Earnings Release Q3 2013 0.448
    Computer Sciences Corp CSC US 17:00 Q2 2014 Earnings Call Q2 2014  
    PerkinElmer Inc PKI US 17:00 Q3 2013 Earnings Call Q3 2013  
    Starbucks Corp SBUX US 17:00 Q4 2013 Earnings Call Q4 2013  
    JDS Uniphase Corp JDSU US 17:00 Q1 2014 Earnings Call Q1 2014  
    XL Group PLC XL US 17:00 Q3 2013 Earnings Call Q3 2013  
    Kraft Foods Group Inc KRFT US 17:00 Q3 2013 Earnings Call Q3 2013  
    Murphy Oil Corp MUR US Aft-mkt Q3 2013 Earnings Release Q3 2013 1.468
    Owens-Illinois Inc OI US Aft-mkt Q3 2013 Earnings Release Q3 2013 0.768
    Visa Inc V US Aft-mkt Q4 2013 Earnings Release Q4 2013 1.851
    Microchip Technology Inc MCHP US Aft-mkt Q2 2014 Earnings Release Q2 2014 0.597
    PerkinElmer Inc PKI US Aft-mkt Q3 2013 Earnings Release Q3 2013 0.482
    Starbucks Corp SBUX US Aft-mkt Q4 2013 Earnings Release Q4 2013 0.6
    JDS Uniphase Corp JDSU US Aft-mkt Q1 2014 Earnings Release Q1 2014 0.116
    XL Group PLC XL US Aft-mkt Q3 2013 Earnings Release Q3 2013 0.537
    Williams Cos Inc/The WMB US Aft-mkt Q3 2013 Earnings Release Q3 2013 0.142
    Lincoln National Corp LNC US Aft-mkt Q3 2013 Earnings Release Q3 2013 1.222
    MetLife Inc MET US Aft-mkt Q3 2013 Earnings Release Q3 2013 1.36
    Equity Residential EQR US   Q3 2013 Earnings Release Q3 2013 0.728
    Seagate Technology PLC STX US   Annual General Meeting
    Stocks: GM, CMCSA, EXC, GRMN, FB, GNW, TTWO, FLEX, CBI, EA, GILD, EIX, FISV, PCG, BWA, PX, GLW, TEL, AMT, WEC, HES, ADP, PEG, SO, SEE, GAS, RRC, JBL, KR, KIM, MAT, TGT, EXPE, ALL, CSC, V, MCHP, MAR, PKI, SBUX, VIAV, XL, KHC, MUR, OI, LNC, MET, EQR, STX
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