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.
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|