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Jim Van Meerten
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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 11/22 0 comments
    Nov 22, 2013 11:01 AM | about stocks: PETM, DLTR, YUM, MU, GME, PAY, TGT, LMT, ROST, INTC, HES, UPS, MRVL, GPS, SIRO, FL, CYT, Y, DCI, MCRS, LGF

    BARCHART MORNING CALL

    Friday, November 22nd, 2013

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    OVERNIGHT MARKETS AND NEWS

    December E-mini S&Ps (ESZ13 +0.01%) this morning are down -0.03% and European stocks are down -0.04% despite a jump in German Nov business confidence to a 19-month high. Asian stocks closed mixed: Japan +0.10%, Hong Kong +0.49%, China -0.50%, Taiwan +0.21%, Australia +0.90%, Singapore +0.01%, South Korea +0.63%, India -0.06%. Japanese exporters strengthened and pushed the Nikkei Stock Index up to a 7-month high as a slide in the yen to a 4-1/2 month low against the dollar boosted exporters' earnings prospects. Commodity prices are mixed. Jan crude oil (CLF14 -0.25%) is down -0.29%. Jan gasoline (RBF14 -0.05%) is down -0.22%. Dec gold (GCZ13 +0.20%) is down -0.15% and Dec copper (HGZ13 +0.38%) is up +0.36% at a 1-week high after weekly Shanghai copper inventories tumbled to a 1-1/2 month low. Agricultural and livestock prices are mixed. The dollar index (DXY00 -0.36%) is down -0.26%. EUR/USD (^EURUSD) is up +0.25%. USD/JPY (^USDJPY) is up +0.10% at a 4-1/2 month high after BOJ Governor Kuroda said that the yen isn't "excessively weak." December T-note prices (ZNZ13 +0.05%) are up +1 tick.

    The German Nov IFO business climate rose +2.1 to 109.3, a bigger increase than expectations of +0.3 to 107.7 and the highest in 19-months. The Nov IFO current assessment rose +0.9 to 112.2, a bigger increase than expectations of +0.2 to 111.5 and the highest in 17-months, while Nov IFO expectations rose +2.6 to 106.3, better than expectations of +0.4 to 104.0 and the highest in 2-1/2 years.

    German Q3 GDP was left unrevised at +0.3% q/q and +0.6% y/y, although Q3 private consumption was revised down to a +0.1% increase from the originally reported +0.2% and Q3 government spending was revised upward to +0.5% from the previously reported +0.3%. Also, Q3 exports were revised lower to +0.1% and Q3 imports were revised higher to +0.8% from the originally reported +0.6%.

    U.S. STOCK PREVIEW

    Fed Governor Daniel Tarullo today speaks on shadow banking to the Americans for Financial Reform and Economic Policy Institute Conference. There are no U.S. economic reports today. There are 3 of the Russell 1000 companies that report earnings today: PetSmart (consensus $0.86), Sirona Dental Systems (0.80), and Foot Locker (0.66). There are no equity conferences today.

    OVERNIGHT U.S. STOCK MOVERS

    PetSmart (PETM +1.44%) reported Q3 EPS of 88 cents, higher than consensus of 86 cents.

    Dollar Tree (DLTR -4.48%) was upgraded to 'Overweight' from 'Equal Weight' at Barclays.

    Yum! Brands (YUM +3.60%) rose over 1% in pre-market trading after it was upgraded to 'Buy' from 'Hold' at Deutsche Bank.

    Micron (MU +6.33%) was downgraded to 'Neutral' from 'Buy' at BofA/Merril due to valuation.

    GameStop (GME -6.94%) was upgraded to 'Buy' from 'Hold' at Needham.

    VeriFone (PAY +0.83%) was upgraded to 'Buy' from 'Hold' at Jefferies.

    Target (TGT -3.46%) was downgraded to 'Underperform' from 'Neutral' at BofA/Merrill.

    Bloomberg reports that South Korea is likely to buy 40 F-35 fighter jets from Lockheed Martin (LMT +1.08%) .

    Ross Stores (ROST -1.30%) tumbled over 7% in pre-market trading after the company lowered guidance on Q4 EPS to $1.01 from $1.03, below consensus of $1.08.

    Intel (INTC +2.73%) fell 1.5% in after-hours trading after the company said revenue in 2014 will be approximately unchanged from this year.

    Hess Corporation (HES +1.25%) has been awarded a maximum $378.82 million government contract utilizing block purchases for electricity.

    UPS (UPS +1.00%) said it will raise its rates an average net of 4.9% in 2014.

    Marvell (MRVL +3.98%) reported Q3 adjusted EPS of 32 cents, well above consensus of 25 cents.

    Gap (GPS +1.50%) reported Q3 EPS of 72 cents, higher than consensus of 70 cents.

    MARKET COMMENTS

    Dec E-mini S&Ps (ESZ13 +0.01%) this morning are down -0.50 of a point (-0.03%). The S&P 500 index on Thursday closed higher on supportive factors that included (1) the Senate Banking Committee's vote to approve Janet Yellen as the next Fed Chair and the move by Senate Democrats to end appointee filibusters, which guarantees smooth sailing for Ms. Yellen's confirmation, and (2) hopes for continued QE3 after the Nov Philadelphia Fed manufacturing index slid -13.3 to a 6-month low of 6.5. Closes: S&P 500 +0.81%, Dow Jones +0.69%, Nasdaq 100 +1.06%.

    Dec 10-year T-notes (ZNZ13 +0.05%) this morning are up +1 tick. Dec T-notes posted a 1-week low early after U.S. weekly jobless claims fell -21,000, more than expectations of -5,000, but prices recovered after the Nov Philadelphia Fed manufacturing index declined more than expected to a 6-month low. Closes: TYZ3 unch, FVZ3 +0.25.

    The dollar index (DXY00 -0.36%) this morning is down -0.224 (-0.28%). EUR/USD (^EURUSD) is up +0.0034 (+0.25%) and USD/JPY (^USDJPY) is up +0.10 (+0.10%) at a 4-1/2 month high. The dollar index on Thursday fell back from a 1-week high and closed lower. EUR/USD recovered from a 1-week low and closed higher after ECB President Draghi threw cold water on a report that said the ECB is considering a negative deposit rate by saying there was no discussion about negative rates since the last ECB meeting. USD/JPY surged to a 4-1/4 month high on expectations the Fed will taper asset purchases before the BOJ does. Closes: Dollar index -0.039 (-0.05%), EUR/USD +0.00429 (+0.32%), USD/JPY +1.133 (+1.13%).

    Jan WTI crude oil (CLF14 -0.25%) this morning is down -28 cents (-0.29%) and Jan gasoline (RBF14 -0.05%) is down -0.0060 (-0.22%). Jan crude oil and gasoline prices on Thursday closed higher with Jan crude at a 1-week high and Jan gasoline at a 5-week high. Bullish factors included (1) the larger-than-expected decline in U.S. weekly jobless claims, and (2) gasoline supply concerns after Motiva Enterprises LLC said production would be curtailed at its 600,000 barrel-a-day refinery in Port Arthur, TX, because of maintenance. Closes: CLF4 +1.59 (+1.59%), RBF4 +0.0733 (+2.77%).

    GLOBAL EVENT CALENDAR11/22/2013

    US 1215 ET Fed Governor Daniel Tarullo speaks on shadow banking to the Americans for Financial Reform and Economic Policy Institute Conference.
      1500 ET Oct USDA Cold Storage.
      1500 ET Oct Cattle on Feed.
    JPN 0000 ET BOJ releases monthly economic report for Nov.
    GER 0200 ET Revised German Q3 GDP, previous +0.3% q/q and +0.6% y/y.
      0400 ET German Nov IFO business climate expected +0.3 to 107.7, Oct 107.4. Nov IFO current assessment expected +0.2 to 111.5, Oct 111.3. Nov IFO expectations expected +0.4 to 104.0, Oct 103.6.

    U.S. STOCK CALENDAR11/22/2013

    Company Name Ticker Time Event Description Period Estimate
    PetSmart Inc PETM US Bef-mkt Q3 2014 Earnings Release Q3 2014 0.857
    Sirona Dental Systems Inc SIRO US Bef-mkt Q4 2013 Earnings Release Q4 2013 0.803
    Foot Locker Inc FL US 7:00 Q3 2014 Earnings Release Q3 2014 0.664
    Sirona Dental Systems Inc SIRO US 8:30 Q4 2013 Earnings Call Q4 2013  
    Foot Locker Inc FL US 9:00 Q3 2014 Earnings Call Q3 2014  
    PetSmart Inc PETM US 9:00 Q3 2014 Earnings Call Q3 2014  
    Cytec Industries Inc CYT US 9:00 Analyst and Investor Day Y 2013  
    Alleghany Corp Y US 10:30 Investor Day Y 2013  
    Donaldson Co Inc DCI US 14:00 Annual General Meeting Y 2013  
    MICROS Systems Inc MCRS US   Annual General Meeting    
    Lions Gate Entertainment Corp LGF US   U.S. Box Office Release of Movie The Hunger Games: Catching Fire""
    Stocks: PETM, DLTR, YUM, MU, GME, PAY, TGT, LMT, ROST, INTC, HES, UPS, MRVL, GPS, SIRO, FL, CYT, Y, DCI, MCRS, LGF
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