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 12/10 0 comments
    Dec 10, 2013 1:33 PM | about stocks: FDX, CELG, BURL, AZO, TOL, HAR, VIVHY, MTN, CASY, PBY, GEF, HDS, LDOS, CAH, JW.A, AMTD, AVGO, HSC, PVH, TSO, FISV, THO, EFX

    BARCHART MORNING CALL

    Tuesday, December 10th, 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 -0.01%) this morning are up +0.10% and European stocks are up +0.19%. Asian stocks closed mostly lower: Japan -0.25%, Hong Kong -0.28%, China +0.10%, Taiwan -0.01%, Australia -0.02%, Singapore -1.03%, South Korea -0.39%, India -0.33%. Asian stocks were mostly lower after China Nov industrial production rose less than expected, while European stocks gained after UK industrial output rose as expected. Reduced European sovereign debt concerns were another positive for European shares after the yield spread between Spanish 10-year bonds and German bunds narrowed to as low as 220 bp, the least in 2-1/2 years. Commodity prices are mostly higher. Jan crude oil (CLF14 +1.28%) is up +1.19% at a 6-week high. Jan gasoline (RBF14 +0.93%) is up +1.06%. Feb gold (GCG14 +1.17%) is up +0.96%. March copper (HGH14 +0.37%) is up +0.48% at a 2-week high after LME copper inventories tumbled -3,225 MT to a 9-3/4 month low of 402,050 MT. Agricultural and livestock prices are mixed. The dollar index (DXY00 -0.08%) is down -0.04% at a 5-week low. EUR/USD (^EURUSD) is up +0.04% at a 5-week high after ECB Executive Board member Coeure said the Eurozone "is nowhere near deflation," which signals the ECB may not expand its stimulus measures. USD/JPY (^USDJPY) is down -0.17%. March T-note prices (ZNH14 +0.28%) are up +10 ticks.

    China Nov industrial production rose +10.0% y/y, weaker than expectations of +10.1% y/y and the slowest pace in 4-months, although Nov retail sales climbed at a +13.7% y/y pace, better than expectations of +13.2% y/y and the fastest pace in 11-months.

    ECB Executive Board member Coeure said that while price gains are low, the Eurozone "is nowhere near deflation" and that inflation rates will come back to 2% "at some later point but not so long after" the ECB's forecast horizon of 2015.

    Japan Nov machine tool orders climbed +15.4% y/y, the fastest pace in 23-months.

    The Japan Oct tertiary industry index unexpectedly fell -0.7% m/m, weaker than expectations of +0.1% m/m.

    The Japan Q3 BSI large all industry business conditions fell back to 8.3 from 12.0 in Q3 and the Q4 BSI large manufacturing business conditions dropped to 9.7 from 15.2 in Q3.

    Japan Nov consumer confidence rose +1.3 to 42.5, a smaller increase than expectations of +1.8 to 43.0.

    UK Oct industrial production rose +0.4% m/m and +3.2% y/y, right on expectations, and Oct manufacturing production rose +0.4% m/m and +2.7% y/y, slightly weaker than expectations of +0.4% m/m and +2.9% y/y.

    U.S. STOCK PREVIEW

    The Treasury today will kick off this week's $64 billion auction package by selling $30 billion in 3-year T-notes. The Treasury will then sell $21 billion of reopened 10-year T-notes on Wednesday and $13 billion of opened 30-year bonds on Thursday. There are 7 of the Russell 1000 companies that report earnings today: Toll Brothers (consensus $0.43), Greif (0.83), HD Supply (0.36), Leidos Holdings (0.40), Autozone (6.28), John Wiley (0.73), H&R Block (-0.37).

    Equity conferences during the remainder of this week include: UBS Global Media and Communications Conference on Mon-Wed, Raymond James Systems Semiconductors, Software & Supply Chain Conference on Mon-Tue, Bloomberg Enterprise Technology Summit on Tue,
    Jefferies Storage Summit on Tue, BMO Capital MarketsTechnology & Digital Media Conference on Tue, Raymond James Supply Chain Conference on Tue, Oppenheimer Health Care Conference on Tue-Wed, Goldman Sachs Financial Services Conference on Tue-Wed, Bank of America Merrill Lynch US Basic Materials Conference on Tue-Wed, BMO Technology and Digital Media Conference on Tue-Wed, BMO Capital Markets Technology, Media & Entertainment Conference on Tue-Wed, Wells Fargo Energy Symposium on Wed, Wells Fargo Securities Pipeline, MLP, and Energy Symposium on Wed, Capital One Southcoast Energy Conference on Wed-Thu, Barclays Information and IT Services Forum on Thu, Barclays Select Series Information and IT Series Forum Conference on Thu, and AHIP Exchange Conference 2013 on Thu.

    OVERNIGHT U.S. STOCK MOVERS

    Citigroup keeps a 'Buy' rating on FedEx (FDX +0.30%) and raised its price target on the stock to $170 from $140.

    Celgene (CELG +2.15%) was upgraded to 'Outperform' from 'Neutral' at Credit Suisse.

    Burlington Stores (BURL +0.29%) reported a Q3 adjusted EPS loss of -5 cents, smaller than consensus of -6 cents.

    AutoZone (AZO -0.49%) reported Q1 EPS of $6.29, stronger than consensus of $6.27.

    Toll Brothers (TOL +2.10%) reported Q4 EPS of 54 cents, better than consensus of 43 cents

    Harman (HAR -0.36%) was upgraded to 'Outperform' from 'Market Perform' at Wells Fargo who also raised their price target on the stock to $95-$100 from $74-$78.

    Vivendi (VIVHY -0.31%) was upgraded to 'Buy' from 'Hold' at Deutsche Bank.

    Vail Resorts (MTN +1.44%) reported a Q1 EPS loss of -$2.04, a bigger loss than consensus of -$1.91.

    Casey's General Stores (CASY -1.43%) reported Q2 EPS of $1.06, below consensus of $1.14.

    Pep Boys (PBY -0.22%) slumped over 12% in pre-market trading after it reported Q3 EPS of 2 cents, well below consensus of 14 cents.

    MARKET COMMENTS

    Dec E-mini S&Ps (ESZ13 -0.01%) this morning are up +1.75 points (+0.10%). The S&P 500 index on Monday rose to a 1-week high and closed higher on carry-over support from Friday's stronger-than-expected Nov non-farm payrolls report, which bolstered speculation the economy is strong enough to handle QE3 tapering. Stocks also received a boost on signs of strength in the global economy after China Nov exports rose +12.7% y/y, more than expectations of +7.0% y/y and the most in 7 months. Closes: S&P 500 +0.18%, Dow Jones +0.03%, Nasdaq 100 +0.34%.

    Mar 10-year T-notes (ZNH14 +0.28%) this morning are up +10 ticks. Mar T-notes on Monday closed higher on signs the Fed may limit its reduction of bond purchases after St. Louis Fed President Bullard said any reduction in bond buying should be modest to account for low inflation. Bullard also said "should inflation not return toward the Fed's 2% target, the FOMC could pause tapering at subsequent meetings." Closes: TYH4 +4.00, FVH4 +1.25.

    The dollar index (DXY00 -0.08%) this morning is down -0.033 (-0.04%) at a fresh 5-week low. EUR/USD (^EURUSD) is up +0.0006 (+0.04%) at a 5-week high and USD/JPY (^USDJPY) is down -0.18 (-0.17%). The dollar index on Monday fell to a 5-week low and closed lower as strength in stocks reduced the safe-haven demand for the dollar. EUR/USD posted a 5-week high on signs of stronger economic growth in Europe after German Oct exports unexpectedly rose +0.2% m/m, better than expectations of a -0.5% m/m decline. Closes: Dollar index -0.181 (-0.23%), EUR/USD +0.00356 (+0.26%), USD/JPY +0.344 (+0.33%).

    Jan WTI crude oil (CLF14 +1.28%) this morning is up +$1.16 a barrel (+1.19%) at a 6-week high and Jan gasoline (RBF14 +0.93%) is up +2.84 cents a gallon (+1.06%). Jan crude oil and gasoline prices on Monday closed lower. Crude prices fell on concern about global demand after German Oct industrial production unexpectedly declined. Gasoline was dragged lower on signs that U.S. refiners will continue to boost gasoline output after the utilization rate for U.S. refiners in the week ended Nov 29 rose to 92.4%, the highest seasonal level in 9 years. Closes: CLF4 -0.31 (-0.03%), RBF4 -0.0571 (-2.09%).

    GLOBAL EVENT CALENDAR12/10/2013

    US 1000 ET Oct wholesale inventories expected +0.3%, Sep +0.4%. Oct wholesale trade sales expected +0.2%, Sep +0.6%.
      1200 ET Dec WASDE crop production report.
      1300 ET Treasury auctions $30 billion 3-year T-notes.
      1630 ET API weekly U.S. oil statistics.
    JPN 0000 ET Japan Nov consumer confidence index expected +2.3 to 43.4, Oct 41.2.
      0100 ET Japan Nov machine tool orders, Oct +8.4% y/y
      1850 ET Japan Oct machine orders expected +0.7% m/m and +15.0% y/y, Sep -2.1% m/m and +11.4% y/y.
      1850 ET Japan Nov domestic CGPI expected +0.1% m/m and +2.7% y/y, Oct -0.1% m/m and +2.5% y/y.
    CHI 0030 ET China Nov industrial production expected +10.1% y/y, Oct +10.3% y/y.
      0030 ET China Nov retail sales expected +13.2% y/y, Oct +13.3% y/y.
    UK 0430 ET UK Oct industrial production expected +0.4% m/m and +3.2% y/y, Sep +0.9% m/m and +2.2% y/y.
      0430 ET UK Oct manufacturing production expected +0.4% m/m and +2.9% y/y, Sep +1.2% m/m and +0.8% y/y.
    EUR 0700 ET ECB President Mario Draghi speaks at a conference in Rome.

    U.S. STOCK CALENDAR12/10/2013

    Company Name Ticker Time Event Description Period Estimate
    Toll Brothers Inc TOL US Bef-mkt Q4 2013 Earnings Release Q4 2013 0.426
    Greif Inc GEF US Bef-mkt Q4 2013 Earnings Release Q4 2013 0.826
    HD Supply Holdings Inc HDS US 6:00 Q3 2014 Earnings Release Q3 2014 0.361
    Leidos Holdings Inc LDOS US 6:01 Q3 2014 Earnings Release Q3 2014 0.403
    AutoZone Inc AZO US 7:00 Q1 2014 Earnings Release Q1 2014 6.277
    Cardinal Health Inc CAH US 8:00 Investor and Analyst Day Y 2013  
    John Wiley & Sons Inc JW/A US 8:00 Q2 2014 Earnings Release Q2 2014 0.725
    Leidos Holdings Inc LDOS US 8:00 Q3 2014 Earnings Call Q3 2014  
    HD Supply Holdings Inc HDS US 8:00 Q3 2014 Earnings Call Q3 2014  
    TD Ameritrade Holding Corp AMTD US 8:30 November 2013 Sales and Revenue Release 2013  
    Broadcom Corp BRCM US 8:30 Analyst Day Y 2013  
    Harsco Corp HSC US 9:00 Investor Day Y 2013  
    PVH Corp PVH US 9:00 Q3 2014 Earnings Call Q3 2014  
    Tesoro Corp TSO US 9:00 Analyst and Investor Meeting Y 2013  
    Fiserv Inc FISV US 9:30 Investor Conference Y 2013  
    AutoZone Inc AZO US 10:00 Q1 2014 Earnings Call Q1 2014  
    John Wiley & Sons Inc JW/A US 10:00 Q2 2014 Earnings Call Q2 2014  
    Thor Industries Inc THO US 13:00 Annual General Meeting Y 2013  
    Toll Brothers Inc TOL US 14:00 Q4 2013 Earnings Call Q4 2013  
    Greif Inc GEF US 15:00 Q4 2013 Earnings Call Q4 2013  
    H&R Block Inc HRB US Aft-mkt Q2 2014 Earnings Release Q2 2014 -0.37
    Equifax Inc EFX US   Investor Meeting - Los Angeles Y 2013  
    Stocks: FDX, CELG, BURL, AZO, TOL, HAR, VIVHY, MTN, CASY, PBY, GEF, HDS, LDOS, CAH, JW.A, AMTD, AVGO, HSC, PVH, TSO, FISV, THO, EFX
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

  • $DW - 100% technical buy signals - 14 new highs and up 15.83% in the last month - Above its 20, 50 and 100 day moving averages
    4 days ago
  • $ACC 96% technical buy signals - 12 new highs and up 6.73% in the last month - Above its 20, 50 and 100 day moving averages
    4 days ago
  • $CTWS - 88% technical buy signals - new highs and up % in the last month- Above its 20, 50 and 100 day moving averages
    5 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.