Thursday, December 12th, 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 -0.04%) this morning are down -0.15% at a 3-week low and European stocks are down -0.51% at a 2-month low. Asian stocks closed lower: Japan -1.12%, Hong Kong -0.51%, China -0.11%, Taiwan -0.86%, Australia -0.92%, Singapore -0.06%, South Korea -0.58%, India -1.16%. U.S. stocks were undercut by concern the Fed may taper QE3 sooner than expected and European stocks fell after Eurozone industrial production unexpectedly fell in Oct. European bonds fell after ECB Council member Praet told the Financial Times that Eurozone banks may reduce purchases of sovereign debt to lower their risk profile. Commodity prices are mixed. Jan crude oil (CLF14 +0.24%) is up +0.32%. Jan gasoline (RBF14 +0.14%) is up +0.02%. Feb gold (GCG14 -1.76%) is down -1.52%. March copper (HGH14 -0.03%) is down -0.09%. Agricultural and livestock prices are weaker. The dollar index (DXY00 +0.03%) is up +0.02%. EUR/USD (^EURUSD) is up +0.01%. USD/JPY (^USDJPY) is up +0.29%. The Australian dollar fell to a 3-1/4 month low against the U.S. dollar after Australia's Nov unemployment rate matched a 4-1/3 year high, which fueled speculation of further rate cuts by the RBA. March T-note prices (ZNH14 -0.04%) are unchanged.
Eurozone Oct industrial production unexpectedly fell -1.1% m/m, much weaker than expectations for a +0.3% m/m increase and the biggest monthly decline in 13-months. On a year-over-year basis, Oct industrial production rose +0.2% y/y, weaker than expectations of +1.1% y/y.
ECB Council member Praet said "Treating banks' holdings of sovereign debt according to the risk that they pose to banks' capital makes it unlikely that the banks will use central bank liquidity to excessively increase their exposure to sovereign debt. This is because banks will be wary of the constraints placed on sovereign debt by the stress tests to which they are subject at the same time."
The Australia Nov employment change rose +21,000, better than expectations of +10,000, while the Nov unemployment rate rose an as expected +0.1 to 5.8% and matched the Aug level as the highest in 4-1/3 years.
U.S. STOCK PREVIEW
Today's weekly initial unemployment claims report is expected to show an increase of +22,000 to 320,000, almost exactly reversing last week's decline of -23,000 to 298,000. Weekly continuing claims are expected to show an increase of +13,000 to 2.757 million, reversing more than one-half of last week's decline of -21,000 to 2.744 million. Today's Nov retail sales report is expected to show a strong increase of +0.6%, adding to the +0.4% increase seen in October. The Nov retail sales report is expected to show a smaller increase of +0.2%, however, excluding the strength in Nov vehicle sales, which rose sharply to a new 6-1/2 year high of 16.31 million units from 15.15 million units in October. The Treasury today will sell $13 billion in 30-year T-bonds, concluding this week's $64 billion coupon package.
There are two of the Russell 1000 companies that report earnings today: Adobe (consensus $0.32), Science Applications (0.56). Equity conferences during the remainder of this week include: 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
lululemon (LULU -1.11%) dropped 10% in pre-market trading after it cut guidance on fiscal 2013 EPS to $1.94-$1.96, below consensus $1.96, and said it sees fiscal 2013 revenue of $1.605 billion-$1.61 billion, weaker than consensus of $1.64 billion.
Southwest (LUV -3.28%) was upgraded to 'Buy' from 'Neutral' at BofA/Merrill.
Oracle (ORCL -0.69%) was downgraded to 'Sector Perform' from 'Outperform' at RBC Capital.
Micron (MU -2.77%) was upgraded to 'Buy' from 'Neutral' at Nomura.
Danaher (DHR -1.62%) lowered guidance on fiscal 2014 EPS to $3.60-$3.75, below consensus of $3.81.
Moody's Investors Service has placed on review for downgrade the general obligation rating of the Commonwealth of Puerto Rico.
Men's Wearhouse (MW -1.92%) reported Q3 adjusted EPS of 90 cents, higher than consensus of 86 cents.
UNS Energy (UNS -0.99%) soared 30% in after-hours trading after it announced that it will be acquired by Fortis for $60.25 per share.
Athenahealth (ATHN -2.15%) slumped over 12% in after-hours trading after it lowered guidance on fiscal 2014 EPS to 98 cents-$1.10, well below consensus of $1.38.
Dec E-mini S&Ps (ESZ13 -0.04%) this morning aredown -2.75 points (-0.15%) at a 3-week low . The S&P 500 index on Wednesday closed lower after a Congressional budget accord boosted speculation that the Fed may start to taper QE3 sooner than expected. Another negative for stocks was year-end profit-taking with the S&P 500 up nearly 24% for the year. Closes: S&P 500 -1.13%, Dow Jones -0.81%, Nasdaq 100 -1.29%.
Mar 10-year T-notes (ZNH14 -0.04%) this morning are unchanged. Mar T-notes on Wednesday closed lower on expectations that U.S. lawmakers will pass a budget agreement that averts a government shutdown and gives the Fed the green light to begin tapering bond purchases. Another negative for T-note prices was weak demand for the Treasury's $21 billion auction of 10-year T-notes, which had a 2.61 bid-to-cover ratio, below the 12-auction average of 2.74. Closes: TYH4 -11.50, FVH4 -6.00.
The dollar index (DXY00 +0.03%) this morning is up +0.017 (+0.02%). EUR/USD (^EURUSD) is up +0.0002 (+0.01%) and USD/JPY (^USDJPY) is up +0.30 (+0.29%). The dollar index on Wednesday posted a 5-week low. EUR/USD rallied to a 6-week high on reduced Eurozone sovereign debt concerns after the yield on Spain's 5-year bonds tumbled to an 8-year low of 2.52%. Closes: Dollar index -0.072 (-0.09%), EUR/USD +0.00248 (+0.18%), USD/JPY -0.414 (-0.40%).
Jan WTI crude oil (CLF14 +0.24%) this morning is up +31 cents (+0.32%) and Jan gasoline (RBF14 +0.14%) is up +0.0004 (+0.02%). Jan crude oil and gasoline prices on Wednesday closed lower. Jan crude fell back from a 6-week high and Jan gasoline dropped to a 2-week low on bearish factors that included (1) weekly EIA data that showed U.S. crude oil production in the week ended Dec 6 rose +0.8% to a 25-year high of 8.075 million barrels a day, (2) U.S. distillate fuel production for the week ended Dec 6 of 5.26 million barrels a day, a 27-year high, (3) the larger-than-expected +6.717 million bbl increase in weekly gasoline stockpiles to a 2-month high of 219.15 million bbl, and (4) the +625,000 bbl increase in crude supplies at Cushing, OK, the delivery point for WTI futures, to a 4-1/2 month high of 41.223 million bbl. Closes: CLF4 -1.07 (-1.09%), RBF4 -0.0218 (-0.81%).
GLOBAL EVENT CALENDAR12/12/2013
|US||0830 ET||Weekly initial unemployment claims expected +22,000 to 320,000, previous -23,000 to 298,000. Weekly continuing claims expected +13,000 to 2.757 million, previous -21,000 to 2.744 million.|
|0830 ET||Nov retail sales expected +0.6% and +0.2% ex autos, Oct +0.4% and +0.2% ex autos.|
|0830 ET||Nov import price index expected -0.7% m/m and -1.7% y/y, Oct -0.7% m/m and -2.0% y/y.|
|0830 ET||USDA weekly Export Sales.|
|1000 ET||Oct business inventories expected +0.3%, Sep +0.6%.|
|1100 ET||Treasury announces amount of 2-year T-notes (previous $32 billion), 5-year T-notes (previous $35 billion), 7-year T-notes (previous $29 billion) and 5-year TIPS (previous $16 billion) to be auctioned Dec 17-19.|
|1300 ET||Treasury auctions $13 billion 30-year T-bonds.|
|EUR||0300 ET||ECB President Mario Draghi speaks in the EU Parliament on ECB policy.|
|0400 ET||ECB publishes monthly report for December.|
|0500 ET||Eurozone Oct industrial production expected +0.3% m/m and +1.1% y/y, Sep -0.5% m/m and +1.1% y/y.|
|JPN||2330 ET||Revised Japan Oct industrial production, previous +0.5% m/m and +4.7% y/y. Oct capacity utilization, Sep +1.2% m/m.|
U.S. STOCK CALENDAR12/12/2013
|Company Name||Ticker||Time||Event Description||Period||Estimate|
|WW Grainger Inc||GWW US||8:00||November 2013 Sales and Revenue Call||2013|
|WW Grainger Inc||GWW US||8:00||November 2013 Sales and Revenue Release||2013|
|Stanley Black & Decker Inc||SWK US||8:00||Business Update Call|
|Cisco Systems Inc||CSCO US||8:00||Financial Analyst Conference||Y 2013|
|MetLife Inc||MET US||8:00||Investor Conference||Y 2013|
|International Game Technology||IGT US||8:30||Analyst Day||Y 2013|
|Nordson Corp||NDSN US||8:30||Q4 2013 Earnings Call||Q4 2013|
|DIRECTV||DTV US||8:30||Investor Day||Y 2013|
|Exelis Inc||XLS US||8:30||Business Update Call|
|Aetna Inc||AET US||9:00||Investor Conference||Y 2013|
|Exxon Mobil Corp||XOM US||10:00||FY 2014 Guidance Call||Y 2014|
|WR Grace & Co||GRA US||11:00||Business Update Call|
|Danaher Corp||DHR US||12:30||Investor and Analyst Meeting||Y 2013|
|AmerisourceBergen Corp||ABC US||12:45||Investor Day||Y 2013|
|Kimco Realty Corp||KIM US||13:00||Investor Day||Y 2013|
|Nielsen Holdings NV||NLSN US||13:00||Investor Day||Y 2013|
|Adobe Systems Inc||ADBE US||17:00||Q4 2013 Earnings Call||Q4 2013|
|Science Applications International Corp||SAIC US||17:00||Q3 2014 Earnings Call||Q3 2014|
|United Technologies Corp||UTX US||17:30||Analyst and Investor Meeting||Y 2013|
|Adobe Systems Inc||ADBE US||Aft-mkt||Q4 2013 Earnings Release||Q4 2013||0.319|
|Science Applications International Corp||SAIC US||Aft-mkt||Q3 2014 Earnings Release||Q3 2014||0.555|
|Myriad Genetics Inc||MYGN US||20:30||Analyst and Investor Day||Y 2013|
|Bristol-Myers Squibb Co||BMY US||FDA Adcomm, dapagliflozin (Forxiga), type II diabetes|
|Merck & Co Inc||MRK US||FDA Adcomm, Grastek, Timothy grass pollen allergy, immunotherapy tablet|
|Ascena Retail Group Inc||ASNA US||Annual General Meeting|