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 12/16 0 comments
    Dec 16, 2013 8:57 AM | about stocks: URBN, TWTR, XOM, MRO, AAPL, ODFL, CNW, CDE, LMT, TMUS, PZG, IDT, MCBI, EWBC, SXC, LINEQ, GM, UNM, FCEL, NICK, CPRT

    BARCHART MORNING CALL

    Monday, December 16th, 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

    March E-mini S&Ps (ESH14 +0.49%) this morning are up +0.45% and European stocks are up +1.27% on signs of economic strength after the Eurozone Dec manufacturing PMI rose more than expected to its best level in 2-1/2 years. Asian stocks closed lower: Japan -1.62%, Hong Kong -0.56%, China -1.61%, Taiwan -0.75%, Australia -0.17%, Singapore -0.40%, South Korea -0.05%, India -0.27%. Japanese stocks were undercut on speculation the BOJ won't expand its stimulus measures after Japan's Q4 Tankan large manufacturers business conditions rose to a 7-year high, while China's Shanghai Composite Stock Index tumbled to a 4-week low after a gauge of Chinese manufacturing activity unexpectedly fell. Commodity prices are mixed. Jan crude oil (CLF14 +0.48%) is up +0.56%. Jan gasoline (RBF14 +1.17%) is up +1.04%. Feb gold (GCG14 -0.34%) is down -0.42%. March copper (HGH14 +0.17%) is up +0.18% at a 1-1/2 month high on concern over tighter supplies after LME copper inventories slipped -3,825 MT to a 10-1/4 month low of 389,175 MT. Agricultural prices are lower. The dollar index (DXY00 -0.32%) is down -0.26%. EUR/USD (^EURUSD) is up +0.30%. USD/JPY (^USDJPY) is down -0.17%. March T-note prices (ZNH14 +0.08%) are up +4.5 ticks.

    Japan's Q4 Tankan business conditions large manufacturers rose to 16 from 12 in Q3. That was better than expectations of an increase to 15 and the highest in 7 years.

    The China Dec HSBC/Markit flash manufacturing PMI unexpectedly fell -0.3 to a 3-month low of 50.5, a slower pace of expansion than expectations of +0.1 to 50.9.

    The German Dec PMI manufacturing index rose +1.5 to 54.2, stronger than expectations of +0.3 to 53.0 and the fastest pace of expansion in 2-1/2 years.

    The Eurozone Dec PMI manufacturing index rose +1.1 to 52.7, better than expectations of +0.3 to 51.9 and the fastest pace of expansion in 2-1/2 years.

    The Eurozone Dec PMI composite index rose +0.4 to 52.1, better than expectations of +0.2 to 51.9 and the strongest pace of expansion in 3 months.

    The Eurozone Oct trade balance widened to a +14.5 billion euro surplus, right on expectations, from a downward revised +12.4 billion euro surplus in Sep.

    U.S. STOCK PREVIEW

    This will be a busy week with the FOMC meeting on Tue/Wed and the Senate's consideration of the 2-year budget agreement and Janet Yellen's confirmation as Fed Chair. Today's Nov industrial production report is expected to show a strong increase of +0.6% following October's weak report of -0.1%, getting back in sync with the strong increases of +0.5% in Aug and +0.7% in Sep. Today's Dec Empire manufacturing index is expected to show a +7.21 point increase to 5.00, vaulting back into positive territory after the -3.73 point decline to -2.21 seen in November. There are no major earnings reports today. Equity conferences this week include: Bank of America Merrill Lynch Animal Health Summit on Mon, and Citi Group Connected Car & Telematics Mini-Conference.

    OVERNIGHT U.S. STOCK MOVERS

    Urban Outfitters (URBN -0.61%) was upgraded to 'Buy' from 'Neutral' at Goldman.

    Twitter (TWTR +6.63%) was downgraded to 'Underperform' from 'Market Perform' at Wells Fargo.

    Exxon Mobil (XOM -0.05%) was upgraded to 'Buy' from 'Neutral' at Goldman.

    Marathon Oil (MRO -1.05%) was downgraded to 'Neutral' from 'Buy' at Goldman.

    Jefferies kept its 'Buy' rating on Apple (AAPL -1.09%) and raised its price target for the stock to $650 from $600.

    Old Dominion Freight Line (ODFL +1.76%) was upgraded to 'Buy' from 'Hold' at Deutsche Bank.

    Conway (CNW +0.89%) was downgraded to 'Hold' from 'Buy' at Deutsche Bank.

    General Dynamics (GD +0.41%) was awarded a $115.05 million government contract for engineering, development, and production efforts necessary to support the United States and United Kingdom Trident II Strategic Weapons Systems.

    Lockheed Martin (LMT +0.76%) was awarded a $124.53 million government contract modification for the development and production of the common acoustics processing for Technology Insertion 12 through Technology Insertion 14 for the U.S. submarine fleet.

    T-Mobile (TMUS +8.65%) is up over 9% in after-hours trading after the WSJ reported that Sprint (S +3.44%) is preparing a possible bid for T-Mobile U.S.

    MARKET COMMENTS

    Mar E-mini S&Ps (ESH14 +0.49%) this morning are up +8.00 points (+0.45%). The S&P 500 index on Friday opened higher after the House of Representatives late Thursday passed the 2-year budget agreement, but stock prices then shed their advance on concern the passage of a budget agreement will give the Fed a green light on cutting QE3. On the positive side, producer price pressures were quiescent after Nov PPI fell -0.1% m/m and rose +1.3% y/y, weaker than expectations of unch m/m and +1.4% y/y. Closes: S&P 500 -0.01%, Dow Jones +0.10%, Nasdaq 100 -0.11%.

    Mar 10-year T-notes (ZNH14 +0.08%) this morning are up +4.5 ticks. Mar T-notes on Friday closed little changed. Expectations the Fed will soon slow its bond buying was offset by benign producer prices after the Nov PPI unexpectedly fell -0.1% m/m, weaker than expectations of unch and the third straight monthly decline. Closes: TYH4 +0.50, FVH4 -0.25.

    The dollar index (DXY00 -0.32%) this morning is down -0.207 (-0.26%). EUR/USD (^EURUSD) is up +0.0041 (+0.30%) and USD/JPY (^USDJPY) is down -0.18 (-0.17%). The dollar index on Friday closed slightly higher. USD/JPY posted a 5-year high before falling back to close lower on expectations the Fed will taper QE3 while the BOJ will expand its asset-purchase program to boost the economy and raise the inflation rate. Pressuring the yen were comments from BOJ Governor Kuroda who said the BOJ aims to keep ultra-easy monetary policy in place beyond its 2-year timeframe. Closes: Dollar index +0.008 (+0.01%), EUR/USD -0.00114 (-0.08%), USD/JPY -0.175 (-0.17%).

    Jan WTI crude oil (CLF14 +0.48%) this morning is up +54 cents (+0.56%) and Jan gasoline (RBF14 +1.17%) is up +2.74 cents (+1.04%). Jan crude oil and gasoline prices on Friday closed lower with Jan crude at a 1-week low and Jan gasoline at a 3-week low. Bearish factors included (1) the stronger dollar due to heightened speculation the Fed will taper stimulus sooner rather than later and (2) demand concerns after Wednesday's weekly EIA data showed total U.S. petroleum consumption for the week ended Dec 6 dropped -7.1% to 18.554 million barrels a day, the lowest in 7 weeks. Closes: CLF4 -0.90 (-0.92%), RBF4 -0.0055 (-0.21%).

    GLOBAL EVENT CALENDAR12/16/2013

    US 0830 ET Dec Empire manufacturing index expected +7.21 to 5.00, Nov -3.73 to -2.21.
      0830 ET Revised Q3 non-farm productivity expected +2.8%, previous +1.9%. Revised Q3 unit labor costs expected 1.4%, previous -0.6%.
      0915 ET Nov industrial production expected +0.6%, Oct -0.1% m/m. Nov manufacturing production expected +0.4%, Oct +0.3%. Nov capacity utilization expected +0.3 to 78.4%, Oct -0.2 to 78.1%.
      1100 ET USDA weekly grain export inspections.
    GER 0330 ET German Dec PMI manufacturing expected +0.3 to 53.0, Nov 52.7. Dec PMI services expected -0.4 to 55.3, Nov 55.7.
    EUR 0400 ET Eurozone Dec PMI composite expected +0.2 to 51.9, Nov 51.7.
      0500 ET Eurozone Oct trade balance, Sep +14.3 billion euros (sa).
      0900 ET ECB President Mario Draghi speaks to the European Parliament in Brussels.

    U.S. STOCK CALENDAR12/16/2013

    Company Name Ticker Time Event Description Period Estimate
    Paramount Gold and Silver Corp PZG CN 10:00 Annual General Meeting Y 2013  
    IDT Corp IDT US 10:30 Annual General Meeting Y 2013  
    MetroCorp Bancshares Inc MCBI US 11:00 Extraordinary Shareholders Meeting Y 2013  
    East West Bancorp Inc EWBC US 11:00 Extraordinary Shareholders Meeting Y 2013  
    SunCoke Energy Inc SXC US 11:00 FY 2014 Guidance Call Y 2014  
    Berry Petroleum Co BRY US 12:00 Special Meeting - M&A Vote    
    General Motors Co GM US 13:00 National Press Club Presents CEO, Dan Akerson    
    Unum Group UNM US 14:00 Investor Meeting 2013  
    FuelCell Energy Inc FCEL US Aft-mkt Q4 2013 Earnings Release Q4 2013 -0.03
    Nicholas Financial Inc NICK US   Annual General Meeting Y 2013  
    Copart Inc CPRT US   Annual General Meeting    
    Stocks: URBN, TWTR, XOM, MRO, AAPL, ODFL, CNW, CDE, LMT, TMUS, PZG, IDT, MCBI, EWBC, SXC, LINEQ, GM, UNM, FCEL, NICK, CPRT
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

  • $MYOK - 100% technical buy signals - 7 New highs and up 32.3% in the last month - Relative Strength Index 77.17%
    about 10 hours ago
  • $EXEL - 80% technical buy signals - 8 new highs and up 31.22% in the last month - Relative Strength Index 76.0%
    1 day ago
  • $ATEN - 100% technical buy signals - 19 new highs and up 38.35% in the last month - Relative Strength Index 85.18%
    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.