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BARCHART MORNING CALL 1/28

|Includes:AMGN, BDX, CMCSA, DD, D. R. Horton Inc. (DHI), DHR, EA, F, GLW, HRL, HRS, ITW, MLM, MON, MRK, NEE, NUE, OI, PFE, RCII, STM, T, TROW, TSS, TXI, VZ, WAT, X, YHOO

BARCHART MORNING CALL

Tuesday, January 28th, 2014View Older Reports

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OVERNIGHT MARKETS AND NEWS

March E-mini S&Ps (ESH14 +0.35%) this morning are up +0.48% and European stocks are up +0.73% as equities stabilize following recent losses. Technology stocks were weaker, however, as Apple tumbled -7% in pre-market trading after it projected that revenue in the current quarter may decline for what would be the first quarterly decline in 11 years. Asian stocks closed mixed: Japan -0.17%, Hong Kong -0.07%, China +0.18%, Taiwan closed for holiday, Australia -1.26%, Singapore +0.66%, South Korea +0.3%, India -0.12%. Chinese stocks rose and borrowing costs fell after a troubled trust product was bailed out. Industrial & Commercial Bank of China Ltd. said investors in the high-yield trust, which was issued by China Credit Trust Co. and set up to lend money to a coal miner that subsequently failed, can recoup their funds. India's stocks dropped and the rupee gained after the RBI unexpectedly raised interest rates. Commodity prices are mixed. Mar crude oil (CLH14 +0.44%) is up +0.53%. Mar gasoline (RBH14 +0.30%) is up +0.37%. Feb gold (GCG14 -0.64%) is down -0.71%. March copper (HGH14 +0.12%) is up +0.20%. Agriculture and livestock prices are higher. The dollar index (DXY00 +0.22%) is up +0.21% as the FOMC begins its 2-day meeting today where expectations are for the Fed to taper QE3 by another -$10 billion. EUR/USD (^EURUSD) is down -0.23%. USD/JPY (^USDJPY) is up +0.59%. March T-note prices (ZNH14 -0.04%) are down -3.5 ticks.

The Reserve Bank of India (RBI) unexpectedly raised the repurchase rate by 25 bp to 8.00% from 7.75% to fight inflation and boost the rupee. RBI Governor Rajan said "The gravest risk to the value of the rupee is from CPI inflation, which remains elevated close to double digits."

The German Dec import price index was unch m/m and fell -2.3% y/y, weaker than expectations of +0.2% m/m and -2.2% y/y and the twelfth consecutive month that prices have fallen on a year-over-year basis.

UK Q4 GDP rose +0.7% q/q and +2.8% y/y, right on expectations.

The UK Nov index of services climbed +0.4% m/m and +0.8% 3-mo/3-mo, higher than expectations of +0.3% m/m and +0.7% 3-mo/3-mo.

China Dec industrial profits rose +12.2% year-to-date y/y, the smallest increase in 5-months.

U.S. STOCK PREVIEW

The market consensus is that the FOMC at its 2-day meeting that starts today will taper its QE3 program by another $10 billion to $65 billion per month. Today's Nov S&P/CaseShiller home price index is expected to show an increase of +0.80% m, which would be a bit smaller than the +1.05% increase seen in October. Today's Jan U.S. consumer confidence index from the Conference Board is expected to show a -0.1 point decline to 78.0, falling back slightly after the +6.1 point surge to 78.1 seen in December. Today's Dec durable goods orders report is expected to show a solid increase of +1.8% and +0.6% ex-transportation, adding to November's increases of +3.4% and +1.2% ex-transportation. Today's Jan Richmond Fed manufacturing index is expected to be unchanged at 13, remaining at 13 for the third straight month. The Treasury today will kick off this week's $111 billion T-note package by selling $32 billion in 2-year T-notes.

There are 23 of the S&P 500 companies that report earnings today. Notable reports include AT&T (consensus $0.51), Comcast (0.68), Ford (0.28), Pfizer (0.52), Yahoo (0.38), Electronic Arts (1.23), Amgen (1.69). Equity conferences this week include: Real World Evidence on Mon-Wed, Stifel Nicolaus Senior Housing and Healthcare Real Estate Conference on Tue, Canadian Power Finance Conference on Tue, and Cloudcast'14 on Thu.

OVERNIGHT U.S. STOCK MOVERS

DR Horton (DHI +0.29%) reported Q1 EPS od 36 cents, stronger than consensus of 30 cents.

Corning (GLW +0.05%) reported Q4 EPS of 29 cents, higher than consensus of 28 cents.

Pfizer (PFE -1.43%) reported Q4 EPS of 56 cents, better than consensus of 52 cents.

Ford Motor (F -0.76%) reported Q4 EPS of 31 cents, higher than consensus of 28 cents.

EI du Pont de Nemours (DD +0.45%) reported Q4 EPS of 59 cents, stronger than consensus of 55 cents.

Danaher (DHR -0.04%) reported Q4 EPS of 96 cents, better than consensus of 95 cents.

Comcast (CMCSA +0.17%) climbed 3% in European trading after people familiar with the matter said the company may buy Charter's cable assets in New York City, North Carolina and New England. The sale is contingent upon shareholder approval of Charter's takeover bid for Time Warner Cable.

The New York Times reported that Martin Marietta (MLM -1.48%) will acquire Texas Industries (TXI -4.69%) for $72 per share.

STMicroelectronics (STM +0.79%) reported a Q4 adjusted EPS loss of -1 cent, weaker than consensus of a 4 cent gain.

Rent-A-Center (RCII +0.61%) plunged 13% in after-hours trading after it reported Q4 EPS of 25 cents, well below consensus of 75 cents. and then lowered guidance on fiscal 2014 EPS to $2.30-$2,50, below consensus of $3.20.

Apple (AAPL +0.81%) tumbled 7% in after-hours trading after it reported Q1 EPS of $14.50, well ahead of consensus of$14.09, but then said it sees Q2 revenue of $42 billion-$44 billion, below consensus of $46.05 billion.

Swift Transport (SWFT -4.05%) reported Q4 EPS of 36 cents, higher than consensus of 35 cents.

Sanmina (SANM -2.89%) reported Q1 EPS of 41 cents, better than consensus of 38 cents.

Seagate (STX -0.89%) slid 6% in after-hours trading after it reported Q2 EPS of $1.32, weaker than consensus of $1.38.

MARKET COMMENTS

Mar E-mini S&Ps (ESH14 +0.35%) this morning are up +8.50 points (+0.48%). The S&P 500 on Monday erased an early rally and fell to a 1-1/4 month low to finally close lower. Negative factors for stocks included (1) the -7.0% decline in U.S. Dec new home sales to 414,000, a bigger decline than expectations of -1.9% to 455,000, and (2) concern that the slump in emerging-market currencies will lead to a slowdown in the global economy. Limiting declines in stocks is strong Q4 stock earnings results with 74% of the 125 S&P 500 companies that have reported earnings results thus far beating expectations. Closes: S&P 500 -0.49%, Dow Jones -0.26%, Nasdaq 100 -0.92%.

Mar 10-year T-notes (ZNH14 -0.04%) this morning are down -3.5 ticks. Mar 10-year T-note futures prices on Monday settled lower. Weakness in stocks boosted safe-haven demand for T-notes in early trade, but concern the Fed will taper its monthly bond purchases by -$10 billion when it concludes its 2-day FOMC meeting on Wed took T-note prices lower. Closes: TYH4 --8.0, FVH4 -3.25.

The dollar index (DXY00 +0.22%) this morning is up +0.167 (+0.21%). EUR/USD (^EURUSD) is down -0.0031 (-0.23%). USD/JPY (^USDJPY) is up +0.60 (+0.59%). The dollar index on Monday closed slightly higher. EUR/USD fell back on European banking concerns after Italian bank stocks slumped when Banco Poplare, Italy's fourth biggest bank, announced an unexpected loss and plans for a capital increase, which spurred concern about the quality of assets in Italian banks. USD/JPY recovered from a 1-1/2 month low after the yen weakened when Japan's Dec exports rose less than expected and after Japan's Dec trade deficit widened by the most in 11 months. Closes: Dollar index +0.066 (+0.08%), EUR/USD -0.00038 (-0.03%), USD/JPY +0.288 (+0.28%).

Mar WTI crude oil (CLH14 +0.44%) this morning is up +51 cents (+0.53%) and Mar gasoline (RBH14 +0.30%) is up +0.0098 (+0.37%). Mar crude oil and gasoline prices on Monday closed lower on bearish factors that included (1) the slide in the S&P 500 to a 1-1/4 month low, reducing confidence in the economic outlook and energy demand, (2) the larger-than-expected decline in U.S. Dec home sales, which fueled concern the economy will slow, and (3) speculation the Fed will taper QE3 further this week, which may boost the dollar and reduce investment demand in commodities, including crude oil. Closes: CLH4 -0.02 (-0.95%), RBH4 -0.0377 (-1.41%).

GLOBAL EVENT CALENDAR01/28/2014

US 0830 ET Dec durable goods orders expected +1.8% and +0.6% ex transportation, Nov +3.4% and +1.2% ex transportation. Dec non-defense capital goods orders ex-transportation expected +0.3%, Nov +4.1%.
  0900 ET Nov S&P/CaseShiller home price index expected +0.81% m/m and +13.76% y/y, Oct +1.05% m/m and +13.61% y/y.
  1000 ET Jan U.S. consumer confidence (Conference Board) expected -0.1 to 78.0, Dec +6.1 to 78.1.
  1000 ET Jan Richmond Fed manufacturing index expected unch at 13, Dec unch at 13.
  1030 ET FOMC begins 2-day meeting.
  1300 ET Treasury auctions $32 billion 2-year T-notes.
  2100 ET President Obama delivers his State of the Union Address.
GER 0200 ET German Dec import price index expected +0.2% m/m and -2.2% y/y, Nov +0.1% m/m and -2.9% y/y.
UK 0430 ET UK Q4 GDP expected +0.7% q/q and +2.8% y/y, Q3 +0.8% q/q and +1.9% y/y.
  0430 ET UK Nov index of services expected +0.3% m/m and +0.7% 3-mo/3-mo, Oct +0.1% m/m and +0.8% 3-mo/3-mo.
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U.S. STOCK CALENDAR01/28/2014

Company Name Ticker Time Event Description Period Estimate
Pentair Ltd PNR US Bef-mkt Q4 2013 Earnings Release Q4 2013 0.845
Air Products & Chemicals Inc APD US Bef-mkt Q1 2014 Earnings Release Q1 2014 1.333
Nucor Corp NUE US Bef-mkt Q4 2013 Earnings Release Q4 2013 0.404
Pfizer Inc PFE US Bef-mkt Q4 2013 Earnings Release Q4 2013 0.522
T Rowe Price Group Inc TROW US Bef-mkt Q4 2013 Earnings Release Q4 2013 1.034
DR Horton Inc DHI US Bef-mkt Q1 2014 Earnings Release Q1 2014 0.296
Corning Inc GLW US Bef-mkt Q4 2013 Earnings Release Q4 2013 0.275
NextEra Energy Inc NEE US Bef-mkt Q4 2013 Earnings Release Q4 2013 0.965
Danaher Corp DHR US 6:00 Q4 2013 Earnings Release Q4 2013 0.954
EI du Pont de Nemours & Co DD US 6:00 Q4 2013 Earnings Release Q4 2013 0.547
Harris Corp HRS US 6:30 Q2 2014 Earnings Release Q2 2014 1.178
Ford Motor Co F US 7:00 Q4 2013 Earnings Release Q4 2013 0.276
Waters Corp WAT US 7:00 Q4 2013 Earnings Release Q4 2013 1.612
Comcast Corp CMCSA US 7:00 Q4 2013 Earnings Release Q4 2013 0.679
Danaher Corp DHR US 8:00 Q4 2013 Earnings Call Q4 2013  
Illinois Tool Works Inc ITW US 8:00 Q4 2013 Earnings Release Q4 2013 0.913
Corning Inc GLW US 8:30 Q4 2013 Earnings Call Q4 2013  
Waters Corp WAT US 8:30 Q4 2013 Earnings Call Q4 2013  
Comcast Corp CMCSA US 8:30 Q4 2013 Earnings Call Q4 2013  
Harris Corp HRS US 8:30 Q2 2014 Earnings Call Q2 2014  
Pentair Ltd PNR US 9:00 Q4 2013 Earnings Call Q4 2013  
EI du Pont de Nemours & Co DD US 9:00 Q4 2013 Earnings Call Q4 2013  
Ford Motor Co F US 9:00 Q4 2013 Earnings Call C4 2013  
NextEra Energy Inc NEE US 9:00 Q4 2013 Earnings Call Q4 2013  
Air Products & Chemicals Inc APD US 10:00 Q1 2014 Earnings Call Q1 2014  
Pfizer Inc PFE US 10:00 Q4 2013 Earnings Call Q4 2013  
DR Horton Inc DHI US 10:00 Q1 2014 Earnings Call Q1 2014  
Illinois Tool Works Inc ITW US 10:00 Q4 2013 Earnings Call Q4 2013  
Ford Motor Co F US 11:00 Q4 2013 Earnings Call - Fixed Income Q4 2013  
Becton Dickinson and Co BDX US 13:00 Annual General Meeting Y 2014  
Nucor Corp NUE US 14:00 Q4 2013 Earnings Call Q4 2013  
Monsanto Co MON US 14:30 Annual General Meeting Y 2014  
Total System Services Inc TSS US 16:00 Q4 2013 Earnings Release Q4 2013 0.473
United States Steel Corp X US 16:00 Q4 2013 Earnings Call Q4 2013  
AT&T Inc T US 16:30 Q4 2013 Earnings Call Q4 2013  
Total System Services Inc TSS US 17:00 Q4 2013 Earnings Call Q4 2013  
Yahoo! Inc YHOO US 17:00 Q4 2013 Earnings Call Q4 2013  
Electronic Arts Inc EA US 17:00 Q3 2014 Earnings Call Q3 2014  
Amgen Inc AMGN US 17:00 Q4 2013 Earnings Call Q4 2013  
Owens-Illinois Inc OI US Aft-mkt Q4 2013 Earnings Release Q4 2013 0.523
AT&T Inc T US Aft-mkt Q4 2013 Earnings Release Q4 2013 0.506
ACE Ltd ACE US Aft-mkt Q4 2013 Earnings Release Q4 2013 2.015
Boston Properties Inc BXP US Aft-mkt Q4 2013 Earnings Release Q4 2013 1.246
Yahoo! Inc YHOO US Aft-mkt Q4 2013 Earnings Release Q4 2013 0.383
Electronic Arts Inc EA US Aft-mkt Q3 2014 Earnings Release Q3 2014 1.231
Amgen Inc AMGN US Aft-mkt Q4 2013 Earnings Release Q4 2013 1.689
Hormel Foods Corp HRL US 21:00 Annual General Meeting Y 2014  
Verizon Communications Inc VZ US   Special Meeting    
Hormel Foods Corp HRL US   Annual General Meeting    
Merck & Co Inc MRK US   FDA Adcomm, Ragwitek, ragweed pollen allergy, immunotherapy tablet
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Stocks: DHI, GLW, PFE, F, DD, DHR, CMCSA, MLM, TXI, STM, RCII, NUE, TROW, NEE, HRS, WAT, ITW, BDX, MON, TSS, X, T, YHOO, EA, AMGN, OI, HRL, VZ, MRK