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 3/3 0 comments
    Mar 3, 2014 10:03 AM | about stocks: ADSK, SPN, DRI, TYC, INTU, USM, MGA, LVS, RTN, HLF, DRC, CTB, FBIO, MILL, NUS, WPC, BMRN, SSYS, F, ROC, ASNA, MDR, URS, MBI

    BARCHART MORNING CALL

    Monday, March 3rd, 2014View 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 -1.05%) this morning are down -1.10% and European stocks are down sharply by -2.69% after Russian troops seized control of Ukraine's Crimea region. The situation threatens to escalate after Russian servicemen attacked Ukrainian army units in the last 24 hours, according to Ukraine's border guard service. U.S. Secretary of State Kerry is traveling to Kiev after discussing sanctions against Russia, and European Union foreign ministers will hold an emergency meeting. The Russian ruble tumbled to a record low, which prompted Bank Rossii, Russia's central bank, to unexpectedly hike the 1-week auction rate, the benchmark rate introduced in Sep, by 150 bp to 7.00%. Asian stocks closed mostly lower: Japan -1.27%, Hong Kong -1.47%, China +0.52%, Taiwan -0.44%, Australia -0.38%, Singapore -0.75%, South Korea -0.82%, India -0.82%. Commodity prices are sharply higher as escalating tension in Ukraine fuel concern that energy and agricultural supplies will be disrupted. Apr crude oil (CLJ14 +2.00%) is up +1.94% at a 5-1/4 month high. Apr gasoline (RBJ14 +1.95%) is up +1.97%. Apr gold (GCJ14 +1.82%) is up +1.73% at a 4-month high on increased safe-haven demand from the Ukraine crisis. May copper (HGK14 -0.71%) is down -0.86% at a 3-1/2 month low after manufacturing activity in China weakened to its slowest pace in 8-months. Agriculture prices are sharply higher with May corn up +3.24% at a 5-3/4 month high and May wheat up +5.35% at a 2-1/2 month high. The dollar index (DXY00 +0.27%) is up +0.24%. EUR/USD (^EURUSD) is down -0.29%. USD/JPY (^USDJPY) is down -0.53%. June T-note prices (ZNM14 +0.36%) are up +16 ticks on surge in safe-haven demand as global stocks slump on the Ukraine crisis.

    The China Feb manufacturing PMI fell -0.3 to 50.2, a smaller decline than expectations of -0.4 to 50.1, but still the slowest pace of expansion in 8-months. The Feb non-manufacturing PMI rose +1.6 to 55.0.

    The German Feb PMI manufacturing index was revised up to 54.8 from the originally reported 54.7.

    The Eurozone Feb manufacturing PMI index was revised higher to 53.2 from the originally reported 53.0.

    The UK Feb PMI manufacturing index rose +0.3 to 56.9 from an upward revised 56.6 in Jan, a faster pace of expansion than expectations of +0.1 to 56.8.

    UK Jan mortgage approvals rose 76,900, more than expectations of 74,500 and the most in 6-years.

    UK Jan net consumer credit rose +0.7 billion pounds, right on expectations.

    U.S. STOCK PREVIEW

    Today's Feb ISM manufacturing index is expected to show a recovery of +0.7 points to 52.0 after the sharp -5.2 point drop to 51.3 seen in January. Today's Feb total vehicle sales report is expected to improve to 15.40 million from 15.16 million in January. Today's Jan personal income and consumption report is expected to be modest and show increases of +0.2% and +0.1%, respectively. Today's Jan PCE deflator is expected to be unchanged from December at +1.1% y/y. Meanwhile, the Jan core PCE deflator is expected to ease to +1.1% y/y from +1.2% in December. There are 8 of the Russell 1000 companies that report earnins today: Nu Skin Enterprises (consensus $2.01), WP Carey (0.79), Ascena Retail Group (0.21), MBIA (0.17), McDermott International (0.16), URS Corp (0.18), Rockwood Holdings (0.32), Stratasys (0.49).

    Equity conferences this week include: Morgan Stanley Utilities Conference on Mon, Citi Korea Investor Conference on Mon, JMP Securities Technology Research Conference on Mon-Tue,
    Morgan Stanley Technology, Media & Telecom Conference on Mon-Thu, Citi Global Property CEO Conference on Mon-Wed, Cowen & Co. Healthcare Conference on Mon-Wed, Raymond James Institutional Investor Conference on Mon-Wed, Credit Suisse Healthcare Conference on Tue, IHS Energy CERAWeek Conference on Tue, UBS Natural Gas Electric Power and MLP Conference, Morgan Stanley European Medtech & Services Conference on Tue-Wed, Canadian Energy Research Institure (CERI) National Gas Conference on Tue, Pacific Crest Emerging Tech Summit conference on Wed, ISI Enterprise Infrastructure Conference on Wed, Mitsubishi Seattle Consumer Conference on Wed, Seattle Consumer Conference on Wed, Bank of America Merrill Lynch Refining Conference on Thu, and Jefferies Industrial Leaders Day on Thu.

    OVERNIGHT U.S. STOCK MOVERS

    Autodesk (ADSK -3.32%) was downgraded to 'Sell' from 'Neutral' at Citigroup.

    Superior Energy (SPN +2.00%) was downgraded to 'Neutral' from 'Buy' at Guggenheim.

    Darden (DRI +2.53%) lowered guidance on Q3 EPS to 82 cents, below consensus of 93 cents, citing severe winter weather that undercut restaurant sales.

    Tyco (TYC -0.66%) said it will sell its security business in South Korea to Carlyle Group (CG +0.58%) for $1.93 billion.

    Intuit INTU=}) was upgraded to 'Buy' from 'Neutral' at Citigroup.

    U.S. Cellular (USM -3.81%) and Telephone and Data (TDS -2.36%) were both upgraded to 'Overweight' from 'Neutral' at JPMorgan.

    Magna (MGA +2.21%) reported Q4 EPS of $2.03, well above consensus of $1.54.

    Bloomberg reported that Las Vegas Sands (LVS +0.14%) said customer data was stolen recently in a cyber-attack on systems at its Pennsylvania property.

    Raytheon (RTN +0.33%) was awarded $655.41 million government contract for two PATRIOT fire units and associated initial spares for the military of Kuwait.

    In a regulatory filing, billionare investor Carl Icahn disclosed the purchase of an additional 33,515 shares of Herbalife (HLF -1.01%) .

    VA Partners reported a 6.6% stake in Dresser-Rand (DRC +0.06%) .

    Cooper Tire (CTB +0.08%) reported Q3 EPS of 0 cents, well below consensus of 38 cents, as the company said there was unusual items related to the terminated merger agreement with Apollo Tyres.

    Moody's Investors Service raised its outlook on Germany's Aaa government bond rating to stable from negative.

    Michael Weiss reported a 15.0% stake in Coronado (CNDO -3.73%) .

    River Road Asset reported a 9.2% stake in Miller Energy (MILL +0.73%) .

    MARKET COMMENTS

    Mar E-mini S&Ps (ESH14 -1.05%) this morning are down sharply by -20.50 points (-1.10%) as escalating tensions in Ukraine prompts a sell-off in global stocks. The S&P 500 on Friday opened lower after U.S. Q4 GDP was revised lower to +2.4% from +3.2%, which was a slightly larger decline than expectations of +2.5%. Stocks recovered and rallied to a fresh record high and closed higher, however, on bullish factors that included (1) the unexpected +0.2 point rise in the Chicago Feb PMI that to 59.8, better than expectations of -3.2 to 56.4, and (2) the +0.4 point increase in the final-Feb University of Michigan U.S. consumer confidence index to 81.6, stronger than expectations of unch at 81.2. Closes: S&P 500 +0.49%, Dow Jones +0.46%, Nasdaq 100 +0.63%.

    Jun 10-year T-notes (ZNM14 +0.36%) this morning are up +16 ticks at a 1-month high. Jun 10-year T-note futures prices Friday fell back from a 1-month high and closed lower. Bearish factors included (1) signs of economic growth after the unexpected increases in the Feb Chicago PMI and the U.S. Feb University of Michigan consumer confidence, and (2) the rally in the S&P 500 to a record high, which reduced safe-haven demand for T-notes. Closes: TYM4 -7.00, FVM4 -3.75.

    The dollar index (DXY00 +0.27%) this morning is up +0.192 (+0.24%). EUR/USD (^EURUSD) is down -0.004 (-0.29%). USD/JPY (^USDJPY) is down -0.54 (-0.53%). The dollar index on Friday fell to a 2-month low and closed lower. Negative factors included (1) the rally in the S&P 500 to a record high, which reduced safe-haven demand for the dollar, and (2) strength in EUR/USD, which rallied to a 2-month high after the Feb Eurozone CPI estimate of +0.8% y/y was higher than expectations of +0.7% y/y and dampened speculation the ECB will expand its stimulus measures when it meets on Thursday. Closes: Dollar index -0.594 (-0.74%), EUR/USD +0.00912 (+0.67%), USD/JPY -0.384 (-0.38%).

    Apr WTI crude oil (CLJ14 +2.00%) this morning is up +$1.99 a barrel (+1.94%) at a 5-1/4 month high and Apr gasoline (RBJ14 +1.95%) is up +0.0588 (+1.97%). Apr crude and gasoline prices Friday closed higher. Bullish factors included (1) the slide in the dollar index to a 2-month low, (2) the unexpected increase in the Feb Chicago PMI, and (3) the unexpected increase in the U.S. Feb University of Michigan consumer confidence. Gains were limited after U.S. Q4 GDP was revised lower than expected, a sign of weaker energy demand. Closes: CLJ4 +0.19 (+0.19%), RBJ4 +0.0169 (+0.57%).

    GLOBAL EVENT CALENDAR03/03/2014

    US 0830 ET Jan personal spending expected +0.1%, Dec +0.4%. Jan personal income expected +0.2%, Dec unch. Jan PCE deflator expected +0.1% m/m and +1.1% y/y, Dec +0.2% m/m and +1/1% y/y. Jan PCE core deflator expected +0.1% m/m and +1.1% y/y, Dec +0.1% m/m and +1.2% y/y.
      1000 ET Feb ISM manufacturing index expected +0.7 to 52.0, Jan -5.2 to 51.3. Feb ISM prices paid expected -3.1 to 57.4, Jan +7.0 to 60.5. Feb ISM new orders sub-index, Jan -13.2 to 51.2.
      1000 ET Jan construction spending expected -0.5% m/m, Dec +0.1% m/m.
      1100 ET USDA weekly grain export inspections.
      n/a Feb total vehicle sales expected 15.40 million, Jan 15.16 million. Feb domestic vehicle sales expected 11.90 million, Jan 11.94 million.
    JPN 0000 ET Japan Feb vehicle sales, Jan +27.5% y/y.
      2030 ET Japan Jan labor cash earnings expected +0.3% y/y, Dec +0.5% y/y.
    GER 0355 ET Revised German Feb PMI manufacturing, previous 54.7.
    EUR 0400 ET Revised Eurozone Feb PMI manufacturing, previous 53.0.
      0900 ET ECB President Mario Draghi speaks at the Quarterly Hearing before the Committee on Economic and Monetary Affairs of the European Parliament.
    UK 0430 ET UK Feb PMI manufacturing expected +0.3 to 57.0, Jan 56.7.
      0430 ET UK Jan net consumer credit expected +0.7 billion pounds, Dec +0.6 billion pounds.
      0430 ET UK Jan mortgage approvals expected 74,500, Dec 71,600.
      0430 ET UK Jan M4 money supply, Dec -1.4% m/m and +0.2% y/y.

    U.S. STOCK CALENDAR03/03/2014

    Company Name Ticker Time Event Description Period Estimate
    Nu Skin Enterprises Inc NUS US 3/3/2014 Q4 2013 Earnings Release Q4 2013 2.012
    WP Carey Inc WPC US 3/3/2014 Q4 2013 Earnings Release Q4 2013 0.79
    BioMarin Pharmaceutical Inc BMRN US 3/3/2014 Q4 2013 Earnings Call Q4 2013  
    Stratasys Ltd SSYS US 3/3/2014 Q4 2013 Earnings Call Q4 2013  
    Ford Motor Co F US 3/3/2014 February 2014 Sales and Revenue Release 2014  
    Ford Motor Co F US 3/3/2014 February 2014 Sales and Revenue Call 2014  
    Rockwood Holdings Inc ROC US 3/3/2014 Q4 2013 Earnings Call Q4 2013  
    Nu Skin Enterprises Inc NUS US 3/3/2014 Q4 2013 Earnings Call Q4 2013  
    WP Carey Inc WPC US 3/3/2014 Q4 2013 Earnings Call Q4 2013  
    Ascena Retail Group Inc ASNA US 3/3/2014 Q2 2014 Earnings Release Q2 2014 0.213
    Ascena Retail Group Inc ASNA US 3/3/2014 Q2 2014 Earnings Call Q2 2014  
    McDermott International Inc MDR US 3/3/2014 Q4 2013 Earnings Call Q4 2013  
    URS Corp URS US 3/3/2014 Q4 2013 Earnings Call Q4 2013  
    MBIA Inc MBI US 3/3/2014 Q4 2013 Earnings Release Q4 2013 0.17
    McDermott International Inc MDR US 3/3/2014 Q4 2013 Earnings Release Q4 2013 0.163
    URS Corp URS US 3/3/2014 Q4 2013 Earnings Release Q4 2013 0.175
    Rockwood Holdings Inc ROC US 3/3/2014 Q4 2013 Earnings Release Q4 2013 0.321
    Stratasys Ltd SSYS US 3/3/2014 Q4 2013 Earnings Release Q4 2013 0.494
    Stocks: ADSK, SPN, DRI, TYC, INTU, USM, MGA, LVS, RTN, HLF, DRC, CTB, FBIO, MILL, NUS, WPC, BMRN, SSYS, F, ROC, ASNA, MDR, URS, MBI
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

  • $EXEL - 96% technical buy signals - 16 new highs and up 39.23% in the last month = Relative Strength Index 86.09
    1 day ago
  • $FARM = 100% technical buy signals - 19 new highs and up 19.51% in the last month - Relative Strength Index 82.78%
    4 days ago
  • $WIN - 96% technical buy signals - 16 new highs and up 19.76% in the last month - Relative Strength index 75.56%
    4 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.