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BARCHART MORNING CALL 4/22

|Includes:AIZ, AMGN, APD, APH, AVB, AVY, BA, BCR, BIIB, CCI, CREE, CVA, DAL, DFS, DOW, DVMT, EFX, ETFC, ETN, FB, FLS, FTI, GCI, GD, GILD, IGT, ILMN, IR, JCI, JNPR, LRCX, NOC, NSC, The Procter & Gamble Company (PG), PX, R, RAI, SKX, T, TEL, TMO, TSCO, TXT, VAR, VMW, WRB, XLNX, YUM

BARCHART MORNING CALL

Wednesday, April 23rd, 2014View Older Reports

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OVERNIGHT MARKETS AND NEWS

June E-mini S&Ps (ESM14 -0.12%) this morning are down -0.12% and European stocks are down -0.30% on concern over Chinese economic growth after a gauge of manufacturing activity in China contracted for a fourth month. Another negative for European equities is the slide in technology stocks led by a -4.7% decline in Ericsson AB after the world's biggest maker of wireless networks reported quarterly profit that was below consensus. On the positive side, the Eurozone Apr Markit composite PMI expanded at its fastest pace in 2-3/4 years, and the Eurozone sovereign debt crisis continues to recede as the yield on Portugal's 10-year bond dropped to an 8-year low of 3.63% after the government sold 750 million euros of 10-year securities, the first government bond auction since Portugal requested financial aid three years ago. Asian stocks closed mixed: Japan +1.09%, Hong Kong -0.97%, China -0.10%, Taiwan -0.20%, Australia +0.70%, Singapore -0.60%, South Korea -0.13%, India +0.52%. Commodity prices are mixed. Jun crude oil (CLM14 -0.14%) is down -0.32% at a 1-week low on expectations for U.S. crude supplies to increase for the thirteenth time in fourteen weeks when the EIA reports weekly crude inventories later today. Jun gasoline (RBM14 +0.09%) is up +0.09%. Jun gold (GCM14 +0.44%) is up +0.49%. May copper (HGK14 -0.49%) is down -0.41%. Agriculture and livestock prices are weaker. The dollar index (DXY00 -0.22%) is down -0.22%. EUR/USD (^EURUSD) is up +0.28%. USD/JPY (^USDJPY) is down -0.35%. June T-note prices (ZNM14 +0.15%) are up +6.5 ticks.

The Eurozone Apr Markit manufacturing PMI rose +0.3 to 53.3, better than expectations of no change at 53.0. The Apr Markit composite PMI unexpectedly rose +0.9 to 54.0, better than expectations of -0.1 to 53.0 and the fastest pace of expansion in 2-3/4 years.

The German Apr Markit/BME manufacturing PMI rose +0.5 to 54.2, better than expectations of +0.1 to 53.8. The Apr Markit/BME composite PMI unexpectedly rose +2.0 to 56.3, stronger than expectations of -0.3 to 54.0.

UK Mar public sector net borrowing increased by 4.9 billion pounds, less than expectations of 8.5 billion pounds.

UK Apr CBI trends total orders dropped -7 points to -1, weaker than expectations of +1 point to 7. Apr CBI business optimism rose +12 to 33, better than expectations of +4 to 25 and the highest in 41 years.

The China Apr HSBC manufacturing PMI rose +0.3 to 48.3, right on expectations.

U.S. STOCK PREVIEW

Today's March new home sales report is expected to show an increase of +2.3% to 450,000, recovering somewhat from the -3.3% decline to 440,000 seen in February. The Treasury today will sell $35 billion of 5-year T-notes. There are 41 of the S&P 500 companies that report earnings today. Notable reports include Apple (consensus $10.17), Facebook ($0.24), Texas Instrument (0.41), Procter & Gamble (1.02), General Dynamics (1.64), Johnson Controls (0.65). There are no equity conferences during the remainder of this week.

OVERNIGHT U.S. STOCK MOVERS

Procter & Gamble (PG -0.38%) reported Q3 EPS of $1.04, higher than consensus of $1.02.

Northrop Grumman (NOC -1.98%) reported Q1 EPS of $2.63, much better than consensus of $2.15.

Yum! Brands (YUM +1.93%) gained almost 3% in after-hours trading after it reported Q1 EPS ex-items of 87 cents, higher than consensus of 85 cents, and said Q1 same-store-sales in its China division were up 9%.

Boeing (BA -0.21%) announced that Shandong Airlines commits to order fifty 737s.

W. R. Berkley (WRB +0.22%) reported Q1 EPS of $1.25, well ahead of consensus of 79 cents.

Illumina (ILMN +4.79%) rose 6% in after-hours trading after it reported Q1 adjusted EPS of 53 cents, stronger than consensus of 44 cents, and then raised guidance on fiscal 2014 EPS view to $2.10-$2.15, higher than consensus of $2.05.

International Game (IGT +0.50%) reported Q2 adjusted EPS of 20 cents, higher than consensus of 19 cents.

Discover (DFS -0.18%) reported Q1 EPS of $1.31, better than consensus of $1.25.

C.R. Bard (BCR -0.01%) reported Q1 adjusted EPS $1.91, higher than consensus of $1.84.

Skechers (SKX +2.64%) reported Q1 EPS of 61 cents, nearly double consensus of 33 cents.

FMC Technologies (FTI +0.18%) reported Q1 EPS of 57 cents, higher than consensus of 50 cents.

Covanta (CVA +1.18%) reported a Q1 adjusted EPS loss of -3 cents, five times better than consensus of a -15 cent loss.

Juniper (JNPR +1.85%) reported Q1 adjusted EPS of 29 cents, right on consensus, but reported Q1 revenue of $1.17 billion, better than consensus of $1.15 billion.

Amgen (AMGN +1.95%) lost nearly 3% in after-hours trading after it reported Q1 EPS of $1.87, below consensus of $1.94.

Gilead (GILD +1.76%) climbed nearly 4% in pre-market trading after it reported Q1 EPS of $1.48, well above consensus of 89 cents.

Cree (CREE +0.85%) reported Q3 EPS of 39 cents, better than consensus of 38 cents.

VMware (VMW +0.30%) reported Q1 EPS of 80 cents, higher than consensus of 79 cents.

AT&T (T +0.64%) fell over 2% in pre-market trading even after it reported Q1 adjusted EPS of 71 cents, better than consensus of 70 cents.

MARKET COMMENTS

June E-mini S&Ps (ESM14 -0.12%) this morning are down -2.25 points (-0.12%). The S&P 500 index on Tuesday climbed to a 2-week high and closed higher. Supportive factors included (1) the -0.2% decline in U.S. Mar existing home sales to 4.59 million, stronger than expectations of -1.0% to 4.56 million, (2) the +14 point increase in the Apr Richmond Fed manufacturing index to 7, stronger than expectations of +9 to 2, and (3) strength in drug makers that rallied on increased M&A activity as more than $28 billion in M&A deals bolstered speculation of more takeovers in the drug sector. Closes: S&P 500 +0.41%, Dow Jones +0.40%, Nasdaq +0.81%.

Jun 10-year T-notes (ZNM14 +0.15%) this morning are up +6.5 ticks. Jun 10-year T-note futures prices on Tuesday fell to a 2-week low and closed lower. Bearish factors included (1) the rally in stocks which reduced the safe-haven demand for Treasuries, and (2) supply pressures as the Treasury auctions $96 billion of T-notes this week. Closes: TYM4 -3.50, FVM4 -3.50.

The dollar index (DXY00 -0.22%) this morning is down -0.174 (-0.22%). EUR/USD (^EURUSD) is up +0.0038 (+0.28%). USD/JPY (^USDJPY) is down -0.36 (-0.35%). The dollar index on Tuesday closed lower after a rally in the S&P 500 to a 2-week high reduced the safe-haven demand for the dollar. EUR/USD closed higher after Eurozone Apr consumer confidence rose +0.6 to -8.7, better than expectations of unch at -9.3 and the highest in 6-1/2 years. Closes: Dollar index -0.040 (-0.05%), EUR/USD +0.0012 (+0.09%), USD/JPY +0.014 (+0.01%).

Jun WTI crude oil (CLM14 -0.14%) this morning is down -33 cents (-0.32%) at a 1-week low and Jun gasoline (RBM14 +0.09%) is up +0.0027 (+0.09%). Jun crude and gasoline prices on Tuesday closed lower with Jun crude oil at a 1-1/2 week low. The main bearish factor was long liquidation spurred on by expectations that weekly EIA crude inventories on Wed will climb by 3 million bbl to a new 9-1/2 month high, the thirteenth increase in the last fourteen weeks. Closes: CLM4 -1.90 (-1.83%). RBM4 -0.0003 (-0.01%).

GLOBAL EVENT CALENDAR04/23/2014

US 0700 ET Weekly MBA mortgage applications, previous +4.3% with purchase sub-index +1.3% and refi sub-index +6.9%.
  0945 ET Markit Apr manufacturing PMI expected +0.5 to 56.0, Mar 55.5.
  1000 ET Mar new home sales expected +2.3% to 450,000, Feb -3.3% to 440,000.
  1030 ET EIA Weekly Petroleum Status Report.
  1300 ET Treasury auctions $35 billion 5-year T-notes.
GER 0330 ET German Apr Markit/BME manufacturing PMI expected +0.1 to 53.8, Mar 53.7. Apr composite PMI expected 0.3 to 54.0, Mar 54.3.
EUR 0400 ET Eurozone Apr Markit manufacturing PMI expected unch at 53.0, Mar 53.0. Apr composite PMI expected -0.1 to 53.0, Mar 53.1.
UK 0430 ET Minutes of the Apr 9-10 BOE policy meeting.
  0430 ET UK Mar public sector net borrowing expected 8.5 billion pounds, Feb 7.5 billion pounds.
  0600 ET UK Apr CBI trends total orders expected +1 to 7, Mar 6. Apr CBI trends selling prices expected -2 to 10, Mar 12. Apr CBI business optimism expected +4 to 25, Mar 21.
JPN 1950 ET Japan Mar corporate service price index expected +0.7% y/y, Feb +0.7% y/y.

U.S. STOCK CALENDAR04/23/2014

Company Name Ticker Time Event Description Period Estimate
Eaton Corp PLC ETN US 2:00 Annual General Meeting Y 2014  
Air Products & Chemicals Inc APD US Bef-mkt Q2 2014 Earnings Release Q2 2014 1.354
Northrop Grumman Corp NOC US Bef-mkt Q1 2014 Earnings Release Q1 2014 2.152
Dr Pepper Snapple Group Inc DPS US Bef-mkt Q1 2014 Earnings Release Q1 2014 0.592
Praxair Inc PX US Bef-mkt Q1 2014 Earnings Release Q1 2014 1.508
Procter & Gamble Co/The PG US Bef-mkt Q3 2014 Earnings Release Q3 2014 1.017
Boeing Co/The BA US Bef-mkt Q1 2014 Earnings Release Q1 2014 1.542
Ryder System Inc R US Bef-mkt Q1 2014 Earnings Release Q1 2014 0.87
Thermo Fisher Scientific Inc TMO US Bef-mkt Q1 2014 Earnings Release Q1 2014 1.401
Dow Chemical Co/The DOW US Bef-mkt Q1 2014 Earnings Release Q1 2014 0.707
Biogen Idec Inc BIIB US Bef-mkt Q1 2014 Earnings Release Q1 2014 2.555
Delta Air Lines Inc DAL US Bef-mkt Q1 2014 Earnings Release Q1 2014 0.287
Gannett Co Inc GCI US Bef-mkt Q1 2014 Earnings Release Q1 2014 0.46
General Dynamics Corp GD US Bef-mkt Q1 2014 Earnings Release Q1 2014 1.636
TE Connectivity Ltd TEL US Bef-mkt Q2 2014 Earnings Release Q2 2014 0.91
Johnson Controls Inc JCI US Bef-mkt Q2 2014 Earnings Release Q2 2014 0.649
Amphenol Corp APH US Bef-mkt Q1 2014 Earnings Release Q1 2014 0.957
Reynolds American Inc RAI US Bef-mkt Q1 2014 Earnings Release Q1 2014 0.738
EMC Corp/MA EMC US 7:00 Q1 2014 Earnings Release Q1 2014 0.349
Ingersoll-Rand PLC IR US 7:00 Q1 2014 Earnings Release Q1 2014 0.258
Norfolk Southern Corp NSC US 8:00 Q1 2014 Earnings Release Q1 2014 1.148
Biogen Idec Inc BIIB US 8:00 Q1 2014 Earnings Call Q1 2014  
Avery Dennison Corp AVY US 8:30 Q1 2014 Earnings Release Q1 2014 0.661
Procter & Gamble Co/The PG US 8:30 Q3 2014 Earnings Call Q3 2014  
Thermo Fisher Scientific Inc TMO US 8:30 Q1 2014 Earnings Call Q1 2014  
EMC Corp/MA EMC US 8:30 Q1 2014 Earnings Call Q1 2014  
TE Connectivity Ltd TEL US 8:30 Q2 2014 Earnings Call Q2 2014  
Norfolk Southern Corp NSC US 8:45 Q1 2014 Earnings Call Q1 2014  
Dow Chemical Co/The DOW US 9:00 Q1 2014 Earnings Call Q1 2014  
FMC Technologies Inc FTI US 9:00 Q1 2014 Earnings Call Q1 2014  
General Dynamics Corp GD US 9:00 Q1 2014 Earnings Call Q1 2014  
Reynolds American Inc RAI US 9:00 Q1 2014 Earnings Call Q1 2014  
Yum! Brands Inc YUM US 9:15 Q1 2014 Earnings Call Q1 2014  
Lam Research Corp LRCX US Aft-mkt Q3 2014 Earnings Release Q3 2014 1.165
Tractor Supply Co TSCO US Aft-mkt Q1 2014 Earnings Release Q1 2014 0.369
Crown Castle International Corp CCI US Aft-mkt Q1 2014 Earnings Release Q1 2014 1.12
Flowserve Corp FLS US Aft-mkt Q1 2014 Earnings Release Q1 2014 0.746
Equifax Inc EFX US Aft-mkt Q1 2014 Earnings Release Q1 2014 0.868
E*TRADE Financial Corp ETFC US Aft-mkt Q1 2014 Earnings Release Q1 2014 0.228
Varian Medical Systems Inc VAR US Aft-mkt Q2 2014 Earnings Release Q2 2014 1.028
Facebook Inc FB US Aft-mkt Q1 2014 Earnings Release Q1 2014 0.24
Xilinx Inc XLNX US Aft-mkt Q4 2014 Earnings Release Q4 2014 0.552
AvalonBay Communities Inc AVB US Aft-mkt Q1 2014 Earnings Release Q1 2014 1.628
Assurant Inc AIZ US Aft-mkt Q1 2014 Earnings Release Q1 2014 1.553
Cigna Corp CI US   Annual General Meeting    
Textron Inc TXT US   Annual General Meeting
Stocks: PG, NOC, YUM, BA, WRB, ILMN, IGT, DFS, BCR, SKX, FTI, CVA, JNPR, AMGN, GILD, CREE, VMW, T, ETN, APD, PX, R, TMO, DOW, BIIB, DAL, GCI, GD, TEL, JCI, APH, RAI, DVMT, IR, NSC, AVY, LRCX, TSCO, CCI, FLS, EFX, ETFC, VAR, FB, XLNX, AVB, AIZ, TXT