Seeking Alpha

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. He earned a BS in Accounting and Business Administration from Berry College; a Juris Doctorate from the Woodrow Wilson School of Law; and attended... More
My company:
Marketocracy Capital Management
My blog:
Barchart Portfolio Blogs
  • BARCHART MORNING CALL 6/10 0 comments
    Jun 10, 2014 8:44 AM | about stocks: TSN, SAIC, CL, TWTR, COP, UNP, URBN, HDS, LVS, NFLX, CHS, EBAY, FB, PBY, WPG, BANC, IGT, CASY, CVA, AMTD, MET, AAN, DDD, GM, WTM, BBY, ESS, ULTA, ADSK, TJX, LNT, UPS, JPTXF, AMCX, ENDP, LNKD, KAR, SPLK, PF

    BARCHART MORNING CALL

    Tuesday, June 10th, 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

    June E-mini S&Ps (ESM14 -0.23%) this morning are down -0.17% as they fall back from Monday's record high, although European stocks are up +0.25% at a 5-3/4 year high after UK industrial production rose at its fastest annual pace in over 3 years. Asian stocks closed mixed: Japan -0.85%, Hong Kong +0.86%, China +1.26%, Taiwan +0.65%, Australia +0.10%, Singapore -0.34%, South Korea +1.14%, India +0.01%. Chinese stocks rallied as the Shanghai Stock Index climbed to its best level in a week after the PBOC announced a -0.5 point cut in reserve requirements for some banks in a policy move aimed at supporting smaller companies and agriculture. Commodity prices are mixed. July crude oil (CLN14 +0.34%) is up +0.35% at a 3-week high on expectations that Wednesday's weekly EIA inventory data will show crude stockpiles fell -1.5 million bbl. July gasoline (RBN14 +0.16%) is up +0.14%. Aug gold (GCQ14 +0.09%) is down -0.08%. July copper (HGN14 -0.31%) is down -0.51%. Agriculture and livestock prices are mostly higher. The dollar index (DXY00 +0.17%) is up +0.20%. EUR/USD (^EURUSD)is down -0.38%. USD/JPY (^USDJPY) is down -0.20%. Sep T-note prices (ZNU14 -0.08%) are down -2 ticks.

    The People's Bank of China (PBOC) announced that effective Jun 16, it will cut the reserve requirement by -0.5 of a percentage point for two-thirds of city commercial banks, 80% of non-county level rural commercial banks and 90% on non-county rural cooperative banks in a policy move aimed at supporting smaller companies and agriculture.

    China May CPI rose +2.5% y/y, more than expectations of +2.4% y/y. May PPI fell -1.4% y/y, less than expectations of -1.5% y/y.

    UK Apr industrial production rose +0.4% m/m and +3.0% y/y, better than expectations of +0.4% m/m and +2.8% y/y with the +3.0% y/y increase the largest annual gain in 3-1/4 years.

    UK Apr manufacturing production rose +0.4% m/m and +4.4% y/y, stronger than expectations of +0.4% m/m and +4.0% y/y with the +4.4% y/y increase the largest annual gain in 3-1/4 years.

    The UK May BRC like-for-like retail sales monitor rose +0.5% y/y, less than expectations of +1.6% y/y.

    The Japan Apr tertiary industry activity index fell -5.4% m/m, a bigger decline than expectations of -3.4% m/m and matched the Apr 2011 drop as the largest decline in 17 years.

    U.S. STOCK PREVIEW

    The Treasury today will sell $28 billion of 3-year T-notes. There are three of the Russell 1000 companies that report earnings today: Science Applications (consensus $0.67), HD Supply Holdings (0.17), Ulta Salon (0.74).

    Equity conferences during the remainder of this week include: Goldman Sachs European Financials Conference on Tue, Harbor's Aluminum Outlook Summit on Tue, Morgan Stanley Financials Conference on Tue-Wed, Piper Jaffray Consumer Conference on Tue-Wed, Goldman Sachs Global Healthcare Conference on Tue-Thu, William Blair Growth Stock Conference on Tue-Thu, Credit Suisse Future of Payments & Commerce Conference on Wed, Goldman Sachs North American Energy Summit on Wed, Mexico Capital Projects & Infrastructure Summit on Wed, 2nd Annual Mexico Capital Projects & Infrastructure Summit on Wed-Thu, Morgan Stanley Leveraged Finance Conference on Wed-Thu, Drexel Hamilton Aerospace and Defense Conference on Thu, and Robert W. Baird & Co. Inc. Utility & Infrastructure Symposium on Thu.

    OVERNIGHT U.S. STOCK MOVERS

    Tyson Foods (TSN -6.53%) was downgraded to 'Underperform' from 'Neutral' at Credit Suisse.

    SAIC (SAIC -1.22%) reported Q1 EPS of 69 cents, higher than consensus of 66 cents.

    Colgate-Palmolive (CL +0.62%) was upgraded to 'Outperform' from 'Market Perform' at BMO Capital.

    Twitter (TWTR +3.42%) was upgraded to 'Market Perform' from 'Underperform' at Wells Fargo.

    ConocoPhillips (COP +0.01%) was initiated with a 'Buy' at Deutsche Bank with a price target of $94.

    Union Pacific (UNP -49.40%) was upgraded to 'Outperform' from 'Sector Perform' at RBC Capital.

    Urban Outfitters (URBN +0.81%) said Q2 comparative sales to date are 'approximately flat.'

    HD Supply (HDS +0.84%) reported Q1 adjusted EPS of 20 cents, better than consensus of 18 cents.

    Las Vegas Sands (LVS -2.16%) was downgraded to 'Neutral' from 'Buy' at UBS.

    Netflix (NFLX -1.64%) was upgraded to 'Overweight' from 'Equal Weight' at Evercore.

    Chico's FAS (CHS -0.19%) jumped over 10% in after-hours trading after the Financial Times reported that the company is considering a sale to PE firms and going private.

    eBay (EBAY -0.24%) fell 2% in after-hours trading after it announced that PayPal President David Marcus is leaving the company on June 27 to lead Facebook's (FB +0.61%) messaging products.

    Pep Boys ({=PBY reported Q1 EPS of 3 cents, well below consensus of 6 cents.

    BlackRock reported a 11.3% passive stake in Washington Prime Group (WPG -0.05%) and a 10.1% passive stake in Quotient (QTNT +1.86%) .

    PL Capital reported a 7.1% stake in Banc of California (BANC +1.15%) .

    According to Reuters, International Game Technology (IGT +14.39%) hired Morgan Stanley to explore a sale and has attracted interest from rival gaming companies as well as private equity firms.

    Casey's General Stores (CASY +3.34%) reported Q4 EPS of 59 cents, better than consensus of 53 cents.

    MARKET COMMENTS

    June E-mini S&Ps (ESM14 -0.23%) this morning are down -3.25 points (-0.17%). The S&P 500 index on Monday climbed to yet another new record high and closed higher. Bullish factors included (1) reduced Chinese economic concerns after China May exports rose +7.0% y/y, better than expectations of +6.7% y/y, and (2) increased M&A activity after Merck agreed to buy Idenix Pharmaceuticals for $3.9 billion, Analog Devices bought Hittite Microwave for $2 billion, and Tyson Foods made a binding offer to buy Hillshire Brands for $7.7 billion. Closes: S&P 500 +0.09%, Dow Jones +0.11%, Nasdaq +0.03%.

    Sep 10-year T-notes (ZNU14 -0.08%) this morning are down -2 ticks. Sep 10-year T-note futures prices on Monday closed lower. Bearish factors for T-notes included (1) supply pressures as the Treasury auctions $62 billion of T-notes this week starting with Tuesday's $28 billion auction of 3-year T-notes, and (2) reduced safe-haven demand after the S&P 500 climbed to a new record high. Closes: TYU4 -5.50, FVU4 -5.50.

    The dollar index (DXY00 +0.17%) this morning is up +0.158 (+0.20%). EUR/USD (^EURUSD) is down -0.0051 (-0.38%). USD/JPY (^USDJPY) is down -0.20 (-0.20%). The dollar index on Monday closed higher. Supportive factors included (1) weakness in EUR/USD after Eurozone Jun Sentix investor confidence unexpectedly fell -4.3 to a 6-month low of 8.5, and (2) speculation that divergent monetary policies among global central banks will boost the dollar's interest rate differentials versus the euro and yen as the Fed continues to taper QE3 while the BOJ and ECB expand their monetary stimulus measures. Closes: Dollar Index +0.244 (+0.30%), EUR/USD -0.00488 (-0.36%), USD/JPY +0.038 (+0.04%).

    July WTI crude oil (CLN14 +0.34%) this morning is up +37 cents (+0.35%) at a 3-week high. July gasoline (RBN14 +0.16%) is up +0.0041 (+0.14%). July crude and gasoline prices on Monday climbed to 1-week highs and closed higher. Bullish factors included (1) signs of strength in the global economy after China May exports rose more than expected, and (2) the rally in the S&P 500 to another record high, which bolsters confidence in the economic outlook and energy demand. Closes: CLN4 +1.75 (+1.70%) RBN4 +0.0458 (+1.56%).

    GLOBAL EVENT CALENDAR06/10/2014

    US1000 ETApr wholesale inventories expected +0.6% m/m, Mar +1.1% m/m. Apr wholesale sales expected +0.9%, Mar +1.4% m/m.
     1300 ETTreasury auctions $28 billion 3-year T-notes.
    JPN0200 ETJapan May machine tool orders, Apr +48.7% y/y.
     1950 ETJapan Q2 BSI large all industry business conditions, Q1 12.7. Q2 BSI large manufacturing business condition, Q1 12.5.
     1950 ETJapan May domestic CGPI expected +0.1% m/m and +4.1% y/y, Apr +2.8% m/m and +4.1% y/y.
    UK0430 ETUK Apr industrial production expected +0.4% m/m and +2.8% y/y, Mar -0.1% m/m and +2.3% y/y.
     0430 ETUK Apr manufacturing production expected +0.4% m/m and +4.0% y/y, Mar +0.5% m/m and +3.3% y/y.

    U.S. STOCK CALENDAR06/10/2014

    Company NameTickerTimeEvent DescriptionPeriodEstimate
    Science Applications International CorpSAIC USBef-mktQ1 2015 Earnings ReleaseQ1 20150.665
    HD Supply Holdings IncHDS US6:00Q1 2015 Earnings ReleaseQ1 20150.173
    HD Supply Holdings IncHDS US8:00Q1 2015 Earnings CallQ1 2015 
    Science Applications International CorpSAIC US8:00Q1 2015 Earnings CallQ1 2015 
    Covanta Holding CorpCVA US8:30Business Update Call  
    TD Ameritrade Holding CorpAMTD US8:30May 2014 Sales and Revenue Release2014 
    MetLife IncMET US8:45Investor Conference-New YorkY 2014 
    Aaron's IncAAN US9:00Annual General MeetingY 2014 
    3D Systems CorpDDD US9:00Investor and Analyst MeetingY 2014 
    General Motors CoGM US9:30Annual General MeetingY 2014 
    White Mountains Insurance Group LtdWTM US10:00Investor MeetingY 2014 
    Best Buy Co IncBBY US10:30Annual General MeetingY 2014 
    Essex Property Trust IncESS US16:00Annual General MeetingY 2014 
    Ulta Salon Cosmetics & Fragrance IncULTA US17:00Q1 2015 Earnings CallQ1 2015 
    Ulta Salon Cosmetics & Fragrance IncULTA USAft-mktQ1 2015 Earnings ReleaseQ1 20150.741
    Autodesk IncADSK US17:30Annual General MeetingY 2014 
    TJX Cos Inc/TheTJX US Annual General Meeting  
    Alliant Energy CorpLNT US Roadshow-Day 1Y 2014 
    United Parcel Service IncUPS US Roadshow - ZurichY 2014 
    Hospitality Properties TrustHPT US Annual General Meeting  
    AMC Networks IncAMCX US Annual General Meeting  
    Endo International PLCENDP US Annual General Meeting  
    LinkedIn CorpLNKD US Annual General Meeting  
    KAR Auction Services IncKAR US Annual General Meeting  
    Splunk IncSPLK US Annual General Meeting  
    Pinnacle Foods IncPF US Annual General Meeting

    Stocks: TSN, SAIC, CL, TWTR, COP, UNP, URBN, HDS, LVS, NFLX, CHS, EBAY, FB, PBY, WPG, BANC, IGT, CASY, CVA, AMTD, MET, AAN, DDD, GM, WTM, BBY, ESS, ULTA, ADSK, TJX, LNT, UPS, JPTXF, AMCX, ENDP, LNKD, KAR, SPLK, PF
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

More »

Latest Comments


Posts by Themes
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.