Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

BARCHART MORNING CALL 6/10

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

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

US 1000 ET Apr wholesale inventories expected +0.6% m/m, Mar +1.1% m/m. Apr wholesale sales expected +0.9%, Mar +1.4% m/m.
  1300 ET Treasury auctions $28 billion 3-year T-notes.
JPN 0200 ET Japan May machine tool orders, Apr +48.7% y/y.
  1950 ET Japan Q2 BSI large all industry business conditions, Q1 12.7. Q2 BSI large manufacturing business condition, Q1 12.5.
  1950 ET Japan May domestic CGPI expected +0.1% m/m and +4.1% y/y, Apr +2.8% m/m and +4.1% y/y.
UK 0430 ET UK Apr industrial production expected +0.4% m/m and +2.8% y/y, Mar -0.1% m/m and +2.3% y/y.
  0430 ET UK 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 Name Ticker Time Event Description Period Estimate
Science Applications International Corp SAIC US Bef-mkt Q1 2015 Earnings Release Q1 2015 0.665
HD Supply Holdings Inc HDS US 6:00 Q1 2015 Earnings Release Q1 2015 0.173
HD Supply Holdings Inc HDS US 8:00 Q1 2015 Earnings Call Q1 2015  
Science Applications International Corp SAIC US 8:00 Q1 2015 Earnings Call Q1 2015  
Covanta Holding Corp CVA US 8:30 Business Update Call    
TD Ameritrade Holding Corp AMTD US 8:30 May 2014 Sales and Revenue Release 2014  
MetLife Inc MET US 8:45 Investor Conference-New York Y 2014  
Aaron's Inc AAN US 9:00 Annual General Meeting Y 2014  
3D Systems Corp DDD US 9:00 Investor and Analyst Meeting Y 2014  
General Motors Co GM US 9:30 Annual General Meeting Y 2014  
White Mountains Insurance Group Ltd WTM US 10:00 Investor Meeting Y 2014  
Best Buy Co Inc BBY US 10:30 Annual General Meeting Y 2014  
Essex Property Trust Inc ESS US 16:00 Annual General Meeting Y 2014  
Ulta Salon Cosmetics & Fragrance Inc ULTA US 17:00 Q1 2015 Earnings Call Q1 2015  
Ulta Salon Cosmetics & Fragrance Inc ULTA US Aft-mkt Q1 2015 Earnings Release Q1 2015 0.741
Autodesk Inc ADSK US 17:30 Annual General Meeting Y 2014  
TJX Cos Inc/The TJX US   Annual General Meeting    
Alliant Energy Corp LNT US   Roadshow-Day 1 Y 2014  
United Parcel Service Inc UPS US   Roadshow - Zurich Y 2014  
Hospitality Properties Trust HPT US   Annual General Meeting    
AMC Networks Inc AMCX US   Annual General Meeting    
Endo International PLC ENDP US   Annual General Meeting    
LinkedIn Corp LNKD US   Annual General Meeting    
KAR Auction Services Inc KAR US   Annual General Meeting    
Splunk Inc SPLK US   Annual General Meeting    
Pinnacle Foods Inc PF US   Annual General Meeting