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BARCHART MORNING CALL

|Includes:AES, AET, AMCX, AWK, BR, BWXT, CEL, CF, CTL, DNB, Duke Energy Corporation (DUK), EAT, ESL, ETP, EVHC, FOXA, GMCR, GPOR, HAR, HII, HRC, ICE, LAMR, LPI, MBI, MNK, MYL, NRF, NRG, OGE, OUT, PRU, RGLD, RIG, SNI, SSYS, SUNEQ, SYMC, TDC, TK, TWO, WEN, WIN, WWAV

BARCHART MORNING CALL

Thursday, August 7th, 2014

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OVERNIGHT MARKETS AND NEWS

September E-mini S&Ps (ESU14 +0.21%) this morning are up +0.16% as Q2 stock earnings results continue to surprise on the upside, while European stocks are down -0.36% after German industrial output rose less than expected along with concern the Ukraine conflict and sanctions against Russia will undermine the European economy. Russia's Micex Stock Index tumbled to a 3-month low as retailers plunged on concern a ban on food imports from sanctioned countries will cut earnings after Russian President Putin ordered restrictions on food and agricultural imports for one year from countries that have imposed or supported sanctions against Russia. Limiting losses in European stocks is the fall in the 10-year German bund yield to a record low 1.078% ahead of today's ECB meeting. Asian stocks closed mostly lower: Japan +0.48%, Hong Kong -0.80%, China -1.51%, Taiwan -0.14%, Australia -0.05%, Singapore -0.18%, South Korea -0.36%, India -0.30%. Commodity prices are mostly lower. Sep crude oil (CLU14 -0.02%) is down -0.33% at a fresh 6-month low. Sep gasoline (RBU14 +0.07%) is down -0.11%. Dec gold (GCZ14 -0.05%) is down -0.09%. Sep copper (HGU14 +0.16%) is up +0.14%. Agriculture and livestock prices are mostly lower with Oct lean hogs down -0.71% at a 3-1/2 month low. The dollar index (DXY00 +0.02%) is up +0.05%. EUR/USD (^EURUSD) is down -0.06%. USD/JPY (^USDJPY) is up +0.20%. Sep T-note prices (ZNU14 +0.16%) are up +4.5 ticks on positive carry-over from a rally in German bunds.

German Jun industrial production rose +0.3% m/m and unexpectedly fell -0.5% y/y, weaker than expectations of +1.2% m/m and +0.3% y/y with the -0.5% y/y drop the largest annual decline in 11 months.

As expected, the BOE maintained its benchmark rate at 0.50% and kept its asset purchase target at 375 billion pounds.

U.S. STOCK PREVIEW

Today's U.S. weekly unemployment claims report should continue to show a slowly-improving layoff picture. Today's initial unemployment claims report is expected to show a slight +3,000 increase to 305,000 after last week's +23,000 gain to 302,000. Today's June U.S. consumer credit report is expected to show another strong increase of +$18.700 billion, close to May's increase of +$19.602 billion.

There are 17 of the S&P 500 companies that report earnings today with notable reports including: Mylan (consensus $0.72), AES Corp. (0.28), Wendy's (0.10), InterContinentalExchange (2.02), Scripps Networks (1.13), Duke Energy (0.98). Equity conferences for the remainder of this week include: Black Hat USA 2014 on Wed-Thu and Needham Advanced Industrial Technologies Conference on Thu.

OVERNIGHT U.S. STOCK MOVERS

Duke Energy (DUK -1.61%) reported Q2 EPS of $1.11, well above consensus of 98 cents.

Carnival Corp. (CCL +0.69%) rose nearly 3% in pre-market trading after BOA/Merril upgraded the stock to 'Buy' from 'Neutral.'

Aetna (AET -0.18%) was downgraded to 'Neutral' from 'Buy' at Goldman Sachs.

Esterline (ESL +0.14%) was upgraded to 'Buy' from 'Neutral' at Goldman Sachs who also raised their price target on the stock to $140 from $111.

Energy Transfer Partners (ETP -1.49%) reported Q2 EPS of 79 cents, higher than consensus of 64 cents.

Babcock & Wilcox (BWC -0.35%) sank over 12% in after-hours trading after it reported Q2 adjusted EPS of 44 cents, lower than consensus of 49 cents, and then lowered guidance on fiscal 2014 EPS view to $1.70-$1.85 from $2.00-$2.20, below consensus of $2.12.

Transocean (RIG -1.09%) rose over 2% in after-hours trading after it reported Q2 adjusted EPS of $1.61, well ahead of consensus of $1.12.

CF Industries (CF +1.36%) reported Q2 EPS of $6.10, well below consensus of $6.71.

Envision Healthcare (EVHC -0.62%) reported Q2 adjusted EPS of 28 cents, better than consensus of 25 cents, and then raised guidance on 2014 adjusted EPS view to $1.15-$1.20 from $1.10-$1.15, higher than consensus of $1.13.

CenturyLink (CTL -1.32%) rallied nearly 3% in after-hours trading after it reported Q2 adjusted EPS of 72 cents, higher than consensus of 64 cents.

Prudential (PRU +0.96%) reported Q2 EPS of $2.49, stronger than consensus of $2.35.

21st Century Fox (FOXA +3.29%) climbed over 2% in after-hours trading after it reported Q4 EPS of 42 cents, higher than consensus of 38 cents.

Symantec (SYMC -0.79%) reported Q1 EPS of 45 cents, better than consensus of 42 cents.

Keurig Green Mountain (GMCR +0.33%) fell over 2% in after-hours trading after it reported Q3 EPS of 99 cents, above consensus of 88 cents, and then raised guidance on fiscal 2014 EPS outlook to $3.71-$3.78 from $3.63-$3.73, although that is still below consensus of $3.78.

MARKET COMMENTS

Sep E-mini S&Ps (ESU14 +0.21%) this morning are up +3.00 points (+0.16%). The S&P 500 index on Wednesday opened lower at a 2-1/4 month low on geopolitical concerns after NATO said there's a risk of Russia sending troops into Ukraine under the "pretext" of a humanitarian or peacekeeping mission. Stock prices recovered, however, and closed little changed: S&P 500 unch, Dow Jones +0.08%, Nasdaq -0.02%. Bullish factors included (1) the U.S. Jun trade balance that unexpectedly narrowed to a -$41.5 billion deficit, better than expectations of an increase to a -$44.8 billion deficit and the smallest deficit in 5 months, which is positive for GDP growth, and (2) positive Q2 company earnings results as 75% of companies in the S&P 500 that have reported earnings thus far have beaten profit estimates.

Sep 10-year T-notes (ZNU14 +0.16%) this morning are up +4.5 ticks. Sep 10-year T-note futures prices on Wednesday climbed to a 2-month high on increased safe-haven demand after NATO said that there's a risk that Russia will invade Ukraine. Another positive was the Treasury's announcement that it will auction $67 billion of T-notes and bonds in next week's quarterly refunding, -$2 billion less than the prior refunding. T-notes came off of their best levels after the S&P 500 recovered from a 2-1/4 month low and. Closes: TYU4 +3.50, FVU4 +2.50.

The dollar index (DXY00 +0.02%) this morning is up +0.039 (+0.05%). EUR/USD (^EURUSD) is down -0.0008 (-0.06%) and USD/JPY (^USDJPY) is UP +0.20 (+0.20%). The dollar index on Wednesday posted a 10-3/4 month high on increased safe-haven demand over concern Russia may soon invade Ukraine. EUR/USD fell to an 8-3/4 month low on concern over the European economy after German factory orders unexpectedly fell -3.2% m/m, the largest monthly decline in 2-3/4 years, and after Italy Q2 GDP fell -0.2% q/q, which puts it into recession. EUR/USD recovered its losses and closed higher ahead of Thursday's ECB meeting. Closes: Dollar index +0.116 (+0.14%), EUR/USD +0.00067 (+0.05%), USD/JPY -0.494 (-0.48%).

Sep WTI crude oil (CLU14 -0.02%) this morning is down -32 cents (-0.33%) at a fresh 6-month low and Sep gasoline (RBU14 +0.07%) is down -0.0031 (-0.11%). Sep crude and gasoline prices on Wednesday settled mixed: CLU4 -0.46 (-0.47%), RBU4 +0.0270 (+0.99%). Crude oil fell back after the dollar index strengthened to a 10-3/4 month high and after crude supplies at Cushing, OK, the delivery point for WTI futures, rose +83,000 bbl, their first increase in a month. Gasoline closed higher after weekly EIA gasoline stockpiles unexpectedly plunged -4.387 million bbl, more than expectations for no change.

GLOBAL EVENT CALENDAR08/07/2014

US 0830 ET Weekly initial unemployment claims expected +3,000 to 305,000, previous +23,000 to 302,000. Weekly continuing claims expected -27,000 to 2.512 million, previous +31,000 to 2.539 million.
  0830 ET USDA weekly Export Sales.
  1500 ET Jun consumer credit expected +$18.700 billion, May +$19.602 billion.
GER 0200 ET German Jun industrial production expected +1.2% m/m and +0.3% y/y, May -1.8% m/m and +1.3% y/y.
UK 0700 ET BOE announces interest rate decision and asset purchase target, expected no change to the 0.50% benchmark rate or to the 375 billion pound asset purchase target.
EUR 0745 ET ECB announces interest rate decision.
  0830 ET ECB President Mario Draghi speaks at monthly press conference following ECB meeting.
CHI n/a China Jul trade balance expected +$26.00 billion, Jun +$31.56 billion. Jul exports expected +7.3% y/y, Jun +7.2% y/y. Jul imports expected +3.0% y/y, Jun +5.5% y/y.
Click to enlarge

U.S. STOCK CALENDAR08/07/2014

Company Name Ticker Time Event Description Period Estimate
Brinker International Inc EAT US Bef-mkt Q4 2014 Earnings Release Q4 2014 0.866
Mylan Inc/PA MYL US Bef-mkt Q2 2014 Earnings Release Q2 2014 0.716
AES Corp/VA AES US Bef-mkt Q2 2014 Earnings Release Q2 2014 0.277
Wendy's Co/The WEN US Bef-mkt Q2 2014 Earnings Release Q2 2014 0.095
Royal Gold Inc RGLD US Bef-mkt Q4 2014 Earnings Release Q4 2014 0.301
Teekay Corp TK US Bef-mkt Q2 2014 Earnings Release Q2 2014 -0.251
Lamar Advertising Co LAMR US Bef-mkt Q2 2014 Earnings Release Q2 2014 0.374
AMC Networks Inc AMCX US Bef-mkt Q2 2014 Earnings Release Q2 2014 0.868
Intercontinental Exchange Inc ICE US Bef-mkt Q2 2014 Earnings Release Q2 2014 2.021
NRG Energy Inc NRG US Bef-mkt Q2 2014 Earnings Release Q2 2014 0.183
NorthStar Realty Finance Corp NRF US Bef-mkt Q2 2014 Earnings Release Q2 2014 0.373
Teradata Corp TDC US Bef-mkt Q2 2014 Earnings Release Q2 2014 0.645
Broadridge Financial Solutions Inc BR US Bef-mkt Q4 2014 Earnings Release Q4 2014 1.161
Scripps Networks Interactive Inc SNI US Bef-mkt Q2 2014 Earnings Release Q2 2014 1.134
Laredo Petroleum Inc LPI US Bef-mkt Q2 2014 Earnings Release Q2 2014 0.179
Mallinckrodt PLC MNK US Bef-mkt Q3 2014 Earnings Release Q3 2014 0.874
CBS Outdoor Americas Inc CBSO US Bef-mkt Q2 2014 Earnings Release Q2 2014 0.229
Duke Energy Corp DUK US 7:00 Q2 2014 Earnings Release Q2 2014 0.979
L Brands Inc LB US 7:30 July 2014 Sales and Revenue Call - Pre-Recorded 2014  
Harman International Industries Inc HAR US 8:00 Q4 2014 Earnings Release Q4 2014 1.214
Hill-Rom Holdings Inc HRC US 8:00 Q3 2014 Earnings Call Q3 2014  
MBIA Inc MBI US 8:00 Q2 2014 Earnings Call Q2 2014  
SunEdison Inc SUNE US 8:00 Q2 2014 Earnings Call Q2 2014  
Dun & Bradstreet Corp/The DNB US 8:00 Q2 2014 Earnings Call Q2 2014  
Babcock & Wilcox Co/The BWC US 8:30 Q2 2014 Earnings Call Q2 2014  
Windstream Holdings Inc WIN US 8:30 Q2 2014 Earnings Call Q2 2014  
Intercontinental Exchange Inc ICE US 8:30 Q2 2014 Earnings Call Q2 2014  
Teradata Corp TDC US 8:30 Q2 2014 Earnings Call Q2 2014  
Broadridge Financial Solutions Inc BR US 8:30 Q4 2014 Earnings Call Q4 2014  
Mallinckrodt PLC MNK US 8:30 Q3 2014 Earnings Call Q3 2014  
Stratasys Ltd SSYS US 8:30 Q2 2014 Earnings Call Q2 2014  
CBS Outdoor Americas Inc CBSO US 8:30 Q2 2014 Earnings Call Q2 2014  
OGE Energy Corp OGE US 9:00 Q2 2014 Earnings Call Q2 2014  
Integrys Energy Group Inc TEG US 9:00 Q2 2014 Earnings Call Q2 2014  
AES Corp/VA AES US 9:00 Q2 2014 Earnings Call Q2 2014  
Wendy's Co/The WEN US 9:00 Q2 2014 Earnings Call Q2 2014  
Gulfport Energy Corp GPOR US 9:00 Q2 2014 Earnings Call Q2 2014  
Sempra Energy SRE US 9:00 Q2 2014 Earnings Release Q2 2014 1.13
QEP Resources Inc QEP US 9:00 Q2 2014 Earnings Call Q2 2014  
Charles River Laboratories International Inc CRL US 9:00 Q2 2014 Earnings Call Q2 2014  
NRG Energy Inc NRG US 9:00 Q2 2014 Earnings Call Q2 2014  
NorthStar Realty Finance Corp NRF US 9:00 Q2 2014 Earnings Call Q2 2014  
Brookdale Senior Living Inc BKD US 9:00 Q2 2014 Earnings Call Q2 2014  
SandRidge Energy Inc SD US 9:00 Q2 2014 Earnings Call Q2 2014  
American Water Works Co Inc AWK US 9:00 Q2 2014 Earnings Call Q2 2014  
Two Harbors Investment Corp TWO US 9:00 Q2 2014 Earnings Call Q2 2014  
Huntington Ingalls Industries Inc HII US 9:00 Q2 2014 Earnings Call Q2 2014  
EP Energy Corp EPE US 9:00 Q2 2014 Earnings Call Q2 2014  
Sabre Corp SABR US 9:00 Q2 2014 Earnings Call Q2 2014  
Concho Resources Inc CXO US 9:30 Q2 2014 Earnings Call Q2 2014  
Atmos Energy Corp ATO US 10:00 Q3 2014 Earnings Call Q3 2014  
Brinker International Inc EAT US 10:00 Q4 2014 Earnings Call Q4 2014  
Duke Energy Corp DUK US 10:00 Q2 2014 Earnings Call Q2 2014  
Mylan Inc/PA MYL US 10:00 Q2 2014 Earnings Call Q2 2014  
Westar Energy Inc WR US 10:00 Q2 2014 Earnings Call Q2 2014  
Alliant Energy Corp LNT US 10:00 Q2 2014 Earnings Call Q2 2014  
Lamar Advertising Co LAMR US 10:00 Q2 2014 Earnings Call Q2 2014  
Annaly Capital Management Inc NLY US 10:00 Q2 2014 Earnings Call Q2 2014  
WhiteWave Foods Co/The WWAV US 10:00 Q2 2014 Earnings Call Q2 2014  
Scripps Networks Interactive Inc SNI US 10:00 Q2 2014 Earnings Call Q2 2014  
Laredo Petroleum Inc LPI US 10:00 Q2 2014 Earnings Call Q2 2014  
Markel Corp MKL US 10:30 Q2 2014 Earnings Call Q2 2014  
Harman International Industries Inc HAR US 11:00 Q4 2014 Earnings Call Q4 2014  
Forest City Enterprises Inc FCE/A US 11:00 Q2 2014 Earnings Call Q2 2014  
Middleby Corp/The MIDD US 11:00 Q2 2014 Earnings Call Q2 2014  
Teekay Corp TK US 11:00 Q2 2014 Earnings Call Q2 2014  
AMERCO UHAL US 11:00 Q1 2015 Earnings Call Q1 2015  
Prudential Financial Inc PRU US 11:00 Q2 2014 Earnings Call Q2 2014  
Corrections Corp of America CXW US 11:00 Q2 2014 Earnings Call Q2 2014  
AMC Networks Inc AMCX US 11:00 Q2 2014 Earnings Call Q2 2014  
Murphy USA Inc MUSA US 11:00 Q2 2014 Earnings Call Q2 2014  
CF Industries Holdings Inc CF US 11:00 Q2 2014 Earnings Call Q2 2014  
Copa Holdings SA CPA US 11:00 Q2 2014 Earnings Call Q2 2014  
EchoStar Corp SATS US 11:00 Q2 2014 Earnings Call Q2 2014  
Antero Resources Corp AR US 11:00 Q2 2014 Earnings Call Q2 2014  
Royal Gold Inc RGLD US 12:00 Q4 2014 Earnings Call Q4 2014  
Essex Property Trust Inc ESS US 13:00 Q2 2014 Earnings Call Q2 2014  
Sempra Energy SRE US 13:00 Q2 2014 Earnings Call Q2 2014  
Regency Centers Corp REG US 14:00 Q2 2014 Earnings Call Q2 2014  
American Express Co AXP US 15:00 Fixed Income Investor Conference Call    
IDEXX Laboratories Inc IDXX US 16:00 Analyst Day - Day 1 Y 2014  
Assured Guaranty Ltd AGO US 16:00 Q2 2014 Earnings Release Q2 2014 0.413
Computer Sciences Corp CSC US 16:15 Q1 2015 Earnings Release Q1 2015 0.938
NVIDIA Corp NVDA US 16:20 Q2 2015 Earnings Release Q2 2015 0.256
CBS Corp CBS US 16:30 Q2 2014 Earnings Call Q2 2014  
Salix Pharmaceuticals Ltd SLXP US 16:30 Q2 2014 Earnings Call Q2 2014  
Medivation Inc MDVN US 16:30 Q2 2014 Earnings Call Q2 2014  
Allscripts Healthcare Solutions Inc MDRX US 16:30 Q2 2014 Earnings Call Q2 2014  
Alnylam Pharmaceuticals Inc ALNY US 16:30 Q2 2014 Earnings Call Q2 2014  
Air Lease Corp AL US 16:30 Q2 2014 Earnings Call Q2 2014  
Computer Sciences Corp CSC US 17:00 Q1 2015 Earnings Call Q1 2015  
DeVry Education Group Inc DV US 17:00 Q4 2014 Earnings Call Q4 2014  
Monster Beverage Corp MNST US 17:00 Q2 2014 Earnings Call Q2 2014  
NVIDIA Corp NVDA US 17:00 Q2 2015 Earnings Call Q2 2015  
Zynga Inc ZNGA US 17:00 Q2 2014 Earnings Call Q2 2014  
CareFusion Corp CFN US 17:00 Q4 2014 Earnings Call Q4 2014  
Sprouts Farmers Market Inc SFM US 17:00 Q2 2014 Earnings Call Q2 2014  
SolarCity Corp SCTY US 17:00 Q2 2014 Earnings Call Q2 2014  
Consolidated Edison Inc ED US Aft-mkt Q2 2014 Earnings Release Q2 2014 0.538
Federal Realty Investment Trust FRT US Aft-mkt Q2 2014 Earnings Release Q2 2014 1.211
Great Plains Energy Inc GXP US Aft-mkt Q2 2014 Earnings Release Q2 2014 0.408
Monster Beverage Corp MNST US Aft-mkt Q2 2014 Earnings Release Q2 2014 0.748
CBS Corp CBS US Aft-mkt Q2 2014 Earnings Release Q2 2014 0.715
Lions Gate Entertainment Corp LGF US Aft-mkt Q1 2015 Earnings Release Q1 2015 0.212
Salix Pharmaceuticals Ltd SLXP US Aft-mkt Q2 2014 Earnings Release Q2 2014 1.689
Medivation Inc MDVN US Aft-mkt Q2 2014 Earnings Release Q2 2014 0.233
Allscripts Healthcare Solutions Inc MDRX US Aft-mkt Q2 2014 Earnings Release Q2 2014 0.089
Alnylam Pharmaceuticals Inc ALNY US Aft-mkt Q2 2014 Earnings Release Q2 2014 -0.516
Columbia Property Trust Inc CXP US Aft-mkt Q2 2014 Earnings Release Q2 2014 0.498
Zynga Inc ZNGA US Aft-mkt Q2 2014 Earnings Release Q2 2014 0.002
CareFusion Corp CFN US Aft-mkt Q4 2014 Earnings Release Q4 2014 0.723
Sprouts Farmers Market Inc SFM US Aft-mkt Q2 2014 Earnings Release Q2 2014 0.178
SolarCity Corp SCTY US Aft-mkt Q2 2014 Earnings Release Q2 2014 -0.994
News Corp NWSA US Aft-mkt Q4 2014 Earnings Release Q4 2014 0.029
Frank's International NV FI US Aft-mkt Q2 2014 Earnings Release Q2 2014 0.309
News Corp NWSA US 17:30 Q4 2014 Earnings Call Q4 2014  
Foster Wheeler AG FWLT US   Q2 2014 Earnings Release Q2 2014 0.47
Gap Inc/The GPS US   July 2014 Sales and Revenue Release 2014  
Hill-Rom Holdings Inc HRC US   Q3 2014 Earnings Release Q3 2014 0.594
L Brands Inc LB US   July 2014 Sales and Revenue Release 2014  
National Fuel Gas Co NFG US   Q3 2014 Earnings Release Q3 2014 0.728
OGE Energy Corp OGE US   Q2 2014 Earnings Release Q2 2014 0.515
Costco Wholesale Corp COST US   July 2014 Sales and Revenue Release 2014  
DeVry Education Group Inc DV US   Q4 2014 Earnings Release Q4 2014 0.674
Eagle Materials Inc EXP US   Annual General Meeting    
SunEdison Inc SUNE US   Q2 2014 Earnings Release Q2 2014 -0.259
Ralph Lauren Corp RL US   Annual General Meeting    
WhiteWave Foods Co/The WWAV US   Q2 2014 Earnings Release Q2 2014 0.218
Red Hat Inc RHT US   Annual General Meeting    
Windstream Holdings Inc WIN US   Q2 2014 Earnings Release Q2 2014 0.08
EchoStar Corp SATS US   Q2 2014 Earnings Release Q2 2014 0.165
Air Lease Corp AL US   Q2 2014 Earnings Release Q2 2014 0.51
Huntington Ingalls Industries Inc HII US   Q2 2014 Earnings Release Q2 2014 1.814
Stratasys Ltd SSYS US   Q2 2014 Earnings Release Q2 2014 0.447
Sabre Corp SABR US   Q2 2014 Earnings Release Q2 2014 0.18
Click to enlarge