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's Morning Call 6/6 0 comments
    Jun 7, 2012 9:30 AM | about stocks: LULU, SJM, COO
    Barchart Morning Call Thu, 7 Jun 2012 07:00:00 -0500

    Overnight Developments

    • E-mini S&Ps this morning are up 10.50 points (+0.80%) on the surprise Chinese rate cut and on the successful Spanish bond auction. Commodity prices are mixed with crude oil up 0.78% and agricultural prices mostly higher but with metals prices trading lower. T-notes are slightly higher by +0.5 tick. The dollar index is down -0.195 points (-0.24%).
    • The Euro Stoxx 50 is up 0.93% this morning on the Chinese rate cut and on Chancellor Merkel's comments in favor of fiscal union and the successful Spanish bond auction. Asian stocks today closed mostly higher: Japan +1.24%, Hong Kong +0.85%, China -0.60%, Taiwan +0.34%, Australia +1.31%, Singapore -0.06%, South Korea +2.81%, India +1.18%, Turkey +0.93%.
    • China cut its lending rate by 25 bp to 6.31% from 6.56%, in a surprise move that will be welcome around the world.
    • Chancellor Merkel today said that "We need more Europe, we need not only a monetary union, but we also need a so-called fiscal union, in other words more joint budget policy. And we need most of all a political union, that means we need to gradually give competencies to Europe and give Europe control."
    • The Bank of England today left its base rate at 0.50% and held its bond purchase ceiling unchanged at 325 billion pounds, which was in line with consensus market expectations.
    • Spain today successfully met its target of selling 2 billion worth of bonds at auction. The Spanish Treasury received 3.29 times as many bids as its accepted for the 10-year bond auction that yielded 6.044%. The government sold 611 million euros worth of 10-year bonds and another 1.46 million of 2 and 4 year securities, bringing the total to 2.07 billion euros. The sale was a big relief considering that Spain's finance minister earlier this week fretted that the bond markets were closed to the Spanish government. Market Comments
      • June E-mini S&Ps this morning are trading +10.50 (+0.80%) on the Chinese rate cut and the successful Spanish bond auction. The US stock market on Wednesday rallied sharply: S&P 500 +2.30%, Dow Jones +2.37%, Nasdaq 100 +2.36%. Bullish factors included (1) hopes that European policymakers may be in the process of putting together a bailout package for Spain, (2) ECB President Draghi's statement that the ECB is ready to act and that some ECB members favored a rate cut although the ECB left its refinancing rate unchanged at 1.00% at its meeting on Wednesday, (3) hopes that the Federal Reserve will extend its Operation Twist program at its meeting on June 19-20 given yesterday's report that Fed chairman Bernanke and Treasury Secretary Geithner are very worried about European banks, (4) the Beige Book report saying that the U.S. economy "expanded at a moderate pace" and that hiring was "steady or increased slightly," (5) short-covering after the recent sharp sell-off, and (6) some value buying with valuations at very cheap levels.
      • Sep 10-year T-notes this morning are trading +0.5 tick, stabilizing after Wednesday's sharp decline. June 10-year T-note prices on Wednesday closed sharply lower: TYU2 -20.5, FVU2 -9.75. The main bearish factor was reduced safe-haven demand with the sharp rally in US and European stocks. The S&P 500 index on Wednesday closed +2.37% and the Euro Stoxx 50 closed +2.42%. The T-note market is looking ahead to today's testimony by Fed Chairman Bernanke before a Congressional panel to gauge whether the Fed will extend its Operation Twist program.
      • The dollar index this morning is down -0.195 (-0.24%) on reduced safe-haven demand. EUR/USD is little changed while USD/JPY is up +0.18 (+0.23%). The dollar index on Wednesday closed with a fairly sharp loss: Dollar Index -0.504 (-0.61%), EUR/USD +0.0130 (+1.04%), USD/JPY +0.44 (+0.56%). The dollar index was undercut by reduced safe-haven demand with the sharp rally in stocks. Meanwhile, the euro was boosted by short-covering and by hopes that policy-makers are putting together a bailout package for Spain.
      • July WTI crude oil prices this morning are up 0.66 (+0.78%) while gasoline is down -0.0007 (-0.03%). Crude oil and gasoline prices on Wednesday closed moderately higher: CLN2 +0.73 (+0.87%), RBN2 +0.0056 (+0.21%). The main bullish factor was the sharp rally in the stock market and the sell-off in the dollar index. However, crude oil and gasoline prices were held back by the bearish weekly DOE report. The DOE report showed that U.S. oil inventories fell slightly by 111,000 barrels, which was a smaller decline than expectations of -1 million barrels. Meanwhile, gasoline inventories rose sharply by 3.346 million (versus expectations of +1 million barrels), and distillate inventories rose by 2.253 million barrels (versus expectations of +1 million barrels). The refinery utilization rate rose sharply by 1.9 points to 91.0%, which was larger than expectations of +0.5 points and left the rate 2.9 points above the 5-year seasonal average. Refineries are now operating in high gear and that should allow oil inventories to start to consistently drop and allow product inventories to consistently rise.
      • For the complete subscription version of this daily report (plus a 13-page big-picture weekly report), along with the earliest possible delivery in the morning, please visit http://www.barchart.com/register/crbfms_usmc.php Today's U.S. Earnings Reports

        Earnings reports (sorted by mkt cap): LULU-Lululemon (consensus $0.30), SJM-JM Smucker (0.99), COO-Cooper (1.20).

        Global Financial Calendar

        Thursday 6/7/12
        United States
        0545 ETFed's Rosengren speaks about global risk in Copenhagen.
        0830 ETWeekly initial unemployment claims expected +3,000 to 380,000, previous +10,000 to 383,000. Weekly continuing claims expected -2,000 to 3.240 mln, previous -18,000 to 3.242 mln.
        0830 ETUSDA weekly exports.
        1000 ETFed Chairman Bernanke testifies to Congressional Joint Economic Committee on the U.S. economic outlook.
        n/aICSC May chain store sales, Apr +0.6% y/y.
        1030 ETDOE natural gas storage.
        1210 ETFed's Lockhart speaks on U.S. economy in Georgia.
        1315 ETFed's Kocherlakota speaks in Minneapolis.
        1500 ETApr consumer credit expected +$10.6 bln, Mar +$21.355 bln.
        1530 ETFed's Fisher speaks on renminbi at La Jolla, CA.
        1630 ETWeekly money supply report and Fed balance sheet.
        n/aTreasury announces 3-year, 10-year , and 30-year auctions for June 12-14.
        Japan
        0100 ETJapan Apr coincident index, Mar 96.7. Apr leading index, Mar 96.4.
        1950 ETJapan Q1 final GDP, last +1.0% q/q and +4.1% q/q annualized. Q1 deflator -1.2% y/y.
        1950 ETJapan Apr current account (sa) expected 538. bln yen, Mar 785.5 bln yen. Apr trade balance (BOP basis) expected -425 bln yen, Mar 4.2 bln yen.
        1950 ETJapan May bank lending ex-trusts, Apr +0.4% y/y. May bank lending including trusts, Apr +0.3% y/y.
        United Kingdom
        0430 ETUK May PMI services expected 52.8, Apr 53.3.
        0700 ETBank of England meeting concludes with policy announcement. Base rate expected unchanged at 0.50% and asset purchase target expected unchanged at 325 billion pounds.

        Barchart.com provides Financial Quotes, Charts and Technical Analysis for Stock and Commodity Traders.

    Stocks: LULU, SJM, COO
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

  • $ATO - 100% Barchart technical buy signals - 12 new highs and up 7.65% in the last month - Relative Strength Index 73.58%
    Apr 10, 2014
  • Atmos Energy - Barchart's Chart Of The Day $ATO http://seekingalpha.com/p/1omct
    Apr 10, 2014
  • $HPT - 100% BArchart technical buy signals - 11 new highs and up 7.87% in the last month - Relative strength Index 73.43%
    Apr 10, 2014
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.