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Barchart Moring Call 8/5

|Includes: AMFW, AMZN, BKNG, BRK.A, BRK.B, CB, CBOE, DNB, FAST, FB, FOSL, GD, JEC, MAC, MSFT, TDC, TE, TEG, Tyson Foods Inc. (TSN), VNO, WBA
Barchart Morning Call

BC - 2 hrs 19 mins ago

 

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OVERNIGHT MARKETS AND NEWS

September E-mini S&Ps (ESU13 -0.07%) this morning are down -0.06%, although European stocks are up +0.03% after the Eurozone July PMI composite was revised up to its best level in nearly 2-years and after Eurozone Sentix Aug investor confidence climbed to its best level in 6-months. Asian stocks closed mixed: Japan -1.44%, Hong Kong +0.14%, China +1.38%, Taiwan +0.48%, Australia -0.11%, Singapore -0.38%, South Korea -0.43%, India +0.10%. Chinese stocks closed higher after the China July non-manufacturing index gained for the first time since March. Commodity prices are mixed. Sep crude oil (CLU13 -0.81%) is down -0.60%. Sep gasoline (RBU13 -0.77%) is down -0.52%, Dec gold (GCZ13 -0.23%) is down -0.11%, and Sep copper (HGU13 -0.57%) is down -0.47%. Agricultural prices are mixed. The dollar index (DXY00 unch) is down -0.03%. EUR/USD (^EURUSD) is down -0.06% and USD/JPY (^USDJPY) is down -0.44%. September T-note prices (ZNU13 -0.10%) are down -4.5 ticks.

Eurozone Jun retail sales fell -0.5% m/m and -0.9% y/y, better than expectations of -0.7% m/m and -1.3% y/y.

Eurozone Aug Sentix investor confidence rose +7.7 to -4.9, stronger than expectations of +2.6 to -10.0 and its best level in 6 months.

The Eurozone July PMI composite was revised up +0.1 to 50.5 from the originally reported 50.4, its fastest pace of expansion in 23-months.

UK July PMI services climbed +3.3 to 60.2, stronger than expectations of +0.5 to 57.4 and its fastest pace of expansion in 6-1/2 years.

The China July non-manufacturing PMI released late last Friday, rose +0.2 from Jun to 54.1, its first increase since March.

U.S. STOCK PREVIEW
Today's July ISM non-manufacturing index is expected to show an increase of +0.9 to 53.1, reversing part of the -1.5 point decline to the 3-1/3 year low of 52.2 seen in June. There are 6 of the S&P 500 companies that report earnings today: Tyson Foods (consensus $0.60), Unum (0.79), Dun & Bradstreet (1.52), Vornado Realty Trust (1.21), Macerich Co (0.81), and Integrys Energy Group (0.37). Conferences this week include the Mitsubishi Technology Tour on Mon-Thu, Needham Software and Services Conference on Tue, Mitsubishi UFJ Securities Healthcare Corporate Accesson Tue, JP Morgan Oil & Gas Corporate Access on Wed, Goldman Sachs Power and Utility Conferenceon Thu, and Nasdaq Summer Analyst Conference on Fri.

OVERNIGHT U.S. STOCK MOVERS

Tyson Foods (TSN +0.18%) reported Q3 EPS of 69 cents, stronger than consensus of 60 cents, and raised its 2013 fiscal year revenue estimate to $34.5 billion, higher than consensus of $34.21 billion.

Jacobs Engineering (JEC +1.37%) was downgraded to "Neutral" from "Outperform" at RW Baird.

Whole Foods (WFM -0.53%) was upgraded to "Outperform" from "Market Perform" at Williams Capital.

JPMorgan reiterates is "Overweight" rating on priceline.com (PCLN +0.44%) as it raised its price target on the stock to $1,040 from $830 after factoring in the Kayak acquisition into its estimates.

According to The Verge, Microsoft (MSFT +0.69%) cut the price of its Surface Pro tablets by $100.

Fossil (FOSL +0.20%) was downgraded to "Underweight" from "Equal Weight" at Barclays.

Chubb (CB -0.34%) was downgraded to "Hold" from "Buy" at Deutsche Bank.

Piper Jaffray reiterated its "Overweight" recommendation on Facebook (FB +1.49%) as it raised its price target on the stock to $46 from $38.

CBOE Holdings (CBOE +0.08%) was downgraded to "Neutral" from "Buy" at Goldman due to valuation.

General Dynamics (GD +0.78%) was awarded a $212 million U.S. Navy contract for the design and construction of a steel superstructure and construction of an aft peripheral vertical launching system for DDG 1002.

Berkshire Hathaway (BRK.B +0.46%) rose over 1% in pre-market trading after it reported Q2 operating EPS of $2,384, better than consensus of $2,166.

S.A.C. Capital reported 5.2% passive stake in Foster Wheeler (FWLT +1.06%) .

MARKET COMMENTS

Sep E-mini S&Ps (ESU13 -0.07%) this morning are down -1.00 point (-0.06%). The S&P 500 index on Friday opened lower after July non-farm payrolls rose +162,000, weaker than expectations of +185,000 and the smallest increase in 4 months. However, the S&P 500 recovered its losses, posted a new record high, and finished slightly higher on expectations that the weaker-than-expected payrolls report will keep the Fed from tapering QE3. Closes: S&P 500 +0.16%, Dow Jones +0.19%, Nasdaq 100 +0.55%.

Sep 10-year T-notes (ZNU13 -0.10%) this morning are down -4.5 ticks. Sep 10-year T-note prices on Friday rebounded from a 3-week low and closed sharply higher after the smaller-than-expected increase in U.S. July non-farm payrolls bolstered speculation the Fed will not taper QE3 anytime soon. Closes: TYU3 -1-6.50, FVU3 +22.50.

The dollar index (DXY00 unch) this morning is down -0.025 (-0.03%). EUR/USD (^EURUSD) is down -0.0008 (-0.06%) and USD/JPY (^USDJPY) is down -0.44 (-0.44%). The dollar index on Friday fell back from a 1-1/2 week high and closed lower after the smaller-than-expected increase in July non-farm payrolls dampened speculation the Fed will curb QE3 anytime in the near future. Closes: Dollar index -0.428 (-0.52%), EUR/USD +0.00626 (+0.47%), USD/JPY -0.631 (-0.63%).

Sep WTI crude oil (CLU13 -0.81%) this morning is down -64 cents a barrel (-0.54%) and Sep gasoline (RBU13 -0.77%) is down -0.0157 (-0.52%). Sep crude oil and gasoline prices on Friday closed lower. Sep crude retreated from a 2-week high after U.S. July non-farm payrolls rose only +162,000, weaker than expectations of +185,000 and the smallest gain in 4 months. Declines remain limited as the dollar weakened and after the U.S. State Department said a number of U.S. embassies will close on Aug 4 as a "precautionary" step because of security concerns, which limited further selling of crude on concerns of a terrorist attack in the Middle East or North Africa over the weekend. Closes: CLU3 -0.95 (-0.88%), RBU3 -0.0337 (-1.11%).

GLOBAL EVENT CALENDAR08/05/2013

US 1000 ET July ISM non-manufacturing index expected +0.9 to 53.1, Jun -1.5 to 52.2.
  1100 ET USDA weekly grain export inspections.
  1600 ET USDA Crop Progress.
GER 0355 ET Revised German July PMI services, previous 52.5.
EUR 0400 ET Revised Eurozone July PMI composite, previous 50.4.
  0430 ET Eurozone Aug Sentix investor confidence expected +2.6 to -10.0, July -12.6.
  0500 ET Eurozone Jun retail sales expected -0.7% m/m and -1.3% y/y, May +1.0% m/m and -0.1% y/y.
UK 1901 ET UK July BRC sales like-for-like expected +2.0% y/y, Jun +1.4% y/y.

U.S. STOCK CALENDAR08/05/2013

Company Name Symbol Time Event Description Period EPS Est (US$)
Fastenal Co FAST US 7:00 July 2013 Sales and Revenue Release 2013  
Tyson Foods Inc TSN US 7:30 Q3 2013 Earnings Release Q3 2013 0.602
Tyson Foods Inc TSN US 9:00 Q3 2013 Earnings Call Q3 2013  
Dun & Bradstreet Corp/The DNB US Aft-mkt Q2 2013 Earnings Release Q2 2013 1.52
Vornado Realty Trust VNO US Aft-mkt Q2 2013 Earnings Release Q2 2013 1.208
Macerich Co/The MAC US Aft-mkt Q2 2013 Earnings Release Q2 2013 0.813
Integrys Energy Group Inc TEG US Aft-mkt Q2 2013 Earnings Release Q2 2013 0.374
Teradata Corp TDC US   Roadshow - Tokyo Y 2013  
TECO Energy Inc TE US   Roadshow - Boston Y 2013  
Walgreen Co WAG US   July 2013 Sales and Revenue Release 2013