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BARCHART MORNING CALL 4/24

|Includes: AAPL, ABC, Aetna, Inc. (AET), AIZ, ALXN, AMCR, BTU, CAKE, CBI, CCEP, CELG, CHTR, COG, DGX, DHI, DLPH, DO, EQT, ESND, ETFC, ETR, FB, FLS, GM, HP, HSY, LLY, LO, LRCX, LSI-OLD, LU, MAR, MJN, NBL, NLSN, NUE, PHM, QCOM, SCG, SIAL, SWK, SWY, SYK, TNXP, TROW, WM, WYN

BARCHART MORNING CALL

Thursday, April 24th, 2014View Older Reports

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OVERNIGHT MARKETS AND NEWS

June E-mini S&Ps (ESM14 +0.31%) this morning are up +0.41% and European stocks are up +0.83% at 2-week highs after earnings results from Apple and Facebook beat analysts' estimates. Another positive for European equities is the unexpected increase in German Apr IFO business confidence. Ukraine troops stepped up an offensive as they entered the eastern Ukraine town of Slovyansk and killed five pro-Russian separatists, while Russian President Putin said the use of force by Ukraine would have consequences. Asian stocks closed mixed: Japan -0.97%, Hong Kong +0.24%, China -0.19%, Taiwan -0.13%, Australia +0.24%, Singapore +0.80%, South Korea -0.05%, India closed for holiday. Commodity prices are mixed. Jun crude oil (CLM14 +0.35%) is up +0.41%. Jun gasoline (RBM14 +0.08%) is up +0.02%. Jun gold (GCM14 -0.81%) is down -0.58%. May copper (HGK14 +0.98%) is up +1.11% at a 1-1/2 month high after LME copper inventories tumbled -1,025 MT to a 17-1/2 month low. Agriculture and livestock prices are mixed. The dollar index (DXY00 -0.05%) is down -0.06%. EUR/USD (^EURUSD) is up +0.04%. USD/JPY (^USDJPY) is down -0.08%. June T-note prices (ZNM14 -0.09%) are down -4.5 ticks.

ECB President Draghi said that any worsening of the medium-term outlook for inflation in the Eurozone "would be the context for a more broad-based asset purchase program."

The ECB reported that excess liquidity in the Eurozone financial system today declined to 92.9 billion euros, the lowest level since December, 2011. This may increase pressure on the ECB to expand its stimulus measures.

The German Apr IFO business climate unexpectedly rose +0.5 to 111.2, better than expectations of -0.3 to 110.4. Apr IFO current assessment rose +0.1 to 115.3, less than expectations of +0.4 to 115.6 but still the highest in 2 years. Apr IFO expectations unexpectedly rose +0.9 to 107.3, better than expectations of -0.6 to 105.8.

UK Apr CBI reported sales jumped +17 to 30, much better than expectations of +4 to 17

The Japan Mar corporate services price index rose +0.7% y/y, right on expectations.

U.S. STOCK PREVIEW

Today's weekly initial unemployment claims report is expected to show an increase of +11,000 to 315,000, adding to last week's increase of +2,000 to 304,000. Meanwhile, continuing claims are expected to show an increase of +6,000 to 2.745 million after last week's decline of -11,000 to 2.739 million. Today's March durable goods orders report is expected to be solid with a headline increase of +2.0% and a +0.6% increase ex-transportation. That would follow the Feb report of +2.2% and +0.1% ex-transportation. The Treasury today will sell $29 billion of 7-year T-notes, concluding this week's $96 billion T-note package.

There are 64 of the S&P 500 companies that report earnings today. Notable reports include Microsoft (consensus 0.63), Amazon ($0.23), Visa (2.18), UPS (1.08), Caterpillar (1.23), Starbucks (0.56), Verizon (0.87), Time Warner (1.67), GM (0.04), Nasdaq (0.71). There are no equity conferences during the remainder of this week.

OVERNIGHT U.S. STOCK MOVERS

Aetna (AET +0.29%) reported Q1 EPS of $1.98, well above consensus of $1.55.

Time Warner Cable (TWC +1.04%) reported Q1 EPS of $1.78, higher than consensus of $1.67.

Texas Instruments (TXN unch) reported Q1 EPS with items of 44 cents, higher than consensus of 41 cents.

Lam Research (LRCX unch) reported Q3 adjusted EPS of $1.26, better than consensus of $1.17.

Apple (AAPL -1.31%) jumped over 7% in after-hours trading after it reported Q2 EPS of $11.62, well above consensus of $10.18, and announced a 7-for-1 stock split.

Cheesecake Factory (CAKE -2.50%) reported Q1 adjusted EPS of 43 cents, below consensus of 49 cents, and then lowered guidance on fiscal 2014 EPS to $2.24-$2.33, below consensus of $2.36.

Flowserve (FLS -0.74%) reported Q1 EPS of 78 cents, better than consensus of 75 cents.

E-Trade (ETFC unch) reported Q1 EPS of 33 cents, higher than consensus of 23 cents.

Assurant (AIZ +0.36%) reported Q1 adjusted EPS of $1.68, stronger than consensus of $1.54.

Safeway (SWY -0.21%) reported Q1 EPS of 6 cents, well below consensus of 18 cents.

Chicago Bridge & Iron (CBI -0.88%) reported Q1 adjusted EPS of 87 cents, weaker than consensus of $1.10.

LSI Corporation (LSI +0.09%) reported Q1 EPS of 17 cents, better than consensus of 15 cents.

United Stationers (USTR +0.34%) reported Q1 adjusted EPS of 56 cents, weaker than consensus of 57 cents.

Stryker (SYK -0.44%) reported Q1 adjusted EPS of $1.06, below consensus of $1.08.

Facebook (FB -2.65%) rose over 5% in pre-market trading after it reported Q1 EPS of 34 cents, well above consensus of 24 cents.

Qualcomm (QCOM unch) reported Q2 adjusted EPS of $1.31, better than consensus of $1.22, and raised guidance on fiscal 2014 adjusted EPS view to $5.05-$5.25 from $5.00-$5.20.

MARKET COMMENTS

June E-mini S&Ps (ESM14 +0.31%) this morning are up +7.75 points (+0.41%) at a 2-week high. The S&P 500 index on Wednesday closed lower. Bearish factors included (1) the unexpected -14.5% slide in U.S. Mar new home sales to an 8-month low of 384,000, weaker than expectations of a +2.3% increase to 450,000, and (2) concern over Chinese economic growth after the China Apr HSBC manufacturing PMI rose +0.3 to 48.3, the fourth month that manufacturing activity in China has contracted. Closes: S&P 500 -0.22%, Dow Jones -0.08%, Nasdaq -0.88%.

Jun 10-year T-notes (ZNM14 -0.09%) this morning are down -4.5 ticks. Jun 10-year T-note futures prices on Wednesday closed higher. Bullish factors included (1) the unexpected drop in U.S. Mar new home sales to the lowest in 8 months, and (2) increased safe-haven demand for T-notes on concern that tensions in Ukraine may escalate after Ukraine's First Deputy Prime Minister said that the country's security forces are seeking to eliminate all pro-Russian militias operating in the eastern part of the country. Closes: TYM4 +10.50, FVM4 +6.00.

The dollar index (DXY00 -0.05%) this morning is down -0.048 (-0.06%). EUR/USD (^EURUSD) is up +0.0005 (+0.04%). USD/JPY (^USDJPY) is down -0.08 (-0.08%). The dollar index on Wednesday closed lower. Negative factors included (1) the unexpected slide in U.S. Mar new home sales to the lowest in 8 months, and (2) strength in EUR/USD after the Eurozone Apr Markit composite PMI unexpectedly rose +0.9 to 54.0, better than expectations of -0.1 to 53.0 and the fastest pace of expansion in 2-3/4 years. Closes: Dollar index -0.041 (-0.05%), EUR/USD +0.00117 (+0.08%), USD/JPY -0.077 (-0.08%).

Jun WTI crude oil (CLM14 +0.35%) this morning is up +42 cents (+0.41%) and Jun gasoline (RBM14 +0.08%) is up +0.0006 (+0.02%). Jun crude and gasoline prices on Wednesday closed lower with Jun crude oil at a 2-week low. Bearish factors included (1) the +3.524 million bbl increase in weekly EIA crude inventories to 397.659 million bbl, the most since EIA data began in 1982, and (2) the +0.7% increase in U.S. crude oil production for the week ended Apr 18 to a 26-yr high of 8.36 million bpd. Declines in crude were limited after crude inventories at Cushing, OK, the delivery point of WTI futures, fell -788,000 bbl to a 4-1/2 yr low of 26.04 million bbl. Closes: CLM4 -0.31 (-0.30%). RBM4 -0.0042 (-0.14%).

GLOBAL EVENT CALENDAR04/24/2014

US 0830 ET Weekly initial unemployment claims expected +11,000 to 315,000, previous +2,000 to 304,000. Weekly continuing claims expected +6,000 to 2.745 million, previous -11,000 to 2.739 million.
  0830 ET Mar durable goods orders expected +2.0% and +0.6% ex transportation, Feb +2.2% and +0.1% ex transportation. March non-defense capital goods orders ex-aircraft expected +1.0%, Feb -1.4%.
  0830 ET USDA weekly Export Sales.
  1100 ET Treasury announces amount of 2-year floating-rate notes to be auctioned Apr 29 (previous $13 billion).
  1300 ET Treasury auctions $29 billion 7-year T-notes.
GER 0400 ET German Apr IFO business climate expected -0.3 to 110.4 Mar 110.7. Apr IFO current assessment expected +0.4 to 115.6, Mar 115.2. Apr IFO expectations expected -0.6 to 105.8, Mar 106.4.
EUR 0500 ET ECB President Mario Draghi speaks at a conference in Amsterdam.
UK 0600 ET UK Apr CBI reported sales expected +4 to 17, Mar 13.
JPN 1930 ET Japan Mar national CPI expected +1.6% y/y, Feb +1.5% y/y. Mar national CPI ex-fresh food expected +1.4% y/y, Feb +1.3% y/y. Mar national CPI ex food & energy expected +0.7% y/y, Feb +0.8% y/y.
  1930 ET Japan Apr Tokyo CPI expected +3.1% y/y, Mar +1.3% y/y. Apr Tokyo CPI ex-fresh food expected +2.8% y/y, Mar +1.0% y/y. Apr Tokyo CPI ex food & energy expected +2.1% y/y, Mar +0.4% y/y.

U.S. STOCK CALENDAR04/24/2014

Company Name Ticker Time Event Description Period Estimate
Mead Johnson Nutrition Co MJN US Bef-mkt Q1 2014 Earnings Release Q1 2014 0.913
Noble Energy Inc NBL US Bef-mkt Q1 2014 Earnings Release Q1 2014 0.748
Nucor Corp NUE US Bef-mkt Q1 2014 Earnings Release Q1 2014 0.376
Diamond Offshore Drilling Inc DO US Bef-mkt Q1 2014 Earnings Release Q1 2014 0.652
Nielsen Holdings NV NLSN US Bef-mkt Q1 2014 Earnings Release Q1 2014 0.414
PulteGroup Inc PHM US Bef-mkt Q1 2014 Earnings Release Q1 2014 0.203
Bemis Co Inc BMS US Bef-mkt Q1 2014 Earnings Release Q1 2014 0.565
T Rowe Price Group Inc TROW US Bef-mkt Q1 2014 Earnings Release Q1 2014 1.036
Cabot Oil & Gas Corp COG US Bef-mkt Q1 2014 Earnings Release Q1 2014 0.262
AmerisourceBergen Corp ABC US Bef-mkt Q2 2014 Earnings Release Q2 2014 1.004
SCANA Corp SCG US Bef-mkt Q1 2014 Earnings Release Q1 2014 1.148
Wyndham Worldwide Corp WYN US Bef-mkt Q1 2014 Earnings Release Q1 2014 0.745
DR Horton Inc DHI US Bef-mkt Q2 2014 Earnings Release Q2 2014 0.337
Waste Management Inc WM US Bef-mkt Q1 2014 Earnings Release Q1 2014 0.446
Coca-Cola Enterprises Inc CCE US Bef-mkt Q1 2014 Earnings Release Q1 2014 0.441
Stanley Black & Decker Inc SWK US Bef-mkt Q1 2014 Earnings Release Q1 2014 0.964
Lorillard Inc LO US Bef-mkt Q1 2014 Earnings Release Q1 2014 0.719
Quest Diagnostics Inc DGX US Bef-mkt Q1 2014 Earnings Release Q1 2014 0.881
Time Warner Cable Inc TWC US Bef-mkt Q1 2014 Earnings Release Q1 2014 1.674
Entergy Corp ETR US Bef-mkt Q1 2014 Earnings Release Q1 2014 2.288
EQT Corp EQT US Bef-mkt Q1 2014 Earnings Release Q1 2014 0.887
Peabody Energy Corp BTU US Bef-mkt Q1 2014 Earnings Release Q1 2014 0.007
Helmerich & Payne Inc HP US Bef-mkt Q2 2014 Earnings Release Q2 2014 1.48
Hershey Co/The HSY US Bef-mkt Q1 2014 Earnings Release Q1 2014 1.143
Sigma-Aldrich Corp SIAL US Bef-mkt Q1 2014 Earnings Release Q1 2014 1.032
Celgene Corp CELG US Bef-mkt Q1 2014 Earnings Release Q1 2014 1.649
General Motors Co GM US Bef-mkt Q1 2014 Earnings Release Q1 2014 0.041
Delphi Automotive PLC DLPH US Bef-mkt Q1 2014 Earnings Release Q1 2014 1.087
Eli Lilly & Co LLY US Bef-mkt Q1 2014 Earnings Release Q1 2014 0.705
Starwood Hotels & Resorts Worldwide Inc HOT US 6:00 Q1 2014 Earnings Release Q1 2014 0.562
Aetna Inc AET US 6:00 Q1 2014 Earnings Release Q1 2014 1.552
Alexion Pharmaceuticals Inc ALXN US 6:30 Q1 2014 Earnings Release Q1 2014 1.264
Southwest Airlines Co LUV US 6:30 Q1 2014 Earnings Release Q1 2014 0.165
Altria Group Inc MO US 7:00 Q1 2014 Earnings Release Q1 2014 0.568
Raytheon Co RTN US 7:00 Q1 2014 Earnings Release Q1 2014 1.766
NASDAQ OMX Group Inc/The NDAQ US 7:00 Q1 2014 Earnings Release Q1 2014 0.711
3M Co MMM US 7:30 Q1 2014 Earnings Release Q1 2014 1.796
Zimmer Holdings Inc ZMH US 7:30 Q1 2014 Earnings Release Q1 2014 1.467
Verizon Communications Inc VZ US 7:30 Q1 2014 Earnings Release Q1 2014 0.869
Caterpillar Inc CAT US 7:30 Q1 2014 Earnings Release Q1 2014 1.23
Cameron International Corp CAM US 7:30 Q1 2014 Earnings Release Q1 2014 0.715
United Parcel Service Inc UPS US 7:45 Q1 2014 Earnings Release Q1 2014 1.08
Zimmer Holdings Inc ZMH US 8:00 Q1 2014 Earnings Call Q1 2014  
Stanley Black & Decker Inc SWK US 8:00 Q1 2014 Earnings Call Q1 2014  
Freeport-McMoRan Copper & Gold Inc FCX US 8:00 Q1 2014 Earnings Release Q1 2014 0.42
NASDAQ OMX Group Inc/The NDAQ US 8:00 Q1 2014 Earnings Call Q1 2014  
Assurant Inc AIZ US 8:00 Q1 2014 Earnings Call Q1 2014  
Pfizer Inc PFE US 8:30 Annual General Meeting Y 2014  
Nielsen Holdings NV NLSN US 8:30 Q1 2014 Earnings Call Q1 2014  
PulteGroup Inc PHM US 8:30 Q1 2014 Earnings Call Q1 2014  
Verizon Communications Inc VZ US 8:30 Q1 2014 Earnings Call Q1 2014  
Wyndham Worldwide Corp WYN US 8:30 Q1 2014 Earnings Call Q1 2014  
CMS Energy Corp CMS US 8:30 Q1 2014 Earnings Release Q1 2014 0.724
Quest Diagnostics Inc DGX US 8:30 Q1 2014 Earnings Call Q1 2014  
Time Warner Cable Inc TWC US 8:30 Q1 2014 Earnings Call Q1 2014  
Equifax Inc EFX US 8:30 Q1 2014 Earnings Call Q1 2014  
Hershey Co/The HSY US 8:30 Q1 2014 Earnings Call Q1 2014  
United Parcel Service Inc UPS US 8:30 Q1 2014 Earnings Call Q1 2014  
Aetna Inc AET US 8:30 Q1 2014 Earnings Call Q1 2014  
3M Co MMM US 9:00 Q1 2014 Earnings Call Q1 2014  
Altria Group Inc MO US 9:00 Q1 2014 Earnings Call Q1 2014  
Raytheon Co RTN US 9:00 Q1 2014 Earnings Call Q1 2014  
CMS Energy Corp CMS US 9:00 Q1 2014 Earnings Call Q1 2014  
Celgene Corp CELG US 9:00 Q1 2014 Earnings Call Q1 2014  
Delphi Automotive PLC DLPH US 9:00 Q1 2014 Earnings Call Q1 2014  
Eli Lilly & Co LLY US 9:00 Q1 2014 Earnings Call Q1 2014  
Mead Johnson Nutrition Co MJN US 9:30 Q1 2014 Earnings Call Q1 2014  
Cabot Oil & Gas Corp COG US 9:30 Q1 2014 Earnings Call Q1 2014  
Cameron International Corp CAM US 9:30 Q1 2014 Earnings Call Q1 2014  
Noble Energy Inc NBL US 10:00 Q1 2014 Earnings Call Q1 2014  
Diamond Offshore Drilling Inc DO US 10:00 Q1 2014 Earnings Call Q1 2014  
Bemis Co Inc BMS US 10:00 Q1 2014 Earnings Call Q1 2014  
T Rowe Price Group Inc TROW US 10:00 Annual General Meeting Y 2014  
Regions Financial Corp RF US 10:00 Annual General Meeting Y 2014  
Caterpillar Inc CAT US 10:00 Q1 2014 Earnings Call Q1 2014  
Alexion Pharmaceuticals Inc ALXN US 10:00 Q1 2014 Earnings Call Q1 2014  
DR Horton Inc DHI US 10:00 Q2 2014 Earnings Call Q2 2014  
Waste Management Inc WM US 10:00 Q1 2014 Earnings Call Q1 2014  
Coca-Cola Enterprises Inc CCE US 10:00 Q1 2014 Earnings Call Q1 2014  
Freeport-McMoRan Copper & Gold Inc FCX US 10:00 Q1 2014 Earnings Call Q1 2014  
CenterPoint Energy Inc CNP US 10:00 Annual General Meeting Y 2014  
General Motors Co GM US 10:00 Q1 2014 Earnings Call Q1 2014  
Johnson & Johnson JNJ US 10:00 Annual General Meeting Y 2014  
Crown Castle International Corp CCI US 10:30 Q1 2014 Earnings Call Q1 2014  
EQT Corp EQT US 10:30 Q1 2014 Earnings Call Q1 2014  
Starwood Hotels & Resorts Worldwide Inc HOT US 10:30 Q1 2014 Earnings Call Q1 2014  
Broadcom Corp BRCM US Aft-mkt Q1 2014 Earnings Release Q1 2014 0.457
Newmont Mining Corp NEM US Aft-mkt Q1 2014 Earnings Release Q1 2014 0.194
Republic Services Inc RSG US Aft-mkt Q1 2014 Earnings Release Q1 2014 0.444
Visa Inc V US Aft-mkt Q2 2014 Earnings Release Q2 2014 2.181
Chubb Corp/The CB US Aft-mkt Q1 2014 Earnings Release Q1 2014 1.56
Amazon.com Inc AMZN US Aft-mkt Q1 2014 Earnings Release Q1 2014 0.228
Stericycle Inc SRCL US Aft-mkt Q1 2014 Earnings Release Q1 2014 0.987
PerkinElmer Inc PKI US Aft-mkt Q1 2014 Earnings Release Q1 2014 0.437
Starbucks Corp SBUX US Aft-mkt Q2 2014 Earnings Release Q2 2014 0.557
Microsoft Corp MSFT US Aft-mkt Q3 2014 Earnings Release Q3 2014 0.63
Cerner Corp CERN US Aft-mkt Q1 2014 Earnings Release Q1 2014 0.371
Cincinnati Financial Corp CINF US Aft-mkt Q1 2014 Earnings Release Q1 2014 0.544
Leggett & Platt Inc LEG US Aft-mkt Q1 2014 Earnings Release Q1 2014 0.378
Masco Corp MAS US Aft-mkt Q1 2014 Earnings Release Q1 2014 0.175
Baker Hughes Inc BHI US   Annual General Meeting    
SCANA Corp SCG US   Annual General Meeting    
Edison International EIX US   Annual General Meeting    
Snap-on Inc SNA US   Annual General Meeting    
Intuitive Surgical Inc ISRG US   Annual General Meeting    
Ameren Corp AEE US   Annual General Meeting