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MORNING CALL 2/9

Barchart Morning Call


Barchart.com - 7 minutes ago

OVERNIGHT MARKETS AND NEWS

Mar E-mini S&Ps (ESH17 +0.19%) are up +0.22% and European stocks are up +0.93% on the heels of a rally in European bank stocks. Societe Generale SA is up almost 2% as it leads European bank stocks higher after reporting better-than-expected quarterly earnings results. A +0.96% rally in Mar WTI crude oil (CLH17 +0.61%) is giving energy producing stocks a lift as well. Asian stocks settled mostly higher: Japan -0.53%, Hong Kong +0.17%, China +0.51%, Taiwan +0.49%, Australia +0.23%, Singapore +0.44%, South Korea -0.01%, India +0.14%. China's Shanghai Composite climbed to a 1-3/4 month high as Chinese exporters rallied after trade concerns with the U.S. eased when President Trump sent Chinese President Xi Jinping a letter saying he is looking forward to a constructive relationship between the two countries.

The dollar index (DXY00 +0.08%) is up +0.02%. EUR/USD (^EURUSD) is down -0.14%. USD/JPY (^USDJPY) is up +0.39%.

Mar 10-year T-note prices (ZNH17 -0.16%) are down -6 ticks.

The German Dec trade balance shrank to a surplus of +18.7 billion euros, smaller than expectations of +20.5 billion euros and the smallest surplus in 11 months. Dec exports fell -3.3% m/m. weaker than expectations of -1.3% m/m and the biggest monthly decline in 16 months. Dec imports were unch m/m, stronger than expectations of -1.1% m/m.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly initial unemployment claims (expected +3,000 to 249,000, previous -14,000 to 246,000) and continuing claims (expected -6,000 to 2.058 million, previous -39,000 to 2.064 million), (2) St. Louis Fed President James Bullard (non-voter) speaks on the U.S. economy and monetary policy at a finance forum at Washington University in St. Louis, (3) revised Dec wholesale inventories (expected unrevised from prelim-Dec +1.0%. Dec wholesale trade sales, Nov +0.4% m/m), (4) Treasury auctions $15 billion of 30-year T-bonds, (5) Chicago Fed President Charles Evans (voter) speaks about current economic conditions and monetary policy at the CFA Society of Chicago, (6) USDA weekly Export Sales, (7) USDA Feb WASDE crop production.

Notable S&P 500 earnings reports today include: Coca-Cola (consensus $0.37), Kellogg (0.85), Yum Brands (0.74), Viacom (0.84), Cummins (2.00), Regeneron (3.04), VeriSign (0.88), Expedia (1.37), News Corp (0.18).

U.S. IPO's scheduled to price today: Foundation Building Materials (NYSE:FBM), Sachem Capital (NYSEMKT:SACH), Clipper Realty (NYSE:CLPR).

Equity conferences: Cowen Aerospace/Defense & Industrials Conference on Wed-Thu.

OVERNIGHT U.S. STOCK MOVERS

Paycom Software (PAYC -0.31%) rallied 10% in after-hours trading after it reported Q4 adjusted EPS of 18 cents, higher than consensus of 13 cents, and then said it sees Q1 revenue of $114.5 million-$116.5 million, above consensus of $113.8 million.

Twitter (TWTR +2.52%) tumbled 9% in pre-market trading after it reported Q4 revenue of $717 million, below consensus of $740 million.

Imperva (IMPV +0.59%) jumped nearly 9% in after-hours trading after it reported Q4 adjusted EPS of 32 cents, well above consensus of 2 cents, and then said it sees 2017 adjusted EPS of 31 cents-24 cents, stronger than consensus of 10 cents.

PayPal Holdings (PYPL +2.15%) lost nearly 2% in after-hours trading after it said it received subpoenas from the DOJ asking for information related to anti-money laundering.

iRobot (IRBT -1.05%) dropped 7% in after-hours trading after it said it sees 2017 EPS of $1.35-$1.65, below consensus of $1.74.

FleetCar Technologies (FLT +1.68%) climbed 6% in after-hours trading after it reported Q4 adjusted EPS of $1.90, above consensus of $1.87, and said it sees 2017 adjusted EPS of $8.10-$6.30 the midpoint above consensus of $8.16.

Zendesk (ZEN -0.28%) jumped 6% in after-hours trading after it reported a Q4 EPS loss of -4 cents, narrower than consensus of -6 cents, and said it sees full-year revenue of $415 million-$425 million, above consensus of $410.3 million.

Pilgrim's Pride (PPC +0.37%) dropped 3% in after-hours trading after it reported Q4 adjusted EPS of 30 cents, well below consensus of 40 cents.

TTM Technologies (TTMI +2.43%) rallied 5% in after-hours trading after it reported Q4 adjusted EPS of 58 cents, higher than consensus of 45 cents, and then said it sees Q1 adjusted EPS of 25 cents-31 cents, above consensus of 24 cents.

CoreCivic (CXW +1.27%) gained over 2% in after-hours trading after it reported Q4 revenue of $464.1 million, higher than consensus of $459 million.

TrueBlue (TBI -0.62%) slid over 6% in after-hours trading after it forecast Q1 adjusted EPS of 9 cents-14 cents, weaker than consensus of 17 cents.

PCM Inc. (PCMI +1.44%) rallied over 9% in after-hours trading after it reported Q4 adjusted EPS of 51 cents, better than consensus of 45 cents.

Qualys (QLYS +0.27%) dropped over 7% in after-hours trading after it said it sees Q1 adjusted EPS of 17 cents-19 cents, weaker than consensus of 21 cents, and then said its sees 2017 adjusted EPS of 81 cents-86 cents, below consensus of 92 cents.

Sterling Construction (STRL -1.15%) fell 8% in after-hours trading after it reported a Q4 preliminary net loss of -$5.5 million to -$6.5 million, well below a prior forecast of breakeven.

OraSure Technologies (OSUR +0.34%) jumped 12% in after-hours trading after it reported Q4 EPS of 13 cents, stronger than consensus of 6 cents, and then said it sees Q1 revenue of $31 million-$31.5 million, better than consensus of $29.7 million.

Student Transportation (STB +1.63%) rose 3% in after-hours trading after it was awarded a 10-year, $187 million contract starting July 1 to provide the Duval County School District in Jacksonville, Florida, with 230 school vehicles.

MARKET COMMENTS

Mar E-mini S&Ps (ESH17 +0.19%) this morning are up +5.00 points (+0.22%). Wednesday's closes: S&P 500 +0.07%, Dow Jones -0.18%, Nasdaq +0.21%. The S&P 500 on Wednesday closed higher on strength in energy producing stocks after crude oil prices recovered from a 3-week low and closed up +0.33%, and on reduced interest rate concerns after the 10-year T-note yield fell to a 3-week low. Technology stocks rallied as the Nasdaq Composite posted a fresh all-time high.

Mar 10-year T-notes (ZNH17 -0.16%) this morning are down -6 ticks. Wednesday's closes: TYH7 +8.00, FVH7 +4.75. Mar 10-year T-notes on Wednesday rallied to a 2-1/2 month high and closed higher on carry-over support from a rally in German bunds to a 3-week high as heightened political risks in Europe have boosted the safe-haven demand for government debt. T-notes also rallied on reduced inflation expectations after the 10-year T-note breakeven inflation rate fell to a 4-week low. T-notes fell back from their best levels on weak demand for the Treasury's $23 billion 10-year T-note auction that had a bid-to-cover-ratio of 2.29, weaker than the 12-auction average of 2.50.

The dollar index (DXY00 +0.08%) this morning is up +0.02 (+0.02%). EUR/USD (^EURUSD) is down -0.0015 (-0.14%). USD/JPY (^USDJPY) is up +0.44 (+0.39%). Wednesday's closes: Dollar index -0.070 (-0.07%), EUR/USD +0.0015 (+0.14%), USD/JPY -0.46 (-0.41%). The dollar index on Wednesday closed lower on weakness in USD/JPY as political risks in Europe boosted the safe-haven demand for the yen and on the fall in the 10-year T-note yield to a 3-week low, which undercuts the dollar's interest rate differentials.

Mar WTI crude oil prices (CLH17 +0.61%) this morning are up +50 cents (+0.96%) and Mar gasoline (RBH17 +0.47%) is +0.0125 (+0.81%). Wednesday's closes: Mar crude +0.17 (+0.33%), Mar gasoline +0.0652 (+4.38%). Mar crude oil rebounded from a 3-week low and Mar gasoline recovered from a 2-1/4 month low on on a weaker dollar and on the unexpected decline in EIA gasoline inventories by -869,000 bbl (versus expectations for a +1.5 million bbl increase). Crude oil prices were undercut by the +13.83 million bbl surge in EIA crude oil inventories to an 8-1/2 month high (well above expectations of +2.5 million bbl) and by the +0.7% increase in U.S. crude production in the week of Feb 3 to a 10-month high of 8.978 million bpd.

GLOBAL EVENT CALENDAR02/09/2017

    Thursday, Feb 9
US 0830 ET Weekly initial unemployment claims expected +3,000 to 249,000, previous -14,000 to 246,000. Weekly continuing claims expected -6,000 to 2.058 million, previous -39,000 to 2.064 million.
  0830 ET USDA weekly Export Sales.
  0910 ET St. Louis Fed President James Bullard (non-voter) speaks on the U.S. economy and monetary policy at a finance forum at Washington University in St. Louis.
  1000 ET Revised Dec wholesale inventories expected unrevised from prelim-Dec +1.0%. Dec wholesale trade sales, Nov +0.4% m/m.
  1200 ET USDA Feb WASDE crop production.
  1300 ET Treasury auctions $15 billion of 30-year T-bonds.
  1310 ET Chicago Fed President Charles Evans (voter) speaks about current economic conditions and monetary policy at the CFA Society of Chicago.
    Friday, Feb 10
US 0830 ET Jan import price index expected +0.3% m/m and +3.3% y/y, Dec +0.4% m/m and +1.8% y/y.
  1000 ET Preliminary-Feb University of Michigan U.S. consumer sentiment index expected -0.6 to 97.9, Jan +0.3 to 98.5.
  1400 ET Jan monthly budget statement expected +$43.0 billion, Dec -$27.5 billion.
  n/a President Trump and Japanese Prime Minister Abe meet in Washington.

U.S. STOCK CALENDAR02/09/2017

Company Ticker Time Event Description Period Estimate
Cummins Inc CMI US Bf-mkt Q4 2016 Earnings Release Q4 2016 2.001
Regeneron Pharmaceuticals Inc REGN US Bf-mkt Q4 2016 Earnings Release Q4 2016 3.047
Roper Technologies Inc ROP US Bf-mkt Q4 2016 Earnings Release Q4 2016 1.835
Coty Inc COTY US Bf-mkt Q2 2017 Earnings Release Q2 2017 0.341
Reynolds American Inc RAI US Bf-mkt Q4 2016 Earnings Release Q4 2016 0.602
DTE Energy Co DTE US Bf-mkt Q4 2016 Earnings Release Q4 2016 0.855
Willis Towers Watson PLC WLTW US Bf-mkt Q4 2016 Earnings Release Q4 2016 1.61
Teradata Corp TDC US Bf-mkt Q4 2016 Earnings Release Q4 2016 0.602
Viacom Inc VIAB US Bf-mkt Q1 2017 Earnings Release Q1 2017 0.834
Allegion PLC ALLE US Bf-mkt Q4 2016 Earnings Release Q4 2016 0.873
Nielsen Holdings PLC NLSN US 6:30 Q4 2016 Earnings Release Q4 2016 0.794
Coca-Cola Co/The KO US 6:55 Q4 2016 Earnings Release Q4 2016 0.367
CVS Health Corp CVS US 6:55 Q4 2016 Earnings Release Q4 2016 1.668
Masco Corp MAS US 7:00 Q4 2016 Earnings Release Q4 2016 0.344
Occidental Petroleum Corp OXY US 7:00 Q4 2016 Earnings Release Q4 2016 -0.017
Yum! Brands Inc YUM US 7:00 Q4 2016 Earnings Release Q4 2016 0.728
Sealed Air Corp SEE US 7:00 Q4 2016 Earnings Release Q4 2016 0.743
Kellogg Co K US 8:00 Q4 2016 Earnings Release Q4 2016 0.853
Masco Corp MAS US 8:00 Q4 2016 Earnings Call Q4 2016  
BorgWarner Inc BWA US 8:00 Q4 2016 Earnings Release Q4 2016 0.838
Coty Inc COTY US 8:00 Q2 2017 Earnings Call Q2 2017  
Dun & Bradstreet Corp/The DNB US 8:00 Q4 2016 Earnings Call Q4 2016  
Allegion PLC ALLE US 8:00 Q4 2016 Earnings Call Q4 2016  
Nielsen Holdings PLC NLSN US 8:00 Q4 2016 Earnings Call Q4 2016  
Yum! Brands Inc YUM US 8:15 Q4 2016 Earnings Call Q4 2016  
Equifax Inc EFX US 8:30 Q4 2016 Earnings Call Q4 2016  
CVS Health Corp CVS US 8:30 Q4 2016 Earnings Call Q4 2016  
Regeneron Pharmaceuticals Inc REGN US 8:30 Q4 2016 Earnings Call Q4 2016  
Roper Technologies Inc ROP US 8:30 Q4 2016 Earnings Call Q4 2016  
Teradata Corp TDC US 8:30 Q4 2016 Earnings Call Q4 2016  
Viacom Inc VIAB US 8:30 Q1 2017 Earnings Call Q1 2017  
Coca-Cola Co/The KO US 9:00 Q4 2016 Earnings Call Q4 2016  
DTE Energy Co DTE US 9:00 Q4 2016 Earnings Call Q4 2016  
Willis Towers Watson PLC WLTW US 9:00 Q4 2016 Earnings Call Q4 2016  
Kellogg Co K US 9:30 Q4 2016 Earnings Call Q4 2016  
BorgWarner Inc BWA US 9:30 Q4 2016 Earnings Call Q4 2016  
Cummins Inc CMI US 10:00 Q4 2016 Earnings Call Q4 2016  
Occidental Petroleum Corp OXY US 10:00 Q4 2016 Earnings Call Q4 2016  
Intel Corp INTC US 10:00 Investor Meeting Y 2017  
Sealed Air Corp SEE US 10:00 Q4 2016 Earnings Call Q4 2016  
Tyson Foods Inc TSN US 11:00 Annual General Meeting Y 2017  
Cincinnati Financial Corp CINF US 11:00 Q4 2016 Earnings Call Q4 2016  
Prudential Financial Inc PRU US 11:00 Q4 2016 Earnings Call Q4 2016  
Coca-Cola Co/The KO US 11:30 Financial Modeling Call    
Western Union Co/The WU US 16:00 Q4 2016 Earnings Release Q4 2016 0.427
VeriSign Inc VRSN US 16:05 Q4 2016 Earnings Release Q4 2016 0.884
NVIDIA Corp NVDA US 16:20 Q4 2017 Earnings Release Q4 2017 0.938
Activision Blizzard Inc ATVI US 16:30 Q4 2016 Earnings Call Q4 2016  
Cerner Corp CERN US 16:30 Q4 2016 Earnings Call Q4 2016  
Western Union Co/The WU US 16:30 Q4 2016 Earnings Call Q4 2016  
VeriSign Inc VRSN US 16:30 Q4 2016 Earnings Call Q4 2016  
Expedia Inc EXPE US 16:30 Q4 2016 Earnings Call Q4 2016  
NVIDIA Corp NVDA US 17:00 Q4 2017 Earnings Call Q4 2017  
News Corp NWSA US 17:00 Q2 2017 Earnings Call Q2 2017  
Activision Blizzard Inc ATVI US Aft-mkt Q4 2016 Earnings Release Q4 2016 0.723
Cerner Corp CERN US Aft-mkt Q4 2016 Earnings Release Q4 2016 0.609
Mohawk Industries Inc MHK US Aft-mkt Q4 2016 Earnings Release Q4 2016 3.22
Expedia Inc EXPE US Aft-mkt Q4 2016 Earnings Release Q4 2016 1.359
News Corp NWSA US Aft-mkt Q2 2017 Earnings Release Q2 2017 0.196
Varian Medical Systems Inc VAR US 19:30 Annual General Meeting Y 2017  
Advance Auto Parts Inc AAP US   Q4 2016 Earnings Release Q4 2016 1.084