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MORNING CALL 4/19

|Includes: ALL, ALPN, BAC, CAMP, DSX, FAST, IBKR, IBM, ICUI, ISRG, LLY, LRCX, LTXB, Morgan Stanley (MS), RARE
Summary

IPO's

NEWS

EARNINGS

Barchart Morning Call

Barchart.comWed Apr 19, 6:37AM CDT

OVERNIGHT MARKETS AND NEWS

Jun E-mini S&Ps (ESM17 +0.27%) this morning are up +0.27% and European stocks are up +0.37%. A 4% rally in Morgan Stanley in pre-market trading is giving banking stocks a boost after it reported Q1 revenue of $9.75 billion, higher than expectations of $9.29 billion. Energy producing stocks are higher as well with May WTI crude oil (CLK17 +0.13%) up +0.29% after the API reported Tuesday afternoon that U.S. crude stockpiles fell -840,000 bbl last week. Strength in automakers is giving European stocks a lift after Eurozone Mar new car registrations rose +11.2% y/y. The U.S. markets await the Fed's Beige Book, to be released this afternoon, as to clues for the future direction of monetary policy. Asian stocks settled mostly lower: Japan +0.07%, Hong Kong -0.41%, China -0.81%, Taiwan -1.09%, Australia -0.56%, Singapore -0.36%, South Korea -0.63%, India +0.06%. China's Shanghai Composite fell to a 2-1/4 month low on concern that China's securities regulators will impose stricter regulations on the market after the president of the China Securities Regulatory Commission called on China's bourses to "show swords" and crack down on behavior that disrupts the market order "without mercy."

The dollar index (DXY00 +0.13%) is up +0.12%. EUR/USD (^EURUSD) is down -0.02%. USD/JPY (^USDJPY) is up +0.43%.

Jun 10-year T-note prices (ZNM17 -0.23%) are down -7 ticks.

ECB Governing Council member Hansson said growth rates in the Eurozone are "probably higher than potential" and the "output gap is closing" but at the same time, it's too early for the ECB to rush with concrete actions and claim victory over weak inflation, which remains volatile.

Eurozone Mar new car registrations rose +11.2% y/y to 1,891,583 million and are up +8.4% year-to-date at 4,141,269.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly MBA mortgage applications (previous +1.5% with purchase sub-index +2.9% and refi sub-index unch), (2) Boston Fed President Eric Rosengren (non-voter) speaks at a conference at the Levy Economics Institute of Bard College, (3) Fed Beige Book, (4) EIA Weekly Petroleum Status Report.

Notable Russell 1000 earnings reports today include: Morgan Stanley (consensus $0.89), US Bancorp (0.80), Blackrock (4.89), Abbott Labs (0.43), AMEX (1.27), Kinder Morgan (0.18), eBay (0.48).

U.S. IPO's scheduled to price today: none.

Equity conferences: none.

OVERNIGHT U.S. STOCK MOVERS

Morgan Stanley (MS -0.67%) jumped 4% in pre-market trading after it reported Q1 revenue of $9.75 billion, higher than consensus of $9.29 billion.

Fastenal (FAST -3.36%) was upgraded to 'Outperform' from 'Neutral' at Credit Suisse with a target price of $52.

Lam Research (LRCX +0.08%) gained almost 4% in after-hours trading after it reported Q3 adjusted EPS of $2.80, higher than consensus of $2.57.

Intuitive Surgical (ISRG -1.16%) rallied over 3% in after-hours trading after it reported Q1 adjusted EPS of $5.09, better than consensus of $4.95.

Bank of America (BAC -0.44%) was upgraded to 'Strong Buy' from 'Market Outperform' at Vining Sparks with a price target of $28.

Eli Lilly (LLY -1.43%) was downgraded to 'Underperform' from 'Market Perform' at BMO Capital Markets.

International Business Machines (IBM -0.61%) dropped 4% in after-hours trading after it reported Q1 revenue of $18.2 billion, below consensus of $18.4 billion and the 20th straight quarterly revenue decline.

Allstate (ALL -1.46%) was downgraded to 'Neutral' from 'Outperform' at Macquarie Research.

ICU Medical (ICUI -0.68%) fell over 2% in after-hours trading after it received a grand jury subpoena in connection with the Hospira Infusion Systems business it acquired from Pfizer in February.

LegacyTexas Financial Group (LTXB -0.13%) sold-off nearly 7% in after-hours trading after it reported Q1 core EPS of 37 cents, well below consensus of 58 cents.

Ultragenyx Pharmaceutical (RARE -2.23%) surged nearly 20% in after-hours trading after its Burosumab drug met the primary endpoint and demonstrated a statistically significant improvement is serum phosphorous levels in a Phase 3 study in adults with X-linked hypophosphatemia.

Interactive Brokers Group (IBKR +0.84%) lost nearly 3% in after-hours trading after it reported Q1 net revenue of $374 million, below consensus of $393.4 million.

CalAmp (CAMP -0.93%) climbed nearly 3% in after-hours trading after it reported Q4 adjusted EPS of 28 cents, above consensus of 27 cents.

Diana Shipping (DSX -8.59%) dropped 7% in after-hours trading after it announced that it had commenced an underwritten public offering of $70 million of common shares.

Nivalis Therapeutics (NVLS -4.69%) surged over 25% in after-hours trading after it announced a merger agreement with Alpine Immune Sciences with Alpine becoming a wholly-owned subsidiary of Nivalis.

MARKET COMMENTS

Jun E-mini S&Ps (ESM17 +0.27%) this morning are up +6.25 points (+0.27%). Tuesday's closes: S&P 500 -0.29%, Dow Jones -0.55%, Nasdaq -0.14%. The S&P 500 on Tuesday closed lower on the unexpected -0.4% drop in U.S. Mar manufacturing production, weaker than expectations of unchanged and the biggest decline in 7 months. Other weak economic data included the -6.8% drop in U.S. Mar housing starts to 1.215 million, weaker than expectations of -3.0% to 1.25 million. There was weakness in bank stocks led by a -4.7% fall in Goldman Sachs after it reported Q1 net revenue of $8.03 billion, weaker than consensus of $8.33 billion, as bond trading revenue declined.

Jun 10-year T-notes (ZNM17 -0.23%) this morning are down -7 ticks. Tuesday's closes: TYM7 +19.50, FVM7 +10.75. Jun T-notes on Tuesday rallied to a new 5-1/4 month high and closed higher on reduced inflation expectations after the 10-year T-note breakeven inflation rate fell to a 5-month low. T-notes were also boosted by increased safe-haven demand with the sell-off in stocks.

The dollar index (DXY00 +0.13%) this morning is up +0.123 (+0.12%). EUR/USD (^EURUSD) is -0.0002 (-0.02%) and USD/JPY (^USDJPY) is up +0.47 (+0.43%). Tuesday's closes: Dollar index -0.791 (-0.79%), EUR/USD +0.0087 (+0.82%), USD/JPY -0.48 (-0.44%). The dollar index on Tuesday dropped to a 2-1/2 week low and closed lower on the weaker-than-expected U.S. Mar housing starts report and U.S. Mar manufacturing production report. The dollar was also undercut by a surge in GBP/USD to a 6-1/4 month high after U.K. Prime Minister May called for early elections in June, which bolstered speculation that Prime Minister May's Conservative party will strengthen her hand on negotiating Brexit.

May WTI crude oil prices (CLK17 +0.13%) this morning are up +15 cents (+0.29%) and May gasoline (RBK17 -0.42%) is -0.0065 (-0.38%). Tuesday's closes: May crude -0.24 (-0.46%), May gasoline -0.0086 (-0.50%). May crude oil and gasoline on Tuesday fell to 1-week lows and closed lower. Oil prices were undercut by concern about increasing U.S. crude production after last Friday's data from Baker Hughes showed U.S. active oil rigs in the week ended Apr 14 rose +11 to 683, the most in 1-3/4 years. In addition, the crack spread fell to a 3-week low, which may curb refinery demand for crude to refine into gasoline. Oil prices were supported by the slide in the dollar index to a 2-1/2 week low, reduced global supplies after Saudi Arabia Feb oil exports fell to a 21-month low of 6.95 million bpd, and expectations for Wednesday's weekly EIA crude inventories to fall -1.4 million bbl.

GLOBAL EVENT CALENDAR04/19/2017

Wednesday, Apr 19
US 0700 ET Weekly MBA mortgage applications, previous +1.5% with purchase sub-index +2.9% and refi sub-index unch.
1030 ET EIA Weekly Petroleum Status Report.
1200 ET Boston Fed President Eric Rosengren (non-voter) speaks at a conference at the Levy Economics Institute of Bard College.
1400 ET Fed Beige Book.
Thursday, Apr 20
US 0830 ET Weekly initial unemployment claims expected +6,000 to 240,000, previous -1,000 to 234,000. Weekly continuing claims expected -4,000 to 2.024 million, previous -7,000 to 2.028 million.
0830 ET Apr Philadelphia Fed business outlook survey expected -7.0 to 25.8, Mar -10.5 to 32.8.
0830 ET USDA weekly Export Sales.
1000 ET Mar leading indicators expected +0.2%, Feb +0.6%.
1100 ET Treasury announces amount of 2-year T-notes (previous $26 billion), 2-year floating-rate notes (previous $15 billion), 5-year T-notes (previous $34 billion) and 7-year T-notes (previous $28 billion) to be auctioned Apr 25-27.
1300 ET Treasury auctions $16 billion of 5-year TIPS.

U.S. STOCK CALENDAR04/19/2017

Company Ticker Time Event Description Period Estimate
US Bancorp USB US Bef-mkt Q1 2017 Earnings Release Q1 17 0.80
Huntington Bancshares Inc/OH HBAN US Bef-mkt Q1 2017 Earnings Release Q1 17 0.218
BlackRock Inc BLK US 06:30 Q1 2017 Earnings Release Q1 17 4.889
Textron Inc TXT US 06:30 Q1 2017 Earnings Release Q1 17 0.46
Morgan Stanley MS US 07:00 Q1 2017 Earnings Release Q1 17 0.893
Abbott Laboratories ABT US 07:30 Q1 2017 Earnings Release Q1 17 0.43
AutoNation Inc AN US 08:00 Annual General Meeting
Navient Corp NAVI US 08:00 Q1 2017 Earnings Call Q1 17
Textron Inc TXT US 08:00 Q1 2017 Earnings Call Q1 17
Morgan Stanley MS US 08:30 Q1 2017 Earnings Call Q1 17
BlackRock Inc BLK US 08:30 Q1 2017 Earnings Call Q1 17
Genuine Parts Co GPC US 08:30 Q1 2017 Earnings Release Q1 17 1.05
US Bancorp USB US 09:00 Q1 2017 Earnings Call Q1 17
Huntington Bancshares Inc/OH HBAN US 09:00 Q1 2017 Earnings Call Q1 17
Abbott Laboratories ABT US 09:00 Q1 2017 Earnings Call Q1 17
CR Bard Inc BCR US 10:00 Annual General Meeting
Kraft Heinz Co/The KHC US 11:00 Annual General Meeting
Genuine Parts Co GPC US 11:00 Q1 2017 Earnings Call Q1 17
DISH Network Corp DISH US Q1 2017 Earnings Release Q1 17 0.679
EQT Corp EQT US Annual General Meeting
Sherwin-Williams Co/The SHW US Annual General Meeting
Teradata Corp TDC US Annual General Meeting
CSX Corp CSX US Aft-mkt Q1 2017 Earnings Release Q1 17 0.434
United Rentals Inc URI US Aft-mkt Q1 2017 Earnings Release Q1 17 1.518
SL Green Realty Corp SLG US Aft-mkt Q1 2017 Earnings Release Q1 17 1.575
American Express Co AXP US Aft-mkt Q1 2017 Earnings Release Q1 17 1.271
QUALCOMM Inc QCOM US Aft-mkt Q2 2017 Earnings Release Q2 17 1.185
Torchmark Corp TMK US 16:05 Q1 2017 Earnings Release Q1 17 1.141
Kinder Morgan Inc/DE KMI US 16:05 Q1 2017 Earnings Release Q1 17 0.178
eBay Inc EBAY US 16:30 Q1 2017 Earnings Release Q1 17 0.478
Kinder Morgan Inc/DE KMI US 16:30 Q1 2017 Earnings Call Q1 17
QUALCOMM Inc QCOM US 16:45 Q2 2017 Earnings Call Q2 17
eBay Inc EBAY US 17:00 Q1 2017 Earnings Call Q1 17
American Express Co AXP US 17:00 Q1 2017 Earnings Call Q1 17