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Morning Call 7/27

|Includes: ADP, BMY, BUD, CMCSA, COP, DB, DEO, DWDP, FB, GILD, JCI, MPC, NLSN, PG, Redfin (RDFN), RTN, VLO, VZ, WLL
Summary

IPOs

Earnings

Conferance calls

Barchart Morning Call

Barchart.com1 hour ago

OVERNIGHT MARKETS AND NEWS

Sep S&P 500 E-mini stock futures (ESU17 +0.16%) this morning are trading slightly higher by +0.21% on generally positive global earnings and on higher European stocks with the Euro Stoxx 50 index up +0.1% this morning. Global stocks continued to receive a boost from the dovish outcome of Wednesday's FOMC meeting where the central bank adopted slightly more dovish language about inflation and did not set a date for its balance sheet normalization program, thus giving itself a dovish escape hatch if it wants to delay the program.

The U.S. markets today are watching a big earnings day and events in Washington, where the Senate late today plans to hold a so-called vote-a-rama on health care and where the House is trying to get a 2018 budget resolution passed before it leaves on Friday for its August recess. The 2018 budget resolution is of key importance because it will contain reconciliation provisions for tax reform. The markets are also waiting for Republicans to release a unified Congressional-White House tax reform plan before the House leaves on Friday for its recess.

Asian stocks today closed higher across the board with support from positive earnings from Samsung and Nintendo: Japan Nikkei +0.15%, Hong Kong Hang Seng +0.71%, China Shanghai Composite +0.06%, Taiwan TAIEX +0.86%, Australian S&P 200 +0.15, Singapore Straights Times +0.54, South Korea KOSPI +0.33%, India Sensex-30 unch.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly initial unemployment claims (expected +7,000 to 240,000, previous -15,000 to 233,000) and continuing claims (expected -18,000 to 1.959 million, previous +28,000 to 1.977 million), (2) Jun durable goods orders (expected +3.5% and +0.4% ex transportation, May -0.8% and +0.3% ex transportation), (3) Jun wholesale inventories (expected +0.3%, May +0.3%), (4) Jun Chicago Fed national activity index (May -0.83 to -0.26), (5) Jul Kansas City Fed manufacturing activity (expected +1 to 12, Jun +3 to 11), (6) Treasury auctions $28 billion of 7-year T-notes, (7) USDA weekly Export Sales.

Notable S&P 500 earnings reports today include: Amazon.com (consensus 1.42), UPS (1.47), ConocoPhillips (-0.02), MGM Resorts (0.30), Starbucks (0.55), Intel (0.68), Procter & Gamble (0.78), Expedia (0.92), Verizon (0.96), Mastercard (1.04), Marathon Petroleum (1.07), Ratheon (1.76).

U.S. IPO's scheduled to price today: Redfin (RDFN).

Equity conferences this week: RSA Security Inc Conference (Wed-Thu).

OVERNIGHT U.S. STOCK MOVERS

  • There are 37 of the S&P 500 companies that have reported earnings this morning. Companies that beat their earnings consensus include Conoco Phillips (COP +0.11%) at 0.14, Valero (VLO -0.66%) at 1.23, Raytheon (RTN-0.42%) at 1.96, Procter & Gamble (PG +0.18%) at 0.85, Comcast (CMCSA -1.01%) at 0.52, UPS (UPS -0.82%) at 1.58, BorgWarner (BWA +0.04%) at 0.96, Dow Chemical (DOW -1.33%) at 1.08, S&P Global (SPGI -0.37%) at 1.65, Southwest Airlines (LUV +1.19%) at 1.24, Bristol-Myers Squibb (BMY +0.05%) at 0.74.
  • Verizon (VZ +0.95%) matched expectations of 0.96. Companies that underperformed the consensus included Johnson Controls (JCI -1.95%) at 0.71, ADP (ADP +2.71%) at 0.65, Marathon Petroleum (MPC -0.64%) at 1.02, and Neilsen (NLSN +3.29%) at 0.43.
  • Facebook (FB +0.20%) rallied 4% in after-hours trading on positive earnings news driven in part by mobile video ads.
  • Gilead Sciences (GILD +0.61%) rallied 2% in after-hours trading after raising its annual sales guidance.
  • Whiting Petroleum (WLL -0.57%) fell 5% in after-hours trading on disappointing production guidance.
  • AstraZeneca (AZN +0.47%) plunged by -15% in European trading after disappointing trial results for its next-generation cancer therapies.
  • Diageo (DEO +1.02%) ralied more than 4% in European trading after raising its 3-year profitabilty goal and announcing a stock buyback.
  • Anheuser-Busch InBev (BUD +1.54%) rallied more than 4% in European trading after reporting an earnings beat.
  • Deutsche Bank (DB +0.11%) fell 3% afer reporting a 10% drop in Q2 revenues.

MARKET COMMENTS

Sep S&P 500 E-mini stock futures this morning are trading slightly higher by +0.21% on generally positive global earnings and on higher European stocks with the Euro Stoxx 50 index up +0.01% this morning. Wednesday's closes: S&P 500 +0.03%, Dow Jones +0.45%, Nasdaq +0.16%. The S&P 500 on Wednesday closed higher on the -4.8 bp drop in the 10-year T-note yield to 2.287%, which was prompted by a dovish interpretation of the FOMC meeting outcome. Stocks also found carry-over support from the +0.51% rally in the Euro Stoxx 50 index. Energy stocks received another boost from the +1.80% rally in Sep crude oil.

Sep 10-year T-note prices this morning are down -4 ticks, giving back some of Wednesday's +14 tick rally. Wednesday's closes: TYU7 +14, FVU7 +10.5. Sep 10-year T-notes on Wednesday closed sharply higher on the slightly weaker-than-expected June new home sales report and on the FOMC's decision not to name an exact start date for its balance sheet normalization program, which gives the Fed a dovish escape hatch if it decides to delay the program. T-notes were also boosted by the fact that the FOMC's post-meeting statement that was a little softer on the inflation outlook.

The dollar index is trading slightly lower by -0.053 (-0.06%), while EUR/USD is down -0.0026 (-0.22%) and USD/JPY is up +0.15 (+0.13%). Wednesday's closes: Dollar index -0.382 (-0.41%), EUR/USD +0.0087 (+0.75%), USD/JPY -0.71 (-0.63%). The dollar index on Wednesday fell to another new 13-month low and closed moderately lower on the market's dovish interpretation of the FOMC meeting, which hurt the dollar's interest rate differentials by pushing the 10-year T-note yield lower by -4.8 bp. The dollar index was also hurt by continued Washington political uncertainty and technical weakness.

Sep WTI crude oil prices are up by another +0.11 (+0.23%) this morning, while Sep gasoline is up +0.0088 (+0.55%), as crude oil continues to benefit from Wednesday's bullish weekly EIA report. Wednesday's closes: Sep WTI crude +0.86 (+1.80%), Sep gasoline +2.24 (+1.42%). Sep crude oil and gasoline on Wednesday closed sharply higher on the bullish EIA report which showed a plunge in U.S. crude oil inventories by -7.208 million bbls (vs expectations of -3.0 mln), a -1.852million bbl decline in distillate inventories (vs expectations of -1.0 million bbl), and a -0.2% w/w decline in U.S. oil production to 9.410 million bpd from the previous week's 2-year high of 9.429 million bpd. Gasoline inventories fell by -1.015 million bbls, which was less than expectations of -1.8 million bbls and was mildly negative for gasoline prices.

GLOBAL EVENT CALENDAR07/27/2017

Thursday, July 27
US 0830 ET Weekly initial unemployment claims expected +7,000 to 240,000, previous -15,000 to 233,000. Weekly continuing claims expected -18,000 to 1.959 million, previous +28,000 to 1.977 million.
0830 ET Jun durable goods orders expected +3.5% and +0.4% ex transportation, May -0.8% and +0.3% ex transportation. Jun capital goods orders non-defense ex aircraft expected +0.3%, May +0.2%.
0830 ET Jun wholesale inventories expected +0.3%, May +0.3%.
0830 ET Jun Chicago Fed national activity index, May -0.83 to -0.26.
0830 ET USDA weekly Export Sales.
1100 ET Jul Kansas City Fed manufacturing activity expected +1 to 12, Jun +3 to 11.
1300 ET Treasury auctions $28 billion of 7-year T-notes.
Friday, July 28
US 0830 ET Q2 employment cost index expected +0.6%, Q1 +0.8%.
0830 ET U.S. GDP revisions from 2014-16.
0830 ET Q2 GDP expected +2.5% (q/q annualized), Q1 +1.4%. Q2 personal consumption expected +2.9%, Q1 +1.1%. Q2 GDP price index expected +1.3%, Q1 +1.9%. Q2 core PCE expected +0.7%, Q1 +2.0% q/q.
1000 ET Revised U.S. Jul University of Michigan consumer sentiment expected unchanged at 93.1, prelim-Jul -2.0 to 93.1.
1320 ET Minneapolis Fed President Neel Kashkari (voter) answers questions form a moderator art a townhall meeting in Oakdale, MN.

U.S. STOCK CALENDAR07/27/2017

Company Ticker Time Event Description Period Estimate
Marsh & McLennan Cos Inc MMC US Bef-mkt Q2 2017 Earnings Release Q2 17 1.004
International Paper Co IP US Bef-mkt Q2 2017 Earnings Release Q2 17 0.647
Allegion PLC ALLE US Bef-mkt Q2 2017 Earnings Release Q2 17 1.002
Dr Pepper Snapple Group Inc DPS US Bef-mkt Q2 2017 Earnings Release Q2 17 1.279
Automatic Data Processing Inc ADP US Bef-mkt Q4 2017 Earnings Release Q4 17 0.669
Alexion Pharmaceuticals Inc ALXN US Bef-mkt Q2 2017 Earnings Release Q2 17 1.255
Praxair Inc PX US Bef-mkt Q2 2017 Earnings Release Q2 17 1.422
EQT Corp EQT US Bef-mkt Q2 2017 Earnings Release Q2 17 0.062
McKesson Corp MCK US Bef-mkt Q1 2018 Earnings Release Q1 18 2.831
Johnson Controls International plc JCI US Bef-mkt Q3 2017 Earnings Release Q3 17 0.712
Bristol-Myers Squibb Co BMY US Bef-mkt Q2 2017 Earnings Release Q2 17 0.736
Marathon Petroleum Corp MPC US Bef-mkt Q2 2017 Earnings Release Q2 17 1.066
BorgWarner Inc BWA US Bef-mkt Q2 2017 Earnings Release Q2 17 0.893
PG&E Corp PCG US Bef-mkt Q2 2017 Earnings Release Q2 17 0.781
Comcast Corp CMCSA US Bef-mkt Q2 2017 Earnings Release Q2 17 0.485
Nielsen Holdings PLC NLSN US Bef-mkt Q2 2017 Earnings Release Q2 17 0.672
Valero Energy Corp VLO US Bef-mkt Q2 2017 Earnings Release Q2 17 1.095
L3 Technologies Inc LLL US Bef-mkt Q2 2017 Earnings Release Q2 17 2.028
Xcel Energy Inc XEL US Bef-mkt Q2 2017 Earnings Release Q2 17 0.419
MGM Resorts International MGM US Bef-mkt Q2 2017 Earnings Release Q2 17 0.301
Celgene Corp CELG US Bef-mkt Q2 2017 Earnings Release Q2 17 1.775
ConocoPhillips COP US Bef-mkt Q2 2017 Earnings Release Q2 17 (0.017)
Helmerich & Payne Inc HP US Bef-mkt Q3 2017 Earnings Release Q3 17 (0.309)
LKQ Corp LKQ US Bef-mkt Q2 2017 Earnings Release Q2 17 0.519
Boston Scientific Corp BSX US 06:30 Q2 2017 Earnings Release Q2 17 0.311
Southwest Airlines Co LUV US 06:30 Q2 2017 Earnings Release Q2 17 1.196
Dow Chemical Co/The DOW US 06:45 Q2 2017 Earnings Release Q2 17 1.007
Invesco Ltd IVZ US 06:55 Q2 2017 Earnings Release Q2 17 0.612
American Electric Power Co Inc AEP US 06:57 Q2 2017 Earnings Release Q2 17 0.816
CBRE Group Inc CBG US 06:59 Q2 2017 Earnings Release Q2 17 0.531
American Tower Corp AMT US 07:00 Q2 2017 Earnings Release Q2 17 1.507
Altria Group Inc MO US 07:00 Q2 2017 Earnings Release Q2 17 0.859
Masco Corp MAS US 07:00 Q2 2017 Earnings Release Q2 17 0.597
Procter & Gamble Co/The PG US 07:00 Q4 2017 Earnings Release Q4 17 0.782
Raytheon Co RTN US 07:00 Q2 2017 Earnings Release Q2 17 1.756
S&P Global Inc SPGI US 07:15 Q2 2017 Earnings Release Q2 17 1.576
Verizon Communications Inc VZ US 07:30 Q2 2017 Earnings Release Q2 17 0.96
Zimmer Biomet Holdings Inc ZBH US 07:30 Q2 2017 Earnings Release Q2 17 2.085
Comcast Corp CMCSA US 07:30 Q2 2017 Earnings Call Q2 17
United Parcel Service Inc UPS US 07:45 Q2 2017 Earnings Release Q2 17 1.468
Allegion PLC ALLE US 08:00 Q2 2017 Earnings Call Q2 17
Zimmer Biomet Holdings Inc ZBH US 08:00 Q2 2017 Earnings Call Q2 17
Boston Scientific Corp BSX US 08:00 Q2 2017 Earnings Call Q2 17
Mastercard Inc MA US 08:00 Q2 2017 Earnings Release Q2 17 1.044
Masco Corp MAS US 08:00 Q2 2017 Earnings Call Q2 17
Nielsen Holdings PLC NLSN US 08:00 Q2 2017 Earnings Call Q2 17
TechnipFMC PLC FTI US 08:00 Q2 2017 Earnings Call Q2 17
Whirlpool Corp WHR US 08:00 Q2 2017 Earnings Call Q2 17
Charter Communications Inc CHTR US 08:00 Q2 2017 Earnings Release Q2 17 0.768
Raymond James Financial Inc RJF US 08:15 Q3 2017 Earnings Call Q3 17
Marsh & McLennan Cos Inc MMC US 08:30 Q2 2017 Earnings Call Q2 17
Automatic Data Processing Inc ADP US 08:30 Q4 2017 Earnings Call Q4 17
Verizon Communications Inc VZ US 08:30 Q2 2017 Earnings Call Q2 17
Equifax Inc EFX US 08:30 Q2 2017 Earnings Call Q2 17
American Tower Corp AMT US 08:30 Q2 2017 Earnings Call Q2 17
CBRE Group Inc CBG US 08:30 Q2 2017 Earnings Call Q2 17
S&P Global Inc SPGI US 08:30 Q2 2017 Earnings Call Q2 17
McKesson Corp MCK US 08:30 Q1 2018 Earnings Call Q1 18
Procter & Gamble Co/The PG US 08:30 Q4 2017 Earnings Call Q4 17
United Parcel Service Inc UPS US 08:30 Q2 2017 Earnings Call Q2 17
Dow Chemical Co/The DOW US 09:00 Q2 2017 Earnings Call Q2 17
Mastercard Inc MA US 09:00 Q2 2017 Earnings Call Q2 17
Altria Group Inc MO US 09:00 Q2 2017 Earnings Call Q2 17
Packaging Corp of America PKG US 09:00 Q2 2017 Earnings Call Q2 17
Invesco Ltd IVZ US 09:00 Q2 2017 Earnings Call Q2 17
Marathon Petroleum Corp MPC US 09:00 Q2 2017 Earnings Call Q2 17
American Electric Power Co Inc AEP US 09:00 Q2 2017 Earnings Call Q2 17
Celgene Corp CELG US 09:00 Q2 2017 Earnings Call Q2 17
Raytheon Co RTN US 09:00 Q2 2017 Earnings Call Q2 17
Brown-Forman Corp BF/B US 09:30 Annual General Meeting
BorgWarner Inc BWA US 09:30 Q2 2017 Earnings Call Q2 17
Kimco Realty Corp KIM US 10:00 Q2 2017 Earnings Call Q2 17
International Paper Co IP US 10:00 Q2 2017 Earnings Call Q2 17
Host Hotels & Resorts Inc HST US 10:00 Q2 2017 Earnings Call Q2 17
Dr Pepper Snapple Group Inc DPS US 10:00 Q2 2017 Earnings Call Q2 17
Alexion Pharmaceuticals Inc ALXN US 10:00 Q2 2017 Earnings Call Q2 17
Valero Energy Corp VLO US 10:00 Q2 2017 Earnings Call Q2 17
Xcel Energy Inc XEL US 10:00 Q2 2017 Earnings Call Q2 17
Charter Communications Inc CHTR US 10:00 Q2 2017 Earnings Call Q2 17
LKQ Corp LKQ US 10:00 Q2 2017 Earnings Call Q2 17
Mid-America Apartment Communities Inc MAA US 10:00 Q2 2017 Earnings Call Q2 17
EQT Corp EQT US 10:30 Q2 2017 Earnings Call Q2 17
Bristol-Myers Squibb Co BMY US 10:30 Q2 2017 Earnings Call Q2 17
Praxair Inc PX US 11:00 Q2 2017 Earnings Call Q2 17
Johnson Controls International plc JCI US 11:00 Q3 2017 Earnings Call Q3 17
PG&E Corp PCG US 11:00 Q2 2017 Earnings Call Q2 17
O'Reilly Automotive Inc ORLY US 11:00 Q2 2017 Earnings Call Q2 17
L3 Technologies Inc LLL US 11:00 Q2 2017 Earnings Call Q2 17
Torchmark Corp TMK US 11:00 Q2 2017 Earnings Call Q2 17
MGM Resorts International MGM US 11:00 Q2 2017 Earnings Call Q2 17
Helmerich & Payne Inc HP US 11:00 Q3 2017 Earnings Call Q3 17
ConocoPhillips COP US 12:00 Q2 2017 Earnings Call Q2 17
Southwest Airlines Co LUV US 12:30 Q2 2017 Earnings Call Q2 17
UDR Inc UDR US 13:00 Q2 2017 Earnings Call Q2 17
Public Storage PSA US 13:00 Q2 2017 Earnings Call Q2 17
Realty Income Corp O US 14:30 Q2 2017 Earnings Call Q2 17
Duke Realty Corp DRE US 15:00 Q2 2017 Earnings Call Q2 17
Digital Realty Trust Inc DLR US Aft-mkt Q2 2017 Earnings Release Q2 17 1.474
Apartment Investment & Management Co AIV US Aft-mkt Q2 2017 Earnings Release Q2 17 0.591
Align Technology Inc ALGN US 16:00 Q2 2017 Earnings Release Q2 17 0.728
Republic Services Inc RSG US Aft-mkt Q2 2017 Earnings Release Q2 17 0.598
Electronic Arts Inc EA US Aft-mkt Q1 2018 Earnings Release Q1 18 0.27
Cerner Corp CERN US Aft-mkt Q2 2017 Earnings Release Q2 17 0.613
Arthur J Gallagher & Co AJG US Aft-mkt Q2 2017 Earnings Release Q2 17 1.029
Expedia Inc EXPE US Aft-mkt Q2 2017 Earnings Release Q2 17 0.92
Leggett & Platt Inc LEG US Aft-mkt Q2 2017 Earnings Release Q2 17 0.649
Stryker Corp SYK US 16:00 Q2 2017 Earnings Release Q2 17 1.509
Essex Property Trust Inc ESS US Aft-mkt Q2 2017 Earnings Release Q2 17 2.916
FirstEnergy Corp FE US Aft-mkt Q2 2017 Earnings Release Q2 17 0.597
Fortive Corp FTV US Aft-mkt Q2 2017 Earnings Release Q2 17 0.694
Aflac Inc AFL US Aft-mkt Q2 2017 Earnings Release Q2 17 1.634
Edison International EIX US Aft-mkt Q2 2017 Earnings Release Q2 17 0.903
Flowserve Corp FLS US Aft-mkt Q2 2017 Earnings Release Q2 17 0.43
National Oilwell Varco Inc NOV US Aft-mkt Q2 2017 Earnings Release Q2 17 (0.147)
Intel Corp INTC US 16:00 Q2 2017 Earnings Release Q2 17 0.68
Western Digital Corp WDC US Aft-mkt Q4 2017 Earnings Release Q4 17 2.833
Amazon.com Inc AMZN US 16:01 Q2 2017 Earnings Release Q2 17 1.424
Starbucks Corp SBUX US 16:04 Q3 2017 Earnings Release Q3 17 0.551
Mattel Inc MAT US 16:05 Q2 2017 Earnings Release Q2 17 (0.093)
VeriSign Inc VRSN US 16:05 Q2 2017 Earnings Release Q2 17 0.993
Mohawk Industries Inc MHK US 16:05 Q2 2017 Earnings Release Q2 17 3.60
Mettler-Toledo International Inc MTD US 16:10 Q2 2017 Earnings Release Q2 17 3.894
Unum Group UNM US 16:15 Q2 2017 Earnings Release Q2 17 1.011
Hartford Financial Services Group Inc/The HIG US 16:15 Q2 2017 Earnings Release Q2 17 0.943
Principal Financial Group Inc PFG US 16:15 Q2 2017 Earnings Release Q2 17 1.224
KLA-Tencor Corp KLAC US 16:15 Q4 2017 Earnings Release Q4 17 1.597
Eversource Energy ES US 16:15 Q2 2017 Earnings Release Q2 17 0.682
Align Technology Inc ALGN US 16:30 Q2 2017 Earnings Call Q2 17
Cerner Corp CERN US 16:30 Q2 2017 Earnings Call Q2 17
Expedia Inc EXPE US 16:30 Q2 2017 Earnings Call Q2 17
Stryker Corp SYK US 16:30 Q2 2017 Earnings Call Q2 17
Edison International EIX US 16:30 Q2 2017 Earnings Call Q2 17
VeriSign Inc VRSN US 16:30 Q2 2017 Earnings Call Q2 17
Mettler-Toledo International Inc MTD US 16:30 Q2 2017 Earnings Call Q2 17
Eastman Chemical Co EMN US 16:30 Q2 2017 Earnings Release Q2 17 1.905
Republic Services Inc RSG US 17:00 Q2 2017 Earnings Call Q2 17
Mattel Inc MAT US 17:00 Q2 2017 Earnings Call Q2 17
Electronic Arts Inc EA US 17:00 Q1 2018 Earnings Call Q1 18
Starbucks Corp SBUX US 17:00 Q3 2017 Earnings Call Q3 17
Intel Corp INTC US 17:00 Q2 2017 Earnings Call Q2 17
Digital Realty Trust Inc DLR US 17:30 Q2 2017 Earnings Call Q2 17
Amazon.com Inc AMZN US 17:30 Q2 2017 Earnings Call Q2 17
Fortive Corp FTV US 17:30 Q2 2017 Earnings Call Q2 17
Western Digital Corp WDC US 17:30 Q4 2017 Earnings Call Q4 17
KLA-Tencor Corp KLAC US 18:00 Q4 2017 Earnings Call Q4 17