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Morning Call 12/22

|Includes: ADSK, AIR, CAMP, CELG, Capital One Financial Corporation (COF), CTAS, LJPC, NKE, NXTD, RRGB, SGH, WWE
Summary

News.

Earnings.

Conference calls.

Barchart Morning Call

Barchart.comFri Dec 22, 6:34AM CST

OVERNIGHT MARKETS AND NEWS

Mar E-mini S&Ps (ESH18 +0.08%) this morning are up +0.10% after Congress late Thursday night averted a government shutdown and passed a temporary spending bill that will keep the U.S. government open through Jan 19. European stocks are down -0.39% on rekindled political risks after Catalan separatists won a regional election in Spain. Losses in European stocks were limited after a gauge of German Jan consumer confidence rose more than expected and France Q3 GDP was revised higher. Asian stocks settled mostly higher: Japan +0.16%, Hong Kong +0.72%, China -0.09%, Taiwan +0.46%, Australia +0.15%, Singapore +0.09%, South Korea +0.47%, India +0.55%. A rally in exporter stocks boosted the Nikkei Stock Index on prospects of stronger earnings after USD/JPY rose to a 1-week high Thursday. 

The dollar index (DXY00 +0.09%) is up +0.08%. EUR/USD (^EURUSD) is down -0.16%. USD/JPY (^USDJPY) is up +0.05%.

Mar 10-year T-note prices (ZNH18 -0.01%) are unchanged.

German Jan GfK consumer confidence rose +0.1 to 10.8, stronger than expectations of no change at 10.7.

German Nov import prices rose +0.8% m/m and +2.7% y/y, stronger than expectations of +0.7% m/m and +2.6% y/y.

France Q3 GDP was revised upward to +0.6% q/q and +2.3% y/y from +0.5% q/q nod +2.2% y/y.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Nov personal spending (expected +0.5%, Oct +0.3%) and Nov personal income (expected +0.4%, Oct +0.4%), (2) Nov PCE deflator (expected +0.3% m/m and +1.8% y/y, Oct +0.1% m/m and +1.6% y/y) and Nov core PCE deflator (expected +0.1% m/m and +1.5% y/y, Oct +0.2% m/m and +1.4% y/y), (3) Nov durable goods orders (expected +2.0% and +0.5% ex transportation, Oct -1.2% and +0.4% ex transportation), (4) Nov new home sales (expected -4.4% to 655,000, Oct +6.2% to 685,000), (5) final-Dec University of Michigan U.S. consumer sentiment index (expected +0.4 to 97.2, prelim-Dec -1.7 to 96.8), (6) Dec Kansas City Fed manufacturing activity (expected -1 to 15, Nov -7to 16), (7) USDA Q4 Hogs & Pigs Inventory, (8) USDA Nov Cattle on Feed, (9) USDA Nov Cold Storage.

Notable Russell 1000 earnings reports today include: none.

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

Equity conferences this week: none.

OVERNIGHT U.S. STOCK MOVERS

Capital One Financial (COF +0.94%) was upgraded to 'Buy' from 'Neutral' at Compass Point Research & Trading LLC with a price target of $122.

Red Robin Gourmet Burgers (RRGB -0.75%) was upgraded to 'Buy' from 'Hold' at Jeffries with a price target of $63.

Cintas (CTAS +0.35%) rose 2% in after-hours trading after it reported Q2 adjusted EPS from continuing operations of $1.31, higher than consensus of $1.27, and then said it sees full-year adjusted EPS from continuing operations $5.39 to $5.46, better than consensus of $5.37.

Autodesk (ADSK -0.57%) was rated a new 'Outperform' at Oppenheimer with an 18-month target price of $135.

La Jolla Pharmaceutical (LJPC +4.51%) rose nearly 4% in after-hours trading after the FDA approved its Giapreza injection for adults with low blood pressure due to septic of other distributive shock.

Celgene (CELG -0.36%) fell nearly 5% in after-hours trading after it said its drug regimen in a Phase 3 follicular lymphoma study failed to meet its endpoints.

Smart Global Holdings (SGH -1.71%) climbed almost 8% in after-hours trading after it reported Q1 adjusted EPS of $1.05, better than consensus of 92 cents, and then said it sees Q2 adjusted EPS of $130-$1.36, well above consensus of 91 cents.

AAR Corp (AIR +2.14%) dropped nearly 9% in after-hours trading after it reported Q2 adjusted EPS of 35 cents, below consensus of 37 cents.

Nike (NKE +1.86%) rose +0.5% in after-hours trading after it reported Q2 EPS of 46 cents, above consensus of 40 cents.

World Wrestling Entertainment (WWE -0.62%) slid over 3% in after-hours trading after the CEO, Vince McMahon, sold 3.34 million shares of WWE to fund Alpha Entertainment LLC.

CalAmp (CAMP +1.54%) fell 4% in after-hours trading after it said it sees Q4 adjusted Ebitda of $12 million to $15 million, the mid-point below consensus of $14.4 million.

NXT-ID (NXTD +38.36%) rose 9% in after-hours trading on top of Thursday's 38% gain and Wednesday's 74% surge after it announced that its Fit Pay unit would jointly develop a platform with Cascade FinTech that would allow consumers to use cryptocurrencies to pay for goods "at millions of retail locations worldwide."

MARKET COMMENTS

Mar S&P 500 E-mini stock futures (ESH18 +0.08%) this morning are up +2.75 points (+0.10%). Thursday's closes: S&P 500 +0.20%, Dow Jones +0.23%, Nasdaq unch. The S&P 500 on Thursday closed higher on carry-over support from Wednesday's passage of tax cuts by Congress, which will boost corporate earnings. Stocks were also supported by the +3.5-point increase in the U.S. Dec Philadelphia Fed business outlook survey to 26.2, stronger than expectations of -1.7to 21.0. Stocks were undercut by the unexpected downward revision of U.S. Q3 GDP to 3.2% from 3.3% and by the +20,000 increase in U.S. weekly jobless claims to a 5-week high of 245,000.

Mar 10-year T-note prices (ZNH18 -0.01%) this morning are unch. Thursday's closes: TYH8 +2.00, FVH8 -0.75. Mar 10-year T-notes on Thursday closed higher on the unexpected downward revision in U.S. Q3 GDP to 3.2% from 3.3% and by the larger-than-expected +20,000 increase in U.S. weekly jobless claims to a 5-week high of 245,000.

The dollar index (DXY00 +0.09%) this morning is up +0.075 (+0.08%). EUR/USD (^EURUSD) is down -0.0019 (-0.16%) and USD/JPY (^USDJPY) is up +0.06 (+0.05%). Thursday's closes: Dollar Index -0.035 (-0.04%), EUR/USD +0.0003 (+0.03%), USD/JPY -0.07 (-0.06%). The dollar index on Thursday closed lower on the weaker-than-expected U.S. economic data on Q3 GDP and weekly initial unemployment claims, which is dovish for Fed policy, and also by the decline in the 10-year T-note yield, which is negative for the dollar's interest rate differentials.

Feb crude oil (CLG18 -0.65%) this morning is down -30 cents (-0.51%) and Feb gasoline (RBG18 -0.76%) is -0.0117(-0.67%). Thursday's closes: Feb WTI crude +0.27 (+0.46%), Feb gasoline +0.0108 (+0.62%). Feb crude oil and gasoline on Thursday posted 1-week highs and closed higher on positive carry-over from Wednesday's EIA data that showed EIA crude inventories fell -6.5 million bbl to a 2-year low. Crude oil prices were also boosted by the increase in the crack spread to a 1-week high, which gives incentive for refiners to boost their crude purchases to refine the crude into gasoline.

Metals prices this morning are mixed with Feb gold (GCG18 +0.14%) +1.3 (+0.10%) at a 2-week high, Mar silver (SIH18+0.13%) +0.0001 (+0.01%) and Mar copper (HGH18 -0.19%) -0.006 (-0.19%). Thursday's closes: Feb gold +1.0 (+0.08%), Mar silver -0.036 (-0.22%), Mar copper +0.0235 (+0.74%). Metals on Thursday settled mixed with Feb gold at a 1-week high and Mar copper at a 1-3/4 month high. Metals prices were boosted by a weaker dollar and by strength in stocks that bolsters optimism in the economic outlook, which is positive for industrial metals demand.

GLOBAL EVENT CALENDAR12/22/2017

Friday, Dec 22
US 0830 ET Nov personal spending expected +0.5%, Oct +0.3%. Nov personal income expected +0.4%, Oct +0.4%.
0830 ET Nov PCE deflator expected +0.3% m/m and +1.8% y/y, Oct +0.1% m/m and +1.6% y/y. Nov core PCE deflator expected +0.1% m/m and +1.5% y/y, Oct +0.2% m/m and +1.4% y/y.
0830 ET Nov durable goods orders expected +2.0% and +0.5% ex transportation, Oct -1.2% and +0.4% ex transportation. Nov capital goods new orders nondefense ex aircraft expected +0.5% m/m, Oct +0.3%.
1000 ET Nov new home sales expected -4.4% to 655,000, Oct +6.2% to 685,000.
1000 ET Final-Dec University of Michigan U.S. consumer sentiment index expected +0.4 to 97.2, prelim-Dec -1.7 to 96.8.
1100 ET Dec Kansas City Fed manufacturing activity expected -1 to 15, Nov -7 to 16.
1200 ET USDA Q4 Hogs & Pigs Inventory.
1200 ET USDA Nov Cattle on Feed.
1500 ET USDA Nov Cold Storage.
Tuesday, Dec 26
US 0900 ET Oct S&P CoreLogic composite-20 home prices expected +0.80% m/m and +6.25% y/y, Sep +0.52% m/m and +6.19% y/y.
1000 ET Dec Richmond Fed manufacturing index expected -9 to 21, Nov +18 to 30.
1030 ET Dec Dallas Fed manufacturing activity expected +0.6 to 20.0, Nov -8.2 to 19.4.
1100 ET USDA weekly grain export inspections.
1300 ET Treasury auctions 2-year T-notes.

U.S. STOCK CALENDAR12/22/2017

Super Micro Computer Inc SMCI US Q1 2018 Earnings Release Q1 18 0.278
Iconix Brand Group Inc ICON US Q3 2017 Earnings Release Q3 17 0.153
Gigamon Inc GIMO US Extraordinary General Meeting
Gigamon Inc GIMO US Special Meeting - M&A Vote