Barchart Morning Call
Barchart.com - Fri 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."
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|