Wednesday, July 23, 2014

Magnetek - Barchart's Chart of the Day

Magnetek (MAG) is the Barchart Chart of the Day.  The electronic component stock started an abrupt turn around in mid-March and now had a Trend Spotter buy signal, a Weighted Alpha of 46.30+ and gained 40.61% in the last year.

The Chart of the Day is Magnetek (MAG).  I found the stock by sorting today's New High List for frequency of new highs in the last month then used the Flipchart feature to review the charts.  Since the Trend Spotter signaled another buy on 7/14 the stock gained 4.90%.

MAG manufactures digital power and motion control systems used in material handling, people moving, wireless communications and energy delivery. The Company is headquartered in Menomonee Falls, WI in the greater Milwaukee area and operates manufacturing plants in Pittsburgh, PA and Mississauga, Ontario, Canada as well as Menomonee Falls.


The status of Barchart's Opinion trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 10 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com web site when you read.

Barchart technical indicators:

  • Barchart technical buy signal 100%
  • Trend Spotter buy signal
  • Above its 20, 50 and 100 day moving averages
  • 16 new highs and up 10.56% in the last month
  • Relative Strength Index 24.21%
  • Barchart computes a technical support level at 24.21
  • Recently traded at 25.45 with a 50 day moving average of 23.00
Fundamental factors:
  • Market Cap $82.97 million
  • P/E 18.79
  • Earnings expected to increase 28.80% this year and another 31.70% next year
  • The analyst following the stock has a hold rating in place.
Very fast moving so strictly watch the 50 and 100 day moving averages

The9 Limited - Buy Signals

Today I added The9 Limited (NCTY) to the Barchart Van Meerten New High Portfolio for very positive price momentum:


Barchart technical indicators:
  • 88% Barchart technical buy signals
  • Trend Spotter buy signal
  • Above its 20, 50 and 100 day moving averages
  • 17 new highs and up 60.85% in the last month
  • Relative Strength Index 90.11%
  • Bachart computes a technical support level at 3.24
  • Recently traded at 3.75 with a 50 day moving average of 2.51


5 Stocks with All Time Highs

This morning I used Barchart to sort yesterday's list of stocks hitting All Time Highs to see which ones hit the most frequent new highs in the last month, then used the Flipchart feature to review the charts.  The list included Macquire Infrastructure (MIC), National-Oilwell (NOV), New Source Energy (NSLP), Ball Corp (BLL), and Wellpoint Health Networks (WLP):

Macquire Infrastructure (MIC)


Barchart technical indicators:
  • 96% Barchart technical buy signals
  • Trend Spotter buy signal
  • Above its 20, 50 and 100 day moving averages
  • 15 new highs and up 21.13% in the last month
  • Relative Strength Index 79.81%
  • Barchart computes a technical support level at 72.01
  • Recently traded at 73.04 with a 50 day moving average of 62.74


Barchart technical indicators:
  • 96% Barchart technical buy signals
  • Trend Spotter buy signal
  • Above its 20, 50 and 100 day moving averages
  • 15 new highs and up 8.1% in the last month
  • Relative Strength Index 73.39%
  • Barchart computes a technical support level at 85.52
  • Recently traded at 86.03 with a 50 day moving average of 78.71


Barchart technical indicators:
  • 100% Barchart technical buy signals
  • Trend Spotter buy signal
  • Above its 20, 50 and 100 day moving averages
  • 15 new highs and up 15.56% in the last month
  • Relative Strength Index 83.79%
  • Barchart computes a technical support level at 26.05
  • Recently traded at 27.03 with a 50 day moving average of 23.68
Ball Corp (BLL)


Barchart technical indicators:
  • 32% Barchart technical buy signal
  • Trend Spotter hold signal
  • 14 new highs and up 2.76% in the last month
  • Relative Strength Index 54.13%
  • Barchart computes a technical support level at 61.81
  • Recently traded at 63.24 with a 50 day moving average of 61.55


Barchart technical indicators:
  • 96% Barchart technical buy signals
  • Trend Spotter buy signal
  • Above its 20, 50 and 100 day moving averages
  • 14 new highs and up 6.24% in the last month
  • Relative Strength Index 72.43%
  • Barchart computes a technical support level at 114.21
  • Recently traded at 115.32 with a 50 day moving average of 108.57










BARCHART MORNING CALL 7/23

OVERNIGHT MARKETS AND NEWS
Sep E-mini S&Ps (ESU14 +0.18%) this morning are trading slightly higher by +0.18% on support from today's +0.63% rally in the Euro Stoxx 50 index and a further +0.2% upward rebound in Russian stocks. Asian stocks today closed mostly higher: Japan -0.10%, Hong Kong +0.80%, China +0.23%, Australia +0.60%, Singapore +0.72%, South Korea -0.11, India +0.47%, Turkey +0.38%. The dollar index (DXY00 -0.03%) is slightly lower by -0.03% this morning, while EUR/USD (^EURUSD) is up +0.03% and USD/JPY (^USDJPY) is down -0.05%. Sep T-note prices (ZNU14 +0.05%) are up 1 tick.
Commodity prices are little changed on net this morning. Sep WTI crude oil (CLU14 +0.14%) is up +0.02% and Sep gasoline (RBU14 -0.05%) is down -0.09%. Aug gold (GCQ14 +0.11%) is up +0.16%, Sep silver (SIU14 -0.01%) is up +0.10%, and Sep copper (HGU14 +0.05%) is down -0.31%. Grain prices are steady to slightly higher this morning. Livestock and softs are mixed.
The Russian Micex stock index today is up +0.2%, adding to Tuesday's gain of +1.55% for the second day of recovery after 6 straight losses totaling -7.7%. The EU is now waiting to see if Russia assists in an international investigation into last week's downing of the Malaysia Air passenger plane in deciding whether to launch sanctions that could include more limited access to the EU capital markets and restrictions on access to sensitive energy and defense technology. The markets were pleased with the EU's limited sanctions threat.
The Bank of England at its July 9-10 policy meeting voted 9-0 to leave its base rate unchanged at 0.50%, according to the minutes released today. The minutes also said that some Monetary Policy Committee members have started to argue that there are reduced risks from a rate hike due to strengthening economic growth. However, other members said that "although the domestic economy was growing at or above longer-term average rates, there was little indication of inflation pressures building." The minutes added, "A premature tightening in monetary policy might leave the economy vulnerable to shocks." The MPC is waiting for the BOE's release next month of the quarterly Inflation Report, which will provide more data on the amount of slack in the UK economy.
Spain's Q2 GDP improved slightly to +0.5% q/q from +0.4% q/q in Q1, which was slightly above market expectations of +0.4%. Spain's Q2 GDP on a year-on-year basis was up +1.0% y/y. Spain's GDP has now risen for four straight quarters, indicating that it was clearly emerged from the recession sparked by the global financial crisis and the Eurozone debt crisis. The Bank of Spain is forecasting that Spain's GDP growth rate will improve to +2.0% in 2015 from +1.3% in 2014, indicating expectations for lackluster economic growth in Spain.
U.S. STOCK PREVIEW
There are 37 of the S&P 500 companies that report earnings today with notable reports including: AT&T (consensus $0.63), Facebook (0.32), E-Trade (0.23), Boeing (1.98), Northrop Grumman (2.22), Dow Chemical (0.72), Delta Airlines (1.03), PepsiCo (1.23), Norfolk Southern (1.74), and Gilead Sciences (1.79). Equity conferences during the remainder of this week include: Wells Fargo Small Cell Symposium on Thu.
Sep E-mini S&Ps this morning are up +0.18% on support from today's +0.63% rally in the Europe Stoxx 50 index. The U.S. stock market on Tuesday rallied moderately with a new record high in the S&P 500 index: S&P 500 +0.50%, Dow Jones +0.36%, Nasdaq +0.71%. Bullish factors included (1) reduced concerns about the Russian-Ukraine situation after Russian separatists handed over the black boxes to Malaysian authorities and released the train with bodies of the victims, (2) the stronger than expected June existing home sales report of +2.6% to a new 8-month high, and (3) the stabilization of the June CPI report that took some tightening pressure off the Fed.







OVERNIGHT U.S. STOCK MOVERS
  • Of the 13 of the S&P 500 companies that have reported earnings this morning, only two reported below-consensus EPS, i.e., Whirlpool (WHR +2.03%) (2.62 vs consensus of 2.91) and Praxair (PX +0.16%) (1.58 vs 1.59). Notable companies that have reported above-consensus earnings this morning include Dow Chemical (DOW +0.85%) (0.74 vs 0.72), PepsiCo (PEP -0.82%) (1.32 vs 1.23), Delta Airlines (DAL +1.43%) (1.04 vs 1.033), and General Dynamics (GD +0.17%) (1.88 vs 1.77).
  • Apple (AAPL +0.83%) fell late yesterday after after reporting third quarter results and fourth quarter guidance.
  • Microsoft (MSFT unch) recovered and rose more than 1% late yesterday after an initial dip on its earnings report. Microsoft's Q2 EPS of 55 cents was below the consensus of 60 cents due to expenses related to Microsoft's purchase of Nokia's mobile business in April.
  • Broadcom (BRCM +0.31%) (+3%) and Robert Half (RHI +0.73%) (+4%) rallied in after-hours trading yesterday after positive earnings results.
  • Ballard Power Systems (BLDP +0.24%) rallied near 3% late yesterday after news its received a purchase order from New Flyer Industries.
  • Xilinx (XLNX -0.37%) fell sharply by nearly 9% late yesterday after reporting earnings.
  • Deutsche Bank is down more than -2% today after news that the New York Fed in December sent a letter to the bank saying that regulators found that the bank's U.S. operations suffered from inadequate oversight.
MARKET COMMENTS
Sep 10-year T-notes this morning are up 1 tick. Sep 10-year T-note futures prices on Tuesday closed mildly higher due to ongoing safe-haven demand and technical buying. Closes: TYU4 +3.5, FVU4 +4.25.
The dollar index this morning is slightly lower by -0.03 points (-0.03%) while EUR/USD is up +0.0004 (+0.03%) and USD/JPY is down -0.05 (-0.05%). The dollar index on Tuesday closed moderately higher as EUR saw weakness as the markets wait for the shoe to drop on the extent of new sanctions on Russia. The dollar index was also supported by the stronger-than-expected U.S. existing home sales report. Closes: Dollar index +0.22 (+0.27%), EUR/USD -0.0058 (-0.43), USD/JPY +0.06 (+0.06%).
Sep WTI crude oil this morning is up +0.02 (+0.02%) and Sep gasoline is down -0.0027 (-0.09%). Aug crude and gasoline prices on Tuesday closed lower: CLU4 -0.47 (-0.46%), RBU4 -0.0107 (-0.37%). Bearish factors included expectations for a continued rise in gasoline inventories, bearish API figures, the rally in the dollar index, and long liquidation pressure after Monday’s rally.
GLOBAL EVENT CALENDAR07/23/2014
US0700 ETWeekly MBA mortgage applications, previous -3.6% with purchase sub-index -7.6% and refi sub-index -0.1%.
1030 ETEIA Weekly Petroleum Status Report.
UK0430 ETMinutes of the Jul 9-10 BOE policy meeting.
0600 ETUK Jul CBI reported sales expected +11 to 15, Jun 4.
EUR1000 ETEurozone Jul consumer confidence expected unch at -7.5.
JPN1950 ETJapan Jun trade balance expected -665.3 billion yen, May -910.8 billion yen. Jun exports expected +1.0% y/y, May -2.7% y/y. Jun imports expected +8.4% y/y, May -3.5% y/y.
2135 ETJapan Jul Markit/JMMA manufacturing PMI, Jun 51.5.
CHI2145 ETChina Jul HSBC flash manufacturing PMI expected +0.3 to 51.0, Jun +1.3 to 50.7.
U.S. STOCK CALENDAR07/23/2014
Company NameTickerTimeEvent DescriptionPeriodEstimate
Northrop Grumman CorpNOC USBef-mktQ2 2014 Earnings ReleaseQ2 20142.221
Praxair IncPX USBef-mktQ2 2014 Earnings ReleaseQ2 20141.587
Boeing Co/TheBA USBef-mktQ2 2014 Earnings ReleaseQ2 20141.982
Ryder System IncR USBef-mktQ2 2014 Earnings ReleaseQ2 20141.393
Thermo Fisher Scientific IncTMO USBef-mktQ2 2014 Earnings ReleaseQ2 20141.624
Dow Chemical Co/TheDOW USBef-mktQ2 2014 Earnings ReleaseQ2 20140.715
Biogen Idec IncBIIB USBef-mktQ2 2014 Earnings ReleaseQ2 20142.831
Delta Air Lines IncDAL USBef-mktQ2 2014 Earnings ReleaseQ2 20141.031
Freeport-McMoRan IncFCX USBef-mktQ2 2014 Earnings ReleaseQ2 20140.518
General Dynamics CorpGD USBef-mktQ2 2014 Earnings ReleaseQ2 20141.77
TE Connectivity LtdTEL USBef-mktQ3 2014 Earnings ReleaseQ3 20140.988
Simon Property Group IncSPG USBef-mktQ2 2014 Earnings ReleaseQ2 20142.134
Air Products & Chemicals IncAPD US6:00Q3 2014 Earnings ReleaseQ3 20141.448
Whirlpool CorpWHR US6:00Q2 2014 Earnings ReleaseQ2 20142.913
PepsiCo IncPEP US7:00Q2 2014 Earnings ReleaseQ2 20141.23
EMC Corp/MAEMC US7:00Q2 2014 Earnings ReleaseQ2 20140.425
Norfolk Southern CorpNSC US8:00Q2 2014 Earnings ReleaseQ2 20141.736
PepsiCo IncPEP US8:00Q2 2014 Earnings CallQ2 2014
Thermo Fisher Scientific IncTMO US8:30Q2 2014 Earnings CallQ2 2014
ACE LtdACE US8:30Q2 2014 Earnings CallQ2 2014
EMC Corp/MAEMC US8:30Q2 2014 Earnings CallQ2 2014
TE Connectivity LtdTEL US8:30Q3 2014 Earnings CallQ3 2014
Norfolk Southern CorpNSC US8:45Q2 2014 Earnings CallQ2 2014
Dow Chemical Co/TheDOW US9:00Q2 2014 Earnings CallQ2 2014
Biogen Idec IncBIIB US9:00Q2 2014 Earnings CallQ2 2014
FMC Technologies IncFTI US9:00Q2 2014 Earnings CallC1 2014
General Dynamics CorpGD US9:00Q2 2014 Earnings CallQ2 2014
Air Products & Chemicals IncAPD US10:00Q3 2014 Earnings CallQ3 2014
Delta Air Lines IncDAL US10:00Q2 2014 Earnings CallQ2 2014
Freeport-McMoRan IncFCX US10:00Q2 2014 Earnings CallQ2 2014
Whirlpool CorpWHR US10:00Q2 2014 Earnings CallQ2 2014
Boeing Co/TheBA US10:30Q2 2014 Earnings CallQ2 2014
Praxair IncPX US11:00Q2 2014 Earnings CallQ2 2014
Ryder System IncR US11:00Q2 2014 Earnings CallQ2 2014
Nabors Industries LtdNBR US11:00Q2 2014 Earnings CallQ2 2014
Constellation Brands IncSTZ US11:00Annual General MeetingY 2014
Simon Property Group IncSPG US11:00Q2 2014 Earnings CallQ2 2014
Linear Technology CorpLLTC US11:30Q4 2014 Earnings CallQ4 2014
Northrop Grumman CorpNOC US12:00Q2 2014 Earnings CallQ2 2014
Amphenol CorpAPH US13:00Q2 2014 Earnings CallQ2 2014
QUALCOMM IncQCOM US16:00Q3 2014 Earnings ReleaseQ3 20141.213
Gilead Sciences IncGILD US16:05Q2 2014 Earnings ReleaseQ2 20141.794
Citrix Systems IncCTXS US16:05Q2 2014 Earnings ReleaseQ2 20140.607
F5 Networks IncFFIV US16:05Q3 2014 Earnings ReleaseQ3 20141.35
Gilead Sciences IncGILD US16:30Q2 2014 Earnings CallQ2 2014
F5 Networks IncFFIV US16:30Q3 2014 Earnings CallQ3 2014
AT&T IncT US16:30Q2 2014 Earnings CallQ2 2014
TripAdvisor IncTRIP US16:30Q2 2014 Earnings CallQ2 2014
Citrix Systems IncCTXS US16:45Q2 2014 Earnings CallQ2 2014
Tractor Supply CoTSCO US17:00Q2 2014 Earnings CallQ2 2014
CA IncCA US17:00Q1 2015 Earnings CallQ1 2015
E*TRADE Financial CorpETFC US17:00Q2 2014 Earnings CallQ2 2014
Varian Medical Systems IncVAR US17:00Q3 2014 Earnings CallQ3 2014
Facebook IncFB US17:00Q2 2014 Earnings CallQ2 2014
Tractor Supply CoTSCO USAft-mktQ2 2014 Earnings ReleaseQ2 20140.947
Crown Castle International CorpCCI USAft-mktQ2 2014 Earnings ReleaseQ2 20140.858
AT&T IncT USAft-mktQ2 2014 Earnings ReleaseQ2 20140.636
CA IncCA USAft-mktQ1 2015 Earnings ReleaseQ1 20150.602
Flowserve CorpFLS USAft-mktQ2 2014 Earnings ReleaseQ2 20140.924
Torchmark CorpTMK USAft-mktQ2 2014 Earnings ReleaseQ2 20141.027
Equifax IncEFX USAft-mktQ2 2014 Earnings ReleaseQ2 20140.943
E*TRADE Financial CorpETFC USAft-mktQ2 2014 Earnings ReleaseQ2 20140.231
Varian Medical Systems IncVAR USAft-mktQ3 2014 Earnings ReleaseQ3 20141.087
Macerich Co/TheMAC USAft-mktQ2 2014 Earnings ReleaseQ2 20140.84
TripAdvisor IncTRIP USAft-mktQ2 2014 Earnings ReleaseQ2 20140.605
Facebook IncFB USAft-mktQ2 2014 Earnings ReleaseQ2 20140.321
AvalonBay Communities IncAVB USAft-mktQ2 2014 Earnings ReleaseQ2 20141.664
Assurant IncAIZ USAft-mktQ2 2014 Earnings ReleaseQ2 20141.544
QUALCOMM IncQCOM US17:45Q3 2014 Earnings CallQ3 2014
Amphenol CorpAPH USQ2 2014 Earnings ReleaseQ2 20141.051

Tuesday, July 22, 2014

Nippom Telegraoh and Telephone - Barchart's Chart of the Day

Nippon Telegraph and Telephone (NTT) is the Barchart Chart of the Day.  The Japanese telecommunication stock has a Trend Spotter buy signal, a Weighted Alpha of 39.71+, gained 26.51% in the last year, plus pays a 2.24% dividend.

The Chart of the Day is Nippon Telegraph and Telephone (NTT).  I found the stock by sorting today's New High list for new high frequency in the last month, then used the Flipchart feature to review the charts.  Since the Trend Spotter signaled a buy on 4/29 the stock is up 22.78%.

NTT provides a variety of telecommunications services, including telephone, telegraph, leased circuits, data communication, terminal equipment sales and other services. The Company provides both local and long distance telephone services within Japan, but it does not provide service in the international markets.



The status of Barchart's Opinion trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 10 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com web site when you read.

Barchart technical indicators:

  • 96% Barchart technical buy signals
  • Trend Spotter buy signal
  • Above its 20, 50 and 100 day moving averages
  • 17 new highs and up 8.20% in the last month
  • Relative Strength  Index 76.38%
  • Barchart computes a technical support level at 33.08
  • Recently traded at 33.83 with a 50 day moving average of 30.72
Fundamental factors:
  • Market Cap $75.13 billion
  • P/E 13.02
  • Dividend yield 2.24%
  • Revenue expected to grow 3.70% this year and another 1.20% next year
  • Earnings estimated to increase 6.40% next year and continue to increase at an annual rate of 7.00% for the next 5 years
  • The Wall Street analyst that follows the stock issued a strong buy recommendation on the stock
This is a total return stock and you should play it as such.

More Housecleaning

I try to make sure I review all my stocks at least once a week. I also try my hardest to be disciplined and not fall in love with any stock or needlessly hope for a rebound.  My trigger points of concern are a Trend Spotter sell signal, a drop below 10% of its most recent high and/or continued trading below its 50 day moving averages.  Any one signal can cause a concern and I might sell but if all 3 are there then its almost a no brainer; that the stock is a loser.  My last step is to review the chart before I make my final decision.

On the other hand, this isn't a perfect world and sometimes I miss noticing my trigger points.  Even worse I put in a Market Good Till Cancel and almost immediately after its executed the stock rebounds.  At other times, the stock is so thinly traded at all my order can't be immediately executed and the stock tanks while my executions come dribbling in.  Such is life in the big city.

On Saturday I placed Market Good Till Cancel orders on these stocks in the Barchart Van Meerten Speculative portfolio and my executes are dribbling in:  Cell Therapeutics (CTIC), Glowpoint (GLOW), Anooraq Resources (ATL), America Realty Investors (ARL), Gravity Co (GRVY), Hill International (HIL), North American Energy Partners (NOA), Energy Recovery (ERII), Sypris Solutions (SYPR), Inventure Foods (SNAK):

NOTE: Some of these stocks moved yesterday and this morning before I could get this article published

Cell Therapeutics (CTIC)


Barchart technical indicators:
  • 56% Barchart technical sell signal
  • Trend Spotter sell signal
  • Below its 20, 50 and 100 day moving averages
  • 35.53% off its recent high
  • Relative Strength Index 46.39%
Glowpoint (GLOW)

Barchart technical indicators:
  • 88% Barchart technical sell signal
  • Trend Spotter sell signal
  • Below its 20, 50 and 100 day moving averages
  • 32.02% off its recent high
  • Relative Strength Index 42.82%


Barchart technical indicators:
  • 96% Barchart technical sell signals
  • Trend Spotter sell signal
  • Below its 20, 50 and 100 day moving averages
  • 42.62% off its recent high
  • Relative Strength Index 21.16%


Barchart technical indicators:
  • 67% Barchart technical sell signals
  • Trend Spotter buy signal
  • Below its 20, 50 and 100 day moving averages
  • 40.58% off its recent high
  • Relative Strength Index 42.90%


Gravity Co (GRVY)


Barchart technical indicators:
  • 80% Barchart technical sell signals
  • Trend Spotter sell signal
  • Below its 20, 50 and 100 day moving averages
  • 37.98% off its recent high
  • Relative Strength Index 39.23%


Barchart technical indicators:
  • 64% Barchart technical sell signals
  • Trend Spotter sell signal
  • Below its 20, 50 and 100 day moving averages
  • 25.76% off its recent high
  • Relative Strength Index 38.11%


Barchart technical indicators:
  • 40% Barchart technical sell signals
  • Trend Spotter sell signal
  • Below its 20, 50 and 100 day moving averages
  • 12.59% off its recent high
  • Relative Strength Index 33.76%


Barchart technical indicators:
  • 80% Barchart technical sell signals
  • Trend Spotter sell signal
  • Below its 20, 50 and 100 day moving averages
  • 25.89% off its recent high
  • Relative Strength Index 39.36%


Barchart technical indicators:
  • Barchart technical hold signals
  • Trend Spotter hold signal
  • Below its 20 day moving average
  • 19.23% off its recent high
  • Relative Strength Index 50.94%


Barchart technical indicators:
  • 48% Barchart technical sell signals
  • Trend Spotter sell signal
  • Below its 20, 50 and 100 day moving averages
  • 21.72% off its recent high
  • Relative Strength Index 45.87%
I may not be right in all cases but I hope you can see that these stock were not adding any value to my portfolio.



















BARCHART MORNING CALL 7/22

OVERNIGHT MARKETS AND NEWS
Sep E-mini S&Ps (ESU14 +0.32%) this morning are up +0.29% on a +1% recovery in the Euro Stoxx 50 index and a +1.8% recovery in Russian stocks. Asian stocks today closed higher across the board: Japan +0.84%, Hong Kong +1.69%, China +1.22%, Taiwan +0.62%, Australia +0.06%, Singapore +0.08%, South Korea +0.52%, India +1.21%, Turkey +0.67%. The dollar index (DXY00 +0.20%) is moderately higher by +0.22%. EUR/USD (^EURUSD) is down -0.30% and USD/JPY (^USDJPY) is up +0.16%. Sep T-note prices (ZNU14 -0.14%) are down -3.5 ticks on reduced safe-haven demand with today's rally in global stocks.
Commodity prices are slightly lower by -0.02% this morning. Sep WTI crude oil (CLU14 +0.26%) is up +0.24% and Sep gasoline (RBU14 +0.76%) is up +0.78%. Aug gold (GCQ14 -0.57%) is down -0.57% and Sep silver (SIU14 -0.68%) is down -0.60% on reduced safe-haven demand, while Sep copper (HGU14 +0.72%) is up +0.41%. Grain prices are higher today after yesterday's losses. Livestock is mixed while softs are mostly lower.
EU foreign ministers will meet today in Brussels and will try to agree on new sanctions for Russia in response to last week's downing of the Malaysian Air passenger plane. France is under pressure to cancel the contract to sell a second helicopter carrier ship to Russia as part of a possible EU arms embargo against Russia. However, the EU may only expand the current 72-person blacklist rather than launch any industry-wide sanctions.
The Russian Micex stock index this morning is up +1.8%, recovering for the first day after six consecutive sessions of losses totaling -7.7%. Russian credit default swap prices today fell -4.5 bp to 215.5 bp but are still up sharply from 166 bp on July 9.
Japan's May all-industry activity index rose by +0.6% m/m, which was in line with market expectations although April was revised lower to -4.6% from -4.3%.
Japan's final-May leading index CI was revised lower by -0.9 points to 104.8 from 105.7. However, the coincident index was revised higher by +0.2 points to 111.3 from 111.1.
Japan's June convenience store sales weakened to -1.9% y/y from -0.8% in May.
UK June public finances (PSNCR) rose to 11.8 billion pounds from a revised 8.4 billion pounds in May. The June public sector net borrowing level fell to 9.5 billion pounds from a revised 11.9 billion pounds in May.
The UK July Business Optimism index fell by -14 points to 19 from 33 in June and was substantially weaker than market expectations for a 3-point decline to 30.
U.S. STOCK PREVIEW
Today’s June CPI report is expected to be unchanged from May on a year-on-year basis at +2.1% y/y, while the core CPI is expected to be unchanged at +2.0% y/y. Today’s June existing home sales report is expected to show a +2.0% increase to 4.99 million, adding to the +4.9% increase to 4.89 million seen in May. Today’s May FHFA house price index is expected to show a small +0.2% m/m increase following April’s report of unchanged. Today’s July Richmond Fed manufacturing index is expected to show a +2 point increase to 5, regaining some ground after the -4 point decline to 3 seen in June.
There are 36 of the S&P 500 companies that report earnings today with notable reports including: Microsoft (consensus $0.60), Apple (1.23), McDonalds (1.44), Coca-Cola (0.63), Comcast (0.72), Verizon (0.90), and Discover Financial Services (1.29). Equity conferences during the remainder of this week include: RSA Asia Pacific & Japan Conference on Mon-Tue, GPO & Institutional Sales Strategy on Tue, and Wells Fargo Small Cell Symposium on Thu.

Sep E-mini S&Ps this morning are up +0.29% on higher global stocks with the Euro Stoxx 50 index up +0.99%, Russian stocks up +1.8%, and a broad rally in Asian stocks. The U.S. stock market on Monday closed mildly lower as the market became more concerned that the U.S. might launch sector-wide sanctions against Russia for the downing of the Malaysian passenger plane last week with a missile launcher provided by Russia. Closes: S&P 500 -0.23%, Dow Jones -0.28%, Nasdaq -0.17%.













OVERNIGHT U.S. STOCK MOVERS
  • There are 17 of the S&P 500 companies that have reported earnings this morning and 12 of those companies beat earnings. Notable companies that beat earnings this morning are: Du Pont (DD -0.02%) (1.17 vs 1.168), Verizon (VZ -0.10%) (0.91 vs 0.90), United Technologies (UTX -0.52%) 1.84 vs 1.70), Comcast (CMCSA -1.32%) (0.75 vs 0.72), Harley-Davidson (HOG -0.33%) (1.62 vs 1.46), Ingersoll-Rand (IR -0.56%) (1.13 vs 1.10), State Street (STT -0.21%) (1.39 vs 1.26), Lockheed Martin (LMT +0.30%) (2.76 vs 2.66), and Coca-Cola (KO -0.07%) (0.64 vs 0.63). Companies with disappointing earnings included Rockwell Collins (COL +0.83%) (1.15 vs 1.17), Kimberly-Clark (KMB -0.87%) (1.49 vs 1.497), Travelers (TRV -0.08%) (1.93 vs 2.07), and Altria (MO -0.38%) (0.65 vs 0.656).
  • Amazon (AMZN +0.31%) is down -1.5% this morning after a downgrade to Neutral from Buy by Citigroup.
  • CIT Group (CIT +0.48%) will acquire OneWest Bank for $3.4 billion in cash and stock.
  • Herbalife (HLF -11.21%) volatility is high ahead of today's presentation by Bill Ackman, again arguing the company is a fraudulent pyramid scheme.
  • Valspar (VAL -0.50%) was upgraded to a Conviction Buy from Neutral by Goldman.
  • Texas Instruments (TXN +0.72%) late yesterday reported Q2 EPS of 62 cents, above the consensus of 59 cents.
  • Netflix (NFLX +1.75%) rallied slightly late yesterday after reporting Q2 EPS of $1.15, close to the consensus.
  • Chipotle (CMG -0.42%) rallied 10% in after-hours trading after its earnings report.
  • Johnson & Johnson (JNJ -0.52%) rallied 1% in after-hours trading yesterday after announcing a $5 billion share repurchase program.
  • Rambus (RMBS +0.73%) fell more than 3% in after-hours trading yesterday after releasing earnings.
  • Crocs (CROX -0.13%) late yesterday reported Q2 EPS of 36 cents, above the consensus of 31 cents.
MARKET COMMENTS
Sep 10-year T-notes this morning are down -3.5 ticks due to reduced safe-haven demand with higher global stocks. Sep 10-year T-note futures prices on Monday closed slightly lower on some long liquidation pressure after last week’s rally. Closes: TYU4 -0.5, FVU4 -3.
The dollar index this morning is moderately higher by +0.18 points (+0.22%), while EUR/USD is down -0.0040 (-0.30%) and USD/JPY is up +0.16 (+0.16%). The dollar index on Monday closed little changed but continued to see some underlying support from the increasing pressure for more sanctions on Russia. EUR/USD saw a little short-covering after posting a new 5-1/4 month low last Friday. Closes: Dollar index +0.04 (+0.04%), EUR/USD unch, USD/JPY +0.06 (+0.06%).
Sep WTI crude oil this morning is up +0.25 (+0.24%) and Sep gasoline is up +0.0223 (+0.78%) with support from the global rally in stocks. Aug crude and gasoline prices on Monday closed higher: CLQ4 +1.46 (+1.42%), RBQ4 +0.0311 (+1.09%). Bullish factors included optimism about crude oil demand after last week’s EIA report showed a sharp increase in the refinery utilization rate to 93.8%, which is +3.1 points above the 5-year seasonal average. Oct Brent crude oil prices closed -0.16% after last Friday’s agreement on extending the Iranian nuclear talks by another four months, which will allow Iran to continue exporting oil at current levels and keeps military action off the table for another four months.
GLOBAL EVENT CALENDAR07/22/2014
US0830 ETJun CPI expected +0.3% m/m and +2.1% y/y, May +0.4% m/m and +2.1% y/y. Jun CPI ex food & energy expected +0.2% m/m and +2.0% y/y, May +0.3% m/m and +2.0% y/y.
0900 ETMay FHFA house price index expected +0.2% m/m, Apr unch m/m.
1000 ETJul Richmond Fed manufacturing index expected +2 to 5, Jun -4 to 3.
1000 ETJun existing home sales expected +2.0% to 4.99 million, May +4.9% to 4.89 million.
1500 ETUSDA Jun Cold Storage.
JPN0030 ETJapan May all-industry activity index expected +0.6% m/m, Apr -4.3% m/m.
0100 ETRevised Japan May leading index CI, previous 105.7. Revised May coincident index, previous 111.1.
UK0430 ETUK Jun public sector net borrowing expected +9,7 billion pounds, May +11.5 billion pounds.
0600 ETUK Jul CBI trends total orders expected -3 to 8, Jun 11. Jul CBI trends selling prices expected +1 to 4, Jun 3.
0600 ETUK Jul CBI business optimism expected -3 to 30, Jun 33.
U.S. STOCK CALENDAR07/22/2014
Company NameTickerTimeEvent DescriptionPeriodEstimate
Mead Johnson Nutrition CoMJN USBef-mktQ2 2014 Earnings ReleaseQ2 20140.892
Lockheed Martin CorpLMT USBef-mktQ2 2014 Earnings ReleaseQ2 20142.658
Coca-Cola Co/TheKO USBef-mktQ2 2014 Earnings ReleaseQ2 20140.633
Travelers Cos Inc/TheTRV USBef-mktQ2 2014 Earnings ReleaseQ2 20142.077
EI du Pont de Nemours & CoDD USBef-mktQ2 2014 Earnings ReleaseQ2 20141.168
United Technologies CorpUTX USBef-mktQ2 2014 Earnings ReleaseQ2 20141.746
Gannett Co IncGCI USBef-mktQ2 2014 Earnings ReleaseQ2 20140.635
Comcast CorpCMCSA USBef-mktQ2 2014 Earnings ReleaseQ2 20140.722
Harley-Davidson IncHOG USBef-mktQ2 2014 Earnings ReleaseQ2 20141.458
State Street CorpSTT USBef-mktQ2 2014 Earnings ReleaseQ2 20141.258
Kimberly-Clark CorpKMB USBef-mktQ2 2014 Earnings ReleaseQ2 20141.497
McDonald's CorpMCD USBef-mktQ2 2014 Earnings ReleaseQ2 20141.438
Verizon Communications IncVZ US6:30Q2 2014 Earnings ReleaseQ2 20140.897
Altria Group IncMO US7:00Q2 2014 Earnings ReleaseQ2 20140.656
Ingersoll-Rand PLCIR US7:00Q2 2014 Earnings ReleaseQ2 20141.094
Verizon Communications IncVZ US7:30Q2 2014 Earnings CallQ2 2014
Rockwell Collins IncCOL US7:30Q3 2014 Earnings ReleaseQ3 20141.173
Omnicom Group IncOMC US8:30Q2 2014 Earnings CallQ2 2014
Allegheny Technologies IncATI US8:30Q2 2014 Earnings CallQ2 2014
Waters CorpWAT US8:30Q2 2014 Earnings CallQ2 2014
Comcast CorpCMCSA US8:30Q2 2014 Earnings CallQ2 2014
Mead Johnson Nutrition CoMJN US9:00Q2 2014 Earnings CallQ2 2014
Altria Group IncMO US9:00Q2 2014 Earnings CallQ2 2014
Travelers Cos Inc/TheTRV US9:00Q2 2014 Earnings CallQ2 2014
EI du Pont de Nemours & CoDD US9:00Q2 2014 Earnings CallQ2 2014
United Technologies CorpUTX US9:00Q2 2014 Earnings CallQ2 2014
Harley-Davidson IncHOG US9:00Q2 2014 Earnings CallQ2 2014
Coca-Cola Co/TheKO US9:30Q2 2014 Earnings CallQ2 2014
State Street CorpSTT US9:30Q2 2014 Earnings CallQ2 2014
Rockwell Collins IncCOL US10:00Q3 2014 Earnings CallQ3 2014
Gannett Co IncGCI US10:00Q2 2014 Earnings CallQ2 2014
Ingersoll-Rand PLCIR US10:00Q2 2014 Earnings CallQ2 2014
Kimberly-Clark CorpKMB US10:00Q2 2014 Earnings CallQ2 2014
Lockheed Martin CorpLMT US11:00Q2 2014 Earnings CallQ2 2014
Regions Financial CorpRF US11:00Q2 2014 Earnings CallQ2 2014
Peabody Energy CorpBTU US11:00Q2 2014 Earnings CallQ2 2014
McDonald's CorpMCD US11:00Q2 2014 Earnings CallQ2 2014
Prologis IncPLD US12:00Q2 2014 Earnings CallQ2 2014
Robert Half International IncRHI US16:00Q2 2014 Earnings ReleaseQ2 20140.521
Total System Services IncTSS US16:00Q2 2014 Earnings ReleaseQ2 20140.446
Intuitive Surgical IncISRG US16:30Q2 2014 Earnings CallQ2 2014
Broadcom CorpBRCM US16:45Q2 2014 Earnings CallQ2 2014
Total System Services IncTSS US17:00Q2 2014 Earnings CallQ2 2014
Electronic Arts IncEA US17:00Q1 2015 Earnings CallQ1 2015
Apple IncAAPL US17:00Q3 2014 Earnings CallQ3 2014
Juniper Networks IncJNPR US17:00Q2 2014 Earnings CallQ2 2014
Xilinx IncXLNX US17:00Q1 2015 Earnings CallQ1 2015
Discover Financial ServicesDFS US17:00Q2 2014 Earnings CallQ2 2014
Broadcom CorpBRCM USAft-mktQ2 2014 Earnings ReleaseQ2 20140.613
ACE LtdACE USAft-mktQ2 2014 Earnings ReleaseQ2 20142.228
Nabors Industries LtdNBR USAft-mktQ2 2014 Earnings ReleaseQ2 20140.231
FMC Technologies IncFTI USAft-mktQ2 2014 Earnings ReleaseQ2 20140.629
Electronic Arts IncEA USAft-mktQ1 2015 Earnings ReleaseQ1 2015-0.036
Apple IncAAPL USAft-mktQ3 2014 Earnings ReleaseQ3 20141.233
Juniper Networks IncJNPR USAft-mktQ2 2014 Earnings ReleaseQ2 20140.378
Microsoft CorpMSFT USAft-mktQ4 2014 Earnings ReleaseQ4 20140.604
Discover Financial ServicesDFS USAft-mktQ2 2014 Earnings ReleaseQ2 20141.293
Linear Technology CorpLLTC USAft-mktQ4 2014 Earnings ReleaseQ4 20140.561
Microsoft CorpMSFT US17:30Q4 2014 Earnings CallQ4 2014
Omnicom Group IncOMC USQ2 2014 Earnings ReleaseQ2 20141.161
Allegheny Technologies IncATI USQ2 2014 Earnings ReleaseQ2 20140.006
Regions Financial CorpRF USQ2 2014 Earnings ReleaseQ2 20140.211
Prologis IncPLD USQ2 2014 Earnings ReleaseQ2 20140.459
Intuitive Surgical IncISRG USQ2 2014 Earnings ReleaseQ2 20142.824
Waters CorpWAT USQ2 2014 Earnings ReleaseQ2 20141.211
Peabody Energy CorpBTU USQ2 2014 Earnings ReleaseQ2 2014-0.289
Xilinx IncXLNX USQ1 2015 Earnings ReleaseQ1 20150.612