Thursday, September 18, 2014

BURLINGTON STORES - BARCHART'S CHART OF THE DAY

Burlington Stores (BURL) is the Barchart Chart of the Day.  The retail department store stock has a Trend Spotter buy signal, a Weighted Alpha of 67.43+ and gained 61.76% in the last year.

The Chart of the Day belongs to Burlington Stores (BURL).  I found the stock by sorting the All Time High list for the highest technical buy signals then used the Flipchart feature to review the charts.  Since the Trend spotter signaled a buy on 7/17 the stock gained 29.10%.

BURL operates as an off-price apparel and home product retailer. It provides its customers with a selection of fashionable branded product in women's ready-to-wear apparel, menswear, youth apparel, baby products, footwear, accessories, home goods and coats. The Company operates within the United States and Puerto Rico.


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 this report

Barchart technical indicators:

  • 100% Barchart technical buy signals
  • Trend Spotter buy signal
  • Above its 20, 50 and 100 day moving averages
  • 10 new highs and up 18.06% in the last month
  • Relative Strength Index 78.57%
  • Barchart computes a technical support level at 37.76
  • Recently traded at 40.46 with a 50 day moving average of 34.14
Fundamental factors:
  • Market Cap $3.00 billion
  • P/E 31.65
  • Revenue expected to grow 7.00% this year and another 7.00% next year
  • Earnings estimated to increase 69.50% this year, an additional 30.40% next year and continue to increase at an annual rate of 33.67% for the next 6 years
  • Wall Street analysts issued 3 strong buy, 6 buy and 1 hold recommendation on the stock.
The 50-100 day MACD oscillator has been the best technical indicator to signal entry and exit points on this stock.

5 Great Large Caps

I wanted to find which Large Cap stocks had the best technical buy signals and charts.  I used Barchart to sort the stocks in the S&P 500 Large Cap index first for technical buy signals, then I used the Flipchart feature to gauge current momentum.

The stocks in today's list are Zoetis (ZTS), United States Steel (X), Whirlpool (WHR), Wells Fargo (WFC) and VF Corp (VFC):

Zoetis (ZTS)


Barchart technical indicators:
  • 100% Barchart technical buy signals
  • Trend Spotter buy signal
  • Above ts 20, 50 and 100 day moving averages
  • 10 new highs and up 9.02% in the last month
  • Relative Strength Index 81.08%
  • Bachart computes a technical support level at 36.22
  • Recently traded at 36.83 with a 50 day moving average of 34.05


Barchart technical indicators:
  • 100% Barchart technical buy signals
  • Trend Spotter buy signal
  • Above its 20, 50 an d100 day moving averages
  • 7 new highs and up 20.35% in the last month
  • Relative Strength Index 78.18%
  • Barchart computes a technical support level at 43.65
  • Recently traded at 45.53 with a 50 day moving average of 34.84
Whirpool (WHR)


Barchart technical indicators:
  • 100% Barchart technical buy signals
  • Trend Spotter buy signal
  • Above its 20, 50 an d100 day moving averages
  • 4 new highs and up 3.16% in the last month
  • Relative Strength Index 61.68%
  • Barchart computes a technical support level at 151.88
  • Recently traded at 154.88 with a 50 day moving average of 148.00
Well Fargo (WFC)


Barchart technical indicators:
  • 100% Barchart technical buy signals
  • Trend Spotter buy signal
  • Above its 20, 50 and 100 day moving averages
  • 10 new highs and up 4.40% in the last month
  • Relative Strength Index 71.38%
  • Barchart computes a technical support level at 51.83
  • Recently traded at 53.14 with a 50 day moving average of 51.18
VF Corp (VFC)


Barchart technical indicators:
  • 100% Barchart technical buy signals
  • Trend Spotter buy signal
  • Above its 20, 50 and 100 day moving averages
  • 14 new highs and up 6.88% in the last month
  • Relative Strength Index 71.90%
  • Barchart computes a technical support level at 65.18
  • Recently traded at 66.65 with a 50 day moving average of 63.11
Disclosure:  I am a former officer of Wells Fargo Securities and have family members who are employees of, have stock option in and own stock of Wells Fargo (WFC)










BARCHART MORNING CALL 9/18

BARCHART MORNING CALL

OVERNIGHT MARKETS AND NEWS
December E-mini S&Ps (ESZ14 +0.41%) this morning are up +0.40% and European stocks are up +0.77% on positive carry-over from yesterday's FOMC meeting where policy makes kept their pledge to keep interest rates near zero for a "considerable period" after completing asset purchases. Asian stocks closed mostly higher: Japan +1.13%, Hong Kong -0.85%, China +0.31%, Taiwan +0.46%, Australia +0.16%, Singapore +0.02%, South Korea -0.87%, India +1.81%. Japan's Nikkei Stock Index climbed to an 8-1/4 month high after Japan's trade balance unexpectedly shrunk last month and after exporters rallied when they yen plunged to a 6-year low against the dollar. Commodity prices are mostly lower on dollar strength. Oct crude oil (CLV14 +0.08%) is down -0.14%. Oct gasoline (RBV14 +0.19%) is up +0.04%. Dec gold (GCZ14 -1.05%) is down -0.93% at an 8-1/4 month low on fund selling after the FOMC yesterday increased its estimates for interest rates. Liquidation by funds cut long gold positions in ETF's to 1,706 MT today, the lowest in 4-3/4 years. Dec copper (HGZ14 -0.67%) is down -0.29% on Chinese demand concerns after China's new-home prices fell last month. Agriculture and livestock prices are mostly lower. The dollar index (DXY00 +0.20%) is up +0.22%. EUR/USD (^EURUSD) is up +0.12%. USD/JPY (^USDJPY) is up +0.28% at a fresh 6-year high. Dec T-note prices (ZNZ14 -0.21%) are down -8.5 ticks at a 1-1/2 month low.
China Aug new-home prices fell from a month earlier in 68 of 70 cities tracked by the National Bureau of Statistics, the most since Jan 2011 when the government changed the way it compiles the data.
The Japan Aug trade balance unexpectedly shrank to a deficit of -948.5 billion yen, better than expectations of an increase in the deficit to -1.028 trillion yen, Aug exports fell -1.3% y/y, better than expectations of -2.6% y/y. Aug imports fell -1.5% y/y, a bigger decline than expectations of -1.2% y/y.
UK Sep CBI trends total orders fell -15 to -4, a bigger decline than expectations of -2 to 9 and the lowest in a year. The Sep CBI trends selling prices unexpectedly rose +2 to 1, higher than expectations of unch at -1.
UK Aug retail sales ex autos rose +0.2% m/m and +4.5% y/y, less than expectations of +0.3% m/m and +4.8% y/y. Aug retail sales including autos rose +0.4% m/m and +3.9% y/y, slightly less than expectations of +0.4% m/m and +4.0% y/y.
U.S. STOCK PREVIEW
The market is looking for today’s weekly initial unemployment claims report to show a -10,000 decline to 305,000, reversing nearly all of last week’s rise of +11,000 to 315,000. Meanwhile, the market is expecting today’s continuing claims report to show a -21,000 decline to 2.466 million, more than reversing last week’s increase of +9,000 to 2.487 million. The market is expecting today’s Aug housing starts report to show a decline of -5.2% to 1.037 million, giving back about one-third of July’s surge of +15.7% to 1.093 million. The market is expecting today’s Sep Philadelphia Fed manufacturing index to show a decline of -5.0 to 23.0, more than reversing the +4.1 point increase to 28.0 seen in August. There are 6 earnings reports today from the Russell 1000 companies: IHS (consensus $1.44), Rite Aid (0.06), ConAgra Foods (0.35), Oracle (0.64), Red Hat (0.38), TIBCO Software (0.18).
Equity conferences this week include: Credit Suisse Basic Materials Conference on Tue-Thu, Wolfe Research Power & Gas Leaders Conference on Wed-Thu, Morningstar Management Behind the Moat Conference on Wed-Thu, UBS Houston Energy Bus-less Tour on Wed-Thu, Credit Suisse Chemical & Ag Science Conference on Thu, Imperial Capital Global Opportunities Conference on Thu, MKM Partners Entertainment, Leisure & Internet Conference on Thu, 5th Annual Summit Internal Audit on Thu-Fri, GTC 7th CNS Partnering & Deal-Making on Thu-Fri, Imperial Capital Global Opportunities Conference on Thu, Tokyo Game Show 2014 on Fri, and Zelman & Associates Housing Summit on Fri.
OVERNIGHT U.S. STOCK MOVERS
Kohl's (KSS +0.67%) was upgraded to 'Buy' from 'Neutral' at Citigroup.
Rite Aid (RAD +3.59%) reported Q2 EPS of 13 cents, more than double consensus of 6 cents, but then lowered guidance on fiscal 2015 EPS view to 22 cents-33 cents, weaker than consensus of 34 cents.
DuPont (DD +5.20%) was upgraded to 'Overweight' from 'Neutral' at JPMorgan Chase.
ArcelorMittal (MT +2.14%) was upgraded to 'Buy' from 'Neutral' at BofA/Merrill Lynch.
Citigroup keeps its 'Buy' rating on FedEx (FDX +3.27%) and raises its price target on the stock to $180 from $170.
Monsanto (MON -0.20%) was upgraded to 'Buy' from 'Hold' at Stifel.
Peabody (BTU -1.94%) was downgraded to 'Sell' from 'Neutral' at Goldman Sachs.
IHS Inc. (IHS -0.56%) reported Q3 adjusted EPS of $1.49, stronger than consensus of $1.44.
Clarcor (CLC -0.22%) reported Q3 adjusted EPS of 83 cents, better than consensus of 78 cents, and then raised guidance on fiscal 2014 adjusted EPS to $2.92-$2.98, well above consensus of $2.82.
Credit Suisse initiated InterOil (IOC -0.96%) with an 'Outperform' and a $71 price target.
Pier 1 Imports (PIR +0.91%) slid over 9% in after-hours trading after it reported Q2 EPS of 10 cents, weaker than consensus of 14 cents.
United Natural Foods (UNFI +0.68%) rose 3% in after-hours trading after it reported Q4 EPS of 67 cents, higher than consensus of 65 cents, and then raised guidance on fiscal 2015 GAAP EPS to $2.88-$3.01, above consensus of $2.88.
Herman Miller (MLHR +1.61%) climbed 2% in after-hours trading after it reported Q1 adjusted EPS of 47 cents, right on consensus, although Q1 revenue of $509.7 million was better than consensus of $505.27 million.
MARKET COMMENTS
Dec E-mini S&Ps (ESZ14 +0.41%) this morning are up +800 points (+0.40%). The S&P 500 index on Wednesday posted a 1-week high and closed higher: S&P 500 +0.13%, Dow Jones +0.15%, Nasdaq +0.15%. Bullish factors included (1) benign inflation pressures after Aug CPI unexpectedly fell -0.2% m/m, weaker than expectations of unch m/m and the first decline in 16 months, and (2) reduced interest rate concerns after the Fed retained its “considerable time” interest rate guidance.
Dec 10-year T-notes (ZNZ14 -0.21%) this morning are down -8.5 ticks at a 1-1/2 month low. Dec 10-year T-note futures prices on Wednesday closed lower. Bearish factors included (1) the Fed’s hike in its year-end 2015 fed funds rate forecast to 1.375% from a Jun estimate of 1.125%, and (2) the rise in the Sep NAHB housing market index to the highest level in 8-3/4 years. Closes: TYZ4 -5.50, FVZ4 -5.25.
The dollar index (DXY00 +0.20%) this morning is up +0.188 (+0.22%). EUR/USD (^EURUSD) is up +0.0015 (+0.12%) and USD/JPY (^USDJPY) is up +0.30 (+0.28%) at a fresh 6-year high. The dollar index on Wednesday closed higher. Bullish factors included (1) the Fed’s hike in its year-end 2015 fed funds rate forecast to 1.375% from a Jun estimate of 1.125%, and (2) weakness in the yen as USD/JPY soared to a 6-year high as the Fed raised its interest rate forecast while the market expects the BOJ to keep expanding stimulus. Closes: Dollar index +0.568 (+0.68%), EUR/USD -0.00946 (-0.70%), USD/JPY +1.242 (+1.16%).
Oct WTI crude oil (CLV14 +0.08%) this morning is down -13 cents (-0.14%) and Oct gasoline (RBV14 +0.19%) is up +0.0011 (+0.04%). Oct crude and gasoline prices on Wednesday settled mixed: CLV4 -0.82 (-0.86%), RBV4 +0.0062 (+0.24%). Bearish factors included (1) the unexpected +3.67 million bbl increase in weekly EIA crude inventories vs expectations for a -1.5 million bbl decline, and (2) the +2.6% w/w increase in U.S. crude production in the week ended Sep 12 to 8.838 million bpd, a 28-1/3 year high. Gasoline closed higher after the Fed pledge to keep interest rates low for a “considerable time” after QE3 ends.
GLOBAL EVENT CALENDAR09/18/2014
US0830 ETWeekly initial unemployment claims expected -10,000 to 305,000, previous +11,000 to 315,000. Weekly continuing claims expected -21,000 to 2.466 million, previous +9,000 to 2.487 million.
0830 ETUSDA weekly Export Sales.
0830 ETAug housing starts expected -5.2% to 1.037 million, Jul +15.7% to 1.093 million. Aug building permits expected -1.6% to 1.040 million, Jul +8.6% to 1.057 million.
0845 ETFed Chair Janet Yellen speaks to a conference in Washington D.C. via prerecorded video on The Importance of Asset Building for Low and Middle Income Households
1000 ETSep Philadelphia Fed manufacturing index expected -5.0 to 23.0, Aug +4.1 to 28.0.
1100 ETTreasury announces amount of 2-year T-notes to be auctioned (previous $29 billion), 2-year floating-rate notes (previous $13 billion), 5-year T-notes (previous $35 billion and 7-year T-notes (previous $29 billion) to be auctioned Aug 23-25.
1200 ETQ2 FOF household net worth change, Q1 +$1.49 trillion.
1300 ETTreasury auctions $13 billion of 10-year TIPS.
JPN0200 ETRevised Japan Aug machine tool orders.
UK0430 ETUK Aug retail sales ex autos expected +0.3% m/m and +4.8% y/y, Jul +0.5% m/m and +3.4% y/y. Aug retail sales including autos expected +0.4% m/m and +4.0% y/y, Jul +0.1% m/m and +2.6% y/y.
0600 ETUK Sep CBI trends of total orders expected -2 to 9, Aug 11. Sep CBI trends selling prices expected unch at -1.
U.S. STOCK CALENDAR09/18/2014
Company NameTickerTimeEvent DescriptionPeriodEstimate
IHS IncIHS US6:00Q3 2014 Earnings ReleaseQ3 20141.439
Rite Aid CorpRAD US7:00Q2 2015 Earnings ReleaseQ2 20150.062
ConAgra Foods IncCAG US7:30Q1 2015 Earnings ReleaseQ1 20150.35
IHS IncIHS US8:00Q3 2014 Earnings CallQ3 2014
Rite Aid CorpRAD US8:30Q2 2015 Earnings CallQ2 2015
Prologis IncPLD US9:00Investor Analyst MeetingY 2014
Continental Resources Inc/OKCLR US9:00Investor & Analyst DayY 2014
ConAgra Foods IncCAG US9:30Q1 2015 Earnings CallQ1 2015
NIKE IncNKE US13:00Annual General MeetingY 2014
Citigroup IncC US14:00U.S. Appeals Court Hears Arguments from Citigroup on Argentine Bonds
TIBCO Software IncTIBX US16:30Q3 2014 Earnings CallQ3 2014
Oracle CorpORCL US17:00Q1 2015 Earnings CallQ1 2015
Red Hat IncRHT US17:00Q2 2015 Earnings CallQ2 2015
Oracle CorpORCL USAft-mktQ1 2015 Earnings ReleaseQ1 20150.639
Red Hat IncRHT USAft-mktQ2 2015 Earnings ReleaseQ2 20150.379
TIBCO Software IncTIBX USAft-mktQ3 2014 Earnings ReleaseQ3 20140.176
Equifax IncEFX USInvestor MeetingY 2014
John Wiley & Sons IncJW/A USAnnual General Meeting

Wednesday, September 17, 2014

Abbott Laboratories - Barchart's Chart of the Day

Abbott Laboratories (ABT) is the Barchart Chart of the Day.  The medical preparations stock has a Trend Spotter buy signal, a Weighted Alpha of 23.50+, gained 24.34% in the last year and paid a 2.06% dividend.

The Chart of the Day belongs to Abbott Laboratories (ABT).  I found the stock by sorting the  All Time High list for the highest technical buy signals, then used the Flipchart feature to review the charts.  Since the Trend Spotter signaled a buy on 8/26 the stock gained 1.33%.

Abbott is a global healthcare company devoted to improving life through the development of products and technologies that span the breadth of healthcare. They have a portfolio of leading, science-based offerings in diagnostics, medical devices, nutritionals and branded generic pharmaceuticals.


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 this report

Barchart technical indicators:

  • 100% Barchart technical buy signals
  • Trend Spotter buy signal
  • Above its 20, 50 and 100 day moving averages
  • 7 new highs and up 3.38% in the last month
  • Relative Strength Index 65.35%
  • Barchart computes a technical support level at 42.31
  • Recently traded at 43.39 with a 50 day moving average of 42.34
Fundamental factors:
  • Market Cap $65.15 billion
  • P/E 20.54
  • Dividend yield 2.06%
  • Revenue expected to increase 2.60% this year and another 5.40% next year
  • Earnings estimated to increase 10.90% this year, an additional 10.30% next year and continue to grow at an annual rate of 10.60% for the next 5 years
  • Wall Street analysts issued 5 strong buy, 10 buy, 8 hold, 1 under perform and 1 sell recommendation on the stock.
The 100 day moving average vs price has been a very consistent entry and exit signal on this stock.  Use it in a disciplined manner.

BARCHART MORNING CALL /

OVERNIGHT MARKETS AND NEWS
December E-mini S&Ps (ESZ14 +0.01%) this morning are up +0.04% and European stocks are up +0.63% on signs that China is expanding stimulus to promote economic growth after a government official familiar with the matter said the PBOC is injecting 500 billion yuan ($81 billion) into China's five biggest banks. Another positive for European stocks was the larger-than-expected drop in the UK unemployment rate to a 6-year low of 6.2%. Asian stocks closed mixed: Japan -0.14%, Hong Kong +1.00%, China +0.53%, Taiwan +0.68%, Australia -0.70%, Singapore +0.73%, South Korea +0.98%, India +0.52%. China's Shanghai Stock Index recovered from a 1-1/2 week low and closed higher as bank stocks rallied after an unnamed official said that the PBOC will provide a liquidity infusion and funnel 100 billion yuan into each of China's five biggest banks for a 3-month period. Commodity prices are mixed. Oct crude oil (CLV14 -0.38%) is down -0.08%. Oct gasoline (RBV14 +0.19%) is up +0.30%. Dec gold (GCZ14 +0.06%) is up +0.10%. Dec copper (HGZ14 -0.71%) is down -0.54%. Agriculture and livestock prices are mixed. The dollar index (DXY00 +0.02%) is up +0.02%. EUR/USD (^EURUSD) is down -0.06%. USD/JPY (^USDJPY) is up +0.19%. Dec T-note prices (ZNZ14 +0.06%) are up +4.5 ticks ahead of the outcome of the 2-day FOMC meeting later today.
UK Aug jobless claims fell -37,200, a larger decrease than expectations of -30,000. The Aug claimant count rate fell -0.1 to 2.9%, right on expectations and the lowest in 6 years.
The UK ILO unemployment rate fell -0.2 to 6.2% in the three months through Jul, a bigger decline than expectations of -0.1 to 6.3% and the lowest in 5-3/4 years.
The Eurozone Aug CPI was revised upward to +0.4% y/y from the originally reported +0.3% y/y. The Aug core CPI was left unrevised at +0.9% y/y.
Eurozone Aug new car registrations rose +2.1% y/y, the twelfth consecutive monthly increase.
Eurozone Jul construction output was unch m/m and up +0.4% y/y, an improvement from Jun which was down -0.4% m/m and -1.1% y/y.
U.S. STOCK PREVIEW
The market is expecting today’s Aug CPI to edge lower to +1.9% y/y from +2.0% y/y in July and for the Aug core CPI to be unchanged from July at +1.9% y/y. The market is expecting today’s Sep NAHB housing market index to rise +1 point to 56, adding to the +2 point increase to 55 seen in Aug. The market is expecting today’s Q2 current account deficit to widen to -$114.0 billion from -$111.2 billion in Q1. The market is unanimously expecting the FOMC after its 2-day meeting that concludes today to announce another $10 billion cut in QE3 to $15 billion. Fed Chair Yellen will hold a press conference today after the FOMC meeting and the FOMC will release updated forecasts. The market is expecting today’s Aug CPI to edge lower to +1.9% y/y from +2.0% y/y in July and for the Aug core CPI to be unchanged from July at +1.9% y/y. There are 3 earnings reports today from the Russell 1000 companies: General Mills (consensus $0.69), Lennar (0.67), and FedEx (1.96).
Equity conferences this week include: Bank of America Merrill Lynch Media, Communications & Entertainment Conference on Tue-Wed, Bank of America Merrill Lynch Power & Gas Leaders Conference on Tue-Wed, Deutsche Bank Access Energy Conference on Tue-Wed, Credit Suisse Basic Materials Conference on Tue-Thu, Bank of America Merrill Lynch Global Healthcare Conference on Wed, Capital Link Global Commodities Energy & Freight Forum on Wed, Wolfe Research Power & Gas Leaders Conference on Wed-Thu, Morningstar Management Behind the Moat Conference on Wed-Thu, UBS Houston Energy Bus-less Tour on Wed-Thu, Credit Suisse Chemical & Ag Science Conference on Thu, Imperial Capital Global Opportunities Conference on Thu, MKM Partners Entertainment, Leisure & Internet Conference on Thu, 5th Annual Summit Internal Audit on Thu-Fri, GTC 7th CNS Partnering & Deal-Making on Thu-Fri, Imperial Capital Global Opportunities Conference on Thu, Tokyo Game Show 2014 on Fri, and Zelman & Associates Housing Summit on Fri.
OVERNIGHT U.S. STOCK MOVERS
Lennar (LEN -0.25%) reported Q3 EPS of 78 cents, higher than consensus of 67 cents.
AB InBev (BUD +0.01%) was upgraded to 'Hold' from 'Sell' at Societe Generale.
Cigna (CI +1.88%) was upgraded to 'Positive' from 'Neutral' at Susquehanna.
Kellogg (K +0.22%) was downgraded to 'Hold' from 'Buy' at Societe Generale.
DaVita (DVA +0.42%) was downgraded to 'Hold' from 'Buy' at KeyBanc.
BHP Billiton (BHP +1.33%) was downgraded to 'Underperform' from 'Neutral' at Exane BNP Paribas.
General Mills (GIS unch) reported Q1 EPS of 61 cents, less than consensus of 69 cents, and then the stock was downgraded to 'Sell' from 'Hold' at Societe Generale.
Under Armour (UA +0.83%) was upgraded to 'Overweight' from 'Neutral' at Piper Jaffray.
NASA awarded a $6.8 billion contract to Boeing (BA +0.80%) and SpaceX, of which Boeing will receive $4.2 billion, and SpaceX will receive $2.6 billion, for the commercial flight of astronauts to the International Space Station.
L Brands (LB +1.48%) was downgraded to 'Neutral' from 'Overweight' at Piper Jaffray.
Apogee Enterprises (APOG +1.76%) jumped over 5% in after-hours trading after it reported Q2 EPS of 57 cents, well above consensus of 34 cents, and then raised guidance on fiscal 2015 EPS to $1.62-$1.72, higher than consensus of $1.44.
Adobe (ADBE +0.65%) fell 4% in after-hours trading after it reported Q3 adjusted EPS of 28 cents, better than consensus of 26 cents, but Q3 revenue of $1.005 billion was below consensus of $1.02 billion.
MARKET COMMENTS
Dec E-mini S&Ps (ESZ14 +0.01%) this morning are up +0.75 of a point (+0.04%). The S&P 500 index on Tuesday climbed to a 1-week high and closed higher: S&P 500 +0.75%, Dow Jones +0.59%, Nasdaq +0.93%. Bullish factors included (1) reduced interest rate concerns after the WSJ reported that the FOMC will maintain its “considerable time” language in Wednesday’s post-meeting statement, (2) optimism that additional stimulus measures by China will boost its economic growth prospects after the PBOC started a 500 billion yuan ($81 billion) standing lending-facility to China’s five biggest banks, and (3) a rally in energy stocks after crude oil prices climbed by more than $1.00 per barrel to a 1-week high.
Dec 10-year T-notes (ZNZ14 +0.06%) this morning are up +4.5 ticks. Dec 10-year T-note futures prices on Tuesday closed higher. Bullish factors included (1) carry-over support from a rally in German bunds after German Sep ZEW investor confidence slipped to a 23-month low, and (2) benign inflation pressures after U.S. Aug PPI final-demand was unch m/m and up +1.8% y/y, right on expectations. Closes: TYZ4 +2.00, FVZ4 +3.75.
The dollar index (DXY00 +0.02%) this morning is up +0.020 (+0.02%). EUR/USD (^EURUSD) is down -0.008 (-0.06%) and USD/JPY (^USDJPY) is up +0.20 (+0.19%). The dollar index on Tuesday fell to a 1-week low and closed lower. The main bearish factor was the report from the WSJ that said the FOMC will maintain its “considerable time” language in its policy statement Wednesday following the conclusion of the 2-day FOMC meeting. Gains in EUR/USD were limited after the German Sep ZEW investor confidence weakened to its lowest level in 23 months. Closes: Dollar index -0.190 (-0.23%), EUR/USD +0.00199 (+0.17%), USD/JPY -0.058 (-0.05%).
Oct WTI crude oil (CLV14 -0.38%) this morning is down -8 cents (-0.08%) and Oct gasoline (RBV14 +0.19%) is up +0.0078 (+0.30%). Oct crude and gasoline prices on Tuesday closed higher with Oct crude at a 1-week high: CLV4 +1.96 (+2.11%), RBV4 +0.0280 (+1.11%). Bullish factors included (1) comments from OPEC Secretary General El-Badri that OPEC may cut its production target by -500,000 bpd to 29.5 million bpd next year, and (2) expectations for Wednesday’s weekly EIA inventory data to show crude supplies fell -1.5 million bbl.
GLOBAL EVENT CALENDAR09/17/2014
US0700 ETWeekly MBA mortgage applications, previous -7.2% with purchase sub-index -2.6% and refi sub-index -10.7%.
0830 ETAug CPI expected unch m/m and +1.9% y/y, Jul +0.1% m/m and +2.0% y/y. Aug CPI ex food & energy expected +0.2% m/m and +1.9% y/y, Jul +0.1% m/m and +1.9% y/y.
0830 ETQ2 current account balance expected -$114.0 billion, Q1 -$111.2 billion.
1000 ETSep NAHB housing market index expected +1 to 56, Aug +2 to 55.
1030 ETEIA Weekly Petroleum Status Report.
1400 ETFOMC 2-day meeting concludes. Fed expected to leave funds rate target unchanged at zero to 0.25%. Fed expected to cut QE3 by $10 billion to $15 billion per month.
n/aG-20 finance ministers and central bankers meet for a 4-day meeting in Cairns, Australia.
UK0430 ETMinutes of the Sep 3-4 BOE meeting.
0430 ETUK Aug jobless claims change expected -30,000, Jul -33,600. Aug claimant count rate expected -0.1 to 2.9%, Jul 3.0%.
0430 ETUK Jul avg weekly earnings expected +0.5% 3-mo avg, Jun -0.2% 3-mo avg. Jul avg weekly earnings ex-bonus expected +0.7% 3-mo avg y/y, Jun +0.6% 3-mo avg y/y.
0430 ETUK Jul ILO unemployment rate expected -0.1 to 6.3% 3-months through Jul, Jun 6.4% 3-months through Jun.
EUR0200 ETEurozone Aug new car registrations.
0500 ETRevised Eurozone Aug CPI, previous +0.3% y/y. Revised Aug core CPI, previous +0.9% y/y.
0500 ETEurozone Jul construction output, Jun -0.7% m/m and -2.3% y/y.
JPN1950 ETJapan Aug trade balance expected -1.028 trillion yen, Jul -962.1 billion yen. Aug exports expected -2.6% y/y, Jul +3.9% y/y. Aug imports expected -1.2% y/y, Jul +2.3% y/y.
CHI2130 ETChina Aug property prices.
U.S. STOCK CALENDAR09/17/2014
Company NameTickerTimeEvent DescriptionPeriodEstimate
American International Group IncAIG US0:30Investor DayY 2014
General Mills IncGIS USBef-mktQ1 2015 Earnings ReleaseQ1 20150.686
Lennar CorpLEN US6:00Q3 2014 Earnings ReleaseQ3 20140.67
FedEx CorpFDX US7:30Q1 2015 Earnings ReleaseQ1 20151.963
American Realty Capital Properties IncARCP US8:00Investor DayY 2014
FedEx CorpFDX US8:30Q1 2015 Earnings CallQ1 2015
General Mills IncGIS US8:30Q1 2015 Earnings CallQ1 2015
VF CorpVFC US9:00Investor DayY 2014
Dunkin' Brands Group IncDNKN US9:00Investor & Analyst DayY 2014
Lennar CorpLEN US11:00Q3 2014 Earnings CallQ3 2014
MDU Resources Group IncMDU US11:00Analyst DayY 2014
MasterCard IncMA US11:00Investment Community MeetingY 2014
Veeva Systems IncVEEV US13:00Analyst DayY 2014
Stryker CorpSYK US14:30Analyst MeetingY 2014
Prudential Financial IncPRU US19:30Investor Day - TokyoY 2014
Eli Lilly & CoLLY USFDA Adcomm, testosterone replacement therapy, cardiovascular safety
Pinnacle West Capital CorpPNW USInvestor Conference - Day 2Y 2014
Endo International PLCENDP USFDA Adcomm, testosterone replacement therapy, cardiovascular safety
AbbVie IncABBV USFDA Adcomm, testosterone replacement therapy, cardiovascular safety

Actavis - Bets Bet in Drug Sector

http://seekingalpha.com/article/2501335-actavis-is-the-best-bet-in-the-drug-sector

Summary

  • Analysts predict aggressive growth in both revenue and earnings.
  • 96% of the analysts following the company rate it Buy or better.
  • Highly rated by both Barchart and Value Line.

Tuesday, September 16, 2014

ADM - Barchart's Chart of the Day

Archer-Daniels-Midland (ADM) is the Barchart Chart of the Day.  The agricultural products company has a Trend Spotter buy signal, a Weighted Alpha of 39.30+, gained 39.62% in the last year and paid a 1.90% dividend.

The Chart of the Day belongs to Archer-Daniel-Midlands (ADM).  I found the stock by sorting the All Time High List for the stocks with the best technical buy signals then used the Flipchart feature to review the charts.  Since the Trend Spotter signaled a buy on 8/5 the stock gained 5.62%.

ADM procures, transports, stores, processes, and merchandises agricultural commodities and products. Its operations are classified into three business segments: Oilseeds Processing, Corn Processing, and Agricultural Services. The Company processes oilseeds, corn, wheat, cocoa, and other agricultural commodities. It manufactures protein meal, vegetable oil, corn sweeteners, flour, biodiesel, ethanol, and other value-added food and feed ingredients.

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 this report


Barchart technical indicators:

  • 100% Barchart technical buy signals
  • Trend Spotter buy signal
  • Above its 20, 50 and 100 day moving averages
  • 7 new highs and up 3.16% in the last month
  • Relative Strength Index 69.68%
  • Barchart computes a technical support level at 50.23
  • Recently traded at 51.26 with a 50 day moving average of 48.89
Fundamental factors:
  • Market Cap $33.55 billion
  • P/E 18.47
  • Dividend yield 1.90%
  • Revenue predicted to decrease 1.60% this year but increase again next year by 1.10%
  • Earnings are estimated to increase by 30.90% this year, an additional 18.00% next year and continue to increase at an annual rate of 4.00% for the next 5 years
  • Wall Street analysts issued 3 strong buy, 5 buy, 5 hold and an under perform report on the stock
The 100 day moving average vs price has been a reliable technical indicator to use for entry and exit points on this stock.


5 Great NASDAQ 100 Stocks

I wanted to see how the NASDAQ 100 stocks were doing so I used Barchart to sort the NASDAQ 100 Index stocks for the 5 that had the highest technical buy signals then used the Flipchart feature to review the stocks.

Today's list includes Comcast (CMCSA), Microsoft (MSFT), Netapp (NTAP), Costco Wholesale (COST) and Directv (DTV):

Comcast (CMCSA)


Barchart technical indicators:
  • 96% Barchart technical buy signals
  • Trend Spotter buy signal
  • Above its 20, 50 and 100 day moving averages
  • 9 new highs and up 4.10% in the last month
  • Relative Strength Index 72.01
  • Barchart computes a technical support level at 56.52
  • Recently traded at 56.99 with a 50 day moving average of 54.71
Microsoft (MSFT)


Barchart technical indicators:
  • 96% Barchart technical buy signals
  • Trend Spotter buy signal
  • Above its 20, 50 and 100 day moving averages
  • 9 new highs and up 3.91% in the last month
  • Relative Strength Index 64.91%
  • Barchart computes a technical support level at 45.74
  • Recently traded at 46.59 with a 50 day moving average of 44.41
Netapp (NTAP)


Barchart technical indicators:
  • 96% Barchart technical buy signals
  • Trend Spotter buy signal
  • Above its 20, 50 and 100 day moving averages
  • 10 new highs and up 3.48% in the last month
  • Relative Strength Index 76.12%
  • Barchart computes a technical support level at 42.22
  • Recently traded at 42.85 with a 50 day moving average of 39.72


Barchart technical indicators:
  • 96% Barchart technical buy signals
  • Trend Spotter buy signal
  • Above its 20, 50 and 100 day moving averages
  • 8 new highs and up 6.64% in the last month
  • Relative Strength Index 71.37%
  • Barchart computes a technical support level at 124.82
  • Recently traded at 126.37 with a 50 day moving average of 120.22
Directv (DTV)


Barchart technical indicators:
  • 80% Barchart technical buy signals
  • Trend Spotter buy signal
  • Above its 20, 50 and 100 day moving averages
  • 10 new highs and up 3.30% in the last month
  • Relative Strength Index 62.39%
  • Barchart computes a technical support level at 86.40
  • Recently traded at 87.00 with a 50 day moving average of 85.85










BARCHART MORNING CALL 9/16

OVERNIGHT MARKETS AND NEWS
December E-mini S&Ps (ESZ14 -0.09%) this morning are down -0.14% and European stocks are down -0.39% as the FOMC starts a 2-day policy meeting. European stocks were also undercut after German investor confidence fell for a ninth consecutive month to a 23-month low. The ruble fell to a record low for a fourth day as it dropped to an all-time low of 38.88 per dollar as additional sanctions and closed access to foreign-exchange liquidity pummels Russia's currency. Asian stocks closed mostly lower: Japan -0.23%, Hong Kong -0.91%, China -1.99%, Taiwan -0.91%, Australia -0.51%, Singapore -1.20%, South Korea +0.34%, India -1.21%. China's Shanghai Stock Index dropped to a 1-week low after China Aug foreign direct investment unexpectedly declined for a second month. Commodity prices are mixed. Oct crude oil (CLV14 -0.36%) is down -0.24%. Oct gasoline (RBV14 +0.06%) is up +0.18%. Dec gold (GCZ14 +0.34%) is up +0.42%. Dec copper (HGZ14 +0.70%) is up +0.53%. Agriculture and livestock prices are mixed. The dollar index (DXY00 -0.03%) is down -0.02%. EUR/USD (^EURUSD) is up +0.01%. USD/JPY (^USDJPY) is down -0.06%. Dec T-note prices (ZNZ14 +0.15%) are up +6.5 ticks.
The German Sep ZEW survey of economic growth expectations fell -1.7 to 6.9, a smaller decline than expectations of -3.6 to 5.0, but still the lowest in 23 months. The Sep ZEW survey current situation tumbled -18.9 to 25.4, a much bigger decline than expectations of -4.3 to 40.0 and the lowest in 13 months.
China Aug foreign direct investment unexpectedly fell for a second month as it plunged -14.0% y/y, much weaker than expectations of +0.8% y/y.
UK Aug CPI rose +0.4% m/m and +1.5% y/y, right on expectations, while Aug core CPI rose +1.9% y/y, more than expectations of +1.8% y/y.
UK Jul ONS house prices rose +11.7% y/y, a larger increase than the +10.2% y/y gain in Jun and the most in 7 years.
U.S. STOCK PREVIEW
Today’s Aug final-demand PPI index is expected to edge higher to +1.8% y/y from +1.7% in July. Meanwhile, the Aug core final-demand PPI is expected to rise to +1.8% y/y from +1.6% in July. The market is unanimously expecting the FOMC after its 2-day meeting that begins today to announce another $10 billion cut in QE3 to $15 billion. Fed Chair Yellen will hold a press conference on Wednesday after the FOMC meeting and the FOMC will release updated forecasts. There are two earnings reports today from the Russell 1000 companies: FactSet (consensus $1.31), Adobe Systems (0.26).
Equity conferences this week include: Citi Investment Research Investor Meetings on Mon, Morgan Stanley Industrials Conference on Mon-Tue, Bank of America Merrill Lynch Global Consumer & Retail Conference on Tue, J.P. Morgan U.S. All Stars Conference on Tue, J.P. Morgan U.S. All Stars Conference on Tue, Morgan Stanley Marcellus-Utica Summit on Tue, RBC Capital Markets Financial Institutions Conference on Tue, Bank of America Merrill Lynch Media, Communications & Entertainment Conference on Tue-Wed, Bank of America Merrill Lynch Power & Gas Leaders Conference on Tue-Wed, Deutsche Bank Access Energy Conference on Tue-Wed, Credit Suisse Basic Materials Conference on Tue-Thu, Bank of America Merrill Lynch Global Healthcare Conference on Wed, Capital Link Global Commodities Energy & Freight Forum on Wed, Wolfe Research Power & Gas Leaders Conference on Wed-Thu, Morningstar Management Behind the Moat Conference on Wed-Thu, UBS Houston Energy Bus-less Tour on Wed-Thu, Credit Suisse Chemical & Ag Science Conference on Thu, Imperial Capital Global Opportunities Conference on Thu, MKM Partners Entertainment, Leisure & Internet Conference on Thu, 5th Annual Summit Internal Audit on Thu-Fri, GTC 7th CNS Partnering & Deal-Making on Thu-Fri, Imperial Capital Global Opportunities Conference on Thu, Tokyo Game Show 2014 on Fri, and Zelman & Associates Housing Summit on Fri.
OVERNIGHT U.S. STOCK MOVERS
Con-way (CNW +0.38%) was downgraded to 'Neutral' from 'Outperform' at RW Baird.
Arch Coal (ACI -3.05%) and Peabody (BTU -2.22%) were both downgraded to 'Reduce' from 'Neutral' at Nomura.
TRW Automotive (TRW -0.78%) was downgraded to 'Neutral' from 'Overweight' at JPMorgan Chase.
AngloGold (AU +1.64%) was upgraded to 'Overweight' from 'Neutral' at HSBC.
Terex (TEX -6.43%) was upgraded to 'Buy' from 'Hold' at Stifel.
Cummins (CMI -0.48%) was downgraded to 'Market Perform' from 'Outperform' at Wells Fargo.
Anglo American (AAUKY +0.84%) was upgraded to 'Buy' from 'Hold' at Deutsche Bank.
Science Application International Corporation (SAIC -0.06%) has been awarded a $423.8 million government bridge contract for maintenance, repair, and operations in New Jersey.
Microsoft (MSFT -0.96%) was upgraded to 'Outperform' from 'Sector Perform' at RBC Capital.
Adobe (ADBE -1.00%) was downgraded to 'Sector Perform' from 'Outperform' at RBC Capital.
Glenview Capital Management reported a 6.15% passive stake in Fossil (FOSL -2.60%) .
MARKET COMMENTS
Dec E-mini S&Ps (ESZ14 -0.09%) this morning are down -2.75 points (-0.14%). The S&P 500 Index on Monday dropped to a 3-week low and closed lower: S&P 500 -0.07%, Dow Jones +0.26%, Nasdaq -0.97%. Bearish factors included (1) the unexpected -0.1% decline in U.S. Aug industrial production, weaker than expectations of +0.3% and the first decline in 7 months, (2) the OECD’s cut its 2014 U.S. GDP forecast to 2.1% from a May estimate of 2.6%, and (3) concern that a slowdown in China’s economy will undercut global economic growth after China Aug industrial production rose by only +6.9% y/y, weaker than expectations of +8.8% y/y and the smallest pace of increase in 5-1/2 years.
Dec 10-year T-notes (ZNZ14 +0.15%) this morning are up +6.5 ticks. Dec 10-year T-note futures prices on Monday recovered from a 1-1/2 month low and closed higher. Bullish factors included (1) the unexpected decline in U.S. Aug industrial production, and (2) increased safe-haven demand for T-notes after the S&P 500 fell to a 3-week low. Closes: TYZ4 +5.50, FVZ4 +4.00.
The dollar index (DXY00 -0.03%) this morning is down -0.020 (-0.02%). EUR/USD (^EURUSD) is up +0.0001 (+0.01%) and USD/JPY (^USDJPY) is down -0.06 (-0.06%). The dollar index on Monday closed little changed. Negative factors for the dollar included (1) the OECD’s cut in its 2014 U.S. GDP forecast to 2.1% from a May estimate of 2.6% and (2) the unexpected decline in U.S. Aug industrial production. Closes: Dollar index +0.024 (+0.03%), EUR/USD -0.00225 (-0.17%), USD/JPY -0.122 (-0.11%).
Oct WTI crude oil (CLV14 -0.36%) this morning is down -22 cents (-0.24%) and Oct gasoline (RBV14 +0.06%) is up +0.0046 (+0.18%). Oct crude and gasoline prices on Monday shook off early losses and closed higher: CLV4 +0.65 (+0.70%), RBV4 +0.00133 (+0.53%). Bullish factors included (1) a weaker dollar, and (2) the larger-than-expected increase in the Sep Empire manufacturing index to the fastest pace of expansion in 4-3/4 years. Crude prices had opened lower with Oct gasoline at a 10-1/4 month low on bearish factors that included (1) Chinese demand concerns after China Aug industrial production rose at the slowest pace in 5-1/2 years, and (2) the unexpected decline in U.S. Aug industrial production.
GLOBAL EVENT CALENDAR09/16/2014
US0830 ETAug PPI final demand expected unch m/m and +1.8% y/y, Jul +0.1% m/m and +1.7% y/y. Aug PPI final demand ex food & energy expected +0.1% m/m and +1.8% y/y, Jul +0.2% m/m and +1.6% y/y.
1030 ETFOMC begins 2-day policy meeting.
UK0430 ETUK Aug CPI expected +0.4% m/m and +1.5% y/y, Jul -0.3% m/m and +1.6% y/y. Aug core CPI expected +1.8% y/y, Jul +1.8% y/y.
0430 ETUK Aug RPI expected +0.4% m/m and +2.4% y/y, Jul -0.1% m/m and +2.5% y/y. Aug RPI ex-mortgage interest payments expected +2.5% y/y, Jul +2.6% y/y
0430 ETUK Aug PPI input prices expected -0.4% m/m and -6.9% y/y, Jul -1.6% m/m and -7.3% y/y. Aug PPI output prices expected -0.1% m/m and -0.3% y/y, Jul -0.1% m/m and -0.1% y/y. Aug PPI output core expected unch m/m and +0.9% y/y, Jul unch m/m and +0.9% y/y
0430 ETUK Jul ONS house prices, Jun +10.2% y/y.
GER0500 ETGerman Sep ZEW survey economic growth expectations expected -3.6 to 5.0, Aug 8.6. Sep ZEW survey current situation expected -4.3 to 40.0, Aug 44.3.
EUR0500 ETEurozone Q2 labor costs, Q1 +0.9% y/y.
U.S. STOCK CALENDAR09/16/2014
Company NameTickerTimeEvent DescriptionPeriodEstimate
FactSet Research Systems IncFDS US7:00Q4 2014 Earnings ReleaseQ4 20141.308
FactSet Research Systems IncFDS US11:00Q4 2014 Earnings CallQ4 2014
Adobe Systems IncADBE US17:00Q3 2014 Earnings CallQ3 2014
Adobe Systems IncADBE USAft-mktQ3 2014 Earnings ReleaseQ3 20140.264
MetLife IncMET US19:30Investor Day - Asia
Varian Medical Systems IncVAR USInvestor MeetingY 2014
Yum! Brands IncYUM USInvestor & Analyst Conference - Day 2Y 2014
LPL Financial Holdings IncLPLA USRoadshow - ChicagoY 2014