Barchart Morning Call
OVERNIGHT MARKETS AND NEWS

Sep E-mini S&Ps (ESU17 +0.31%) this morning are up +0.27% and European stocks are up +0.92%. Gains in French stocks are leading European bourses higher after Sunday's second-round of French elections showed French President Macron's party won about 350 seats in France's 577-member National Assembly, the largest majority in 15-years. Jul WTI crude oil (CLN17 +0.47%) is up +0.29% and is giving a boost to energy stocks after data from OPEC showed that compliance with OPEC crude production cuts was 110% in May. Asian stocks settled higher: Japan +0.62%, Hong Kong +1.16%, China +0.68%, Taiwan +0.92%, Australia +0.54%, Singapore +0.49%, South Korea +0.59%, India +0.82%. Japan's Nikkei Stock Index rose to a 1-week high on signs of strength in the Japanese economy after trade data showed Japan May exports rose at the fastest pace in 2-1/3 years and Japan May imports climbed at the fastest pace in 3-years. Hong Kong stocks rallied over 1% before a decision Tuesday on whether MSCI will include China shares in global indexes.

The dollar index (DXY00 -0.04%) is down -0.06%. EUR/USD (^EURUSD) is up +0.10%. USD/JPY (^USDJPY) is up +0.09%.

Sep 10-year T-note prices (ZNU17 +0.01%) are up +3 ticks.

China May new home prices rose in 56 of 70 cities tracked by the government, down from 58 cities that gained in April, due to the government's measures to tighten liquidity and cool the housing market.

The Japan May trade balance unexpectedly fell into deficit by -203.4 billion yen, when expectations were for a 43.3-billion-yen surplus. May exports rose +14.9% y/y, weaker than expectations of +16.0% y/y, but still the largest increase in 2-1/3 years. May imports rose +17.8% y/y, stronger than expectations of +14.5% y/y and the largest increase in 3 years.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) New York Fed President William Dudley (voter) holds a business roundtable discussion with the North Country Chamber of Commerce and North Country Regional Economic Development Council in Plattsburgh, NY, (2) Chicago Fed President Charles Evans (voter) discusses current economic conditions and monetary policy at a Money Marketeers of New York University event, (3) weekly grain export inspections, (4) USDA crop conditions and planting progress.

Notable Russell 2000 earnings reports today include: none.

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

Equity conferences this week: BIO International Convention on Mon, Goldman Sachs Leveraged Finance Conference on Tue, JMP Group Securities Life Sciences Conference on Tue, Macquarie Group Ltd Global Quantitative Research Conference on Tue, Jefferies Global Consumer Conference on Tue-Wed, Oppenheimer Consumer Conference on Tue-Wed, Tudor Picker & Holt Hotter N Hell Energy Conference on Tue-Thu, Wells Fargo Securities West Coast Energy Conference on Tue-Wed, SunTrust Robinson Utilities & Power Summit on Thu, Wells Fargo Securities 5G Forum on Thu.

 

 

 

OVERNIGHT U.S. STOCK MOVERS

Amazon.com (AMZN +2.44%) gained 1% in pre-market trading after a person familiar with the matter said Amazon plans to cut prices and jobs at Whole Foods Market to make the store competitive with Wal-Mart Stores.

Broadcom Ltd (AVGO -0.73%) fell 3% in pre-market trading after Nikkan Kogyo reported that Toshiba is in the final stages of selecting a rival bid of Broadcom’s for the sale of its semiconductor division.

Costco Wholesale (COST -7.19%) was downgraded to 'Neutral' from 'Buy' at Deutsche Bank.

Biogen (BIIB -1.29%) was upgraded to 'Neutral' from 'Sell' at UBS with a price target of $270.

Nucor (NUE +0.59%) was upgraded to 'Buy' from 'Neutral' at Longbow Research with a 12-month target price of $66.

U.S. Steel (X -1.03%) was upgraded to 'Buy' from 'Neutral' at Longbow Research with a 12-month target price of $30.

Kroger (KR -9.24%) was downgraded to 'Equal-Weight' from 'Overweight' at Morgan Stanley.

Travelers (TRV +0.33%) was downgraded to 'Neutral' from 'Buy' at Bank of America/Merrill Lynch.

Cisco's (CSCO +0.16%) senior vice president and chief of operations, Rebecca Jacoby, sold 92,840 shares of the company's stock at an average price of $31.71 on June 14.

Huntington Ingalls (HII -4.90%) received a $3.01 billion modification from the U.S. Department of Defense to a previously awarded contract for the procurement of the detail, design, and construction of Landing Helicopter Assault Replacement Flight 1 Amphibious Assault Ship (LHA-8).

Six Flags Entertainment (SIX -0.20%) filed an 8.5 million share shelf for holder H Partners Management LLC.

Bandera Partners boosted its stake in Famous Dave's of America (DAVE -1.41%) to 15.6% from 12% reported in March.

MARKET COMMENTS

Sep E-mini S&Ps (ESU17 +0.31%) this morning are up +6.50 points (+0.27%). Friday's closes: S&P 500 +0.03%, Dow Jones +0.11%, Nasdaq -0.34%. The S&P 500 on Friday closed slightly higher. Stocks prices were boosted by strength in energy stocks as crude oil rallied +0.63% and by reduced inflation expectations that may keep the Fed from additional rate hikes after the 10-year T-note breakeven inflation rate dropped to a 7-1/2 month low. Stocks were undercut by the unexpected -5.5% fall in U.S. May housing starts to an 8-month low of 1.092 million (weaker than expectations of +4.1% to 1.22 million) and by a sell-off in food retailers after Amazon.com bought Whole Foods Markets for $13.7 billion, which raises concern that other food retailers will have to cut prices to compete with Amazon, which will hurt their earnings.

Sep 10-year T-notes (ZNU17 +0.01%) this morning are up +3 ticks. Friday's closes: TYU7 +3.50, FVU7 +3.50. Sep 10-year T-notes on Friday closed higher: T-note prices were boosted by the unexpected decline in U.S. May housing starts to an 8-month low and the fall in May building permits to a 13-month low. T-note prices were also boosted by the larger-than-expected decline in the June University of Michigan U.S. consumer sentiment index to a 7-month low and by reduced inflation expectations after the 10-year T-note breakeven inflation rate dropped to a 7-1/2 month low.

The dollar index (DXY00 -0.04%) this morning is down -0.061 (-0.06%). EUR/USD (^EURUSD) is up +0.11 (+0.10%) and USD/JPY (^USDJPY) is up +0.10 (+0.09%). Friday's closes: Dollar index -0.29 (-0.30%), EUR/USD +0.0053 (+0.48%), USD/JPY -0.05 (-0.05%). The dollar index on Friday closed lower on the weaker-than-expected U.S. May housing starts and building permits, which bolsters the case for the Fed to refrain from further tightening, and the slide in stocks, which boosted the safe-haven demand for the yen.

Jul WTI crude oil prices (CLN17 +0.47%) this morning are up +13 cents (+0.29%) and July gasoline (RBN17 +0.69%) is +0.0047 (+0.32%). Friday's closes: Jul crude +0.28 (+0.63%), Jul gasoline +0.0191 (+1.33%). Jul crude oil and gasoline on Friday closed higher on a weaker dollar and on the increase in the crack spread to a 4-session high, which may boost refinery demand for crude oil to refine into gasoline.

GLOBAL EVENT CALENDAR06/19/2017
Monday, June 19
US 0800 ET New York Fed President William Dudley (voter) holds a business roundtable discussion with the North Country Chamber of Commerce and North Country Regional Economic Development Council in Plattsburgh, NY.
1100 ET USDA weekly grain export inspections.
1600 ET USDA crop conditions and planting progress.
1900 ET Chicago Fed President Charles Evans (voter) discusses current economic conditions and monetary policy at a Money Marketeers of New York University event.
Tuesday, June 20
US 0315 ET Fed Vice Chair Stanley Fischer is keynote speaker at a macroprudential conference in Amsterdam jointly hosted by the Dutch and Swedish central banks.
0745 ET Boston Fed President Eric Rosengren (non-voter) speaks at a macroprudential conference in Amsterdam jointly hosted by the Dutch and Swedish central banks.
0830 ET Q1 current account balance expected -$123.6 billion, Q4 -$112.4 billion
1500 ET Dallas Fed President Robert Kaplan (voter) discusses current economic conditions and monetary policy with the Commonwealth Club in San Francisco.
U.S. STOCK CALENDAR06/19/2017
CompanyTickerTimeEvent DescriptionPeriodEstimate
United Technologies Corp UTX US 6/19/2017 02:30 SM
Monster Beverage Corp MNST US 6/19/2017 17:20 SM