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OVERNIGHT MARKETS AND NEWS

Dec E-mini S&Ps (ESZ17 -0.12%) this morning are down -0.09% as a jump in the 10-year T-note yield to a 7-month high of 2.45% spurred liquidation in stocks. U.S. Treasuries fell in overnight trading on technical selling after the 10-year T-note yield broke through widely highlighted support at 2.42%. European stocks are up +0.20% on increased optimism in the economic outlook after the German Oct IFO business climate unexpectedly rose to a record high. Gains in European stocks were limited ahead of Thursday's ECB meeting where the ECB is expected to announce that it will reduce its QE program. Asian stocks settled mostly higher: Japan -0.45%, Hong Kong +0.53%, China +0.26%, Taiwan +0.06%, Australia +0.14%, Singapore +0.28%, South Korea +0.11%, India +1.33%. Japan's Nikkei Stock Index posted a new 21-year high as exporters rallied on yen weakness after USD/JPY climbed to a 3-1/2 month high. However, long liquidation pressures set in and the index gave up its advance and closed lower for the first time in the last 17 sessions. China's Shanghai Composite climbed to a 1-week high, while India's S&P BSE Stock Index jumped +1.33% to a record high after Prime Minister Modi's government said it will inject 2.11 trillion rupees ($32 billion) into Indian banks over the next 2-years in an attempt to revice growth.

The dollar index (DXY00 +0.08%) is up +0.04%. EUR/USD (^EURUSD) is up +0.13%. USD/JPY (^USDJPY) is up +0.20% at a 3-1/2 month high.

Dec 10-year T-note prices (ZNZ17 -0.26%) are down -9.5 ticks at a 7-month nearest-futures low.

UK Q3 GDP rose +0.4% q/q, stronger than expectations of +0.3% q/q.

The German Oct IFO business climate unexpectedly rose +1.4 to 116.7, stronger than expectations of -0.1 to 115.1 and the hihgest since the data series began in 1991.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly MBA mortgage applications (previous +3.6% with purchase sub-index +4.2% and refi sub-index +3.0%), (2) Sep durable goods orders (expected +1.0% and +0.5% ex transportation, Aug +2.0% and +0.5% ex transportation), (3) Aug FHFA house price index (expected +0.4%, Jul +0.2% m/m), (4) Sep new home sales (expected -1.1% to 554,000, Aug -3.4% to 560,000), (5) Treasury auctions $15 billion of 2-year floating-rate notes and $34 billion of 5-year T-notes, (6) EIA weekly Petroleum Status Report.

Notable S&P 500 earnings reports today include: Visa (consensus $0.85), Boeing (2.65), Walgreens (1.21), Baxter (0.59), Coca-Cola (0.49).

U.S. IPO's scheduled to price today: ForeScout Technologies (FSCT), Merchants Bancorp (MBIN), Nexa Resources (NEXA).

Equity conferences this week: European AIDS Conference on Wed, Yahoo Finance All Markets Summit on Wed, European Committee for Treatment and Research in Multiple Sclerosis on Thu, Society of Women Engineers National Conference on Fri.

OVERNIGHT U.S. STOCK MOVERS

KB Home (KBH +2.45%) was initiated with a 'Sell' rating at UBS with a 12-month target price of $24.

Visa (V +0.82%) rose almost 1% in pre-market trading after it reported Q4 operating revenue of $4.90 billion, above consensus of $4.63 billion.

Ameriprise Financial (AMP -0.14%) gained over 1% in after-hours trading after it reported Q3 operating EPS of $3.53, well above consensus of $2.80.

Capital One Financial (COF -0.22%) climbed nearly 3% in after-hours trading after it reported Q3 adjusted EPS of $2.42, well above consensus of $2.15.

Edward Lifesciences (EW +0.12%) dropped nearly 6% in after-hours trading after it reported Q3 adjusted EPS of 84 cents, below consensus of 86 cents, and then said it sees Q4 adjusted EPS of 84 cents-94 cents, the mid-point below consensus of 91 cents.

iRobot (IRBT +0.57%) climbed almost 6% in after-hours trading after it reported Q3 EPS of 76 cents, well above consensus of 46 cents, and then said it sees full-year EPS of $1.65 to $2.00, the mid-point well above consensus of $1.68.

Akamai Technologies (AKAM +0.87%) jumped 10% in after-hours trading after it reported Q3 revenue of $621.4 million, above consensus of $610.7 million.

Illumina (ILMN -0.35%) gained 2% in after-hours trading after it reported Q3 adjusted EPS of $1.11, better than expectations of 99 cents, and then said it sees full-year adjusted EPS of $3.73 to $3.78, higher than consensus of $3.65.

Acadia Healthcare (ACHC -1.28%) sank 18% in after-hours trading after it reported Q3 adjusted EP from continuing operations of 58 cents, weaker than consensus of 65 cents, and then lowered guidance on full-year adjusted EPS to $2.23 to $2.25 from a prior view of $2.42 to $2.47, below consensus of $2.44.

Chipotle Mexican Grill (CMG +1.20%) tumbled 10% in after-hours trading after it reported Q3 EPS of $1.33, well below consensus of $1.63 and said it sees full-year comparable sales up +6.5%, lower than consensus of +7.2%.

Total System Services (TSS +0.04%) rose almost 3% in after-hours trading after it reported Q3 adjusted EPS of 88 cents, better than consensus of 80 cents, and then said it sees full-year adjusted PS from continuing operations of $3.29 to $3.35, above consensus of $3.28.

Shutterfly (SFLY -0.85%) slid almost 4% in after-hours trading after it said it sees Q4 revenue of $538 million to $568 million, the mid-point below consensus of $565.4 million.

Juniper Networks (JNPR +1.55%) dropped over 6% in after-hours trading after it said it sees Q4 adjusted EPS about 52 cents, plus or minus 3 cents, weaker than consensus of 61 cents.

Express Scripts Holdings (ESRX +0.34%) fell over 1% in after-hours trading after it reported Q3 revenue of $24.68 billion, less than consensus of $25.64 billion.

AT&T (T -1.11%) lost over 1% in after-hours trading after it reported Q3 revenue of $39.7 billion, below consensus of $40.08 billion.

MARKET COMMENTS

Dec S&P 500 E-mini stock futures (ESZ17 -0.12%) this morning are down -2.25 points (-0.09%). Tuesday's closes: S&P 500 +0.16%, Dow Jones +0.72%, Nasdaq +0.20%. The S&P 500 on Tuesday closed higher on signs of strength in global manufacturing activity after the Eurozone Oct Markit manufacturing PMI unexpectedly rose +0.5 to 58.6 and afer the U.S. Oct Markit manufacturing PMI rose by +1.4 points to a 9-month high of 54.5. Stocks were also supported by upbeat quarterly earnings reports from Caterpillar, 3M and General Motors. There was also strength in energy stocks after crude oil prices rose +1.10%.

Dec 10-year T-note prices (ZNZ17 -0.26%) this morning are down -9.5 ticks at a 7-month nearest-futures low. Tuesday's closes: TYZ7 -6.00, FVZ7 -2.75. Dec 10-year T-notes on Tuesday fell to a 6-1/4 month nearest-futures low and closed lower on negative carry-over from a slide in German bund prices to a 2-week low ahead of Thursday's ECB QE tapering announcement. T-notes were also undercut by the climb in the U.S. Oct Markit manufacturing PMI to a 9-month high.

The dollar index (DXY00 +0.08%) this morning is up +0.037 (+0.04%). EUR/USD (^EURUSD) is up +0.0015 (+0.13%) and USD/JPY (^USDJPY) is up +0.23 (+0.20%) at a 3-1/2 month high. Tuesday's closes: Dollar Index +0.011 (+0.01%), EUR/USD +0.0012 (+0.10%), USD/JPY +0.47 (+0.41%). The dollar index on Tuesday closed little changed. The dollar was undercut by concern that the ongoing feud between President Trump and Republican Senator Corker will complicate Republican plans for a U.S. tax overhaul and by strength in EUR/USD on expectations the ECB at Thursday's policy meeting will announce steps to begin tapering QE. A bullish factor was the jump in the 10-year T-note yield to a 6-3/4 month high of 2.426%, which boosted the dollar's interest rate differentials.

Dec crude oil (CLZ17 -0.30%) this morning is down -12 cents (-0.23%) and Dec gasoline (RBZ17 +0.26%) is +0.0061 (+0.36%). Tuesday's closes: Dec WTI crude +0.57 (+1.10%), Dec gasoline +0.0344 (+2.10%). Dec crude oil and gasoline on Tuesday closed higher on signs of global economic strength that are supportive for crude demand after the U.S. Oct Markit manufacturing PMI rose +1.4 to a 9-month high of 54.5 and Eurozone Oct Markit manufacturing PMI unexpectedly rose +0.5 to a record high 58.6 (data from 2014). Crude oil was also supported by expectations for Wednesday's EIA crude inventories to fall -3.0 million bbl.

Metals prices this morning are lower with Dec gold (GCZ17 -0.36%) -3.8 (-0.30%), Dec silver (SIZ17 -0.60%) -0.061 (-0.36%) and Dec copper (HGZ17 -0.67%) -0.024 (-0.75%). Tuesday's closes: Dec gold -2.6 (-0.20%), Dec silver -0.109 (-0.64%), Dec copper +0.0100 (+0.31%). Metals on Tuesday settled mixed. Metals prices were supported by a weaker dollar and by strength in global manufacturing sector after the Oct Markit manufacturing indexes for both the U.S. and the Eurozone were stronger than expected. Copper was supported by tighter supplies after LME copper inventories fell -1,900 MT to a 5-week low of 281,550 MT. Precious metals prices were undercut by reduced safe-haven demand with the higher close in U.S. stocks.

 

GLOBAL EVENT CALENDAR10/25/2017
Wednesday, Oct 25
US 0700 ET Weekly MBA mortgage applications, previous +3.6% with purchase sub-index +4.2% and refi sub-index +3.0%.
0830 ET Sep durable goods orders expected +1.0% and +0.5% ex transportation, Aug +2.0% and +0.5% ex transportation. Sep capital goods new orders nondefense ex-aircraft expected +0.3%, Aug +1.1%.
0900 ET Aug FHFA house price index expected +0.4%, Jul +0.2% m/m.
1000 ET Sep new home sales expected -1.1% to 554,000, Aug -3.4% to 560,000.
1030 ET EIA weekly Petroleum Status Report.
1130 ET Treasury auctions $15 billion of 2-year floating-rate notes.
1300 ET Treasury auctions $34 billion of 5-year T-notes.
Thursday, Oct 26
US 0830 ET Weekly initial unemployment claims expected +13,000 to 235,000, previous -22,000 to 222,000. Weekly continuing claims expected +7,000 to 1.895 million, previous -16,000 to 1.88 million.
0830 ET Sep wholesale inventories expected +0.4%, Aug +0.9%.
0830 ET USDA weekly Export Sales.
1000 ET Sep pending home sales expected +0.4% m/m, Aug -2.6% m/m and -3.1% y/y.
1100 ET Oct Kansas City Fed manufacturing activity expected unch at 17, Sep +1 to 17.
1300 ET Treasury auctions $28 billion of 7-year T-notes.
U.S. STOCK CALENDAR10/25/2017
NameTickerTimeDescriptionPeriodEstimate
DTE Energy Co DTE US Bef-mkt Q3 2017 Earnings Release Q3 17 1.541
General Dynamics Corp GD US Bef-mkt Q3 2017 Earnings Release Q3 17 2.436
Anthem Inc ANTM US 06:00 Q3 2017 Earnings Release Q3 17 2.409
Thermo Fisher Scientific Inc TMO US 06:00 Q3 2017 Earnings Release Q3 17 2.247
Northrop Grumman Corp NOC US Bef-mkt Q3 2017 Earnings Release Q3 17 2.914
Visa Inc V US Bef-mkt Q4 2017 Earnings Release Q4 17 0.847
Wyndham Worldwide Corp WYN US 06:30 Q3 2017 Earnings Release Q3 17 2.018
Ingersoll-Rand PLC IR US 06:30 Q3 2017 Earnings Release Q3 17 1.426
Nielsen Holdings PLC NLSN US 06:30 Q3 2017 Earnings Release Q3 17 0.686
Avery Dennison Corp AVY US 06:45 Q3 2017 Earnings Release Q3 17 1.211
AO Smith Corp AOS US 06:50 Q3 2017 Earnings Release Q3 17 0.532
Coca-Cola Co/The KO US 06:55 Q3 2017 Earnings Release Q3 17 0.488
Laboratory Corp of America Holdings LH US 06:56 Q3 2017 Earnings Release Q3 17 2.384
International Paper Co IP US 06:59 Q3 2017 Earnings Release Q3 17 1.049
Nasdaq Inc NDAQ US 07:00 Q3 2017 Earnings Release Q3 17 1.022
WEC Energy Group Inc WEC US 07:00 Q3 2017 Earnings Release Q3 17 0.665
Walgreens Boots Alliance Inc WBA US 07:00 Q4 2017 Earnings Release Q4 17 1.21
Baxter International Inc BAX US 07:15 Q3 2017 Earnings Release Q3 17 0.592
Boeing Co/The BA US 07:30 Q3 2017 Earnings Release Q3 17 2.652
Huntington Bancshares Inc/OH HBAN US 07:30 Q3 2017 Earnings Release Q3 17 0.253
FLIR Systems Inc FLIR US 07:30 Q3 2017 Earnings Release Q3 17 0.483
Hess Corp HES US 07:30 Q3 2017 Earnings Release Q3 17 (1.303)
Freeport-McMoRan Inc FCX US 08:00 Q3 2017 Earnings Release Q3 17 0.309
Amphenol Corp APH US 08:00 Q3 2017 Earnings Release Q3 17 0.79
Nasdaq Inc NDAQ US 08:00 Q3 2017 Earnings Call Q3 17
Alaska Air Group Inc ALK US 08:00 Q3 2017 Earnings Release Q3 17 2.26
Norfolk Southern Corp NSC US 08:00 Q3 2017 Earnings Release Q3 17 1.644
Visa Inc V US 08:00 Q4 2017 Earnings Call Q4 17
Dr Pepper Snapple Group Inc DPS US 08:00 Q3 2017 Earnings Release Q3 17 1.152
Nielsen Holdings PLC NLSN US 08:00 Q3 2017 Earnings Call Q3 17
Baxter International Inc BAX US 08:30 Q3 2017 Earnings Call Q3 17
Wyndham Worldwide Corp WYN US 08:30 Q3 2017 Earnings Call Q3 17
Anthem Inc ANTM US 08:30 Q3 2017 Earnings Call Q3 17
Express Scripts Holding Co ESRX US 08:30 Q3 2017 Earnings Call Q3 17
Thermo Fisher Scientific Inc TMO US 08:30 Q3 2017 Earnings Call Q3 17
Walgreens Boots Alliance Inc WBA US 08:30 Q4 2017 Earnings Call Q4 17
Norfolk Southern Corp NSC US 08:45 Q3 2017 Earnings Call Q3 17
Coca-Cola Co/The KO US 09:00 Q3 2017 Earnings Call Q3 17
Laboratory Corp of America Holdings LH US 09:00 Q3 2017 Earnings Call Q3 17
DTE Energy Co DTE US 09:00 Q3 2017 Earnings Call Q3 17
General Dynamics Corp GD US 09:00 Q3 2017 Earnings Call Q3 17
Ameriprise Financial Inc AMP US 09:00 Q3 2017 Earnings Call Q3 17
Huntington Bancshares Inc/OH HBAN US 09:00 Q3 2017 Earnings Call Q3 17
Range Resources Corp RRC US 09:00 Q3 2017 Earnings Call Q3 17
FLIR Systems Inc FLIR US 09:00 Q3 2017 Earnings Call Q3 17
AO Smith Corp AOS US 10:00 Q3 2017 Earnings Call Q3 17
Freeport-McMoRan Inc FCX US 10:00 Q3 2017 Earnings Call Q3 17
Ingersoll-Rand PLC IR US 10:00 Q3 2017 Earnings Call Q3 17
International Paper Co IP US 10:00 Q3 2017 Earnings Call Q3 17
Dr Pepper Snapple Group Inc DPS US 10:00 Q3 2017 Earnings Call Q3 17
Hess Corp HES US 10:00 Q3 2017 Earnings Call Q3 17
Boeing Co/The BA US 10:30 Q3 2017 Earnings Call Q3 17
Equity Residential EQR US 11:00 Q3 2017 Earnings Call Q3 17
Torchmark Corp TMK US 11:00 Q3 2017 Earnings Call Q3 17
Alaska Air Group Inc ALK US 11:30 Q3 2017 Earnings Call Q3 17
Equifax Inc EFX US Q3 2017 Earnings Release Q3 17 1.49
Parker-Hannifin Corp PH US Annual General Meeting
NIKE Inc NKE US 12:00 Investor Day
Avery Dennison Corp AVY US 12:00 Q3 2017 Earnings Call Q3 17
Northrop Grumman Corp NOC US 12:00 Q3 2017 Earnings Call Q3 17
Amphenol Corp APH US 13:00 Q3 2017 Earnings Call Q3 17
F5 Networks Inc FFIV US 16:00 Q4 2017 Earnings Release Q4 17 2.205
TechnipFMC PLC FTI US Aft-mkt Q3 2017 Earnings Release Q3 17 0.45
Fortune Brands Home & Security Inc FBHS US Aft-mkt Q3 2017 Earnings Release Q3 17 0.818
Digital Realty Trust Inc DLR US Aft-mkt Q3 2017 Earnings Release Q3 17 1.484
Duke Realty Corp DRE US Aft-mkt Q3 2017 Earnings Release Q3 17 0.289
Packaging Corp of America PKG US Aft-mkt Q3 2017 Earnings Release Q3 17 1.683
Vertex Pharmaceuticals Inc VRTX US Aft-mkt Q3 2017 Earnings Release Q3 17 0.358
Universal Health Services Inc UHS US Aft-mkt Q3 2017 Earnings Release Q3 17 1.677
Public Storage PSA US Aft-mkt Q3 2017 Earnings Release Q3 17 2.606
Raymond James Financial Inc RJF US Aft-mkt Q4 2017 Earnings Release Q4 17 1.323
Tractor Supply Co TSCO US Aft-mkt Q3 2017 Earnings Release Q3 17 0.68
Aflac Inc AFL US Aft-mkt Q3 2017 Earnings Release Q3 17 1.63
Kimco Realty Corp KIM US 16:01 Q3 2017 Earnings Release Q3 17 0.374
Amgen Inc AMGN US 16:01 Q3 2017 Earnings Release Q3 17 3.112
Varian Medical Systems Inc VAR US 16:02 Q4 2017 Earnings Release Q4 17 1.189
CA Inc CA US 16:05 Q2 2018 Earnings Release Q2 18 0.621
Citrix Systems Inc CTXS US 16:05 Q3 2017 Earnings Release Q3 17 1.051
Realty Income Corp O US 16:05 Q3 2017 Earnings Release Q3 17 0.767
Unum Group UNM US 16:15 Q3 2017 Earnings Release Q3 17 1.039
Xilinx Inc XLNX US 16:20 Q2 2018 Earnings Release Q2 18 0.624
Mid-America Apartment Communities Inc MAA US 16:20 Q3 2017 Earnings Release Q3 17 1.466
F5 Networks Inc FFIV US 16:30 Q4 2017 Earnings Call Q4 17
Fortune Brands Home & Security Inc FBHS US 16:30 Q3 2017 Earnings Call Q3 17
O'Reilly Automotive Inc ORLY US 16:30 Q3 2017 Earnings Release Q3 17 3.148
Vertex Pharmaceuticals Inc VRTX US 16:30 Q3 2017 Earnings Call Q3 17
Citrix Systems Inc CTXS US 16:45 Q3 2017 Earnings Call Q3 17
Xilinx Inc XLNX US 17:00 Q2 2018 Earnings Call Q2 18
CA Inc CA US 17:00 Q2 2018 Earnings Call Q2 18
Varian Medical Systems Inc VAR US 17:00 Q4 2017 Earnings Call Q4 17
Amgen Inc AMGN US 17:00 Q3 2017 Earnings Call Q3 17
Tractor Supply Co TSCO US 17:00 Q3 2017 Earnings Call Q3 17
Digital Realty Trust Inc DLR US 17:30 Q3 2017 Earnings Call Q3 17


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Barchart U.S. Morning Call is written by the experienced members of the Commodity Research Bureau and the Barchart Research Team.  Commodity Research Bureau (CRB) has been providing research to the financial and commodity community since 1934.  If you have any questions for our analysts, please contact us at support@crbtrader.com.

Sent every morning, "Morning Call" summarizes overnight global market news, along with a U.S. market forecast for the day ahead. It Includes upcoming earnings reports, a global financial calendar, and quote board overview of where the markets are standing.

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