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OVERNIGHT MARKETS AND NEWS

Dec E-mini S&Ps (ESZ17 -0.07%) this morning are down -0.11% and European stocks are down -0.17% as they consolidate this week's gains in U.S. stock indexes to record highs and to 2-1/4 year highs in European bourses. The dollar moved lower and T-note prices ticked up in overnight trading on the expectations that President Trump this afternoon will appoint Jerome Powell as the next Fed Chair. The markets expect Powell to keep outgoing Fed Chair Yellen's cautious approach to withdrawing stimulus. The markets also await the rollout today by Republican House leaders of their tax reform plans. Losses in European stocks were contained after German Oct unemployment fell more than expected and the unemployment rate held at a record low. Asian stocks settled mostly lower: Japan +0.53%, Hong Kong -0.26%, China -0.37%, Taiwan -0.17%, Australia -0.10%, Singapore -0.33%, South Korea -0.36%, India -0.08%. Japan's Nikkei Stock index bucked the trend of weaker Asian markets and rose to a new 21-1/3 year high, led by a 5% jump in Honda Motor, after the company raised its annual operating profit forecast and announced a share buyback. Also, an unexpected jump in Japan Oct consumer confidence to a 4-year high lifted Japanese stocks.

The dollar index (DXY00 -0.22%) is down -0.18%. EUR/USD (^EURUSD) is up +0.25%. USD/JPY (^USDJPY) is down -0.06%.

Dec 10-year T-note prices (ZNZ17 +0.06%) are up +1 tick.

German Oct unemployment fell -11,000 to 2.495 million, better than expectations of -10,000. The Oct unemployment rate held at a record low of 5.6%, right on expectations.

The German Oct Markit/BME manufacturing PMI was revised up to 60.6 from the previously reported 60.5, the strongest pace of expansion in 6-1/3 years.

The Eurozone Oct Markit manufacturing PMI was revised downward to 58.5 from the previously reported 58.6, still the highest pace of expansion in 7-1/2 years.

Japan Oct consumer confidence unexpectedly rose +0.6 to 44.5, stronger than expectations of -0.3 to 43.6 and a 4-year high.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Oct Challenger job cuts (Sep -27.0% y/y), (2) weekly initial unemployment claims (expected +2,000 to 235,000, previous +10,000 to 233,000) and continuing claims (expected +1,000 to 1.894 million, previous -3,000 to 1.893 million), (3) Q3 non-farm productivity (expected +2.6%, Q2 +1.5%. Q3 unit labor costs expected +0.4%, Q2 +0.2%), (4) New York Fed President William Dudley delivers closing remarks at an Alternative Reference Rates Committee Roundtable, (5) USDA weekly Export Sales.

Notable S&P 500 earnings reports today include: Apple (consensus $1.87), Yum Brands (0.67), Republic Services (0.63), Starbucks (0.55), Ralph Lauren (1.88), Cigna (2.35), Delphi Automotive (1.57), Con Ed (1.51).

U.S. IPO's scheduled to price today: Aquantia (AQ).

Equity conferences this week: VancAnalysts Association of Boston Conference on Thu-Fri, American College of Rheumatology Meeting on Fri, North American Cystic Fibrosis Conference on Fri.

OVERNIGHT U.S. STOCK MOVERS

Facebook (FB +1.44%) lost 1% in after-hours trading after CEO Zuckerberg said the company is serious about preventing abuse and that its investment in security in keeping "problematic content" off of its social network will affect its profitability.

MetLife (MET +0.54%) gained over 1% in after-hours trading after it reported Q3 operating EPS of $1.09, higher than consensus of 92 cents.

Kraft Heinz (KHC +0.48%) lost nearly 2% in after-hours trading after it reported Q3 net sales of $6.31 billion, weaker than consensus of $6.33 billion.

L Brands (LB +1.32%) jumped 9% in after-hours trading after it reported Oct comparable sales unexpectedly rose +2%, better than consensus of down -1.7%.

Qualcomm (QCOM +4.80%) rose 1% in after-hours trading after CEO Mollenkopf said that company's chip unit is winning market share from rivals and demand from "China remains strong."

Tesla (TSLA -3.15%) slipped 4% in after-hours trading after it reported a Q3 adjusted loss of -$2.92 per share, a wider loss than consensus of -$2.27.

Symantec (SYMC -1.05%) dropped nearly 8% in after-hours trading after it reported Q2 adjusted EPS of 40 cents, weaker than consensus of 43 cents, and then lowered guidance on full-year adjusted EPS to $1.66 to $1.75 from a prior view of $1.75 to $1.85, below consensus of $1.80.

Exelixis (EXEL -2.26%) rallied 6% in after-hours trading after it reported Q3 EPS of 26 cents, well above consensus of 8 cents.

Hanesbrands (HBI -2.18%) slid 5% in after-hours trading after it said it sees Q4 adjusted EPS of 51 cents-53 cents, below consensus of 56 cents, and then said its sees full-year adjusted EPS of $1.93 to $1.95, weaker than consensus of $1.99.

Yelp (YELP -1.48%) dropped 6% in after-hours trading after it forecast Q4 revenue of $211 million to $216 million, well below consensus of $233.1 million.

Shake Shack (SHAK -2.13%) rose 4% in after-hours trading after reported Q3 adjusted EPS of 17 cents, higher than consensus of 15 cents, and then said it sees full-year comparable sales down -1.5% to -2.0%, better than a prior view of sales down -2.0% to -3.0%.

FireEye (FEYE -3.25%) tumbled 13% in after-hours trading after it forecast Q4 billings of $210 million-$230 million, below consensus of $237 million.

Stratasys (SSYS -6.84%) was downgraded to 'Neutral' from 'Outperform' at FBR Capital Markets.

GoPro (GPRO +2.30%) slumped 10% in after-hours trading after it forecast Q4 revenue of $460 million-$480 million, well below consensus of $521.4 million.

Oclaro (OCLR -3.02%) sank 14% in after-hours trading after it forecast Q2 revenue of $135 million to $143 million, well below consensus of $159.1 million.

3D Systems (DDD -23.67%) was downgraded to 'Sell' from 'Market Perform' at FBR Capital Markets with a price target of $7.

MARKET COMMENTS

Dec S&P 500 E-mini stock futures (ESZ17 -0.07%) this morning are down -2.75 points (-0.11%). Wednesday's closes: S&P 500 +0.16%, Dow Jones +0.25%, Nasdaq unch. The S&P 500 on Wednesday climbed to a new record high and closed higher on carry-over support from a rally in European and Japanese bourses as strong global corporate earnings results lifted the Euro Stoxx 50 to a 2-1/4 year high and the Nikkei Stock Index to a 21-1/3 year high. U.S. stocks were also boosted by the +235,000 increase in the U.S. Oct ADP employment report (stronger than expectations of +200,000) and by the upbeat post-FOMC statement that said the U.S. economy continued to rise at a "solid rate" despite disruptions from recent hurricanes. Stocks were undercut by the -2.1-point decline in the U.S. Oct ISM manufacturing index to 58.7, weaker than expectations of -1.3 to 59.5.

Dec 10-year T-note prices (ZNZ17 +0.06%) this morning are up +1 tick. Wednesday's closes: TYZ7 -1.00, FVZ7 -2.00. Dec 10-year T-notes on Wednesday closed slightly lower on the post-FOMC meeting statement that said the U.S. economy continued to expand despite disruptions from hurricanes. T-notes were also undercut by reduced safe-haven demand with the rally in the S&P 500 to a new record high.

The dollar index (DXY00 -0.22%) this morning is down -0.166 (-0.18%). EUR/USD (^EURUSD) is up +0.0029 (+0.25%) and USD/JPY (^USDJPY) is down -0.07 (-0.06%). Wednesday's closes: Dollar Index +0.263 (+0.28%), EUR/USD -0.0027 (-0.23%), USD/JPY +0.54 (+0.48%). The dollar index on Wednesday closed higher on the stronger-than-expected increase in the U.S. Oct ADP employment report, which bolsters the case for additional rate hikes, and on the post FOMC meeting statement that said economic activity continues to rise at a solid rate despite disruptions from recent hurricanes.

Dec crude oil (CLZ17 -0.24%) this morning is up +2 cents (+0.04%) and Dec gasoline (RBZ17 +0.17%) is +0.0059 (+0.34%). Wednesday's closes: Dec WTI crude -0.08 (-0.15%), Dec gasoline +0.0085 (+0.49%). Dec crude oil and gasoline on Wednesday settled mixed. Crude oil prices were supported by the -2.435 million bbl draw in EIA crude inventories to a 1-3/4 year low (vs expectations of -1.3 million bbl) and by the -4.02 million bbl drop in EIA gasoline inventories to a 2-year low (vs expectations of -1.55 million bbl). Crude oil prices were undercut by a stronger dollar and by the +0.5% increase in U.S. crude production in the week of Oct 27 to 9.553 million bpd.

Metals prices this morning are weaker with Dec gold (GCZ17 unch) -0.7 (-0.05%), Dec silver (SIZ17 -0.38%) -0.081 (-0.47%) and Dec copper (HGZ17 -0.75%) -0.025 (-0.78%). Wednesday's closes: Dec gold +6.8 (+0.54%), Dec silver +0.483 (+2.89%), Dec copper +0.0415 (+1.34%). Metals on Wednesday closed higher with Dec silver at a 1-week high. Metals prices were boosted by the rally in global stock markets to multi-year and record highs, which shows confidence in the economic outlook that may lead to increased demand for industrial metals, and by expectations that President Trump will appoint Jerome Powell as the next Fed Chair, which would signal a continuation of Fed Chair Yellen's relatively dovish monetary policy direction.

GLOBAL EVENT CALENDAR11/02/2017
Thursday, Nov 2
US 0730 ET Oct Challenger job cuts, Sep -27.0% y/y.
0830 ET Weekly initial unemployment claims expected +2,000 to 235,000, previous +10,000 to 233,000. Weekly continuing claims expected +1,000 to 1.894 million, previous -3,000 to 1.893 million.
0830 ET Q3 non-farm productivity expected +2.6%, Q2 +1.5%. Q3 unit labor costs expected +0.4%, Q2 +0.2%.
0830 ET USDA weekly Export Sales.
1220 ET New York Fed President William Dudley delivers closing remarks at an Alternative Reference Rates Committee Roundtable.
Friday, Nov 3
US 0830 ET Oct non-farm payrolls expected +313,000, Sep -33,000. Oct private payrolls expected +301,000, Sep -40,000. Oct manufacturing payrolls expected +15,000, Sep -1,000, Oct unemployment rate expected unch at 4.2%, Sep -0.2 to 4.2%.
0830 ET Oct average hourly earnings expected +0.2% m/m and +2.7% y/y, Sep +0.5% m/m and +2.9% y/y. Oct average weekly hours expected unch at 34.4 hours, Sep unch at 34.4 hrs.
0830 ET Sep trade balance expected -$43.3 billion, Aug -$42.4 billion.
1000 ET Oct ISM non-manufacturing index expected -1.3 to 58.5, Sep +4.5 to 59.8.
1000 ET Sep factory orders expected +1.2%, Aug +1.2% and +0.4% ex-transportation.
1045 ET Revised Oct Markit services PMI expected unch at 55.9, prelim-Oct +0.6 to 55.9.
1215 ET Minneapolis Fed President Neel Kashkari (voter) speaks in a moderated Q&A on Women in Housing and Finance.
U.S. STOCK CALENDAR11/02/2017
NameTickerTimeDescriptionPeriodEstimate
Exelon Corp EXC US Bef-mkt Q3 2017 Earnings Release Q3 17 0.859
Becton Dickinson and Co BDX US 06:00 Q4 2017 Earnings Release Q4 17 2.372
Ball Corp BLL US 06:00 Q3 2017 Earnings Release Q3 17 0.585
AES Corp/VA AES US 06:00 Q3 2017 Earnings Release Q3 17 0.293
PG&E Corp PCG US Bef-mkt Q3 2017 Earnings Release Q3 17 0.913
WestRock Co WRK US Bef-mkt Q4 2017 Earnings Release Q4 17 0.797
Automatic Data Processing Inc ADP US Bef-mkt Q1 2018 Earnings Release Q1 18 0.849
Gartner Inc IT US Bef-mkt Q3 2017 Earnings Release Q3 17 0.519
Newell Brands Inc NWL US Bef-mkt Q3 2017 Earnings Release Q3 17 0.92
AMETEK Inc AME US Bef-mkt Q3 2017 Earnings Release Q3 17 0.62
Martin Marietta Materials Inc MLM US Bef-mkt Q3 2017 Earnings Release Q3 17 2.462
HCP Inc HCP US Bef-mkt Q3 2017 Earnings Release Q3 17 0.461
Willis Towers Watson PLC WLTW US Bef-mkt Q3 2017 Earnings Release Q3 17 1.134
DowDuPont Inc DWDP US 06:00 Q3 2017 Earnings Release Q3 17 0.433
Chesapeake Energy Corp CHK US Bef-mkt Q3 2017 Earnings Release Q3 17 0.107
Quanta Services Inc PWR US Bef-mkt Q3 2017 Earnings Release Q3 17 0.608
AmerisourceBergen Corp ABC US 06:30 Q4 2017 Earnings Release Q4 17 1.321
NRG Energy Inc NRG US 06:30 Q3 2017 Earnings Release Q3 17 0.812
Delphi Automotive PLC DLPH US 06:45 Q3 2017 Earnings Release Q3 17 1.567
Discovery Communications Inc DISCA US 07:00 Q3 2017 Earnings Release Q3 17 0.543
Church & Dwight Co Inc CHD US 07:00 Q3 2017 Earnings Release Q3 17 0.469
Yum! Brands Inc YUM US 07:00 Q3 2017 Earnings Release Q3 17 0.668
Zoetis Inc ZTS US 07:00 Q3 2017 Earnings Release Q3 17 0.622
Intercontinental Exchange Inc ICE US 07:30 Q3 2017 Earnings Release Q3 17 0.702
Parker-Hannifin Corp PH US 07:30 Q1 2018 Earnings Release Q1 18 2.038
Becton Dickinson and Co BDX US 08:00 Q4 2017 Earnings Call Q4 17
NRG Energy Inc NRG US 08:00 Q3 2017 Earnings Call Q3 17
Gartner Inc IT US 08:00 Q3 2017 Earnings Call Q3 17
Vulcan Materials Co VMC US 08:00 Q3 2017 Earnings Release Q3 17 1.048
Apache Corp APA US 08:00 Q3 2017 Earnings Release Q3 17 (0.038)
Ralph Lauren Corp RL US 08:00 Q2 2018 Earnings Release Q2 18 1.882
MetLife Inc MET US 08:00 Q3 2017 Earnings Call Q3 17
DowDuPont Inc DWDP US 08:00 Q3 2017 Earnings Call Q3 17
Yum! Brands Inc YUM US 08:15 Q3 2017 Earnings Call Q3 17
Delphi Automotive PLC DLPH US 08:30 Q3 2017 Earnings Call Q3 17
ANSYS Inc ANSS US 08:30 Q3 2017 Earnings Call Q3 17
AMETEK Inc AME US 08:30 Q3 2017 Earnings Call Q3 17
Newell Brands Inc NWL US 08:30 Q3 2017 Earnings Call Q3 17
AmerisourceBergen Corp ABC US 08:30 Q4 2017 Earnings Call Q4 17
WestRock Co WRK US 08:30 Q4 2017 Earnings Call Q4 17
Cigna Corp CI US 08:30 Q3 2017 Earnings Call Q3 17
Cigna Corp CI US 08:30 Q3 2017 Earnings Release Q3 17 2.348
Discovery Communications Inc DISCA US 08:30 Q3 2017 Earnings Call Q3 17
Automatic Data Processing Inc ADP US 08:30 Q1 2018 Earnings Call Q1 18
Zoetis Inc ZTS US 08:30 Q3 2017 Earnings Call Q3 17
Intercontinental Exchange Inc ICE US 08:30 Q3 2017 Earnings Call Q3 17
AES Corp/VA AES US 09:00 Q3 2017 Earnings Call Q3 17
Allstate Corp/The ALL US 09:00 Q3 2017 Earnings Call Q3 17
CF Industries Holdings Inc CF US 09:00 Q3 2017 Earnings Call Q3 17
L Brands Inc LB US 09:00 Investor Meeting
Willis Towers Watson PLC WLTW US 09:00 Q3 2017 Earnings Call Q3 17
Ralph Lauren Corp RL US 09:00 Q2 2018 Earnings Call Q2 18
Marathon Oil Corp MRO US 09:00 Q3 2017 Earnings Call Q3 17
Chesapeake Energy Corp CHK US 09:00 Q3 2017 Earnings Call Q3 17
Eversource Energy ES US 09:00 Q3 2017 Earnings Call Q3 17
Regency Centers Corp REG US 09:00 Q3 2017 Earnings Call Q3 17
American Water Works Co Inc AWK US 09:00 Q3 2017 Earnings Call Q3 17
Quanta Services Inc PWR US 09:00 Q3 2017 Earnings Call Q3 17
Williams Cos Inc/The WMB US 09:30 Q3 2017 Earnings Call Q3 17
Exelon Corp EXC US 10:00 Q3 2017 Earnings Call Q3 17
Boston Properties Inc BXP US 10:00 Q3 2017 Earnings Call Q3 17
Pioneer Natural Resources Co PXD US 10:00 Q3 2017 Earnings Call Q3 17
Lincoln National Corp LNC US 10:00 Q3 2017 Earnings Call Q3 17
Host Hotels & Resorts Inc HST US 10:00 Q3 2017 Earnings Call Q3 17
Church & Dwight Co Inc CHD US 10:00 Q3 2017 Earnings Call Q3 17
Vulcan Materials Co VMC US 10:00 Q3 2017 Earnings Call Q3 17
Altria Group Inc MO US 10:20 Investor Day
PG&E Corp PCG US 11:00 Q3 2017 Earnings Call Q3 17
Extra Space Storage Inc EXR US 11:00 Q3 2017 Earnings Call Q3 17
Martin Marietta Materials Inc MLM US 11:00 Q3 2017 Earnings Call Q3 17
Prudential Financial Inc PRU US 11:00 Q3 2017 Earnings Call Q3 17
Occidental Petroleum Corp OXY US 11:00 Q3 2017 Earnings Call Q3 17
Ball Corp BLL US 11:00 Q3 2017 Earnings Call Q3 17
Federal Realty Investment Trust FRT US 11:00 Q3 2017 Earnings Call Q3 17
Parker-Hannifin Corp PH US 11:00 Q1 2018 Earnings Call Q1 18
Flowserve Corp FLS US 11:00 Q3 2017 Earnings Call Q3 17
Western Digital Corp WDC US Annual General Meeting
Brighthouse Financial Inc BHF US 12:00 Q3 2017 Earnings Call Q3 17
Essex Property Trust Inc ESS US 12:00 Q3 2017 Earnings Call Q3 17
HCP Inc HCP US 13:00 Q3 2017 Earnings Call Q3 17
L Brands Inc LB US 13:00 Investor Meeting - Q&A Sessions
Apache Corp APA US 14:00 Q3 2017 Earnings Call Q3 17
Western Union Co/The WU US 16:00 Q3 2017 Earnings Release Q3 17 0.448
Consolidated Edison Inc ED US Aft-mkt Q3 2017 Earnings Release Q3 17 1.514
Alliant Energy Corp LNT US Aft-mkt Q3 2017 Earnings Release Q3 17 0.856
Motorola Solutions Inc MSI US Aft-mkt Q3 2017 Earnings Release Q3 17 1.40
Mettler-Toledo International Inc MTD US Aft-mkt Q3 2017 Earnings Release Q3 17 4.33
Starbucks Corp SBUX US 16:04 Q4 2017 Earnings Release Q4 17 0.546
Assurant Inc AIZ US 16:05 Q3 2017 Earnings Release Q3 17 (1.785)
Republic Services Inc RSG US 16:05 Q3 2017 Earnings Release Q3 17 0.633
Activision Blizzard Inc ATVI US 16:05 Q3 2017 Earnings Release Q3 17 0.496
CBS Corp CBS US 16:05 Q3 2017 Earnings Release Q3 17 1.065
American International Group Inc AIG US 16:15 Q3 2017 Earnings Release Q3 17 (0.779)
Fluor Corp FLR US 16:15 Q3 2017 Earnings Release Q3 17 0.605
PerkinElmer Inc PKI US 16:15 Q3 2017 Earnings Release Q3 17 0.722
EOG Resources Inc EOG US 16:20 Q3 2017 Earnings Release Q3 17 0.111
Western Union Co/The WU US 16:30 Q3 2017 Earnings Call Q3 17
Apple Inc AAPL US 16:30 Q4 2017 Earnings Release Q4 17 1.87
CBS Corp CBS US 16:30 Q3 2017 Earnings Call Q3 17
Activision Blizzard Inc ATVI US 16:30 Q3 2017 Earnings Call Q3 17
Starbucks Corp SBUX US 17:00 Q4 2017 Earnings Call Q4 17
Republic Services Inc RSG US 17:00 Q3 2017 Earnings Call Q3 17
Apple Inc AAPL US 17:00 Q4 2017 Earnings Call Q4 17
PerkinElmer Inc PKI US 17:00 Q3 2017 Earnings Call Q3 17
Motorola Solutions Inc MSI US 17:00 Q3 2017 Earnings Call Q3 17
Mettler-Toledo International Inc MTD US 17:00 Q3 2017 Earnings Call Q3 17
Fluor Corp FLR 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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