Barchart Morning Call

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OVERNIGHT MARKETS AND NEWS

Mar E-mini S&Ps (ESH18 -0.19%) this morning are down -0.26% and European stocks are down -0.29% as the markets await the first public comments later this morning from new Fed Chair Powell. Signs of increased M&A activity have contained losses in equities after Comcast bid $31 billion for Sky Plc, the UK's biggest pay-tv company. The 10-year T-note yield is up slightly after falling to a 1-week low on Monday. Asian stocks settled mixed: Japan +1.07%, Hong Kong -0.73%, China -1.13%, Taiwan -0.20%, Australia +0.24%, Singapore -0.43%, South Korea -0.16%, India -0.29%. Japan's Nikkei Stock Index rallied to a 3-week high as Apple suppliers gained after a report said Apple is preparing to release three new smartphones later this year. Japanese stocks also found carry-support from Monday's rally in U.S. stocks amid speculation Fed Chair Powell will keep former Fed Chair Yellen's gradual pace to raising interest rates.

The dollar index (DXY00 +0.03%) is up +0.03%. EUR/USD (^EURUSD) is unchanged. USD/JPY (^USDJPY) is up +0.04%.

Mar 10-year T-note prices (ZNH18 -0.09%) are down -3.5 ticks.

Eurozone Jan M3 money supply rose +4.6% y/y, right on expectations.

Eurozone Feb economic confidence fell -0.8 to 114.1, close to expectations of -0.7 to 114.0. The Feb business climate indicator fell -0.08 to 1.48, close to expectations of -0.07 to 1.47.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Jan durable goods orders (expected -2.0% and +0.5% ex transportation, Dec +2.8% and +0.7% ex transportation), (2) Jan wholesale inventories (expected +0.4%, Dec +0.4%), (3) FHFA Dec house price index (expected +0.4% m/m, Nov +0.4% m/m), (4) Dec S&P CoreLogic composite-20 home price index (expected +0.6% m/m and +6.35% y/y, Nov +0.75% m/m and +6.41% y/y), (5) Fed Chair Jerome Powell delivers the Fedís semi-annual monetary policy report to the House Financial Services Committee, (6) Feb Richmond Fed manufacturing index (expected +1 to 15, Jan -6 to 14), (7) Conference Board Feb U.S. consumer confidence (expected +1.0 to 126.4, Jan +2.3 to 125.4).

Notable S&P 500 earnings reports today include: Macy's (consensus $2.62), Priceline (14.10), AutoZone (8.87), L Brands (2.05), Sempra Energy (1.41), TJX (1.27), Lowe's (0.86), Discovery Communications (0.42), Monster Beverage (0.37), AES (0.34), Salesforce.com (0.34).

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

Equity conferences this week: BMO Capital Markets Global Metals & Mining Conference on Mon-Tue, Morgan Stanley MLP Diversified Natural Gas, Utilities & Clean Tech Conference on Mon-Tue, JMP Securities Technology Conference on Mon-Tue, Morgan Stanley Technology, Media & Telecom Conference on Mon-Wed, J.P. Morgan Global High Yield & Leveraged Finance Conference on Tue, KeyBank Capital Markets Emerging Technology Summit on Tue, MUFG Securities REITs Corporate Access Day on Tue, Wolfe Research Smart Ideas Conference on Tue, Barclays MLP Conference on Tue, Simmons & Company International Energy Conference on Wed, Bank of America Merrill Lynch Global Agriculture and Chemicals Conference on Wed-Thu, Keefe, Bruyette, & Woods Cards, Payments & Financial Technology Symposium on Thu, Simmons Energy Conference - Panel on Thu.

OVERNIGHT U.S. STOCK MOVERS

Ingevity (NGVT -0.14%) was downgraded to 'Hold' from 'Buy' at Loop Capital Markets.

Palo Alto Networks (PANW +2.28%) rose nearly 6% in after-hours trading after it reported Q2 adjusted EPS of 97 cents, higher than consensus of 79 cents, and then said it sees Q3 adjusted EPS of 94 cents to 96 cents, better than consensus of 81 cents.

Qorvo (QRVO +1.68%) was rated a new 'Overweight' at Piper Jaffray with a price target of $90.

Pegasystems (PEGA +6.57%) jumped nearly 9% in after-hours trading after it reported Q4 adjusted EPS of 27 cents, better than consensus of 14 cents, and then said it sees full-year adjusted EPS of $1.20, well above consensus of 78 cents.

Nutrisystem (NTRI -3.97%) tumbled over 25% in after-hours trading after it said it sees Q1 revenue of $204 million to $209 million, weaker than consensus of $240.2 million, and said it sees full-year revenue of $685 million to $705 million, well below consensus of $791.7 million.

Discovery Communications (DSCA) rose 3% in after-hours trading after Francisco Partners acquired majority ownership of Discovery Education from Discovery Communications for $120 million.

Akorn (AKRX +0.53%) plunged over 30% in after-hours trading after Fresnius said it's conducting an independent investigation into "alleged breaches of FDA data integrity requirements" relating to product development.

Lantheus Holdings (LNTH +1.01%) slumped 11% in after-hours trading after it gave 2018 revenue guidance of $337 million to $342 million, below consensus of $343.3 million.

Tenet Healthcare (THC -1.09%) jumped nearly 7% in after-hours trading after it raised guidance on 2018 adjusted Ebitda to $2.5 billion-$2.6 billion from a Jan 5 estimate of $2.48 billion to $2.58 billion.

NMI Holdings ({=NMIH lost over 2% in after-hours trading after it announced that it had commenced an underwritten registered public offering of 3.7 million shares of common stock.

Veritone (VERI +17.62%) slumped 13% in after-hours trading after it reported a Q4 adjusted loss per share of -84 cents, much wider than consensus of -46 cents.

Selecta Biosciences (SELB +1.23%) rose 2% in after-hours trading after it was rated a new 'Buy' at Mizuho Securities USA with a price target of $30.

Fitbit (FIT +4.92%) dropped over 10% in after-hours trading after it said it sees Q1 adjusted loss of -18 cents to -21 cents a share, wider than consensus of -9 cents a share.

MARKET COMMENTS

Mar S&P 500 E-mini stock futures (ESH18 -0.19%) this morning are down -7.25 points (-0.26%). Monday's closes: S&P 500 +1.18%, Dow Jones +1.58%, Nasdaq +1.34%. The S&P 500 on Monday climbed to a 3-week high and closed higher on upbeat comments from ECB President Draghi who said the Eurozone economy is expanding "robustly," which is positive for global growth. Stocks also received a boost from strength in technology stocks and a rally in energy stocks after crude oil prices rose +0.57% to a 3-week high. A negative factor was the unexpected -7.8% decline in U.S. Jan new home to a 5-month low of 593,000, weaker than expectations of +3.5% to 647,000.

Mar 10-year T-note prices (ZNH18 -0.09%) this morning are down -3.5 ticks. Monday's closes: TYH8 +3.00, FVH8 +1.75. Mar 10-year T-notes on Monday rallied to a 1-week high and closed higher on the unexpected decline in U.S. Jan new home sales to a 5-month low and on short-covering in T-note futures ahead of Fed Chair Powell's testimony to the House Financial Services Committee on Tuesday, his first extended comments as Fed Chair.

The dollar index (DXY00 +0.03%) this morning is up +0.026 (+0.03%). EUR/USD (^EURUSD) is unch and USD/JPY (^USDJPY) is up +0.04 (+0.04%). Monday's closes: Dollar Index -0.030 (-0.03%), EUR/USD +0.0022 (+0.18%), USD/JPY +0.04 (+0.04%). The dollar index on Monday closed lower on the unexpected decline in U.S. Jan new home sales to a 5-month low and the decline in the 10-year T-note yield to a 1-week low, which reduces the dollar's interest rate differentials. There was also strength in EUR/USD after ECB President Draghi said the Eurozone economy is expanding "robustly."

Apr crude oil (CLJ18 -0.41%) this morning is down -33 cents (-0.52%) and Apr gasoline (RBJ18 -0.19%) is -0.0061 (-0.30%). Monday's closes: Apr WTI crude +0.36 (+0.57%), Apr gasoline +0.0132 (+0.66%). Apr crude oil and gasoline on Monday closed higher with Apr crude at a 3-week high. Crude oil prices were boosted by a weaker dollar, stronger Chinese demand for crude after China Jan crude oil imports jumped +21% m/m to a record 9.61 million bpd, and the increase in the crack spread to a 3-1/4 month high, which gives refiners incentive to purchase crude to refine into gasoline.

Metals prices this morning are mixed with Apr gold (GCJ18 +0.09%) +0.8 (+0.06%), Mar silver (SIH18 +0.18%) +0.005 (+0.03%), and Mar copper (HGH18 -0.59%-0.021 (-0.66%). Monday's closes: Apr gold +2.5 (+0.19%), Mar silver +0.066 (+0.40%), Mar copper -0.0150 (-0.47%). Metals on Monday settled mixed. Metals prices were boosted by a weaker dollar and by increased inflation expectations that boost demand for gold as an inflation hedge after the 10-year T-note breakeven rate rose to a 3-1/3 year high. Copper prices closed lower after U.S. Jan new home sales unexpectedly fell to a 5-month low.