Barchart Morning Call
OVERNIGHT MARKETS AND NEWS

Sep E-mini S&Ps (ESU17 -0.14%) this morning are down -0.17% at a 4-week low and European stocks are down -0.87% at a 4-3/4 month low as volatility surges as tensions between the U.S. and North Korea escalate. The VIX volatility index soared to a 9-month high as global markets decline on concern that the saber rattling between North Korea and the U.S. may escalate to military confrontation. President Trump warned North Korea not to follow through with a missile test near Guam and Japan move missile interceptors into place on the west side of Japan in response to the North Korean threats. Meanwhile, Australian Prime Minister Turnbull said Australia would back the U.S. if North Korea attacked, while China called on the U.S. and North Korea to avoid taking the "old road" of taking turns to escalate tensions. Precious metals are the beneficiary of the global market selloff with Dec COMEX gold (GCZ17 +0.24%) up +0.24% at a 2-month high on increased safe-haven demand. Asian stocks settled lower: Japan and Taiwan closed for holiday, Hong Kong -2.04%, China -1.63%, Australia -1.18%, Singapore -1.31%, South Korea -1.83%, India -1.01%.

The dollar index (DXY00 unch) is up +0.03%. EUR/USD (^EURUSD) is down -0.07%. USD/JPY (^USDJPY) is down -0.10% at a new 1-3/4 month low as the slump in global markets boosts safe-haven demand for the yen.

Sep 10-year T-note prices (ZNU17 +0.11%) are up +6.5 ticks at a 6-week high as investors flock to the safety of government debt from the rising tensions over North Korea.

An editorial published in the state-controlled Global Times said that China should stay neutral if North Korea provoked the U.S. into war and that China would intervene if the U.S. and South Korea sought to attack North Korea and topple the regime. The Chinese editorial also said that "China will strengthen coordination with Russia, and to push forward the mutual strategic goal of anti-nuclear and anti-war."

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Jul CPI (expected +0.2% m/m and +1.8% y/y, Jun unch m/m and +1.6% y/y) and Jul CPI ex food & energy (expected +0.2% m/m and +1.7% y/y, Jun +0.1% m/m and +1.7% y/y), (2) Dallas Fed President Robert Kaplan (voter) speaks at an event for the University of Texas at Arlington’s Accounting Department, (3) Minneapolis Fed President Neel Kashkari (voter) holds a moderated audience Q&A session with the Independent Community Bankers of Minnesota.

Notable Russell 3000 earnings reports today include: JC Penney (consensus -$0.04), Applied Industrial Technologies (0.78), Selecta Biosciences (-0.85), Acushnet Holdings (0.54), Miragen Therapeutics (-0.47).

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

Equity conferences this week: none.

OVERNIGHT U.S. STOCK MOVERS

Goldman Sachs (GS -2.39%) was downgraded to 'Hold' from 'Buy' at HSBC.

J.C. Penney (JCP -8.72%) tumbled over 6% in pre-market trading after it reported a Q2 adjusted loss per share of -9 cents, wider than consenus of -4 cents.

Nvidia (NVDA -4.28%) fell almost 5% in after-hours trading after it reported Q2 revenue of $181.7 million, below consensus of $185.8 million, and said Q2 daily active users were 173 million, less than expectations of 175 million.

Barracuda Networks (CUDA -3.41%) rallied almost 5% in after-hours trading when it was announced that it will replace Sabra Health Care in the S&P SmallCap 600 before the open of trade on Thursday, August 17.

Kohl's (KSS -5.80%) rose almost 1% in after-hours trading after it was upgraded to 'Neutral' from 'Underperform' at Credit Suisse.

Trade Desk (TTD -7.28%) jumped 9% in after-hours trading after it reported Q2 adjusted EPS of 52 cents. well above consensus of 19 cents, and said it sees Q3 revenue of $76 million, better than consensus of $74.1 million.

Nordstrom (JWN -4.29%) climbed over 3% in after-hours trading after it reported Q2 revenue of $3.79 billion, better than consensus of $3.75 billion.

Paylocity Holding Corp. (PCTY -2.98%) rallied 6% in after-hours trading after it reported Q4 adjusted EPS of 9 cents, well above consensus of 1 cent

Camping World Holdings (CWH -2.93%) jumped nearly 7% in after-hours trading after it reported Q2 adjusted proforma EPS of 91 cents, well above consensus of 69 cents.

Norwegian Cruise Line Holdings (NCLH -2.21%) slid almost 4% in after-hours trading after it announced the launch of a secondary public offering of 15 million shares by shareholders.

Pfizer (PFE -0.09%) lost almost 1% in after-hours trading after the company said the U.S. Justice Department is investigating its generic-drug business as part of an industrywide probe into possible price fixing by drug makers.

Snap (SNAP +1.55%) tumbled over 12% in after-hours trading after it reported Q2 revenue of $181.7 million, weaker than consensus of $185.8 million, and said it had 173 million Q2 active users, below expectations of 175 million.

Noodles & Co. (NDLS -2.50%) rose almost 4% in after-hours trading after it said it sees opening 17 new restaurants in 2017, compared with a prior expectation of 14-17 restaurants.

MARKET COMMENTS

Sep S&P 500 E-mini stock futures (ESU17 -0.14%) this morning are down -4.25 points (-0.17%) at a fresh 4-week low. Thursday's closes: S&P 500 -1.45%, Dow Jones -0.93%, Nasdaq -2.22%. The S&P 500 on Thursday fell to a 4-week low and closed sharply lower on heightened North Korean tensions that pushed the VIX volatility index up to a 2-1/2 month high and spurred long liquidation in stocks after North Korea said it is considering a plan to launch as many as four Hwasong-12 missiles toward the U.S. territory of Guam, which prompted South Korea and Japan to say that North Korea would face a "strong response" if it carried through on its actions.

Sep 10-year T-note prices (ZNU17 +0.11%) this morning are up +6.5 ticks at a new 6-week high. Thursday's closes: TYU7 +7.00, FVU7 +2.25. The Sep 10-year T-note on Thursday climbed to a new 6-week high and settled higher on slack inflation pressures after the U.S. Jul core PPI of -0.1% m/m and +1.8% y/y was weaker than expectations of +0.2% m/m and +2.1% y/y. T-note prices were also boosted by the escalation of tensions between the U.S. and North Korea, which spurred a plunge in stocks and boosted the safe-haven demand for T-notes.

The dollar index (DXY00 unch) this morning is up +0.031 (+0.03%). EUR/USD (^EURUSD) is down -0.0008 (-0.07%) and USD/JPY (^USDJPY) is down -0.11 (-0.10%) at a new 1-3/4 month low. Thursday's closes: Dollar Index -0.147 (-0.16%), EUR/USD +0.0013 (+0.11%), USD/JPY -0.87 (-0.79%). The dollar index on Thursday closed lower on the selloff in the S&P 500 to a 3-week low, which boosted the safe-haven demand for the yen as USD/JPY slid to a 1-3/4 month low. The dollar was also undercut by the fall in the 10-year T-note yield to a 6-week low, which reduced the dollar's interest rate differentials.

Sep crude oil (CLU17 -0.47%) this morning is down -33 cents (-0.68%) at a 2-week low. Sep gasoline (RBU17 -0.15%) is -0.0046 (-0.29%) at a 2-week low. Thursday's closes: Sep WTI crude +0.39 (+0.79%), Sep gasoline -0.0008 (-0.05%). Sep crude oil and gasoline on Thursday fell to 2-week lows and closed lower on the sharp selloff in global equity markets due to heightened tensions with North Korea, which undercut confidence in the economic outlook and energy demand. A bullish factor was a weaker dollar.

GLOBAL EVENT CALENDAR08/11/2017
Friday, Aug 11
US 0830 ET Jul CPI expected +0.2% m/m and +1.8% y/y, Jun unch m/m and +1.6% y/y. Jul CPI ex food & energy expected +0.2% m/m and +1.7% y/y, Jun +0.1% m/m and +1.7% y/y.
0940 ET Dallas Fed President Robert Kaplan (voter) speaks at an event for the University of Texas at Arlingtons Accounting Department.
1130 ET Minneapolis Fed President Neel Kashkari (voter) holds a moderated audience Q&A session with the Independent Community Bankers of Minnesota.
Monday, Aug 14
US 1100 ET USDA weekly grain export inspections.
1600 ET USDA crop conditions and planting progress.
U.S. STOCK CALENDAR08/11/2017
CompanyTickerTimeEvent DescriptionPeriodEstimate
Applied Industrial Technologies Inc AIT US Bef-mkt Q4 2017 Earnings Release Q4 17 0.776
Selecta Biosciences Inc SELB US Bef-mkt Q2 2017 Earnings Release Q2 17 (0.852)
Acushnet Holdings Corp GOLF US 06:45 Q2 2017 Earnings Release Q2 17 0.539
JC Penney Co Inc JCP US 07:30 Q2 2018 Earnings Release Q2 18 (0.036)
Kingstone Cos Inc KINS US 08:30 Q2 2017 Earnings Call Q2 17
Acushnet Holdings Corp GOLF US 08:30 Q2 2017 Earnings Call Q2 17
JC Penney Co Inc JCP US 08:30 Q2 2018 Earnings Call Q2 18
Selecta Biosciences Inc SELB US 08:30 Q2 2017 Earnings Call Q2 17
Applied Industrial Technologies Inc AIT US 10:00 Q4 2017 Earnings Call Q4 17
J Alexander's Holdings Inc JAX US 11:00 Q2 2017 Earnings Call Q2 17
Energy XXI Gulf Coast Inc EXXI US 11:00 Q2 2017 Earnings Call Q2 17
Invitation Homes Inc INVH US 11:00 Q2 2017 Earnings Call Q2 17
Oconee Federal Financial Corp OFED US Q4 2017 Earnings Release Q4 17
Merrimack Pharmaceuticals Inc MACK US Annual General Meeting
Miragen Therapeutics Inc MGEN US Aft-mkt Q2 2017 Earnings Release Q2 17 (0.47)
Miragen Therapeutics Inc MGEN US 16:30 Q2 2017 Earnings Call Q2 17