Morning Call For February 27, 2015

Japan Jan industrial production rose +4.0% m/m, stronger than expectations of +2.7% m/m and the largest increase in 3-1/2 years. Year-over-year, Jan industrial production fell -2.6% y/y, less than expectations of -3.1% y/y.

Japan Jan retail sales fell -1.3% m/m and -2.0% y/y, weaker than expectations of -0.4% m/m and -1.2% y/y.

The German Jan import price index fell -0.8% m/m and -4.4% y/y, less than expectations of -1.1% m/m and -4.6% y/y.

U.S. STOCK PREVIEW

Today’s Q4 GDP report is expected to be revised substantially lower to +2.0% (q/q annualized) from +2.6% in the preliminary report due to weaker trade and inventory figures. Today’s final-Feb U.S. consumer confidence index from the University of Michigan is expected to be revised higher by +0.4 points to 94.0 from the early-Feb level of 93.6. Today’s Feb Chicago PMI is expected to show a decline of -1.4 to 58.0, more than offsetting the +0.6 point increase to 59.4 seen in January. The market is expecting today’s Jan pending home sales report to show a +2.0% m/m increase, recovering some ground after December’s -3.7% decline.

There are 3 of the S&P 500 companies that report earnings today: NRG Energy (consensus $0.54), Pepco (0.20), Leucadia National Corp. Equity conferences during the remainder of this week include: Gabelli & Company Inaugural Waste & Environmental Services Symposium on Fri.

OVERNIGHT U.S. STOCK MOVERS

CBOE Holdings (CBOE -1.63%) was downgraded to 'Neutral' from 'Buy' at BofA/Merrill Lynch.

FedEx (FDX -0.59%) was upgraded to 'Outperform' from 'Neutral' at Credit Suisse.

Universal Health (UHS +3.02%) reported Q4 EPS of $1.71, better than consensus of $1.50.

Southwestern Energy (SWN -5.79%) reported Q4 adjusted EPS of 52 cents, higher than consensus of 50 cents.

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Disclosure: None.

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