The German Feb IFO business climate rose +0.1 to 106.8, less than expectations of +1.0 to 107.7 but still the highest in 7 months. The Feb IFO current assessment unexpectedly fell -0.4 to 111.3, weaker than expectations of +0.8 to 112.5. The Feb IFO expectations rose +0.5 to 102.5, less than expectations of +1.0 to 103.0.
The UK Feb CBI reported sales slumped -38 to 1, a much bigger decline than expectations of -4 to 35 and the lowest in 15 months.
Equity conferences this week include: JPMorgan High Yield & Leveraged Finance Conference on Mon-Wed, BMO Capital Markets Global Metals & Mining Conference on Mon-Tue, Cantor Fitzgerald 2nd Annual Internet and Technology Conference on Tue, Susquehanna Semi, Storage & Tech Summit on Tue, Credit Suisse Energy Summit on Tue-Wed, RBC Capital Markets Global Healthcare Conference on Tue-Wed, Robert W. Baird Business Solutions Conference on Tue-Wed, Wells Fargo Cyber Security Forum on Wed, Bank of America Merrill Lynch Global Agriculture Conference on Wed-Thu, Auerbach Grayson & Morgan Stanley's Inaugural Frontier Markets Conference on Thu, Gabelli & Company Pump, Valve & Water Systems Symposium on Thu, Gabelli & Company Inaugural Waste & Environmental Services Symposium on Fri.
Boeing (BA +2.97%) was downgraded to 'Sell' from 'Neutral' at Goldman Sachs.
Raytheon (RTN +0.75%) was upgraded to 'Buy' from 'Neutral' at Buckingham.
AerCap (AER +1.42%) reported Q4 adjusted EPS of $1.40, higher than consensus of $1.30.
Colgate-Palmolive (CL +0.04%) was upgraded to 'Buy' from 'Neutral' at Citigroup.
CSX (CSX +0.06%) was initiated with an 'Overweight' at JPMorgan Chase with a price target of $41.
Penn National (PENN -1.80%) was upgraded to 'Buy' from 'Neutral' at BofA/Merrill Lynch.
Honda (HMC +0.42%) announced that Takanobu Ito is stepping down as president and CEO of Honda and Takahiro Hachigo, Honda's managing officer, will take over as president and CEO in June.
CyberArk (CYBR +9.44%) was downgraded to 'Underweight' from 'Neutral' at JPMorgan Chase.
LabCorp (LH +3.36%) was upgraded to 'Overweight' from 'Neutral' at Piper Jaffray.
Antofagasta (ANFGY +2.00%) was downgraded to 'Sell' from 'Neutral' at Goldman Sachs.
DirecTV (DTV +0.06%) was downgraded to 'Hold' from 'Buy' at Brean Capital.
Rio Tinto (RIO +0.67%) was downgraded to 'Neutral' from 'Buy' at UBS.
Exxon Mobil (XOM +0.54%) was awarded a $1.01 billion government contract for aviation turbine fuel.
Mar 10-year T-notes (ZNH15 +0.12%) this morning are up +3.5 ticks. Mar 10-year T-note futures prices on Friday closed lower. Closes: TYH5 -6.00, FVH5 -4.75. Bearish factors included (1) the unexpected increase in the Feb Markit manufacturing PMI, and (2) the rally in the S&P 500 to a new record high, which reduced safe-haven demand for Treasuries.
The dollar index (DXY00 +0.52%) this morning is up +0.529 (+0.56%) at a 1-week high. EUR/USD (^EURUSD) is down -0.0068 (-0.60%). USD/JPY (^USDJPY) is unchanged. The dollar index on Friday fell back from a 1-week high and closed lower: Dollar index -0.095 (-0.10%), EUR/USD +0.00087 (+0.08%), USD/JPY +0.026 (+0.02%). The main bearish factor was a rebound in EUR/USD, which recovered from a 1-week low and closed higher after Eurozone finance ministers reached a deal to extend bailout funds to Greece for four months in return for a commitment on budget targets. The dollar had risen to a 1-week high on bullish factors that included (1) the unexpected increase in the U.S. Feb Markit manufacturing PMI, and (2) early weakness in EUR/USD which fell to a 1-week low after the Eurozone Feb Markit manufacturing PMI was weaker than expected and German Jan producer prices fell more than expected.
Apr WTI crude oil (CLJ15 -3.01%) this morning is down -$1.22 a barrel (-2.40%) at a 1-week low and Apr gasoline (RBJ15 -0.91%) is down -0.0156 (-0.85%). Apr crude and Apr gasoline prices on Friday settled mixed: CLJ5 -1.02 (-1.97%), RBJ5 +0.0049 (+0.27%). The main bearish factor was ample supplies after Wednesday’s EIA data showed U.S. crude inventories at their highest level since weekly EIA data began in 1982. Gasoline closed higher on bullish factors that included (1) the ongoing strike by the United Steelworkers union that represents more than 30,000 oil refinery workers and 13% of U.S. refining output, which may reduce gasoline and distillate production, and (2) frigid weather in the U.S. Northeast that boosted demand for heating fuels and also shuttered two refineries in Pennsylvania because of the sub-zero cold.
|US||0830 ET||Jan Chicago national activity index expected +0.10 to 0.05, Dec -0.05.|
|1000 ET||Jan existing home sales expected -1.8% to 4.95 million, Dec +2.4% to 5.04 million.|
|1030 ET||Feb Dallas Fed manufacturing outlook level of general business activity expected +0.4 to -4.0, Jan -7.9 to -4.4.|
|1100 ET||USDA weekly grain export inspections.|
|GER||0400 ET||German Feb IFO business climate expected +1.0 to 107.7, Jan 106.7. Feb IFO current assessment expected +0.8 to 112.5, Jan 111.7. Feb IFO expectations expected +1.0 to 103.0, Jan 102.0.|
|UK||0600 ET||UK Feb CBI reported sales expected -4 to 35, Jan 39.|
|JPN||1850 ET||Japan Jan PPI services expected +3.6% y/y, Dec +3.6% y/y.|