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OVERNIGHT MARKETS AND NEWS
December E-mini S&Ps (ESZ15-0.07%) are down -0.04% and European stocks are down -0.20% ahead of Apple quarterly earnings and before the FOMC begins its 2-day policy meeting. With nearly no chance of a Fed rate hike priced into this month's FOMC meeting, the markets will look to Wednesday's post-FOMC meeting statement to gauge the Fed's assessment of the economy and to when it may begin to raise interest rates. Weakness in energy producers is also pulling the overall market lower with Dec crude (CLZ15-1.32%) down -1.16% to a 1-3/4 month low. European stocks were also pressured by a 3.3% drop in BASF SE after the world's largest chemical maker cut its full-year growth targets due to the slide in crude prices and slowing demand in Brazil and China. Asian stocks settled mostly lower: Japan -0.90%, Hong Kong +0.11%, China +0.14%, Taiwan -0.50%, Australia -0.03%, Singapore -0.99%, South Korea -0.13%, India -0.40%. Asian stocks were undercut by weakness in energy producers and Japanese stocks also closed lower as exporters sold-off when the yen strengthened against the dollar, which reduces the earnings prospects of exporters. China's Shanghai Stock Index erased losses in the last hour of trade and closed higher after defense stocks rallied as a U.S. navy patrol sailed close to islands in the South China Sea claimed by China.
The dollar index (DXY00-0.12%) is down -0.08%. EUR/USD (^EURUSD) is unchanged. USD/JPY (^USDJPY) is down -0.58%.
Dec T-note prices (ZNZ15 +0.05%) are up +1.5 ticks.
ECB Executive Board member Praet said the ECB is looking at ways to lift inflation without "taboos" as "we are in a situation in which the reaching of our objective could be delayed."
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) Sep durable goods orders (expected -1.5% and unch ex-transportation, Aug -2.3% and -0.2% ex-transportation), (2) Aug S&P CaseShiller composite-20 home price index (expected +0.10% m/m and +5.10% y/y, Jul -0.20% m/m and +4.96% y/y), (3) preliminary-Oct Markit services PMI (expected +0.4 to 55.5, Sep -1.0 to 55.1), (4) Oct U.S. consumer confidence from the Conference Board (expected unchanged at 103.0, Sep +1.7 to 103.0), (5) Oct Richmond Fed manufacturing index (expected +2 to -3, Sep -5 to -5), and (6) the first day of the FOMC's 2-day meeting.
There are 43 of the S&P 500 companies that report earnings today with notable reports including: Apple (consensus $1.88), UPS (1.37), Ford (0.47), Baxter (0.29), Merck (0.92), Pfizer (0.50), Comcast (0.80).
U.S. IPO's scheduled to price today: Optex Systems (OPXSD).
Equity conferences during the remainder of this week include: Hart Energy DUG Eagle Ford Conference on Mon-Tue, and Money20/20 Conference on Mon-Wed.
OVERNIGHT U.S. STOCK MOVERS
Ford Motor (F +0.06%) reported Q3 EPS of 45 cents, less than consensus of 47 cents.
Pfizer (PFE +0.32%) reported Q3 EPS of 60 cents, above consensus of 51 cents.
Baxter International (BAX +1.44%) reported Q3 EPS of 41 cents, higher than consensus of 29 cents.
Merck & Co. (MRK +0.06%) reported Q3 EPS of 96 cents, above consensus of 92 cents.
Corning (GLW-1.59%) reported Q3 EPS of 34 cents, below consensus of 35 cents.
Mondelez International (MDLZ +0.58%) rose over 2% in after-hours trading after it was rated a new 'Positive' at Susquehanna with a 12-month price target of $60.
Edwards Lifesciences (EW-1.97%) climbed nearly 6% in after-hours trading after it reported Q3 adjusted EPS of $1.07, higher than consensus of 98 cents, and then raised guidance on fiscal 2015 adjusted EPS to $4.43-$4.53 from a previous estimate of $4.30-$4.40, above consensus of $4.38.
Swift Transportation (SWFT +1.92%) slid nearly 2% in after-hours trading after it reported Q3 EPS of 31 cents, right on consensus, but reported Q3 revenue of $1.06 billion, below consensus of $1.08 billion.
The Cheesecake Factory (CAKE +2.52%) fell over 5% in after-hours trading after it reported adjusted Q3 EPS of 59 cents, better than consensus of 56 cents, but reported Q3 revenue of $526.7 million, less than consensus of $535.5 million.
Hartford Financial (HIG-0.87%) slid over 4% in after-hours trading after it reported Q3 EPS of 86 cents, weaker than consensus of 99 cents.
MicroStrategy (MSTR +4.29%) fell over 11% in after-hours trading after it reported Q3 revenue of $129.5 million, below consensus of $137.8 million.
Rent-A-Center (RCII +0.74%) plunged nearly 20% in after-hours trading after it lowered guidance on fiscal 2015 EPS to $2.00-$2.10 from a September estimate of $2.05-$2.20, below consensus of $2.15.
Marvell Technology (MRVL-1.26%) tumbled 17% in after-hours trading after PricewaterhouseCooper resigned as its external accounting firm.
Gold Resources (GORO-1.06%) fell over 3% in after-hours trading after it cut its 2015 gold production forecast by 6% to 29,600 ounces and cut its silver production estimate by 16% to 2.5 million ounces.
Dec E-mini S&Ps (ESZ15-0.07%) this morning are down -0.75 of a point (-0.04%). Monday's closes: S&P 500 -0.19%, Dow Jones -0.13%, Nasdaq +0.15%. The S&P 500 on Monday closed lower on caution ahead of the Tue/Wed FOMC meeting, the sharp -11.5% decline in U.S. Sep new home sales, and weakness in technology stocks after Apple fell by more than 3%.
Dec 10-year T-notes (ZNZ15 +0.05%) this morning are up +1.5 ticks. TYZ5 +5.50, FVZ5 +2.50. Dec T-notes on Monday settled higher on weakness in stocks and on the sharp decline in U.S. Sep new home sales to a 10-month low.
The dollar index (DXY00-0.12%) this morning is down -0.080 (-0.08%). EUR/USD (^EURUSD) is unch. USD/JPY (^USDJPY) is down -0.70 (-0.58%). Dollar Index -0.266 (-0.27%), EUR/USD +0.0040 (+0.36%), USD/JPY -0.37 (-0.30%). The dollar index on Monday closed lower on expectations the FOMC this week will keep rates unchanged and on strength in EUR/USD which recovered from a 2-1/2 month low and closed higher after the German IFO Oct business confidence fell less than expected.
Dec crude oil (CLZ15-1.32%) this morning is down -51 cents (-1.16%) at a 1-3/4 month low and Dec gasoline (RBZ15-0.34%) is down -0.0001 (-0.01%). CLZ5 -0.87 (-1.95%), RBZ5 -0.0162 (-1.25%). Dec crude oil and gasoline on Monday closed lower with Dec crude at a 1-month low. Crude oil prices closed lower on weak U.S. economic data and the ongoing supply glut as EIA data shows U.S. crude inventories at 476.6 million bbl in the week ended Oct 16, the highest for this time of year in data going back to 1930.
GLOBAL EVENT CALENDAR10/27/2015
Sep durable goods orders expected -1.5% and unch ex transportation, Aug -2.3% and -0.2% ex transportation. Sep capital goods orders non-defense ex-aircraft expected +0.2%, Aug -0.8%.
Aug S&P CaseShiller composite-20 home price index expected +0.10% m/m and +5.10% y/y, Jul -0.20% m/m and +4.96% y/y.
Preliminary Oct Markit services PMI expected +0.4 to 55.5, Sep -1.0 to 55.1. Oct Markit composite PMI, Sep 0.7 to 55.0.
Oct consumer confidence (Conference Board) expected unchanged at 103.0, Sep +1.7 to 103.0.
Oct Richmond Fed manufacturing index expected +2 to -3, Sep -5 to -5.
FOMC begins 2-day policy meeting.
Treasurys 2-year T-note auction postponed due to debt ceiling constraints.