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OVERNIGHT MARKETS AND NEWS
March E-mini S&Ps (ESH16-0.04%) are down -0.13% and European stocks are down -0.47% on Chinese economic concerns after the yuan fell to a 1-week low against the dollar when the PBOC cut its daily reference rate for the yuan by -17 bp, the most in 6 weeks. That also undercut Chinese stock prices and sent commodity prices lower. European stocks were also pressured by a nearly 4% decline in BHP Billiton after the company cut its dividend more than expected, and by a 6% fall in Standard Chartered after it reported 2015 revenue of $15.4 billion, less than expectations of $15.9 billion, and said its loan impairments almost doubled to the highest in its history at $4 billion from $2.1 billion in 2014. Another negative or European stock prices was the larger-than-expected decline in German Fed IFO business sentiment to the lowest in 14 months. Asian stocks settled mostly lower: Japan -0.37%, Hong Kong -0.25%, China -0.81%, Taiwan +0.10%, Australia -0.43%, Singapore +0.43%, South Korea +0.03%, India -1.59%.
The dollar index (DXY00 +0.09%) is up +0.13%. EUR/USD (^EURUSD) is down -0.32% at a 2-1/2 week low after the bigger-than-expected decline in the German Feb IFO business sentiment bolsters speculation the ECB will expand stimulus measures when it meets next month. USD/JPY (^USDJPY) is down-0.74% at a 1-week low as the weakness in global equity markets boosts the safe-haven demand for the yen.
Mar T-note prices (ZNH16-0.10%) are down -3.5 ticks.
The German Feb IFO business climate fell -1.6 to 105.7, weaker than expectations of -0.5 to 106.8 and the lowest in 14 months.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) Dec S&P/CaseShiller composite-20 home price index (expected +0.9% m/m and +5.8% y/y, Nov +0.94% m/m and +5.83% y/y), (2) Conference Board's Feb U.S. consumer confidence index (expected -0.9 to 97.2, Jan +1.8 to 98.1), (3) Feb Richmond Fed manufacturing index (expected unch at 2, Jan -4 to 2), (3) Jan existing home sales (expected -2.4% to 5.33 million, Dec +14.7% to 5.46 million), (4) the Treasury's auction of $26 billion of 2-year T-notes, and (5) Fed Vice Chair Stanley Fischer's speech on developments in monetary policy at an event in Houston, TX.
There are 11 of the S&P 500 companies that report earnings today: Home Depot (consensus $1.10), Macy's (1.89), Frontier Communications (-0.03), Ecolab (1.24), JM Smucker (1.62), Scripps Networks (1.01), Edison Int'l (0.60), Extra Space Storage (0.87), First Solar (0.78), Verisk Analytics (0.74), Expeditors International (0.60).
U.S. IPO's scheduled to price today: Silver Run Acquisition (SRAQU).
Equity conferences during the remainder of this week include: Credit Suisse Energy Summit on Tue, Jefferies Media & Communications Conference on Tue-Wed, RBC Capital Markets Health Care Conference on Tue-Wed, IHS Energy CERAWeek Conference on Tue-Thu, Wells Fargo Bank Investors Forum on Wed, Cantor Fitzgerald Internet & Technology Conference on Thu, Gabelli & Company Pump, Valve and Water Systems Symposium on Thu.
OVERNIGHT U.S. STOCK MOVERS
Home Depot (HD +0.95%) climbed nearly 1% in pre-market trading after it reported Q4 EPS of $1.17, higher than consensus of $1.10.
SolarCity (SCTY +1.38%) slid over 2% in pre-market trading after JPMorgan Chase downgraded it to 'Neutral' from 'Overweight.'
Twitter (TWTR-0.05%) advanced over 1% in pre-market trading after it was upgraded by Raymond James to 'Outperform' from 'Market Perform.'
Thermo Fisher Scientific (TMO +0.98%) said it will offer the first test kits available in the U.S. to enable serological detection of the Zika virus in research applications.
McDermott International (MDR +4.94%) reported Q4 revenue of $667.4 million, well below consensus of $757.9 million.
Tenet Healthcare (THC +7.05%) reported Q4 adjusted EPS of 35 cents, higher than consensus of 34 cents.
Alliant Energy (LNT +1.01%) reported Q4 adjusted EPS of 32 cents, weaker than consensus of 43 cents.
Chegg (CHGG +2.69%) slumped over 20% in after-hours trading after it lowered guidance on fiscal 2016 GAAP revenue to $230 million-$250 million, below consensus of $281.8 million.
Texas Roadhouse (TXRH +0.54%) climbed 3% in after-hours trading after it reported Q4 EPS of 32 cents, better than consensus of 30 cents.
Motorola Solutions (MSI +1.14%) raised guidance on fiscal 2016 adjusted EPS continuing operations to $4.45-$4.65, well above consensus of $4.04.
Valeant Pharmaceuticals (VRX-10.67%) sank over 8% in after-hours trading after the WSJ reported that company said it will restate earnings from late 2014 into early 2015 after an internal review showed discrepancies with sales of its drugs to Philidor RX Services.
Fitbit (FIT +5.90%) plunged 18% in pre-market trading after it lowered guidance on Q1 adjusted EPS to breakeven to 2 cents, well below consensus of 23 cents.
BHP Billiton Ltd. (BHP +5.46%) cut its first-half dividend to 16 cents from 62 cents a year earlier, a bigger cut than expectations of a cut to 31 cents.
Huron Consulting Group (HURN-2.94%) lowered guidance on fiscal 2016 adjusted EPS to $3.20-$3.40, below consensus of $3.69.
Mar E-mini S&Ps (ESH16-0.04%) this morning are down -2.50 points (-0.13%). Monday's closes: S&P 500 +1.45%, Dow Jones +1.40%, Nasdaq +1.61%. The S&P 500 on Monday climbed to a 3-week high and settled higher on carryover support from a +2.35% rally in the Shanghai Composite to a 4-week high, the 5% surge in crude oil prices, which boosted energy producers and energy service stocks, and strength in mining and raw-material producing stocks after copper prices climbed to a 2-week high.
Mar 10-year T-notes (ZNH16-0.10%) this morning are down -3.5 ticks. Monday's closes: TYH6 -4.00, FVH6 -3.25. Mar T-notes on Monday closed lower on reduced safe-haven demand after the S&P 500 rallied to a 3-week high and on supply pressures as the Treasury auctions $101 billion of T-notes this week starting with Tuesday's auction of $26 billion in 2-year T-notes.
The dollar index (DXY00 +0.09%) this morning is up +0.122 (+0.13%). EUR/USD (^EURUSD) is down -0.0035 (-0.32%) at a 2-1/2 week low. USD/JPY (^USDJPY) is down -0.83 (-0.74%) at a 1-week low. Monday's closes: Dollar Index +0.779 (+0.81%), EUR/USD -0.0100 (-0.90%), USD/JPY +0.29 (+0.26%). The dollar index on Monday rallied to a 2-week high and closed higher on (1) the plunge in GBP/USD to a 6-3/4 year low after a split in the UK's ruling party over European Union membership increases the chance that the UK leaves the EU in a June referendum, and (2) weakness in EUR/USD which fell to a 2-week low after weaker-than-expected Eurozone PMI data increases the chance for expanded ECB stimulus.
Apr WTI crude (CLJ16 +0.12%) this morning is down -13 cents (-0.39%) and Apr gasoline (RBJ16 +0.59%) is up +0.0007 (+0.06%). Monday's closes: CLJ6 +1.64 (+5.17%), RBJ6 +0.0451 (+3.74%). Apr crude and gasoline on Monday closed sharply higher on the rally in the S&P 500 to a 3-week high and on speculation that OPEC may be nearer to cutting production after Saudi Oil Minister Ali al-Naimi said that last week's agreement between Saudi Arabia, Russia, Qatar and Venezuela to freeze output at current levels is the "beginning of a process" that could require "other steps to stabilize and improve the market."
GLOBAL EVENT CALENDAR02/23/2016
Dec S&P/CaseShiller composite-20 home price index expected +0.9% m/m and +5.8% y/y, Nov +0.94% m/m and +5.83% y/y.
Feb consumer confidence (Conference Board) expected -0.9 to 97.2, Jan +1.8 to 98.1.
Feb Richmond Fed manufacturing index expected unch at 2, Jan -4 to 2.
Jan existing home sales expected -2.4% to 5.33 million, Dec +14.7% to 5.46 million.
Treasury auctions $26 billion of 2-year T-notes.
USDA Jan Cold Storage.
Fed Vice Chair Stanley Fischer speaks on developments in monetary policy at an event in Houston, TX.
Revised German Q4 GDP, previous +0.3% q/q and +2.1% (nsa).
German Feb IFO business climate expected -0.5 to 106.8, Jan 107.3. Feb IFO current assessment expected -0.5 to 112.0, Jan 112.5. Feb IFO expectations expected -0.8 to 101.6, 102.4.
Japan Jan PPI services expected +0.3% y/y, Dec +0.4% y/y.
China Feb Westpac-MNI consumer sentiment, Jan 114.9.