Morning Call 10/5

Barchart Morning Call

Barchart.com - 35 minutes ago

OVERNIGHT MARKETS AND NEWS

Dec E-mini S&Ps (ESZ17 +0.03%) this morning are little changed, up +0.01%, ahead of speeches later this morning from Fed Governor Powell and Fed Presidents Harker and Williams. The speech from Fed Governor Powell may be given added scrutiny with reports that he is on President Trump's shortlist of candidates to replace Fed Chair Yellen. European stocks are unchanged as the markets weigh the situation in Spain where the state of Catalonia is trying to secede from Spain and form its own independent republic. Spain's IBEX Stock Index is up 1.15% and is giving a boost to European stocks after Spanish Economy Minister Guindos said that banks in Catalonia have indicated they are open to moving their headquarters elsewhere if the situation in the state worsens. Guindos also said that Catalonia's actions are illegal and independence is out of the question and that Spain has nothing to discuss with the secessionists until rule of law is restored. GBP/USD tumbled -0.49% to a 3-week low on reports that UK Prime Minister May could face a leadership rebellion within her own party with up to 30 Tory lawmakers prepared to sign a letter calling for her resignation. Asian stocks settled mixed: Japan +0.01%, Taiwan +0.47%, Australia -0.01%, Singapore +0.78%, India -0.25%. China, Hong Kong and South Korea are all closed for holidays.

The dollar index (DXY00 +0.16%) is up +0.11%. EUR/USD (^EURUSD) is down -0.13%. USD/JPY (^USDJPY) is down -0.22%.

Dec 10-year T-note prices (ZNZ17 +0.06%) are up +2.5 ticks.

UK Sep new car registrations fell -9.3% y/y to 426,170 and year-to-date are down -3.9% to 2,066.411.

The German Sep Markit construction PMI fell -1.5 to 53.4, the slowest pace of expansion in 8-months.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Sep Challenger job cuts (Aug +5.1% y/y), (2) weekly initial unemployment claims (expected -7,000 to 265,000, previous +12,000 to 272,000) and continuing claims (expected +16,000 to 1.950 million, previous -45,000 to 1.934 million), (3) Aug trade balance (expected -$42.7 billion, Jul -$43.7 billion), (4) Fed Governor Jerome Powell speaks on Treasury markets and Treasury market practices at an event in New York, (5) San Francisco Fed President John Williams (non-voter) delivers keynote speech at the St. Louis Fed’s Community Banking in the 21st Century Research and Policy Conference, (6) Aug factory orders (expected +1.0%, Jul -3.3% and +0.5% ex transportation), (7) Philadelphia Fed President Patrick Harker (voter) speaks at the “Investing in America’s Workforce” conference, (8) Kansas City Fed President Esther George (non-voter) speaks at the “Investing in America’s Workforce” conference, (9) USDA weekly Export Sales.

Notable Russell 1000 earnings reports today include: Costco (consensus $2.02), Constellation Brands (2.17), Global Payments (1.10), Yum China Holdings (0.56).

U.S. IPO's scheduled to price today: Switch (SWCH).

Equity conferences this week: Petaluma Area Chamber of Commerce Business Conference on Fri.

OVERNIGHT U.S. STOCK MOVERS

Microsoft (MSFT +0.58%) was upgraded to 'Buy' from 'Hold' at Canaccord Genuity with a price target of $86.

United Parcel Service (UPS -0.59%) and FedEx (FDX -0.75%) are both down over 2% in pre-market trading after Bloomberg News reported that Amazon.com is currently testing its own delivery service.

Norwegian Cruise Line Holdings Ltd (NCLH +2.28%) jumped 7% in after-hours trading after it was announced that it will replace Level 3 in the S&P 500 before the open of trading on Friday, Oct 13.

Mallinckrodt (MNK -0.61%) was downgraded to 'Hold' from 'Buy' at Canaccord Genuity.

ACADIA Pharmaceuticals (ACAD +0.72%) rallied over 5% in after-hours trading after the FDA granted 'Breakthrough Therapy Designation' to its Pimavanserin for the treatment of hallucinations and delusions associated with dementia-related psychosis.

Zumiez (ZUMZ -1.56%) climbed almost 5% in after-hours trading after it reported September comparable sales were up +9.3%, better than consensus of +2.9%, and then raised guidance on Q3 net sales to $241 million-$243 million from a prior estimate of $236 million-$241 million.

Monsanto (MON +0.05%) was downgraded to 'Neutral' from 'Outperform' at Macquarie.

SeaWorld Entertainment (SEAS +4.60%) rose almost 4% in after-hours trading after Merlin Entertainment is said to have approached SeaWorld on a deal for part of the company.

Matador Resources (MTDR -1.26%) may open lower today after it announced that it had commenced an underwritten public offering of 8.0 million shares of its common stock.

8Point3 Energy Partners LP (CAFD +1.21%) lost almost 2% in after-hours trading after it said it sees Q4 revenue of $12 million-$15 million, the midpoint below consensus of $14.6 million.

ImmunoGen (IMGN +2.35%) dropped 8% in after-hours trading after it announced that it intends to offer 12 million shares of common stock in an underwritten public offering.

MobileIron (MOBL -2.60%) jumped over 9% in after-hours trading after holder Altai Capital reported a 7.63% stake in the company as of Oct 2.

Fairmont Santrol Holdings (FMSA -3.85%) rose 2% in after-hours trading after it was re-initiated an 'Overweight' rating at Keybanc Capital Markets with a price target of $6.50.

MARKET COMMENTS

Dec S&P 500 E-mini stock futures (ESZ17 +0.03%) this morning are up +0.25 points (+0.01%). Wednesday's closes: S&P 500 +0.12%, Dow Jones +0.09%, Nasdaq +0.06%. The S&P 500 on Wednesday posted a new record high and closed higher on the rise in the U.S. Sep ISM non-manufacturing index by +4.5 points to 59.8, stronger than expectations of +0.2 to 55.5 and the fastest pace of expansion in 12 years. Stocks were also supported by increased speculation that President Trump may select Jerome Powell over Kevin Warsh for Fed chairman, which may lead to easier monetary policy as Powell is seen as more dovish than Warsh.

Dec 10-year T-note prices (ZNZ17 +0.06%) this morning are up +2.5 ticks. Wednesday's closes: TYZ7 unch, FVZ7 unch. Dec 10-year T-notes on Wednesday closed little changed. T-note prices were undercut by the stronger-than-expected U.S. Sep ISM non-manufacturing index to a 12-year high and by reduced safe-haven demand with the rally in the S&P 500 to a new record high. T-note prices were supported by speculation that President Trump may be leaning toward Jerome Powell to replace Janet Yellen as Fed Chair, which is seen a supportive for T-notes since Powell is one of the more dovish choices for Fed Chair compared to other candidates.

The dollar index (DXY00 +0.16%) this morning is up +0.103 (+0.11%). EUR/USD (^EURUSD) is down -0.0015 (-0.13%) and USD/JPY (^USDJPY) is down -0.25 (-0.22%). Wednesday's closes: Dollar Index +0.039 (+0.04%), EUR/USD +0.0015 (+0.13%), USD/JPY -0.09 (-0.08%). The dollar index on Wednesday closed little changed. The dollar was supported by the jump in the U.S. Sep ISM non-manufacturing index to a 12-year high and by the increase in 10-year T-note yields, which boosts the dollar's interest rate differentials. The dollar was undercut by increased speculation that President Trump may select Jerome Powell over Kevin Warsh for Fed chairman, which would be negative for the dollar since Powell is seen as more dovish than Warsh.

Nov crude oil (CLX17 +0.34%) this morning is up +9 cents (+0.18%) and Nov gasoline (RBX17 +1.59%) is +0.0215 (+1.36%). Wednesday's closes: Nov WTI crude -0.44 (-0.87%), Nov gasoline +0.0150 (+0.96%). Nov crude oil and gasoline on Wednesday settled mixed. Crude oil prices found support on the -6.02 million bbl decline in EIA crude inventories (a much bigger decline than expectations of -500,000 bbl) and strong foreign demand for U.S. crude after U.S. crude exports rose +33% in the week of Sep 29 to a record 1.98 million bpd. Crude oil prices were undercut by the +0.1% increase in U.S. crude production in the week of Sep 29 to 9.561 million bpd, a new 2-year high, and by the +1.53 million bbl increase in crude supplies at Cushing, OK, delivery point of WTI crude futures.

Metals prices this morning are hogher with Dec gold (GCZ17 +0.29%) +4.3 (+0.34%), Dec silver (SIZ17 +0.28%) +0.071 (+0.43%) and Dec copper (HGZ17 +0.74%) +0.022 (+0.73%). Wednesday's closes: Dec gold +2.2 (+0.17%), Dec silver -0.026(-0.16%), Dec copper -0.0045 (-0.15%). Metals on Wednesday settled mixed. Metals prices found support on increased safe-haven demand for precious metals on political tensions in Spain where the state of Catalonia wants to secede from Spain and form its own independent republic. Metals prices were also boosted by the increase in the U.S. Sep ISM non-manufacturing index to a 12-year high, a sign of economic strength that is positive for industrial metals demand. Metals prices were undercut by the rally in the S&P 500 to a new record high, which reduced the safe-haven demand for precious metals.

GLOBAL EVENT CALENDAR10/05/2017

		Thursday, Oct 5
US	0730 ET	Sep Challenger job cuts, Aug +5.1% y/y.
	0830 ET	Weekly initial unemployment claims expected -7,000 to 265,000, previous +12,000 to 272,000. Weekly continuing claims expected +16,000 to 1.950 million, previous -45,000 to 1.934 million.
	0830 ET	Aug trade balance expected -$42.7 billion, Jul -$43.7 billion.
	0830 ET	USDA weekly Export Sales.
	0910 ET	Fed Governor Jerome Powell speaks on Treasury markets and Treasury market practices at an event in New York.
	0915 ET	San Francisco Fed President John Williams (non-voter) delivers keynote speech at the St. Louis Feds Community Banking in the 21st Century Research and Policy Conference.
	1000 ET	Aug factory orders expected +1.0%, Jul -3.3% and +0.5% ex transportation.
	1000 ET	Philadelphia Fed President Patrick Harker (voter) speaks at the Investing in Americas Workforce conference.
	1100 ET	Treasury announces amount of 3-year T-notes (previous $24 billion), 10-year T-notes (previous $20 billion) and 30-year T-bonds (previous $12 billion) to be auctioned Oct 11-12.
	1630 ET	Kansas City Fed President Esther George (non-voter) speaks at the Investing in Americas Workforce conference.
		Friday, Oct 6
US	0830 ET	Sep non-farm payrolls expected +80,000, Aug +156,000. Sep private payrolls expected +74,000, Aug +165,000. Sep manufacturing payrolls expected +8,000, Aug +36,000. Sep unemployment rate expected unch at 4.4%, Aug +0.1 to 4.4%.
	0830 ET	Sep avg hourly earnings expected +0.3% m/m and +2.5% y/y, Aug +0.1% m/m and +2.5% y/y. Sep avg weekly hours all-employees expected unch at 34.4 hours, Aug -0.1 to 34.4 hours.
	0915 ET	Atlanta Fed President Raphael Bostic (non-voter) speaks at the Investing in Americas Workforce conference.
	1000 ET	Aug wholesale trade sales expected unch m/m, Jul -0.1% m/m. Revised Aug wholesale inventories expected unchanged at +1.0%, prelim-Aug +1.0% m/m.
	1215 ET	New York Fed President William Dudley (voter)will deliver a speech on The Monetary Policy Outlook and the Importance of Higher Education for Economic Mobility at an event in New York.
	1245 ET	Dallas Fed President Robert Kaplan (voter) speaks in a moderated Q&A at an Investing in Americas Workforce conference in Dallas.
	1500 ET	Aug consumer credit expected +$15.54 billion, Jul +$18.499 billion.

U.S. STOCK CALENDAR10/05/2017

Name	Ticker	Time	Description	Period	Estimate
Constellation Brands Inc	STZ US	Bef-mkt	Q2 2018 Earnings Release	Q2 18	2.166
Leucadia National Corp	LUK US	08:30	Investor Meeting
Clorox Co/The	CLX US	09:00	Analyst Day
Constellation Brands Inc	STZ US	10:30	Q2 2018 Earnings Call	Q2 18
Telephone & Data Systems Inc	TDS US		Roadshow - Day 4
United States Cellular Corp	USM US		Roadshow - Day 4
RPM International Inc	RPM US		Annual General Meeting
Global Payments Inc	GPN US		Q3 2017 Earnings Release	Q3 17	1.098
Leucadia National Corp	LUK US		Investor Day
Symantec Corp	SYMC US	12:00	Annual General Meeting
Oracle Corp	ORCL US	14:00	Analyst Meeting
Costco Wholesale Corp	COST US	16:15	Q4 2017 Earnings Release	Q4 17	2.017
Yum China Holdings Inc	YUMC US	16:30	Q3 2017 Earnings Release	Q3 17	0.564
Costco Wholesale Corp	COST US	17:00	Q4 2017 Earnings Call	Q4 17
Yum China Holdings Inc	YUMC US	20:00	Q3 2017 Earnings Call	Q3 17

MORNING CALL 8/15

MORNING CALL

Monday, August 15th, 2016View Older Reports

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OVERNIGHT MARKETS AND NEWS

Sep E-mini S&Ps (ESU16 +0.18%) are up +0.16% at a new record high and European stocks are up +0.27% at a 2-1/2 month high on a +2.44% rally in Chinese stocks to a 7-month high and a +0.52% increase in crude oil prices (CLU16 +0.61%) to a 3-week high. Energy producing stocks are higher as crude oil rallied after Russian Energy Minister Novak said that Russia is open to cooperation with OPEC to help stabilize the oil market. European stocks also received a boost on an upbeat monthly economic report from the Bundesbank that said the fallout from Brexit to German companies appears limited and that German Q3 economic growth is expected to be strong. Asian stocks settled mixed: Japan -0.30%, Hong Kong +0.73%, China +2.44%, Taiwan -0.02%, Australia +0.16%, Singapore -0.01%, South Korea and India closed for holiday. Chinese stocks rallied sharply as real-estate companies surged after stake purchases by China Ever Grande Group fueled optimism of more mergers. Japanese stocks closed lower after Japan Q2 GDP grew less than expected.

The dollar index (DXY00 -0.13%) is down -0.10%. EUR/USD (^EURUSD) is up +0.09%. USD/JPY (^USDJPY) is down -0.23%.

Sep T-note prices (ZNU16 unch) are little changed, up +1 tick.

In its monthly report, the Bundesbank said that the Brexit impact on expectations by German companies has been mild so far and positive company expectations for export activities support solid growth in Q3. The Bundesbank projects manufacturing will contribute more strongly to economic growth in Q3 and that it sees higher investment in equipment and machinery due to above-average capacity utilization.

Japan Q2 GDP rose +0.2% (q/q annualized), weaker than expectations of +0.7% (q/q annualized). The Q2 GDP deflator rose +0.8% y/y, stronger than expectations of +0.7% y/y.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Aug Empire manufacturing index (expected +1.45 to 2.00, Jul -5.46 to 0.55), (2) Aug NAHB housing market index (expected +1 to 60, Jul -1 to 59), (3) USDA weekly grain export inspections, (4) USDA Weekly Crop Progress.

Russell 1000 companies that report earnings today: Sysco Corp (consensus $0.61).

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

Equity conferences this week: Nomura Media, Telecom & Internet Conference on Tue, EnerCom The Oil & Gas Conference on Tue, Wedbush PacGrow Health Care Conference on Tue-Wed, Barclays California MedTools Summit on Wed, Barclays Kohler Utility Mini-Conference on Thu.

OVERNIGHT U.S. STOCK MOVERS

Procter & Gamble (PG +0.36%) was upgraded to 'Buy' from 'Neutral’ at B. Riley with a 12-month target price of $105.

Valient Pharmaceuticals (VRX +1.76%) was upgraded to 'Neutral' from 'Underperform' at Mizuho Securities USA.

Esterline Technologies (ESL -0.25%) was raised to 'Buy' from 'Hold' at Drexel Hamilton LLC with a 12-month target price of $86.

Patheon NV (PTHN +4.41%) was rated a new 'Overweight' at Piper Jaffray with a 12-month target price of $32.50.

Equity One (EQY +0.22%) was downgraded to 'Hold' from 'Buy' at Stifel.

Cypress Energy Partners LP (CELP -0.40%) was downgraded to 'Market Perform' from 'Outperform' at Raymond James.

Lennox International (LII -0.32%) was downgraded too 'Neutral' from 'Positive' at Susquehanna.

Channel Advisor reports that Amazon.com (AMZN +0.17%) July comparable sales were up +6.4% versus +11.6% in June and Ebay (EBAY -0.99%) comparable sales were up +3.5% versus +3.8% in June.

Badger Meter (BMI +0.67%) slid over 5% in after-hours trading after the company announced that its review of options to enhance shareholder value had been completed and that it will boost the dividend by 15% and increase the number of shares outstanding through a 2 for 1 stock split.

ACADIA Pharmaceuticals (ACAD -1.57%) gained over 1% in after-hours trading after Baker Bros. Advisors disclosed a 1.3 million share purchase of ACADIA stock on August 10 to increase its stake in the company to 21.56%.

Kingold Jewelry (KGJI +1.99%) catapulted higher by over 40% in after-hours trading after it reported Q2 EPS of 30 cents versus a gain of 1 cent y/y. Kingold reported Q2 net sales of $390.3 million, up +56.5% y/y, and the CEO cited increased gold demand in China and a "quick rebound" in gold prices.

MARKET COMMENTS

Sep E-mini S&Ps (ESU16 +0.18%) this morning are up +3.50 points (+0.16%) at a new all-time nearest-futures high. Friday's closes: S&P 500 -0.08%, Dow Jones -0.20%, Nasdaq +0.08%. The S&P 500 on Friday closed lower on the weak U.S. Jul retail sales report (unchanged and -0.3% ex autos, weaker than expectations of +0.4% and +0.1% ex autos) and the weaker-than-expected +0.4-point increase in Aug University of Michigan U.S. consumer sentiment index to 90.4 (vs expectations of +1.5 to 91.5).

Sep 10-year T-notes (ZNU16 unch) this morning are up +1 tick. Friday's closes: TYU6 +15.50, FVU6 +8.50. Sep T-notes on Friday closed higher on the weaker than weaker-than-expected U.S. retail sales, consumer sentiment, and PPI reports, which may further delay a Fed rate hike. T-notes were also boosted by global growth concerns after China July industrial production was weaker-than-expected and China July aggregate financing, the broadest measure of credit growth, rose at the slowest pace in 2 years.

The dollar index (DXY00 -0.13%) this morning is down -0.097 (-0.10%). EUR/USD (^EURUSD) is up +0.0010 (+0.09%). USD/JPY (^USDJPY) is down-0.23 (-0.23%). Friday's closes: Dollar index -0.135 (-0.14%), EUR/USD +0.0025 (+0.22%), USD/JPY -0.66 (-0.65%). The dollar index on Friday fell to a 1-week low and closed lower on the weaker-than-expected U.S. retail sales, consumer sentiment, and PPI reports that may further delay a Fed rate hike. In addition, EUR/USD rose to a 1-week high after Eurozone Jun industrial production rose +0.6% m/m, stronger than expectations of +0.5% m/m.

Sep WTI crude oil (CLU16 +0.61%) this morning is up +23 cents (+0.52%) at a 3-week high and Sep gasoline (RBU16 -0.53%) is down -0.0077 (-0.56%). Friday's closes: CLU6 +1.20 (+2.76%), RBU6 +0.0093 (+0.68%). Sep crude and gasoline on Friday closed higher with Sep crude at a 2-1/2 week high. Crude oil prices were boosted by the slide in the dollar index to a 1-week low and by reduced oil output from Nigeria, Africa's biggest crude producer, after the country's oil minister said that Nigerian crude output will be no more than 1.5 million bpd this year due to damage to oil infrastructure from militant attacks on oil installations. Crude oil prices were undercut by the Baker Hughes report showing that U.S. active oil rigs rose for a seventh week by 15 rigs to a 5-1/2 month high of 396 rigs.

GLOBAL EVENT CALENDAR08/15/2016

		Monday, Aug 15
US	0830 ET	Aug Empire manufacturing survey business conditions expected +1.45 to 2.00, Jul -5.46 to 0.55.
	1000 ET	Aug NAHB housing market index expected +1 to 60, Jul -1 to 59.
	1100 ET	USDA weekly grain export inspections.
	1600 ET	USDA Weekly Crop Progress.
		Tuesday, Aug 16
US	0830 ET	Jul housing starts expected -0.8% to 1.180 million, Jun +4.8% to 1.189 million. Jul building permits expected +0.6% to 1.160 million, Jun +1.5% to 1.153 million.
	0830 ET	Jul CPI expected unch m/m and +0.9% y/y, Jun +0.2% m/m and +1.0% y/y. Jul CPI ex food & energy expected +0.2% m/m and +2.3% y/y, Jun +0.2% m/m and +2.3% y/y.
	0915 ET	Jul industrial production expected +0.3%, Jun +0.6%. Jul manufacturing production expected +0.2%, Jun +0.4%. Jul capacity utilization expected +0.2 to 75.6%, Jun +0.5 to 75.4%.
	1230 ET	Atlanta Fed President Dennis Lockhart (non-voter) speaks to the Rotary Club of Knoxville, TN.
UK	0430 ET	UK Jul CPI expected -0.1% m/m and +0.5% y/y, Jun +0.2% m/m and +0.5% y/y. Jul core CPI expected +1.4% y/y, Jun +1.4% y/y.
	0430 ET	UK Jul RPI expected -0.1% m/m and +1.6% y/y, Jun +0.4% m/m and +1.6% y/y. Jul RPI ex-mortgage interest payments expected +1.7% y/y, Jun +1.7% y/y.
	0430 ET	UK Jul PPI input prices expected +1.0% m/m and +2.0% y/y, Jun +1.8% m/m and -0.5% y/y.
	0430 ET	UK Jul PPI output prices expected +0.2% m/m and unch y/y, Jun +0.2% m/m and -0.4% y/y. Jul PPI output core expected +0.1% m/m and +0.8% y/y, Jun +0.1% m/m and +0.7% y/y.
GER	0500 ET	German Aug ZEW survey expectations of economic growth expected +9.3 to 2.5, Jul -26.0 to -6.8. Aug ZEW current situation expected +0.3 to 50.1, Jul -4.7 to 49.8.

U.S. STOCK CALENDAR08/15/2016

Company	Ticker	Time	Event Description	Period	Estimate
Sysco Corp	SYY	Bef-mkt	Q4 2016 Earnings Release	Q4 2016	0.606
Sysco Corp	SYY	10:00	Q4 2016 Earnings Call	Q4 2016
Microchip Technology Inc	MCHP	12:00	Annual General Meeting	Y 2016
American Express Co	AXP		Credit-card Charge-offs and Delinquencies
JPMorgan Chase & Co	JPM		Credit-card Charge-offs and Delinquencies
Bank of America Corp	BAC		Credit-card Charge-offs and Delinquencies
Citigroup Inc	C		Credit-card Charge-offs and Delinquencies
Capital One Financial Corp	COF		Credit-card Charge-offs and Delinquencies
Alliance Data Systems Corp	ADS		July 2016 Sales and Revenue Release	2016
Alliance Data Systems Corp	ADS		Credit-card Charge-offs and Delinquencies
Discover Financial Services	DFS		Credit-card Charge-offs and Delinquencies
Synchrony Financial	SYF		Credit-card Charge-offs and Delinquencies

MORNING ALL 1/6

MORNING CALL

Wednesday, January 6th, 2016View Older Reports

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OVERNIGHT MARKETS AND NEWS

March E-mini S&Ps (ESH16 -1.52%) are down -1.50% at a 2-1/2 month low and European stocks are down -1.38% at a 3-month low as global stocks sell-off after China weakened its currency and heightened concerns about an economic slowdown. The yuan plunged to a 4-3/4 year low against the dollar after the PBOC reduced its daily reference rate for the yuan for the seventh day in a row. This raises the risks that other nations may need to lower their exchange rates to remain competitive with China. Technology stocks are also moving lower, led by a 2.8% decline in Apple in pre-market trading, after the Nikkei Asian Review reported that Apple would reduce Q1 output of its latest iPhones by about 30%. Geopolitical concerns also weighed on equity markets after North Korea said it successfully tested a hydrogen bomb. Asian stocks settled mostly lower: Japan -0.99%, Hong Kong -0.98%, China +2.25%, Taiwan -1.05%, Australia -1.18%, Singapore -1.06%, South Korea -0.65%, India -0.68%. Japan's Nikkei Stock Index fell to a 2-1/2 month low, but China's Shanghai Composite closed higher on speculation that Chinese regulators will extend a ban on stock sales by major shareholders that is due to expire Friday.

The dollar index (DXY00 -0.06%) is down -0.05%. EUR/USD (^EURUSD) is unchanged. USD/JPY (^USDJPY) is down -0.60% at a 2-1/2 month low.

Mar T-note prices (ZNH16 +0.33%) are up +13.5 ticks at a 3-week high as the slide in global stocks boosts safe-haven demand for government debt.

The PBOC cut its daily reference rate on the yuan by 0.22 percent to 6.5314 per dollar, which sent the yuan falling to 6.5616 per dollar, a 4-3/4 year low.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly MBA mortgage applications (previous +7.3% with purchase sub-index +4.1% and refi sub-index +10.8%), (2) Dec ADP employment (expected +195,000, Nov +217,000), (3) Nov U.S. trade deficit (expected -$44.00 billion, Oct -$43.89 billion), (4) final-Dec Markit U.S. services PMI (expected +0.3 to 54.0, prelim-Dec -2.4 to 53.7), (5) Dec ISM non-manufacturing index (expected +0.1 to 56.0, Nov -3.2 to 55.9), (6) Nov factory orders (expected -0.2%, Oct +1.5% and +0.2% ex transportation), and (7) minutes of the Dec 15-16 FOMC meeting.

There are 3 of the Russell 3000 companies that report earnings today: Monsanto (consensus $-0.23), RPM Intl (0.57), MSC Industrial Direct (0.87).

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

Equity conferences this week: Goldman Sachs Global Energy Conference on Wed, and Citi Global Internet, Media & Telecommunications Conference on Wed-Thu.

OVERNIGHT U.S. STOCK MOVERS

Apple (AAPL -2.51%) fell nearly 3% in pe-market trading after the Nikkei Asian Review reported that Apple would reduce Q1 output of its latest iPhones by about 30%.

Freeport-McMoRan (FCX +2.44%) tumbled over 4% in pre-market trading after Moody's Investors Service placed the company's debt under review for possible downgrade.

Oracle (ORCL -0.31%) was upgraded to 'Buy' from 'Hold' at Evercore ISI.

Landec Corp. (LNDC -0.34%) reported Q2 EPS of 7 cents, higher than consensus of 6 cents, although Q2 revenue of $140.4 million was below consensus of $143.2 million.

Pioneer Natural Resources (PXD +0.66%) fell over 2% in after-hours trading after it announced an offering of $10.5 million of common stock.

Gilead (GILD +1.28%) said it terminated a Phase 2 study of its Simtuzumab in patients with Idiopathic Pulmonary Fibrosis saying the study showed no evidence of a treatment benefit.

Sonic Corp. (SONC -0.10%) climbed over 1% in after-hours trading after it reported Q1 adjusted EPS of 24 cents, better than consensus of 23 cents.

NuVasive (NUVA +2.28%) said it will acquire Ellipse Technologies MGEC in a transaction valued at $410 million.

Acadia (ACAD -0.46%) slid 4% in after-hours trading after it proposed a $300 million secondary offering of stock.

Sirius XM Holdings (SIRI -1.27%) rose 1% in after-hours trading after the company said it added 2.3 million new subscriptions in 2015, more than expectations of 2.0 million.

Epizyme (EPZM -1.05%) slumped 10% in after-hours trading after it proposed an offering of $120 million in stock.

Conatus Pharmaceuticals (CNAT -2.05%) surged over 15% in after-hours trading after it said its Emricasan drug in a Phase 2 liver cirrhosis study showed significant reductions in liver biomarkers versus a placebo after 3 months of treatment.

MARKET COMMENTS

Mar E-mini S&Ps (ESH16 -1.52%) this morning are down -30.25 points (-1.50%) at a 2-1/2 month low. Tuesday's closes: S&P 500 +0.20%, Dow Jones +0.06%, Nasdaq -0.30%. The S&P 500 index on Tuesday closed higher on strength in health-care companies and consumer staples stocks. Stock prices were undercut by carryover weakness from a -0.26% decline in China's Shanghai Composite to a 2-1/2 month low and by weakness in energy producers after crude oil fell to a 2-week low.

Mar 10-year T-notes (ZNH16 +0.33%) this morning are up +13.5 ticks at a 3-week high. Tuesday's closes: TYH6 +3.00, FVH6 +2.50. Mar T-notes on Tuesday closed higher on (1) carryover support from a rally in German bunds to a 1-1/2 week high after weaker-than-expected Eurozone Dec CPI bolstered speculation that the ECB may need to expand QE, and (2) the slump in China's Shanghai Composite to a 2-1/2 month low, which fueled ideas that the Fed might have to delay the next rate hike if the turmoil gets worse.

The dollar index (DXY00 -0.06%) this morning is down -0.048 (-0.05%). EUR/USD (^EURUSD) is unch. USD/JPY (^USDJPY) is down -0.71 (-0.60%) at a 2-1/2 month low. Tuesday's closes: Dollar Index +0.535 (+0.54%), EUR/USD -0.0083 (-0.77%), USD/JPY -0.38 (-0.32%). The dollar index on Tuesday rallied to a 1-month high and closed higher on weakness in EUR/USD which fell to a 1-month low after Eurozone Dec CPI rose less than expected, which may prompt the ECB to boost stimulus measures. The dollar was also boosted by the fall in crude oil to a 2-week low, which fueled a sell-off in commodity currencies as the Canadian dollar plummeted to a 12-1/3 year low against the dollar.

Feb crude oil (CLG16 -2.84%) this morning is down -90 cents (12.50%) at a 2-week low and Feb gasoline (RBG16 -4.02%) is down -0.0437 (-3.48%) at a 2-week low. Tuesday's closes: CLG6 -0.62 (-1.69%), RBG6 -0.0411 (-3.18%). Feb crude and gasoline on Tuesday closed lower with Feb crude at a 2-week low. Crude oil prices were undercut by the rally in the dollar index to a 1-month high and by expectations that Wednesday's weekly EIA inventory report will show that crude oil supplies rose +1.0 million bbl, gasoline stockpiles climbed +2.0 million bbl, and supplies at Cushing rose +700,000 bbl.

GLOBAL EVENT CALENDAR01/06/2016

US	0700 ET	Weekly MBA mortgage applications, previous +7.3% with purchase sub-index +4.1% and refi sub-index +10.8%.
	0815 ET	Dec ADP employment expected +195,000, Nov +217,000.
	0830 ET	Nov trade balance expected -$44.00 billion, Oct -$43.89 billion.
	0945 ET	Final-Dec Markit U.S. services PMI expected +0.3 to 54.0, prelim-Dec -2.4 to 53.7. Final-Dec Markit composite PMI, preliminary -2.4 to 53.5.
	1000 ET	Dec ISM non-manufacturing index expected +0.1 to 56.0, Nov -3.2 to 55.9.
	1000 ET	Nov factory orders expected -0.2%, Oct +1.5% and +0.2% ex transportation
	1030 ET	EIA Weekly Petroleum Status Report.
	1400 ET	Minutes of the Dec 15-16 FOMC meeting.
GER	0355 ET	Revised German Dec Markit services PMI, preliminary -0.2 to 55.4.
EUR	0400 ET	Revised Eurozone Dec Markit composite PMI, preliminary -0.2 to 54.0.
	0500 ET	Eurozone Nov PPI expected -0.2% m/m and -3.2% y/y, Oct -0.3% m/m and -3.1% y/y.
UK	0430 ET	UK Dec Markit/CIPS services PMI expected -0.3 to 55.6, Nov 55.9.

U.S. STOCK CALENDAR01/06/2016

Company	Ticker	Time	Event Description	Period	Estimate
RPM International Inc	RPM US	Bef-mkt	Q2 2016 Earnings Release	Q2 2016	0.568
MSC Industrial Direct Co Inc	MSM US	7:00	Q1 2016 Earnings Release	Q1 2016	0.873
Monsanto Co	MON US	8:00	Q1 2016 Earnings Release	Q1 2016	-0.231
MSC Industrial Direct Co Inc	MSM US	8:30	Q1 2016 Earnings Call	Q1 2016
Monsanto Co	MON US	9:30	Q1 2016 Earnings Call	Q1 2016
RPM International Inc	RPM US	10:00	Q2 2016 Earnings Call	Q2 2016
Acuity Brands Inc	AYI US	11:00	Annual General Meeting	Y 2016
Costco Wholesale Corp	COST US	21:00	December 2015 Sales and Revenue Release	2015
AutoNation Inc	AN US		December 2015 Sales and Revenue Release	2015