Morning Call 9/29

Barchart Morning Call

Barchart.com - Fri Sep 29, 6:34AM CDT

OVERNIGHT MARKETS AND NEWS

Dec E-mini S&Ps (ESZ17 -0.05%) this morning are little changed, down -0.03%, ahead of U.S. economic data later this morning on Aug personal spending and income and the Aug core PCE deflator, the Fed's preferred gauge of inflation. European stocks are up +0.31% at a 3-month high on strength in the European economy after German unemployment in Sep unexpectedly fell to a record low. Also, inflation in the Eurozone rose at a slower-than-expected pace this month, which may prompt the ECB to delay tapering of its bond purchases. Asian stocks settled mixed: Japan -0.03%, Hong Kong +0.48%, China +0.28%, Taiwan _0.33%, Australia +0.20%, Singapore -0.22%, South Korea +0.77%, India unchanged. China's Shanghai Composite climbed to a 1-week high ahead of next week's Golden Week holidays, which will close the Chinese markets for the entire week. Japanese deflation concerns eased a bit after the Japan Aug national CPI rose a more than expected +0.7% y/y, the fastest pace of increase in 2-1/3 years.

The dollar index (DXY00 -0.02%) is down -0.03%. EUR/USD (^EURUSD) is up +0.24%. USD/JPY (^USDJPY) is up +0.10%.

Dec 10-year T-note prices (ZNZ17 -0.05%) are down -0.5 of a tick.

The German Sep unemployment change fell -23,000 to 2.506 million, stronger than expectations of -5,000. The Sep unemployment rate unexpectedly fell -0.1 to 5.6%, stronger than expectations of no change at 5.7% and the lowest since German reunification in 1990.

The Eurozone Sep CPI estimate rose +1.5% y/y, weaker than expectations of +1.6% y/y. The Sep core CPI rose +1.1% y/y, weaker than expectations of +1.2% y/y.

The Japan Aug jobless rate was unch at 2.8%, right on expectations. The Aug job-to-applicant ratio was unch at 1.52, weaker than expectations of +0.01 to 1.53.

Japan Aug national CPI rose +0.7% y/y, stronger than expectations of +0.6% y/y and the fastest pace of increase in 2-1/3 years. Aug national CPI ex fresh food rose +0.7% y/y, right on expectations. Aug national CPI ex fresh food & energy rose +0.2% y/y, right on expectations and the biggest increase in 7 months.

Japan Aug industrial production rose +2.1% m/m, stronger than expectations of +1.8% m/m.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Aug personal spending (expected +0.1%, Jul +0.3%) and Aug personal income (expected +0.2%, Jul +0.4%), (2) Aug PCE deflator (expected +0.3% m/m and +1.5% y/y, Jul +0.1% m/m and +1.4% y/y) and Aug core PCE deflator (expected +0.2% and +1.4% y/y, Jul +0.1% m/m and +1.4% y/y), (3) Sep Chicago PMI (expected -0.2to 58.7, Aug unch at 58.9), (4) final-Sep University of Michigan U.S. consumer sentiment index (expected unch at 95.3, prelim-Sep -1.5 to 95.3), (5) Philadelphia Fed President Patrick Harker (voter) speaks at an event titled: The Impact on Consumers, Banking, and Regulatory Policy, (6) USDA Q3 Quarterly Grain Stocks.

Notable Russell 1000 earnings reports today include: none.

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

Equity conferences this week: none.

OVERNIGHT U.S. STOCK MOVERS

Louisiana-Pacific (LPX +0.07%) was downgraded to 'Underperform' from 'Market Perform' at BMO Capital Markets.

Altice (ATUS -3.05%) was initiated with a recommendation of 'Buy' at Redburn with a price target of $35.27.

Mastercard (MA +0.38%) was initiated with a recommendation of 'Overweight' at Cantor Fitzgerald with a 12-month target price of $165.

Vertex Pharmaceuticals (VRTX +0.37%) was initiated with a recommendation of 'Buy' at BTIG LLC with a 12-month target price of $200.

WR Grace ({=GRA was initiated with a recommendation of 'Buy' at Loop Capital Markets with a 12-month target price of $81.

Tyson Foods ({=TSN rallied over 5% in after-hours trading after it raised guidance on its fiscal 2017 adjusted EPS to $5.20-$5.30 from a prior view of $4.95-$5.05, citing better-than-expected earnings in the beef segment.

Cabot Microelectronics ({=CCMP was initiated with a recommendation of 'Buy' at Loop Capital Markets with a 12-month target price of $94.

KB Home ({=KBH gained over 1% in after-hours trading after it reported Q3 revenue of $1.14 billion, above consensus of $1.11 billion.

Nexstar Media Group (NXST +1.06%) slid 1% in after-hours trading after a block of 641,000 shares of Nexstar was offered at $61 a share via Raymond James, a -1.93% discount to Thursday's closing price.

Hilton Worldwide Holdings (HLT +0.36%) lost almost 1% in after-hours trading after it announced that it had commenced a secondary offering of 14.61 million shares of its common stock.

Smart Global Holdings (SGH +4.90%) jumped almost 7% in after-hours trading after it reported Q4 net sales of $223 million, better than consensus of $210.6 million.

Zynerba Pharmaceuticals (ZYNE +52.50%) rallied nearly 6% in after-hours trading after it was upgraded to 'Overweight' from 'Neutral' at Piper Jaffray with a target price of $16.

Marinus Pharmaceuticals (MRNS -4.77%) rose over 3% in after-hours trading after Bain Capital Life Sciences Fund reported a 15.9% passive stake in the company.

Aehr Test Systems (AEHR +11.04%) jumped over 15% in after-hours trading after it reported Q1 revenue of $6.97 million, better than expectations of $6.75 million.

MARKET COMMENTS

Dec S&P 500 E-mini stock futures (ESZ17 -0.05%) this morning are doen -0.75 points (-0.03%). Thursday's closes: S&P 500 +0.12%, Dow Jones +0.18%, Nasdaq -0.08%. The S&P 500 on Thursday closed higher on the unexpected upward revision to U.S. Q2 GDP to 3.1% from +3.0%, strongest pace of growth since Q1 2015, and on this week's increased optimism that Republicans may be able to cut corporate taxes. Energy stocks were undercut by the -1.11% sell-off in crude oil prices.

Dec 10-year T-note prices (ZNZ17 -0.05%) this morning are down -0.5 of a tick. Thursday's closes: TYZ7 +3.50, FVZ7 +3.25. Dec 10-year T-notes on Thursday recovered from a 2-1/2 month low and closed higher on some short-covering due to strong demand for the Treasury's $28 billion auction of 7-year T-notes that had a bid-to-cover ratio of 2.70, above the 12-auction average of 2.53. T-notes were undercut by the unexpected upward revision in U.S. Q2 GDP to 3.1% from 3.0% and by increased inflation expectations after the 10-year T-note breakeven inflation rate rose to a 4-1/2 month high.

The dollar index (DXY00 -0.02%) this morning is down -0.024 (-0.03%). EUR/USD (^EURUSD) is up +0.0028 (+0.24%) and USD/JPY (^USDJPY) is up +0.11 (+0.10%). Thursday's closes: Dollar Index -0.276 (-0.30), EUR/USD +0.0041 (+0.35%), USD/JPY -0.50 (-0.44%). The dollar index on Thursday closed lower on strength in EUR/USD after Eurozone Sep economic confidence rose +1.1 to 113.0, a 10-1/4 year high. The dollar was also undercut by the decline in T-note yields, which undercut the dollar's interest rate differentials.

Nov crude oil (CLX17 -0.12%) this morning is up +4 cents (+0.08%) and Nov gasoline (RBX17 -0.27%) is +0.0001 (+0.01%). Thursday's closes: Nov WTI crude -0.5 (-1.11%), Nov gasoline -0.0072 (-0.44%). Nov crude oil and gasoline on Thursday closed lower on the decline in the crack spread to a 1-month low, which may curb refinery demand for crude to refine into gasoline, and on negative carry-over from Wednesday's EIA data that showed U.S. crude production last week rose to a 2-year high.

Metals prices this morning are mixed with Dec gold (GCZ17 +0.16%) +3.3 (+0.26%), Dec silver (SIZ17 +0.11%) +0.043 (+0.26%) and Dec copper (HGZ17 -0.50%) -0.013 (-0.44%). Thursday's closes: Dec gold -13.9 (-1.07%), Dec silver -0.056(-0.33%), Dec copper +0.0105 (+0.36%). Metals on Thursday closed higher on a weaker dollar, the upward revision to U.S. Q2 GDP to +3.1% from +3.0% that was positive for industrial metals demand, and the -3,525 MT decline in LME copper inventories to a 2-week low of 298,425 MT.

GLOBAL EVENT CALENDAR09/29/2017

		Friday, Sep 29
US	0830 ET	Aug personal spending expected +0.1%, Jul +0.3%. Aug personal income expected +0.2%, Jul +0.4%.
	0830 ET	Aug PCE deflator expected +0.3% m/m and +1.5% y/y, Jul +0.1% m/m and +1.4% y/y. Aug core PCE deflator expected +0.2% and +1.4% y/y, Jul +0.1% m/m and +1.4% y/y.
	0945 ET	Sep Chicago PMI expected -0.2 to 58.7, Aug unch at 58.9.
	1000 ET	Final-Sep University of Michigan U.S. consumer sentiment index expected unch at 95.3, prelim-Sep -1.5 to 95.3.
	1100 ET	Philadelphia Fed President Patrick Harker (voter) speaks at an event titled: The Impact on Consumers, Banking, and Regulatory Policy. Text: No Q&A.
	1200 ET	USDA Q3 Quarterly Grain Stocks.
		Monday, Oct 2
US	0945 ET	Revised Sep Markit manufacturing PMI, prelim-Sep +0.4 to 52.6.
	1000 ET	Sep ISM manufacturing PMI expected -1.3 to 57.5, Aug +2.5 to 58.8. Sep ISM new orders, Aug -0.1 to 60.3. Sep ISM employment, Aug +4.7 to 59.9. Sep ISM prices paid expected +2.0 to 64.0, Aug unch at 62.0.
	1000 ET	Aug construction spending expected +0.4%, Jul -0.6% m/m.
	1100 ET	USDA weekly grain export inspections.
	1400 ET	Dallas Fed President Robert Kaplan (voter) speaks in a moderated Q&A at an event hosted by the El Paso branch of the Dallas Fed.
	1600 ET	USDA crop conditions and progress report.

U.S. STOCK CALENDAR09/29/2017

Name	Ticker	Time	Description	Period	Estimate
Carter's Inc	CRI US		Annual General Meeting

MORNING CALL 5/8

Barchart Morning Call

Barchart.com - 1 hour ago

OVERNIGHT MARKETS AND NEWS

Jun E-mini S&Ps (ESM17 -0.04%) this morning are down -0.06% as they fell back from a record high in overnight trading and European stocks are down -0.52% as they retreated from a 1-1/2 year high. Stock prices initially rallied after pro-EU French presidential candidate Macron soundly defeated anti-EU candidate Le Pen with 66% of the total vote. However, a slide in Jul COMEX copper prices (HGN17 -1.62%) by -1.66% to a 4-1/4 month low undercut mining stocks and commodity producers and stock prices gave up their gains and turned lower. Copper prices sold-off on Chinese demand concerns as China Jan-Apr unwrought copper imports slumped -22.9% y/y to 1.88 MMT. Asian stocks settled mostly higher: Japan +2.31%, Hong Kong +0.41%, China -0.79%, Taiwan +0.38%, Australia +0.59%, Singapore +0.22%, South Korea +2.53%, India +0.23%. Japan's Nikkei Stock Index rallied to a 17-month high as it reopened following a 3-day holiday. China's Shanghai Composite tumbled to a 3-1/2 month low as the ongoing crackdown on financial leverage undercut inventor confidence. Also, weaker than expected Chinese trade data showed China Apr exports and imports rose less than expected.

The dollar index (DXY00 +0.21%) recovered from a 5-3/4 month low and is up +0.21%. EUR/USD (^EURUSD) fell back from a 5-3/4 month high and is down -0.45%. USD/JPY (^USDJPY) is down -0.13%.

Jun 10-year T-note prices (ZNM17 +0.10%) are up +5 ticks.

San Francisco Fed President Williams said Saturday that the economy "is operating above potential" and that the U.S. "is at full employment, or maybe even a little beyond." He added that his outlook for three of four rate increases this year hasn't shifted.

The Eurozone May Sentix investor confidence rose +3.5 to 27.4, stronger than expectations of +1.3 to 25.2 and a 9-3/4 year high.

The China Apr trade balance was in surplus by +$38.05 billion, wider than expectations of +$35.20 billion. Apr exports rose +8.0% y/y, weaker than expectations of +11.3% y/y. Apr imports rose +11.9% y/y, weaker than expectations of +18.0% y/y.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) St. Louis Fed President James Bullard (non-voter) participates in a panel discussion on “Shifting Sands of Low Interest Rates” at the Atlanta Fed’s Financial Markets Conference, (2) Cleveland Fed President Loretta Mester (non-voter) speaks at the Chicago Council on Global Affairs, (3) Fed Senior Loan Officer Survey, (4) USDA weekly grain export inspections, (5) USDA crop conditions and planting progress.

Notable S&P 500 earnings reports today include: Marriott (consensus $0.92), Intl Flavors & Fragrances (1.51), Tesoro (0.31), Tyson Foods (1.02), Sysco (0.52), Newell Brands (0.29), AES (0.20), Mallinckrodt (1.63).

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

Equity conferences: Stifel WasteExpo Investor Summit on Mon, Morgan Stanley E&P and Oil Services Conference on Mon-Tue, Goldman Sachs Global Staples Forum on Tue, Evercore ISI Global Autos Conference on Tue, Oppenheimer Emerging Growth Conference on Tue, Oppenheimer Industrial Growth Conference on Tue, Wells Fargo Industrials Conference on Tue-Wed, Jefferies Global Technology Conference on Wed, Citi European Internet and Digital Conference on Wed, Citi Global Energy and Utilities Conference on Wed, 11th Annual Barrington Research Spring Investment Conference on Thu, Citi Boston Energy Conference on Thu, Deutsche Bank AutoTech Conference on Thu.

OVERNIGHT U.S. STOCK MOVERS

Micron (MU +1.48%) is down 3% in pre-market trading after it was downgraded to 'Neutral' from 'Buy' at Goldman Sachs.

Tyson Foods (TSN +0.57%) reported Q2 adjusted EPS of $1.10, slightly below consensus of $1.02.

Varian Medical Systems (VAR +0.60%) is up over 2% in pre-market trading after it was upgraded to 'Buy' from 'Neutral' at Citigroup with a price target of $119.

Fluor (FLR -4.78%) was upgraded to 'Buy' from 'Hold' at Canaccord Genuity with a price target of $55.

Louisiana-Pacific (LPX -3.61%) was downgraded to 'Neutral' from 'Buy' at DA Davidson & Co.

United Rentals (URI +1.49%) was upgraded to 'Outperform' from 'In-Line' at Evercore ISI.

NXP Semiconductors NV (NXPI -0.19%) was downgraded to 'Neutral' from 'Buy' at Nomura/Instinet.

LyondellBasell Industries NV (LYB +3.37%) was downgraded to 'Underperform' from 'Buy' at Bank of America Merrill Lynch.

Temper Sealy International (TPX +2.31%) was upgraded to 'Hold' from 'Sell' at SunTrust Robinson Humphrey.

Berkshire Hathaway ({=BRK/B=}) fell slightly in after-hours trading after its Q1 operating EPS was a little below consensus due to disappointing insurance results.

Delta (DAL +0.12%) is reportedly considering a delay in a $3 billion Airbus order.

Williams Cos (WMB +2.44%) was raised to "Outperform" from "Market Perform" by Wells Fargo.

MARKET COMMENTS

June E-mini S&Ps (ESM17 -0.04%) this morning are down -1.50 points (-0.06%). Friday's closes: S&P 500 +0.41%, Dow Jones +0.26%, Nasdaq +0.42%. The S&P 500 on Friday closed higher on increased confidence that centrist Emmanuel Macron would win Sunday's French presidential election and on the strong Apr U.S. unemployment report that bolstered confidence in the U.S. economy. In addition, the higher close in oil prices helped oil stocks to stabilize.

June 10-year T-notes (ZNM17 +0.10%) this morning are up +5 ticks. Friday's closes: TYM7 +1.50, FVM7 +0.075. Jun 10-year T-notes on Friday closed slightly higher on some pre-weekend short-covering after June 10-year T-notes initially fell to a 3-1/2 week low. T-note prices were also boosted by the +2.5% y/y gain in April average hourly earnings, which was weaker than market expectations of +2.7% and was dovish for inflation.

The dollar index (DXY00 +0.21%) this morning is up +0.206 (+0.21%). EUR/USD (^EURUSD) is down -0.00050 (-0.45%) and USD/JPY (^USDJPY) is down -0.15 (-0.13%). Friday's closes: Dollar index -0.149 (-0.15%), EUR/USD +0.0013 (+0.12%), USD/JPY +0.25 (+0.22%). The dollar index last Friday fell to a 5-3/4 month low while EUR/USD rallied to a new 5-3/4 month high. The dollar index was undercut by continued strength in the euro on expectations that centrist Macron would beat far-right Le Pen in Sunday's election and pave the way for the ECB to start planning its QE exit for 2018. The dollar index found underlying support on last Friday's strong U.S. April unemployment report.

June WTI crude oil prices (CLM17 -0.26%) this morning are down -1 cent (-0.02%) and June gasoline (RBM17 +0.58%) is up +0.0084 (+0.56%). Friday's closes: Jun crude +0.29 (+0.56%), Jun gasoline +0.0234 (+1.58%). Jun crude oil and gasoline on Friday closed higher on some short-covering after Thursday's plunge. Crude oil prices were hurt by underlying concern about the steady rise in U.S. crude oil production and the fact that the OPEC production cut agreement is not bringing down the massive world glut of oil fast enough. Crude oil prices were also undercut by Friday's Baker Hughes report that U.S. active oil rigs rose by another 6 rigs to post a new 2-year high of 703 rigs.

GLOBAL EVENT CALENDAR05/08/2017

		Monday, May 8
US	0835 ET	St. Louis Fed President James Bullard (non-voter) participates in a panel discussion on Shifting Sands of Low Interest Rates at the Atlanta Feds Financial Markets Conference
	0845 ET	Cleveland Fed President Loretta Mester (non-voter) speaks at the Chicago Council on Global Affairs.
	1100 ET	USDA weekly grain export inspections.
	1400 ET	Fed Senior Loan Officer Survey.
	1600 ET	USDA crop conditions and planting progress.
		Tuesday, May 9
US	0600 ET	Apr NFIB small business optimism index expected -0.7 to 104.0, Mar 104.7.
	0900 ET	Minneapolis Fed President Neel Kashkari (voter) speaks at Minnesota High Tech Conference.
	1000 ET	Mar JOLTS job openings, Feb +118,000 to 5.743 million.
	1000 ET	Mar wholesale trade sales, Feb +0.6%. Mar wholesale inventories expected unrevised at -0.1%.
	1300 ET	Boston Fed President Eric Rosengren (non-voter) speaks at a NYU Conference on risk management.
	1300 ET	Treasury auctions $24 billion of 3-year T-notes.
	1615 ET	Dallas Fed President Robert Kaplan (voter) participates in a moderated Q&A at the Dallas Regional Chamber Lower Middle Market Investment Summit.

U.S. STOCK CALENDAR05/08/2017

Company	Ticker	Time	Event Description	Period	Estimate
Mallinckrodt PLC	MNK US	06:00	Q1 2017 Earnings Release	Q1 17	1.625
AES Corp/VA	AES US	Bef-mkt	Q1 2017 Earnings Release	Q1 17	0.204
Newell Brands Inc	NWL US	Bef-mkt	Q1 2017 Earnings Release	Q1 17	0.29
Sysco Corp	SYY US	Bef-mkt	Q3 2017 Earnings Release	Q3 17	0.515
Tyson Foods Inc	TSN US	07:30	Q2 2017 Earnings Release	Q2 17	1.024
Newell Brands Inc	NWL US	08:30	Q1 2017 Earnings Call	Q1 17
Mallinckrodt PLC	MNK US	08:30	Q1 2017 Earnings Call	Q1 17
Tyson Foods Inc	TSN US	09:00	Q2 2017 Earnings Call	Q2 17
AES Corp/VA	AES US	09:00	Q1 2017 Earnings Call	Q1 17
Sysco Corp	SYY US	10:00	Q3 2017 Earnings Call	Q3 17
International Paper Co	IP US		Annual General Meeting
Digital Realty Trust Inc	DLR US		Annual General Meeting
LKQ Corp	LKQ US		Annual General Meeting
EOG Resources Inc	EOG US	Aft-mkt	Q1 2017 Earnings Release	Q1 17	0.147
International Flavors & Fragrances Inc	IFF US	Aft-mkt	Q1 2017 Earnings Release	Q1 17	1.511
Tesoro Corp	TSO US	Aft-mkt	Q1 2017 Earnings Release	Q1 17	0.306
Verizon Communications Inc	VZ US	16:30	Analyst Meeting
Marriott International Inc/MD	MAR US	17:00	Q1 2017 Earnings Release	Q1 17	0.917

MORNING CALL 12/2

MORNING CALL

Wednesday, December 2nd, 2015View Older Reports

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OVERNIGHT MARKETS AND NEWS

December E-mini S&Ps (ESZ15 unch) are up +0.08% at a 4-week high and European stocks are up +0.28% ahead of speeches today and tomorrow from Fed Chair Yellen. European stocks and government bonds also rose after weaker-than-expected Eurozone Nov CPI reinforced the argument for the ECB to expand stimulus when it meets tomorrow. Gains in European stocks were muted as ArcelorMittal tumbled over 6% and pulled other mining companies lower after Vale SA predicted steel prices will slump more next year. Asian stocks settled mixed: Japan -0.37%, Hong Kong +0.44%, China +2.33%, Taiwan -0.07%, Australia -0.15%, Singapore +0.47%, South Korea -0.84%, India -0.20%. China's Shanghai Composite closed up over 2% as financial companies and property stocks rallied on prospects for additional monetary stimulus from the PBOC.

The dollar index (DXY00 +0.30%) is up +0.28%. EUR/USD (^EURUSD) is down -0.36% after the slower-than-expected Eurozone Nov consumer prices bolstered the outlook for additional ECB easing. USD/JPY (^USDJPY) is up +0.20%.

Mar T-note prices (ZNH16 -0.06%) are unchanged.

Comments Tuesday night from Fed Governor Brainard suggest she sees the federal funds rate topping out at a lower level than in previous expansions. She said "a broad deterioration in foreign growth prospects, together with greater risk sensitivity in the wake of the crisis and changes in the rate of potential output growth, may be contributing to a 'new normal.'" This new normal "implies a delay in the date of liftoff and a shallower path for the federal funds rate over several years."

The Eurozone Nov CPI estimate rose +0.1% y/y, less than expectations of +0.2% y/y. The Nov core CPI rose +0.9% y/y, less than expectations of +1.1% y/y.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly MBA mortgage applications (previous -3.2% with purchase sub-index -0.5% and refi sub-index -4.8%), (2) Atlanta Fed President Dennis Lockhart speech on the U.S. economy to the Broward Workshop in Fort Lauderdale, FL, (3) Nov ADP employment change (expected +190,000, Oct +182,000), (4) Fed Chair Janet Yellen's welcoming remarks at the National College Fed Challenge Finals, (5) revised Q3 non-farm productivity (expected +2.2% vs last +1.6%) and revised Q3 unit labor costs (expected +1.0% vs last +1.4%), (6) Fed Governor Danial Tarullo's opening remarks at an Economic Growth and Regulatory Paperwork Reduction Act Outreach meeting, (7) Nov New York ISM (Oct +21.3 to 65.8), (8) Fed Chair Janet Yellen speech to the Economic Club of Washington, (9) the Fed's Beige Book, (10) San Francisco Fed President John Williams' speech on the economic outlook to community leaders in Portland, Oregon.

There are 4 of the Russell 1000 companies report earnings today: Brown-Forman (consensus $1.00), PVH Corp (2.47), Synopsys (0.65), Avago Technologies (2.38).

U.S. IPO's scheduled to price today: Sabre Corp (SABR), Rice Midstream Partners (RMP), Travelport Worldwide (TVPT), ChromaDex Corp (CDXC),

Equity conferences during the remainder of this week include: Credit Suisse Technology Conference on Tue, Citi Basic Materials Conference on Tue-Wed, Cowen and Company Ultimate Energy Conference on Tue-Wed, Piper Jaffray Health Care Conference on Tue-Wed, Credit Suisse Global Industrials Conference on Tue-Thu, Credit Suisse Technology, Media & Telecom Conference on Tue-Thu, Citi Global Financial Conference on Wed, J.P. Morgan Fintech & Specialty Finance Forum on Wed, Wells Fargo Connected Commerce Investor Summit on Wed, NASDAQ OMX Group, Inc. Investor Program on Wed-Thu, ASEAN Business Summit on Wed-Thu, Bank of America Merrill Lynch Leveraged Finance Conference on Thu.

OVERNIGHT U.S. STOCK MOVERS

Yahoo! (YHOO -0.30%) jumped over 8% in pre-market trading after the WSJ cited people familiar with the matter as saying the company's board will consider the sale of its main Internet business.

Fitbit (FIT +1.74%) rose nearly 3% in pre-market trading after the U.S. International Trade Commission said it would investigate a patent complaint filed by Fotbit against Jawbone Inc.

Bristol-Myers Squibb (BMY +1.87%) was upgraded to 'Buy' from 'Neutral' at Guggenheim Securities with a price target of $82.

Lockheed Martin (LMT +0.47%) won a Pentagon contract worth $914 million to upgrade F-16 aircraft for Singapore's military.

Louisiana-Pacific (LPX -2.45%) was added to the 'Top Pick' list at RBC.

Bob Evans (BOBE +0.13%) slid nearly 5% in after-hours trading after it lowered guidance on its fiscal 2016 revenue estimate to $1.35 billion from a prior view of $1.33 billion-$1.39 billion, below consensus of $1.36 billion.

Mobileye (MBLY -0.32%) rose 1% in after-hours trading after the stock was rated a new 'Buy' at Evercore ISI with a price target of $68.

Powell Industries (POWL -0.31%) slumped 10% in after-hours trading after it reported Q4 adjusted EPS of 45 cents, below consensus of 48 cents, and then lowered guidance on fiscal 2016 adjusted EPS to 65 cents-$1.05, well below consensus of $1.62.

Guidewire Software (GWRE +2.06%) rose over 4% in after-hours trading after it reported Q1 adjusted EPS of 7 cents, over double consensus of 3 cents.

Ascena Retail (ASNA +3.97%) jumped over 7% in after-hours trading after it reported Q1 adjusted EPS of 36 cents, higher than consensus of 29 cents.

Culp (CFI +2.66%) reported Q2 EPS of 41 cents, better than consensus 40 cents, although Q2 revenue of $77.0 million was below consensus of $77.6 million.

OncoGenex Pharmaceuticals (OGXI +1.55%) plunged over 25% in after-hours trading after it said some patients in its prostate cancer drug study did not respond to treatment with its custirsen drug.

MARKET COMMENTS

Dec E-mini S&Ps (ESZ15 unch) this morning are up +1.75 points (+0.08%) at a 4-week high. Tuesday's closes: S&P 500 +1.07%, Dow Jones +0.95%, Nasdaq +1.11%. The S&P 500 on Tuesday rallied to a 3-week high and settled higher on speculation that any Fed interest rate hikes will be slow and shallow after the Nov ISM manufacturing index unexpectedly fell -1.5 to a 6-1/3 year low of 48.6, weaker than expectations of +0.4 to 50.5. The S&P 500 also received a boost from a rally in China's Shanghai Composite that shook off early losses and closed up +0.32% after the China Nov manufacturing PMI unexpected fell -0.2 to a 3-1/4 year low of 49.6 and fueled speculation that the PBOC will expand stimulus.

Mar 10-year T-notes (ZNH16 -0.06%) this morning are unchanged. Tuesday's closes: TYH6 +16.50, FVH6 +10.25. Mar T-notes on Tuesday jumped to a 1-month high and closed higher on speculation that the Fed will move to raise interest rates very gradually after the Nov ISM manufacturing index unexpectedly contracted by the most in 6-1/3 years. T-notes also received a boost from a lack of inflation pressures after the Nov ISM prices paid sub-index contracted at its steepest pace in 9 months.

The dollar index (DXY00 +0.30%) this morning is up +0.275 (+0.28%). EUR/USD (^EURUSD) is down -0.0038 (-0.36%). USD/JPY (^USDJPY) is up +0.25 (+0.20%). Tuesday's closes: Dollar Index -0.375 (-0.37%), EUR/USD -0.0028 (-0.26%), USD/JPY +0.31 (+0.25%). The dollar index on Tuesday closed lower on the unexpected contraction in the Nov ISM manufacturing index, which bolsters the outlook for a gradual pace of Fed tightening, and strength in EUR/USD after the Eurozone Oct unemployment rate unexpectedly fell to a nearly 4-year low.

Jan crude oil (CLF16 -1.12%) this morning is down -43 cents (-1.03%) and Jan gasoline (RBF16 -1.71%) is down -0.0214 (-1.57%). Tuesday's closes: CLF6 unch, RBF6 +0.0526 (+4.02%). Jan crude oil and gasoline on Tuesday settled mixed with Jan crude at a 1-week low and Jan gasoline at a 3-week high. Crude oil prices were undercut by news that China's Nov manufacturing PMI contracted by the most in 3-1/4 years and the Nov ISM manufacturing index contracted by the most in 6-1/3 years. Crude oil is also seeing weakness on expectations that OPEC will keep its crude production quotas unchanged when it meets on Friday. Supportive factors included the weaker dollar and strength in gasoline prices after the crack spread jumped to a 2-1/2 month high when the EPA increased the level of renewable fuels that must be blended with gasoline.

GLOBAL EVENT CALENDAR12/02/2015

US	0700 ET	Weekly MBA mortgage applications, previous -3.2% with purchase sub-index -0.5% and refi sub-index -4.8%.
	0810 ET	Atlanta Fed President Dennis Lockhart speaks on the U.S. economy to the Broward Workshop in Fort Lauderdale, FL.
	0815 ET	Nov ADP employment change expected +190,000, Oct +182,000.
	0830 ET	Fed Chair Janet Yellen delivers welcoming remarks at the National College Fed Challenge Finals.
	0830 ET	Revised Q3 non-farm productivity expected +2.2% vs last +1.6%. Revised Q3 unit labor costs expected +1.0% vs last +1.4%.
	0900 ET	Fed Governor Danial Tarullo makes opening remarks at an Economic Growth and Regulatory Paperwork Reduction Act Outreach meeting.
	0945 ET	Nov New York ISM, Oct +21.3 to 65.8.
	1030 ET	EIA Weekly Petroleum Status Report.
	1225 ET	Fed Chair Janet Yellen speaks to the Economic Club of Washington.
	1400 ET	Fed Beige Book.
	1540 ET	San Francisco Fed President John Williams delivers a speech on the economic outlook to community leaders in Portland, Oregon.
UK	0430 ET	UK Nov Markit/CIPS construction PMI expected -0.3 to 58.5, Oct 58.8.
EUR	0500 ET	Eurozone Nov CPI expected +0.2% y/y, Oct unch y/y. Nov core CPI expected +1.1% y/y, Oct +1.1% y/y.
	0500 ET	Eurozone Oct PPI expected -0.4% m/m and -3.2% y/y, Sep -0.3% m/m and -3.1% y/y.

U.S. STOCK CALENDAR12/02/2015

Company	Ticker	Time	Event Description	Period	Estimate
Brown-Forman Corp	BF/B US	8:00	Q2 2016 Earnings Release	Q2 2016	0.996
Brown-Forman Corp	BF/B US	10:00	Q2 2016 Earnings Call	Q2 2016
Microsoft Corp	MSFT US	11:00	Annual General Meeting	Y 2015
Synopsys Inc	SNPS US	17:00	Q4 2015 Earnings Call	Q4 2015
Avago Technologies Ltd	AVGO US	17:00	Q4 2015 Earnings Call	Q4 2015
PVH Corp	PVH US	Aft-mkt	Q3 2016 Earnings Release	Q3 2016	2.466
Synopsys Inc	SNPS US	Aft-mkt	Q4 2015 Earnings Release	Q4 2015	0.654
Avago Technologies Ltd	AVGO US	Aft-mkt	Q4 2015 Earnings Release	Q4 2015	2.377
Costco Wholesale Corp	COST US	21:00	November 2015 Sales and Revenue Release	2015
AutoNation Inc	AN US		November 2015 Sales and Revenue Release	2015
Copart Inc	CPRT US		Annual General Meeting
Delta Air Lines Inc	DAL US		November 2015 Sales and Revenue Release - Traffic Results	2015