Morning Call: Global stocks mixed; Dec E-mini S&Ps up +0.10%; Dec 10-year T-notes up +3 ticks to a 1-week high; Dollar Index up +0.30% to a 1-week high.
Related Stocks
 ESZ18 - S&P 500 E-Mini
SymLastChgPct
ESZ182,632.50-10.50-0.40%
CLX1869.17s+0.05+0.07%
DXY0097.098-0.121-0.12%
ZNZ18120-250+0-030+0.08%
GCZ181,245.5+1.8+0.14%
SIZ1814.500+0.022+0.15%
HGZ182.7260+0.0075+0.28%
RBX181.7680s-0.0379-2.10%
KMX62.34-0.22-0.35%
MA198.06+1.56+0.79%
V137.88+0.77+0.56%
CI206.08-0.03-0.01%
ALK63.48-1.46-2.25%
WP81.72-0.16-0.20%
MGP28.49-0.35-1.21%
PYPL84.93+2.16+2.61%
CMTL25.71-2.73-9.60%
BBBY12.27-0.18-1.45%
ALDX9.33+0.10+1.08%

Overnight Markets and News

Dec E-mini S&Ps (ESZ18 +0.09%) this morning are up +0.10% on strength in technology and energy stocks. Energy stocks rose as Nov WTI crude oil (CLX18 +0.94%) climbed +1.09% on supply concerns after U.S. Energy Secretary Perry said he government isn't planning to tap emergency oil supplies when American sanctions on Iranian crude are implemented in November. European stocks are down -0.11% after Eurozone Sep economic confidence fell to a 15-month low and after the top German research institutes cut their German 2018 GDP forecast to 1.7% from 2.2%, the slowest pace of growth in 3-years. Also, weakness in Italian stocks and government bonds weighed on European assets after reports that Italy's Five Star Movement and the League were pushing for extra spending that may delay Italy's 2019 budget. Asian stocks settled mostly lower: Japan -0.99%, Hong Kong -0.36%, China -0.54%, Taiwan +0.55%, Australia -0.18%, Singapore -0.09%, South Korea +0.59%, India -0.60%. Asian stock markets fell back on ramped up China/U.S. trade tensions along with the prospects for another Fed rate hike before the end of the year.

The dollar index (DXY00 +0.37%) is up +0.30% at a 1-week high on positive carry-over from Wednesday after the post-FOMC statement boosted the prospects for a Dec interest rate increase. EUR/USD (^EURUSD -0.25%) is down -0.23% at a 1-week low on a slump in European Sep economic confidence along with Italian budget woes. USD/JPY (^USDJPY +0.09%)cis up +0.06%.

Dec 10-year T-note prices (ZNZ18 +0-030) are up +3 ticks at a 1-week high on positive carry-over from Wednesday's post-FOMC statement where the Fed removed its policy setting as "accommodative," which bolsters speculation the Fed may slow the pace of rate hikes as it nears a neutral policy rate.

Eurozone Sep economic sentiment fell -0.7 to a 15-month low of 110.9, weaker than expectations of -0.4 to 111.2. The Sep business climate indicator was unch at 1.21, stronger than expectations of -0.03 to 1.19.

Eurozone Aug M3 money supply rose +3.5% y/y, weaker than expectations of +3.9% y/y and the slowest pace of increase in 3-3/4 years.

German Oct GfK consumer confidence rose +0.1 to 10.6, stronger than expectations of no change at 10.5.

The top five German research institutes cut their German 2018 GDP forecast to 1.7% from a prior view of 2.2%, the slowest pace of growth in 3-years.

China Aug industrial profits rose +9.2% y/y, the smallest increase in 5 months.

U.S. Stock Preview

Key U.S. news today includes: (1) weekly initial unemployment claims (expected +9,000 to 210,000, previous -3,000 to 201,000) and continuing claims (expected +33,000 to 1.678 million, previous -51,000 to 1.645 million), (2) Q2 GDP expected unrevised at +4.2% (q/q annualized), (3) Aug durable goods orders (expected +2.0% and +0.4% ex transportation, Jul -1.7% and +0.1% ex transportation), (4) Aug wholesale inventories (expected +0.3%, Jul +0.7%), (5) Aug pending home sales (expected -0.5% m/m and -1.0% y/y, Jul -0.7% m/m and -0.5% y/y), (6) Aug Kansas City Fed manufacturing activity index (expected +3 to 17, Aug -9 to 14), (7) Treasury auctions $31 billion of 7-year T-notes, (8) Fed Chair Jerome Powell makes brief remarks on the U.S. economy at a Senate event.

Notable Russell 2000 earnings reports today include: Carnival (consensus $2.32), Accenture (1.55), Conagra Brands (0.49), McCormick (1.27), Cantel Medical (0.58).

U.S. IPO's scheduled to price today: CooTek Cayman (CTK), Gritstone Oncology (GRTS).

Equity conferences during the remainder of this week: Barrington Research Fall Investment Conference on Thu, Contracting & Outsourcing Conference on Thu, Wells Fargo Securities Consumer Forum & Beauty Day on Thu.

Market Comments

Dec S&P 500 E-minis (ESZ18 +0.09%) this morning are up +3.00 points (+0.10%). Wednesday's closes: S&P 500 -0.33%, Dow Jones -0.40%, Nasdaq 100 unch. The S&P 500 on Wednesday closed lower on an increase in the number of Fed officials to 12 of 16 from 8 in June who favor four rate hikes this year. There was also weakness in energy stocks after crude oil prices fell -0.98%. Stocks were supported by the FOMC's hike in its U.S. 2018 GDP estimate to 3.1% from a Jun estimate of 2.8% and its decision to keep its 2018 core PCE inflation estimate unchanged at 2.0%.

Dec 10-year T-notes (ZNZ18 +0-030) this morning are up +3 ticks at a 1-week high. Wednesday's closes: TYZ8 +9.00, FVZ8 +4.75. Dec 10-year T-notes on Wednesday closed higher on short-covering on speculation the Fed may slow the pace of raising interest rates after it removed its description of monetary policy as "accommodative." T-notes were also supported by the FOMC's decision to keep its U.S. 2018 core PCE price index estimate unchanged from Jun at 2.0%, which signals that policy makers see no increase in inflation pressures.

The dollar index (DXY00 +0.37%) this morning is up +0.28 (+0.30%) at a 1-week high, EUR/USD (^EURUSD -0.25%) is down -0.0027 (-0.23%) at a 1-week low, and USD/JPY (^USDJPY +0.09%) is up +0.07 (+0.06%). Wednesday's closes: Dollar Index +0.06 (+0.06%), EUR/USD -0.0028 (-0.24%), USD/JPY -0.24 (-0.21%). The dollar index on Wednesday closed higher on the FOMC's hike in its funds target range by +25 bp to 2.00%-2.5% and its hike in its U.S. 2018 GDP estimate to 3.1% from a Jun estimate of 2.8%. The dollar was undercut by the FOMC's removal of its description of monetary policy as "accommodative," which could signal a slower pace of tightening as the funds rate moves closer to neutral.

Metals prices this morning are mixed with Dec gold (GCZ18 -0.07%) +0.4 (+0.03%), Dec silver (SIZ18 -0.63%) +0.044 (+0.31%) and Dec copper (HGZ18 -1.24%) -0.026 (-0.92%). Wednesday's closes: Dec gold -6.0 (-0.50%), Dec silver -0.092 (-0.63%), Dec copper +0.45 (+0.16%). Metals on Wednesday settled mixed. Metals prices were undercut by a rally in stocks, which reduced the safe-haven demand for precious metals, and by the FOMC's hike in its funds rate target range by 25 bp. Copper prices moved higher on signs of tighter supplies after LME copper inventories fell -2,025 MT to an 8-1/4 month low of 210,900 MT.

Nov WTI crude oil prices (CLX18 +0.94%) this morning are up +78 cents (+1.09%) and Nov gasoline (RBX18 +0.65%) is +1.77 (+0.87%). Wednesday's closes: Nov crude oil -0.71 (-0.98%), Nov gasoline -0.93 (-0.45%). Nov crude oil and gasoline on Wednesday closed lower on the unexpected +1.85 million bbl increase in EIA crude inventories (more than expectations of a -1.5 million bbl draw) and by the +0.9% w/w increase in U.S. crude production the week of Sep 21 to a record 11.1 million bpd. Gasoline prices were undercut by the +1.53 million bbl increase in EIA gasoline stockpiles, more than expectations of +700,000 bbl.

Overnight U.S. Stock Movers

CarMax (KMX -1.61%) was upgraded to 'Outperform' from 'Neutral' at Baird with a price target of $90

Mastercard (MA +0.06%) was rated a new 'Outperform' at BMO Capital Markets with a price target of $238.

Visa (V -0.21%) was rated a new 'Outperform' at BMO Capital Markets with a price target of $187.

Cigna (CI +0.46%) was rated a new 'Overweight' at Cantor Fitzgerald with a price target of $245.

Alaska Air Group (ALK +1.47%) was upgraded to 'Outperform' from 'In-line' at Imperial Capital LLC with a price target of $95.

Worldpay (WP -0.28%) was rated a new 'Outperform' at BMO Capital Markets with a price target of $129.

MGM Growth Properties LLC (MGP -0.20%) was rated anew 'Buy' at Nomura Instinet with a price target of $37.

PayPal (PYPL -0.21%) was rated a new 'Outperform' at BMO Capital Markets with a price target of $112.

Comtech Telecommunications (CMTL +5.10%) dropped nearly 15% in after-hours trading after it reported Q4 net sales of $167.4 million, below consensus of $174.6 million.

Bed Bath & Beyond (BBBY -0.48%) tumbled 17% in after-hours trading after it reported an unexpected -0.6% decline in Q2 comparable sales, weaker than expectations of +0.4%.

Aldeyra Therapeutics (ALDX +34.85%) lost 1% in after-hours trading after it announced that it intends to offer and sell 5.25 million shares of its common stock in an underwritten public offering.