Morning Call: Lower bond yields lift stocks; Jun E-mini S&Ps up +0.06%; German 10-year bund yield falls to a 1-3/4 month low of 0.559%.
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 ESM18 - S&P 500 E-Mini
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ESM182,776.85s-6.40-0.23%
DXY0095.033+0.088+0.09%
ZNM18119-310s-0-055-0.14%
CLJ1863.40s+1.34+2.16%
RBJ182.0179s+0.0063+0.31%
GCJ181,316.3s-4.9-0.37%
SIK1816.305s-0.176-1.07%
HGK183.0520s-0.0150-0.49%
WCG254.03-1.19-0.47%
ADBE258.31+3.63+1.43%
AVGO208.31+5.06+2.49%
ULTA253.08-2.42-0.95%
CRSP62.01+1.95+3.25%
OSTK43.05+4.10+10.53%
JBL28.85+0.14+0.49%
ZUMZ20.90+0.30+1.46%
GDEN33.15+1.87+5.98%
ZAGG17.55+0.65+3.85%
FEYE16.93+0.17+1.01%
CBAY13.45+0.48+3.70%
PRPL8.00+0.11+1.39%
AMRS6.77+0.06+0.89%
KODK4.00+0.25+6.67%

Overnight Markets and News

Jun E-mini S&Ps (ESM18 +0.04%) this morning are up +0.06% and European stocks are up +0.45%. Slack inflation pressures in the Eurozone fueled a rally in 10-year German bunds to a 1-3/4 month high, which is underpinning stock prices. Eurozone Feb CPI was unexpectedly revised lower to 1.1% y/y from 1.2% y/y, the smallest pace of increase in 14-months, and ECB Executive Board member Praet warned against an early shift in guidance on stimulus as increased labor supply in the Eurozone may be holding down wages and therefore inflation. Asian stocks settled mixed: Japan -0.58%, Hong Kong -0.12%, China -0.65%, Taiwan +0.08%, Australia +0.48%, Singapore -0.16%, South Korea +0.04%, India -1.51%. China's Shanghai Stock Index fell to a 1-week low and was undercut on concerns about the Trump administration's trade policies, while Japanese stocks retreated after Japan Jan industrial production was revised lower to -6.8% m/m, the largest decline in 6-3/4 years, and after USD/JPY fell to a 1-week low, which undercut exporter stocks as the stronger yen reduces the earnings prospects of exporters.

The dollar index (DXY00 -0.16%) is down -0.20%. EUR/USD (^EURUSD +0.12%) is up +0.20%. USD/JPY (^USDJPY -0.63%) is down -0.67% at a 1-week low.

Jun 10-year T-note prices (ZNM18 +0-015) are up +2 ticks.

ECB Executive Board member Praet said policy makers have been surprised by the number of people joining the workforce, which may mute the upward pressure on wages and therefore inflation so he "would not want to revise guidance too early, because that could send wrong signals about the end of our net asset purchases."

Eurozone Feb CPI was unexpectedly revised lower to +1.1% y/y from the originally reported +1.2% y/y, the smallest pace of increase in 14 months. Feb core CPI was left unch at +1.0% y/y.

Eurozone Q4 labor costs rose +1.5% y/y, a slower pace than the +1.6% y/y increase in Q3.

Japan Jan industrial production was revised lower to -6.8% m/m from the originally reported -6.6% m/m, the biggest monthly decline in 6-3/4 years.

U.S. Stock Preview

Key U.S. news today includes: (1) Feb housing starts (expected -2.7% to 1.290 million, Jan +9.7% to 1.326 million), (2) Feb industrial production (expected +0.4%, Jan -0.1%), (3) Jan JOLTS job openings (expected +89,000 to 5.900 million, Dec -167,000 to 5.811 million), (4) preliminary-March University of Michigan U.S. consumer sentiment index (expected -0.5 to 99.2, Feb +4.0 to 99.7).

Notable Russell 1000 earnings reports today include: Tiffany (consensus $1.64).

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

Equity conferences this week: none.


Market Comments

Jun S&P 500 E-mini stock futures (ESM18 +0.04%) this morning are up +1.75 points (+0.06%). Thursday's closes: S&P 500 -0.08%, Dow Jones +0.47%, Nasdaq -0.14%. The S&P 500 on Thursday closed slightly lower on political concerns after the report that special counsel Mueller subpoenaed the Trump Organization to turn over documents related to President Trump's businesses. Stocks were also undercut by trade concerns after comments from White House economic adviser Kudlow who said China has earned a "tough response" for not playing by the rules of trade. Stocks received a boost from the +9.4 point increase in the U.S. Mar Empire manufacturing index to a 5-month high of 22.5, stronger than expectations of +1.9 to 15.0.

Jun 10-year T-note prices (ZNM18 +0-015) this morning are up +2 ticks. Thursday's closes: TYM8 -1.50, FVM8 -1.75. Jun 10-year T-notes on Thursday closed slightly lower on the the stronger-than-expected +9.4 point increase in the U.S. Mar Empire manufacturing index to a 5-month high. T-notes received carry-over support from a rally in German bund prices to a 1-1/2 month high.

The dollar index (DXY00 -0.16%) this morning is down -0.181 (-0.20%). EUR/USD (^EURUSD +0.12%) is up +0.0024 (+0.20%) and USD/JPY (^USDJPY -0.63%) is down -0.71 (-0.67%) at a 1-week low. Thursday's closes: Dollar Index +0.435 (+0.48%), EUR/USD -0.0063 (-0.51%), USD/JPY +0.02 (+0.02%). The dollar index on Thursday closed higher on comments from incoming White House economic adviser Kudlow who said, "I have no reason to believe that President Trump opposes a sound and stable dollar" and on the stronger-than-expected Mar Empire manufacturing index.

Apr crude oil (CLJ18 +0.21%) this morning is up +17 cents (+0.28%) and Apr gasoline (RBJ18 -0.17%) is -0.0032 (-0.17%). Thursday's closes: Apr WTI crude +0.23 (+0.38%), Apr gasoline +0.0005 (+0.03%). Apr crude oil and gasoline on Thursday closed higher on increased compliance with OPEC crude production cuts as OPEC compliance in Feb rose to a record 147% from 137% in Jan. In addition, non-OPEC compliance rose to 80% in Feb from 77% compliance in Jan. Crude oil prices were undercut by a stronger dollar.

Metals prices this morning are higher with Apr gold (GCJ18 +0.20%) +3.0 (+0.23%), May silver (SIK18 +0.32%) +0.048 (+0.29%), and May copper (HGK18 +0.34%) +0.014 (+0.43%). Thursday's closes: Apr gold -7.8 (-0.59%), May silver -0.121 (-0.71%), May copper -0.0310 (-0.98%). Metals on Thursday closed lower on a stronger dollar and on concern that if the U.S. levies tariffs on China that it may start a trade war which could diminish global growth and industrial metals demand.

Overnight U.S. Stock Movers

WellCare Health Plans (WCG -0.36%) was upgraded to 'Buy' from 'Neutral' at Bank of America/Merrill Lynch with a price target of $240.

Adobe Systems (ADBE +0.20%) climbed almost 4% in after-hours trading after it reported Q1 revenue of $2.08 billion, better than consensus of $2.05 billion, and forecast Q2 revenue of $2.15 billion, above consensus of $2.14 billion.

Broadcom Ltd (AVGO +2.75%) slid over 1% in after-hours trading after it said it sees Q2 adjusted revenue of $5.0 billion, plus or minus $75 million, close to consensus of $5.0 billion.

Ulta Beauty (ULTA +2.05%) lost 1% in after-hours trading after it forecast Q1 EPS of $2.43 to $2.48, weaker than consensus of $2.59.

CRISPR Therapeutics AG (CRSP -9.58%) gained almost 3% in after-hours trading when Guggenheim Securities raised its price target on the stock to $85.

Overstock.com (OSTK -0.62%) dropped almost 7% in after-hours trading after it reported a Q4 loss per share of -$3.72.

Jabil (JBL +1.03%) rose over 3% in after-hours trading after it reported Q2 core EPS of 66 cents, better than consensus of 62 cents, and said it sees full-year core EPS of $2.60, above consensus of $2.57.

Zumiez (ZUMZ +2.04%) lost over 1% in after-hours trading after it reported Q4 EPS of 80 cents, below consensus of 90 cents.

Golden Entertainment (GDEN +1.71%) slid nearly 3% in after-hours trading after it said it plans to invest $140 million in the Stratosphere Casino.

Zagg (ZAGG -0.40%) rose almost 4% in after-hours trading after it was rated a new 'Buy' at D.A. Davidson with a price target of $20.

FireEye (FEYE +3.84%) gained almost 3% in after-hours trading after CEO Kevin Mandia appeared on CNBC and said "I think we own that moment" in regard to investigating digital-currency hacks,

Cymabay Therapeutics (CBAY -8.09%) rose 5% in after-hours trading after it said it will start a Phase 3 study of its Seladeplar for primary biliary cholangitis in the second half of this year.

Purple Innovation (PRPL +2.27%) tumbled 12% in after-hours trading after it announced CEO Sam Bernards is stepping down to pursue other opportunities.

Amyris (AMRS -2.62%) surged over 20% in after-hours trading after it forecast more than $10 million of positive Ebitda for 2018, better than consensus of negative Ebitda of -$10.2 million.

Eastman Kodak (KODK -1.98%) jumped 14% in after-hours trading after it forecast 2018 operational Ebitda of $60 million-$70 million versus $49 million in 2017.