Mar E-mini S&Ps (ESH17 +0.01%) are little changed, down -0.02%, as they fell back from a contract high in overnight trade. European stocks are up +0.08% at a 11-1/4 month high. A +4.19% surge in Jan WTI crude oil (CLF17 +4.39%) to a 17-month high lifted energy producing stocks and pushed global stock higher. Crude prices soared after non-OPEC countries on Saturday agreed to cut crude production by more than 558,000 bpd and Saudi Arabian Oil Minister Khalid Al-Falih said that Saudi Arabia will “cut substantially below” what it agreed to cut at the OPEC meeting last month. U.S. and European stocks fell back from their best levels after Chinese stocks tumbled to a 1-month low on concerns over China’s property market bubble along with trade concerns with the U.S. on President-elect Trump’s trade plans. Asian stocks settled mostly lower: Japan +0.84%, Hong Kong -1.44%, China -2.47%, Taiwan -0.46%, Australia +0.04%, Singapore -0.13%, South Korea -0.07%, India -0.87%. Japanese stocks bucked the negative trend in Asian markets and rose to a 11-3/4 month high as a rally in USD/JPY to a 10-month high boosted exporter stocks.
The dollar index (DXY00 -0.25%) is down -0.32%. EUR/USD (^EURUSD) is up +0.38%. USD/JPY (^USDJPY) is up +0.37% at a 10-month high.
Mar 10-year T-note prices (ZNH17 -0.23%) are down -11 ticks at a new contract low as the surge in crude oil to a 17-month high bolsters inflation expectations.
Key U.S. news today includes: (1) Nov monthly budget statement (expected -$ 125.0 billion, Oct -$ 44.2 billion), (2) the Treasury’s auction of $ 24 billion of 3-year T-notes and $ 20 billion of 10-year T-notes, and (3) USDA weekly grain export inspections.
Russell 1000 earnings reports today include: VeriFone Systems (consensus $ 0.29).
U.S. IPO’s scheduled to price today: none.
Equity conferences this week include: Jefferies Diabetes Technology Summit on Mon, Capital Link Invest in Greece Forum on Mon, Guggenheim Securities Boston Healthcare Conference on Tue, Bank of America Merrill Lynch SMID Cap Technology Conference on Wed, BMO Capital Markets Prescriptions for Success Healthcare Conference on Wed, RBC Capital Markets’ Healthcare Investor Day on Thu.
ConocoPhillips (COP +1.99%) was upgraded to ‘Outperform’ from ‘Market Perform’ at Cowen with a 12-month target price of $ 59.
Cheniere Energy Partners LP Holdings LLC (CQH -3.02%) was upgraded to ‘Outperform’ from ‘Neutral’ at Credit Suisse with a target price of $ 28.
The Brink’s Company (BCO -1.33%) was upgraded to ‘Outperform’ from ‘Neutral’ at Macquarie Research with a 12-month target price of $ 50.
Seattle Genetics (SGEN -3.08%) was downgraded to ‘Neutral’ from ‘Outperform’ at Credit Suisse.
Hanesbrands (HBI +0.04%) was upgraded to ‘Buy’ from ‘Neutral’ at D.A. Davidson & Co. with a 12-month target price of $ 29.
Itegra LifeSciences Holdings (IART +0.71%) was rated a new ‘Buy’ at UBS with a 12-month target price of $ 96.
MiMedx Group (MDXG +1.16%) was rated a ‘Sell’ at UBS with a 12-month target price of $ 9.
People familiar with the matter said that Cornerstone OnDemand (CSOD -0.28%) is said to mull a sale amid activist pressure.
A U.S. International Trade Commission Judge said that Arista Networks (ANET -1.41%) infringed on 2 Cisco patents.
Axovant Sciences Ltd (AXON -0.56%) jumped 5% in after-hours trading after it said data from a Phase 2b trial shows the addition of its Intepirdine drug to standard therapy may help people with Alzheimer’s disease maintain independence longer.
Mar E-mini S&Ps (ESH17 +0.01%) this morning are down -0.50 of a point (-0.02%). Friday’s closes: S&P 500 +0.59%, Dow Jones +0.72%, Nasdaq +0.76%. The S&P 500 on Friday rose to a new record high and closed higher on strength in European stocks on carry-over support from Thursday’s action by the ECB to extend QE and from the Bundesbank’s hike in its German 2016 and 2017 GDP estimates. Stocks were also boosted by the +4.2 point increase in the Dec University of Michigan U.S. consumer sentiment index to a 23-month high of 98.0, stronger than expectations of +0.7 to 94.5. Energy producer stocks were boosted by the +1.3% rally in crude oil prices.
Mar 10-year T-notes (ZNH17 -0.23%) this morning are down -11 ticks at a new contract low. Friday’s closes: TYH7 -16.00, FVH7 -9.00. Mar 10-year T-note futures on Friday fell to a 1-week low and closed lower. T-notes were undercut by reduced safe-haven demand with the rally in stocks and by the surge in the Dec University of Michigan U.S. consumer confidence index to a 23-month high.
The dollar index (DXY00 -0.25%) this morning is down -0.330 (-0.32%). EUR/USD (^EURUSD) is up +0.0040 (+0.38%). USD/JPY (^USDJPY) is up +0.43 (+0.37%) at a 10-month high. Friday’s closes: Dollar index +0.490 (+0.48%), EUR/USD -0.0054 (-0.51%), USD/JPY +1.28 (+1.12%). The dollar index on Friday rose to a 1-week high and closed higher on the larger-than-expected increase in Dec University of Michigan U.S. consumer confidence index to a 23-month high. There was also weakness in the yen as USD/JPY climbed to a 10-month high on reduced safe-haven demand for the yen after the S&P 500 climbed to a new record high.
Jan WTI crude oil prices (CLF17 +4.39%) this morning are up +$ 2.16 a barrel (+4.19%) at a 17-month high and Jan gasoline (RBF17 +3.81%) is +0.0575 (+3.81%) at a 1-1/4 month high. Friday’s closes: Jan crude +0.66 (+1.30%), Jan gasoline +0.0033 (+0.22%). Jan crude oil and gasoline prices on Friday closed higher on expectations that Saturday’s meeting in Vienna between OPEC and non-OPEC oil producers would lead to a coordinated cut in crude output. Crude oil prices were undercut by the rally in the dollar index to a 1-week high.
|Monday, Dec 12|
|US||1100 ET||USDA weekly grain export inspections.|
|1130 ET||Treasury auctions $ 24 billion of 3-year T-notes.|
|1300 ET||Treasury auctions $ 20 billion of 10-year T-notes.|
|1400 ET||Nov monthly budget statement expected -$ 125.0 billion, Oct -$ 44.2 billion.|
|Tuesday, Dec 13|
|US||0830 ET||Nov import price index expected -0.4% m/m and unch y/y, Oct +0.5% m/m and -0.2% y/y.|
|1030 ET||FOMC begins 2-day policy meeting.|
|1300 ET||Treasury auctions $ 12 billion of 30-year T-bonds.|
|Cisco Systems Inc||CSCO US||13:00||Annual General Meeting||Y 2016|
|VeriFone Systems Inc||PAY US||16:30||Q4 2016 Earnings Call||Q4 2016|
|VeriFone Systems Inc||PAY US||Aft-mkt||Q4 2016 Earnings Release||Q4 2016||0.289|
|JetBlue Airways Corp||JBLU US||November 2016 Sales and Revenue Release – Traffic Results||2016|