Jun E-mini S&Ps (ESM17 -0.01%) this morning are little changed, up +0.02%, and European stocks are down -0.09% as they fall back from a 1-1/3 year high. A decline in the Eurozone unemployment rate to a 7-3/4 year low along with dovish ECB commentary had lifted the Euro Stoxx 50 to a 1-1/3 year high. The Eurozone Feb unemployment rate fell -0.1 to 9.5%, a 7-3/4 year low, and ECB Executive Board member Praet said the ECB is not yet ready to signal any change in monetary policy. However, weaker-than-expected Eurozone Feb PPI bolstered deflation concerns and prompted profit-taking in stocks and European equities turned lower. Asian stocks settled mostly higher: Japan +0.36%, Hong Kong +0.62, China and Taiwan closed for holiday, Australia +0.13%, Singapore +0.39%, South Korea +0.34%, India +0.98%. Japanese stocks moved higher on signs of optimism in the Japanese economy after the Q1 Tankan large manufacturing business conditions improved for a second quarter.
The dollar index (DXY00 +0.26%) is up +0.24%. EUR/USD (^EURUSD) is up +0.02%. USD/JPY (^USDJPY) is up +0.04%.
Jun 10-year T-note prices (ZNM17 +0.10%) are up +4 ticks and found support from a rally in German bunds to a 3-1/2 week high after ECB Executive Board member Praet signaled the ECB is not yet ready to end QE.
The Eurozone Feb unemployment rate fell -0.1 to 9.5%, right on expectations and the lowest in 7-3/4 years.
ECB Executive Board member Praet signaled the ECB is not ready to end QE when he said that “if markets were to pick up any change in communication about the deposit rate, it would have the potential to change the policy stance, and we do not want that to happen right now.”
Eurozone Feb PPI was unch m/m, weaker than expectations of +0.1% m/m.
The China Mar Caixin (flash) manufacturing PMI unexpectedly fell -0.5 to 51.2, weaker than expectations of no change at 51.7.
The Japan Q1 Tankan large manufacturing business conditions rose +2 to 12, weaker than expectations of +4 to 14.
Key U.S. news today includes: (1) revised Mar Markit manufacturing PMI (expected +0.1 to 53.5, prelim-Mar -0.8 to 53.4), (2) Mar ISM manufacturing PMI (expected -0.5 to 57.2, Feb +1.7 to 57.7), (3) Feb construction spending (expected +1.0% m/m, Jan -1.0% m/m), (4) New York Fed President William Dudley (voter) delivers remarks and takes questions at a press briefing on trends in U.S. household debt, (5) Philadelphia Fed President Patrick Harker (voter) speaks on the topic of fintech in a lecture at the University of Pennsylvania School of Engineering and Applied Science’s Technology, Business and Government, (6) Richmond Fed President Jeffrey Lacker (non-voter) speaks on “From ‘Real Bills’ to ‘Too Big to Fail’” at Washington & Lee University, (7) Mar total vehicle sales (expected 17.30 million, Feb 17.47 million), (8) USDA weekly grain export inspections.
Notable Russell 1000 earnings reports today include: none.
U.S. IPO’s scheduled to price today: None.
Equity conferences: SPE Oilfield Chemistry Conference on Mon, American Association for Cancer Research Meeting on Mon-Tue, AACR Meeting on Mon-Wed, Independent Petroleum Association of America Oil & Gas Investment Symposium on Tue, Hart Energy Publishing LLLP DUG Permian Basin Conference on Tue, Jefferies Animal Health Summit on Thu.
Tesla (TSLA +0.14%) is up nearly 2% in pre-market trading after it said it delivered 25,000 vehicles in Q1, more than expectations of 24,200.
Helmerich & Payne (HP +0.06%) was upgraded to ‘Buy’ from ‘Neutral’ at Guggenheim Securities with a 12-month target price of $ 87.
AMC Entertainment Holdings (AMC +0.96%) was upgraded to ‘Outperform’ from ‘Market Perform’ at FBR Capital Markets.
Hilton Worldwide Holdings (HLT -0.53%) was downgraded to ‘Market Perform’ from ‘Outperform’ at Telsey Advisory Group.
SunTrust Bank (STI -1.39%) was upgraded to ‘Buy’ from ‘Hold’ at Jeffries with a price target of $ 63.
Under Armour (UA -0.38%) was downgraded to ‘Underperform’ from ‘Market Perform’ at FBR Capital Markets.
Dover (DOV +0.35%) was upgraded to ‘Overweight’ from ‘Equalweight’ at Morgan Stanley with a price target of $ 90.
FMC Corp (FMC +13.15%) was upgraded to ‘Buy’ from ‘Hold’ at Suntrust Robinson Humphrey with a price target of $ 82.
Mylan NV (MYL -1.52%) lost almost 1% in after-hours trading after it expanded a recall of EpiPens made by its manufacturing partner, Pfizer’s Meridian Medical, throughout the U.S., Europe, Asia and, North and South America.
Novocure LTB (NVCR +0.62%) surged over 20% in after-hours trading after it said a combination of tumor treating fields with nab-paclitaxel and gemcitabine improved survival rates of patients with advanced pancreatic cancer in a Phase 2 pilot study.
OM Asset Management Plc (OMAM +0.20%) was initiated with an ‘Outperform’ at Evercore ISI with a 12-month price target of $ 17.
SteadyMed (STDY +46.84%) jumped 11% in after-hours trading after it had already surged 47% in Friday’s session after it won a favorable ruling in a patent challenge against United Therapeutics.
Jun E-mini S&Ps (ESM17 -0.01%) this morning are up +0.50 points (+0.02%). Friday’s closes: S&P 500 +0.29%, Dow Jones +0.33%, Nasdaq +0.17%. Stocks closed lower Friday after U.S. Feb personal spending rose only +0.1%, weaker than expectations of +0.2% and the smallest increase in 6 months. Stock prices were also undercut by the unexpected -0.7 point decline in the U.S. Mar University of Michigan consumer sentiment to 96.9, weaker than expectations of no change at 97.6. Losses were contained after an unexpected +0.3 point increase in the Mar Chicago PMI to 58.7, stronger than expectations of -0.5 to 56.9 and the fastest pace of growth in 2-years.
Jun 10-year T-notes (ZNM17 +0.10%) this morning are up +4 ticks. Friday’s closes: TYM7 +7.0, FVM7 +5.25. Jun 10-year T-notes on Friday closed higher on dovish comments from New York Fed President Dudley who said there’s no “great urgency” to tighten monetary policy given that the economy is far from overheating. T-notes also garnered support from the weaker-than-expected U.S. Feb personal spending of +0.1%, the smallest increase in 6 months, which may prompt the Fed to delay any additional rate hikes.
The dollar index (DXY00 +0.26%) this morning is up +0.24 (+0.24%). EUR/USD (^EURUSD) is up +0.0002 (+0.02%) and USD/JPY (^USDJPY) is up +0.05 (+0.04%). Friday’s closes: Dollar index -0.060 (-0.06%), EUR/USD -0.0022 (-0.21%), USD/JPY -0.53 (-0.47%). The dollar index fell back from a 2-week high Friday and closed lower after New York Fed President Dudley said there’s no rush to increase interest rates given that the economy is far from overheating. A decline in T-note yields also pressured the dollar as that reduces the dollar’s interest rate differentials. The dollar had posted a 2-week high on weakness in EUR/USD which fell to a 2-week low after Eurozone Mar CPI rose less than expected, which may delay any tapering of QE by the ECB.
May WTI crude oil (CLK17 +0.18%) prices this morning are up +6 cdnts (+0.12%) and May gasoline (RBK17 +0.17%) is +0.0045 (+0.26%). Friday’s closes: May crude +0.25 (+0.50%), May gasoline +0.0193 (+1.15%). May crude oil and gasoline on Friday rallied to 3-week highs after a report from JBC Energy said that OPEC has achieved 90% compliance with its crude production cuts and that OPEC Mar crude output fell -135,000 bpd to 32.05 million bpd, a 16-month low. A weaker dollar was also positive for energy prices. Gains were limited, though, after data from Baker Hughes showed that U.S. active oil wells rose 10 in the week ended Mar 31 to 662, a 1-1/2 year high.
|Monday, April 3|
|US||0945 ET||Revised Mar Markit manufacturing PMI expected +0.1 to 53.5, prelim-Mar -0.8 to 53.4.|
|1000 ET||Mar ISM manufacturing PMI expected -0.5 to 57.2, Feb +1.7 to 57.7. Mar ISM new orders, Feb +4.7 to 65.1. Mar ISM employment, Feb -1.9 to 54.2. Mar ISM prices paid expected -2.0 to 66.0, Feb -1.0 to 68.0.|
|1000 ET||Feb construction spending expected +1.0% m/m, Jan -1.0% m/m.|
|1030 ET||New York Fed President William Dudley (voter) delivers remarks and takes questions at a press briefing on trends in U.S. household debt.|
|1100 ET||USDA weekly grain export inspections.|
|1500 ET||Philadelphia Fed President Patrick Harker (voter) speaks on the topic of fintech in a lecture at the University of Pennsylvania School of Engineering and Applied Sciences Technology, Business and Government.|
|1700 ET||Richmond Fed President Jeffrey Lacker (non-voter) speaks on From Real Bills to Too Big to Fail at Washington & Lee University.|
|n/a||Mar total vehicle sales expected 17.30 million, Feb 17.47 million. Mar domestic vehicle sales expected 13.65 million, Feb 13.65 million.|
|Tuesday, April 4|
|US||0830 ET||Feb trade balance expected -$ 46.0 billion, Jan -$ 48.5 billion.|
|1000 ET||Feb factory orders expected +1.0%, Jan +1.2% and +0.3% ex transportation.|
|1630 ET||Fed Governor Daniel Tarullo gives a public address at Princeton University.|
|Lifeway Foods Inc||LWAY US||Q4 2016 Earnings Release||Q4 16||0.06|