OVERNIGHT MARKETS AND NEWS

Jun E-mini S&Ps (ESM16 +0.36%) are up +0.42%, led by a +3.4% gain in Alcoa ahead of U.S. Q1 company earnings results that begin after the close of trading today. A possible increase in M&A activity is also positive for stocks with Yahoo! Inc. up over 1% in pre-market trading after the parent of the UK's Daily Mail said it is in talks with potential bidders for Yahoo. European stocks are up +1.09% as a rally in Italian bank stocks leads European equities higher on optimism a meeting today between the Italian central bank and bank executives will help lead to a reduction of banks' non-performing loans. Asian stocks settled mixed: Japan -0.44%, Hong Kong +0.35%, China +1.64%, Taiwan +0.25%, Australia -0.12%, Singapore +0.03%, South Korea +0.12%, India +1.41%. China's Shanghai Composite closed higher on signs of economic improvement in China after China Mar producer prices increased month-on-month for the first time since September 2013. A sell-off in Japanese export stocks undercut the Nikkei Stock Index after USD/JPY tumbled to a fresh 17-1/2 month low, which reduces earnings prospects of Japanese exporters.

The dollar index (DXY00 -0.16%) is down -0.08% at a 5-3/4 month low. EUR/USD (^EURUSD) is down -0.10%. USD/JPY (^USDJPY) is up +0.12%.

Jun T-note prices (ZNM16 -0.08%) are down -4 ticks.

Italian Treasury and central bank officials will meet with executives of major Italian banks today to discuss the creation of a fund that would help tackle banks' non-performing loans, according to people with knowledge of the matter. The Italian government is seeking to reduce an estimated 360 billion euros ($410 billion) in bad loans and earlier this year struck a deal with the European Commission to allow banks to bundle their bad loans into securities for sale.

China Mar CPI rose +2.3% y/y, a slower pace of increase than expectations of +2.4% y/y. Mar PPI fell -4.3% y/y, a slower pace of decline than expectations of -4.6% y/y.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) New York Fed President William Dudley's keynote speech at the Association for Neighborhood and Housing Development Annual Community Development Conference in New York, and (2) Dallas Fed President Rob Kaplan's speech at a community forum at Louisiana Tech University.

There is 1 of Russell 1000 companies that reports earnings today: Alcoa (consensus $0.02).

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

Equity conferences this week include: Goldman Sachs Alzheimer Symposium on Mon, IPAA Oil & Gas Investment Symposium on Mon-Tue, Needham Healthcare Conference on Tue, Goldman Sachs Cars Conference on Fri.

OVERNIGHT U.S. STOCK MOVERS

Alcoa (AA -1.16%) climbed over 3% in pre-market trading before it releases its Q1 earnings results after today's close.

Yahoo! (YHOO -0.28%) rose over 1% in pre-market trading after the parent company of the UK's Daily Mail said it is in talks with a number of potential bidders for Yahoo.

United Natural Foods (UNFI -1.10%) was downgraded to 'Underweight' from Equal Weight' at Morgan Stanley.

NXP Semiconductors (NXPI +1.82%) was rate a new 'Buy' at Nomura with a price target of $95.

Potash Corp. of Saskatchewan (POT -0.50%) was downgraded to 'Hold' from 'Buy' at HSBC.

Noble (NE +1.92%) was downgraded to 'Hold' from 'Buy at Societe Generale.

Restaurant Brands International (QSR -0.78%) was upgraded to 'Outperform' from 'Sector Perform' at RBC Capital Markets.

Cummins (CMI +1.13%) was downgraded to 'Neutral' from 'Outperform' at Macquarie.

Valero Energy (VLO +2.27%) was downgraded to 'Neutral' from 'Outperform' at Credit Suisse.

United Continental (UAL -0.15%) slipped nearly 1% in after-hours trading after the company reported March traffic was down -1.5% and its Mar consolidated load factor fell -1.1 points versus Mar 2015.

QLogic (QLGC +6.80%) climbed over 2% in after-hours trading after Bloomberg reported the company hired Qatalyst Partners to explore strategic alternatives for the company, including a possible sale.

Boston Scientific (BSX +0.10%) fell nearly 1% in after-hours trading after it voluntarily recalled its Fetch 2 aspiration catheter due to complaints of shaft breakage.

MARKET COMMENTS

June E-mini S&Ps (ESM16 +0.36%) this morning are up +8.50 points (+0.42%). Friday's closes: S&P 500 +0.28%, Dow Jones +0.20%, Nasdaq -0.01%. The S&P 500 on Friday closed higher on the +6.6% rally in crude oil prices to a 1-1/2 week high, which boosted energy producer stocks, and on New York Fed President Dudley's comment that the uncertainty of the U.S. economy calls for "gradual" interest rate increases. Stocks fell back from their best levels on the -0.5% decline in U.S. Feb wholesale inventories (which will undercut Q1 GDP) and on long liquidation ahead of Q1 earnings season which begins on Monday.

June 10-year T-note prices (ZNM16 -0.08%) this morning are down -4 ticks. Friday's closes: TYM6 -7.00, FVM6 -3.00. Jun T-notes on Friday closed lower on reduced safe-haven demand with the rally in stocks and on the sharp rally in crude oil to a 1-1/2 week high, which boosted inflation expectations.

The dollar index (DXY00 -0.16%) this morning is down -0.076 (-0.08%) at a 5-3/4 month low. EUR/USD (^EURUSD) is down -0.0011 (-0.10%). USD/JPY (^USDJPY) is up +0.13 (+0.12%). Friday's closes: Dollar Index -0.247 (-0.26%), EUR/USD +0.0021 (+0.18%), USD/JPY -0.14 (-0.13%). The dollar index on Friday closed lower on dovish comments from New York Fed President Dudley who said that the uncertainty of the U.S. economy calls for "gradual" interest rate increases. In addition, EUR/USD gained support from the larger-than-expected +1.3% m/m gain in German Feb exports, the biggest increase in 5 months.

May WTI crude oil (CLK16 -0.58%) is down -2 cents (-0.05%). May gasoline (RBK16 -0.13%) is up +0.0043 (+0.29%). Friday's closes: CLK6 +2.46 (+6.60%), RBK6 +0.0825 (+5.97%). May crude and gasoline prices on Friday closed sharply higher with May crude at a 1-1/2 week high and May gasoline at a 1-week high. Crude oil prices were boosted by a weaker dollar and the outlook for lower U.S. crude oil production after Baker Hughes reported that U.S. active oil rigs last week fell by -8 rigs to a 6-1/3 year low of 354 rigs.