OVERNIGHT MARKETS AND NEWS

September E-mini S&Ps (ESU15 +0.28%)are up +0.29 % and European stocks are up +1.76% after the PBOC stepped up verbal support for the yuan. Weakness in the yuan subsided and spurred a rally in global stocks after the PBOC said in a rare press conference today that it supports a strong, stable currency in the long term and that the currency's adjustment is "basically already completed." Technology stocks also are stronger led by a 4% gain in Cisco in pre-market trading after the company late yesterday beat Q4 EPS and revenue estimates. Asian stocks closed higher: Japan +0.99%, Hong Kong +0.43%, China +1.76%, Taiwan +0.34%, Australia +0.11%, Singapore +0.99%, South Korea +0.03%, India +0.14%.

The dollar index (DXY00 +0.33%) is up +0.29%. EUR/USD (^EURUSD) is down -0.39%. USD/JPY (^USDJPY) is up +0.24%.

Sep T-note prices (ZNU15 -0.26%) are down -9.5 ticks.

In a rare press conference today, the PBOC quelled concerns that it would let the yuan freefall when Assistant PBOC Governor Zhang Xiaohui said there's no basis for the depreciation to persist and that the currency's adjustment is "basically already completed." PBOC Deputy Governor added that the current exchange rate is now more consistent with economic fundamentals and the PBOC will act "when the market's volatility is excessive, when the market begins behaving like a herd of sheep."

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly initial unemployment claims (expected unch at 270,000, previous +3,000 to 270,000) and continuing claims (expected -10,000 to 2.245 million, previous -14,000 to 2.255 million), (2) July retail sales (expected +0.6% and +0.4% ex autos, Jun -0.3% and -0.1% ex autos), (3) July import price index (expected -1.2% m/m and -10.7% y/y, Jun -0.1% m/m and -10.0% y/y), (4) Jun business inventories (expected +0.3%, May +0.3%), and (5) the Treasury's auction of $16 billion of 30-year T-bonds.

There are 4 of the S&P 500 companies that report earnings today: Advance Auto Parts (consensus $2.25), Kohl's (1.16), Nordstrom (0.90), Applied Materials (0.33).

U.S. IPO's scheduled to price today include: Gores Holdings (GRSHU), Boxlight Corp (BOXL), Diamondback Energy (FANG), LDR Holding Corp (LDRH).

Equity conferences during the remainder of this week include: Jefferies Industrials Conference on Tue-Thu, Canaccord Genuity Growth Conference on Wed-Thu, Nomura Media & Telecom Conference on Thu.

OVERNIGHT U.S. STOCK MOVERS

Microsoft (MSFT +0.71%) was upgraded to 'Buy' from 'Hold' at Stifel.

Monster Beverage (MNST -0.46%) was upgraded to 'Overweight' from 'Equal Weight' at Morgan Stanley.

Kohl's (KSS +0.15%) reported Q2 EPS of $1.07, weaker than consensus of $1.16.

Green Plains (GPRE +6.59%) was upgraded to 'Buy' from 'Neutral' at Goldman Sachs.

Briggs & Stratton (BGG +1.20%) reported Q4 adjusted EPS of 51 cents, well above consensus of 38 cents, but then lowered guidance on fiscal 2016 EPS to $1.20-$1.36, below consensus of $1.38.

The Globe and Mail reported that people familiar with the situation said that Barrick Gold (ABX +5.86%) has hired Canadian Imperial Bank of Commerce to pursue a sale of its smaller U.S. gold mines.

Whitebox Advisors reports 6.0% passive stake in Layne Christensen (LAYN -2.92%) .

Flowers Foods (FLO +0.05%) reported Q2 adjusted EPS of 25 cents, higher than consensus of 22 cents, and then raised guidance on fiscal 2015 revenue to $3.786 billion-$3.861 billion, above consensus of $3.77 billion.

Copa Holdings (CPA -1.00%) slid 8% in after-hours trading after it reported Q2 EPS ex-items of 93 cents, below consensus of $1.06.

Becker Drapkin reported a 9% stake in EMCORE (EMKR +0.14%) .

Middleby (MIDD -1.03%) reported Q2 EPS of 95 cents, weaker than consensus of $1.00.

News Corp. (NWSA +1.15%) rose over 4% in after-hours trading after it reported Q4 adjusted EPS of 7 cents, higher than consensus of 5 cents.

CACI (CACI +0.32%) reported Q4 EPS of $1.68, below consensus of $1.71.

Cisco (CSCO -0.43%) climbed over 4% in after-hours trading after it reported Q4 EPS of 59 cents, above consensus of 56 cents.

Roundy's (RNDY +6.91%) reported a Q2 EPS loss of -2 cents, better than consensus for a -4 cent loss.

MARKET COMMENTS

Sep E-mini S&Ps (ESU15 +0.28%) this morning are up +6.00 points (+0.29%). Wednesday's closes: S&P 500 +0.10%, Dow Jones unch, Nasdaq +0.31%. The S&P 500 on Wednesday opened sharply lower and posted a 1-month low, but recovered and closed slightly higher. Stocks were undercut by weakness in auto makers, miners and consumer-goods companies with large sales to China after the yuan plunged to a 4-year low against the dollar. Another negative factor was the -108,000 decline in U.S. Jun JOLTS job openings, a bigger decline than expectations of -13,000 to 5.35 million. Stocks rebounded on (1) a rally in energy producers sparked by the rally in crude oil, and (2) speculation grew that the market volatility from China's yuan devaluation will prompt the Fed to delay an interest rate increase.

Sep 10-year T-note prices (ZNU15 -0.26%) this morning are down -9.5 ticks. Wednesday's closes: TYU5 +3.50, FVU5 +3.73. Sep T-notes on Wednesday rallied to a 3-1/4 month high and settled higher on the slump in global stock prices, which increased safe-haven demand for T-notes, and on reduced inflation expectations after the 10-year T-note breakeven inflation rate fell to a 4-3/4 month low. T-notes lost most of their gains after stocks recovered.

The dollar index (DXY00 +0.33%) this morning is up +0.280 (+0.29%). EUR/USD (^EURUSD) is down -0.0043 (-0.39%). USD/JPY (^USDJPY) is up +0.30 (+0.24%). Wednesday's closes: Dollar Index -1.028 (-1.06%), EUR/USD +0.0117 (+1.06%), USD/JPY -0.92 (-0.74%). The dollar index Wednesday slid to a 1-month low and closed lower on (1) concern that the Fed will delay a rate hike due to the Chinese volatility, and (2) strength in yen as USD/JPY fell to a 1-week low after the sell-off in global stocks boosted the safe-haven demand for the yen.

Sep crude oil (CLU15 -0.21%) this morning is up +15 cents (+0.35%) and Sep gasoline (RBU15 -1.00%) is down -0.0086 (-0.49%). Wednesday's closes: CLU5 +0.22 (+0.51%), RBU5 +0.0035 (+0.21%). Sep crude and gasoline on Wednesday closed higher with Sep gasoline at a 1-week high on the weak dollar and on the supportive EIA report that featured a -1.25 million bbl decline in gasoline inventories to an 8-1/4 month low (vs expectations of a -675,000 bbl decline) and the -0.7% decline in U.S. crude production.

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