OVERNIGHT MARKETS AND NEWS

September E-mini S&Ps (ESU15 -0.08%) are down -0.08% as weaker oil prices (CLU15 -1.53%) undercuts energy producers and leads the overall market lower with Chevron down -1.3% in pre-market trading. European stocks are up +0.42% after Chinese stocks closed higher and as Greek stocks rose after German Chancellor Merkel said she's confident the IMF will join Greece's third bailout if debt relief for Greece is included. Germany's lower house votes on the bailout on Wednesday and Merkel said that IMF Managing Director Lagarde made it clear she will back the IMF's participation in Greece's third bailout if conditions are met including an easing of terms on previous Greek aid loans. European automakers rose, led by a +1.5% gain in BMW AG, after Barclays Plc raised its rating on the stock to the equivalent of a buy. Asian stocks closed mixed: Japan +0.42%, Hong Kong -0.74%, China +0.71%, Taiwan -1.11%, Australia +0.21%, Singapore -1.51%, South Korea -0.82%, India -0.67%. Japanese stocks rose after Japan's Q2 GDP contracted less than expected, and Chinese stocks closed higher as the yuan stabilized.

The dollar index (DXY00 +0.26%) is up +0.23%. EUR/USD (^EURUSD) is down -0.22%. USD/JPY (^USDJPY) is up +0.19%.

Sep T-note prices (ZNU15 +0.15%) are up +5.5 ticks.

Japan Q2 GDP fell -1.6% q/q annualized, better than expectations of -1.8% q/q annualized, but still the steepest pace of contraction in a year. The Q2 GDP deflator rose +1.6% y/y, less than expectations of +2.1% y/y and the slowest pace of increase since Q1 of 2014.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Aug Empire manufacturing survey of general business conditions (expected +0.94 to 4.80, Jul +5.84 to 3.86), (2) Aug NAHB housing market index (expected +1 to 61, Jul unch at 60).

There are 3 of the Russell 1000 companies that reports earnings today: Estee Lauder (consensus $0.34), Urban Outfitters (0.49), Agilent Technologies (0.41).

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

Equity conferences during the remainder of this week include: Mitsubishi UFJ Securities - Conference: Tech Tour - Seattle on Mon, Mitsubishi UFJ Securities - Conference: Tech Tour - Silicon Valley on Mon, EnerCom The Oil & Gas Conference on Mon-Tue, Raymond James Telecom Investment Summit on Tue, ITG - Industry Conference: Midwest Industrials Conference - Milwaukee on Wed.

OVERNIGHT U.S. STOCK MOVERS

Micron (MU -4.24%) was downgraded to 'Neutral' from 'Outperform' at Wedbush.

Wal-Mart (WMT +0.37%) coverage was transitioned with an 'Overweight' at Stephens with a price target of $90.

The Fresh Market (TFM +1.33%) was downgraded to 'Market Perform' from 'Outperform' at BMO Capital.

Cisco (CSCO +1.15%) was downgraded to 'Equal Weight' from 'Overweight' at Morgan Stanley.

Tesla (TSLA +0.26%) jumped over 4% in pre-market trading after Morgan Stanley raised its price target on the stock to $465 from $280.

W.R. Grace (GRA +1.78%) was upgraded to 'Conviction Buy' from 'Buy' at Goldman Sachs with a $119 price target.

Copa Holdings (CPA -2.52%) was downgraded to 'Market Perform' from 'Outperform' at Cowen.

Primerica (PRI +1.94%) was upgraded to 'Buy' from 'Hold' at Jefferies.

NetApp (NTAP +0.42%) was downgraded to 'Sell' from 'Hold' at Summit Research.

JPMorgan Chase (JPM +0.50%) was upgraded to Outperform from Market Perform at Keefe Bruyette with a $77 price target.

PolyOne (POL +0.96%) was upgraded to 'Buy' from 'Neutral' at Goldman Sachs.

J.C. Penney (JCP +5.58%) was initiated with a 'Buy' at B. Riley with a $12.50 price target.

Pershing Square Capital confirmed it liquidate its position in Allergan (AGN -0.36%) .

Billionaire investor Carl confirmed he liquidated his Netflix (NFLX -0.27%) position and has new positions in Gannet (GCI -3.26%) and Cheniere Energy (LNG +0.20%) .

MARKET COMMENTS

Sep E-mini S&Ps (ESU15 -0.08%) this morning are down -1.75 points (-0.08%). Friday's closes: S&P 500 +0.39%, Dow Jones +0.40%, Nasdaq +0.25%. The S&P 500 on Friday closed higher on support from a rally in Chinese stocks after the yuan stabilized and on the strong +0.6% increase in U.S. Jul industrial production. Stocks were undercut, however, by the -0.2 point decline in the U.S. Aug University of Michigan consumer sentiment to 92.9, weaker than expectations of +0.4 to 93.5.

Sep 10-year T-note prices (ZNU15 +0.15%) this morning are up +5.5 ticks. Friday's closes: TYU5 -4.00, FVU5 -3.75. Sep T-notes on Friday closed lower on the stronger-than-expected U.S. July industrial production report and on the +0.3% m/m and +0.6% y/y increase in Jul PPI ex food & energy, stronger than expectations of +0.1% m/m and +0.5% y/y. T-notes found support on the unexpected -0.2 point decline in the U.S. Aug University of Michigan consumer sentiment index.

The dollar index (DXY00 +0.26%) this morning isup +0.222 (+0.23%) . EUR/USD (^EURUSD) is down -0.0024 (-0.22%). USD/JPY (^USDJPY) is up +0.23 (+0.19%). Friday's closes: Dollar Index +0.075 (+0.08%), EUR/USD -0.0042 (-0.38%), USD/JPY -0.135 (-0.11%). The dollar index on Friday closed higher on (1) the stronger-than-expected U.S. July industrial production report, which increases the likelihood for a Fed rate hike, (2) weakness in EUR/USD after Eurozone Q2 GDP grew at a slower-than-expected pace, and (3) stability in the Chinese yuan, which reduced speculation the Fed may need to delay a tightening due to Chinese-induced financial market stresses.

Sep crude oil (CLU15 -1.53%) this morning is down -50 cents (-1.18%) and Sep gasoline (RBU15 -1.07%) is down -0.0143 (-0.85%). Friday's closes: CLU5 +0.27 (+0.64%), RBU5 -0.0279 (-1.63%). Sep crude oil and gasoline on Friday settled mixed. Sep crude recovered from a 6-1/3 year low and closed higher on the stronger than expected U.S. Jul industrial production report and on the rally in Chinese stock prices that reduced Chinese economic concerns. Negative factors for crude oil included the the stronger dollar and and persistent global glut of crude oil.

 -0.2 point decline in the U.S. Aug University of Michigan consumer sentiment to 92.9, weaker than expectations of +0.4 to 93.5.

Sep 10-year T-note prices (ZNU15 +0.15%) this morning are up +5.5 ticks. Friday's closes: TYU5 -4.00, FVU5 -3.75. Sep T-notes on Friday closed lower on the stronger-than-expected U.S. July industrial production report and on the +0.3% m/m and +0.6% y/y increase in Jul PPI ex food & energy, stronger than expectations of +0.1% m/m and +0.5% y/y. T-notes found support on the unexpected -0.2 point decline in the U.S. Aug University of Michigan consumer sentiment index.

The dollar index (DXY00 +0.26%) this morning isup +0.222 (+0.23%) . EUR/USD (^EURUSD) is down -0.0024 (-0.22%). USD/JPY (^USDJPY) is up +0.23 (+0.19%). Friday's closes: Dollar Index +0.075 (+0.08%), EUR/USD -0.0042 (-0.38%), USD/JPY -0.135 (-0.11%). The dollar index on Friday closed higher on (1) the stronger-than-expected U.S. July industrial production report, which increases the likelihood for a Fed rate hike, (2) weakness in EUR/USD after Eurozone Q2 GDP grew at a slower-than-expected pace, and (3) stability in the Chinese yuan, which reduced speculation the Fed may need to delay a tightening due to Chinese-induced financial market stresses.

Sep crude oil (CLU15 -1.53%) this morning is down -50 cents (-1.18%) and Sep gasoline (RBU15 -1.07%) is down -0.0143 (-0.85%). Friday's closes: CLU5 +0.27 (+0.64%), RBU5 -0.0279 (-1.63%). Sep crude oil and gasoline on Friday settled mixed. Sep crude recovered from a 6-1/3 year low and closed higher on the stronger than expected U.S. Jul industrial production report and on the rally in Chinese stock prices that reduced Chinese economic concerns. Negative factors for crude oil included the the stronger dollar and and persistent global glut of crude oil.

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