OVERNIGHT MARKETS AND NEWS

September E-mini S&Ps (ESU15 -0.24%) are down -0.15% and European stocks are little changed, up +0.02%. Losses in basic-resource companies and energy producers are pressuring stocks with copper prices (HGU15 -1.70%) sliding to a new 6-year low and crude oil (CLU15 -0.69%) just above Friday's 6-1/3 year low. European stocks recovered losses and moved higher as technology and health-care stocks gained. A 6% plunge in Chinese stocks also undercut U.S. and European equity markets after Chinese data showed Jul home prices rose, which reduced speculation the government will boost stimulus measures. Asian stocks closed lower: Japan -0.32%, Hong Kong -1.43%, China -6.15%, Taiwan -0.44%, Australia -1.20%, Singapore -0.58%, South Korea -0.07%, India -0.17%. China's Shanghai Composite fell to a 1-week low as the yuan weakened, which pressured other Asian markets on economic growth concerns.

The dollar index (DXY00 -0.05%) is up +0.02%. EUR/USD (^EURUSD) is down -0.16%. USD/JPY (^USDJPY) is down -0.09%. GBP/USD is up +0.73% at a 1-1/2 month high after UK Jul core CPI rose +1.2% y/y, higher than expectations of +0.9% y/y and the fastest pace of increase in 5 months.

Sep T-note prices (ZNU15 -0.05%) are down -2.5 ticks.

China Jul home prices rose in 31 cities of the 70 tracked by the government, up from 27 in Jun, while prices dropped in 29 cities, the first time in 16 months that Chinese home price rose more than declined.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Jul housing starts (expected +0.8% to 1.183 million) and (2) Jul building permits (expected -8.0% to 1.230 million).

There are 4 of the S&P 500 companies that reports earnings today: Home Depot (consensus $1.71), Wal-Mart (1.12), TJX Companies (0.76), Analog Devices (0.75).

U.S. IPO's scheduled to price today include: Amplify Snack Brands ($18.00), Integra LifeSciences Holdings (61.00), RSP Permian (22.50), Central Pacific Financial Corp. (22.35), Retail Opportunity Investments (16.55), Roadrunner Transportation Systems (24.75), Zynerba Pharmaceuticals (14.00).

Equity conferences during the remainder of this week include: 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

Wal-Mart (WMT -0.65%) fell 2% in pre-market trading after it reported Q2 EPS of $1.08, below consensus of $1.12.

Home Depot (HD -0.04%) reported Q2 EPS of $1.71, right on consensus.

Dick's Sporting (DKS +0.60%) reported Q2 EPS excluding items of 67 cents, weaker than consensus of 75 cents.

BofA/Merrill Lynch downgraded SanDisk (SNDK +0.43%) two notches to 'Underperform' from 'Buy' and lowered its price target to $40 from $75.

Disney (DIS +1.76%) was downgraded to 'Market Perform' from 'Outperform' at Wells Fargo.

The Gap (GPS +0.73%) was initiated with an 'Underperform' at Wolfe Research with a price target of $30.

American Eagle (AEO +2.06%) was initiated with an 'Outperform' and a Top Pick at Wolfe Research with a price target of $22.

Abercrombie & Fitch (ANF +0.79%) was initiated with an 'Underperform' at Wolfe Research with a price target of $15.

Children's Place (PLCE +1.07%) was initiated with an 'Outperform' at Wolfe Research with a price target of $67.

MasTec (MTZ -0.69%) reported Q2 adjusted EPS of 10 cents, weaker than consensus of 15 cents, and then lowered guidance on fiscal 2015 adjusted EPS to 73 cents-83 cents from $1.45, well below consensus of $1.14.

Scientific Games (SGMS +0.25%) was initiated with a 'Buy' at Sterne Agee CRT with a price target of $18.

Abiomed (ABMD +2.43%) was initiated with a 'Buy' at CRT Capital with a price target of $130.

International Game (IGT -0.66%) was downgraded to 'Underperform' from 'Neutral' at Sterne Agee CRT.

Agilent (A +0.44%) reported Q3 EPS of 44 cents, better than consensus of 41 cents.

Urban Outfitters (URBN -0.28%) reported Q2 EPS of 52 cents, higher than consensus of 49 cents.

MARKET COMMENTS

Sep E-mini S&Ps (ESU15 -0.24%) this morning are down -3.25 points (-0.15%). Monday's closes: S&P 500 +0.52%, Dow Jones +0.39%, Nasdaq +0.79%. Stocks closed higher Monday on carry-over support from a rally in Chinese stocks along with strength in U.S. homebuilders after the Aug NAHB housing market index rose to the highest in 9-3/4 years (+1 to 61)). Gains were limited after the Aug Empire manufacturing survey of business conditions contracted at the fastest pace in 6-1/3 years (-18.78 to 14.92 vs. expectations of +0.64 to 4.50). Another negative for stocks was the slide in crude oil that undercut energy producers.

Sep 10-year T-notes (ZNU15 -0.05%) this morning are down -2.5 ticks. Monday's closes: TYU5 +13.00, FVU5 +6.75. Sep T-notes settled higher Monday after the Aug Empire manufacturing index unexpectedly contracted at the fastest pace in 6-1/3 years. Strength in T-notes were contained after the Aug NAHB housing market index rose to the highest in 9-3/4 years.

The dollar index (DXY00 -0.05%) this morning is up +0.024 (+0.02%). EUR/USD (^EURUSD) is down -0.0018 (-0.16%). USD/JPY (^USDJPY) is down -0.11 (-0.09%). Monday's closes: Dollar Index unch, EUR/USD -0.0027 (-0.24%), USD/JPY +0.057 (+0.05%). The dollar index closed unchanged Monday as an increase in the Aug NAHB housing market index to a 9-3/4 year high offset weakness in the Aug Empire manufacturing survey that unexpectedly contracted at its fastest pace in 6-1/3 years.

Sep crude oil (CLU15 -0.69%) this morning is down -20 cents (-0.48%) and Sep gasoline (RBU15 -0.52%) is down -0.0093 (-0.56%). Monday's closes: CLU5 -0.62 (-1.46%), RBU5 -0.0297 (-1.76%). Sep crude and gasoline closed lower Monday on unexpected weakness in the Aug Empire manufacturing survey which contracted at its steepest pace in 6-1/3 years along with comments from Iran's OPEC representative who said OPEC could boost crude production to a record 33 million bpd once international sanctions are removed against Iran.

Click on picture to enlarge