OVERNIGHT MARKETS AND NEWS

March E-mini S&Ps (ESH16 +0.45%) are up +0.34% and European stocks are up +1.21%, both at 1-week highs in thin holiday trade. Strength in energy and commodity producers are leading the overall market higher as crude oil and copper prices recovered. Stronger-than-expected Italian consumer confidence gave European stocks a boost, while a rebound in Chinese stocks also gave global bourses a lift after China's Shanghai Composite erased an early decline from a 1-week low and closed higher. The Russian ruble tumbled to a 1-year low of 72.83 against the dollar as weak oil prices strain Russian revenue flows and Russian Economy Minister Ulyukayev warned of risks to Russia's budget from crude priced in rubles. Asian stocks settled mostly higher: Japan +0.58%, Hong Kong +0.36%, China +0.85%, Taiwan -0.77%, Australia +1.15%, Singapore +0.45%, South Korea -0.24%, India +0.17%.

The dollar index (DXY00 +0.10%) is up +0.11%. EUR/USD (^EURUSD) is up +0.02%. USD/JPY (^USDJPY) is up +0.02%.

Mar T-note prices (ZNH16 -0.11%) are down -4 ticks.

Italy Dec consumer confidence fell -0.8 to 117.6, stronger than expectations of -1.4 to 117.0.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Oct S&P/CaseShiller composite-20 home price index (expected +0.60% m/m and +5.60% y/y, Sep +0.61% m/m and +5.45% y/y), (2) Dec consumer confidence from the Conference Board (expected +3.4 to 93.8, Nov -8.7 to 90.4), and (3) the Treasury's auction of $35 billion of 5-year T-notes.

There are 2 of the Russell 3000 companies that report earnings today: Calavo Growers (consensus $0.45), Barracuda Networks (0.07).

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

Equity conferences this week: none.

OVERNIGHT U.S. STOCK MOVERS

Rambus (RMBS +0.34%) gained nearly 2% in after-hours trading after it said it renewed a patent license pact with Toshiba.

Pep Boys Manny, Moe & Jack (PBY -0.57%) climbed over 5% in after-hours trading after Carl Icahn raised his offer for Pep Boys to $18.50 a share, above the $17 a share offer Bridgestone had made for the company.

Manitowoc (MTW -3.76%) jumped 6% in after-hours trading after the company named Barry Pennypacker the CEO of Manitowoc Cranes.

IRobot (IRBT -0.28%) authorized a new share repurchase program that may buy up to 1 million shares beginning Jan 4 through Dec 31, 2016.

Chimerix (CMRX -81.39%) was downgraded to 'Neutral' from 'Overweight' at JPMorgan Chase.

Whole Foods Markets (WFM -0.72%) agreed to pay $500,000 to settle an investigation that it overcharged customers for prepackaged food in New York City.

Willis Group Holdings (WSH +0.28%) rose over 3% in after-hours trading after it was announced that Willis will replace Fossil Group (FOSL -2.26%) in the S&P 500 after the close of trading Monday, Jan 4.

Exact Sciences (EXAS +0.42%) gained over 1% in after-hours trading after it filed a Form 4 with the SEC, a sign of insider buying of the stock.

Lifelock (LOCK) rose almost 1% in after-hours trading after it said in an 8-K that it purchased identity theft services from Equifax Consumer Services.

TerraForm Power (TERP -2.30%) climbed nearly 5% in after-hours trading after it filed a Form 4 with the SEC, a sign of insider buying of the stock.

MARKET COMMENTS

Mar E-mini S&Ps (ESH16 +0.45%) this morning are up +7.00 points (+0.34%) at a 1-week high. Monday's closes: S&P 500 -0.22%, Dow Jones -0.14%, Nasdaq -0.03%. The S&P 500 on Monday closed lower on carryover weakness from a -2.59% decline in China's Shanghai Composite to a 1-week low and on weakness in energy and commodity producer stocks after crude oil prices fell by more than -3% and copper fell by nearly -2% to a 1-week low. Stocks recovered from their worst levels after technology stocks received a boost from a 2% rally in Alphabet Inc.

Mar 10-year T-notes (ZNH16 -0.11%) this morning are down -4 ticks. Monday's closes: TYH6 +3.00, FVH6 +0.50. Mar T-notes on Monday closed higher on concern about global growth after China's Nov industrial profits declined for a sixth month and on the slide in stocks that boosted the safe-haven demand for T-Notes.

The dollar index (DXY00 +0.10%) this morning is up +0.108 (+0.11%). EUR/USD (^EURUSD) is up +0.0002 (+0.02%). USD/JPY (^USDJPY) is up +0.03 (+0.02%). Monday's closes: Dollar Index +0.072 (+0.07%), EUR/USD +0.0008 (+0.07%), USD/JPY +0.07 (-0.06%). The dollar index on Monday closed higher on weakness in the Chinese yuan which fell to a near 4-1/2 year low of 6.4879 per dollar on concern capital will continue to flow out of China after China Nov industrial profits declined for a sixth month. EUR/USD was undercut by euro-negative comments from ECB Executive Board member Mersch who said the ECB still has "ammunition and firepower" and that QE will run "as long as necessary."

Feb crude oil (CLG16 +0.41%) this morning is up +12 cents (+0.33%) and Feb gasoline (RBG16 -0.68%) is down -0.0042 (-0.34%). Monday's closes: CLG6 -1.41 (-3.70%), RBG6 -0.0355 (-2.78%). Feb crude and gasoline on Monday closed sharply lower on concern that Iran will boost its crude oil exports into an already oversupplied global oil market after Iran's oil minister said Iran's "priority" is to boost its crude exports to pre-sanction levels as soon as sanctions on its oil exports are lifted. Crude oil was also hurt by the drop in the Shanghai Composite stock index by -2.59% to a 1-week low.