Jun E-mini S&Ps (ESM18 -0.13%) this morning are down -0.21% and European stocks are up +0.27%. Trade was mixed as weaker-than-expected Q1 GDP data in France and the UK was offset by reduced geopolitical tensions in Asia after North and South Korea agreed to pursue the "complete denuclearization" of the Korean Peninsula. European exporters also rose after EUR/USD tumbled to a new 3-1/2 month low. Asian stocks settled higher: Japan +0.66%, Hong Kong +0.91%, China +0.23%, Taiwan +0.62%, Australia +0.73%, Singapore +0.20%, South Korea +0.86%, India +0.74%. A rally in bank stocks lifted China's Shanghai Composite after China's five biggest banks reported better-than-expected quarterly earnings results. Japan's Nikkei Stock Index climbed to a 2-month high as weakness in the yen boosted exporter stocks after USD/JPY soared to a new 2-1/2 month high when the BOJ left its stimulus program unchanged following its 2-day policy meeting.

The dollar index (DXY00 +0.29%) is up +0.28% at a new 3-1/2 month high. EUR/USD (^EURUSD -0.19%) is down -0.19% at a 3-1/2 month low after the German 10-year bund yield fell to a 1-week low, which undercuts the euro's interest rate differentials. USD/JPY (^USDJPY +0.02%) is up +0.04% at a new 2-1/2 month high as geopolitical risks eased on the Korean Peninsula and reduced the safe-haven demand for the yen after North Korea and South Korea agreed to end their seven-decade war and pursue the "complete denuclearization" of the Korean Peninsula.

Jun 10-year T-note prices (ZNM18 +0-035) are up +3.5 ticks.

German Mar unemployment fell -7,000 to 2.37 million, a smaller decline than expectations of -15,000. The Mar jobless rate was unch at a record low of 5.3% (data from 1990), right on expectations.

Eurozone Apr economic confidence was unch at 112.7, stronger than expectations of -0.6 to 112.0. The Apr business climate indicator fell -0.09 to 1.35, stronger than expectations of -0.06 to 1.28.

ECB Executive Board member Mersch said "underlying inflation continues to be subdued and has yet to show convincing signs of a sustained upward trend."

UK Q1 GDP rose +0.1% q/q and +1.2% y/y, weaker than expectations of +0.3% q/q and +1.4% y/y.

Japan Mar industrial production rose +1.2% m/m and +2.2% y/y, stronger than expectations of +0.5% m/m and +2.0% y/y.

The Japan Mar jobless rate was unch at 2.5%, right on expectations. The Mar job-to-applicant ratio rose +0.01 to a 44-year high of 1.59, right on expectations.

France Q1 GDP rose +0.3% q/q and +2.1% y/y, weaker than expectations of +0.4% q/q and +2.3% y/y.

U.S. Stock Preview

Key U.S. news today includes: (1) Q1 GDP (expected +2.0% q/q annualized, Q4 +2.9%), (2) Q1 employment cost index (expected +0.7%, Q4 +0.6%), 93) final-April University of Michigan U.S. consumer sentiment index (expected +0.2 to 98.0, prelim -3.6 to 97.8).

Notable S&P 500 earnings reports today include: Exxon Mobil (consensus $1.10), Phillips 66 (0.91), Charter Communications (0.51), Interpublic (0.05), Rockwell Collins (1.78), Chevron (1.45), Moody's 1.78), Weyerhaeuser (0.33).

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

Equity conferences this week: American Academy of Neurology Meeting on Mon-Fri.

Market Comments

June S&P 500 E-minis (ESM18 -0.13%) this morning are down -5.75 points (-0.21%). Thursday's closes: S&P 500 +1.04%, Dow Jones +0.99%, Nasdaq +2.08%. The S&P 500 on Thursday closed higher on the -24,00 decline in U.S. weekly initial unemployment claims to a 48-1/3 year low of 209,000 (better than expectations of -2,000 to 230,000) and the +2.6% gain in U.S. Mar durable goods orders (stronger than expectations of +1.6%). There was also strength in technology stocks after Facebook and Advanced Micro Devices jumped when they reported better-than-expected Q1 earnings.

June 10-year T-notes (ZNM18 +0-035) this morning are up +3.5 ticks. Thursday's closes: TYM8 +7.50, FVM8 +2.50. Jun 10-year T-notes on Thursday closed higher on carry-over support from a rally in German bunds and on the unexpected -0.1% decline in U.S. Mar capital goods orders nondefense ex aircraft, weaker than expectations of +0.5%.

The dollar index (DXY00 +0.29%) this morning is up +0.257 (+0.28%) at a new 3-1/2 month high. EUR/USD (^EURUSD-0.19%) is down -0.0023 (-0.19%) at a 3-1/2 month low. USD/JPY (^USDJPY +0.02%) is up +0.04 (+0.04%) at a 2-1/2 month high. Thursday's closes: Dollar Index +0.389 (+0.43%), EUR/USD -0.0058 (-0.48%), USD/JPY -0.13 (-0.12%). The dollar index on Thursday climbed to a fresh 3-1/2 month high and settled higher on the slide in U.S. weekly jobless claims to a 48-1/3 year low of 209,000, which was hawkish for Fed policy. In addition, there was weakness in EUR/USD, which tumbled to a 3-1/2 month low, after the German 10-year bund yield fell to a 4-session low, thus undercutting the euro's interest rate differentials.

Metals prices this morning are mixed with Jun gold (GCM18 +0.21%) +2.7 (+0.20%), May silver (SIK18 -0.10%) +0.014 (+0.08%), and May copper (HGK18 -1.75%) -0.056 (-1.78%) at a 1-week low. Thursday's closes: Jun gold -4.90 (-0.37%), May silver -0.011 (-0.07%), May copper -0.0325 (-1.25%). Metals on Thursday closed lower with Jun gold at a 1-month low and May silver at a 2-week low. Metals prices were undercut by the rally in the dollar index to a 3-1/2 month high and by the rally in stocks that reduced the safe-haven demand for precious metals.

Jun WTI crude oil prices (CLM18 -0.13%) this morning are down -18 cents (-0.26%) and Jun gasoline (RBM18 +0.16%) is -0.0002 (-0.01%). Thursday's closes: Jun crude +0.14 (+0.21%), Jun gasoline -0.0217 (+1.04%). Jun crude oil and gasoline on Thursday closed higher on French President Macron's comment that he thinks President Trump will abandon the Iranian nuclear deal and reinstate sanctions on Iran. Crude oil prices were also boosted by the rally in the crack spread to a 5-1/2 month high, which provides the increased incentive for refiners to purchase crude to refine into gasoline. Crude oil prices were undercut by the rally in the dollar index to a 3-1/2 month high.

Overnight U.S. Stock Movers

Hershey (HSY -0.27%) was downgraded to 'Sell' from 'Hold' at Societe Generale with a price target of $85.

Amazon.com (AMZN +3.96%) rallied 6% in after-hours trading after it reported Q1 net sales of $51 billion, better than consensus of $50 billion, and forecast Q2 net sales of $51 billion to $54 billion, the midpoint above consensus of $52.26 billion.

Microsoft (MSFT +2.11%) rose 3% in pre-market trading after it was upgraded to 'Overweight' from 'Neutral' at JPMorgan Chase.

Expedia Group (EXPE -1.93%) climbed almost 9% in after-hours trading after it reported Q1 revenue of $2.51 billion, stronger than consensus of $2.44 billion.

Baidu (BIDU +3.15%) rose more than 5% in after-hours trading after it reported Q1 revenue of $3.33 billion, better than consensus of $3.20 billion, and forecast Q2 revenue of $3.97 billion to $4.17 billion, higher than consensus of $3.85 billion.

Starbucks (SBUX +2.89%) slid more than 2% in after-hours trading after it reported Q2 adjusted EPS of 53 cents, right on expectations.

Intel (INTC +3.25%) jumped nearly 8% in after-hours trading after it reported Q1 revenue of $16.1 billion, above consensus of $15.06 billion, and raised guidance on full-year revenue to $67.5 billion + or - $1 billion from a prior estimate of $65 billion + or - $1 billion, better than consensus of $65.1 billion.

Western Digital (WDC +2.32%) climbed 3% in after-hours trading after it reported Q3 adjusted EPS of $3.63, well above consensus of $3.30.

Maxim Integrated Products (MXIM +1.58%) lost almost 3% in after-hours trading after it forecast Q4 revenue of $610 million to $650 million, the midpoint below consensus of $643.2 million.

United States Steel (X +1.75%) dropped 5% in after-hours trading after it forecast Q2 adjusted Ebitda of $400 million, weaker than consensus of $$451.7 million.

Boyd Gaming (BYD -0.89%) rose 2% in after-hours trading after it reported Q1 adjusted Ebitda of $160.5 million, higher than consensus of $158.6 million.

Callaway Golf (ELY +0.60%) climbed nearly 4% in after-hours trading after it reported Q1 net sales of $403.2 million, higher than consensus of $371.7 million, and forecast full-year sales of $1.17 billion to $1.19 billion, above consensus of $1.13 billion.

Flex Ltd (FLEX +0.30%) sank 17% in after-hours trading after it forecast Q1 adjusted EPS of 22 cents to 26 cents, weaker than consensus of 31 cents.

Covanta Holding (CVA +0.32%) climbed 3% in after-hours trading after it reported Q1 operating revenue of $458 million, higher than consensus of $431.3 million.

Mattel (MAT +3.71%) rose 4% in after-hours trading after it reported Q1 net sales of $708.4 million, better than consensus of $689.8 million.