OVERNIGHT MARKETS AND NEWS

Mar E-mini S&Ps (ESH18 +0.43%) this morning are up +0.33% on reduced interest rate concerns as the 10-year T-note yield falls below 2.90%. Also, increased M&A activity gave equities a boost after General Mills agreed to acquire Blue Buffalo Pet Products for about $8 billion. European stocks are down -0.03% due to losses in auto makers. The downside was limited for European stocks after the 10-year German bund yield fell to a 2-week low of 0.663%. Asian stocks settled higher: Japan +0.72%, Hong Kong +0.97%, China +0.63%, Taiwan +1.24%, Australia +0.82%, Singapore +1.28%, South Korea +1.49%, India +0.95%. China's Shanghai Composite Stock Index climbed to a 2-week high in the second day of trade after it reopened following the week-long Lunar New Year holiday and Japanese stocks gained on reduced deflation concerns after the Japan Jan national CPI rose +1.4% y/y, the biggest increase in 2-3/4 years.

The dollar index (DXY00 +0.12%) is up +0.13%. EUR/USD (^EURUSD) is down -0.19%. USD/JPY (^USDJPY) is up +0.03%.

Mar 10-year T-note prices (ZNH18 +0.16%) are up +5 ticks.

The Japan Jan national CPI rose +1.4% y/y, stronger than expectations of +1.3% y/y and the biggest increase in 2-3/4 years. The Jan national CPI ex fresh food rose +0.9% y/y, stronger than expectations of +0.8% y/y. The Jan national CPI ex fresh food & energy rose +0.4% y/y, stronger than expectations of +0.3% y/y and the biggest increase in 17 months.

The Eurozone Jan CPI was left unrevised at +1.3% y/y and the Jan core CPI was left unrevised at +1.0% y/y.

The German Q4 GDP was left unrevised at +0.6% q/q and +2.9% y/y.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) USDA weekly Export Sales, (2) NY Fed President Dudley and Boston Fed President Rosengren appear on panel on Fed’s balance sheet at Chicago Booth School’s annual monetary policy symposium in New York, (3) Cleveland Fed President Loretta Mester (voter) and ECB Executive Board member Benoit Coeure participate in a panel discussion on a review of the objectives of monetary policy at the 2018 U.S. Monetary Policy Forum, (4) USDA Jan Cattle on Feed, (5) San Francisco Fed President Williams speaks on U.S. outlook for economy and monetary policy at the City Club of Los Angeles.

Notable S&P 500 earnings reports today include: Public Services Enterprise Group (consensus $0.56), Cabot Oil & Gas (0.11), Pinnacle West Capital (0.12), Entergy (0.46), Eversource Energy (0.75).

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

Equity conferences this week: CAGNY Investor Conference on Tue-Fri.

OVERNIGHT U.S. STOCK MOVERS

Blue Buffalo Pet Products (BUFF -1.95%) rallied 17% in pre-market trading after it was acquired by General Mills for $8 billion or $40 a share.

HP Inc (HPQ +1.04%) jumped 8% in after-hours trading after it reported Q1 adjusted EPS of 48 cents, higher than consensus of 42 cents, and then raised guidance on fiscal 2018 adjusted EPS to $1.90 to $2.00 from a Nov 21 estimate of $1.75 to $1.85, above consensus of $1.81.

Mercadolibre (MELI -1.03%) fell 3% in after-hours trading after it reported Q4 adjusted EPS of 20 cents, below consensus of 51 cents.

Intuit (INTU -0.70%) lost over 2% in after-hours trading after it said it sees Q3 adjusted EPS of $4.57 to $4.62, below consensus of $4.68.

Edison International (EIX +1.10%) rose almost 4% in after-hours trading after it reported Q4 core EPS of $1.10, higher than consensus of 92 cents.

BJ's Restaurants (BJRI +0.39%) rallied almost 8% in after-hours trading after it reported Q4 EPS of $1.12, well above consensus of 32 cents.

Wingstop (WING +2.30%) dropped 9% in after-hours trading after it forecast full-year adjusted EPS of 75 cents, weaker than consensus of 87 cents

Trade Desk (TTD -2.83%) rallied 11% in after-hours trading after it reported Q4 revenue of $102.6 million, above consensus of $101.7 million, and said it sees Q1 revenue of $73 million, better than consensus of $65 million.

GoDaddy (GDDY -0.48%) rose nearly 4% in after-hours trading after it forecast Q1 revenue of $620 million to $625 million, better than consensus of $598.9 million.

BioTelemetry (BEAT -3.64%) rallied over 8% in after-hours trading after it reported Q4 revenue of $91.7 million, above consensus of $88.3 million.

Universal Display (OLED -0.45%) tumbled 12% in after-hours trading after it said it sees full-year revenue of $350 million to $380 million, weaker than consensus of $394.2 million.

Acacia Communications (ACIA -3.68%) sank 10% in after-hours trading after it reported Q4 revenue of $86.6 million, weaker than consensus of $88.4 million, and then said it sees Q1 revenue of $67 million to $74 million, well below consensus of $93.2 million.

Planet Fitness (PLNT -2.64%) jumped 9% in after-hours trading after it reported Q4 revenue of $134.0 million, better than consensus $131.2 million.

First Solar (FSLR -0.63%) slid 3% in after-hours trading after it reported Q4 net sales of $339.2 million, below consensus of $435.6 million.

Hewlett Packard Enterprise (HPE +0.98%) rallied 14% in after-hours trading after it reported Q1 adjusted EPS of 34 cents, above consensus of 22 cents, and said it sees Q2 adjusted EPS of 29 cents to 33 cents, better than consensus of 26 cents.

Adamas Pharmaceuticals (ADMS +0.18%) fell nearly 5% in after-hours trading after it reported a Q4 loss of -$1.27 per share, weaker than consensus of -$1.15 a share.

Immersion (IMMR +4.59%) jumped 10% in after-hours trading after it reported Q4 revenue of $6.9 million, better than consensus of $6.1 million, and said it sees 2018 revenue of $80 million to $95 million, well above consensus of $52.2 million.

MARKET COMMENTS

Mar S&P 500 E-mini stock futures (ESH18 +0.43%) this morning are up +9.00 points (+0.33%). Thursday's closes: S&P 500 +0.10%, Dow Jones +0.66%, Nasdaq +0.04%. The S&P 500 on Thursday closed higher on the unexpected -7,000 decline in U.S. weekly jobless claims to 222,000, better than expectations of no change at 230,000, and on comments from Fed Governor Quarles who said the U.S. economy is in the "best shape" since the crisis. There was also strength in energy stocks after crude oil prices rose +1.77% to a 2-week high.

Mar 10-year T-note prices (ZNH18 +0.16%) this morning are up +5 ticks. Thursday's closes: TYH8 +7.00, FVH8 +4.25. Mar 10-year T-notes on Thursday closed higher on carry-over support from a rally in German bunds after the German Feb IFO business climate fell more than expected to a 5-month low. T-note prices were also supported by comments from St. Louis Fed President Bullard who warned that raising interest rates too quickly this year may have a restrictive effect on the economy.

The dollar index (DXY00 +0.12%) this morning is up +0.119 (+0.13%). EUR/USD (^EURUSD) is down -0.0024 (-0.19%) and USD/JPY (^USDJPY) is +0.03 (+0.03%). Thursday's closes: Dollar Index -0.264 (-0.29%), EUR/USD +0.0046 (+0.37%), USD/JPY -1.03 (-0.96%). The dollar index on Thursday closed lower on dovish comments from St. Louis Fed President Bullard who said the Fed needs to be careful not to increase interest rates too quickly this year because that could have a restrictive effect on the economy. The dollar was also undercut by the decline in T-note yields, which is negative for the dollar's interest rate differentials.

Apr crude oil (CLJ18 -0.08%) this morning is down -17 cents (-0.27%) and Apr gasoline (RBJ18 -0.24%) is -0.0080 (-0.41%). Thursday's closes: Apr WTI crude +1.09 (+1.77%), Apr gasoline +0.0161 (+0.83%). Apr crude oil and gasoline on Thursday rallied to 2-week highs and closed higher. Crude oil prices were supported by a weaker dollar, the unexpected -1.62 million bbl decline in EIA crude inventories (weaker than expectations for a +3.0 million bbl build), and the -2.66 million bbl decline in crude supplies at Cushing to a 3-year low.

Metals prices this morning are weaker with Apr gold (GCJ18 -0.02%) -0.2 (-0.02%), Mar silver (SIH18 -0.10%) -0.007 (-0.04%), and Mar copper (HGH18 -0.94%) -0.031 (-0.96%). Thursday's closes: Apr gold +0.6 (+0.05%), Mar silver -0.030 (-0.18%), Mar copper +0.0255 (+0.79%). Metals on Thursday settled mixed. Metals were supported by a weaker dollar and by speculation that Chinese copper demand will rebound with the end of the Chinese Lunar New Year holiday. Precious metals prices were undercut by the rally in stocks that reduced the safe-haven demand for precious metals.