OVERNIGHT MARKETS AND NEWS

Mar E-mini S&Ps (ESH18 -0.61%) this morning are down -0.72% at a 2-week low on concern a stronger-than-expected U.S. Jan payroll report this morning could prompt the Fed into a faster pace of tightening. The 10-year T-note yield climbed to a new 3-3/4 year high of 2.799% in overnight trade. Threats of higher interest rates are also weighing on European stocks that are down -1.12% at a 4-week low. The 10-year German bund yield jumped to a 2-1/3 year high of 0.752% on hawkish comments from ECB Executive Board member Coeure who said, "a reappraisal of investors' view about future risks to global inflation may cause a correction of global risk premia." Asian stocks settled mostly lower: Japan -0.90%, Hong Kong -0.12%, China +0.44%, Taiwan -0.30%, Australia +0.51%, Singapore -0.49%, South Korea -1.90%, India -2.34%. In a response to rising Japanese bond yields, the BOJ offered to buy 10-year notes at a fixed rate of 0.11% as bond yields rose above their 0.10% target. It was the first time since July the BOJ expanded its bond purchases and dampened speculation the BOJ was moving closer to ending QE. China's Shanghai Composite rebounded from a 3-1/2 week low and erased losses in the final hour of trading on speculation state-sponsored funds entered the market to buy stocks.

The dollar index (DXY00 +0.20%) is up +0.20%. EUR/USD (^EURUSD) is down -0.17%. USD/JPY (^USDJPY) is up +0.43% at a 1-week high after the BOJ offered to buy an unlimited amount of bonds at a fixed rate for the first time since July, which undercut the yen.

Mar 10-year T-note prices (ZNH18 -0.05%) are down -3 ticks at a new contract low.

ECB Executive Board member Coeure said, "from a financial stability perspective, a low inflation risk premium may be a matter of concern if it indicates complacency about future adjustments."

Eurozone Dec PPI of +0.2% m/m and +2.2% y/y was slightly weaker than expectations of +0.2% m/m and +2.3% y/y.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Jan non-farm payrolls (expected +180,000, Dec +148,000) and Jan unemployment rate (expected unch at 4.1%, Dec unch at 4.1%), (2) Jan average hourly earnings (expected +0.2% m/m and +2.6% y/y, Dec +0.3% m/m and +2.5% y/y), (3) final-Jan University of Michigan U.S. consumer sentiment (expected +0.6 to 95.0, prelim-Jan -1.5 to 94.4), (4) Dec factory orders (expected +1.5%, Nov +1.3% and +0.8% ex transportation).

Notable S&P 500 earnings reports today include: Exxon Mobil (consensus $1.03), Merck (0.94), Weyerhaeuser (0.35), Aon (2.35), Chevron (1.22), Phillips 66 (0.88), Charter Communications (0.88).

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

Equity conferences this week: none.

OVERNIGHT U.S. STOCK MOVERS

Alphabet (GOOGL -0.05%) fell nearly 4% in pre-market trading after it reported Q4 EPS of $9.70, below consensus of $10.04.

Amazon.com (AMZN -4.20%) jumped almost 6% in pre-market trading after it reported Q4 net sales of $60.45 billion, above consensus of $59.84 billion, and said it sees Q1 net sales of $47.75 billion to $50.75 billion, the midpoint higher than consensus of $48.70 billion.

Apple (AAPL +0.21%) rebounded from a 3% loss and rose nearly 2% in after-hours trading on optimism its profit-margins will expand after the average selling price for the iPhone in Q1 rose 14% y/y to $796. Apple had initially declined in after-hours trading after it forecast Q2 revenue of $60 billion to $62 billion, below consensus of $65.88 billion.

Amgen (AMGN -0.26%) fell 3% in after-hours trading after it reported Q4 revenue of $5.80 billion, below consensus of $5.85 billion, and then said it sees 2018 revenue of $21,8 billion to $22.8 billion, weaker than consensus of $22.9 billion.

Tableau Software (DATA +0.36%) rallied 15% in after-hours trading after it reported Q4 adjusted EPS of 12 cents, four times above consensus of 3 cents.

athenahealth (ATHN -0.32%) rose 4% in after-hours trading after it reported Q4 adjusted EPS of $1.11, well above consensus of 63 cents.

Deckers Outdoor (DECK +1.81%) climbed 5% in after-hours trading after it reported Q3 adjusted EPS of $4.97, well above consensus of $3.84, and then said it sees full-year adjusted EPS of $5.37 to $5.42, higher than consensus of $4.41.

OSI Systems (OSIS +0.79%) dropped 18% in after-hour trading after it disclosed the SEC is investigating the company's compliance with the Foreign Corrupt Practices Act.

II-VI (IIVI +2.39%) fell over 3% in after-hours trading after it said it sees Q3 revenue of $27o million to $285 million, below consensus of $288.7 million.

Brooks Automation ({=BRKS rose 3% in after-hours trading after it reported Q1 adjusted EPS of 32 cents, better than consensus of 29 cents, and said it sees Q2 adjusted EPS of 33 cents-41 cents, stronger than consensus of 32 cents.

Impinj (PI +2.19%) plunged 27% in after-hours trading after it said it sees Q1 revenue of $20 million-$22 million, well below consensus of $29.6 million, and then CFO Evan Fein said he plans to step down effective March 30.

Mattel (MAT -3.28%) dropped over 8% in after-hours trading after it reported an unexpected Q4 loss of -72 cents a share, well below consensus of a EPS of 16 cents.

Natural Grocers by Vitamin Cottage (NGVC +5.00%) slumped 15% in after-hours trading after it reported Q1 adjusted EPS of 4 cents, weaker than consensus of 7 cents, and said Q1 gross margins fell to 26.3%, below consensus of 27.6%.

Viavi Solutions (VIAV +1.05%) jumped 8% in after-hours trading after it reported Q2 net revenue of $201.8 million, above consensus of $185.9 million, and then said it sees Q3 adjusted revenue of $190 million to $200 million, the midpoint higher than consensus of $193.4 million.

MARKET COMMENTS

Mar S&P 500 E-mini stock futures (ESH18 -0.61%) this morning are down -20.25 points (-0.72%) at a 2-week low. Thursday's closes: S&P 500 -0.06%, Dow Jones +0.148%, Nasdaq -0.70%. The S&P 500 on Thursday closed lower on the U.S. Q4 nonfarm productivity report of -0.1%, weaker than expectations of +0.7% and the first decline since Q1 of 2016. There was also weakness in interest-rate sensitive utility stocks as the 10-year T-note yield rose to a 3-3/4 year high of 2.79%. Stocks were supported by the U.S. Jan ISM manufacturing index of -0.2 to 59.1, which was stronger than expectations of -1.1 to 56.6.

Mar 10-year T-note prices (ZNH18 -0.05%) this morning are down -3 ticks a fresh contract low. Thursday's closes: TYH8 -11.50, FVH8 -5.25. Mar 10-year T-notes on Thursday fell to a new contract low and the 10-year T-note yield rose to a 3-3/4 year high. T-note prices were undercut by carry-over weakness from a slide in German 10-year bund prices to a 2-year low and by the +2.0% rise in U.S. Q4 unit labor costs (stronger than expectations of +0.9%). T-note prices were also undercut by inflation concerns after the Jan ISM prices paid subindex unexpectedly rose +4.4 to a 6-1/2 year high of 72.7, stronger than expectations of -0.2 to 68.8.

The dollar index (DXY00 +0.20%) this morning is up +0.175 (+0.20%)). EUR/USD (^EURUSD) is down -0.0021 (-0.17%) and USD/JPY (^USDJPY) is up +0.47 (+0.43%). Thursday's closes: Dollar Index -0.462 (-0.55%), EUR/USD +0.0096 (+0.77%), USD/JPY +0.21 (+0.19%). The dollar index on Thursday closed lower on the unexpected decline in U.S. Q4 nonfarm productivity and strength in EUR/USD after the 10-year German bund yield rose to a new 2-year high, which improves the euro's interest rate differentials.

Mar crude oil (CLH18 -0.17%) this morning is down -13 cents (-0.20%) and Mar gasoline (RBH18 -0.57%) is -0.0109 (-0.57%). Thursday's closes: Mar WTI crude +1.07 (+1.65%), Mar gasoline +0.0021 (+0.11%). Mar crude oil and gasoline on Thursday closed higher on a weaker dollar and Goldman Sachs' hike in its 6-month crude oil price forecast to $82.50 from $62.00, citing output cuts by OPEC and a collapse in Venezuelan crude production that has helped clear a glut in oil supplies six months earlier than expected. Crude oil prices were undercut by an increase in Libyan crude exports as data from Bloomberg tanker tracking that shows that Libya's exports were 969,000 bpd, the highest in 3-1/2 years.

Metals prices this morning are mostly lower with Apr gold (GCJ18 -0.01%) unch, Mar silver (SIH18 -0.26%) -0.040 (-0.23%), and Mar copper (HGH18 -0.03%) -0.002 (-0.005%). Thursday's closes: Apr gold +4.8 (+0.36%), Mar silver -0.086 (-0.50%), Mar copper +0.0135 (+0.42%). Metals on Thursday settled mixed. Metals prices were boosted by a weaker dollar and by increased demand for gold as an inflation hedge after the U.S. Jan ISM prices-paid subindex unexpectedly rose +4.4 to a 6-1/2 year high of 72.7.