Overnight Markets And News

Sep E-mini S&Ps (ESU18 -0.42%) this morning are down -0.50% and European stocks are down -0.71% as underwhelming Eurozone economic data pressured stock prices after German and France Apr industrial production both unexpectedly declined. Also, weakness in Apple and its suppliers are weighing on technology stocks with Apple down 2% in pre-market trading after the Nikkei reported that Apple told its supply chain to prepare for -20% fewer components for iPhones debuting in the second half of this year compared with last year's orders. Apple's European suppliers are weaker as well with AMS AG down more than 5% and STMicroelectronics NV and Infineon Technologies AG both down more than 2%. The markets will look to headlines out of the G-7 meeting in Quebec for any resolution to trade tensions between the U.S. and its trading partners. Asian stocks settled lower: Japan -0.56%, Hong Kong -1.76%, China -1.36%, Taiwan -0.85%, Australia -0.20%, Singapore -1.06%, South Korea -0.85%, India -0.05%. Asian stocks moved lower on weakness in technology stocks despite stronger-than-expected May trade data from China.

The dollar index (DXY00 +0.38%) is up +0.36%. EUR/USD (^EURUSD -0.49%) is down -0.57%. USD/JPY (^USDJPY-0.34%) is down -0.38%.

Sep 10-year T-note prices (ZNU18 +0-055) are up +6.5 ticks.

The China May trade balance unexpectedly shrank to a surplus of +$24.92 billion, narrower than expectations of +$33.25 billion. May exports rose +12.6% y/y, stronger than expectations of +11.1% y/y. May imports rose +26.0% y/y, stronger than expectations of +18.0% y/y and the largest increase in 4 months.

The German Apr trade balance shrank to a surplus of +20.4 billion euros, close to expectations of +10.2 billion euros. Apr exports fell -0.3% m/m, right on expectations. Apr imports rose +2.2% m/m, stronger than expectations of +0.6% m/m and the biggest increase in 15-months.

German Apr industrial production unexpectedly fell -1.0% m/m, weaker than expectations of +0.3% m/m.

Japan Q1 GDP was left unrevised at -0.6% (q/q annualized), weaker than expectations of an upward revision to -0.4% (q/q annualized).

France Apr industrial production unexpectedly fell -0.5% m/m, weaker than expectations of +0.3% m/m.

U.S. Stock Preview

Key U.S. news today includes: (1) final-Apr wholesale inventories (expected unrevised at unch) and Apr wholesale trade sales (Mar +0.3% m/m), (2) G7 Summit 2-day (Fri-Sat) begins in Charlevoix, Quebec.

Notable Russell 1000 earnings reports today include: none.

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

Equity conferences this week: Bank of America Merrill Lynch Global Technology, Media & Telecom Conference on Tue-Thu, Robert W. Baird & Co. Global Consumer, Technology & Services Conference on Tue-Thu, NAREIT REITWeek Investor Conference on Tue-Thu, Apple Worldwide Developers Conference on Tue-Fri, Deutsche Bank Global Industrials & Materials Summit on Wed-Thu, Sandler O'Neill Global Exchange and Brokerage Conference on Wed-Thu, Baird Global Consumer, Technology & Services Conference on Thu, Gabelli Movie & Entertainment Conference on Thu, Piper Jaffray Consumer Marketplace Conference on Thu.

Market Comments

Sep S&P 500 E-minis (ESU18 -0.42%) this morning are down -13.75 points (-0.50%). Thursday's closes: S&P 500 -0.07%, Dow Jones +0.38%, Nasdaq -0.79%. The S&P 500 on Thursday fell back from a 2-3/4 month high and closed slightly lower negative carry-over from a slide in European stocks on economic concerns after German Apr factory orders unexpectedly fell -2.5% m/m, weaker than expectations of +0.8% m/m and the fourth consecutive monthly decline. There was also weakness in technology stocks after the Nasdaq Composite retreated from Wednesday's new record high on long liquidation pressures. There was strength in metal producers and mining stocks after Jul copper soared to a 4-1/3 year nearest-futures high. Energy stocks rallied on the +1.88% higher close in crude oil prices.

Sep 10-year T-notes (ZNU18 +0-055) this morning are up +6.5 ticks. Thursday's closes: TYU8 +10.00, FVU8 +5.25. Sep T-notes on Thursday recovered from a 1-1/2 week low and closed higher on weakness in stocks, which boosted safe-haven demand for T-notes. T-notes were also boosted by the ongoing Italian political crisis that pushed the Italian 10-year bond yield up to a 1-week high of 3.06%.

The dollar index (DXY00 +0.38%) this morning is up +0.338 (+0.36%). EUR/USD (^EURUSD -0.49%) is down -0.0067 (-0.57%). USD/JPY (^USDJPY -0.34%) is down -0.42 (-0.38%). Thursday's closes: Dollar Index -0.263 (-0.28%), EUR/USD +0.0026 (+0.22%), USD/JPY -0.48 (-0.44%). The dollar index on Thursday slumped to a 3-week low and closed lower on heightened trade tensions ahead of Friday's G-7 Summit in Quebec as America's G7 partners are very angry about U.S. steel and aluminum tariffs. There was strength in EUR/USD which climbed to a 3-week high on carry-over support from hawkish ECB commentary on Wednesday that bolstered speculation the ECB will announce the end of their QE program at next Thursday's policy meeting.

Metals prices this morning are mixed with Aug gold (GCQ18 +0.03%) +0.7 (+0.05%), Jul silver (SIN18 -0.33%) -0.075 (-0.45%) and Jul copper (HGN18 -0.06%) -0.004 (-0.12%). Thursday's closes: Aug gold +1.60 (+0.12%), Jul silver +0.121 (+0.72%), Jul copper +0.0130 (+0.40%). Metals on Thursday closed higher with Jul silver at a 6-week nearest-futures high and Jul copper at a 4-1/3 year nearest-futures high. Metals prices were boosted by the fall in the dollar index to a 3-week low and by fund buying of copper on the possibility of a strike at Chile's copper mine at Escondida, the world's biggest.

Jul WTI crude oil prices (CLN18 -0.30%) this morning are down -28 cents (-0.42%) and Jul gasoline (RBN18 +0.24%) is +0.0028 (+0.13%). Thursday's closes: Jul crude +1.22 (+1.88%), Jul gasoline +0.0448 (+2.16%). Jul crude oil and gasoline on Thursday closed higher on the sell-off in the dollar index to a 3-week low and on comments from Iraqi Oil Minister Jabbar al-Luaibi who said an OPEC crude production increase will not be on the table when the cartel meets in Vienna on Jun 22 as the market is stable and prices are good.

Overnight U.S. Stock Movers

Apple (AAPL -0.27%) is down 2% in pre-market trading after the Nikkei reported that Apple told its supply chain to prepare for -20% fewer components for iPhones debuting in the second half of this year compared with last year's orders.

Autodesk (ADSK -2.75%) was rated a new 'Sell' at Bucephalus Research with a price target of $50.

Broadcom (AVGO +0.44%) gained almost 1% in after-hours trading after it reported Q2 adjusted EPS from continuing operations of $4.88, better than consensus of $4.68.

LivaNova Plc (LIVN -0.70%) was rated a new 'Buy' at Stifel with a price target of $115.

Zumiez (ZUMZ +1.31%) rallied almost 12% in after-hours trading after it reported Q1 net sales of $206.3 million, better than consensus of $204.0 million, and then forecast Q2 revenue of $213 million to $217 million, above consensus of $203.8 million.

Exact Sciences (EXAS -3.30%) fell 3% in after-hours trading after it said it is offering $150 million of convertible senior notes due 2025.

Eli Lilly (LLY -0.06%) was rated a new 'Overweight' at Cantor Fitzgerald with a price target of $100

Pfizer (PFE +0.30%) was rated a new 'Overweight' at Cantor Fitzgerald with a price target of $45.

Cree (CREE +0.93%) lost nearly 4% in after-hours trading after CFO Mike McDevitt said he will retire but stay on until a successor is appointed.

DocuSign (DOCU -2.39%) climbed more than 6% in after-hours trading after it reported Q1 total revenue of $155.8 million, stronger than expectations of $135.8 million.

At Home Group (HOME +2.83%) lost more than 1% in after-hours trading after it reported Q1 comparable sales were up +0.9%, weaker than consensus of +2.1%.

Carbon Black (CBLK -2.56%) gained 2% in after-hours trading after it forecast 2018 revenue of $203 million to $204.5 million, higher than consensus of $201.8 million.

Stitch Fix (SFIX -4.65%) rose more than 6% in after-hours trading after it forecast full-year net revenue of $1.22 billion to $1.23 billion, above consensus of $1.21 billion.

Iteris (ITI -2.19%) slid more than 4% in after-hours trading after the CEO said the "roadway sensors segment continued to encounter choppiness in Texas."