OVERNIGHT MARKETS AND NEWS

March E-mini S&Ps (ESH16 -1.65%) are down -1.54% and European stocks are down -1.26% at a 13-month low as crude oil is down sharply by -4.90%at a fresh 12-year low. Energy and commodity producers are leading the overall market lower as the slide in crude oil and commodity prices intensifies. Also, Intel is down over 5% in pre-market trading after its Q1 sales forecast fell short of expectations, and Volkswagen AG is down almost 3% in European trading after data from the European Automobile Manufacturers' Association showed its market share in Europe last year fell for the first time since 2007. A -3.55% plunge in China's Shanghai Composite is another negative for global equity markets lower after a report that some banks in Shanghai have halted accepting shares of smaller listed companies as collateral for loans. Asian stocks settled mostly lower: Japan -0.54%, Hong Kong-1.50%, China -3.55%, Taiwan +0.25%, Australia -0.34%, Singapore -0.52%, South Korea -1.12%, India -1.28%.

The dollar index (DXY00 -0.17%) is down -0.18%. EUR/USD (^EURUSD) is up +0.35%. USD/JPY (^USDJPY) is down -0.57%.

Mar T-note prices (ZNH16 +0.45%) are up +14.5 ticks at a 2-1/2 month high on weak oil prices and the plunge in global equity markets.

According to a statement on China's central government website, Chinese Premier Li Keqiang said China doesn't seek to boost exports via yuan devaluation. He reiterated that there is no basis for continuous yuan depreciation and that China can keep the yuan exchange rate basically stable at an equilibrium level.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Dec retail sales (expected -0.1% and +0.2% ex autos, Nov +0.2% and +0.4% ex autos), (2) Dec PPI final demand (expected -0.2% m/m and -1.0% y/y, Nov +0.3% m/m and -1.1% y/y) and Dec PPI ex food & energy (expected +0.1% m/m and +0.3% y/y, Nov +0.3% m/m and +0.5% y/y), (3) Jan Empire manufacturing survey of general business conditions (expected +0.59 to -4.00, Dec +6.15 to -4.59), (4) New York Fed President William Dudley's speech on the economy and monetary policy at the Economic Leadership Forum in Somerset, New Jersey, (5) Dec industrial production (expected -0.2%, Nov -0.6%), (6) Nov business inventories expected (-0.1% m/m, Oct unch m/m), (7) preliminary-Jan University of Michigan U.S. consumer sentiment (expected unch at 92.6, Dec +1.3 to 92.6), (8) San Francisco Fed President John Williams delivers opening remarks and takes audience questions at The Bay Area Council Economic Institute Annual Forecast Conference, and (9) Dallas Fed President Rob Kaplan's participation in a moderated panel discussion in Dallas.

There are 7 of the S&P 500 companies that report earnings today: Citigroup (consensus $1.05), Wells Fargo (1.02), US Bancorp (0.79), BlackRock (4.80), Regions Financial (0.20), PNC Financial (1.79), Fastenal (0.40).

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

Equity conferences during the remainder of this week: none.

OVERNIGHT U.S. STOCK MOVERS

Intel (INTC +2.60%) dropped over 5% in pre-market trading after it said it sees Q1 gross margins at 58% +/- a couple of points, below consensus of 61%.

Goldman Sachs (GS +1.51%) fell -1.0% in pre-market trading after it agreed to settle a U.S. probe into its handling of mortgage-backed securities for about $5.1 billion, which will cut its Q4 profit by about $1.5 billion.

Best Buy (BBY -9.67%) was downgraded to 'Underperform' from 'Neutral' at Wedbush.

BlackRock (BLK +1.77%) reported Q4 EPS of $4.75, weaker than consensus of $4.80.

U.S. Bancorp (USB +2.36%) reported Q4 EPS of 79 cents, right on expectations.

Fastenal (FAST +1.24%) reported Q4 EPS of 39 cents, below consensus of 40 cents.

DR Horton (DHI -1.17%) was downgraded to 'Neutral' from 'Buy' at UBS.

Hyatt Hotels (H -3.06%) tumbled nearly 5% in after-hours trading after it was downgraded to 'Sell' from 'Neutral' at Goldman Sachs.

Analog Devices (ADI +0.80%) dropped over 2% in after-hours trading after it cut its Q1 revenue estimate to $745 million-$765 million from a previous forecast of $805 million-$855 million, well below consensus of $829.9 million.

AbbVie (ABBV +6.60%) rose over 1% in after-hours trading after Amgen lost a challenge to two AbbVie patents on Humira.

TreeHouse Foods (THS +1.20%) fell over 3% in after-hours trading after it lowered guidance on 2016 EPS to $2.95-$3.10, below consensus of $3.17.

Orbital ATK (OA -0.80%) gained over 1% in after-hours trading after NASA awarded the company six NASA missions valued between $1.2 billion-$1.5 billion.

MARKET COMMENTS

Mar E-mini S&Ps (ESH16 -1.65%) this morning are down sharply by -29.50 points (-1.54%). Thursday's closes: S&P 500 +1.67%, Dow Jones +1.41%, Nasdaq +2.15%. The S&P 500 on Thursday recovered from a 3-1/2 month low and closed higher on the +2.97% rally in the Shanghai Composite index, strength in energy producers as oil prices rallied, and the 2% jump in JPMorgan Chase after it reported Q4 EPS that beat estimates.

Mar 10-year T-notes (ZNH16 +0.45%) this morning are up +14.5 ticks at a 2-1/2 month high. Thursday's closes: TYH6 -7.50, FVH6 +0.25. Mar T-notes on Thursday closed lower on a sharp upward rebound in the S&P 500 from an early 3-1/2 month low, which reduced safe-haven demand for T-notes. T-note prices were also hurt by weak demand for the Treasury's $13 billion auction of 30-year T-bonds that had a bid-to-cover ratio of 2.29, below the 12-auction average of 2.33.

The dollar index (DXY00 -0.17%) this morning is down -0.182 (-0.18%). EUR/USD (^EURUSD)is up +0.0038 (+0.35%). USD/JPY (^USDJPY) is down-0.67 (-0.57%). Thursday's closes: Dollar Index +0.156 (+0.16%), EUR/USD -0.0012 (-0.11%), USD/JPY +0.38 (+0.32%). The dollar index on Thursday closed higher on strength in USD/JPY as a rally global equity markets reduced safe-haven demand for the yen, and on weakness in EUR/USD after a report on the Dec 3 ECB policy meeting showed that some ECB Council members wanted a larger cut in the deposit rate and more QE purchases.

Feb crude oil (CLG16 -5.32%) this morning is down -$1.53 a barrel (-4.90%) at a fresh 12-year and Feb gasoline (RBG16 -2.88%) is down -0.0279(-2.61%) at a 6-3/4 year low. Thursday's closes: CLG6 +0.72 (+2.36%), RBG6 +0.0156 (+1.48%). Feb crude oil and gasoline prices on Thursday closed higher on the rally in global stock markets and on carryover support from Wednesday's EIA data that showed crude inventories rose +234,000 bbl, less than expectations of +2.0 million bbl.