OVERNIGHT MARKETS AND NEWS

Sep E-mini S&Ps (ESU16 -0.77%) are down -0.72% and European stocks are down -1.92% at a fresh 4-1/2 month low as the fallout from last Thursday's Brexit vote continues. GBP/USD is down -3.41% at a new 30-3/4 year low and the yield on the 10-year British guilt fell below 1.0% for the first time to a record low 0.931%. Losses in UK bank stocks ae leading the overall market lower with Riyal Bank of Scotland down 13% and Barclays Plc down 10%. Uncertainty may fuel additional losses in European stocks and in the British pound as UK leadership is unclear after Prime Minister Cameron announced his resignation. Also, Scotland may want its independence from Britain and Sinn Fein in Northern Ireland has called for a referendum on unification in Ireland. The ECB is hosting a 3-day meeting in Portugal that will gain the market's attention with a speech from ECB President Draghi. Asian stocks settled mixed: Japan +2.39%, Hong Kong -0.16%, China +1.45%, Taiwan -0.21%, Australia +0.47%, Singapore -0.20%, South Korea +0.03%, India +0.02%. China's Shanghai Composite recovered from early losses and closed higher after Credit Suisse Group AG and Citigroup advised clients to buy Chinese stocks following last week's sell-off.

The dollar index (DXY00 +1.00%) is up +0.95%. EUR/USD (^EURUSD) is down -0.95%. USD/JPY (^USDJPY) is down -0.58%.

Sep T-note prices (ZNU16 +0.66%) are up +27.5 ticks.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) prelim-Jun Markit services PMI (expected +0.7 to 52.0, May -1.5 to 51.3), (2) Jun Dallas Fed manufacturing activity (expected +5.3 to -15.5, May -6.9 to -20.8), (3) USDA weekly grain export inspections, and (4) USDA Weekly Crop Progress.

None of the Russell 1000 companies report earnings today.

U.S. IPO's scheduled to price today: Monster Digital (MSDI).

Equity conferences this week include: Macquarie Group Ltd Global Quantitative Research Conference on Mon, J.P. Morgan Inaugural Energy Equity Investor Conference on Mon-Wed.

OVERNIGHT U.S. STOCK MOVERS

Analog Devices (ADI -5.28%) , Maxim Integrated Products (MXIM -7.36%) and NXP Semiconductors NV (NXPI -8.34%) were all downgraded to 'Neutral' from 'Buy' at Bank of America/Merrill Lynch.

ManpowerGroup (MAN -13.41%) was downgraded to 'Neutral' from 'Outperform' at Credit Suisse with a price target of $73.

ResMed (RMD -5.56%) was downgraded to 'Underperform' from 'Hold' at Needham.

Pandora Media (P -3.77%) was upgraded to 'Overweight' from 'Equalweight' at Morgan Stanley.

Halliburton (HAL -4.19%) was rated a new 'Buy' at Daishin Securities with a 12-month price target of $54.

Skyworks (SWKS -8.33%) was rated a new 'Underweight' at Morgan Stanley with a price target of $61.

Lennar (LEN -3.97%) was upgraded to 'Outperform' from 'Market Perform' at Raymond James with a 12-month price target of $53.

Moody's Investors Service cut its outlook on the UK's long-term issuer and debt ratings to 'Negative' from 'Stable.'

Energy Transfer Equity LP (ETE -3.62%) jumped nearly 8% in after-hours trading after a Delaware judge ruled that Energy Transfer can back out of its deal to acquire Williams Cos.

Williams Cos. (WMB -2.16%) fell nearly 7% in after-hours trading after a Delaware judge ruled that Energy Transfer is entitled to terminate the merger with Williams Cos.

MARKET COMMENTS

September E-mini S&Ps (ESU16 -0.77%) this morning are down -14.50 points (-0.72%). Friday's closes: S&P 500 -3.59%, Dow Jones -3.59%, Nasdaq -4.07%. The S&P 500 on Friday plunged to a 1-month low and closed sharply lower on the unexpected UK Brexit vote. Stocks were also undercut by the decline in U.S. May durable goods by -2.2% and -0.3% ex-transportation, weaker than expectations of -0.5% and +0.1% ex transportation. Automaker stocks were weak after Ford Motor said the Brexit vote will have an "adverse impact" on operations. Stocks showed some recovery after the BOE and ECB both said they will give banks all the funding they require to counter market turmoil.

Sep 10-year T-note prices (ZNU16 +0.66%) this morning are up +27.5 ticks. Friday's closes: TYU6 +1-18/32, FVU6 +26.75. Sep T-notes on Friday rallied sharply to a contract high and the 10-year T-note yield fell to a 3-3/4 year low of 1.41%. T-notes were boosted by massive safe-haven demand as global equity markets plunged on the UK Brexit vote. T-notes were also boosted by a sharp reduction in expectations for Fed tightening due to the Brexit vote, with the market now ascribing virtually no chance for a Fed rate hike this year.

The dollar index (DXY00 +1.00%) this morning is up +0.908 (+0.95%). EUR/USD (^EURUSD) is down -0.0106 (-0.95%). USD/JPY (^USDJPY) is down -0.59 (-0.58%). Dollar Index +1.919 (+2.05%), EUR/USD -0.0268 (-2.35%), USD/JPY -3.94 (-3.71%). The dollar index on Friday surged to a 3-1/4 month high and closed higher on the plunge in GBP/USD to a 30-3/4 year low and the fall in EUR/USD to a 3-1/2 month low on the UK Brexit vote. In addition, there was weakness in the energy-exporting currencies of Canada and Russia after the price of crude oil plunged. The dollar was undercut by safe-haven demand for the yen with USD/JPY plunging to a 2-1/2 year low.

Aug WTI crude oil (CLQ16 -0.88%) this morning is down -36 cents (-0.76%). Aug gasoline (RBQ16 -0.78%) is down -0.0108 (-0.70%). Friday's closes: CLQ6 -2.47 (-4.93%), RBQ6 -0.0778 (-4.83%). Aug crude oil and gasoline on Friday closed sharply lower on the surge in the dollar index to a 3-1/4 month high and on concern about weaker global economic growth after the UK Brexit vote.

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