OVERNIGHT MARKETS AND NEWS

Jun E-mini S&Ps (ESM16 +0.25%) are up +0.26% at a contract high and European stocks are up 1.40%. Global stock markets rose on upbeat comments from Fed Chair Yellen on Monday when she said that positive developments outweigh negative developments in the U.S. economy and as she reiterated that the Fed will only gradually raise interest rates. A +0.50% rally in crude oil is also giving energy producing stocks a lift. European stocks also received a boost after Eurozone Q1 GDP was revised upward. Asian stocks settled higher: Japan +0.58%, Hong Kong +1.42%, China +0.07%, Taiwan +0.96%, Australia +0.20%, Singapore +0.59%, South Korea +1.42%, India +0.87%.

The dollar index (DXY00 +0.03%) is down -0.06%. EUR/USD (^EURUSD) is up +0.04%. USD/JPY (^USDJPY) is up +0.20%.

Sep T-note prices (ZNU16 -0.07%) are down -2.5 ticks.

Eurozone Q1 GDP was revised upward to +0.6% q/q and +1.7% y/y from the originally reported +0.5% q/q and +1.5% y/y.

China May foreign reserves fell to $3.192 trillion, more than expectations of $3.2 trillion and the lowest level in 4-1/3 years.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) final-Q1 non-farm productivity (expected -0.6%, prelim-Q1 -1.0%) and final-Q1 unit labor costs (expected +4.0%, prelim-Q1 +4.1%), (2) Treasury auctions $24 billion of 3-year T-notes, (3) Apr consumer credit (expected +$18.0 billion, Mar +$29.674 billion).

There are 3 of the Russell 1000 companies that report earnings today: Michaels Cos (consensus $0.35), HD Supply (0.47), VeriFone (0.52).

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

Equity conferences during the remainder of this week include: Gaming Restaurant & Leisure Conference on Mon-Tue, RBC Global Energy & Power Executive Conference on Mon-Tue, Stifel Technology, Internet & Media Investor Conference on Mon-Tue, American Society of Clinical Oncology Annual Meeting on Mon-Thu, Bank of America Merrill Lynch Global Telecom & Media Conference on Tue, Goldman Sachs European Financials Conference on Tue, NAREIT REITWeek Investor Forum on Tue-Wed, Stephens Spring Investment Conference on Tue-Wed, Goldman Sachs Global Health Care Conference on Tue-Thu, Jefferies Global Health Care Conference on Tue-Thu, Baird Global Consumer, Technology and Services Conference on Tue-Thu, BioTechnology Industry Organization International Convention on Wed, Deutsche Bank Global Industrials and Materials Summit on Wed-Thu, Sandler O'Neill Global Exchange and Brokerage Conference on Wed-Thu, Gabelli & Company Movie & Entertainment Conference on Thu, Susquehanna Financial Group Energy and Industrials Conference on Thu.

OVERNIGHT U.S. STOCK MOVERS

Norwegian Cruise Line Holdings Ld. (NCLH -0.72%) was rated a new 'Buy' at Sterne Agee CRT with a price target of $80.

Jabil Circuit (JBL +0.93%) was downgraded to 'Sell' from 'Neutral' at Goldman Sachs with a price target of $17.

Marathon Oil (MRO +4.80%) was rated a new 'Buy' at KLR Group with a target price of $21.

Layne Christensen (LAYN -1.01%) reported a Q1 loss continuing operations of -45 cents a share, a wider loss than consensus of -32 cents.

Discovery Communications (DISCA +1.73%) was downgraded to 'Underperform' from 'Market Perform' at Bernstein.

Catalent (CTLT -0.49%) announced a secondary public offering of 10 million shares of common stock.

United Natural Foods (UNFI +0.57%) jumped over 10% in after-hours trading after it reported Q3 EPS of 76 cents, higher than consensus of 65 cents, and then raised guidance on full-year adjusted EPS to $2.47-$2.53 from a March 7 estimate of $2.34-$2.44.

Casey's General Stores (CASY -0.98%) reported Q4 EPS of $1.19, below consensus of $1.22, although Q4 revenue of $1.58 billion was above consensus of $1.57 billion.

Thor Industries (THO +0.54%) gained over 1% in after-hours trading after it reported Q3 adjusted EPS from continuing operations of $1.51, better than consensus of $1.43.

Xactly (XTLY +1.25%) rose 4% in after-hours trading after it reported a Q1 adjusted EPS loss of -9 cents, narrower than consensus of -15 cents, and then raised guidance on full-year revenue to $95.5 million-$97.0 million from a March 3 estimate of $94 million-$95.5 million.

Sigma Designs (SIGM +2.62%) reported a Q1 adjusted EPS loss of -12 cents, wider than consensus of -5 cents.

WWD reported that Ralph Lauren (RL +0.54%) plans close some stores and cut up to 10% of its workforce.

DryShips (DRYS +10.80%) tumbled 12% in after-hours trading after three lenders said DryShips had elected to suspend principal repayments and interest payments and was in breach of certain covenants in loan agreements.

MARKET COMMENTS

June E-mini S&Ps (ESM16 +0.25%) this morning are up +5.50 points (+0.26%) at a new contract high. Monday's closes: S&P 500 +0.49%, Dow Jones +0.64%, Nasdaq +0.31%. The S&P 500 on Monday rallied to a 1-1/2 month high and closed higher on strength in raw-material and energy producing stocks as a weak dollar boosted commodity prices. Stocks were also boosted by upbeat comments from Fed Chair Yellen who said that positive forces supporting U.S. job growth and higher inflation still outweigh negative developments.

September 10-year T-note prices (ZNU16 -0.07%) this morning are down -2.5 ticks. Monday's closes: TYU6 -3.00, FVU6 -0.75. Sep T-notes on Monday closed lower on on comments from Fed Chair Yellen who said positives outweigh the negatives and that gradual interest rate hikes are still appropriate even after last Friday's weak payroll report. T-notes were also undercut by reduced safe-haven demand after the rally in the S&P 500 to a 1-1/2 month high.

The dollar index (DXY00 +0.03%) this morning is down -0.055 (-0.06%). EUR/USD (^EURUSD) is up +0.0005 (+0.04%). USD/JPY (^USDJPY) is up +0.21 (+0.20%). Monday's closes: Dollar Index -0.127 (-0.14%), EUR/USD -0.0012 (-0.11%), USD/JPY +1.03 (+0.97%). The dollar index on Monday tumbled to a fresh 3-week low and closed lower on comments from Fed Chair Yellen who said that gradual interest hikes are appropriate but who also refused to specify any timetable. In addition, Atlanta Fed President Lockhart said the Fed should wait until at least the July FOMC meeting before deciding if they should raise interest rates because of a slowing labor market and the British vote on EU membership.

July WTI crude oil (CLN16 +0.83%) this morning is up +25 cents (+0.50%). July gasoline (RBN16 +0.79%) is up +0.0061 (+0.38%). Monday's closes: CLN6 +1.07 (+2.20%), RBN6 -0.0188 (-1.176%). July crude oil and gasoline on Monday settled mixed. Crude oil received a boost from a weaker dollar and from reduced crude oil output from Nigeria, Africa's biggest producer, after the Nigerian National Petroleum Corp said that militant attacks on pipelines and installations have reduced the country's oil production by 700,0000-800,000 bpd. Gasoline was undercut by reduced refinery demand after the crack spread fell to a 2-week low.