OVERNIGHT MARKETS AND NEWS

Jun E-mini S&Ps (ESM16 -0.33%) are down -0.40% and European stocks are down -0.65% after at least 28 people were killed in bombing attacks in Brussels' airport and a Maelbeek metro station. Losses in travel-related stocks are leading the overall markets lower with Carnival Corp., American Airlines, Expedia and Priceline Group all down at least 1% in pre-market trading. Flights in and out of Brussels were canceled and security precautions were stepped up at travel hubs throughout Europe. Gold and government bond prices are higher on increased safe-haven demand. Losses in European stocks were limited after the Eurozone Mar composite PMI rose more than expected and after German Mar IFO business confidence came in stronger than expected. Asian stocks settled mixed: Japan +1.94%, Hong Kong -0.08%, China -0.64%, Taiwan -0.31%, Australia -0.32%, Singapore unch, South Korea +0.46%, India +0.18%.

The dollar index (DXY00 +0.33%) is up +0.27%. EUR/USD (^EURUSD) is down -0.24%. USD/JPY (^USDJPY) is down -0.23%.

Jun T-note prices (ZNM16 +0.11%) are up +5 ticks.

The German Mar Markit/BME manufacturing PMI unexpectedly fell -0.1 to 50.4, weaker than expectations of +0.3 to 50.8 and the slowest pace of expansion in 16 months.

The German Mar ZEW survey expectations of economic growth rose +3.3 to 4.3, weaker than expectations of +4.4 to 5.4.

The German Mar IFO business climate rose +1.0 to 106.7, stronger than expectations of +0.3 to 106.0.

The Mar Markit composite PMI rose +0.7 to 53.7, stronger than expectations of no change at 53.0.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Jan FHFA house price index (expected +0.5%, Dec +0.4% m/m), (2) Markit preliminary-Mar U.S. manufacturing PMI (expected +0.6 to 51.9, Feb -1.1 to 51.3), (3) Mar Richmond Fed manufacturing index (expected +4 to 0, Feb -6 to -4), (4) Chicago Fed President Charles Evans' speech at the City Club of Chicago, and (5) Philadelphia Fed President Patrick Harker's speech at a Money Marketeers dinner in New York.

There are 5 of the Russell 1000 companies that report earnings today: NIKE (consensus $0.49), Cintas (0.95), Red Hat (0.47), SunEdison (-0.74), NorthStar Realty Europe.

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

Equity conferences this week include: Consumer Analyst Group of Europe Conference on Mon-Tue, Scotia Howard Weil Energy Conference on Mon-Tue, Wells Fargo Asset Managers, Brokers & Exchanges Forum on Tue, Gabelli Specialty Chemicals Conference on Tue, Telsey Advisory Group (TAG) Spring Consumer Conference on Tue, Bank of America Merrill Lynch New York Auto Summit on Wed, BB&T Capital Markets Commercial & Industrial Investors Conference on Wed-Thu.

OVERNIGHT U.S. STOCK MOVERS

American Airlines Group (AAL +0.07%) , Expedia (EXPE +0.63%) , Priceline Group (PCLN +0.47%) and Carnival Cruise Lines (CCL +0.30%) are all down at least 1% in pre-market trading as travel and leisure stocks fall in the aftermath of the terrorist bombings in Brussels.

Yahoo (YHOO +0.85%) was downgraded to 'Neutral' from 'Buy' at Citigroup.

Boyd Gaming (BYD -1.16%) was upgraded to 'Buy' from 'Neutral' at Janney Montgomery with a 12-month price target of $25.

Avis Budget Group (CAR +0.03%) was rated a new 'Buy' at Sterne Agee CRT with a 12-month target price of $35.

WW Grainger (GWW +0.82%) was rated a new 'Buy' at Sterne Agee CRT with a 12-month target price of $274.

Carnival Cruise Line (CCL +0.30%) said Cuba granted approval for Carnival's cruise ships to begin travel to Cuba starting May 1.

The CEO of Transocean (RIG -2.32%) said it will have to wait until at least 2019 before it can begin charging higher rig prices.

Waste Connections (WCN -0.21%) was rated a new 'Buy' at Sterne Agee CRT with a 12-month target price of $76.

Mattress Firm Holding (MFRM +0.95%) dropped over 5% in after-hours trading after it reported Q4 adjusted EPS of 53 cents, weaker than consensus of 56 cents, and then lowered guidance on fiscal year adjusted EPS to $2.50-$2.60, below consensus of $2.73.

Deutsche Bank (DB -1.04%) lost 1% in after-hours trading after Moody's Investors Service paced the bank on review for downgrade, citing revenue and expense headwinds that may delay an improvement in profitability.

NQ Mobile (NQ +1.60%) climbed over 5% in after-hours trading after it reported Q4 adjusted net revenue of $127.5 million, up +42 % y/y.

CalAmp (CAMP -1.28%) slumped over 7% in after-hours trading after it reported preliminary Q4 revenue of $71 million, below a December 22 forecast of $73 million-$78 million, and below consensus of $75.9 million.

Adecoagro (AGRO +1.21%) slid 6% in after-hours trading after it announced it started a public offering of 12 million shares.

YY Inc. (YY -3.53%) rose nearly 3% un after-hours trading after it reported paying users were up +29.9% y/y to 3.2 million as of Dec 31.

MicroVision (MVIS -7.85%) dropped over 6% in after-hours trading after it said it plans a secondary offering of common stock.

MARKET COMMENTS

Jun E-mini S&Ps (ESM16 -0.33%) this morning are down -8.25 points (-0.40%). Monday's closes: S&P 500 +0.10%, Dow Jones +0.12%, Nasdaq +0.37%. The S&P 500 on Monday climbed to a 2-1/2 month high and closed higher on carryover support from a +2.15% rally in China's Shanghai Composite and on M&A activity after Sherwin-Williams bought Valspar for $9.3 billion and Marriott International purchased Starwood Hotels & Resorts International for $13.6 billion. Stocks were undercut by the -7.1% decline in U.S. Feb existing home sales to 5.08 million, weaker than expectations of -3.0% to 5.31 million.

Jun 10-year T-notes (ZNM16 +0.11%) this morning are up +5 ticks. Monday's closes: TYM6 -12.50, FVM6 -7.25. Jun T-notes on Monday closed lower on San Francisco Fed President Williams's comment that the Fed may raise interest rates in April or June and on increased inflation expectations after the 10-year T-note breakeven inflation rate jumped to a 3-1/2 month high.

The dollar index (DXY00 +0.33%) this morning is up +0.254 (+0.27%). EUR/USD (^EURUSD) is down -0.0027 (-0.24%). USD/JPY (^USDJPY) is down -0.26 (-0.23%). Monday's closes: Dollar Index +0.202 (+0.21%), EUR/USD -0.0029 (-0.26%), USD/JPY +0.40 (+0.36%). The dollar index on Monday closed higher on San Francisco Fed President Williams' comment that the FOMC meetings in April or June have the potential for a Fed rate hike and on strength in USD/JPY as the safe-haven demand for the yen weakened as stocks rallied.

May WTI crude (CLK16 -0.34%) this morning is down -11 cents (-0.26%) and May gasoline (RBK16 +0.01%) is down -0.0035 (-0.24%). Monday's closes: CLK6 +0.38 (+0.92%), RBK6 +0.0303 (+2.07%). May crude oil and gasoline on Monday closed higher on Saudi Aramco CEO's comment that oil prices will start adjusting upward by year-end as the gap between supply and demand shrinks and on expectations that U.S. crude oil production will continue to decline.

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