OVERNIGHT MARKETS AND NEWS

Sep E-mini S&Ps (ESU17 +0.33%) this morning are up +0.31% and European stocks are higher by +0.91% on signs of strength in global manufacturing activity. A gauge of Chinese manufacturing activity unexpectedly rose above the boom/bust level of 50.0 last month, while Eurozone Jun Markit manufacturing PMI was revised higher to its fastest pace of expansion in over 3 years. Energy stocks are also leading the overall market higher with Aug WTI crude oil (CLQ17+0.33%) up +0.09% at a 2-week high. Asian stocks settled mostly higher: Japan +0.11%, Hong Kong +0.08%, China +0.11%, Taiwan +0.17%, Australia -0.65%, Singapore -0.09%, South Korea +0.20%, India +0.97%. China's Shanghai Composite climbed to a 2-1/2 month high after the Jun Caixin (flash) manufacturing PMI rose more than expected. Japanese stocks moved higher as exporters gained when USD/JPY rose to a 1-1/2 month high, and after Japan Q2 Tankan large manufacturing business conditions rose +5 to 17, the highest in over 3-years.

The dollar index (DXY00 +0.47%) is up +0.47%. EUR/USD (^EURUSD) is down -0.45%. USD/JPY (^USDJPY) is up +0.52% at a 1-1/2 month high as the yen weakened following the unexpected loss by Japan Prime Minister Abe's Liberal Democratic Party in an election for Tokyo's assembly, which fueled speculation Prime Minister Abe may resort to fresh economic stimulus to win support.

Sep 10-year T-note prices (ZNU17 -0.11%) are down -4 ticks to a 1-1/2 month low as strength in stock prices saps the safe-haven demand for T-notes.

The Eurozone Jun Markit manufacturing PMI was revised upward to 57.4 from the previously reported 57.3, the fastest pace of expansion since the data series began in 2014.

The China Jun Caixin manufacturing PMI rose +0.8 to 50.4, stronger than expectations of +0.2 to 49.8.

The Japan Q2 Tankan large manufacturing business conditions rose +5 to 17, stronger than expectations of +3 to 15 and the highest since Q1 of 2014.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) St. Louis Fed President James Bullard (non-voter) speaks at a BOE academic macroeconomy conference, (2) revised Jun Markit U.S. manufacturing PMI (expected unrevised at 52.1, prelim-Jun -0.6 to 52.1), (3) Jun ISM manufacturing PMI (expected +0.3 to 55.2, May +0.1 to 54.9), (4) May construction spending (expected +0.3% m/m, Apr -1.4% m/m), (5) Jun total vehicle sales (expected 16.50 million, May 16.58 million), (6) USDA weekly grain export inspections, (7) USDA crop conditions and planting progress.

Notable Russell 2000 earnings reports today include: Energen (consensus $0.05).

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

Equity conferences this week: none.

OVERNIGHT U.S. STOCK MOVERS

Bankrate (RATE +1.98%) may move higher today after it was acquired by Red Ventures for $1.4 billion or about $14 a share, a 9% premium to last Friday's close.

Comcast (CMCSA +0.13%) may move higher today after "Despicable Me 3," the movie from its Universal Pictures Illumination Entertainment, led the North American movie market over the weekend with $75.4 million in ticket sales.

Alphabet (GOOGL -0.87%) said the EU antitrust fine could cut Q2 profit by about $2.74 billion.

In its July 3 issue, Barron's said that Bristol-Myers Squibb (BMY -0.18%) shares could climb 25% to 40% in the next two to three years as use of its cancer drug grows and its pipeline yields marketable products.

Rice Energy (RICE -0.60%) was downgraded to 'Hold' from 'Buy' at Williams Capital.

Aerovironment (AVAV +4.66%) was downgraded to 'Neutral' from 'Overweight' at Piper Jaffray.

Shanda Asset Management cut its stake in Legg Mason ({=LM =}) to 5.8% from 10%.

Turning Point Brands (TPB -1.22%) filed a $200 million mixed securities shelf and registered up to 12.1 million shares to be sold by holders.

Fred's (FRED -2.94%) fell over 1% in after-hours trading after it registered up to 9.28 million shares for holder Alden Global Capital to sell.

MannKind (MNKD -2.76%) filed to offer up to 7.3 million shares via Series A warrants and filed to offer 2.4 million shares via Series B warrants.

MARKET COMMENTS

Sep E-mini S&Ps (ESU17 +0.33%) this morning are up +7.50 points (+0.31%). Friday's closes: S&P 500 +0.15%, Dow Jones +0.29%, Nasdaq -0.11%. The S&P 500 on Friday closed higher on the stronger-than-expected U.S. data that included the +0.4% increase in U.S. May personal income (vs expectations of +0.3%, the +6.3 point increase in the Jun Chicago PMI to a 3-year high of 65.7 (vs expectations of -1.4 to 58.0), and the +0.6 point gain in the U.S. Jun University of Michigan consumer sentiment to 95.1 (vs expectations of unchanged at 94.5). Stocks were undercut by carry-over weakness from a slide in European stocks to a 2-1/4 month low and by Goldman Sachs' cut its U.S. Q2 GDP estimate to 2.2% from 2.3%.

Sep 10-year T-notes (ZNU17 -0.11%) this morning are down -4 ticks to a 1-1/2 month low. Friday's closes: TYU7 -9.00, FVU7 -5.50. Sep 10-year T-notes on Friday fell to a 5-week low on the stronger-than-expected U.S. Chicago PMI and U.S. consumer sentiment reports and on a rally in stocks, which curbed safe-haven demand for T-notes.

The dollar index (DXY00 +0.47%) this morning is up +0.447 (+0.47%). EUR/USD (^EURUSD) is down -0.0051 (-0.45%) and USD/JPY (^USDJPY) is up +0.59 (+0.52%). Friday's closes: Dollar index +0.011 (+0.01%), EUR/USD -0.0015 (-0.13%), USD/JPY +0.21 (+0.19%). The dollar index on Friday closed slightly higher the unexpected increase in the Jun Chicago PMI to its fastest pace of expansion in 3 years and on the stronger-than-expected U.S. Jun University of Michigan consumer sentiment report. The dollar was undercut by the decline in the U.S. May core PCE deflator to a 17-month low of +1.4% y/y, which was dovish for Fed policy.

Aug WTI crude oil prices (CLQ17 +0.33%) this morning are up +4 cents (+0.09%) to a 2-week high and Aug gasoline (RBQ17 -0.30%) is -0.0075 (-0.50%). Friday's closes: Aug crude +1.11 (+2.47%), Aug gasoline +0.0367 (+2.48%). Aug crude oil and gasoline on Friday closed higher with Aug crude at a 2-week high and Aug gasoline at a 3-week high. Crude oil prices were boosted by unexpected increase in the China Jun manufacturing PMI, which is positive for global economic growth and energy demand, and by the increase in the crack spread to a 3-1/2 week high, which may boost refinery demand for crude to refine into gasoline.