Overnight Markets and News

Jun E-mini S&Ps (ESM18 -0.61%) this morning are down -0.54% at a 1-week low and European stocks are down -0.71% as weakness in commodity prices leads mining stocks raw-material producers lower. Also, technology stocks are lower, led by suppliers to Apple, after people familiar with the situation said Apple is making a significant investment in the development of next-generation MicroLED screens. British Gilts fell and GBP/USD climbed +0.56% to a 3-week high after the WSJ reported an unidentified EU official said the EU and UK have agreed to broad terms on Britain's 2-year Brexit transition deal. Asian stocks settled mixed: Japan -0.90%, Hong Kong +0.04%, China +0.29%, Taiwan +0.17%, Australia +0.17%, Singapore -0.39%, South Korea -0.78%, India -0.76%. Weakness in Asian technology suppliers to Apple led Japanese stocks lower on a report that Apple is designing and producing its own device displays for the first time. China's Shanghai Composite recovered from a 1-1/2 week low and closed higher after China's incoming central bank governor, Yi Gang, signaled that he will maintain the course of financial liberation set forth by his predecessor Zhou Xiaochuan.

The dollar index (DXY00 -0.04%) is down -0.10%. EUR/USD (^EURUSD -0.06%) is down -0.03%. USD/JPY (^USDJPY +0.14%) is up +0.12%.

Jun 10-year T-note prices (ZNM18 -0-045) are down -3.5 ticks.

China Feb new home prices rose in 44 of 70 cities tracked by the government, down from 52 that rose in Jan.

ECB Governing Council member Knot said, "the outlook is almost as good as it gets" for the Eurozone economy and the region is "projected to continue this firm path of growth."

Eurozone Jan construction output fell -2.2% m/m, the biggest decline in a year.

U.S. Stock Preview

Key U.S. news today includes: (1) Atlanta Fed President Raphael Bostic (voter) speaks about the Community Reinvestment Act at a conference in Miami, (2) USDA weekly grain export inspections.

Notable Russell 1000 earnings reports today include: Oracle (consensus $0.72).

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

Equity conferences this week: Morgan Stanley European Financials Conference on Tue, Telsey Advisory Group Spring Consumer Conference on Tue, UBS North American Power, Utilities, Alternative Energy and Environmental Services on Tue, Oppenheimer Healthcare Conference on Tue-Wed, Bank of America Merrill Lynch Global Industrials Conference on Tue-Thu, ACI European Fuels Markets & Refining Strategy Conference on Thu, Gabelli & Company Waste Conference on Fri.

Market Comments

Jun S&P 500 E-mini stock futures (ESM18 -0.61%) this morning are down -14.75 points (-0.54%). Friday's closes: S&P 500 +0.17%, Dow Jones +0.29%, Nasdaq -0.16%. The S&P 500 on Friday closed higher on the stronger than expected U.S. economic data that included the +1.2% increase in U.S. Feb manufacturing production (stronger than expectations of +0.5%), the +645,000 increase in the U.S. Jan JOLTS job openings to a record 6.312 million (stronger than expectations of +106,000 to 5.917 million), and the unexpected +2.3 point increase in the University of Michigan U.S. Mar consumer sentiment to a 14-year high of 102.0 (stronger than expectations of -0.4 to 99.3).

Jun 10-year T-note prices (ZNM18 -0-045) this morning are down -3.5 ticks. Friday's closes: TYM8 -5.00, FVM8 -3.75. Jun 10-year T-notes on Friday closed lower on the +645,000 increase in U.S. Jan JOLTS job openings to a record high 6.312 million, and on the unexpected +2.3 point increase in the University of Michigan U.S. Mar consumer sentiment to a 14-year high of 102.0. A supportive factor was that U.S. Feb building permits fell a more-than-expected -5.7% to a 5-month low of 1.298 million.

The dollar index (DXY00 -0.04%) this morning is down -0.094 (-0.10%). EUR/USD (^EURUSD -0.06%) is down -0.0004 (-0.03%) and USD/JPY (^USDJPY +0.14%) is up +0.13 (+0.12%). Friday's closes: Dollar Index +0.094 (+0.10%), EUR/USD -0.0015 (-0.12%), USD/JPY -0.33 (-0.31%). The dollar index on Friday rallied to a 2-week high and settled higher on stronger-than-expected U.S. economic data that included the Feb manufacturing production and Jan JOLTS job openings report, which were hawkish for Fed policy. There was also weakness in EUR/USD, which fell to a 2-week low after the Eurozone Feb CPI report was unexpectedly revised lower to a 14-month low of +1.1% y/y from the originally reported +1.2% y/y.

Apr crude oil (CLJ18 -0.51%) this morning is down -24 cents (-0.38%) and Apr gasoline (RBJ18 -0.51%) is -0.0086 (-0.44%). Friday's closes: Apr WTI crude +1.15 (+1.88%), Apr gasoline +0.0211 (+1.10%). Apr crude oil and gasoline on Friday closed higher with Apr crude at a 1-week high and Apr gasoline at a 2-week high. Crude oil prices were boosted by the IEA's hike in its global 2018 oil demand forecast by +90,000 bpd to 1.5 million bpd. The main bearish factor was the rally in the dollar index to a 2-week high.

Metals prices this morning are lower with Apr gold (GCJ18 -0.16%) -1.3 (-0.10%) at a fresh 2-week low, May silver (SIK18 -0.20%) -0.002 (-0.01%), and May copper (HGK18 -1.26%) -0.036 (-1.14%). Friday's closes: Apr gold -5.5 (-0.42%), May silver -0.150 (-0.91%), May copper -0.0200 (-0.64%). Metals on Friday closed lower with Apr gold and May silver at 2-week lows. Metals prices were undercut by the rally in the dollar index to a 2-week high and by reduced safe-haven demand for precious metals prices which the rally in stocks. Copper prices were undercut by news that Shanghai copper inventories rose +28,899 MT to a 11-1/4 month high of 296,994 MT.

Overnight U.S. Stock Movers

Tesla (TSLA -1.31%) slid nearly 2% in pre-market trading after Goldman Sachs said the company's Model 3 deliveries will fall "well short" of consensus expectations

GrubHub (GRUB -0.32%) was downgraded to 'Hold' from 'Buy' at Stifel.

Zoetis (ZTS -0.11%) was downgraded to 'Equal-Weight' from 'Overweight' at Morgan Stanley.

Jazz Pharmaceuticals PLC (JAZZ +3.62%) was upgraded to 'Overweight' from 'Equal-Weight' at Morgan Stanley with a price target of $183.

Amdocs Ltd (DOX +0.50%) was upgraded to 'Buy' from 'Hold' at Jeffries.

Newell Brands (NWL -0.80%) gained over 2% in after-hours trading after activist investor Carl Icahn reported a 6.86% stake in the company.

A10 Networks (ATEN +0.46%) was downgraded to 'Neutral' from 'Buy' at D.A. Davidson & Co.

Nobility Homes (NOBH -17.35%) may move higher this morning after Gamco Investors reported a 12.68% stake in the company.

Liberty Media (FWONA -0.39%) may move higher this morning after Gamco Investors reported a 10.96% stake in the company.

Moneygram International (MGI -5.08%) may move higher this morning after it reported Q4 revenue of $408.2 million, better than consensus of $303.8 million.

Geron (GERN -3.16%) slid 3% in after-hours trading after it reported Q4 revenue of $0.19 million, weaker than consensus of $0.41 million.