OVERNIGHT MARKETS AND NEWS

Dec E-mini S&Ps (ESZ16 +0.18%) are up +0.18% and European stocks are up +0.49% on speculation U.S. President-elect Trump's policies will spur economic growth. Also, a rally in energy producing stocks is giving the market a boost with Dec WTI crude oil (CLZ16 +1.90%) up +1.90% at a 2-1/2 week high after Iranian Oil Minister Bifan Namdar Zanganeh said its' "highly probable" OPEC members will reach a consensus on oil production cuts. Crude prices extended their gains after Russian President Putin said that he sees no obstacles to OPEC reaching a pact later this month and that Russia is willing to freeze its crude oil output at current levels. European stocks recovered from a 1-week low and moved higher after the Bundesbank in its monthly report said that Q4 German economic growth "is likely to pick up again considerably." Asian stocks settled mixed: Japan +0.77%, Hong Kong +0.06%, China +0.79%, Taiwan +0.36%, Australia -0.15%, Singapore -0.77%, South Korea -0.28%, India -1.47%. Japan's Nikkei Stock Index rallied to a 10-1/2 month high as the fall in the yen to a 5-1/2 month low against the dollar has boosted export stocks on the prospects of increased profits. China's Shanghai Composite also rise to a 10-1/2 month high on speculation the government will increase fiscal spending to spur domestic growth.

The dollar index (DXY00 -0.22%) is down -0.25%. EUR/USD (^EURUSD) is up +0.40% after the Bundesbank's monthly report said that monetary indicators "don't show the need for more monetary policy action." USD/JPY (^USDJPY) is down -0.31%.

Dec 10-year T-note prices (ZNZ16 +0.10%) are up +3.5 ticks.

The Bundesbank in its monthly report said that Q4 German economic growth "is likely to pick up again considerably" with underlying cyclical momentum "quite strong" and that monetary indicators "don't show the need for more monetary policy action."

The Japan Oct trade balance was in surplus by +496.2 billion yen, narrower than expectations of +610.0 billion yen. Oct exports fell -10.3% y/y, weaker than expectations of -8.5% y/y. Oct imports fell -16.5% y/y, weaker than expectations of -16.1% y/y.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Fed Vice Chair Stanley Fischer speaks to the Council on Foreign Relations on “Longer-Term Challenges for the U.S. Economy,” (2) Oct Chicago Fed national activity index (expected +0.14 to 0.00, Sep +0.58 to -0.14), (3) Treasury auctions $26 billion of 2-year T-notes, (4) USDA weekly grain export inspections, (5) USDA Weekly Crop Progress.

Russell 1000 earnings reports today include: Tyson Foods (consensus $1.17), Intl Game Technology (0.44), Brocade Communications (0.22), Palo Alto Networks (0.52), Copart (0.55).

U.S. IPO's scheduled to price today: Accelerated Pharma (ACCP), Innovative Industrial Properties (IIPR)

Equity conferences this week include: none.

OVERNIGHT U.S. STOCK MOVERS

Chesapeake Energy (CHK +0.85%) and Murphy Oil (MUR +1.42%) are both up over 4% in pre-market trading as crude oil prices jumped to a 2-1/2 week high in overnight trade.

Time Warner (TWX +0.73%) was upgraded to 'Outperform' from 'Market Perform' at FBR Capital Markets with a price target of $104.

U.S. Steel (X -2.06%) was downgraded to 'Neutral' from 'Buy' at Rosenblatt with a price target of $29.

Air Products (APD -0.03%) was upgraded to 'Buy' from 'Hold' at Argus Research with a price target of $159.

First Interstate BancSystem (FIBK -6.12%) was upgraded to 'Buy' from 'Hold' at Sandler O'Neill with a 12-month price target of $41.

Fossil (FOSL -1.49%) was upgraded to 'Neutral' from 'Underweight' at Piper Jaffray with a 12-month price target of $32.

3M (MMM +0.11%) was downgraded to 'Sell' from 'Neutral' at Goldman Sachs with a target price of $159.

Foot Locker (FL +0.60%) was downgraded to 'Neutral' from 'Overweight' at Piper Jaffray with a 12-month target price of $72.

Rockwell Automation (ROK -0.57%) was upgraded to 'Buy' from 'Hold' at Vertical.

Facebook (FB -0.65%) gained 1% in after-hours trading after it said it will buy back up to $6 billion of Class A shares.

CONSOL Energy (CNX +1.93%) rose 1%% in after-hours trading after it was upgraded to 'Overweight' from 'Equal-Weight' at Morgan Stanley with a price target of $30.

Poinststate Capital reported a 9.99% passive stake in Comstock Resources (CRK +4.90%) , making it the second-largest holder.

MARKET COMMENTS

Dec E-mini S&Ps (ESZ16 +0.18%) this morning are up +4.00 points (+0.18%). Friday's closes: S&P 500 -0.24%, Dow Jones -0.19%, Nasdaq -0.38%. The S&P 500 on Friday fell back from a 2-3/4 month high and closed lower on concern that higher interest rates will reduce investment demand for stocks after the 10-year T-note yield rose to a 1-year high of 2.362%. There was also weakness in global companies on concern the surge in the dollar index to a 13-1/2 year high will crimp their overseas sales and reduce corporate profits.

Dec 10-year T-notes (ZNZ16 +0.10%) this morning are up +3.5 ticks. Friday's closes: TYZ6 -16.50, FVZ6 -8.50. Dec 10-year T-notes on Friday sold off to a contract low and the 10-year T-note yield rose to a 1-year high of 2.362%. T-note prices were undercut by comments from St. Louis Fed President Bullard (voter) who said he is "leaning towards" supporting a rate increase next month. In addition, Kansas City Fed President George (voter) said she sees "moving sooner rather than later" to raise interest rates.

The dollar index (DXY00 -0.22%) this morning is down -0.260 (-0.26%). EUR/USD (^EURUSD) is up +0.0042 (+0.40%). USD/JPY (^USDJPY) is down -0.34 (-0.31%). Dollar index +0.320 (+0.32%), EUR/USD -0.0038 (-0.36%), USD/JPY +0.79 (+0.72%). The dollar index on Friday soared to a 13-1/2 year high and closed higher on hawkish comments by Kansas City Fed President George (voter), who said she sees raising interest rates "sooner rather than later," and by St. Louis Fed President Bullard (voter), who said he is "leaning towards" supporting a rate increase at the Dec FOMC meeting. There was also weakness in EUR/USD, which fell to a 11-1/2 month low on signs the ECB will maintain or even expand its stimulus measures after ECB President Draghi said the Eurozone recovery "remains highly reliant on continued monetary support."

Dec crude oil prices (CLZ16 +1.90%) this morning are up +87 cents (+1.90%) at a 2-1/2 week high and Dec gasoline (RBZ16 +1.90%) is up +0.0265 (+1.98%). Friday's closes: Dec crude +0.27 (+0.69%), Dec gasoline -0.0075 (-0.56%). Dec crude oil and gasoline on Friday settled mixed. Crude oil prices were boosted by comments from Algeria's Energy Minister who said he's more optimistic of clinching an agreement to reduce oil production after discussions between OPEC and Russia in Doha. Crude oil prices were undercut by the rally in the dollar index to a 13-1/2 year high and by the increase in U.S. oil rigs by +19 to a 9-1/2 month high of 471 rigs in the week ended Nov 18.