OVERNIGHT MARKETS AND NEWS

Dec E-mini S&Ps (ESZ16 -0.64%) are down -0.55% and European stocks are up +0.22%. Weakness in energy producers is leading U.S. stocks lower as the price of crude oil (CLV16 -2.31%) tumbled -2.27% after the IEA projected that the global crude oil glut will persist through 2017 due to declining demand in China and India. The IEA just last month had estimated that the global oil market would return to equilibrium this year. Gains in European stocks were limited after a gauge of German ZEW investor confidence was unchanged, weaker than expected. Asian stocks settled mixed: Japan +0.34%, Hong Kong -0.32%, China +0.05%, Taiwan -0.07%, Australia -0.23%, Singapore -1.91%, South Korea +0.49%, India closed for holiday. Asian stocks found support on reduced Chinese economic concerns eased after China Aug industrial production rose more than expected.

The dollar index (DXY00 +0.22%) is up +0.17%. EUR/USD (^EURUSD) is down -0.02%. USD/JPY (^USDJPY) is up +0.33%.

Dec T-note prices (ZNZ16 +0.06%) are up +4 ticks.

The German Sep ZEW survey expectations of economic growth was unch at 0.5, weaker than expectations of +2.0 to 2.5.

China Aug industrial production rose +6.3% y/y, stronger than expectations of +6.2% y/y.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Treasury auction of $15 billion of 30-year T-bonds, and (2) Aug monthly budget statement (expected -$105.5 billion, Jul -$112.8 billion).

Russell 1000 companies that report earnings today: none.

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

Equity conferences today include: Barclays Global Financial Services Conference on Mon-Wed, Morgan Stanley Global Health Care Conference on Mon-Thu, B.Riley & Co. Consumer Conference on Tue, Raymond James North American Equities Conference on Tue, Bank of America Merrill Lynch Global Real Estate Conference on Tue-Wed, Deutsche Bank Technology Conference on Tue-Wed, Hart Energy DUG Eagle Ford Conference on Tue-Wed, KeyBanc Basic Materials & Packaging Conference on Tue-Wed, Credit Suisse Basic Materials Conference on Tue-Thu, Bank of America Merrill Lynch Power & Gas Leaders Conference on Wed, Credit Suisse European Industrials Conference on Wed, Deutsche Bank Metals and Mining Conference on Wed, Mizuho Investment Conference on Wed, Peters & Co.Limited Energy Conference on Wed, Bank of America Merrill Lynch Media, Communications & Entertainment Conference on Wed-Thu, Morgan Stanley Laguna Conference on Wed-Fri, Bank of America Merrill Lynch Japan Conference on Thu, BMO Capital Markets Back to School Education Conference on Thu, UBS Best of Americas Conference on Thu, Citi Global Industrials Conference on Fri, Kazakh Drilling Roundtable - 2nd Annual on Fri.

OVERNIGHT U.S. STOCK MOVERS

Netflix (NFLX +2.64%) was downgraded to 'Underperfrom' from 'Neutral' at Macquarie due to "hidden challenges."

Intersil (ISIL +2.07%) jumped over 7% in pre-market trading after it was bought by Renesas Electronics for about $3.2 billion.

Intuit (INTU +0.27%) was downgraded to 'Underweight' from 'Equalweight' at Morgan Stanley.

Chevron (CVX +0.97%) was rated a new 'Outperform' at BMO Capital Markets with a target price of $120.

Texas Instruments (TXN +1.90%) was upgraded to 'Outperform' from 'Market Perform' at Bernstein.

Vertex Pharmaceuticals (VRTX +4.46%) was rated a new 'Market Perform' at Raymond James.

United Natural Foods (UNFI +0.50%) rose over 2% in after-hours trading after it reported Q4 adjusted EPS of 70 cents, higher than consensus of 63 cents.

Crown Castle International (CCI +0.66%) was rated a new 'Buy' at SunTrust with a price target of $107.

Foamix Pharmaceuticals Ltd. (FOMX +15.70%) lost over 1% in after-hours trading after it registered 331,000 ordinary shares for resale after conversion of options granted to shareholders.

Applied Genetic Technologies (AGTC +6.63%) fell 5% in after-hours trading after it reported Q4 revenue of $12.1 million, less than consensus of $13.1 million.

Blue Buffalo Pet Products (BUFF +2.35%) declined over 2% in after-hours trading after it reported a secondary stock offering of 14.3 million shares.

Farmer Brothers (FARM +0.57%) dropped nearly 2% in after-hours trading after it reported Q4 adjusted EPS of 23 cents, below consensus of 32 cents.

Kratos Defense & Security Solutions (KTOS +1.23%) climbed nearly 6% in after-hours trading after it was awarded a $54 million contract to provide five Marine Common Aircrew Trainers (MCATs) to the United States Marine Corps.

Weight Watchers International (WTW +1.27%) slid over 4% in after-hours trading after CEO James Chambers said he will resign, effective September 30.

Fate Therapeutics (FATE -1.82%) tumbled nearly 8% in after-hours trading after it filed a 5.25 million share stock shelf for holders.

MARKET COMMENTS

Dec E-mini S&Ps (ESZ16 -0.64%) this morning are down -11.75 points (-0.55%). Monday's closes: S&P 500 +1.47%, Dow Jones +1.32%, Nasdaq +1.78%. The S&P 500 on Monday rebounded from a 2-month low and closed higher on reduced interest rate concerns after Fed Governor Brainard said the Fed should exercise "prudence" in removing accommodation. In addition, energy stocks were boosted by the +0.39% rally in crude oil prices.

Dec 10-year T-notes (ZNZ16 +0.06%) this morning are up +4 ticks. Monday's closes: TYZ6 +4.50, FVZ6 +4.25. Dec T-notes on Monday recovered from a 2-1/2 month low and closed higher on dovish comments from Fed Governor Brainard who said the Fed should exercise "prudence" in removing accommodation and from Minneapolis Fed President Kashkari who said he "wants to see more movement in core inflation" before raising interest rates. T-note prices were undercut by negative carryover from a sell-off in German bunds to a 2-1/2 month low and by supply pressures as the Treasury auctions $62 billion of T-notes and T-bonds on Monday and Tuesday.

The dollar index (DXY00 +0.22%) this morning is up +0.161 (+0.17%). EUR/USD (^EURUSD) is down -0.0002 (-0.02%). USD/JPY (^USDJPY) is up +0.34 (+0.33%). Monday's closes: Dollar index -0.241 (-0.25%), EUR/USD +0.0002 (+0.02%), USD/JPY -0.84 (-0.82%). The dollar index on Monday closed lower on the dovish comments from Minneapolis Fed President Kashkari who said he "wants to see more movement in core inflation" before the Fed raises interest rates.

Oct crude oil (CLV16 -2.31%) this morning is down -$1.06 a barrel (-2.27%) and Oct gasoline (RBV16 -2.06%) is down -0.0296 (-2.13%). Monday's closes: CLV6 +0.18 (+0.39%), RBV6 +0.0246 (+1.81%). Oct crude and gasoline on Monday closed higher on a weaker dollar and on stronger incentives for gasoline production as the crack spread rose to a 1-1/2 week high. Oil prices were also boosted by the recovery in stocks after the S&P 500 rebounded from a 2-month low and moved higher.