Overnight Markets And News

Jun E-mini S&Ps (ESM18 +0.21%) this morning are up +0.25% and European stocks are up +0.35% on positive corporate quarterly earnings results. Facebook is up 6% in pre-market trading to lead the overall market higher after it reported stronger-than-expected Q1 revenue. Automakers are higher as well after people with knowledge of the matter said China's State Council is considering cutting the import duty on passenger cars to 10% or 15% from the current 25% levy. China imported 1.22 million vehicles last year, or about 4.2% of the country's total of about 28.9 million automobiles. The markets await the conclusion of today's ECB meeting and comments from ECB President Draghi after the policy meeting. Asian stocks settled mixed: Japan +0.47%, Hong Kong -1.06%, China -1.38%, Taiwan -0.68%, Australia -0.18%, Singapore +0.06%, South Korea +1.30%, India +0.62%. Weakness in technology stocks fueled losses in China's Shanghai Composite on reports of a probe by the U.S. Justice Department into Huawei Technologies, China's largest maker of telecommunications equipment, for possible violations of sanctions banning sales to Iran. Weakness in the yen boosted Japanese exporter stocks and led the Nikkei Stock Index to a 1-3/4 month high after USD/JPY climbed to a 2-1/2 month high Wednesday.

The dollar index (DXY00 -0.09%) is down -0.07%. EUR/USD (^EURUSD +0.20%) is up +0.18%. USD/JPY (^USDJPY-0.28%) is down -0.23%.

Jun 10-year T-note prices (ZNM18 +0-075) are up +5.5 ticks.

UK Apr CBI retailing reported sales rose +6 to -2, stronger than expectations of +5 to -3.

German May GfK consumer confidence fell -0.1 to 10.8, right on expectations.

U.S. Stock Preview

Key U.S. news today includes: (1) weekly initial unemployment claims (expected -2,000 to 230,000, previous -1,000 to 232,000) and continuing claims (expected -13,000 to 1.850 million, previous -15,000 to 1.863 million), (2) Mar durable goods orders (expected +1.6% and +0.5% ex transportation, Feb +3.0% and +1.0% ex transportation), (3) Mar wholesale inventories (expected +0.7% m/m, Feb +1.0% m/m), (4) USDA weekly Export Sales, (5) Apr Kansas City Fed manufacturing index (expected unch at 17, Mar unch at 17), (6) Treasury auctions $29 billion of 7-year T-notes.

Notable S&P 500 earnings reports today include: Amazon (consensus $1.26), Microsoft (0.85), Starbucks (0.53), Expedia Group (-0.48), Intel (0.71), Discover Financial (1.77), Newmont Mining (0.33), Time Warner (1.75), Baxter (0.62), AbbVie (1.79), PepsiCo (0.93), American Airlines (0.72), UPS (1.54), GM (1.24).

U.S. IPO's scheduled to price today: Goosehead Insurance (GSHD), Smartsheet (SMAR), DocuSign (DOCU).

Equity conferences this week: American Academy of Neurology Meeting on Mon-Fri.

Market Comments

June S&P 500 E-minis (ESM18 +0.21%) this morning are up +6.50 points (+0.25%). Wednesday's closes: S&P 500 +0.18%, Dow Jones +0.25%, Nasdaq +0.08%. The S&P 500 on Wednesday recovered from a 2-week low and closed higher on strength in energy stocks after crude oil prices rose +0.52%, and on positive S&P 500 corporate earnings results with nearly 80% of reporting companies having surpassed profit expectations. Stocks were undercut by higher interest rates after the 10-year T-note yield rose to a 4-1/4 year high of 3.03%, and by weakness in mining stocks and metals producers after gold prices fell to a 1-month low and silver prices fell to a 1-week low.

June 10-year T-notes (ZNM18 +0-075) this morning are up +5.5 ticks. Wednesday's closes: TYM8 -8.00, FVM8 -3.00. The Jun 10-year T-note on Wednesday fell to a fresh contract low and closed lower. T-note prices were undercut by supply pressures as the Treasury auctioned $52 billion of 5-year T-notes and 2-year floating rate notes on Wednesday. June 10-year T-notes were also undercut by technical selling with the new contract low.

The dollar index (DXY00 -0.09%) this morning is down -0.063 (-0.07%). EUR/USD (^EURUSD +0.20%) is up +0.0022 (+0.18%). USD/JPY (^USDJPY -0.28%) is down -0.25 (-0.23%). Wednesday's closes: Dollar Index +0.406 (+0.45%), EUR/USD -0.0072 (-0.59%), USD/JPY +0.61 (+0.56%). The dollar index on Wednesday climbed to a 3-1/2 month high and closed higher on the jump in the 10-year T-note yield to a 4-1/4 year high, which improves the dollar's interest rate differentials.

Metals prices this morning are mixed with Jun gold (GCM18 +0.25%) +3.1 (+0.23%), May silver (SIK18 +0.23%) +0.038 (+0.23%), and May copper (HGK18 -0.94%) -0.026 (-0.83%). Wednesday's closes: Jun gold -10.20 (-0.77%), May silver -0.201 (-1.20%), May copper -0.0075 (-0.24%). Metals on Wednesday closed lower with Jun gold at a 1-month low and May silver at a 1-week low. Metals prices were undercut by the rally in the dollar index to a 3-1/2 month high and by weakness in equities.

Jun WTI crude oil prices (CLM18 +0.66%) this morning are up +41 cents (+0.60%) and Jun gasoline (RBM18 +0.39%) is +0.0081 (+0.39%). Wednesday's closes: Jun crude +0.35 (+0.52%), Jun gasoline -0.0047 (-0.22%). Jun crude oil and gasoline on Wednesday settled mixed. Crude oil prices were boosted by concern that President Trump may exit from the Iranian nuclear deal and put sanctions on Iran that curbs Iran's crude exports. Crude oil prices were undercut by the rally in the dollar index to a 3-1/2 month high, the unexpected +2.17 million bbl increase in EIA crude inventories (more than expectations of -2.2 million bbl), and by the unexpected +840,000 bbl increase in EIA gasoline inventories (more than expectations of -2.0 mln bbl).

Overnight U.S. Stock Movers

Facebook (FB unch) climbed more than 6% in pre-market trading after it reported Q1 revenue of $11.97 billion, higher than consensus of $11.41 billion, and reported 2.2 billion monthly active users in Q1, above consensus of 2.19 billion.

O'Reilly Automotive (ORLY +1.35%) rallied more than 10% in after-hours trading after it reported Q1 EPS of $3.61, better than consensus of $3.58 as comparable store sales rose +3.4%, higher than consensus of 2.7%.

Boeing (BA +4.19%) was upgraded to 'Buy' from 'Hold' at Vertical Research Partners with a price target of $396.

Chipotle Mexican Grill (CMG +1.93%) jumped 10% in after-hours trading after it reported Q1 EPS of $2.13, well above consensus of $1.57.

Visa (V -0.05%) gained nearly 2% in after-hours trading after it reported Q2 adjusted EPS of $1.11, above consensus of $1.02.

Citrix Systems (CTXS -0.02%) rose 4% in after-hours trading after it reported Q1 net revenue of $697.2 million, better than consensus of $675.6 million, and forecast full-year revenue of $2.88 billion to $2.91 billion, above consensus of $2.88 billion.

FARO Technologies (FARO -2.96%) tumbled 9% in after-hours trading after it reported Q1 EPS of 3 cents, below consensus of 8 cents.

Cheesecake Factory (CAKE +0.53%) fell almost 5% in after-hours trading after it reported Q1 EPS of 56 cents, weaker than consensus of 68 cents.

eBay (EBAY -0.51%) slid more than 3% in after-hours trading after it reported Q1 net revenue of $2.58 billion, weaker than consensus of $2.59 billion and forecast Q2 net revenue of $2.64 billion to $2.68 billion, the midpoint below consensus of $2.68 billion.

PayPal Holdings (PYPL -1.70%) gained 3% in after-hours trading after it forecast Q2 net revenue of $3.78 billion to $3.83 billion, higher than consensus of $3.75 billion.

Netgear (NTGR -3.94%) fell 6% in after-hours trading after it forecast Q2 revenue of $340 million to $355 million, weaker than consensus of $355.5 million.

AT&T (T +0.57%) slid 4% in after-hours trading after it reported Q1 adjusted Ebitda of $12.44 billion, below consensus of $13.22 billion.

Qualcomm (QCOM -0.38%) gained nearly 3% in after-hours trading after it reported Q2 adjusted revenue of $5.23 billion, above consensus of $5.22 billion.

BioTelemetry (BEAT +1.35%) climbed nearly 7% in after-hours trading after it reported Q1 revenue of $94.5 million, better than consensus of $91.6 million.

Ford Motor (F +1.37%) rose almost 3% in after-hours trading after it reported Q1 adjusted EPS of 43 cents, better than consensus of 41 cents, and then announced $11.5 billion in cost and efficiency actions.