Overnight Markets And News

Sep E-mini S&Ps (ESU18 +0.06%) this morning are up +0.05% and European stocks are down -0.36% in mixed trade. Strength in mining stocks and commodity producers are giving a lift to the overall market with Sep COMEX copper (HGU18 +1.84%) up +2.04% to a 1-week high. Fund buying pushed copper prices higher on speculation the Chinese government will boost economic stimulus to spur domestic demand. The Russian ruble tumbled to a 1-1/2 year low against the dollar after the U.S. announced new sanctions on Russia over the nerve-agent attack on a double agent in the UK back in March. Turkey's lira sank to a record low against the dollar on speculation the U.S. may impose additional sanctions on Turkey as it refuses to release an American pastor. Asian stocks settled mixed: Japan -0.20%, Hong Kong +0.88%, China +1.83%, Taiwan -0.43%, Australia +0.46%, Singapore -0.40%, South Korea +0.07%, India +0.36%. Chinese stocks moved higher after the China Securities Regulatory Commission said it will revise regulations to broaden access for foreign funds and to ease access for overseas investors. Also, Chinese technology stocks rallied after China's State Council said it will set up a group to develop the technology sector. Japanese stocks declined on economic and trade concerns after Japan Jun core machine orders posted their biggest monthly decline in 6 months. Japan's Economy Minister Motegi will meet with U.S. Trade Representative Lighthizer for a 2-day meeting later today in Washington on high-level trade talks.

The dollar index (DXY00 +0.17%) is up +0.13%. EUR/USD (^EURUSD -0.14%) is down -0.15%. USD/JPY (^USDJPY +0.14%) is up +0.13%.

Sep 10-year T-note prices (ZNU18 +0-015) are up +1 tick.

Japan Jun core machine orders dropped -8.8% m/m, weaker than expectations of -1.0% m/m and the biggest decline in 6-months.

China Jul CPI rose +2.1% y/y, stronger than expectations of +2.0% y/y. Jul PPI rose +4.6% y/y, stronger than expectations of +4.5% y/y.

U.S. Stock Preview

Key U.S. news today includes: (1) weekly initial unemployment claims (expected +2,000 to 220,000, previous +1,000 to 218,000) and continuing claims (expected +6,000 to 1.730 million, previous -23,000 to 1.724 million), (2) Jul PPI final demand (expected +0.2% m/m and +3.4% y/y, Jun +0.3% m/m and +3.4% y/y) and Jul PPI ex food & energy (expected +0.3% m/m and +2.8% y/y, Jun +0.3% m/m and +2.8% y/y), (3) final-Jun wholesale inventories (expected unrevised at 0.0%) and Jun wholesale trade sales (expected +0.2% m/m, May +2.5% m/m), (4) Treasury auctions $18 billion of 30-year T-bonds, (5) Chicago Fed President Charles Evans (non-voter) speaks to reporters at an event in Chicago.

Notable S&P 500 earnings reports today include: Viacom (consensus $1.07), News Corp (0.06), Norwegian Cruise Lines (1.04), Microchip Technology (1.49), Perrigo (1.20).

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

Equity conferences during the remainder of this week: Jefferies Global Industrials Conference on Tue-Thu, J.P. Morgan Auto Conference on Wed-Thu, Canaccord Genuity Growth Conference on Wed-Thu, UBS Genomics Summit on Thu, DA Davidson Technology Conference on Thu, Wells Fargo Securities Technology Services Forum on Thu.

Market Comments

Sep S&P 500 E-minis (ESU18 +0.06%) this morning are up +1.50 points (+0.05%). Wednesday's closes: S&P 500 -0.03%, Dow Jones -0.18%, Nasdaq 100 +0.09%. The S&P 500 on Wednesday closed little changed. Stocks found support on strength in technology stocks and on stellar S&P 500 quarterly earnings results with more than 80% of the 420 reporting S&P 500 companies having beaten expectations. Stocks were undercut by increased China/U.S. trade tensions after the U.S. said it will impose a 25% tariff on an additional $16 billion of Chinese goods starting Aug 23 and China said it will retaliate by imposing tariffs on $16 billion of U.S. goods. There was also weakness in energy stocks as crude oil prices tumbled -3.22% to a 3-week low.

Sep 10-year T-notes (ZNU18 +0-015) this morning are up +1 tick. Wednesday's closes: TYU8 +1.00, FVU8 +0.75. Sep 10-year T-notes on Wednesday closed slightly higher on increased safe-haven demand for T-notes on an escalation of China/U.S. trade tensions that may undercut global growth. T-notes also found support on strong demand for the Treasury's record $26 billion auction of 10-year T-notes that had a bid-to-cover ratio of 2.55, higher than the 12-auction average of 2.47.

The dollar index (DXY00 +0.17%) this morning is up +0.128 (+0.13%). EUR/USD (^EURUSD -0.14%) is down -0.0017 (-0.15%). USD/JPY (^USDJPY +0.14%) is up +0.14 (+0.13%). Wednesday's closes: Dollar Index -0.165 (-0.17%), EUR/USD +0.0011 (+0.09%), USD/JPY -0.40 (-0.36%). The dollar index on Wednesday closed lower on an escalation of China/U.S. trade tensions that is dovish for Fed policy after the U.S. and China exchanged a 25% tariff on $16 billion worth of each other's goods.

Metals this morning are higher with Dec gold (GCZ18 +0.10%) +1.3 (+0.11%), Sep silver (SIU18 +0.41%) +0.058 (+0.38%) and Sep copper (HGU18 +1.84%) +0.056 (+2.04%) at a 1-week high. Wednesday's closes: Dec gold +2.7 (+0.22%), Sep silver +0.059 (+0.38%), Sep copper -0.0010 (-0.04%). Metals on Wednesday settled mixed. Metals prices were undercut by an escalation of China/U.S. trade tensions after the U.S. said it will impose a 25% tariff on an additional $16 billion of Chinese goods starting Aug 23. There was also continued fund liquidation of gold after long gold positions in ETFs fell to a 5-3/4 month low Tuesday. Metals found support on the weaker dollar.

Sep WTI crude oil (CLU18 +0.03%) this morning is up +3 cents (+0.04%). Sep gasoline (RBU18 -0.17%) is up +0.29 (+0.14%). Wednesday's closes: Sep crude oil -2.23 (-3.22%), Sep gasoline -8.45 (-4.02%). Sep crude oil and gasoline on Wednesday tumbled to 3-week lows and closed lower. Crude oil prices were undercut by the -1.351 million bbl decline in weekly EIA crude inventories (vs expectations of -3.0 million bbl) and by the unexpected +2.9 million bbl increase in EIA gasoline stockpiles (more than expectations of -1.9 million bbls). Crude oil prices were supported by the -590,000 bbl decline in crude oil supplies at Cushing to a new 3-3/4 year low.

Overnight U.S. Stock Movers

Ormat Technologies (ORA -4.94%) was upgraded to 'Overweight' from 'Neutral' at JPMorgan Chase with a price target of $60.

Signature Bank (SBNY +1.52%) was upgraded to 'Outperform' from 'Market Perform' at Hovde Group with a price target of $133.

Atmos Energy (ATO -0.10%) may initially open lower this morning after it forecast full-year adjusted EPS of $3.85 to $4.05, the midpoint below consensus of $3.96.

Masonite International (DOOR -1.73%) may initially open higher this morning after it reported Q2 adjusted Ebitda of $78.3 million, better than consensus of $76.6 million.

Jack in the Box (JACK +0.14%) jumped 7% in after-hours trading after it reported Q3 adjusted operating EPS of $1.00, better than consensus of 88 cents.

Carvana (CVNA -0.19%) rallied 10% in after-hours trading after it reported Q2 revenue of $475.3 million, well above estimates of $424.2 million, and then raised its full-year revenue estimate to $1.85 billion to $1.95 billion from prior view of $1.75 billion to $1.85 billion.

Axon Enterprise (AAXN -11.59%) was upgraded to 'Outperform' from 'In-line' at Imperial Capital LLC with a price target of $62.

Yelp (YELP -1.27%) rallied over 12% in after-hours trading after it forecast full-year adjusted Ebitda of $186 million to $192 million, higher than consensus of $183.8 million.

Bonanza Creek Energy (BCEI -1.70%) may initially open lower this morning after it reported Q2 adjusted EPS of $1.18, well below consensus of $1.40.

Zumiez (ZUMZ +1.81%) gained more than 4% in after-hours trading after it raised its Q2 EPS view to 13 cents-14 cents from a prior estimate of 4 cents to 9 cents.

Flowers Foods (FLO -3.04%) fell nearly 4% in after-hours trading after it reported Q2 adjusted EPS of 25 cents, weaker than consensus of 28 cents, and then forecast full-year adjusted EPS of $1.00 to $1.07, below consensus of $1.07.

CenturyLink (CTL -0.54%) climbed almost 5% in after-hours trading after it reported Q2 adjusted EPS of 26 cents, better than consensus of 24 cents.

Wildhorse Resource Development (WRD -13.38%) was upgraded to 'Buy' from 'Hold' at SunTrust Robinson Humphrey with a price target of $25.

Nuance Communications (NUAN +0.26%) rose more than 3% in after-hour trading after it forecast full-year adjusted EPS of $1.11 to $1.15, the midpoint above consensus of $1.11.

Akebia Therapeutics (AKBA -3.19%) tumbled 13% in after-hours trading after it reported a Q2 net loss of -60 cents a share, wider than consensus of -50 cents.