OVERNIGHT MARKETS AND NEWS

Mar E-mini S&Ps (ESH17 +0.19%) are up +0.22% and European stocks are up +0.93% on the heels of a rally in European bank stocks. Societe Generale SA is up almost 2% as it leads European bank stocks higher after reporting better-than-expected quarterly earnings results. A +0.96% rally in Mar WTI crude oil (CLH17 +0.61%) is giving energy producing stocks a lift as well. Asian stocks settled mostly higher: Japan -0.53%, Hong Kong +0.17%, China +0.51%, Taiwan +0.49%, Australia +0.23%, Singapore +0.44%, South Korea -0.01%, India +0.14%. China's Shanghai Composite climbed to a 1-3/4 month high as Chinese exporters rallied after trade concerns with the U.S. eased when President Trump sent Chinese President Xi Jinping a letter saying he is looking forward to a constructive relationship between the two countries.

The dollar index (DXY00 +0.08%) is up +0.02%. EUR/USD (^EURUSD) is down -0.14%. USD/JPY (^USDJPY) is up +0.39%.

Mar 10-year T-note prices (ZNH17 -0.16%) are down -6 ticks.

The German Dec trade balance shrank to a surplus of +18.7 billion euros, smaller than expectations of +20.5 billion euros and the smallest surplus in 11 months. Dec exports fell -3.3% m/m. weaker than expectations of -1.3% m/m and the biggest monthly decline in 16 months. Dec imports were unch m/m, stronger than expectations of -1.1% m/m.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly initial unemployment claims (expected +3,000 to 249,000, previous -14,000 to 246,000) and continuing claims (expected -6,000 to 2.058 million, previous -39,000 to 2.064 million), (2) St. Louis Fed President James Bullard (non-voter) speaks on the U.S. economy and monetary policy at a finance forum at Washington University in St. Louis, (3) revised Dec wholesale inventories (expected unrevised from prelim-Dec +1.0%. Dec wholesale trade sales, Nov +0.4% m/m), (4) Treasury auctions $15 billion of 30-year T-bonds, (5) Chicago Fed President Charles Evans (voter) speaks about current economic conditions and monetary policy at the CFA Society of Chicago, (6) USDA weekly Export Sales, (7) USDA Feb WASDE crop production.

Notable S&P 500 earnings reports today include: Coca-Cola (consensus $0.37), Kellogg (0.85), Yum Brands (0.74), Viacom (0.84), Cummins (2.00), Regeneron (3.04), VeriSign (0.88), Expedia (1.37), News Corp (0.18).

U.S. IPO's scheduled to price today: Foundation Building Materials (FBM), Sachem Capital (SACH), Clipper Realty (CLPR).

Equity conferences: Cowen Aerospace/Defense & Industrials Conference on Wed-Thu.

OVERNIGHT U.S. STOCK MOVERS

Paycom Software (PAYC -0.31%) rallied 10% in after-hours trading after it reported Q4 adjusted EPS of 18 cents, higher than consensus of 13 cents, and then said it sees Q1 revenue of $114.5 million-$116.5 million, above consensus of $113.8 million.

Twitter (TWTR +2.52%) tumbled 9% in pre-market trading after it reported Q4 revenue of $717 million, below consensus of $740 million.

Imperva (IMPV +0.59%) jumped nearly 9% in after-hours trading after it reported Q4 adjusted EPS of 32 cents, well above consensus of 2 cents, and then said it sees 2017 adjusted EPS of 31 cents-24 cents, stronger than consensus of 10 cents.

PayPal Holdings (PYPL +2.15%) lost nearly 2% in after-hours trading after it said it received subpoenas from the DOJ asking for information related to anti-money laundering.

iRobot (IRBT -1.05%) dropped 7% in after-hours trading after it said it sees 2017 EPS of $1.35-$1.65, below consensus of $1.74.

FleetCar Technologies (FLT +1.68%) climbed 6% in after-hours trading after it reported Q4 adjusted EPS of $1.90, above consensus of $1.87, and said it sees 2017 adjusted EPS of $8.10-$6.30 the midpoint above consensus of $8.16.

Zendesk (ZEN -0.28%) jumped 6% in after-hours trading after it reported a Q4 EPS loss of -4 cents, narrower than consensus of -6 cents, and said it sees full-year revenue of $415 million-$425 million, above consensus of $410.3 million.

Pilgrim's Pride (PPC +0.37%) dropped 3% in after-hours trading after it reported Q4 adjusted EPS of 30 cents, well below consensus of 40 cents.

TTM Technologies (TTMI +2.43%) rallied 5% in after-hours trading after it reported Q4 adjusted EPS of 58 cents, higher than consensus of 45 cents, and then said it sees Q1 adjusted EPS of 25 cents-31 cents, above consensus of 24 cents.

CoreCivic (CXW +1.27%) gained over 2% in after-hours trading after it reported Q4 revenue of $464.1 million, higher than consensus of $459 million.

TrueBlue (TBI -0.62%) slid over 6% in after-hours trading after it forecast Q1 adjusted EPS of 9 cents-14 cents, weaker than consensus of 17 cents.

PCM Inc. (PCMI +1.44%) rallied over 9% in after-hours trading after it reported Q4 adjusted EPS of 51 cents, better than consensus of 45 cents.

Qualys (QLYS +0.27%) dropped over 7% in after-hours trading after it said it sees Q1 adjusted EPS of 17 cents-19 cents, weaker than consensus of 21 cents, and then said its sees 2017 adjusted EPS of 81 cents-86 cents, below consensus of 92 cents.

Sterling Construction (STRL -1.15%) fell 8% in after-hours trading after it reported a Q4 preliminary net loss of -$5.5 million to -$6.5 million, well below a prior forecast of breakeven.

OraSure Technologies (OSUR +0.34%) jumped 12% in after-hours trading after it reported Q4 EPS of 13 cents, stronger than consensus of 6 cents, and then said it sees Q1 revenue of $31 million-$31.5 million, better than consensus of $29.7 million.

Student Transportation (STB +1.63%) rose 3% in after-hours trading after it was awarded a 10-year, $187 million contract starting July 1 to provide the Duval County School District in Jacksonville, Florida, with 230 school vehicles.

MARKET COMMENTS

Mar E-mini S&Ps (ESH17 +0.19%) this morning are up +5.00 points (+0.22%). Wednesday's closes: S&P 500 +0.07%, Dow Jones -0.18%, Nasdaq +0.21%. The S&P 500 on Wednesday closed higher on strength in energy producing stocks after crude oil prices recovered from a 3-week low and closed up +0.33%, and on reduced interest rate concerns after the 10-year T-note yield fell to a 3-week low. Technology stocks rallied as the Nasdaq Composite posted a fresh all-time high.

Mar 10-year T-notes (ZNH17 -0.16%) this morning are down -6 ticks. Wednesday's closes: TYH7 +8.00, FVH7 +4.75. Mar 10-year T-notes on Wednesday rallied to a 2-1/2 month high and closed higher on carry-over support from a rally in German bunds to a 3-week high as heightened political risks in Europe have boosted the safe-haven demand for government debt. T-notes also rallied on reduced inflation expectations after the 10-year T-note breakeven inflation rate fell to a 4-week low. T-notes fell back from their best levels on weak demand for the Treasury's $23 billion 10-year T-note auction that had a bid-to-cover-ratio of 2.29, weaker than the 12-auction average of 2.50.

The dollar index (DXY00 +0.08%) this morning is up +0.02 (+0.02%). EUR/USD (^EURUSD) is down -0.0015 (-0.14%). USD/JPY (^USDJPY) is up +0.44 (+0.39%). Wednesday's closes: Dollar index -0.070 (-0.07%), EUR/USD +0.0015 (+0.14%), USD/JPY -0.46 (-0.41%). The dollar index on Wednesday closed lower on weakness in USD/JPY as political risks in Europe boosted the safe-haven demand for the yen and on the fall in the 10-year T-note yield to a 3-week low, which undercuts the dollar's interest rate differentials.

Mar WTI crude oil prices (CLH17 +0.61%) this morning are up +50 cents (+0.96%) and Mar gasoline (RBH17 +0.47%) is +0.0125 (+0.81%). Wednesday's closes: Mar crude +0.17 (+0.33%), Mar gasoline +0.0652 (+4.38%). Mar crude oil rebounded from a 3-week low and Mar gasoline recovered from a 2-1/4 month low on on a weaker dollar and on the unexpected decline in EIA gasoline inventories by -869,000 bbl (versus expectations for a +1.5 million bbl increase). Crude oil prices were undercut by the +13.83 million bbl surge in EIA crude oil inventories to an 8-1/2 month high (well above expectations of +2.5 million bbl) and by the +0.7% increase in U.S. crude production in the week of Feb 3 to a 10-month high of 8.978 million bpd.