OVERNIGHT MARKETS AND NEWS

Sep E-mini S&Ps (ESU17 +0.03%) this morning are up +0.05% at a fresh all-time nearest-futures high. European stocks are up +0.36% ahead of the conclusion of the 2-day ECB policy meeting and press conference from ECB President Draghi. Signs of strength in the global economy are positive for world stock prices after Japan Jun exports rose more than expected and after the BOJ raised its Japan 2017 GDP estimate to 1.8% from 1.6%. Asian stocks settled mostly higher: Japan +0.62%, Hong Kong +0.26%, China +0.43%, Taiwan -0.06%, Australia +0.51%, Singapore -0.96%, South Korea +0.53%, India -0.16%. Asian stocks settled higher on the heels of a rally in U.S. stocks Wednesday to all-time highs with China's Shanghai Composite climbing to a 3-month high. Japanese stocks gained after the BOJ maintained its QE program and pushed back the projected timing for reaching its 2.0% target for the sixth time.

The dollar index (DXY00 +0.30%) is up +0.24%. EUR/USD (^EURUSD) is down -0.04%. USD/JPY (^USDJPY) is up +0.28% after the BOJ cut its 2017 core inflation estimate to 1.1% from 1.4% and said it now expects to hit its 2.0% inflation target around the fiscal year starting Apr 2019, a year later than a previous projection.

Sep 10-year T-note prices (ZNU17 -0.04%) are down -1 tick.

The BOJ in a 7-2 vote kept a -0.1% interest rate on balances in accounts held at the BOJ and said it will continue its annual purchases of 80 trillion yen in government bonds to keep the 10-year JGB yield at around zero %. The BOJ raised its 2017 Japan GDP estimate to 1.8% from 1.6%, but lowered its 2017 core inflation estimate to 1.1% from 1.4% and said it now expects to hit its 2.0% inflation target around the fiscal year starting Apr 2019, a year later than a previous projection and the sixth time it has pushed back the projected timing it would take to reach its 2.0% target.

The Japan Jun trade balance was in surplus by +439.9 billion yen, a smaller surplus than expectations of +488.00 billion yen. Jun exports rose +9.7% y/y, stronger than expectations of +9.5% y/y and Jun imports rose +15.5% y/y, stronger than expectations of +14.4% y/y.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly initial unemployment claims (expected -2,000 to 245,000, previous -3,000 to 247,000) and continuing claims (expected +4,000 to 1.949 million, previous -20,000 to 1.945 million), (2) Jul Philadelphia Fed business outlook survey index (expected -3.9 to 23.7, Jun -11.2 to 27.6), (3) Jun leading indicators (expected +0.4%, May +0.3%), (4) Treasury auctions $13 billion in 10-year TIPS, (5) USDA weekly Export Sales.

Notable S&P 500 earnings reports today include: Microsoft (consensus 0.71), Visa (0.81), Capital One (1.90), Travelers (2.12), eBay (0.45), Abbott Labs (0.61), Cintas (1.11), Genuine Parts (1.31).

U.S. IPO's scheduled to price today: PetIQ (PETQ ).

Equity conferences this week: none.

OVERNIGHT U.S. STOCK MOVERS

Nike (NKE +0.21%) gained 2% in after-hours trading after it was upgraded to 'Overweight' from 'Equalweight' at Morgan Stanley with a price target of $68.

QUALCOMM (QCOM +0.87%) lost 1% in after-hours trading after it said it sees Q4 adjusted EPS of 75 cents-85 cents, below consensus of 91 cents.

T-Mobile US (TMUS +0.94%) rose almost 3% in after-hours trading after it raised its subscriber forecast for this year to 3 million to 3.6 million, up from April forecast of 2.8 million to 3.5 million.

United Rentals (URI +1.04%) climbed over 3% in after-hours trading after it said it sees full-year revenue of $6.25 billion-$6.40 billion, above consensus of $6.22 billion.

MGM Resorts International (MGM +0.74%) jumped nearly 4% in after-hours trading when it was announced that it will replace Reynolds American in the S&P 500 before the open on Wednesday, July 26.

Blackhawk Network Holdings (HAWK -0.80%) gained 2% in after-hours trading after it reported Q2 adjusted EPS of 12 cents, three times higher than consensus of 4 cents.

CH Robinson Worldwide (CHRW -1.17%) sold-off over 7% in after-hours trading after it reported Q2 EPS of 78 cents, weaker than consensus of 90 cents, citing shrinking truckload margins.

Texas Capital Bancshares (TCBI -0.06%) rose over 4% in after-hours trading after it reported Q2 EPS of 97 cents, higher than consensus of 95 cents.

Plexus (PLXS +1.51%) rallied 6% in after-hours trading after it reported Q3 revenue of $618.8 million, higher than consensus of $608.9 million.

Avista (AVA +1.38%) soared 18% in after-hours trading after Hydro One acquired the company for $5.3 billion or $53 a share, a 24% premium to Wednesday's close.

Western Gas Partners LP (WES +0.51%) dropped nearly 5% in after-hours trading after a 12.9 million block of the company's share were offered at $52.70-$53.70 via Citigroup and Barclays, a 5% discount to Wednesday's closing price of $56.65.

Alcoa (AA +0.19%) lost 2% in after-hours trading after it reported Q2 adjusted Ebitda of $483 million, less than consensus of $491.8 million.

Datawatch (DWCH +2.15%) rose almost 5% in after-hours trading after it reported an unexpected profit of 2 cents a share, better than consensus for loss of -2 cents.

Highpower International (HPJ -1.20%) surged over 20% in after-hours trading after it reported preliminary Q2 net income up +66%-95% y/y at $3.5 million-$4.1 million.

MARKET COMMENTS

Sep E-mini S&Ps (ESU17 +0.03%) this morning are up +1.25 points (+0.05%) at a new record high. Wednesday's closes: S&P 500 +0.54%, Dow Jones +0.31%, Nasdaq +0.61%. The S&P 500 on Wednesday rallied to a fresh record high and closed at an all-time high settle. Stocks were boosted by the U.S. Jun housing starts report of +8.3% to 1.215 million (stronger than expectations of +6.2% to 1.160 million) and by strength in energy stocks as crude oil prices rose +1.57% to a 2-week high. Strength in technology stocks also pushed the Nasdaq Composite up to an all-time high.

Sep 10-year T-notes (ZNU17 -0.04%) this morning are down -1 tick: Wednesday's closes: TYU7 -2.00, FVU7 -0.50. Sep 10-year T-notes on Wednesday closed lower on the stronger-than-expected U.S. Jun housing starts and building permits reports and on the rally in the S&P 500 to a new record high, which curbed safe-haven demand for T-notes.

The dollar index (DXY00 +0.30%) this morning is up +0.224 (+0.24%). EUR/USD (^EURUSD) is down -0.0005 (-0.04%) and USD/JPY (^USDJPY) is up +0.31 (+0.28%). Wednesday's closes: Dollar index +0.175 (+0.18%), EUR/USD -0.0039 (-0.34%), USD/JPY -0.10 (-0.09%). The dollar index on Wednesday closed higher on the stronger-than-expected U.S. Jun housing starts and building permits reports and on long liquidation in EUR/USD ahead of Thursday's ECB meeting.

Sep WTI crude oil prices (CLU17 +0.30%) this morning are up +3 cents (+0.06%) and Sep gasoline (RBU17 +0.05%) is -0.0027 (-0.17%). Wednesday's closes: Sep crude +0.73 (+1.57%), Sep gasoline +0.0376 (+2.44%). Sep crude oil and gasoline on Wednesday closed higher with Sep crude at a 2-week high and Sep gasoline at a 1-1/2 month high. Crude oil prices were boosted by the -4.73 million bbl decline in EIA crude inventories to a 5-3/4 month low (vs expectations of -3.5million bbl) and by the -4.44 fall in EIA gasoline stockpiles to a 6-3/4 month low (vs expectations of -1.3 million bbl). There was also an increase in the crack spread to a 10-1/2 month high, which may boost refinery demand for crude oil to refine into gasoline.