OVERNIGHT MARKETS AND NEWS

Jun E-mini S&Ps (ESM17 -0.06%) this morning are unchanged as global geopolitical concerns create market uncertainty as the VIX volatility index climbed to a 2-week high. White House press secretary Spicer warned Syria to stop using barrel bombs against civilians, which suggests the Trump administration may take additional actions against Syria. The UN Security Council demanded that Syria stop using barrel bombs in a Feb 2014 resolution, and a UN inquiry commission found that Syria's use of the weapon violated international law. Also, the U.S. Pacific Command ordered the Carl Vinson strike group toward the Korean peninsula to defend against any provocation from North Korea. European stocks are down -0.05% and were undercut after data showed Eurozone Feb industrial production unexpectedly declined. Also, French polls show the presidential race is too tight to call, which increases Frexit concerns. European stock losses were limited, however, after the German ZEW Apr investor confidence rose more than expected to the highest in 20-months. Asian stocks settled mixed: Japan -0.27%, Hong Kong -0.72%, China +0.60%, Taiwan -0.51%, Australia +0.28%, Singapore -0.21%, South Korea -0.62%, India +0.72%. South Korea's Kospi Stock Index posted a new 4-week low and closed lower for a second day as the U.S. sends a carrier strike group toward the Korean peninsula, which ramps up concerns over North Korea.

The dollar index (DXY00 -0.17%) is down -0.18%. EUR/USD (^EURUSD) is up +0.16%. USD/JPY (^USDJPY) is down -0.31%.

Jun 10-year T-note prices (ZNM17 +0.09%) are up +5 ticks.

The German Apr ZEW survey expectations of economic growth rose +6.7 to 19.5, stronger than expectations of +2.0 to 14.8 and a 20-month high.

Eurozone Feb industrial production unexpectedly fell -0.3% m/m, weaker than expectations of +0.1% m/m.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Feb JOLTS job openings (expected +24,000 to 5.650 million, Jan +87,000 to 5.626 million), (2) Treasury auctions $20 billion 10-year T-notes, (3) Minneapolis Fed President Neel Kashkari participates in a 45-minute Q&A at a meeting of the Minnesota Business partnership in Minneapolis, (4) USDA Apr WASDE crop production.

Notable Russell 1000 earnings reports today include: none.

U.S. IPO's scheduled to price today: Netshoes Cayman Ltd (NETS)

Equity conferences: Barclays Chicago Conference on Tue, Bank of America Merrill Lynch Auto Summit on Wed, Next Generation Pharmaceutical Samples Conference on Wed-Thu.

OVERNIGHT U.S. STOCK MOVERS

Sunoco LP (SUN +1.80%) was downgraded to 'Neutral' from 'Buy' at UBS.

Knight Transportation (KNX +13.38%) was upgraded to 'Buy' from 'Hold' at Deutsche Bank with a price target of $40.

American Tower (AMT +0.29%) was upgraded to 'Buy' from 'Neutral' at Guggenheim Securities with a 12-month target price of $135.

Deere (DE +0.28%) was initiated with a 'Buy' recommendation by Stifel with a 12-month target price of $126.

Crown Castle International (CCI +0.51%) was upgraded to 'Buy' from 'Neutral' at Guggenheim Securities with a 12-month target price of $101.

Hub Group (HUBG +1.83%) may move lower today after it said in after-hours trading Monday that it sees 2017 EPS of $1.60 to $1.80, well below consensus of $2.39.

Axovant Science (AXON +22.54%) dropped 5% in after-hours trading after it announced an underwritten public offering of $100 million of its common shares.

Aurinia Pharmaceuticals (AUPH -0.71%) rose 4% in after-hours trading after it was initiated at Cantor Fitzgerald with an 'Overweight' recommendation with a 12-month target price of $14.

Simulations Plus (SLP +3.59%) dropped over 8% in after-hours trading after it reported Q2 adjusted EPS of 7 cents, weaker than consensus of 8 cents.

RetailMeNot (SALE unch) soared nearly 50% in after-hours trading after Harland Clarke said it will purchase RetailMeNot
for $630 million or $11.60 a share, a 50% premium to Friday's closing price.

Seachange International (SEAC +2.08%) tumbled over 7% in after-hours trading after it said it sees Q1 revenue of $16 million-$18 million, below consensus of $21.1 million.

MARKET COMMENTS

Jun E-mini S&Ps (ESM17 -0.06%) this morning are unchanged. Monday's closes: S&P 500 +0.07%, Dow Jones +0.01%, Nasdaq +0.06%. The S&P 500 on Monday closed higher on comments from St. Louis Fed President Bullard that reduced interest rate concerns when he said only one more Fed rate hike this year is needed "to keep inflation close to target and employment close to our goals." Energy producer stocks were boosted by the +1.74% rally in crude oil prices to a 1-month high. Stocks were undercut by French presidential risks after the latest polls show pro-EU candidate Macron tied with anti-EU candidate Le Pen with just 2 weeks before the first round of France's presidential election.

Jun 10-year T-notes (ZNM17 +0.09%) this morning are up +5 ticks. Monday's closes: TYM7 +3.00, FVM7 +2.75. Jun 10-year T-notes on Monday closed higher on carry-over support from a rally in German bunds to a 1-1/4 month high on increased safe-haven demand due to heightened political risks in France after the latest polls show pro-EU candidate Emmanuel Macron and anti-EU candidate Marine Le Pen tied just 2 weeks before the first round of France's presidential election. T-notes were also boosted by dovish comments from St. Louis Fed President Bullard who said "I don't think we need a lot of rate increases in order to keep inflation close to target and employment close to our goals" and that only one more 25 bp rate increase this year will be needed.

The dollar index (DXY00 -0.17%) this morning isdown -0.189 (-0.18%). EUR/USD (^EURUSD) is up +0.0017 (+0.16%) and USD/JPY (^USDJPY) is down -0.34 (-0.31%). Monday's closes: Dollar index -0.16 (-0.16%), EUR/USD +0.0005 (+0.05%), USD/JPY -0.08 (-0.07%). The dollar index on Monday fell back from a 3-week high and closed lower on comments from St. Louis Fed President Bullard who said that only one more 25 bp rate increase this year will be needed "to keep inflation close to target and employment close to our goals." EUR/USD rebounded from a 1-month low and closed higher after the Eurozone Apr Sentix investor confidence rose more-than-expected to a 9-1/2 year high.

May WTI crude oil prices t(CLK17 -0.08%) his morning are up +4 cents (+0.08%) and May gasoline (RBK17 -0.19%) is -0.0017 (-0.10%). Monday's closes: May crude +0.91 (+1.74%), May gasoline +0.0119 (+0.68%). May crude oil and gasoline on Monday closed higher with May crude at a 1-month high. Crude oil prices were boosted by a weaker dollar and the action by Libya's NOC to declare force majeure on loadings at its Zawiya terminal as it closed its biggest oil field for the second time in 2 weeks.

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