OVERNIGHT MARKETS AND NEWS

Mar E-mini S&Ps (ESH18 +0.19%) this morning are down -1.16% at a 4-month low and European stocks are down -2.32% at an 11-month low as global stock markets slumped for a third day. The VIX volatility index soared to a 2-1/3 year high and spurred liquidation in equity markets around the world. Stronger-than-expected economic data out of Germany, however, on Dec factory orders and Jan Markit construction PMI, fueled short covering and the stocks are well above their overnight lows. The global rout in equity markets gave government debt prices a boost as the 10-year T-note yield fell to a 1-week low of 2.65%. Asian stocks settled lower: Japan -4,73%, Hong Kong -5.12%, China -3.35%, Taiwan -4.95%, Australia, Singapore -2.20%, South Korea -1.63%, India -1.61%. The slide in U.S. and European markets carried-over into Asia where China's Shanghai Stock Index fell to a 1-month low and Japan's Nikkei Stock Index tumbled to a 3-3/4 month low.

The dollar index (DXY00 +0.19%) is up +0.15%. EUR/USD (^EURUSD) is down -0.06%. USD/JPY (^USDJPY) is down -0.10%.

Mar 10-year T-note prices (ZNH18 +0.59%) are up +25.5 ticks at a 2-week high on increased safe-haven demand from the rout in global equity markets.

The German Jan Markit construction PMI rose +6.1 to 59.8, the fastest pace of expansion since the data series began in 2015.

German Dec factory orders rose +3.8% m/m, stronger than expectations of +0.7% m/m.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Dec trade deficit (expected -$52.0 billion, Nov -$50.5 billion), (2) Dec JOLTS job openings (expected +82,000 to 5.961 million, Nov -46,000 to 5.879 million), (3) Treasury auctions $26 billion 3-year T-notes.

Notable S&P 500 earnings reports today include: Disney (consensus $1.61), Allergan (4.74), Cummins (2.66), Gilead Sciences (1.67), S&P Global (1.61), GM (1.38), Chipotle (1.33), ADM (0.70), Emerson Electric (0.55).

U.S. IPO's scheduled to price today: TFI TAB Gida Yatirimlari AS (TFIG), Bioceres (BIOX).

Equity conferences this week: Wind Power Finance & Investment Summit on Tue, Cowen Aerospace/Defense Conference on Wed-Thu, Capital Link Greek Shipping Forum on Thu, American Society of Clinical Oncology Genitourinary Cancers Symposium on Thu-Fri.

OVERNIGHT U.S. STOCK MOVERS

CoreLogic (CLGX -2.73%) was downgraded to 'Sell' from 'Neutral' at Compass Point Research & Trading LLC with a price target of $43.

Exxon Mobil (XOM -5.69%) was downgraded to 'Underweight' from 'Overweight' at Barclays.

Continental Resources (CLR -3.65%) was rated a new 'Buy' at B Riley FBR with a 12-month target price of $78.

Molson Coors Brewing (TAP -4.17%) was rated a new 'Outperform' at BMO Capital Markets with a 12-month target price of $95.

Skyworks (SWKS -4.32%) rose over 1% in after-hours trading after it reported Q1 adjusted EPS of $2.00, better than consensus of $1.91.

Micron Technology (MU -3.48%) climbed 3% in after-hours trading after it boosted its Q2 EPS estimate to $2.70 to $2.75 from a prior view of $2.51 to $2.65, higher than consensus of $2.51.

Cbre Group (CBR) was rated a new 'Outperform' at Raymond James with a 12-month target price of $55.

Lululemon Athletica (LULU -1.54%) fell nearly 3% in after-hours trading after CEO Lauernt Potdeven resigned in the wake of unspecified misconduct.

Cirrus Logic (CRUS -3.98%) slumped over 10% in after-hours trading after it reported Q3 revenue of $482.7 million, below consensus of $531 million, and then said it sees Q4 revenue of $300 million to $340 million, well below consensus of $373.4 million.

Apptio (APTI +1.74%) gained over 1% in after-hours trading after it reported Q4 revenue of $52.4 million, higher than consensus of $49.9 million, and said it sees full-year revenue of $220 million to $225 million, above consensus of $216.4 million.

Fabrinet (FN -3.80%) rose 7% in after-hours trading after it reported Q2 adjusted EPS of 72 cents, higher than consensus of 70 cents.

Oclaro (OCLR -5.04%) gained almost 2% in after-hours trading after it reported Q2 adjusted EPS of 14 cents, above consensus of 12 cents.

Quotient (QTNT +3.82%) jumped over 10% in after-hours trading after it said it will resume the verification and validation study of its MosaiQ SDS Microarray for blood grouping after the latest process validation data supported the move.

MARKET COMMENTS

Mar S&P 500 E-mini stock futures (ESH18 +0.19%) this morning are down -30.25 points (-1.16%) at a 4-month low. Monday's closes: S&P 500 -4.10%, Dow Jones -4.60%, Nasdaq -3.91%. The S&P 500 on Monday fell to a 1-3/4 month low and closed sharply lower on interest rate concerns after the 10-year T-note yield climbed to a new 4-year high of 2.88% and on heavy long liquidation pressure after the sharp post-election rally. Stocks found some underlying support on the Jan ISM non-manufacturing index report of +4.0 to a 12-1/3 year high of 59.9, stronger than expectations of +0.8 to 56.7.

Mar 10-year T-note prices (ZNH18 +0.59%) this morning are up +25.5 ticks at a 2-week high. Monday's closes: TYH8 +17.00, FVH8 +12.00. Mar T-notes on Monday recovered from a new contract low and closed higher on the plunge in stocks, which sparked safe-haven buying and also reduced concerns about the Fed's rate-hike intentions for 2018. T-notes were also supported by positive carry-over from a rally in German bunds on dovish comments from ECB President Draghi who said the ECB can't yet "declare victory" on reviving price growth. T-note prices were undercut by the larger-than-expected +4.0 point increase in the U.S. Jan ISM non-manufacturing index to a 12-1/3 year high of 59.9.

The dollar index (DXY00 +0.19%) this morning is up +0.13 (+0.15%). EUR/USD (^EURUSD) is down -0.0007 (-0.06%) and USD/JPY (^USDJPY) is down -0.11 (-0.10%). Monday's closes: Dollar Index +0.425 (+0.48%), EUR/USD -0.0096 (-0.77%), USD/JPY -1.08 (-0.98%). The dollar index on Monday closed higher on the stronger-than-expected U.S. Jan ISM non-manufacturing index and on weakness in EUR/USD after ECB President Draghi signaled the ECB will continue with QE when he said the ECB can't yet "declare victory" on reviving price growth.

Mar crude oil (CLH18 -1.45%) this morning is down -63 cents (-0.98%) at a 2-week low and Mar gasoline (RBH18 -1.82%) is -0.0316 (-1.71%) at a 4-week low. Monday's closes: Mar WTI crude -1.30 (-1.99%), Mar gasoline -0.0254 (-1.36%). Mar crude oil and gasoline on Monday fell to 2-week lows and closed lower. Crude oil prices were undercut by a stronger dollar and the the plunge in the S&P 500 to a 1-3/4 month low, which reduces confidence in the economic outlook and in energy demand. Crude oil prices were also undercut by the decline in the crack spread to a new 7-1/2 month low, which reduces the incentive for refiners to purchase crude oil to refine into gasoline.

Metals prices this morning are mixed with Apr gold (GCJ18 +0.50%) +9.1 (+0.68%), Mar silver (SIH18 +0.59%) +0.129 (+0.77%), and Mar copper (HGH18 -0.76%) -0.025 (-0.78%). Monday's closes: Apr gold -0.8 (-0.06%), Mar silver -0.038 (-0.23%), Mar copper +0.0335 (+1.05%). Metals on Monday settled mixed with Mar copper at a 1-week high. Metals prices were boosted by the plunge in the S&P 500 to a 1-3/4 month low, which boosted the safe-haven demand for precious metals, and by the stronger-than-expected U.S. Jan ISM non-manufacturing index that climbed to a 12-1/3 year high, which shows economic strength and is positive for industrial metals demand. Metals prices were undercut by the stronger dollar.