OVERNIGHT MARKETS AND NEWS

Sep E-mini S&Ps (ESU17 -0.09%) this morning are down -0.06% and European stocks retreated from a 1-week high and are down -0.06% as weakness in energy producing companies drags the overall market lower. Aug WTI crude oil CLQ17 -0.97%) is down -0.72% and is undercutting energy stocks on concern the global oil glut will persist after Goldman Sachs warned that measures taken by OPEC to curb production don't go far enough without sustained U.S. inventory declines and a drop in the active rig count. Also, Saudi Arabia said it pumped crude at a 10.07 million bpd rate in Jun, up from 9.88 million bpd in May and above its crude production limit of 10.058 million bpd agreed upon as part of OPEC's production cuts. Asian stocks settled mixed: Japan +0.57%, Hong Kong +1.48%, China -0.30%, Taiwan +1.22%, Australia +0.08%, Singapore -0.85%, South Korea +0.68%, India +0.10%. Japan's Nikkei Stock index rose to a 1-week high, led by a rally in exporter stocks, as a rally in USD/JPY to a 3-3/4 month high boosts the earnings prospects of exporters.

The dollar index (DXY00 +0.10%) is up +0.09%. EUR/USD (^EURUSD) is down -0.02%. USD/JPY (^USDJPY) is up +0.24% at a 3-3/4 month high.

Sep 10-year T-note prices (ZNU17 -0.10%) are down -4 ticks.

San Francisco Fed President Williams said that the latest U.S. jobs report shows the economy is strong and that forecasts of one more rate hike this year seems reasonable. He added that it makes sense to begin balance sheet normalization this year.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) May JOLTS job openings (expected -119,000 to 5.925 million, Apr +259,000 to 6.044 million), (2) final-May wholesale inventories (expected unrevised from prelim-May’s +0.3%), (3) Fed Governor Lael Brainard speaks at a conference on normalizing central banks’ balance sheets jointly sponsored by the New York Fed and Columbia University’s School of International and Public Affairs, (4) Treasury auctions $24 billion of 3-year T-notes.

Notable Russell 3000 earnings reports today include: Pepsico (consensus $1.40).

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

Equity conferences this week: SEMICON West Conference on Tue.

OVERNIGHT U.S. STOCK MOVERS

Snap (SNAP -1.11%) fell 3% in pre-market trading after it was downgraded to 'Equalweight' from 'Overweight' at Morgan Stanley with a price target of $16.

Celgene (CELG -0.48%) was initiated with a 'Buy' rating at Jeffries with a 12-month target price of $160.

WD-40 (WDFC -0.32%) lowered guidance on its full-year net sales view to $382 million-$388 million from a prior view of $390 million-$395 million.

Michael Kors (KORS -0.42%) was initiated with a 'Sell' rating at MKM Partners with a 12-month target price of $26.

Spark Therapeutics (ONCE -3.15%) was initiated with a 'Buy' rating at Jeffries with a 12-month target price of $85.

Citrix Systems (CTXS +0.83%) fell over 3% in after-hours trading after CEO Kirill Tatarinov left the company immediately following a "mutual separation decision."

Getty Realty (GTY -0.71%) dropped over 7% in after-hours trading after it announced that it had launched an underwritten registered public offering of 4.1 million shares of its common stock.

Barracuda Networks (CUDA +0.63%) dropped 5% in after-hours trading after it reported Q1 non-GAAP of 18 cents, right on expectations, but down from 20 cents in the prior year period.

Arena Pharmaceuticals (ARNA -4.47%) surged over 40% in after-hours trading when it said a Phase 2 study of its ralinepag for pulmonary arterial hypertension showed statistically significant improvement compared to a placebo.

Knowles Corp (KN -1.14%) slid 2% in after-hours trading when it said a block of 6 million shares was offered at $16.20 a share via Morgan Stanley.

Simulations Plus (SLP -0.39%) rallied over 8% in after-hours trading when it reported Q3 net revenue increased +12.2% y/y to $6.75 million.

VOXX International (VOXX +1.14%) plunged over 20% in after-hours trading after it reported a Q1 loss of -13 cents per share.

Ocular Therapeutix (OCUL -8.85%) jumped over 10% in after-hours trading after it said it submitted details to amend its NDA resubmission to the FDA for its dextenza as treatment for ocular pain following ophthalmic surgery.

MARKET COMMENTS

Sep E-mini S&Ps (ESU17 -0.09%) this morning are down -1.50 points (-0.06%). Monday's closes: S&P 500 +0.09%, Dow Jones -0.03%, Nasdaq +0.67%. The S&P 500 on Monday closed higher on carry-over support from a rally in European stocks after German May trade data showed exports and imports rose more than expected. There was also strength in technology stocks as the Nasdaq Composite rose to a 1-week high and strength in energy stocks as crude oil prices rose +0.38%.

Sep 10-year T-notes (ZNU17 -0.10%) this morning are down -4 ticks. Monday's closes: TYU7 +7.50, FVU7 +4.25. Sep 10-year T-notes on Monday closed higher on carry-over support from a rally in German bunds after ECB Executive member Praet said "we still need a long period of accommodative policy." T-notes also received a boost on reduced inflation expectations after the 10-year T-note breakeven inflation rate fell to a 4-session low.

The dollar index (DXY00 +0.10%) this morning is up +0.084 (+0.09%). EUR/USD (^EURUSD) is down -0.0002 (-0.02%) and USD/JPY (^USDJPY) is up +0.27 (+0.24%) at a 3-3/4 month high. Monday's closes: Dollar index +0.059 (+0.06%), EUR/USD -0.0022 (-0.19%), USD/JPY +0.12 (+0.11%). The dollar index on Monday closed higher on euro-negative comments from ECB Executive member Praet that signaled he does not favor tapering QE yet when he said that ECB officials can't be satisfied with the inflation outlook and "we still need a long period of accommodative policy." There was also strength in USD/JPY which climbed to a 1-1/2 month high after comments from BOJ Governor Kuroda boosted speculation the BOJ may boost stimulus measures when he said the BOJ stands ready to adjust monetary policy as needed.

Aug WTI crude oil prices (CLQ17 -0.97%) this morning are down -32 cents (-0.72%) and Aug gasoline (RBQ17 -1.17%) is down -0.0141 (-0.94%). Monday's closes: Aug crude +0.17 (+0.38%), Aug gasoline +0.0023 (+0.15%). Aug crude oil and gasoline on Monday closed higher on comments from Kuwaiti Oil Minister Issam Almarzooq who said that Libya and Niger1a, who are both currently exempt from OPEC production cuts, will soon be asked to cap their crude oil output in an effort to re-balance the global oil market. Crude oil prices were also supported by the increase in the crack spread to a 1-1/2 month high, which may boost refinery demand for crude oil to refine into gasoline.

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