Overnight Markets and News

Jun E-mini S&Ps (ESM18 +0.15%) this morning are up +0.06% as a +1.03% rally in May WTI crude oil (CLK18 +1.30%) lifts energy stocks. Pressure remains on technology stocks, though, following Monday's sell-off with Oracle down 8% in pre-market trading after it reported Q3 cloud revenue that missed estimates. Also, trade concerns remain forefront after the White House late Monday said it plans to impose tariffs worth as much as $60 billion on Chinese products as part of a battle over safeguarding intellectual property. European stocks are up +0.14% on strength in energy stocks, although gains were limited after a gauge of German investor confidence tumbled as the German Mar ZEW expectations of economic growth fell -12.7 to a 1-1/2 year low of 5.1. Asian stocks settled mixed: Japan -0.47%, Hong Kong +0.11%, China +0.35%, Taiwan -0.33%, Australia -0.39%, Singapore +0.43%, South Korea +0.45%, India +0.22%. China's Shanghai Composite erased early losses and closed higher after Chinese health-care stocks soared when Premier Li Keqiang, speaking at China's National People's Congress, said China will increase fiscal support for basic medical insurance and medical resources to cover more people. Japan's Nikkei Stock Index fell to a 1-1/2 week low, led by losses in technology stocks, following Monday's rout of technology stocks in the U.S.

The dollar index (DXY00 +0.37%) is up +0.33%. EUR/USD (^EURUSD -0.20%) is down -0.22%. USD/JPY (^USDJPY +0.40%) is up +0.33%.

Jun 10-year T-note prices (ZNM18 -0-060) are down -5.5 ticks.

The German Mar ZEW expectations of economic growth fell -12.7 to a 1-1/2 year low of 5.1, weaker than expectations of -4.8 to 13.0.

The German Feb PPI of -0.1% m/m and +1.8% y/y was weaker than expectations of +0.1% m/m and +2.0% y/y with the +1.8% y/y gain the smallest year-on-year increase in 14-months.

UK Feb CPI of +0.4% m/m and +2.7% y/y was weaker than expectations of +0.5% m/m and +2.8% y/y. Feb core CPI rose +2.4% y/y, weaker than expectations of +2.5% y/y and the smallest pace of increase in 7 months.

U.S. Stock Preview

Key U.S. news today includes: (1) FOMC begins 2-day policy meeting.

Notable Russell 1000 earnings reports today include: FedEx (consensus $3.11).

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

Equity conferences this week: Morgan Stanley European Financials Conference on Tue, Telsey Advisory Group Spring Consumer Conference on Tue, UBS North American Power, Utilities, Alternative Energy and Environmental Services on Tue, Oppenheimer Healthcare Conference on Tue-Wed, Bank of America Merrill Lynch Global Industrials Conference on Tue-Thu, ACI European Fuels Markets & Refining Strategy Conference on Thu, Gabelli & Company Waste Conference on Fri.

Market Comments

Jun S&P 500 E-mini stock futures (ESM18 +0.15%) this morning are up +1.50 points (+0.06%). Monday's closes: S&P 500 -1.42%, Dow Jones -1.35%, Nasdaq -2.21%. The S&P 500 on Monday sold off to a 2-week low and settled sharply lower on weakness in technology stocks after Facebook plunged nearly 7% on reports of a data breach involving the profiles of 50 million users. There was also concern ahead of the Tue-Wed FOMC meeting, which is expected to produce a rate hike and a likely hike in the Fed's forecast for the federal funds rate. There was weakness in energy stocks as crude oil prices fell -0.45%.

Jun 10-year T-note prices (ZNM18 -0-060) this morning are down -5.5 ticks. Monday's closes: TYM8 +1.50, FVM8 +0.50. Jun 10-year T-notes on Monday closed higher on increased flight-to-safety demand for T-notes after the S&P 500 tumbled to a 2-week low. T-note prices were undercut by the Tue-Wed FOMC meeting, which is expected to produce a rate hike and a more hawkish FOMC view on the path for the federal funds rate in 2018-2020.

The dollar index (DXY00 +0.37%) this morning is up +0.297 (+0.33%). EUR/USD (^EURUSD -0.20%) is down -0.0027 (-0.22%) and USD/JPY (^USDJPY +0.40%) is up +0.35 (+0.33%). Monday's closes: Dollar Index -0.468 (-0.52%), EUR/USD +0.0045 (+0.37%), USD/JPY +0.09 (+0.08%). The dollar index on Monday closed lower on the political turmoil in the U.S. and on concern about upcoming U.S. tariffs. GBP/USD climbed to a 1-month high on news that the EU and UK have reached a broad agreement on the Brexit transition.

May crude oil (CLK18 +1.30%) this morning is up +64 cents (+1.03%) and May gasoline (RBK18 +1.10%) is +0.0149 (+0.77%). Monday's closes: May WTI crude -0.28 (-0.45%), May gasoline -0.0198 (+1.01%). May crude oil and gasoline on Monday closed lower on concern U.S. crude oil production will continue to increase after Friday's data from Baker Hughes showed active U.S. oil rigs in the week of Mar 16 rose by 4 rigs to a 2-3/4 year high of 800 rigs. Crude oil prices were also undercut by the slide in U.S. equities and on expectations for Wednesday's EIA crude inventories to increase by +3.0 million bbl. A weaker dollar provided some support for crude oil prices.

Metals prices this morning are weaker with Apr gold (GCJ18 -0.38%) -4.8 (-0.36%), May silver (SIK18 -0.31%) -0.045 (-0.28%), and May copper (HGK18 -0.36%) -0.010 (-0.32%). Monday's closes: Apr gold +5.5 (+0.42%), May silver +0.053 (+0.33%), May copper -0.0255 (-0.82). Metals on Monday settled mixed. Metals prices were boosted by a weaker dollar and the sell-off in stocks, which boosted the safe-haven demand for precious metals. Metals prices were undercut by Chinese copper demand concerns after China Feb new home prices rose in only 44 out of 70 cities tracked by the government, down from 52 that rose in Jan.

Overnight U.S. Stock Movers

Oracle (ORCL -0.61%) sank 8% in pre-market trading after it reported Q3 total cloud revenue of $1.57 billion, below consensus of $1.59 billion.

Signet Jewelers Ltd (SIG +2.02%) was downgraded to 'Neutral' from 'Buy' at Bank of America/Merrill Lynch.

Adobe Systems (ADBE -1.49%) was upgraded to 'Buy' from 'Hold' at DZ Bank AG with a price target of $252.

Timken (TKR -0.11%) rose 6% in after-hours trading after it raised guidance in 2018 adjusted earnings per share to $3.50 to $3.60 from a Feb 7 outlook of $3.20 to $3.30.

Group 1 Automotive (GPI +0.18%) slumped nearly 10% in after-hours trading after it said its Q1 earnings may be hurt by weak market conditions, including pressure on used car margins.

HealthEquity (HQY -2.51%) gained 3% in after-hours trading after it forecast full-year Ebitda of $106 million to $111 million, better than consensus of $104.7 million.

Arena Pharmaceuticals (ARNA -1.97%) surged over 50% in after-hours trading after it reported positive results from a Phase 2 study of its Etrasimod in patients with Ulcerative Colitis.

Glycomimetics (GLYC -5.73%) fell almost 5% in after-hours trading after it said it will offer 4.5 million shares of its common stock via Jeffries and Cowen.

Blackberry Ltd (BB -1.78%) rose nearly 4% in after-hours trading after it said it was collaborating with Microsoft in a strategic partnership on Blackberry Enterprise Bridge, which will provide a secure way for joint customers to use Microsoft apps within Blackberry dynamics.

The corporate credit rating of Rent-A-Center (RCII -3.09%) was downgraded by S&P to CCC+ from B- with a negative outlook citing "heightened execution risk that could lead, longer-term, to an eventual restructuring."

Proteostasis Therapeutics (PTI -4.12%) dropped over 7% in after-hours trading after it said it will offer 9 million shares of its common stock via Leerink Partners and RBC Capital Markets.

Endologix (ELGX -1.89%) jumped 8% in after-hours trading after it reported positive results from its ENCORE analysis with polymer Endovascular Aneurysm repair using its Ovation Abdominal Stent Graft Systems.

Marinus Pharmaceuticals (MRNS -5.32%) climbed almost 4% in after-hours trading after Mizuho Securities rated the stock as a 'Buy' with a price target of $13.