OVERNIGHT MARKETS AND NEWS

Mar E-mini S&Ps (ESH18 -0.45%) this morning are down -0.39% as the markets remain on edge following the extreme volatility over the past two sessions, although prices have recovered from their worst levels due to a rally in European stocks. European stocks are up +0.50% on reduced political risks in Germany after Chancellor Merkel's Christian Democrat party concluded a coalition agreement with the German Social Democratic Party that ends a 4-month long political stalemate. European equities also received a boost after the European Commission raised its Eurozone 2018 GDP forecast to 2.3% from a Nov estimate of 2.1%. Weakness in energy stocks is limiting the upside in the overall market with Mar WTI crude oil (CLH18 -0.63%) down -0.32% at a 2-week low. Asian stocks settled mixed: Japan +0.16%, Hong Kong -0.89%, China -1.82%, Taiwan +1.42%, Australia +0.75%, Singapore-0.66%, South Korea -2.37%, India -0.33%. Japanese stocks bounced back Wednesday after Tuesday's sharp decline aided by strength in Toyota Motor who closed up over 1% after it raised its annual profit forecast for the third time this fiscal year. China's Shanghai Composite fell to a 1-1/4 month low as bank stocks and property developers fell after the China Securities Journal reported that lenders in some cities raised mortgage rates.

The dollar index (DXY00 +0.31%) is up +0.27%. EUR/USD (^EURUSD) is down -0.27%. USD/JPY (^USDJPY) is down -0.32%.

Mar 10-year T-note prices (ZNH18 -0.12%) are down -1.5 ticks.

The European Commission raised its Eurozone 2018 GDP forecast to 2.3% from a 2.1% estimate in Nov and hiked its Eurozone 2018 inflation forecast to 1.5% from 1.4%.

German Dec industrial production fell -0.6% m/m, stronger than expectations of -0.7% m/m.

Speaking at an event in Frankfurt, Dallas Fed President Kaplan said, "it's healthy that there is some correction in the markets as people know the U.S. and global markets have gone for an extended run without a 3% correction and low volatility."

Japan Dec labor cash earnings rose +0.7% y/y, stronger than expectations of +0.5% y/y.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly MBA mortgage applications (previous -2.6% with purchase sub-index -3.4% and refi sub-index -2.9%), (2) EIA weekly Petroleum Status Report, (3) Treasury auctions $24 billion 10-year T-notes, (4) Dec consumer credit (expected +$20.0 billion, Nov +$27.951 billion).

Notable S&P 500 earnings reports today include: Allstate (consensus $1.50), Prudential Financial (2.64), Humana (2.00), Equifax (1.35), ICE (0.72), Exelon (0.60), Xcel Energy (0.43), Twenty-First Century Fox (0.37).

U.S. IPO's scheduled to price today: Ranger Energy Services (RNGR), YogaWorks (YOGA).

Equity conferences this week: 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

Chipotle Mexican Grill (CMG +1.34%) tumbled almost 8% in pre-market trading after the company said during a confernece call that customer traffic is "still negative' this year so far.

Microchip Technology (MCHP +2.70%) fell nearly 6% in after-hours trading after it said it sees Q4 adjusted EPS of $1.30 to $1.39, the midpoint below consensus of $1.37.

Walt Disney (DIS +1.40%) rose over 2% in after-hours trading after it reported Q1 adjusted EPS of $1.89, better than consensus of $1.61.

Akamai Technologies (AKAM +1.37%) climbed 5% in after-hours trading after it reported Q4 adjusted EPS of 69 cents, above consensus of 63 cents.

Netgear (NTGR +1.97%) rallied 5% in after-hours trading after it reported Q4 adjusted EPS of 71 cents, higher than consensus of 65 cents.

Cerner (CERN +0.91%) lost 2% in after-hours trading after it reported Q4 adjusted EPS of 58 cents, below consensus of 61 cents, and aid it sees Q1 adjusted EPS of 57 cents to 59 cents, well below consensus of 67 cents.

Zendesk (ZEN +3.81%) gained almost 3% in after-hours trading after it reported Q4 revenue of $123.4 million, higher than consensus of $119.8 million, and said it sees full-year revenue of $555.0 million to $565.0 million, better than consensus of $553.7 million.

Cisco Systems (CSCO +3.58%) was rated a new 'Buy' at Goldman Sachs with a 12-month target price of $48.

MACOM Technology Solutions (MTSI +6.27%) dropped 6% in after-hours trading after it reported Q1 adjusted EPS of 10 cents, weaker than consensus of 13 cents, and said it sees Q2 adjusted EPS of 10 cents to 16 cents, well below consensus of 29 cents.

Beazer Homes USA (BZH +0.98%) fell 3% in after-hours trading after it reported a -$4.08 Q1 EPS loss, wider than consensus of -3 cents EPS, citing the remeasurement of deferred tax assets.

Pure Storage (PSTG +3.10%) was rated a new 'Sell' at Goldman Sachs with a 12-month target price of $16.

Snap (SNAP +1.52%) surged 25% in after-hours trading after it reported Q4 revenue of $285.7 million, stronger than consensus of $252.8 million, and reported 187 million Q4 daily active users, above consensus of 184.3 million.

MagnaChip Semiconductor (MX +1.36%) rose almost 3% in after-hours trading after it reported Q4 revenue of $174.6 million, above consensus of $174 million, and said it sees a "sharp rebound and steep growth in its OLED business" in Q1.

Extreme Networks (EXTR +2.30%) lost 2% in after-hours trading after it reported Q2 adjusted revenue of $231.1 million, weaker than consensus of $241.5 million.

Halcon Resources (HK +1.61%) dropped 8% in after-hours trading after it announced the launch of an underwritten public offering of 8 million shares of its common stock.

MARKET COMMENTS

Mar S&P 500 E-mini stock futures (ESH18 -0.45%) this morning are down -10.50 points (-0.39%). Tuesday's closes: S&P 500 +1.74%, Dow Jones +2.33%, Nasdaq +2.62%. The S&P 500 fell to a 2-1/2 month low but recovered its losses and closed higher. Stocks were boosted by dovish comments from St. Louis Fed President Bullard who said that "continued strong U.S. labor market performance is unlikely to translate into meaningfully higher inflation because Phillips curve effects are weak." Stocks also received some support from Treasury Secretary Mnuchin's comment that the recent plunge in stocks is a "normal market correction." Stocks were undercut by fears of a renewed free-fall and by the unexpected -67,000 decline in U.S. Dec JOLTS job openings to a 7-month low of 5.811 million (weaker than expectations of +82,000 to 5.961 million). Energy stocks were hurt by a slide in crude oil prices to a 2-week low.

Mar 10-year T-note prices (ZNH18 -0.12%) this morning are down -1.5 ticks. Tuesday's closes: TYH8 +7.00, FVH8 +1.25. Mar 10-year T-notes on Tuesday climbed to a 2-week high and closed higher on the early plunge in the S&P 500 to a 2-1/2 month low, which boosted safe-haven demand for T-notes, and by the unexpected decline in the U.S. Dec JOLTS job openings to a 7-month low. T-note prices fell back from their best levels after stock prices recovered and closed higher.

The dollar index (DXY00 +0.31%) this morning is up +0.244 (+0.27%). EUR/USD (^EURUSD) is down -0.0033 (-0.27%) and USD/JPY (^USDJPY) is down -0.35 (-0.32%). Tuesday's closes: Dollar Index +0.106 (+0.12%), EUR/USD +0.0010 (+0.08%), USD/JPY +0.47 (+0.43%). The dollar index on Tuesday rose to a 1-1/2 week high and closed higher. The dollar was boosted by the sharp recovery in the S&P 500 from a 2-1/2 month low and by strength in USD/JPY after stocks recovered from steep losses and moved higher, which curbed safe-haven demand for the yen.

Mar crude oil (CLH18 -0.63%) this morning is down -20 cents (-0.32%) at a fresh 2-week low and Mar gasoline (RBH18 +0.22%) is +0.0072 (+0.40%). Tuesday's closes: Mar WTI crude -0.76 (-1.18%), Mar gasoline -0.0414 (-2.24%). Mar crude oil and gasoline on Tuesday closed lower with Mar crude at a 2-week low and Mar gasoline at a 4-week low. Crude oil prices were undercut by the rally in the dollar index to a 1-1/2 week high, and the fall 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. Crude oil prices were also undercut by expectations that weekly EIA data Wednesday will show U.S. crude inventories rose +3.0 million bbl.

Metals prices this morning are mixed with Apr gold (GCJ18 -0.17%) +1.2 (+0.09%), Mar silver (SIH18 -0.12%) +0.055 (+0.33%), and Mar copper (HGH18 -0.42%) -0.015 (-0.47%). Tuesday's closes: Apr gold -0.8 (-0.06%), Mar silver -0.038 (-0.23%), Mar copper +0.0335 (+1.05%). Metals on Tuesday closed lower with Apr gold at a 3-week low. Metals prices were undercut by the rally in the dollar index to a 1-1/2 week high, and by the rebound in stock prices from their worst levels, which reduced the safe-haven demand for precious metals.