OVERNIGHT MARKETS AND NEWS

Dec E-mini S&Ps (ESZ16 -1.66%) are down sharply by -2.25% after a surprise victory by Donald Trump in the U.S. presidential race. Dec E-mini S&Ps had plunged 5% to a 4-1/4 month low and were limit-down in overnight trade before recovering from their worst levels amid speculation that Trump will increase fiscal spending to spur economic growth. That reality also hammered the dollar and boosted commodity prices with gold (GCZ16 +2.34%) up +2.23% at a 5-week high and copper prices (HGZ16 +1.85%) up +2.04% at a 13-1/2 month high. Asian stocks settled sharply lower: Japan -5.36%, Hong Kong -2.16%, China -0.62%, Taiwan -2.98%, Australia -1.93%, Singapore -1.08%, South Korea -2.19%, India -1.23%. Asian stock markets slumped along with a sell-off in other world equity markets following Donald Trump's unexpected win in the U.S. Presidential election. Japan's Nikkei Stock Index tumbled to a 3-month low as exporters plunged after the yen soared to a 1-month high against the dollar. China's Shanghai Composite recovered from its worst losses as deflation concerns eased after China Oct consumer prices and producer prices rose more than expected.

The dollar index (DXY00 -0.26%) is down -0.63% at a 1-month low, although prices have recovered from their worst overnight levels after Donald Trump unexpectedly won the U.S. Presidency and as the Republican Party secured majorities in both legislative houses of Congress. The dollar sold off as Trump has promised to tear up U.S. Trade agreements, called China the "grand master" of currency manipulation, and has argued that a strong dollar damages U.S. trade competitiveness. EUR/USD (^EURUSD) is up +0.54% at a 2-month high. USD/JPY (^USDJPY) is down -1.86% at a 1-month low as the sell-off in global equity markets boosted the safe-haven demand for the yen.

Dec 10-year T-note prices (ZNZ16 -0.23%) are down -2.5 ticks at a 7-1/4 month nearest-futures low after initially surging up to a 1-month high on increased safe-haven demand after global stock markets sold-off on Donald Trump's unexpected win of the U.S. presidency. T-notes sold-off as stock prices recovered from their worst levels along with speculation Trump and the Republican-controlled Congress will ramp up spending to boost the U.S. economy.

China Oct CPI rose +2.1% y/y, right on expectations and the fastest pace of increase in 6 months. China Oct PPI rose +1.2% y/y, stronger than expectations of +0.9% y/y and the fastest pace of increase in 4-3/4 years.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly MBA mortgage applications (previous -1.2% with purchase sub-index -0.4% and refi sub-index -1.6%), (2) revised Sep wholesale inventories (expected unrevised at +0.2% m/m) and Sep wholesale trade sales (expected +0.5% m/m, Aug +0.7% m/m), (3) the Treasury's auction of $23 billion of 10-year T-notes, (4) Minneapolis Fed President Neel Kashkari (non-voter) participates in a fireside chat at an event in Eau Claire, WI, (5) San Francisco Fed President John Williams (non-voter) speaks on the outlook for the economy at the University of San Francisco, (6) EIA Weekly Petroleum Status Report, (7) USDA Nov WASDE crop production.

Notable S&P 500 earnings reports today include: Viacom (consensus $0.65), Mylan (1.46), Coty (0.33), CSRA (0.46).

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

Equity conferences during the remainder of this week include: Robert W. Baird Global Industrial Conference on Mon-Thu, Baird Global Industrial Conference on Wed, RBC Technology Internet Media and Telecommunications Conference on Wed-Thu, Wells Fargo Technology, Media & Telecom Conference on Wed-Fri, Citi Financial Technology Conference on Thu, SunTrust Robinson Humphrey Financial Technology, Business & Government Services on Thu.

OVERNIGHT U.S. STOCK MOVERS

U.S. auto supplier stocks were all downgraded to 'Underperform' by Bank of America/Merrill Lynch, citing risks to trade, and NAFTA in particular, following the Trump win.

Constellation Brands (STZ +0.37%) slipped nearly 3% in pre-maket trading after the stock was downgraded to 'Underperform' at Bank of America/Merrill Lynch.

U.S. Steel (X +1.60%) was upgraded to 'Buy' from 'Hold' at Jeffries with a price target of $26.

Restaurant Brands International (QSR +0.72%) was rated a new 'Buy' at Veritas with a price target of $52.

TripAdvisor (TRIP -0.52%) slid over 12% in after-hours trading after it reported Q3 revenue of $421 million, below consensus of $436.6 million.

Hertz Global Holdings (HTZ -22.50%) gained nearly 1% in after-hours trading after Carl Icahn bought 15.1 million shares of the stock Tuesday and boosted his stake in the company to 33.77% from 15.6%.

Jazz Pharmaceuticals PLC (JAZZ -1.23%) fell over 3% in after-hours trading after it reported Q3 adjusted EPS of $2.57, below consensus of $2.61.

ViaSat (VSAT +0.63%) rose nearly 3% in after-hours trading after it reported Q2 adjusted EPS of 40 cents, higher than consensus of 34 cents.

Globus Medical (GMED -1.02%) slumped 10% in after-hours trading after it lowered guidance on 2016 sales to $560 million from a July 26 view of $575 million, and cut its 2017 sales view to $625 million from a prior view of $640 million.

Multi Packaging Solutions International Ltd. (MPSX -1.31%) dropped 8% in after-hours trading after it reported Q1 adjusted EPS of 17 cents, weaker than consensus of 24 cents and said it sees a "challenging" first half of 2017.

Points International Ltd. (PCOM +1.59%) was rated a new 'Buy' at B. Riley with a 12-month target price of $10.

SAExploration (SAEX -3.82%) surged over 20% in after-hours trading after it announced a new project award for seismic data acquisition services valued at $35 million for a 3D deep water ocean-bottom marine project in West Africa.

MARKET COMMENTS

Dec E-mini S&Ps (ESZ16 -1.66%) this morning are down sharply by -48.00 points (-2.25%) at a 4-1/4 month low on Donald Trump's surprising win of the U.S. Presidency. Tuesday's closes: S&P 500 +0.38%, Dow Jones +0.40%, Nasdaq +0.65%. The S&P 500 on Tuesday rallied to a 1-week high and closed higher on expectations for Mrs. Clinton to win Tuesday's U.S. presidential election. Stocks were also boosted by a rally in mining stocks after the price of copper jumped +3.05% to a 1-year high.

Dec 10-year T-notes (ZNZ16 -0.23%) this morning are down -2.5 ticks at a 7-1/4 month nearest-futures low after intially surging to a 1-month high in overnight trade. Tuesday's closes: TYZ6 -11.0, FVZ6 -7.25. Dec 10-year T-notes on Tuesday closed lower on supply pressures as the Treasury auctions $62 billion of T-notes and T-bonds in this week's quarterly refunding. T-notes were also undercut by the stronger outlook for a Fed rate hike at the Dec FOMC meeting on expectations that Hillary Clinton would win Tuesday's U.S. presidential election.

The dollar index (DXY00 -0.26%) this morning is down -0.616 (-0.63%) at a 1-month low. EUR/USD (^EURUSD) is up +0.0060 (+0.54%) at a 2-month high. USD/JPY (^USDJPY) is down -1.96 (-1.86%) at a 1-month low. Tuesday's closes: Dollar index +0.080 (+0.08%), EUR/USD -0.0015 (-0.14%), USD/JPY +0.70 (+0.67%). The dollar index on Tuesday closed slightly higher on slightly increased chances for a Fed rate hike on expectations for a Clinton win in Tuesday's U.S. presidential election. In addition, there was weakness in EUR/USD after German Sep industrial production fell -1.8% m/m, the biggest decline in 2 years.

Dec crude oil prices (CLZ16 -0.56%) are down -10 cents (-0.22%) and Dec gasoline (RBZ16 -0.69%) is down -0.0035(-0.26%). Tuesday's closes: Dec crude +0.09 (+0.20%), Dec gasoline +0.0004 (+0.03%). Dec crude oil and gasoline on Tuesday settled slightly higher on expectations for EIA gasoline inventories on Wednesday to decline -1.5 million bbl and on OPEC's hike in its global 2017 crude demand forecast to 95.3 million bpd from 95.0 million bpd. Crude oil prices were undercut by expectations for EIA crude inventories on Wednesday to climb +1.5 million bbl.