• Global stocks are mostly higher with the European DJ Stoxx 50 Index up +0.77% and June S&Ps up +2.30 points. Concerns over Greece's sovereign debt eased after European finance ministers worked out a strategy for emergency loans in case its plan for 4.8 billion ($6.6 billion) in tax increases and wage cuts fails to stave off financial disaster. European banks are higher after Morgan Stanley raised its share-price estimates for Barclays, BNP Paribas, Deutsche Bank AG, UBS AG and Credit Suisse Group AG, saying "capital providers are likely to take a greater share of industry profits." Also boosting European stocks was the smaller-than-expected -0.6 point decline in the Mar German ZEW economic sentiment which fell for a sixth month to 44.5 as the coldest winter in 14 years along with concerns over Greece's debt undermined investor confidence. The ZEW's gauge of current economic conditions however, rose to -51.9, its tenth straight monthly improvement, and its highest level in 16 months. The euro and commodities also strengthened after UAE Central Bank Governor Sultan bin Nasser al-Suwaidi said that Dubai isn't likely to need more central bank aid and that a Dubai World restructuring plan will be discussed "very soon."

• The Asian markets today closed mostly higher with Japan down -0.28%, Hong Kong -0.27%, China +0.65%, Taiwan +0.80%, Australia +0.27%, Singapore +0.77%, South Korea -0.11%, India +1.27%. Asian shipping companies gained after the Baltic Dry Index, a measure of shipping costs for commodities, rose for the fourth straight day. Memory-chip makers rose in Taiwan after prices of the benchmark dynamic random access memory, or DRAM, chip rose to its highest level in 2 months. Also supporting gains in Asian share prices is the expectation that the BOJ will take additional easing measures when it ends its 2-day meeting tomorrow. According to Li & Fung Ltd, the world's biggest outsourcer for retailers, China's growth momentum has peaked as orders and production are expanding at a slower pace. Li & Fung said that the moderation could "ease the pressure for further government tightening" as the Chinese economy slows.

• June S&Ps this morning are trading up +2.30 points. The US stock market yesterday recovered from early weakness and finished the day mixed (Dow Jones +0.16%, S&P 500 +0.05%, Nasdaq Composite -0.23%). Bearish factors for stocks included (1) carry-over weakness from a drop in Chinese stocks on concern China's economy may slow and crimp the global economy after China's Premier Wen Jiabao said that ballooning sovereign debt and high unemployment worldwide could send the global economy into a "double dip" slump, along with the prediction from Morgan Stanley that it expects "multiple" increases in China's bank-reserve ratio requirements and higher interest rates in China as early as next month, (2) weakened foreign demand for US equities after net foreign purchases of US stocks dropped -79% m/m in Jan to $4.3 billion, (3) the slump in energy producers after crude oil prices fell to a 1-1/2 week low, and (4) the drop in homebuilders after the unexpected decrease in the Mar NAHB housing market index which matched an 11-month low (-2 to 15 versus expectations of unchanged at 17), a sign that the US housing market continues to struggle.

• Bullish factors for stocks included (1) the smaller-than-expected decline in the Mar Empire manufacturing index (-2.0 to 22.9 versus expectations of -4.9 to 20.0), (2) the unexpected increase in Feb US industrial production which has now increased for 8 consecutive months (+0.1% versus expectations of unchanged), (3) the stronger-than-expected Feb capacity utilization which rose to its highest level in 15 months (+0.2 to 72.7 versus expectations of unchanged at 72.6%), (4) the prediction from Deutsche Bank Securities that rising US retail sales signals that US payroll gains will average about +300,000 for the next 3 to 4 months, and (5) late short-covering in financial stocks after Senate Banking Chairman Dodd outlined the financial-regulation bill, which gave some clarity on financial regulation and took away some of the uncertainty from the proposed reforms.

• Sequenom (SQNM) plunged 19% in pre-market trading after the biotechnology company posted a Q4 loss excluding some items of 30 cents a share, wider than analysts' estimates of 25 cents.

• June 10-year T-notes this morning are trading down -2 ticks. T-note prices yesterday recovered from early weakness and settled up +2 ticks at 116-275. Bullish factors included (1) an increase in the safe-haven demand for Treasuries after the stock market moved lower early, (2) the unexpected decline in the Mar NAHB housing market index to an 11-month low (-2 to 15 versus expectations of unchanged at 17), and (3) speculation that the Fed will signal interest rates will remain unchanged for much of this year when it releases its post-FOMC statement following Tuesday's monetary policy meeting. Bearish factors yesterday included (1) the smaller-than-expected decline in the Mar Empire manufacturing index (-2.0 to 22.9 versus expectations of -4.9 to 20.0), (2) the unexpected increase in Feb US industrial production which has increased for 8 consecutive months (+0.1% versus expectations of unchanged), (3) the stronger-than-expected Feb capacity utilization rate which rose to its highest level in 15 months (+0.2 to 72.7 versus expectations of unchanged at 72.6%), and (4) weakened foreign demand for Treasuries after total foreign purchases of Treasury notes and bonds fell -12% m/m in Jan to $61.4 billion after China and Japan, the two biggest holders of US debt, reduced their holdings.

• The dollar index this morning is lower with the dollar/yen +0.16 yen and the euro/dollar +0,42 cents. The dollar index yesterday closed with moderate gains. Bullish factors yesterday included (1) euro weakness after the German and French finance ministers downplayed aid for Greece at the Euro-Zone finance ministers' meeting, and (2) the warning from ECB Council member Nowotny that some Euro-Zone governments may face a "debt spiral" if they don't start cutting their budget deficits. Bearish factors included (1) the smaller-than-expected increase in the Jan net long-term TIC flows, which indicates weakened international demand for US dollar assets, and (2) the statement from Moody's Investors Service that the US and UK are "substantially" closer to losing their AAA credit ratings.

• April crude oil prices this morning are up +42 cents and Apr gasoline is +1.16 cents. Apr crude oil yesterday moved lower the entire day and closed down -$1.44 per barrel. Apr gasoline closed down -3.22 cents per gallon. Apr crude and Apr gasoline both fell to 1-1/2 week lows. Bearish factors included (1) the stronger dollar, (2) the prediction from the Center for Global Energy Studies that crude prices will fall 25% to $60 a barrel in Q4 as OPEC members continue to disregard their quotas and overproduce, and (3) the statement from Libya's top oil official that demand for OPEC oil may fall in 2010 even as the global economy improves because non-members will meet potential demand increases. Bullish factors included (1) comments from Satoil ASA that OPEC members are "comfortable" with oil prices around $70 to $80 a barrel, which indicates OPEC will leave its production quotas unchanged when it meets Wednesday, and (2) the prediction from JPMorgan Chase that crude oil prices may surge if OPEC maintains existing production quotas as economic recovery in emerging markets may "spike" demand in a tighter-than-expected oil market.

Earnings reports (confirmed releases, sorted by mkt cap) DFS-Discover Financial Services (BEST earnings consensus ($0.10), FDS-Factset Research Systems (0.74), FMCN-Focus Media Holding Limited (0.18), EM-Emedeon (0.19), DSW-DSW Inc. (0.31), ATHN-Athenahealth (0.17), AIR-AAR Corp. (0.34), EVEP-EV Energy Partners, LP (0.64), BPZ-BPZ Resources (-0.01), PBY-Permian Basin Royalty Trust (n/a), RUE-Rue21 (0.30).

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