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OVERNIGHT MARKETS AND NEWS

Dec E-mini S&Ps (ESZ17 -0.12%) this morning are down -0.06% ahead of the minutes of the Sep 19-20 FOMC meeting that may provide confirmation of a Fed rate hike in Dec. European stocks are up +0.15%, led by a +1.54% jump in Spain's Ibex Stock Index, after Catalan President Puigdemont retreated from his previous hardline stance of independence and said he would seek talks with the Spanish government over the future of Catalonia. Spain's Prime Minister Rajoy convened an extraordinary meeting of his cabinet today to discuss his next move, which may include triggering Article 155 of Spain's Constitution that would suspend Catalonia's government and assert direct control from Madrid. European stocks also found support on upbeat comments from ECB Governing Council member Visco who said the economic recovery in the Eurozone is gaining momentum. Energy stocks also moved higher as Nov WTI crude oil (CLX17 +0.71%) climbed +0.77% to a 1-week high. Asian stocks settled mostly higher: Japan +0.28%, Hong Kong -0.36%, China +0.16%, Taiwan +1.03%, Australia +0.59%, Singapore -0.26%, South Korea +1.13%, India -0.28%. Japan's Nikkei Stock Index rallied to a new 2-year high and found support on signs of economic strength after Japan Aug core machine orders rose a more-than-expected +4.4% y/y, the biggest increase in 6-months.

The dollar index (DXY00 -0.10%) is down -0.11% at a 1-week low. EUR/USD (^EURUSD) is up +0.12% at a 2-week high. USD/JPY (^USDJPY) is down -0.20%.

Dec 10-year T-note prices (ZNZ17 -0.07%) are down -2.5 ticks.

Japan Aug core machine orders rose +3.4% m/m and +4.4% y/y, stronger than expectations of +1.0% m/m and +0.7% y/y with the +4.4% y/y gain the largest year-on-year increase in 6-months.

ECB Governing Council member and Bank of Italy Governor Visco said the "economic recovery in the Eurozone is gaining momentum and becoming more widespread across member countries."

ECB Governing Council member Smets said the Eurozone economy is "behaving better," but the ECB's latest assessment "was clear that inflation still needs to be supported by monetary policy."

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly MBA mortgage applications (previous -0.4% with purchase sub-index +1.0% and refi sub-index -1.8%), (2) Chicago Fed President Charles Evans (voter) takes part in a moderated discussion on the economy and monetary policy, (3) Aug JOLTS job openings (expected -10,000 to 6.16 million, Jul +54,000 to 6.17 million), (4) Treasury auctions $24 billion of 3-year T-notes and $20 billion of 10-year T-notes, (5) minutes of the Sep 19-20 FOMC meeting, (6) San Francisco Fed President John Williams gives a "Community Leaders Speech" at an event in San Francisco.

Notable Russell 1000 earnings reports today include: Blackrock (consensus $5.55), Fastenal (0.50), Delta (1.53), Bank of the Ozarks (0.74), Commerce Bancshares (0.74).

U.S. IPO's scheduled to price today: OrthoPediatrics (KIDS), Cargurus (CARG).

Equity conferences this week: Cerner Health Conference on Mon-Wed, HR Technology Conference on Tue-Fri, National HUBZone Conference on Thu.

OVERNIGHT U.S. STOCK MOVERS

Coach (COH +0.81%) was downgraded to 'Equal-Weight' from 'Overweight' at Consumer Edge Research.

Groupon (GRPN -1.38%) was downgraded to 'Sell' from 'Neutral' at Goldman Sachs.

Delta Air Lines (DAL +1.86%) rose 2% in pre-market trading after it reported Q3 adjusted EPS of $1.57, better than expectations of $1.52.

Visa (V +0.28%) was upgraded to 'Outperform' from 'Market Perform' at Wells Fargo Securities with a price target of $120.

PayPal (PYPL -0.29%) was upgraded to 'Overweight' from 'Equal-Weight' at Morgan Stanley with a price target of $76.

Exelon (EXC +0.68%) was downgraded to 'Sell' from 'Neutral' at Goldman Sachs with a price target of $35.

FedEx (FDX +0.06%) was initiated with an 'Overweight' at KeyBanc Capital Markets with a 12-month target price of $260.

Electronic Arts (EA -0.67%) was initiated with a 'Buy' at SunTrust Robinson Humphrey with a 12-month target price of $133.

AnaptysBio (ANAB +101.17%) announced that it intends to offer 3 million shares of its common stock in an underwritten public offering.

Micron (MU +2.49%) fell nearly 5% in after-hours trading after it announced that it intends to offer $1 billion of shares of its common stock in an underwritten public offering.

Flexion Therapeutics (FLXN -3.79%) tumbled nearly 6% in after-hours trading after it announced that it intends to offer 4 million shares of its common stock in an underwritten public offering.

Barracuda Networks (CUDA +0.04%) slid 6% in after-hours trading after it forecast Q3 revenue of $92.5 million-$94.5 million, the midpoint below consensus of $94.4 million.

Eagle Bancorp Montana (EBMT +1.86%) slid over 5% in after-hours trading after it announced that it intends to offer $18 million of its common stock in an underwritten public offering.

VOXX International (VOXX +1.18%) dropped 10% in after-hours trading after it said its Q2 gross margin shrank -240 basis points.

MARKET COMMENTS

Dec S&P 500 E-mini stock futures (ESZ17 -0.12%) this morning are down -1.50 points (-0.06%). Tuesday's closes: S&P 500 +0.23%, Dow Jones +0.31%, Nasdaq +0.08%. The S&P 500 on Tuesday posted a new record high and closed higher on strength in consumer stocks led by a +4% jump in Wal-Mart to a 2-1/2 year high and a rally in energy stocks after crude oil prices climbed +2.70%. There was also a rally in airline stocks after American Airlines raised its Q3 revenue forecast and United Continental Airlines predicted bigger profit margins. Stocks were also boosted by the IMF's hike in its global 2017 GDP forecast to 3.6% from a Jul estimate of 3.5%.

Dec 10-year T-note prices (ZNZ17 -0.07%) this morning are down -2.5 ticks. Tuesday's closes: TYZ7 +5.50, FVZ7 +2.50. Dec 10-year T-notes on Tuesday closed higher on continued safe-haven demand from the Catalonia separatist threat and from the threat to tax reform due to President Trump's feud with Republican Senator Bob Corker.

The dollar index (DXY00 -0.10%) this morning is down -0.098 (-0.11%) at a 1-week low. EUR/USD (^EURUSD) is up +0.0014 (+0.12%) at a 2-week high and USD/JPY (^USDJPY) is down -0.22 (-0.20%). Tuesday's closes: Dollar Index -0.385 (-0.41%), EUR/USD +0.0068 (+0.58%), USD/JPY -0.23 (-0.20%). The dollar index on Tuesday fell to a 1-week low and closed lower on concern that President Trump's feud with Republican Senator Corker may unravel Republican support for his tax overhaul plan. The dollar was also undercut by the drop in the 10-year T-note yield, which hurt the dollar's interest rate differentials.

Nov crude oil (CLX17 +0.71%) this morning is up +39 cents (+0.77%) at a 1-week high and Nov gasoline (RBX17 +1.34%) is +0.0086 (+0.54%). Tuesday's closes: Nov WTI crude +1.34 (+2.70%), Nov gasoline +0.0321 (+2.06%). Nov crude oil and gasoline on Tuesday closed higher on the fall in the dollar index to a 1-week low and Saudi Aramco's 560,000 bpd cut in its crude oil allocations to customers next month to help curb global crude inventories. Crude oil prices also found support on expectations for EIA crude inventories on Thursday to fall -750,000 bbl.

Metals prices this morning are lower with Dec gold (GCZ17 -0.12%) -1.8 (-0.14%), Dec silver (SIZ17 -0.22%) -0.047 (-0.27%) and Dec copper (HGZ17 -0.08%) -0.002 (-0.07%). Tuesday's closes: Dec gold +8.8 (+0.68%), Dec silver +0.236 (+1.39%), Dec copper +0.0295 (+0.97%). Metals on Tuesday closed higher with Dec gold at a 1-1/2 week high, Dec silver at a 2-week high and Dec copper at a 4-week high. Metals prices were boosted by the slide in the dollar index to a 1-week low and safe-haven demand for precious metals on political risks from Spain with Catalonia's threat to secede from Spain. Copper was supported by tighter copper supplies after LME copper inventories fell -1,125 MT to a 3-week low of 289,875 MT.

GLOBAL EVENT CALENDAR10/11/2017
Wednesday, Oct 11
US 0700 ET Weekly MBA mortgage applications, previous -0.4% with purchase sub-index +1.0% and refi sub-index -1.8%.
0715 ET Chicago Fed President Charles Evans (voter) takes part in a moderated discussion on the economy and monetary policy.
1000 ET Aug JOLTS job openings expected -10,000 to 6.16 million, Jul +54,000 to 6.17 million.
1130 ET Treasury auctions $24 billion of 3-year T-notes
1300 ET Treasury auctions $20 billion of 10-year T-notes.
1400 ET Minutes of the Sep 19-20 FOMC meeting.
1440 ET San Francisco Fed President John Williams gives a ?Community Leaders Speech? at an event in San Francisco.
Thursday, Oct 12
US 0830 ET Weekly initial unemployment claims expected -8,000 to 252,000, previous -12,000 to 260,000. Weekly continuing claims expected -8,000 to 1.930 million, previous +2,000 to 1.938 million.
0830 ET Sep PPI final demand expected +0.4% m/m and +2.6% y/y, Aug +0.2% m/m and +2.4% y/y. Sep PPI ex food & energy expected +0.2% m/m and +2.0% y/y, Aug +0.1% m/m and +2.0% y/y.
1015 ET Fed Governor Lael Brainard and ECB President Mario Draghi speak on a monetary policy panel at the Peterson Institute for International Economics in Washington D.C.
1030 ET Fed Governor Jerome Powell delivers keynote address at a Institute of International Finance conference on emerging markets.
1100 ET Treasury announces amount of 30-year TIPS to be auctioned Oct 19 (previous $5 billion).
1100 ET EIA weekly Petroleum Status Report.
1200 ET USDA Oct WASDE crop production report.
1300 ET Treasury auctions $12 billion of 30-year T-bonds.
U.S. STOCK CALENDAR10/11/2017
NameTickerTimeDescriptionPeriodEstimate
Bank of the Ozarks OZRK US Bef-mkt Q3 2017 Earnings Release Q3 17 0.74
BlackRock Inc BLK US 06:30 Q3 2017 Earnings Release Q3 17 5.55
Fastenal Co FAST US 07:00 Q3 2017 Earnings Release Q3 17 0.499
Delta Air Lines Inc DAL US 07:00 Q3 2017 Earnings Release Q3 17 1.534
BlackRock Inc BLK US 08:30 Q3 2017 Earnings Call Q3 17
Kroger Co/The KR US 09:00 Investor Conference
Fastenal Co FAST US 10:00 Q3 2017 Earnings Call Q3 17
Delta Air Lines Inc DAL US 10:00 Q3 2017 Earnings Call Q3 17
Paychex Inc PAYX US 10:00 Annual General Meeting
Bank of the Ozarks OZRK US 11:00 Q3 2017 Earnings Call Q3 17
Commerce Bancshares Inc/MO CBSH US Q3 2017 Earnings Release Q3 17 0.743
Western Digital Corp WDC US 12:30 Analyst Meeting
Veeva Systems Inc VEEV US 16:00 Analyst and Investor Day


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Barchart U.S. Morning Call is written by the experienced members of the Commodity Research Bureau and the Barchart Research Team.  Commodity Research Bureau (CRB) has been providing research to the financial and commodity community since 1934.  If you have any questions for our analysts, please contact us at support@crbtrader.com.

Sent every morning, "Morning Call" summarizes overnight global market news, along with a U.S. market forecast for the day ahead. It Includes upcoming earnings reports, a global financial calendar, and quote board overview of where the markets are standing.

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