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OVERNIGHT MARKETS AND NEWS

Dec E-mini S&Ps (ESZ17 +0.07%) this morning are up +0.10% before U.S. data on Oct payrolls and the Sep trade balance. The markets are expecting a surge in hiring last month of +300,000 in non-farm payrolls following September's hurricane-induced job losses of -33,000. European stocks are down -0.02%, led by losses in bank stocks, after Societe Generale and Este Group reported weaker-than-expected quarterly revenue. Strength in European automakers limited the downside in the overall market after Renault SA jumped 5% as the French government sold its stake in the company. Asian stocks settled mostly higher: Japan closed for holiday, Hong Kong +0.30%, China-0.34%, Taiwan +0.11%, Australia +0.47%, Singapore +0.05%, South Korea +0.39%, India +0.33%. China's Shanghai Composite tumbled to a 5-week low as brokerage and technology stocks declined due to deleveraging concerns. A commentary in the PBOC-backed Financial News said that regulators should step up efforts to clean up all kinds of "financial mess" in order to reduce financial risks. India's Sensex Stock Index posted a new record high on better-than-expected quarterly earnings results with 21 of the 32 companies in the Sensex index that have announced earnings results thus far beating market expectations.

The dollar index (DXY00 +0.10%) is up +0.11%. EUR/USD (^EURUSD) is down -0.11%. USD/JPY (^USDJPY) is down -0.01%.

Dec 10-year T-note prices (ZNZ17 -0.01%) are little changed, down -0.5 of a tick.

ECB Governing Council member Nowotny said "we see the economy improving substantially but we're not yet there" and that "at some time there will be of course a reducing and some kind of end date to stimulus but it's too early to have this discussion."

The UK Oct Markit/CIPS services PMI unexpectedly rose +2.0 to 55.6, stronger than expectations of -0.3 to 53.3 and the fastest pace of expansion in 6 months.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Oct non-farm payrolls (expected +310,000, Sep -33,000) and Oct unemployment rate (expected unch at 4.2%, Sep -0.2 to 4.2%), (2) Oct average hourly earnings (expected +0.2% m/m and +2.7% y/y, Sep +0.5% m/m and +2.9% y/y), (3) Sep trade balance (expected -$43.2 billion, Aug -$42.4 billion), (4) Oct ISM non-manufacturing index (expected -1.3 to 58.5, Sep +4.5 to 59.8), (5) Sep factory orders (expected +1.2%, Aug +1.2% and +0.4% ex-transportation), (6) revised Oct Markit services PMI (expected unch at 55.9, prelim-Oct +0.6 to 55.9), (7) Minneapolis Fed President Neel Kashkari (voter) speaks in a moderated Q&A on Women in Housing and Finance.

Notable S&P 500 earnings reports today include: Berkshire Hathaway (consensus $2347), Duke Energy (1.55), Ameren (1.41), Moody's (1.38), CenterPoint Energy (0.39).

U.S. IPO's scheduled to price today: Aquantia (AQ).

Equity conferences this week: VancAnalysts Association of Boston Conference on Thu-Fri, American College of Rheumatology Meeting on Fri, North American Cystic Fibrosis Conference on Fri.

OVERNIGHT U.S. STOCK MOVERS

Apple (AAPL +0.73%) rose nearly 3% to a new record high in after-hours trading after it reported Q4 revenue of $52.6 billion, better than consensus of $50.7 billion, and said it sees fiscal Q1 revenue of $84 billion-$87 billion, the mid-point above consensus of $84.5 billion. Apple suppliers also rallied in after-hours trading on Apple's earnings results with Skyworks (SWKS +0.40%) up nearly 2%, Lumentum Holdings (LITE -6.88%) up over 2% and Broadcom Ltd (AVGO +0.08%) up over 1%.

Universal Display (OLED +1.16%) climbed almost 4% in after-hours trading after it reported Q3 revenue of $61.7 million, well above consensus of $46.7 million, and then said it sees full-year revenue of $310 to $320 million, better than consensus of $298.3 million.

Starbucks (SBUX -0.47%) tumbled 7% in after-hours trading after it reported Q4 comparable sales were up 2%, below estimates of up +3.2%.

Arista Networks (ANET -8.16%) rallied over 6% in after-hours trading after it reported Q3 revenue of $437.6 million, better than consensus of $418.6 million, and then said it sees Q4 revenue of $450 million to $464 million, well above consensus of $447.2 million.

Tableau Software (DATA +1.75%) dropped 13% in after-hours trading after it reported Q3 revenue of $314.9 million, below consensus of $219.3 million.

Activision Blizzard (ATVI +0.18%) gained nearly 2% in after-hours trading after it reported Q3 adjusted EPS of 60 cents, above consensus of 49 cents, and then said it sees 2017 adjusted EPS of $2.16, better than consensus of $2.13.

Cirrus Logic (CRUS +1.69%) rose 3% in after-hours trading after it reported Q2 revenue of $425.5 million, higher than consensus of $410.4 million, and then said it sees Q3 revenue of $510 million to $550 million, the mid-point above consensus of $523 million.

American International Group (AIG +0.49%) dropped more than 3% in after-hours trading after it reported a Q3 operating loss of -$1.22 a share, wider than consensus of -78 cents.

Fluor (FLR +1.18%) rose more than 1% in after-hours trading after it reported Q3 EPS of 67 cents, higher than consensus of 60 cents, and then said it sees full-year EPS of $1.50 to $1.60, the mid-point above consensus of $1.54.

Acacia Communications (ACIA -9.91%) fell 4% in after-hours trading after it said it sees Q4 adjusted EPS of 19 cents to 36 cents, well below consensus of 47 cents.

Varonis Systems (VRNS -2.44%) jumped over 10% in after-hours trading after it said it sees Q4 adjusted EPS of 28 cents to 29 cents, better than consensus of 27 cents, and then said it sees full-year adjusted EPS of 16 cents to 17 cents, above consensus of 8 cents.

Wingstop (WING -2.37%) climbed over 3% in after-hours trading after it reported Q3 revenue of $26 million, above consensus of $25.1 million.

Chemours (CC -2.00%) slid 3% in after-hours trading after it reported Q3 adjusted Ebitda of $381 million, below consensus of $388 million.

El Pollo Loco Holdings (LOCO -0.88%) dropped 7% in after-hours trading after it reported Q3 proforma EPS of 15 cents, weaker than consensus of 18 cents, and then said it sees full-year proforma EPS of 61 cents to 63 cents, below consensus of 67 cents.

MARKET COMMENTS

Dec S&P 500 E-mini stock futures (ESZ17 +0.07%) this morning are up +2.50 points (+0.10%). Thursday's closes: S&P 500 +0.16%, Dow Jones +0.25%, Nasdaq unch. The S&P 500 on Thursday closed slightly higher on the unexpected -5,000 decline in U.S. weekly jobless claims to 229,000 (better than expectations of +2,000 to 235,000) and on the +3.0% increase in U.S. Q3 non-farm productivity (stronger than expectations of +2.6% and the biggest increase in 3 years). Stocks were undercut by weakness in housing stocks after the details of the proposed U.S tax plan called for limits on deductions for mortgage interest payments.

Dec 10-year T-note prices (ZNZ17 -0.01%) this morning are down -0.5 of a tick. Thursday's closes: TYZ7 +7.50, FVZ7 +3.25. Dec 10-year T-notes on Thursday rose to a 1-1/2 week high and closed higher on reduced inflation concerns after U.S. Q3 non-farm productivity of +3.0% (the biggest increase in 3 years) and on the appointment of Jerome Powell as the next Fed Chair, which signals a continuation of outgoing Fed Chair Yellen's dovish polices.

The dollar index (DXY00 +0.10%) this morning is up +0.105 (+0.11%). EUR/USD (^EURUSD) is down -0.0013 (-0.11%) and USD/JPY (^USDJPY) is down -0.01 (-0.01%). Thursday's closes: Dollar Index -0.109 (-0.11%), EUR/USD +0.0039 (+0.34%), USD/JPY -0.10 (-0.09%). The dollar index on Thursday closed lower on the fall in the 10-year T-note yield to a 1-1/2-week low, which reduces the dollar's interest rate differentials, and on the appointment of Jerome Powell as next Fed Chair, which signals a continuation of Fed Chair Yellen's relatively dovish monetary policy direction.

Dec crude oil (CLZ17 +0.29%) this morning is up +30 cents (+0.55%) and Dec gasoline (RBZ17 +1.02%) is +0.0191 (+1.08%). Thursday's closes: Dec WTI crude +0.24 (+0.44%), Dec gasoline +0.0287 (+1.65%). Dec crude oil and gasoline on Thursday closed higher on a weaker dollar and on reduced OPEC crude output after OPEC Oct crude production fell -180,000 bpd to 32.59 million bpd, a 5-month low. Crude oil prices were undercut by concern about whether OPEC and Russia will soon agree to an extension of crude production cuts after Russian Energy Minister Novak said there's "no rush" for OPEC and Russia to extend their crude production cuts.

Metals prices this morning are mixed with Dec gold (GCZ17 -0.20%) -2.7 (-0.21%), Dec silver (SIZ17 -0.16%) -0.027 (-0.16%) and Dec copper (HGZ17 +0.06%) +0.002 (+0.06%). Thursday's closes: Dec gold +0.8 (+0.06%), Dec silver -0.039 (-0.23%), Dec copper +0.0010 (+0.03%). Metals on Thursday settled mixed with Dec gold at a 1-week high. Metals prices were boosted by a weak dollar and by the appointment of Jerome Powell as the next Fed Chair, which signals a continuation of Fed Chair Yellen's relatively dovish monetary policy direction. Metals prices were undercut by the drop in U.S. weekly continuing claims to a 43-3/4 year low, which bolsters the case for a Fed rate hike in Dec.

GLOBAL EVENT CALENDAR11/03/2017
Friday, Nov 3
US 0830 ET Oct non-farm payrolls expected +310,000, Sep -33,000. Oct private payrolls expected +301,000, Sep -40,000. Oct manufacturing payrolls expected +15,000, Sep -1,000, Oct unemployment rate expected unch at 4.2%, Sep -0.2 to 4.2%.
0830 ET Oct average hourly earnings expected +0.2% m/m and +2.7% y/y, Sep +0.5% m/m and +2.9% y/y. Oct average weekly hours expected unch at 34.4 hours, Sep unch at 34.4 hrs.
0830 ET Sep trade balance expected -$43.2 billion, Aug -$42.4 billion.
1000 ET Oct ISM non-manufacturing index expected -1.3 to 58.5, Sep +4.5 to 59.8.
1000 ET Sep factory orders expected +1.2%, Aug +1.2% and +0.4% ex-transportation.
1045 ET Revised Oct Markit services PMI expected unch at 55.9, prelim-Oct +0.6 to 55.9.
1215 ET Minneapolis Fed President Neel Kashkari (voter) speaks in a moderated Q&A on Women in Housing and Finance.
Monday, Nov 6
US 1100 ET USDA weekly grain export inspections.
1210 ET New York Fed President William Dudley speaks about Lessons from the Financial Crisis to the Economic Club of New York.
1600 ET USDA crop conditions and progress report.
U.S. STOCK CALENDAR11/03/2017
NameTickerTimeDescriptionPeriodEstimate
DENTSPLY SIRONA Inc XRAY US Bef-mkt Q3 2017 Earnings Release Q3 17 0.658
CenterPoint Energy Inc CNP US 06:30 Q3 2017 Earnings Release Q3 17 0.394
CBRE Group Inc CBG US 06:59 Q3 2017 Earnings Release Q3 17 0.539
Moody's Corp MCO US 07:00 Q3 2017 Earnings Release Q3 17 1.384
Duke Energy Corp DUK US 07:00 Q3 2017 Earnings Release Q3 17 1.551
Ameren Corp AEE US 07:59 Q3 2017 Earnings Release Q3 17 1.408
American International Group Inc AIG US 08:00 Q3 2017 Earnings Call Q3 17
CBRE Group Inc CBG US 08:30 Q3 2017 Earnings Call Q3 17
Assurant Inc AIZ US 08:30 Q3 2017 Earnings Call Q3 17
DENTSPLY SIRONA Inc XRAY US 08:30 Q3 2017 Earnings Call Q3 17
Pinnacle West Capital Corp PNW US 08:40 Q3 2017 Earnings Release Q3 17 2.305
Alliant Energy Corp LNT US 10:00 Q3 2017 Earnings Call Q3 17
Duke Energy Corp DUK US 10:00 Q3 2017 Earnings Call Q3 17
Ameren Corp AEE US 10:00 Q3 2017 Earnings Call Q3 17
EOG Resources Inc EOG US 10:00 Q3 2017 Earnings Call Q3 17
CenterPoint Energy Inc CNP US 11:00 Q3 2017 Earnings Call Q3 17
Moody's Corp MCO US 11:30 Q3 2017 Earnings Call Q3 17
Pinnacle West Capital Corp PNW US 12:00 Q3 2017 Earnings Call Q3 17
Berkshire Hathaway Inc BRK/A US Q3 2017 Earnings Release Q3 17 2,346.62


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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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