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OVERNIGHT MARKETS AND NEWS

Dec E-mini S&Ps (ESZ17 -0.04%) this morning are up +0.09% at a new record nearest-futures high on signs of sustainability in the U.S. economic recovery as consumers continue to spend after Adobe Systems reported that Black Friday online spending was a record $5.03 billion, up +16.9% y/y. Adobe also estimates that today's Cyber Monday shopping day will be the biggest online shopping day in history, with $6.6 billion in predicted sales, up +16.5% y/y. European stocks are up +0.24% as political risks in Germany eased on signs that the SPD party will join Chancellor Merkel's Christian Democratic party in a "Grand Coalition." Asian stocks settled mostly lower: Japan -0.24%, Hong Kong -0.60%, China -0.94%, Taiwan -0.95%, Australia +0.10%, Singapore -0.17%, South Korea -1.76%, India +0.13%. China's Shanghai Composite tumbled to a 3-month low as concern over the government's attempt to tighten liquidity led to long liquidation in Chinese large-cap stocks.

The dollar index (DXY00 -0.08%) is down -0.12% at a 2-month low. EUR/USD (^EURUSD) is up +0.03% at a 2-month high on optimism Chancellor Merkel's Christian Democratic party can form a coalition with the German SPD party. USD/JPY (^USDJPY) is down -0.33%.

Dec 10-year T-note prices (ZNZ17 unch) are down -3 ticks.

Japan Oct PPI services prices rose +0.8% y/y, weaker than expectations of +0.9% y/y.

China Oct industrial profits rose +25.1% y/y and Jan-Oct industrial profits are up +23.3% y/y.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Oct new home sales (expected -6.3% to 625,000, Sep +18.9% to 667,000), (2) Nov Dallas Fed manufacturing activity (expected -3.6 to 24.0, Oct +6.3 to 27.6), (3) Treasury auctions $26 billion of 2-year T-notes and $34 billion of 5-year T-notes, (4) New York Fed President Dudley (voter) speaks in a moderated discussion at the University of California, Berkeley, on ‘The U.S. Economy: 10 Years after the Crisis,’ (5) USDA weekly grain export inspections, (6) USDA crop conditions and progress report.

Notable Russell 1000 earnings reports today include: Thor Industries (consensus $1.86).

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

Equity conferences this week: MUFG Securities Equity Energy Tour on Mon, Credit Suisse Global TMT Conference on Mon-Wed, Credit Suisse Technology Media & Telecom Conference on Tue, UBS Global Real Estate CEO/CFO Conference on Tue, Piper Jaffray Health Care Conference on Tue-Wed, ACI European Base Oils & Lubricants Interactive Summit on Wed, Citi Basic Materials Conference on Wed-Thu, Bank of America Merrill Lynch Leveraged Finance Conference on Wed-Thu, Credit Suisse Industrials Conference on Wed-Thu, Evercore ISI Inaugural Biopharma Catalyst/Deep Dive Conference on Wed-Thu, ACI Cyber Security Oil, Gas, Power Conference on Thu, Deutsche Bank MedTools and Diagnostics One-on-One Day on Thu, HSBC High Yield Conference on Thu.

OVERNIGHT U.S. STOCK MOVERS

Ciena (CIEN +0.67%) was upgraded to 'Buy' from 'Neutral' at Bank of America/Merrill Lynch with a 12-month target price of $28.

Everest Re (RE -0.72%) was upgraded to 'Outperform' from 'Underperform' at Keefe, Bruyette & Woods.

Norfolk Southern (NSC +0.60%) was downgraded to 'Sell' from 'Hold' at Loop Capital Markets with a price target of $120.

Western Digital (WDC -0.14%) was downgraded to 'Equal-Weight' from 'Overweight' at Morgan Stanley.

Allergan (AGN -0.74%) was resumed with an 'Outperform' at Leerink Partners LLC with a 12-month target price of $237.

Buffalo Wild Wings (BWLD -0.07%) was downgraded to 'Neutral' from 'Buy' at UBS, citing valuation.

Square (SQ +0.10%) was downgraded to 'Sell' from 'Neutral' at BTIG LLC with a 12-month target price of $30.

Eminence Capital reported that it raised its passive stake in Wendy's (WEN -0.65%) to 5.2% from 3.68%.

Macy's (M +2.13%) slipped almost 1% in after-hours trading after a glitch in the company's credit-card processing Black Friday spurred long lines which prompted some customers to abandon purchases due to the long wait times.

Johnson Controls International Plc (JCI +0.33%) may move higher this morning after vice president of the company, William Jackson, filed a Form 4 with the SEC that he purchased 20,000 shares of JCI at an average price of $36 on Nov 21.

Broadfin Capital reported that it reduced its stake in Recro Pharma (REPH unch) to 15.31% from 16.21%.

Marathon Patent Group (MARA +172.94%) jumped 14% in after-hours trading on top of a 173% surge Friday after it reported a Q3 operating loss of -$3.9 million versus an operating loss of -$10.7 million for Q3 of 2016.

MARKET COMMENTS

Dec S&P 500 E-mini stock futures (ESZ17 -0.04%) this morning are up +2.25 points (+0.09%) at a new record nearest-futures high. Friday's closes: S&P 500 +0.21%, Dow Jones +0.14%, Nasdaq +0.36%. The S&P 500 on Friday climbed to a new record high and closed higher on a rally in consumer retail stocks due to optimism for strong holiday sales as Black Friday begins the all-important holiday shopping season. There was also strength in energy stocks after crude oil prices climbed +1.60% to a 2-1/3 year high.

Dec 10-year T-note prices (ZNZ17 unch) this morning are down -3 ticks. Friday's closes: TYZ7 -4.50, FVZ7 -2.75. Dec 10-year T-notes on Friday closed lower on the rally in the S&P 500 to a new record high and on the jump in crude oil prices to a 2-1/3 year high, which boosts inflation expectations.

The dollar index (DXY00 -0.08%) this morning is down -0.11 (-0.12%) at a 2-month low. EUR/USD (^EURUSD) is up +0.0004 (+0.03%) at a 2-month high and USD/JPY (^USDJPY) is down -0.37 (-0.33%). Friday's closes: Dollar Index -0.438 (-0.37%), EUR/USD +0.0080 (+0.68%), USD/JPY +0.30 (+0.27%). The dollar index on Friday fell to a 2-month low and closed lower on the unexpected decline in the U.S. Nov Markit manufacturing PMI, which is dovish for Fed monetary policy. There was also strength in EUR/USD, which rose to a 2-month high after the German Nov IFO business climate unexpectedly rose to the highest since the data series began in 1991.

Jan crude oil (CLF18 -1.05%) this morning is down -49 cents (-0.83%) and Jan gasoline (RBF18 -0.49%) is -0.0054 (-0.30%). Friday's closes: Jan WTI crude +0.93 (+1.60%), Jan gasoline +0.0187 (+1.06%). Jan crude oil and gasoline on Friday closed higher with Jan crude at a 2-1/3 year high and Jan gasoline at a 1-1/2 week high. Crude oil prices were boosted by the slump in the dollar index to a 2-month low and by a report that said Russia and OPEC have outlined a deal to extend their crude production cuts until the end of next year. Crude oil prices were also boosted by the rally in the S&P 500 to a new record high, which bolsters optimism in the economic outlook that may lead to increased energy demand.

Metals prices this morning are mixed with Dec gold (GCZ17 +0.51%) +6.2 (+0.48%), Dec silver (SIZ17 +0.52%) +0.078 (+0.46%) and Dec copper (HGZ17 -1.29%) -0.039 (-1.21%). Friday's closes: Dec gold -4.9 (-0.38%), Dec silver -0.120 (-0.70%), Dec copper +0.0320 (+1.02%). Metals on Friday settled mixed with Dec copper at a 3-week high. Metals prices were boosted by the slide in the dollar index to a 2-month low. Copper was also boosted by strikes by copper miners in Chile and Peru and by tighter copper supplies as LME copper inventories fell -5,475 MT to a 2-1/4 month low of 213,600 MT. Metals prices were undercut by the rally in the S&P 500 to a new record high, which curbs safe-haven demand for precious metals.

GLOBAL EVENT CALENDAR11/27/2017
Monday, Nov 27
US 1000 ET Oct new home sales expected -6.3% to 625,000, Sep +18.9% to 667,000.
1030 ET Nov Dallas Fed manufacturing activity expected -3.6 to 24.0, Oct +6.3 to 27.6.
1100 ET USDA weekly grain export inspections.
1130 ET Treasury auctions $26 billion of 2-year T-notes.
1300 ET Treasury auctions $34 billion of 5-year T-notes.
1600 ET USDA crop conditions and progress report.
1900 ET New York Fed President Dudley (voter) speaks in a moderated discussion at the University of California, Berkeley, on The U.S. Economy: 10 Years after the Crisis.
Tuesday, Nov 28
US 0830 ET Oct wholesale inventories expected +0.4%, Sep +0.3%. Oct retail inventories, Sep -1.0%.
0900 ET Sep FHFA house price index expected +0.5% m/m, Aug +0.7% m/m. Q3 house price purchase index, Q2 +1.6% q/q.
0900 ET Sep S&P CoreLogic composite-20 home price index expected +0.3% m/m and +6.0% y/y, Aug +0.45% m/m and +5.92% y/y.
1000 ET Conference Board Nov U.S. consumer confidence expected -1.9 to 124.0, Oct +5.3 to 125.9.
1000 ET Senate Banking Committee holds hearing on Fed Chair nominee Jerome Powell.
1000 ET Nov Richmond Fed manufacturing index expected +2 to 14, Oct -7 to 12.
1300 ET Treasury auctions $28 billion of 7-year T-notes.
U.S. STOCK CALENDAR11/27/2017
NameTickerTimeDescriptionPeriodEstimate
Equifax Inc EFX US Investor Meeting
Thor Industries Inc THO US Aft-mkt Q1 2018 Earnings Release Q1 18 1.859


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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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