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OVERNIGHT MARKETS AND NEWS

Dec E-mini S&Ps (ESZ17 +0.62%) this morning are up +0.62% at a new record high after the Senate on Saturday passed legislation that will cut the U.S. corporate tax rate to 20% from 35% in 2019. Also giving U.S. equity markets a boost is the legislation in the House that will push the next funding deadline to the Friday before Christmas, which will avoid a potential partial government shutdown this Friday and give U.S. legislators time to put together a spending bill. In addition, U.S. political risks eased after ABC news suspended a reporter they said that had made a "serious error" on his report on former national security adviser Flynn, saying that Trump had not asked Flynn to contact Russia as a presidential candidate, but that Trump had asked Flynn to contact Russia when he was president-elect about issues including working together to fight ISIS. European stocks are up +1.20% as industrial companies with significant revenue exposure to the U.S. also moved higher on the passage of U.S. tax cuts. Asian stocks settled mixed: Japan -0.49%, Hong Kong +0.22%, China -0.24%, Taiwan +0.49%, Australia -0.07%, Singapore -0.32%, South Korea +1.23%, India +0.11%.

The dollar index (DXY00 +0.33%) is up +0.27%. EUR/USD (^EURUSD) is down -0.34%. USD/JPY (^USDJPY) is up +0.64% at a 2-week high as the rally in stocks reduces the safe-haven demand for the yen.

Mar 10-year T-note prices (ZNH18 -0.24%) are down -8 ticks.

Eurozone Dec Sentix inventor confidence fell -2.9 to 31.1, weaker than expectations of -0.6 to 33.4.

Eurozone Oct PPI rose +0.4% m/m, stronger than expectations of +0.3% m/m, although Sep was revised downward to +0.5% m/m from the previously reported +0.6% m/m.

The Japan Nov consumer confidence index rose +0.4 to a 4-year high of 44.9. right on expectations.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Oct factory orders (expected -0.4%, Sep +1.4% and +0.7% ex transportation), (2) USDA weekly grain export inspections.

Notable Russell 1000 earnings reports today include: Casey's General Store (consensus $1.39).

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

Equity conferences this week: Cowen Energy & Natural Resources Conference on Mon-Tue, Mizuho Americas Global Investor Conference on Mon-Tue, Raymond James Technology Conference on Mon-Wed, UBS Global Media and Communications Conference on Mon-Wed, Wells Fargo Event Information & Logistics Tech Summit on Mon-Wed, Global Mizuho Investor Conference on Tue, Goldman Sachs U.S. Financial Services Conference on Tue-Wed, Barclays Eat, Sleep, Play Conference on Tue-Wed, Nasdaq Investor Conference on Tue-Wed, NASDAQ Conference on Tue-Wed, Capital One Securities Energy Conference on Tue-Thu, Barclays Technology Conference on Wed, Berenberg Bank European Healthcare Conference on Wed, BIOMEDevice Conference on Wed, Barclays Global Technology, Media and Telecommunications Conference on Wed-Thu, Wells Fargo Pipeline MLP and Energy Symposium on Wed-Thu, Citi Global Health Care Conference on Wed-Thu, th Capital Utah Corporate Access Event Conference on Wed-Thu, Bank of America Merrill Lynch Emerging Technology Conference on Thu.

 

 

 

 

 

 

OVERNIGHT U.S. STOCK MOVERS

Netflix (NFLX -0.41%) was initiated with a recommendation of 'Buy' at Moness, Crespi, Hardt & Co with a 12-month target price of $250.

United Parcel Service (UPS -0.94%) was upgraded to 'Buy' from 'Hold' at Deutsche Bank.

Host Hotels (HST -1.41%) was upgraded to 'Buy' from 'Neutral' at BTIG LLC with a 12-month target price of $22.

Marvell Technology Group Ltd (MRVL -0.72%) was downgraded to 'Hold' from 'Buy' at Benchmark Company LLC.

eBay (EBAY +1.53%) was upgraded to 'Outperform' from 'Market Perform' at BMO Capital Markets with a price target of $45.

American Homes (AMH +0.37%) was upgraded to 'Outperform' from 'In-line' t Evercore ISI with a target price of $25.

Palo Alto Networks (PANW -1.36%) was upgraded to 'Outperform' from 'Market Perform' at William Blair & Co.

Globus Medical (GMED -1.03%) was upgraded to 'Outperform' from 'Market Perform' at Wells Fargo Securities with a price target of $46.

Old Dominion Freight Line (ODFL -1.42%) was downgraded to 'Sell' from 'Hold' at Deutsche Bank with a price target of $101.

Nabors Industries Ltd (NBR +5.30%) rose 2% in after-hours trading after it announced the commencement of a joint venture with Saudi Aramco.

Amgen (AMGN +0.88%) gained +0.2% in after-hours trading after its Repatha drug was approved by the FDA to prevent heart attack and stroke.

Signet Jewelers (SIG -0.57%) lost 1% in after-hours trading after the Consumer Financial Protection Bureau cited alleged violations by Signet under the Truth in Lending Acts related to in-store credit practices, promotions, and payment protection products.

MARKET COMMENTS

Dec S&P 500 E-mini stock futures (ESZ17 +0.62%) this morning are up +16.50 points (+0.62%) at a new record-nearest-futures high. Friday's closes: S&P 500 -0.20%, Dow Jones -0.17%, Nasdaq -0.43%. The S&P 500 on Friday closed lower on political turmoil after former national security adviser Flynn entered a plea agreement with prosecutors and agreed to cooperate in the investigation against the Trump administration. Stocks were also undercut by the -0.5 point decline in the U.S. Nov ISM manufacturing index to 58.2, slightly weaker than expectations of -0.4 to 58.3. Stocks rebounded from their worst levels after Senate Republicans said they had the votes to pass their tax bill.

Mar 10-year T-note prices (ZNH18 -0.24%) this morning are down -8 ticks. Friday's closes: TYH8 +12.00, FVH8 +3.75. Mar 10-year T-notes on Friday shot higher on increased safe-haven demand after an ABC news report erroneously stated that former national security adviser Flynn would testify that President Trump told him to contact Russian officials. T-notes were also boosted by dovish comments from St. Louis Fed President Bullard who said if the Fed stays on the current pace of rate hikes the yield curve will invert and that would be negative for the U.S. economy.

The dollar index (DXY00 +0.33%) this morning is up +0.25 (+0.27%). EUR/USD (^EURUSD) is down -0.0040 (-0.34%) and USD/JPY (^USDJPY) is up +0.72 (+0.64%) at a 2-week high. Friday's closes: Dollar Index -0.162 (-0.17%), EUR/USD -0.0008 (-0.07%), USD/JPY -0.37 (-0.33%). The dollar index on Friday closed lower on the plea agreement by former national security adviser Flynn, which took the Mueller investigation to the highest levels of the White House. The dollar was also undercut by the fall in the 10-year T-note yield, which reduces the dollar's interest rate differentials.

Jan crude oil (CLF18 -1.03%) this morning is down -64 cents (-1.10%) and Jan gasoline (RBF18 -0.88%) is -0.0151 (-0.87%). Friday's closes: Jan WTI crude +0.96 (+1.67%), Jan gasoline +0.0116 (+0.67%). Jan crude oil and gasoline on Friday closed higher on the weaker dollar and on positive carry-over from the action Thursday by OPEC and Russia to extend their crude production cuts until the end of 2018.

Metals prices this morning are mixed with Feb gold (GCG18 -0.53%) -6.5 (-0.51%), Mar silver (SIH18 -0.29%) -0.053 (-0.32%) and Mar copper (HGH18 +0.40%) +0.012 (+0.37%). Friday's closes: Feb gold +5.6 (+0.44%), Mar silver -0.086 (-0.52%), Mar copper +0.0285 (+0.93%). Metals on Friday settled mixed. Metals prices were boosted by a weaker dollar and by the slump in stocks, which boosted safe-haven demand for precious metals. Copper prices were supported by the -5,000 MT decline in LME copper inventories to a 17-3/4 month low, a sign of tighter copper supplies. Silver and copper prices were undercut by the bigger-than-expected decline in the U.S. Nov ISM manufacturing index, which was negative for industrial metals demand.

GLOBAL EVENT CALENDAR12/04/2017
Monday, Dec 4
US 1000 ET Oct factory orders expected -0.4%, Sep +1.4% and +0.7% ex transportation.
1100 ET USDA weekly grain export inspections.
Tuesday, Dec 5
US 0830 ET Oct trade balance expected -$47.4 billion, Sep -$43.5 billion.
0945 ET Revised Nov Markit services PMI expected +0.6 to 55.3, prelim-Nov -0.6 to 54.7.
1000 ET Nov ISM non-manufacturing PMI expected -1.1 to 59.0, Oct +0.3 to 60.1.
U.S. STOCK CALENDAR12/04/2017
NameTickerTimeDescriptionPeriodEstimate
SL Green Realty Corp SLG US 9:00 Investor Conference
Casey's General Stores Inc CASY US Q2 2018 Earnings Release Q2 18 1.391


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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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