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OVERNIGHT MARKETS AND NEWS

Mar E-mini S&Ps (ESH18 -0.45%) this morning are down -0.51% after two days of gains. Losses in energy stocks are leading the overall market lower with Mar WTI crude oil (CLH18 -0.39%) down -0.54% after the International Energy Agency (IEA) warned that increased U.S. shale-oil production may counter OPEC crude production cuts. European stocks are down -0.67% as exporter stocks retreated due to strength in EUR/USD, which undercuts their earnings prospects. Asian stocks settled mostly higher: Japan -0.65%, Hong Kong +1.29%, China +0.98%, Taiwan and India closed for holiday, Australia +0.60%, Singapore +0.89%, South Korea +0.89%. Most Asian bourses moved higher today on carry-over support from gains in U.S. stocks Monday, although Japan's Nikkei Stock Index erased its gains and closed lower after USD/JPY (^USDJPY) sank to a 5-month low and undercut Japanese exporters.

The dollar index (DXY00 -0.58%) is down -0.51. EUR/USD (^EURUSD) is up +0.41. USD/JPY (^USDJPY) is down -0.97% at a 5-month low.

Mar 10-year T-note prices (ZNH18 +0.16%) are up +5.5 ticks.

Japan Jan PPI of +0.3% m/m and +2.7% y/y was slightly weaker than expectations of +0.3% m/m and +2.8% y/y with the +2.7% y/y gain the smallest year-on-year increase in 6-months.

UK Jan CPI of -0.5% m/m and +3.0 y/y was stronger than expectations of -0.6% m/m and +2.9% y/y. Jan core CPI rose +2.7% y/y, stronger than expectations of +2.6% y/y.

The UK Dec house price index rose +5.2% y/y, stronger than expectations of +4.9% y/y.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Cleveland Fed President Loretta Mester (voter) discusses monetary policy and the economic outlook at the Dayton Area Chamber of Commerce Government Affairs breakfast.

Notable S&P 500 earnings reports today include: MetLife (consensus $0.87), Martin Marietta Materials (1.48), PepsiCo (1.31), HCP (0.47), Western Union (0.45), Occidental Petroleum (0.40), Under Armour (0.00).

U.S. IPO's scheduled to price today: Biofrontera (BFRA).

Equity conferences this week: Credit Suisse Energy Summit on Mon-Wed, Stifel Transportation and Logistics Conference on Tue, Credit Suisse Financial Services Forum on Tue-Wed, Goldman Sachs Technology and Internet Conference on Tue-Thu, ACI European Biopolymer Summit on Wed, Capital Link Cyprus Shipping Forum on Wed, Bank of America Merrill Lynch Insurance Conference on Wed-Thu, LEERINK Partners Global Healthcare Conference on Wed-Thu.

OVERNIGHT U.S. STOCK MOVERS

Molina Healthcare (MOH -0.06%) dropped 5% in after-hours trading after it reported an unexpected Q4 adjusted loss per share of -$4.52, much weaker than consensus of Q4 adjusted EPS of 13 cents.

Avexis (AVXS +2.15%) was rated a new 'Buy' at Mizuho Securities USA with a 12-month target price of $147.

NetApp (NTAP +2.78%) gained nearly 2% in pre-market trading after it was upgraded to 'Buy' from 'Neutral' at Bank of America Merrill Lynch with a price target of $74.

Cboe (CBOE +3.33%) was upgraded to 'Buy' from 'Hold' at Deutsche Bank with a price target of $127.

Qualys (QLYS +4.51%) gained 3% in after-hours trading after it reported Q1 adjusted EPS of 34 cents, above consensus of 28 cents.

Spark Therapeutics (ONCE +2.91%) was rated a new 'Buy' at Mizuho Securities USA with a 12-month target price of $79.

Varonis Systems (VRNS +2.86%) slid over 3% in after-hours trading after it said it sees Q1 adjusted loss per share of -31 cents to -32 cents, a wider loss than consensus of -22 cents.

RingCentral (RNG +2.50%) climbed nearly 10% in after-hours trading after it said it sees Q1 adjusted EPS of 11 cents to 13 cents, higher than consensus of 5 cents.

Genpact Ltd (G +1.10%) rose 4% in after-hours trading after it reported Q4 revenue of $734.4 million, better than consensus of $723.0 million, and then said its sees full-year revenue of $2.93 billion to $3.0 billion, above consensus of $2.91 billion.

Vipshop Holdings (VIPS +6.84%) jumped 10% in after-hours trading after it said it sees Q1 revenue of 19.10 billion yuan to 19.90 billion yuan, the midpoint above consensus of 19.14 billion yuan.

Chegg (CHGG +2.70%) moved up over 4% in after-hours trading after it said it sees Q1 revenue of $73 million to $75 million, better than consensus of $71.5 million.

Reata Pharmaceuticals (RETA -1.68%) jumped almost 9% in after-hours trading after it said a long-term follow up on patients with pulmonary arterial hypertension treated with its Bardoxolone showed kidney function improvements durable for two years, not associated with adverse outcomes.

Amkor Technology (AMKR +2.48%) gained nearly 4% in after-hours trading after it reported Q4 EPS of 42 cents, well above consensus of 19 cents.

Veeco Instruments (VECO unch) rallied over 7% in after-hours trading after it reported Q4 adjusted EPS of 19 cents, higher than consensus of 9 cents.

Helios & Matheson Analytics (HMNY +3.36%) tumbled over 15% in after-hours trading after it said it had commenced an underwritten public offering to issue and sell $105 million of shares of its common stock and warrants to purchase shares of its common stock.

Kadmon Holdings (KDMN +1.04%) rallied 13% in after-hours trading after it said a Phase 2 clinical trial of its KDO25 for treatment of patients with idiopathic pulmonary fibrosis showed positive topline results with no drug-related serious adverse events.

MARKET COMMENTS

Mar S&P 500 E-mini stock futures (ESH18 -0.45%) this morning are down -13.50 points (-0.51%). Monday's closes: S&P 500 +1.39%, Dow Jones +1.70%, Nasdaq +1.73%. The S&P 500 on Monday closed higher on carry-over support from a rally in Chinese stocks on signs of strong credit growth in China which should help boost its economic growth after China Jan new yuan loans increased by a record 2.90 trillion yuan, stronger than expectations of 2.05 trillion yuan. There was also strength in energy stocks and commodity producers after crude oil prices rose +0.15% and copper prices rose +1.75%. Stocks were undercut by an increase in the 10-year T-note yield to a new 4-year high of 2.89%.

Mar 10-year T-note prices (ZNH18 +0.16%) this morning are up +5.5 ticks. Monday's closes: TYH8 -9.00, FVH8 -6.50. Mar 10-year T-notes on Monday closed lower on ongoing concerns about inflation and the much larger Treasury budget deficit. T-note prices were also undercut by reduced safe-haven demand with the rally in stocks.

The dollar index (DXY00 -0.58%) this morning is down -0.463 (-0.51%). EUR/USD (^EURUSD) is up +0.0051 (+0.41%) and USD/JPY (^USDJPY) is down -1.05 (-0.97%) at a 5-month low. Monday's closes: Dollar Index -0.234 (-0.26%), EUR/USD +0.0040 (+0.33%), USD/JPY -0.14 (-0.13%). The dollar index on Monday closed lower on concern that President Trump's 2019 budget proposal lacks details on how it will be paid for and will boost the U.S. budget deficit. The dollar was also undercut by the statement from Moody's Investor Services late Friday that said the credit rating of the U.S. is likely to face downward pressure in coming years due to the country's soaring debt load.

Mar crude oil (CLH18 -0.39%) this morning is down -32 cents (-0.54%) and Mar gasoline (RBH18 -0.57%) is -0.0119 (-0.71%). Monday's closes: Mar WTI crude +0.09 (+0.15%), Mar gasoline -0.0217 (-1.28%). Mar crude oil and gasoline on Monday settled mixed. Crude oil prices were boosted by a weaker dollar and by comments from OPEC Secretary-General Barkindo who said compliance among producers crude output cuts in January will surpass the record level of 129% from December. Gasoline prices closed lower after the crack spread tumbled to an 11-1/2 month low, which reduces the incentive for refiners to purchase crude oil to refine into gasoline.

Metals prices this morning are higher with Apr gold (GCJ18 +0.37%) +3.5 (+0.26%), Mar silver (SIH18 +0.18%) +0.005 (+0.03%), and Mar copper (HGH18 +1.60%) +0.048 (+1.54%). Monday's closes: Apr gold +10.7 (+0.81%), Mar silver +0.431 (+2.67%), Mar copper +0.0530 (+1.75%). Metals on Monday closed higher on a weaker dollar and on increased demand for precious metals as an alternative asset on concern President Trump's spending plans will boost the U.S. budget deficit and debase the dollar.



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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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