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OVERNIGHT MARKETS AND NEWS

Jun E-mini S&Ps (ESM18 +0.27%) this morning are up +0.33% at a 1-1/4 month high on positive carry-over from last Friday's stronger-than-expected U.S. Fed jobs report. European stocks are up +0.52% at a 1-1/2 week high on gains in U.S. stocks along with upbeat comments from ECB Executive Board member Coeure who said Eurozone growth "is strong and well distributed, and now reaches all regions and sectors." Asian stocks settled higher: Japan +1.65%, Hong Kong +1.93%, China +0.59%, Taiwan+1.26%, Australia +0.55%, Singapore +1.57%, South Korea +0.95%, India +1.83%. China's Shanghai Composite rose to a 2-week high and Japan's Nikkei Stock Index posted a 1-1/2 week high as Asian markets rallied on optimism strength in the U.S. economy will benefit Asian exporters as last Friday's jobs report showed the U.S. labor market continued to strengthen without faster wage inflation.

The dollar index (DXY00 +0.08%) is down -0.01%. EUR/USD (^EURUSD) is up +0.01%. USD/JPY (^USDJPY) is down -0.27%.

Jun 10-year T-note prices (ZNM18 -0.04%) are down -2.5 ticks.

ECB Executive Board member Coeure said Eurozone growth "is strong and well distributed, and now reaches all regions and sectors," but is still too dependent on monetary policy. He added "inflation is not yet where we want it" and interest rates "will remain low long after the end of our asset purchases."

The Japan Q1 BSI all-industry business conditions fell -2.9 to 3.3. The Q1 BSI large manufacturing business conditions fell -6.8 to 2.9l.

The Japan Feb machine tool orders rose +39.5% y/y, the fifteenth straight month orders have increased.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) USDA weekly grain export inspections, (2) Treasury auctions $28 billion of 3-year T-notes and $21 billion of 10-year T-notes, (3) Feb monthly budget statement expected -$216.0 billion, Jan +$49.2 billion.

Notable Russell 1000 earnings reports today include: none.

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

Equity conferences this week: Capital Link International Shipping Offshore Forum on Mon, American College of Cardiology Scientific Session on Mon, Cowen & Co. Health Care Conference on Mon-Wed, Enterprise Connect on Mon-Thu, Evercore ISI–Energy Power Summit on Tue, Gabelli & Company Specialty Chemicals Conference on Tue, Bank of America Merrill Lynch Consumer & Retail Technology Conference on Tue-Wed, Barclays Emerging Payments Forum on Tue-Wed, SpeedNews Aviation Industry Suppliers Conference on Tue-Wed, Barclays Global Healthcare Conference on Tue-Thu, JP Morgan Aviation, Transportation & Industrials Conference on Tue-Thu, Goldman Sachs Chemical Intensity Day on Wed, Susquehanna Technology Conference on Wed.

 

OVERNIGHT U.S. STOCK MOVERS

E*TRADE Financial (ETFC +3.75%) was upgraded to 'Strong Buy' from 'Outperform' at Raymond James with a price target of $74.

Archer-Daniels-Midland (ADM +0.02%) was upgraded to 'Buy' from 'Neutral' at Goldman Sachs with a price target of $50.

Northrup Grumman (NOC +0.95%) was upgraded to 'Buy' from 'Neutral' at Citigroup with a price target of $405.

Apollo Global Management LLC (APO +1.67%) was upgraded to 'Buy' from 'Neutral' at Citigroup with a price target of $40.

Time Warner (TWX +0.50%) was upgraded to 'Buy' from 'Neutral' at UBS.

Deckers Outdoor (DECK +2.28%) was downgraded to 'Hold' from 'Buy' at Pivotal Research Group LLC.

Newmont Mining (NEM +0.13%) was downgraded to 'Underperform' from 'Sector Perform' at RBC Capital Markets.

SVB Financial Group (SIVB +2.10%) will replace Patterson Cos (PDCO +1.48%) in the S&P 500 prior to the open of trading on Monday, March 19.

Take-Two Interactive (TTWO +2.67%) will replace Signet Jewelers (SIG +2.17%) in the S&P 500 prior to the open of trading on Monday, March 19.

Nektar Therapeutics ({=NKTR will replace Chesapeake Energy (CHK +4.38%) in the S&P 500 prior to the open of trading on Monday, March 19.

The WSJ reports that Intel (INTC +2.86%) in considering a bid for Broadcom Ltd (AVGO +2.77%) .

Dun & Bradstreet (DNB +0.95%) President and COO Joshua L. Peirez resigned effective March 15, 2018.

C.H. Robinson Worldwide (CHRW +2.39%) was upgraded to 'Buy' from 'Hold' at Edward Jones.

According to Reuters, General Electric (GE +2.89%) is exploring the sale of its electrical engineering business.

MARKET COMMENTS

Jun S&P 500 E-mini stock futures (ESM18 +0.27%) this morning are up +9.25 points (+0.33%) at a 1-1/4 month high. Friday's closes: S&P 500 +1.74%, Dow Jones +1.77%, Nasdaq +1.93%. The S&P 500 on Friday rallied to a 1-1/2 week high and closed sharply higher on reduced geopolitical concerns after President Trump agreed to a summit with North Korean leader Kim Jong Un and on the +313,000 increase in U.S. Feb non-farm payrolls, stronger than expectations of +205,000 and the biggest increase in 1-1/2 years. Reduced inflation concerns also gave stocks a lift after U.S. Feb average hourly earnings rose +0.1% m/m and +2.6% y/y, weaker than expectations of +0.2% m/m and +2.8% y/y.

Jun 10-year T-note prices (ZNM18 -0.04%) this morning are down -2.5 ticks. Friday's closes: TYM8 -4.50, FVM8 -2.50. Jun 10-year T-notes on Friday closed lower and the 10-year T-note yield rose to a 1-week high on the stronger-than-expected +313,000 increase in U.S. Feb non-farm payrolls, the biggest increase in 1-1/2 years, which is hawkish for Fed policy. The sharp rally in the S&P 500 to a 1-1/2 week high was also negative for T-note prices. Losses were contained after U.S. Feb average hourly earnings rose less than expected.

The dollar index (DXY00 +0.08%) this morning is down -0.009 (-0.01%). EUR/USD (^EURUSD) is up +0.0001 (+0.01%) and USD/JPY (^USDJPY) is down -0.29 (-0.27%). Friday's closes: Dollar Index -0.086 (-0.10%), EUR/USD -0.0005 (-0.04%), USD/JPY +0.59 (+0.56%). The dollar index on Friday fell back from a 1-week high and closed lower on the smaller-than-expected increase in U.S. Feb hourly earnings, which is dovish for Fed policy. The dollar also fell on dovish comments from Chicago Fed President Evans who said he would prefer to wait for inflation to pick up before raising interest rates again.

Apr crude oil (CLJ18 -0.37%) this morning is down -39 cents (-0.63%) and Apr gasoline (RBJ18 -0.70%) is -0.0161 (-0.85%). Friday's closes: Apr WTI crude +1.92 (+3.19%), Apr gasoline +0.0366 (+1.96%). Apr crude oil and gasoline on Friday closed higher due to a weaker dollar and the rally in the S&P 500 to a 1-1/2 week high, which bolsters confidence in the economic outlook and energy demand. Crude prices also found support on comments from Saudi Arabian Energy Minister Khalid Al-Falih who said even if American shale-oil output grows by 1 million bpd this year, OPEC "will do what's needed" to preserve oil market stability.

Metals prices this morning are lower with Apr gold (GCJ18 -0.56%) -7.5 (-0.57%), May silver (SIK18 -0.86%) -0.143 (-0.86%)), and May copper (HGK18 -0.75%) -0.020 (-0.64%). Friday's closes: Apr gold +2.3 (+0.17%), May silver +0.108 (+0.65%), May copper +0.0570 (+1.85%). Metals on Friday closed higher due to a weaker dollar and a lack of wage pressures that may prompt the Fed to delay further interest rate hikes after U.S. Feb average hourly earnings rose less than expected.



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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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