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OVERNIGHT MARKETS AND NEWS

Jun E-mini S&Ps (ESM18 +0.29%) this morning are up +0.23% and European stocks are up +0.19% as strength in Chinese factory output bolsters confidence in the global economic outlook. May COMEX copper (HGK18 +1.24%) is up +1.07% at a 1-week high and is lifting mining stocks and raw-material producers after China Feb industrial production rose +7.2% year-to-date, the largest increase in 3-years. Asian stocks settled lower: Japan -0.87%, Hong Kong 0.53%, China -0.57%, Taiwan -0.51%, Australia -0.66%, Singapore -0.40%, South Korea -0.31%, India -0.06%. Asian stocks followed Tuesday's losses in U.S. markets and were also under pressure on concern new Secretary of State Pompeo will advance President Trump's agenda of imposing tariffs.

The dollar index (DXY00 +0.09%) is up +0.11%. EUR/USD (^EURUSD) is down -0.17% on dovish comments from ECB President Draghi who said policy makers need to see further evidence that inflation dynamics are moving in the right direction. USD/JPY (^USDJPY) is down -0.06%.

Jun 10-year T-note prices (ZNM18 unch) are little changed, up +0.5 of a tick.

ECB President Draghi said "we still need to see further evidence that inflation dynamics are moving in the right direction. So monetary policy will remain patient, persistent and prudent."

Eurozone Jan industrial production fell -1.0% m/m, weaker than expectations of -0.5% m/m and the biggest decline in 13 months.

China Feb industrial production rose +7.2% year-to-date, stronger than expectations of +6.2% year-to-date and the fastest pace in 3 years.

Japan Jan core machine orders rose +8.2% m/m and +2.9% y/y, stronger than expectations of +5.2% m/m and -0.7% y/y with the +8.2% m/m gain the largest monthly increase in 2-years.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly MBA mortgage applications (previous +0.3% with purchase sub-index -0.5% and refi sub-index +1.5%), (2) Feb PPI final demand (expected +0.1% m/m and +2.8% y/y, Jan +0.4% m/m and +2.7% y/y) and Feb PPI ex food & energy (expected +0.2% m/m and +2.6% y/y, Jan +0.4% m/m and +2.2% y/y), (3) Feb retail sales (expected +0.3% and +0.4% ex autos, Jan -0.3% and unch ex autos), (4) Jan business inventories (expected +0.6%, Dec +0.4%), (5) EIA weekly Petroleum Status Report.

Notable Russell 1000 earnings reports today include: Williams-Sonoma (consensus $4.20), Signet Jewelers ($1.62).

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

Equity conferences this week: Cowen & Co. Health Care Conference on Mon-Wed, Enterprise Connect on Mon-Thu, 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

Caleres (CAL +2.43%) jumped over 10% in after-hours trading after it reported Q4 net sales of $702.5 million, better than consensus of $695.8 million.

Ford Motor (F -0.28%) was upgraded to 'Overweight' from 'Underweight' at Morgan Stanley.

RH (RH -0.67%) was upgraded to 'Outperform' from 'Market Perform' at Raymond James with a price target of $95.

Sunoco (SUN unch) was downgraded to 'Sell' from 'Neutral' at Goldman Sachs.

B&G Foods (BGS +1.52%) authorized a $50 million stock buyback program.

Tyler Technologies (TYL +0.42%) was rated a new 'Outperform' at Baird with a price target of $240.

Lockheed Martin (LMT +0.11%) received a $1.46 billion contract from the Department of Defense for modification of 145 F-35 Lightning II air systems.

Golden Entertainment (GDEN +1.83%) was rated a new 'Outperform' at Telsey Advisory Group with A price target OF $32.

MongoDB (MDB -4.15%) rose 4% in after-hours trading after it reported Q4 adjusted gross margin of 73%, higher than consensus of 71.6%

Patterson Cos (PDCO -1.28%) authorized a new $500 million share buyback program.

First Hawaiian (FHB -0.59%) was upgraded to 'Outperform' from 'Market Perform' at Keefe, Bruyette & Woods with a price target of $34.

Heritage Commerce (HTBK +0.84%) was upgraded to 'Outperform' from 'Market Perform' at Keefe, Bruyette & Woods with a price target of $19.

RadNet (RDNT +2.02%) was rated a 'Strong Buy' at Raymond James with a price target of $15.

Aratana Therapeutics (PETX +0.23%) gained almost 2% in after-hours trading after it reported Q4 revenue of $10.5 million, better than consensus of $6.8 million.

MARKET COMMENTS

Jun S&P 500 E-mini stock futures (ESM18 +0.29%) this morning are up +6.50 points (+0.23%). Tuesday's closes: S&P 500 -0.64%, Dow Jones -0.68%, Nasdaq -1.19%. The S&P 500 on Tuesday posted a 1-1/4 month high but then fell back and closed lower on political concerns after President Trump fired Secretary of State Tillerson. There was also weakness in energy stocks as crude oil prices tumbled -1.06%. Stocks found some support on the U.S Feb core CPI report of +1.8% y/y, right on expectations and below the Fed's 2.0% target, which eased concern the Fed may need to speed up the pace of interest rate hikes.

Jun 10-year T-note prices (ZNM18 unch) this morning are up +0.5 of a tick. Tuesday's closes: TYM8 +4.00, FVM8 +1.25. Jun 10-year T-notes on Tuesday rallied to a 1-week high and settled higher on political concerns after Secretary of State Tillerson was fired and on reduced inflation expectations after the 10-year T-note breakeven inflation rate fell to a 3-week low.

The dollar index (DXY00 +0.09%) this morning is up +0.102 (+0.11%). EUR/USD (^EURUSD) is down -0.0021 (-0.17%) and USD/JPY (^USDJPY) is down -0.06 (-0.06%). Tuesday's closes: Dollar Index -0.231 (-0.26%), EUR/USD +0.0056 (+0.45%), USD/JPY +0.16 (+0.15%). The dollar index on Tuesday closed lower on U.S. political and trade uncertainty and on the decline in the 10-year T-note yield to a 1-week low, which undercut the dollar's interest rate differentials.

Apr crude oil (CLJ18 +0.89%) this morning is up +39 cents (+0.64%) and Apr gasoline (RBJ18 +0.98%) is +0.0142 (+0.75%). Tuesday's closes: Apr WTI crude -0.65 (-1.06%), Apr gasoline -0.0077 (-0.41%). Apr crude oil and gasoline on Tuesday closed lower with Apr gasoline at a 1-week low. Crude oil prices were undercut by the EIA's hike in its March U.S. shale-oil output estimate to 6.82 million bpd from 6.76 million bpd and their projection for U.S. April shale-oil production to increase +131,000 bpd to 6.95 million bpd. Crude oil prices were also undercut by expectations for weekly EIA crude oil inventories on Wednesday to climb +2.5 million bbl, the third consecutive weekly gain.

Metals prices this morning are mixed with Apr gold (GCJ18 -0.09%) -1.2 (-0.09%), May silver (SIK18 -0.19%) -0.037 (-0.22%), and May copper +0.034 +1.07%) at a 1-week high. Tuesday's closes: Apr gold +6.3 (+0.48%), May silver +0.091 (+0.55%), May copper (HGK18 +1.24%) +0.0140 (+0.45%). Metals on Tuesday closed higher on a weaker dollar and on political uncertainty that fueled safe-haven demand for precious metals after President Trump fired Secretary of State Tillerson.



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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.

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