OVERNIGHT MARKETS AND NEWS
Jun E-mini S&Ps (ESM17 +1.10%) this morning are up by +1.18% to a 5-week high and European stocks soared 3.88% to a 1-1/2 year high as global equity markets rallied sharply and EUR/USD (^EURUSD) jumped +1.21% to a 5-1/2 month high on optimism that pro-EU candidate Macron will become France's next president. Jun COMEX gold (GCM17 -1.28%) tumbled -1.26% to a 1-1/2 week low and world government bond yields spiked higher after Sunday's first-round of presidential elections in France showed anti-EU candidate Le Pen will face a winner-take-all run-off election against highly favored pro-EU candidate Macron on May 7. The latest Ipsos survey late Sunday showed that Macron would win the May 7 French presidential election by 62% to 38% for Le Pen. U.S. stocks received additional support after President Trump tweeted Saturday that he plans to announce a "big" tax reform and reduction plan on Wednesday. European stocks found additional support after the German Apr IFO business confidence climbed to a 5-3/4 year high and after the Bundesbank said the German economy is likely "to have gained significantly gained momentum in Q1." Asian stocks settled mostly higher: Japan +1.37%, Hong Kong +0.41%, China -1.37%, Taiwan +0.01%, Australia +0.30%, Singapore +0.13%, South Korea +0.68%, India +0.99%. Weakness in the yen propelled Japanese stocks as USD/JPY rose to a 1-1/2 week high and fueled a rally in exporters as the Nikkei Stock Index rose to a 2-week high. China's Shanghai Composite tumbled to a 3-month low on concerns Chinese authorities will take measures to curb leveraged trading after China's banking regulator late Friday said it will strengthen a crackdown on irregularities in the financial sector.
Jun 10-year T-note prices (ZNM17 -0.47%) are down -19 ticks at a 1-1/2 week low.
In its monthly report, the Bundesbank said, "the German economy is likely to have significantly gained momentum in Q1 of 2017" and that sentiment in manufacturing is "extraordinary optimistic."
The German Apr IFO business climate rose +0.5 to 112.9, stronger than expectations of +0.1 to 112.4 and a 5-3/4 year high.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) Mar Chicago Fed national activity index (expected +0.16 to 0.50, Feb +0.36 to 0.34), (2) Apr Dallas Fed manufacturing activity index (expected +0.1 to 17.0, Mar -7.6 to 16.9), (3) Minneapolis Fed President Neel Kashkari speaks at an inventing conference at UCLA University, (4) USDA weekly grain export inspections, (5) USDA Mar Cold Storage, (6) USDA crop conditions and planting progress.
Notable S&P 500 earnings reports today include: Halliburton (consensus $0.03), Range Resources (0.18), Newmont Mining (0.23), Hasbro (0.38), UDR (0.45), Zions Bancorporation (0.54), Crown Castle International (1.10), Express Scripts Holding (1.32), Illinois Tool Works (1.45), Kimberly-Clark (2.52), Ameriprise Financial (2.52), Whirlpool (2.65).
U.S. IPO's scheduled to price today: none.
Equity conferences: Capital Link's Closed-End Funds & Global ETFs Forum on Thu, Burkenroad Reports l Investment Conference on Fri.
OVERNIGHT U.S. STOCK MOVERS
Travelers (TRV +0.19%) was upgraded to 'Buy' from 'Hold' at Argus with a price target of $132.
Knight Transportation (KNX +1.64%) was upgraded to 'Buy' from 'Neutral' at UBS with a price target of $43.
Stanley Black & Decker (SWK +3.65%) was upgraded to 'Overweight' from 'Neutral' at JP Morgan Chase with a price target of $152.
U.S. Steel (X -0.29%) was upgraded to 'Neutral' from 'Underperform' at Macquarie.
Walt Disney (DIS -0.30%) was downgraded to 'Hold' from 'Buy' at Loop Capital Markets.
Groupon (GRPN -0.51%) lost nearly 1% in pre-market trading after it was downgraded to 'Underweight' from 'Equal Weight' at Morgan Stanley who cited "lackluster" advertiser demand in North America.
Park National (PRK +0.27%) reported Q1 EPS of $1.31, below consensus of $1.33.
Community Trust Bancorp (CTBI +1.04%) was upgraded to 'Neutral' from 'Underperform' at Hilliard Lyons
XOMA Corp (XOMA +3.48%) sank 11% in after-hours trading after Novo-Nordisk said it was terminating its exclusive licensing agreement with XOMA due to strategic and business reasons.
Nexvet Biopharma (NVET unch) was downgraded to 'Neutral' from 'Outperform' at Credit Suisse.
EyeGate Pharmaceuticals (EYEG -1.42%) dropped 6% in after-hours trading after it filed an S-1 to sell up to $11.5 million of shares.
Jun E-mini S&Ps (ESM17 +1.10%) this morning are up sharply by +27.75 points (+1.18%) at a 5-week high. Friday's closes: S&P 500 -0.30%, Dow Jones -0.15%, Nasdaq -0.03%. The S&P 500 on Friday closed lower on the unexpected decline in the Apr Markit manufacturing PMI of -0.5 to a 7-month low of 52.8 (weaker than expectations of +0.5 to 53.8) and on weakness in energy producer stocks as crude oil slumped to a 3-week low. There was also long liquidation pressure ahead of Sunday's French presidential election. Stocks found support on the +4.4% rise in U.S. Mar existing home sales to a 10-year high of 5.71 million, stronger than expectations of -1.9% to 5.60 million.
Jun 10-year T-notes (ZNM17 -0.47%) this morning are down -19 ticks at a 1-1/2 week low. Friday's closes: TYM7 +3.50, FVM7 +2.25. Jun 10-year T-notes on Friday closed higher on increased safe-haven demand ahead of the French election. In addition, inflation expectations fell after the 10-year T-note breakeven rate tumbled to a 5-1/2 month low.
The dollar index (DXY00 -0.91%) this morning is down -0,96 (-0.96%) at a 5-1/4 month low. EUR/USD (^EURUSD) is up +0.0130 (+1.21%) at a 5-1/2 month high and USD/JPY (^USDJPY) is up +1.10 (+1.01%) at a 1-1/2 week high. Friday's closes: Dollar index +0.199 (+0.20%), EUR/USD +0.0011 (+0.10%), USD/JPY -0.23 (-0.21%). The dollar index on Friday closed higher on hawkish comments from Fed Vice Chair Fischer who said that two more rate hikes this year seems about right and on the unexpected increase in U.S. Mar existing home sales to a 10-year high.
Jun WTI crude oil prices (CLM17 +0.62%) this morning are up +44 cents (+0.89%) and Jun gasoline (RBM17 +0.13%) is +0.0052 (+0.32%). Friday's closes: Jun crude -1.09 (-2.15%), Jun gasoline -0.0260 (-1.56%). Jun crude oil and gasoline on Friday fell to 3-week lows and closed lower on a stronger dollar and on concern about increased U.S. crude production after Baker Hughes reported that U.S. active oil rigs rose +5 to a 2-year high of 688 rigs.
GLOBAL EVENT CALENDAR04/24/2017
U.S. STOCK CALENDAR04/24/2017