OVERNIGHT MARKETS AND NEWS

June E-mini S&Ps (ESM16 -0.45%) are down -7.50 points (-0.37%) this morning due to a sharp sell-off in European and Japanese stocks. The Euro Stoxx 50 index this morning is down -2.04%. The Nikkei index today fell by -3.55% on a disappointing Tankan report, which indicated weak Japanese business confidence. The markets were unable to get much support from the much stronger-than-expected Chinese March PMI reports. The Shanghai Composite index today rose by only +0.19%. Other Asian stock markets today closed lower: Hong Kong -1.34%, Taiwan -1.00%, Australia -1.64%, Singapore -0.79%, South Korea -1.42%, India -0.28%, Turkey -0.59%.

The dollar index (DXY00 -0.17%) this morning is slightly lower by -0.05 points (-0.05%). EUR/USD (^EURUSD) is up +0.0031 (+0.27%) and USD/JPY (^USDJPY) is down -0.39 (-0.35%) with the yen seeing some safe-haven demand with the sharp sell-off in the Japanese stock market. June 10-year T-note prices (ZNM16 +0.02%) this morning are down 1.5 ticks.

Commodity prices this morning are down by -0.34% on average. May WTI crude oil (CLK16 -2.63%) is sharply lower by -0.81 (-2.11%) after a key Saudi official said that Saudi Arabia will only freeze production at the upcoming OPEC/non-OPEC April 17 meeting if all other major producers including Iran freeze production as well. May gasoline (RBK16 -1.65%) is down -0.0196 (-1.35%). May natural gas (NGK16 +1.58%) is up +0.014 (+0.71%). Metals prices this morning are mixed with April gold (GCJ16 -0.48%) down -1.7 (-0.14%), May silver (SIK16 -0.90%) down -0.054 (-0.35%), and May copper (HGK16 +0.02%) up +.003 (+0.11%).

Grains this morning are mixed: May corn -2.25 (-0.63%), May soybeans +2.25 (+0.25%), and May wheat -2.50 (-0.53%). Softs this morning are lower: May sugar -0.05 (-0.33%), May coffee -0.90 (-0.71%), May cocoa -6 (-0.20%), and May cotton -0.08 (-0.14%).

Saudi Arabia will only freeze production if Iran and other major producers freeze their production as well, according to Saudi Arabia's deputy crown prince Mohammed bin Salman. Iran has already repeatedly said that it will not freeze production until its production reaches pre-sanction levels.

Japan's Tankan Q1 large manufacturer index fell by -6 points to 6, which was weaker than market expectations of -4 to 8. The Q1 Tankan large manufacturer outlook index fell by -4 points to 3, which was weaker than market expectations of unchanged. The Tankan Q1 non-manufacturer index fell by -3 points to 22, which was weaker than market expectations of -1 to 24. The Tankan Q1 large non-manufacturer outlook index fell by -1 point to 17, which was weaker than market expectations for a +2 point increase to 20.

The Chinese March manufacturing PMI report from the National Bureau of Statistics rose by +1.2 points to 50.2, which was stronger than market expectations for a +0.4 point increase to 49.4. Separately, China's March Caixin manufacturing PMI index showed an even stronger increase and rose by +1.7 points to 49.7, which was stronger than market expectations of +0.3 to 48.3. China's non-manufacturing PMI from the National Bureau of Statistics rose by +1.1 points to 53.8.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Mar non-farm payrolls (expected +205,000, Feb +242,000) and Mar unemployment rate (expected unch at 4.9%, Feb unch at 4.9%), (2) Mar avg hourly earnings (expected +0.2% m/m and +2.2% y/y, Feb -0.1% m/m and +2.2% y/y), (3) revised-Mar Markit manufacturing PMI (expected +0.1 to 51.5, preliminary Mar +0.1 to 51.4), (4) Mar ISM manufacturing PMI (expected +1.3 to 50.8, Feb +1.3 to 49.5), (5) Feb construction spending (expected +0.1%, Jan +1.5%), (6) University of Michigan final-March U.S. consumer sentiment index (expected +0.5 to 90.5, preliminary-Mar -1.7 to 90.0), (7) Cleveland Fed President Loretta Mester's remarks on the economic outlook and monetary policy to the New York Association for Business Economics, and (8) Mar total vehicle sales (expected 17.50 million, Feb 17.43 million).

There is 1 of the Russell 1000 companies that reports earnings today: Marvell Technology (consensus $0.10).

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

Equity conferences today: none.

June E-mini S&Ps are down -7.50 points (-0.37%) this morning due to a sharp sell-off in European and Japanese stocks. Thursday's closes: S&P 500 -0.20%, Dow Jones -0.18%, Nasdaq +0.01%. The S&P 500 on Thursday closed little changed ahead of Friday's payroll report. Stocks found support from the sharp +6.0 point rise in the March Chicago PMI to 47.6 and from continued support from Yellen's dovish comments on Tuesday. Stocks were undercut by Moody's cut in its credit rating outlook for China to negative from stable on doubts about China's reform progress and risks to the government's creditworthiness.

OVERNIGHT U.S. STOCK MOVERS

• Tesla (TSLA +1.27%) yesterday evening unveiled and started taking orders on its Model 3 electric car, designed for the mass market with a price point of $35,000. Interest and orders were reportedly strong with more than 130,000 of reservations with a $1000 deposit.
• Chipotle (CMG +1.03%) was downgraded to neutral from buy by Goldman with a price target lower to $500 from $550
• Urban Outfitters (URBN +0.15%) rallied 2% in after-hours trading after reoprting that comparable sales in fiscal Q1 rose in the low-single digits.
• Box Inc (BOX -2.08%) was up +0.6% in after-hours trading after being rated as a new buy at Drexel Hamilton.
• Marvel Technology (MRVL -0.10%) fell by -5% in after-hours trading after saying that it is unable to file its 10k in a timely manner and that it sees a net loss for FY-2016 due to settlement and restructuring charges.
• Marriott (MAR -0.52%) fell -4% in after-hours trading at Anbang said it pulled its $14 billion offer for Starwood (HOT -0.27%), thus clearing the way for Marriott to acquire Starwood.
• SunEdison (SUNE -8.47%) fell by another 9% in after-hours trading after disclosing that it has received a subpeona from the Dept of Justice covering issues that are already being investigated by the SEC.
• Archer Daniels (ADM -0.85%) announced an agreement to sell its sole sugar ethanol plant in Brazil.

MARKET COMMENTS

June 10-year T-note prices this morning are down -1.5 ticks. Thursday's closes: TYM6 +12, FVM6 +7. Jun 10-year T-notes on Thursday closed moderately higher on continued support from Yellen's dovish comments on Tuesday, the conclusion of this week's T-note auction package, and technical buying with a new 1-month high in June 10-year T-notes.

The dollar index this morning is slightly lower by -0.05 points (-0.05%). EUR/USD is up +0.0031 (+0.27%) and USD/JPY is down -0.39 (-0.35%) with the yen seeing some safe-haven demand with the sharp sell-off in the Japanese stock market. Thursday's closes: Dollar Index -0.255 (-0.27%), EUR/USD +0.0047 (+0.42%), USD/JPY -0.25 (-0.22%). The dollar index on Thursday closed mildly lower on continued negativity over Yellen's dovish comments on Tuesday and on technical selling with the decline in the dollar index to a new 5-1/2 month low.

May WTI crude oil is sharply lower by -0.81 (-2.11%) after a key Saudi official said that Saudi Arabia will only freeze production at the upcoming OPEC/non-OPEC April 17 meeting if all other major producers including Iran freeze production as well. May gasoline this morning is down -0.0196 (-1.35%). Thursday's closes: CLK6 +0.02 (+0.05%), RBK6 -0.0194 (-1.32%). May crude and gasoline on Thursday closed mixed. Crude oil was undercut by Wed's EIA report showing a +2.2 mln bbl rise in U.S. crude oil inventories to a new record high (even though that was less than market expectations of +3.0 mln bbls) and by reports of increased OPEC production in March. Crude oil prices were boosted by the lower dollar and by carry-over support from Wednesday's weekly EIA report showing a -0.2% decline in U.S. crude oil production to a new 1-1/3 year low of 9.022 million bpd.

(Click on image to enlarge)