OVERNIGHT MARKETS AND NEWS
Mar E-mini S&Ps (ESH18 +0.29%) this morning are up +0.35% and European stocks are up +0.42% on optimism in the global economy. GBP/USD moved higher, and European stocks garnered support on strength in the British economy after Q4 UK GDP expanded faster than expected. The markets will scour a keynote address by President Trump at the World Economic Forum in Davos later this morning for clues to U.S. trade policy after the Trump administration ramped up protectionist rhetoric earlier this week. Asian stocks settled mixed: Japan -0.16%, Hong Kong +1.53%, China +0.28%, Taiwan -0.17%, Australia and India closed for holiday, Singapore -0.15%, South Korea +0.39%. China's Shanghai Composite rose to a new 2-year high as a rally in bank stocks led the overall market higher on earnings optimism. Japan's Nikkei Stock Index fell to a 2-week low, led by weakness in exporters, after USD/JPY tumbled to a 4-1/2 month low Thursday, which reduces the earnings prospects for exporters.
The dollar index (DXY00 -0.48%) is down -0.50%. EUR/USD (^EURUSD) is up +0.32% on hawkish comment from ECB Executive Board member Coeure who said, "we'll have to focus more on upside risks" going forward. USD/JPY (^USDJPY) is down -0.07%.
Mar 10-year T-note prices (ZNH18 -0.18%) are down -7.5 ticks.
ECB Executive Board member Coeure said "now there are risks of sluggish growth, risks of prices remaining low, etc. And we're also slowly moving out of that and looking forward, we'll have to focus more on upside risks."
Eurozone Dec M3 money supply rose +4.6% y/y, weaker than expectations of +4.9% y/y and the smallest pace of increase in 5-months.
UK Q4 GDP rose +0.5% q/q and +1.5% y/y, stronger than expectations of +0.4% q/q and +1.4% y/y.
Japan Dec national CPI rose +1.0% y/y, weaker than expectations of +1.1% y/y, but still the largest increase in 2-3/4 years. Dec national CPI ex fresh food rose +0.9% y/y, right on expectations. Dec national CPI ex fresh food & energy rose +0.3% y/y, weaker than expectations of +0.4% y/y.
China Dec industrial profits rose +10.8% y/y, the smallest pace of increase in a year.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) Q4 GDP (expected +3.0% q/q annualized, Q3 +3.2%) and Q4 personal consumption (expected +3.7%, Q3 +2.2%), (2) Dec durable goods orders (expected +0.8% and +0.6% ex transportation, Nov +1.3% and -0.1% ex transportation), (3) Dec wholesale inventories (expected +0.4%, Nov +0.8%), (4) USDA weekly Export Sales, (5) USDA Dec Cattle on Feed.
Notable S&P 500 earnings reports today include: Honeywell (consensus $1.84), Air Products (1.66), Colgate-Palmolive (0.76), AbbVie (1.45), Rockwell Collins (1.51), NextEra Energy (1.31).
U.S. IPO's scheduled to price today: none.
Equity conferences this week: none.
OVERNIGHT U.S. STOCK MOVERS
Intel (INTC -0.46%) rallied more than 3% in after-hours trading after it reported Q4 revenue of $17.05 billion, much better than consensus of $16.35 billion. Rival chipmaker Advanced Micro Devices (AMD -2.36%) gained 2% in after-hours trading on the strong revenue growth from Intel.
Whirlpool (WHR +2.30%) was upgraded to 'Outperform' from 'Market Perform' at Raymond James with a 12-month target price of $200.
Equinix (EQIX -0.48%) fell over 3% in after-hours trading after CEO Steve Smith resigned, citing "poor judgement' with an employee matter.
Intuitive Surgical (ISRG +2.82%) dropped over 3% in after-hours trading after it reported a Q4 net loss of -35 cents per share versus a profit of $1.71 a share a year earlier, citing a $318 million expense related to the new U.S. tax laws.
Tesla (TSLA -2.39%) gained 1% in after-hours trading after it said it is on track with projections for increased Model 3 production rates provided earlier this month, refuting a CNBC report that said the company's battery manufacturing problems are worse than it has acknowledged.
Maxim Integrated Products (MXIM -2.18%) climbed nearly 5% in after-hours trading after it reported Q2 net revenue of $622.6 million, higher than consensus of $620.5 million, and then said it sees Q3 revenue of $620 million to $660 million, above consensus of $602.3 million.
Celanese (CE +2.03%) gained 1% in after-hours trading after it reported Q4 adjusted EPS of $1.98, higher than consensus of $1.87.
Starbucks (SBUX -0.46%) fell 3% in after-hours trading after it reported Q1 comparable sales rose 2%, weaker than expectations of a 3% increase.
SVB Financial (SIVB +0.16%) dropped 6% in after-hours trading after it reported Q4 EPS of $2.19, well below consensus of $2.56.
Matthews International (MATW) gained over 1% in after-hours trading after it reported Q1 adjusted EPS of 64 cents, above consensus of 61 cents.
E*TRADE Financial (ETFC -1.78%) lost 1% in after-hours trading after it acquired one million retail brokerage accounts with $18 billion in assets from Capital One for a purchase price of $170 million.
Flex Ltd (FLEX -0.74%) gained almost 2% in after-hours trading after it reported Q3 adjusted EPS of 31 cents, above consensus of 30 cents, and said it sees Q4 adjusted EPS of 28 cents to 32 cents, the midpoint better than consensus of 29 cents.
8x8 Inc (EGHT +2.88%) jumped nearly 8% in after-hours trading after it reported Q3 adjusted EPS of 2 cents, higher than consensus of 1 cent.
Mitek Systems (MITK -3.28%) rose over 3% in after-hours trading after it reported Q1 revenue of $12.1 million, better than consensus of $11.6 million.
MARKET COMMENTS
Mar S&P 500 E-mini stock futures (ESH18 +0.29%) this morning are up +10.00 points (+0.35%). Thursday's closes: S&P 500 +0.06%, Dow Jones +0.54%, Nasdaq -0.04%. The S&P 500 on Thursday closed higher on continued optimism about earnings and the smaller than expected +17,000 rise in initial unemployment claims to 233,000. On the negative side, U.S. Dec new home sales fell -9.3% to 625,000, weaker than expectations of -7.9% to 675,000. There was also continued doubt among foreign investors about U.S. assets after Treasury Secretary Mnuchin's endorsement on Wednesday of a weak dollar.
Mar 10-year T-note prices (ZNH18 -0.18%) this morning are down -7.5 ticks. Thursday's closes: TYH8 +7.50, FVH8 +2.75. Mar 10-year T-notes on Thursday recovered from a new contract low and closed higher on the weaker-than-expected U.S. Dec new home sales report and strong demand for the Treasury's $28 billion auction of 7-year T-notes that had a bid-to-cover ratio of 2.73, stronger than the 12-auction average of 2.50 and a 9-month high. T-notes dropped to a contract low earlier on negative carry-over from a plunge in German 10-year bunds to a 2-year low.
The dollar index (DXY00 -0.48%) this morning is down -0.444 (-0.50%). EUR/USD (^EURUSD) is up +0.0040 (+0.32%) and USD/JPY (^USDJPY) is down -0.08 (-0.07%). Thursday's closes: Dollar Index +0.185 (+0.21%), EUR/USD -0.0012 (-0.10%), USD/JPY +0.19 (+0.17%). The dollar index on Thursday recovered from a 3-year low and closed higher. The dollar moved higher after President Trump claimed that the weak-dollar comments by Treasury Secretary Mnuchin on Wednesday were taken out of context and that he ultimately wants a strong dollar. There was also some weakness in EUR/USD which fell back from a 3-year high and closed lower after ECB President Draghi said he sees "very few chances" that interest rates will be raised this year. The dollar earlier fell to a 3-year low on negative carry-over from Wednesday's comments from U.S. Treasury Secretary Mnuchin who endorsed a weaker dollar when he said, "obviously a weaker dollar is good for us as it relates to trade and opportunities."
Mar crude oil (CLH18 +0.15%) this morning is up +14 cents (+0.21%) and Mar gasoline (RBH18 -0.23%) is -0.0030 (-0.16%). Thursday's closes: Mar WTI crude -0.10 (-0.15%), Mar gasoline -0.0033 (-0.17%). Mar crude oil and gasoline on Thursday closed lower on a recovery in the dollar index from a 3-year low and the decline in the crack spread to a 1-week low, which reduces the incentive for refiners to purchase crude oil to refine into gasoline.
Metals prices this morning are weaker with Feb gold (GCG18 -0.88%) -11.9 (-0.87%), Mar silver (SIH18 -1.25%) -0.215 (-1.22%), and Mar copper (HGH18 -0.11%) -0.004 (-0.12%). Thursday's closes: Feb gold +6.6 (+0.49%), Mar silver +0.126 (+0.72%), Mar copper -0.0120 (-0.37%). Metals on Thursday settled mixed with Feb gold and Mar silver at 4-1/2 month highs. Metals prices were boosted by the early plunge in the dollar index to a 3-year low, and dovish comments from ECB President Draghi who said he sees "very few chances" that interest rates will be raised this year. Copper closed lower after LME copper inventories jumped +22,925 MT to a 3-1/2 month high of 299,600 MT and after U.S. Dec new home sales fell more than expected.
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