Morning Call For March 11, 2016

OVERNIGHT MARKETS AND NEWS

March E-mini S&Ps (ESH16 +0.93%) are up +0.98% at a 2-month high and European stocks are up +2.97%. Bank stocks are higher with Goldman Sachs and Morgan Stanley both up at least 1.5% in pre-market trading, while a +2.30% jump in the price of crude to a 3-month high gives energy producing stocks a lift. Crude oil received a boost after the IEA cut its 2016 non-OPEC crude production estimate by -150,000 bpd and said that "there are signs that prices might have bottomed out." Asian stocks settled higher: Japan +0.51%, Hong Kong +1.08%, China +0.20%, Taiwan +0.52%, Australia +0.32%, Singapore +0.70%, South Korea +0.22%, India +0.38%. China's Shanghai Composite recovered from a 1-week low and closed higher and gave Asian markets a lift after the PBOC strengthened its daily reference rate for the yuan by 0.34%, which fueled a rally in the yuan to a 2-1/4 month high against the dollar.

The dollar index (DXY00 +0.50%) is up +0.54%. EUR/USD (^EURUSD) is down -0.62%. USD/JPY (^USDJPY) is up +0.49%.

Jun T-note prices (ZNM16 -0.15%) are down -5 ticks.

The IEA cut its 2016 non-OPEC crude production estimate to 750,000 bpd, down -150,000 from 900,000 bpd estimated last month, and said that "there are signs that prices might have bottomed out."

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Feb import price index (expected -0.7% m/m and -6.5% y/y, Jan -1.1% m/m and -6.2% y/y).

None of the Russell 1000 companies report earnings today.

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

Equity conferences this week include: none.

OVERNIGHT U.S. STOCK MOVERS

Morgan Stanley (MS +0.16%) and Goldman Sachs Group (GS +0.74%) are both up over 1% in pre-market trading.

Ulta Salon Cosmetics & Fragrance (ULTA +2.75%) rallied over 12% in pre-market trading after it reported Q4 adjusted EPS of $1.69, above consensus of $1.54, and then raised guidance on Q1 EPS to $1.25-$1.30, higher than consensus of $1.22.

Wynn Resorts Ltd. (WYNN +3.07%) was downgraded to 'Neutral' from 'Buy' at Sterne Agee CRT.

Arctic Cat (ACAT +2.85%) was downgraded to 'Sell' from 'Hold' at Wunderlich Securities.

Zumiez (ZUMZ +2.10%) fell 8% in after-hours trading after it lowered guidance on Q1 sales to $172 million-$175 million, below consensus of $176.7 million.

Finisar (FNSR +0.07%) jumped over 8% in after-hours trading after it reported Q3 adjusted EPS of 25 cents, higher than consensus of 22 cents, and said it sees Q4 adjusted EPS of 22 cents-28 cents, above consensus of 21 cents.

El Pollo Loco Holdings (LOCO +1.54%) declined nearly 6% in after-hours trading after it said it sees 2016 pro-forma EPS of 70 cents-74 cents, at the lower end of consensus of 74 cents.

BioDelivery Sciences International (BDSI -8.11%) dropped over 5% in after-hours trading after it reported Q4 EPS of 19 cents, well below consensus of 55 cents.

Bojangles' (BOJA -0.20%) gained 6% in after-hours trading after it reported Q4 EPS of 22 cents, better than consensus of 19 cents, and then raised guidance on 2016 adjusted Ebitda to $83.5 million-$86.5 million, higher than consensus of $80.2 million.

Kratos Defense & Security Solutions (KTOS -2.90%) jumped over 6% in after-hours trading after it reported Q4 ongoing adjusted EPS of 2 cents, better than consensus of a -4 cent loss.

Sunrun (RUN +7.52%) plunged over 10% in after-hours trading after it reported Q4 revenue of $99.6 million, below consensus of $101.8 million.

Bonanza Creek Energy (BCEI -2.42%) slipped 5% in after-hours trading after it elected to draw down $209 million on its credit facility.

Strata Skin Sciences (SSKN +2.80%) catapulted up over 30% in after-hours trading after the FDA approved Strata's PMA supplement for the MelaFind System that aids in detection of melanoma.

MARKET COMMENTS

Mar E-mini S&Ps (ESH16 +0.93%) this morning are up +19.50 points (+0.98%) at a 2-month high. Thursday's closes: S&P 500 +0.02%, Dow Jones-0.03%, Nasdaq -0.15%. The S&P 500 on Thursday gave up early gains and fell to a 1-week low on global economic concerns after the ECB cut its Eurozone 2016 GDP forecast to +1.4% from +1.7% and ECB President Draghi said that risks to economic growth are still to the downside. Stocks were also undercut by weakness in energy producers after the price of crude fell. Stocks saw strength early on the -18,000 drop in U.S. weekly jobless claims and on the ECB's interest rate cut and QE expansion to 80 billion euros from 60 billion euros a month.

Jun 10-year T-notes (ZNM16 -0.15%) this morning are down -5 ticks. Thursday's closes: TYM6 -13.50, FVM6 -8.50. Jun T-notes on Thursday slid to a 1-1/4 month low and closed lower on the larger-than-expected drop in weekly U.S. jobless claims to a 4-3/4 month low and on negative carryover from a decline in German bund prices to a 1-1/4 month low.

The dollar index (DXY00 +0.50%) this morning is up +0.522 (+0.54%). EUR/USD ^EURUSD) is down -0.0069 (-0.62%). USD/JPY (^USDJPY) is up +0.56 (+0.49%). Thursday's closes: Dollar Index -1.107 (-1.14%), EUR/USD +0.0178 (+1.62%), USD/JPY -0.16 (-0.14%). The dollar index on Thursday whipsawed up to a 1-week high and then down to a 3-week low and closed lower. The dollar was undercut by strength in EUR/USD which recovered from a 5-week low and rallied up to a 3-week high when ECB President Draghi said that he "doesn’t anticipate" more rate cuts from the ECB. EUR/USD initially saw weakness after the ECB cut interest rates and expanded QE to 80 billion euros a month from 60 billion euros.

Apr WTI crude (CLJ16 +2.14%) this morning is up +87 cents (+2.30%) and Apr gasoline (RBJ16 +0.55%) is up +0.0079 (+0.55%). Thursday's closes: CLJ6 -0.45 (-1.18%), RBJ6 -0.0315 (-2.14%). Apr crude and gasoline on Thursday closed lower on reduced optimism about a freeze in crude production after Russian Energy Minister Novak said that a time and date for a meeting among major oil producers remains uncertain and on negative carryover from Wednesday's EIA data that showed an increase in EIA crude stockpiles to a record high 521.8 million bbl and the rise in oil inventories at Cushing, OK, the delivery point for WTI futures, to a record 66.9 million bbl.