OVERNIGHT MARKETS AND NEWS
Mar E-mini S&Ps (ESH18 +0.09%) this morning are up +0.09% as strength in mining stocks lifts the overall market. Mining stocks gained as Mar COMEX copper (HGH18 +0.49%) climbed +0.50% to a new 3-3/4 year high and as Feb COMEX gold (GCG18 +0.22%) rises +0.26% to a 4-week high. Copper continues to find support on global production concerns after Jiangxi Copper Co, China's largest producer, halted all copper production after the local government ordered the company to stop production for at least a week because of local pollution levels. Gold prices garnered support on a weak dollar as the dollar index fell to a 4-week low. European stocks are down -0.19%, led by losses in technology stocks. Asian stocks settled mixed: Japan -0.56%, Hong Kong +0.90%, China +0.63%, Taiwan +0.77%, Australia +0.30%, Singapore +0.22%, South Korea +1.40%, India -0.19%. Strength in Japanese economic data on Nov industrial production and retail sales gave the yen a boost, which undercut Japanese exporter stocks and led the Nikkei Stock Index lower.
The dollar index (DXY00 -0.32%) is down -0.33% at a 4-week low. EUR/USD (^EURUSD) is up +0.49% at a 1-month high on an upbeat economic assessment from the ECB who said, "the Eurozone economic expansion continues to be solid and broad-based across countries and sectors." USD/JPY (^USDJPY) is down -0.42% at a 1-week low.
Mar 10-year T-note prices (ZNH18 -0.11%) are down -4.5 ticks.
The ECB in its monthly Economic Bulletin said, "the Eurozone economic expansion continues to be solid and broad-based across countries and sectors with underlying inflation expected to rise gradually over the medium-term."
Japan Nov industrial production rose +0.6% m/m, stronger than expectations of +0.5% m/m.
Japan Nov retail sales rose +1.9% m/m, stronger than expectations of +0.7% m/m and the biggest monthly increase in 13-months.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) weekly initial unemployment claims (expected -5,000 to 240,000, previous +20,000 to 245,000) and continuing claims (expected -32,000 to 1.900 million, previous +43,000 to 1.932 million), (2) Nov wholesale inventories (expected +0.3%, Oct -0.5% m/m), (3) Dec Chicago PMI (expected -1.9 to 62.0, Nov -2.3 to 63.9), (4) EIA weekly Petroleum Status Report, (5) Treasury auctions $28 billion of 7-year T-notes.
Notable Russell 1000 earnings reports today include:
U.S. IPO's scheduled to price today: none.
Equity conferences this week: none.
OVERNIGHT U.S. STOCK MOVERS
Sonoma Pharmaceuticals (SNOA -1.63%) was rated a new speculative 'Buy' at Benchmark Company LLC with a 12-month target price of $10.
Allegion PLC (ALLE -0.49%) said it sees a $25 million to $50 million write-down in Q4 due to the U.S. Tax Act.
J.B. Hunt Transport Services (JBHT +0.48%) may move lower intially this morning after it forecast Q4 EPS of 77 cents to 82 cents, well below consensus of $1.02.
Homestreet (HMST -0.52%) stock holder Roaring Blue Lion Capital Management, who reported a 5.44% stake in the company, said it met with Homestreet's board on Dec 21 to suggest operational changes to boost the stock's value.
Argo Group International Holdings Ltd (AGII -0.49%) was upgraded to 'Outperform' from 'Market Perform' at Keefe, Bruyette & Woods with a target price of $71.
Remark Holdings (MARK -0.80%) climbed over 5% in after-hours trading after it was mentioned positively in a Barron's article.
Revolution Lighting Technologies (RVLT +4.75%) dropped almost 8% in after-hours trading after it reported preliminary Q4 revenue of $35 million, less than an October 26 forecast of $47 million to $50 million.
MARKET COMMENTS
Mar S&P 500 E-mini stock futures (ESH18 +0.09%) this morning are yp +2.50 points (+0.09%). Wednesday's closes: S&P 500 +0.08%, Dow Jones +0.11%, Nasdaq +0.03%. The S&P 500 on Wednesday closed higher on the unexpected +0.2% m/m increase in U.S. Nov pending home sales, stronger than expectations of -0.4% m/m, and on strength in mining stocks after gold prices rose to a 3-week high and silver prices climbed to a 4-week high. Stocks were undercut by the -6.5-point decline in the Conference Board's Dec U.S. consumer confidence to 122.1, weaker than expectations of -1.5 to 128.0.
Mar 10-year T-note prices (ZNH18 -0.11%) this morning are own -4.5 ticks. Wednesday's closes: TYH8 +11.50, FVH8 +5.75. Mar 10-year T-notes on Wednesday closed higher on carry-over support from a rally in German 10-year bunds and on the weaker-than-expected U.S. Conference Board Dec consumer confidence report.
The dollar index (DXY00 -0.32%) this morning is down -0.307 (-0.33%) at a 4-week low. EUR/USD (^EURUSD) is up +0.0047 (+0.40%) at a 1-month high and USD/JPY (^USDJPY) is down -0.48 (-0.42%) at a 1-week low. Wednesday's closes: Dollar Index -0.232 (-0.25%), EUR/USD +0.0030 (+0.25%), USD/JPY +0.12 (+0.11%). The dollar index on Wednesday tumbled to a 3-week low and closed lower on the weaker-than-expected U.S. Dec consumer confidence report and on the decline in the 10-year T-note yield, which undercut the dollar's interest rate differentials.
Feb crude oil (CLG18 -0.08%) this morning is down -3 cents (-0.05%) and Feb gasoline (RBG18 -0.55%) is -0.0103 (-0.57%). Wednesday's closes: Feb WTI crude -0.33 (-0.55%), Feb gasoline +0.0025 (+0.14%). Feb crude oil and gasoline on Wednesday settled mixed. Crude oil prices were supported by the fall in the dollar index to a 3-week low and by expectations for Thursday's EIA crude inventories to drop -3.75 million bbl. Crude oil prices were undercut by the restart of the Forties Pipeline System that was closed for the past few weeks for repairs to a cracked pipeline, and by estimates that Libya's Es Sider export terminal, the country's biggest, will restart full production within a week after repairs are made.
Metals prices this morning are higher with Feb gold (GCG18 +0.22%) +3.3 (+0.26%) at a 4-week high, Mar silver (SIH18 +0.14%) +0.034 (+0.20%) at a 4-week high and Mar copper (HGH18 +0.49%) +0.017 (+0.50%) at a new 3-3/4 year nearest-futures high. Wednesday's closes: Feb gold +3.9 (+0.30%), Mar silver +0.152 (+0.92%), Mar copper +0.0035 (+0.11%). Metals on Wednesday closed higher with Feb gold at a 3-week high and Mar silver at a 4-week high. Metals prices were boosted by the fall in the dollar index to a 3-week low. Copper prices were supported by the unexpected increase in U.S. Nov pending home sales and by carry-over support from Monday's action by Jiangxi Copper Co, China's largest producer, to halt all copper production after the local government ordered the company to stop production for at least a week because of local pollution levels.
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