OVERNIGHT MARKETS AND NEWS
Sep E-mini S&Ps (ESU17 +0.15%) this morning are up +0.15% and European stocks are up +0.48% as a rebound in technology stocks leads global markets higher. Apple is up nearly 1% and NVidia rose 2.6% in pre-market trading to lead technology shares higher after the recent rout in the technology sector over the past two sessions. Trading activity has been muted ahead of the 2-day FOMC meeting that begins today. The upside in European stocks was limited after a gauge of German investor confidence declined after the German Jun ZEW survey expectations of economic growth unexpectedly fell. Asian stocks settled mostly higher: Japan -0.05%, Hong Kong +0.56%, China +0.44%, Taiwan +0.18%, Australia +1.67%, Singapore +0.28%, South Korea +0.58%, India +0.03%.
The dollar index (DXY00 -0.10%) is down -0.06. EUR/USD (^EURUSD) is up +0.03%. USD/JPY (^USDJPY) is up +0.12%.
Sep 10-year T-note prices (ZNU17 -0.04%) are down -2 ticks.
UK May CPI rose +0.3% m/m and +2.9% y/y, stronger than expectations of +0.2% m/m and +2.7% y/y with the +2.9% y/y gain the largest year-on-year increase in nearly 4 years. May core CPI rose +2.6% y/y, stronger than expectations of +2.4% y/y and the largest increase in 4-1/2 years.
The German Jun ZEW survey expectations of economic growth unexpectedly fell -2.0 to 18.6, weaker than expectations of +1.1 to 21.7.
The Japan Q2 BSI large manufacturing business conditions fell to -2.9, the lowest in a year.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) May PPI final demand (expected unch m/m and +2.3% y/y, Apr +0.5% m/m and +2.5% y/y) and May PPI ex food & energy (expected +0.2% m/m and +1.9% y/y, Apr +0.4% m/m and +1.9% y/y), (2) FOMC begins 2-day policy meeting, (3) Treasury auctions $12 billion of 30-year T-bonds.
Notable Russell 2000 earnings reports today include: John Wiley (consensus $0.57), H&R Block (3.53).
U.S. IPO's scheduled to price today: SG Blocks (SGBX), TCG BDC (CGBD), Athenex (ATNX).
Equity conferences: J.P. Morgan Global Leaders Forum on Tue, Citi Industrials Conference on Tue-Wed, Morgan Stanley Financial Services Conference on Tue-Wed, William Blair & Company Growth Stock Conference on Tue-Thu, Deutsche Bank dbAccess Global Consumer Conference on Tue-Thu, Golddman Sachs European Payment Conference on Tue-Thu, Goldman Sachs Global Health Care Conference on Tue-Thu, Piper Jaffray Consumer Conference on Wed, Vertical Research Partners Materials Conference on Wed, RBC Capital Markets Financial Technology Investor Day on Wed, Drexel Hamilton Aerospace & Defense Conference on Thu, Stifel, Nicolaus & Co Industrials Conference on Thu, NASDAQ Investor Program on Thu.
OVERNIGHT U.S. STOCK MOVERS
Western Digital (WDC +0.73%) was initiated with a 'Buy' rating at Aegis Capital with a 12-month target price of $130.
Everest Re Group Ltd (RE +1.00%) will replace Mead Johnson Nutrition ({=MJN in the S&P 500 before the open of trading on Monday, June 19.
Athenahealth (ATHN +0.76%) was downgraded to 'Neutral' from 'Overweight' at Cantor Fitzgerald.
Science Applications International (SAIC +5.70%) sank 11% in after-hours trading after it reported Q1 revenue of $1.10 billion, below consensus of $1.12 billion.
Armada Hoffler Properties (AHH +0.97%) rallied over 3% in after-hours trading after it was announced that it would replace Pinnacle Financial in the S&P SmallCap 600 before the open of trading on Monday, June 19.
Seagate (STX -1.96%) was initiated with a 'Buy' rating at Aegis Capital with a 12-month target price of $50.
Merck & Co (MRK unch) lost 1% in after-hours trading after it said it would halt new enrollment for its trials of Keytruda with combination with other therapies in multiple myeloma to study reports of deaths in the Keytruda groups.
Clovis Oncology (CLVS -0.56%) was initiated with an "Outperform' rating at Leerink Partners LLC with a 12-month target price of $85.
Synaptics (SYNA -1.46%) dropped 2% in after-hours trading after it narrowed its Q4 revenue forecast to $420 million-$430 million from an April 27 estimate of $410 million-$450 million, below consensus of $432.3 million.
Acceleron Pharma (XLRN -2.79%) dropped over 5% in after-hours trading after it said the Phase 2 study of its dalantercept plus axitinib did not achieve its primary endpoint in advanced renal cell carcinoma.
First Industrial Realty Trust (FR +1.14%) lost almost 2% in after-hours trading after it announced that it had commenced an underwritten public offering of 2.56 million shares of its common stock.
GTx (GTXI +99.03%) climbed over 5% in after-hours trading after it had already doubled during Monday's regular trading session when it reported each of 7 women enrolled in a Phase 2 study oy its enobosarm for stress urinary incontinence showed a clinically significant reduction in incontinence episodes per day,
Cleantech Solutions International (CLNT -2.80%) surged 17% in after-hours trading after it announced that it had entered into an exclusive discussion with ECrent Capital Holdings Limited to focus on developing and operating of a global rental platform to promote sharing economy across 30 countries.
MARKET COMMENTS
Sep E-mini S&Ps (ESU17 +0.15%) this morning are up +3.75 points (+0.15%). Monday's closes: S&P 500 -0.10%, Dow Jones -0.17%, Nasdaq -0.594%. The S&P 500 on Monday closed lower on weakness in technology stocks for a second day as Apple fell -2.4% to a 1-1/2 month low and on expectations for a Fed rate hike at the conclusion of Wednesday's FOMC meeting, which fueled long liquidation pressures in stocks. Losses were limited as energy stocks advanced after crude oil prices climbed +0.55%.
Sep 10-year T-notes (ZNU17 -0.04%) this morning are down -2 ticks. TYU7 -3.00, FVU7 -2.00. Sep 10-year T-notes on Monday closed lower on supply pressures as the Treasury auctioned 3-year and 10-year T-notes on Monday and will auction $12 billion of 30-year T-bonds on Tuesday. There was also some selling ahead of the 2-day FOMC meeting where the Fed is expected to raise the fed funds target range by 25 bp and possibly release some balance sheet roll-off program details. Losses were limited by weaker inflation expectations after the 10-year T-note breakeven inflation rate fell to a 7-month low.
The dollar index (DXY00 -0.10%) this morning is down -0.06 (-0.06%). EUR/USD (^EURUSD) is up +0.0003 (+0.03%) and USD/JPY (^USDJPY) is up +0.13 (+0.12%). Dollar index -0.102 (-0.10%), EUR/USD +0.0008 (+0.07%), USD/JPY -0.37 (-0.34%). The dollar index on Monday closed lower on the slide in stocks, which boosted safe-haven demand for the yen, and on reduced inflation expectations that may slow the pace of Fed tightening after the 10-year T-note breakeven inflation rate dropped to a 7-month low.
Jul WTI crude oil prices (CLN17 +0.17%) this morning are up +17 cents (+0.37%) and July gasoline (RBN17 -0.17%) is -0.0013 (-0.09%). Jul crude +0.25 (+0.55%), Jul gasoline -0.0137 (-0.91%). Jul crude oil and gasoline on Monday settled mixed. Crude oil prices were boosted by a weaker dollar and comments from Saudi Arabian Oil Minister Khalid Al-Falih who said if crude inventories don't settle to their 5-year historical average by Q4, Saudi Arabia "may modify its policy if output cuts don't have the desired effect." Crude oil prices were undercut by negative carry-over from Friday's data from Baker Hughes that showed U.S. active oil rigs in the week ended Jun 9 rose +8 to 741, the most in 2 years.
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