OVERNIGHT MARKETS AND NEWS

Mar E-mini S&Ps (ESH18 unch) this morning are up +0.39% after Congress passed a 2-year budget agreement early this morning, which President Trump said he will sign into law. Stocks also moved higher after the 10-year T-note yield steadied below its recent 4-year high of 2.88%. European stocks, however, are down -1.42% at an 11-1/4 month low. Weakness in mining and energy stocks is leading losses in the overall market with Mar COMEX copper (HGH18 -0.78%) down -0.63% at a 1-3/4 month low and Mar WTI crude oil (CLH18 -1.16%) down -1.08%. Signs of robust copper supplies are undercutting prices after LME copper inventories jumped +20,125 MT to an 8-1/2 month high of 336,225 MT and weekly Shanghai copper inventories rose +13,537 MT to a 5-1/2 month high of 186,132 MT. Asian stocks settled lower: Japan -2.32%, Hong Kong -3.10%, China -4.05%, Taiwan -1.49%, Australia -0.90%, Singapore -1.13%, South Korea -2.18%, India -1.18%. Asian markets followed Thursday's losses in U.S. and European markets with China's Shanghai Composite falling to an 8-1/2 month low.

The dollar index (DXY00 +0.22%) is up +0.25%. EUR/USD (^EURUSD) is down -0.07%. USD/JPY (^USDJPY) is up +0.22%.

Mar 10-year T-note prices (ZNH18 +0.09%) are up +1 tick.

Kansas City Fed President George said, "in the near-term, the good news is that the U.S. economy is currently growing at a moderate pace, with full employment and price stability" and the FOMC's projection of three rate hikes this year and about the same number next year is a "reasonable baseline unless the outlook changes materially."

UK Dec industrial production fell -1.3% m/m, weaker than expectations of -0.9% m/m and the biggest decline in 5-1/4 years.

UK Dec manufacturing production rose +0.3% m/m, right on expectations.

China Jan CPI rose +1.5% y/y, right on expectations and the slowest pace of increase in 6 months. Jan PPI rose +4.3% y/y, right on expectations and the slowest pace of increase in 14 months.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Dec wholesale trade sales (expected +0.4%, Nov +1.5% m/m) and Dec wholesale inventories (expected +0.2%, prelim-Dec +0.2%).

Notable S&P 500 earnings reports today include: PG&E (consensus $0.68), Moody's (1.48), Ventas (1.03), CBOE Global Markets (0.88).

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

Equity conferences this week: American Society of Clinical Oncology Genitourinary Cancers Symposium on Thu-Fri.

OVERNIGHT U.S. STOCK MOVERS

Nvidia (NVDA -4.93%) jumped over 10% in after-hours trading after it reported Q4 revenue of $2.91 billion, above consensus of $2.68 billion, and said it sees Q1 revenue of $2.90 billion, plus or minus 2%, higher than consensus of $2.44 billion.

Expedia (EXPE -4.87%) tumbled 14% in after-hours trading after it reported Q4 adjusted EPS of 84 cents, well below consensus of $1.15.

Wynn Resorts (WYNN -4.53%) was downgraded to 'Equal-Weight' from 'Overweight' at Morgan Stanley.

VeriSign (VRSN -3.20%) dropped over 4% in after-hours trading after it reported Q4 adjusted EPS of 96 cents, below consensus of 97 cents.

QUALCOMM (QCOM -4.03%) gained 1% in after-hours trading after it rejected Broadcom's bid for the company of $82.50 a share saying the proposal materially undervalues the company.

Activision Blizzard (ATVI -5.23%) rose 3% in after-hours trading after it said it sees 2018 adjusted revenue of $7.45 billion, above consensus of $7.39 billion.

FleetCor Technologies (FLT -4.28%) lost over 2% in after-hours trading after it said it sees full-year adjusted EPS of $10.05 to $10.35, the midpoint below consensus of $10.20.

Monolithic Power Systems (MPWR -5.62%) rallied 4% in after-hours trading after it reported Q4 revenue of $129.4 million, above consensus of $126.1 million, and said it sees Q1 revenue of $122 million to $128 million, higher than consensus of $122.6 million.

Ellie Mae (ELLI -3.85%) climbed over 5% in after-hours trading after it reported Q4 adjusted EPS of 33 cents, better than consensus of 25 cents, and said it sees full-year adjusted EPS of $1.68 to $1.78 above consensus of $1.61.

Beacon Roofing Supply (BECN -5.26%) rose over 3% in after-hours trading after it reported Q1 adjusted EPS of 68 cents, well above consensus of 55 cents.

Zillow Group (Z +4.06%) dropped 8% in after-hours trading after it said it sees 2018 adjusted Ebitda of $300 million to $315 million, below consensus of $319.1 million.

Skechers U.S.A. (SKX -6.79%) climbed nearly 5% in after-hours trading after it reported Q4 net sales of $970.6 million, well above consensus of $881.4 million.

Crisper Therapeutics AG (CRSP -7.27%) fell 3% in after-hours trading after Celgene reported it cut its stake in the company to 6.1% from 7.09% reported Dec 22.

FireEye (FEYE -0.35%) jumped 13% in after-hours trading after it said it sees Q1 revenue of $192 million to $197 mili0n, higher than consensus of $187.2 million, and said it sees 2018 revenue of $815 million to $825 million, better than consensus of $801.3 million.

MARKET COMMENTS

Mar S&P 500 E-mini stock futures (ESH18 unch) this morning are up +10.00 points (+0.39%). Thursday's closes: S&P 500 -3.75%, Dow Jones -4.15%, Nasdaq -4.19%. The S&P 500 on Thursday sank to a 2-1/2 month low and settled sharply lower. Stocks were again undercut by interest rate concerns after the 10-year T-note yield matched its 4-year high of 2.88%. There was also weakness in energy stocks after crude oil prices tumbled -1.04% to a 1-month low. Stocks received some support from news that U.S. weekly initial unemployment claims unexpectedly fell -9,000 to 221,000, better than expectations of +2,000 to 232,000.

Mar 10-year T-note prices (ZNH18 +0.09%) this morning are up +1 tick. Thursday's closes: TYH8 -3.50, FVH8 -0.50. Mar 10-year T-notes on Thursday fell to a new contract low and closed lower. T-note prices were undercut by negative carry-over from a surge in the UK 10-year yield to a 1-3/4 year high after the BOE raised its UK 2018 GDP forecast to 1.8% from 1.6% and said it may need to raise interest rates earlier than expected as inflation is expected to remain above its 2% target. Treasury prices were also undercut by supply pressures as the Treasury auctioned $16 billion of 30-year T-bonds.

The dollar index (DXY00 +0.22%) this morning is up +0.226 (+0.25%). EUR/USD (^EURUSD) is down -0.0009 (-0.07%) and USD/JPY (^USDJPY) is up +0.24 (+0.22%). Thursday's closes: Dollar Index -0.026 (-0.03%), EUR/USD -0.0017 (-0.14%), USD/JPY -0.59 (-0.54%). The dollar index on Thursday fell back from a 2-week high and closed slightly lower. The dollar was undercut by the slump in stocks, which undercut USD/JPY on increased safe-haven demand for the yen. There was also strength in GBP/USD after the BOE said it may need to raise interest rates sooner than expected as inflation is expected to remain above its 2% target.

Mar crude oil (CLH18 -1.16%) this morning is down -66 cents (-1.08%) and Mar gasoline (RBH18 -0.65%) is down -0.0094(-0.53%). Thursday's closes: Mar WTI crude -0.64 (-1.04%), Mar gasoline -0.0010 (-0.06%). Mar crude oil and gasoline on Thursday closed lower with Mar crude at a 1-month low. Crude oil prices were undercut by negative carry-over from Wednesday's EIA data that showed a +3.3% increase in U.S. crude production to 10.251 million bpd, a 47-year high.

Metals prices this morning are weaker with Apr gold (GCJ18 -0.09%) -2.6 (-0.20%), Mar silver (SIH18 -0.28%) -0.051(-0.31%), and Mar copper (HGH18 -0.78%) -0.020 (-0.63%) at a fresh 1-3/4 month low. Thursday's closes: Apr gold +4.4 (+0.33%), Mar silver +0.103 (+0.63%), Mar copper -0.0055 (-0.18%). Metals on Thursday settled mixed with Mar copper at a 1-3/4 month low. Metals prices were undercut by concern that near-term Chinese copper demand will drop with the start of the week-long Chinese Lunar New Year holidays next week. Copper prices were also undercut by increased copper supplies after LME copper inventories surged +21,125 MT to a 6-3/4 month high. Gold and silver closed higher as the plunge in stocks boosted safe-haven demand for precious metals.