OVERNIGHT MARKETS AND NEWS

March E-mini S&Ps (ESH16 unch) are down -0.03% as they fell back from a new 1-3/4 month high posted in overnight trade, and European stocks are down -0.27%. The markets are looking ahead to today's weekly U.S. jobless claims and the Feb ISM non-manufacturing index for direction. European shares were pulled lower after Evonik Industries AG, Germany's second-largest chemical maker, plunged 12% after it lowered guidance on 2016 profits. Asian stocks settled mostly higher: Japan +1.28%, Hong Kong -0.31%, China +0.35%, Taiwan +0.79%, Australia +1.19%, Singapore +2.22%, South Korea +0.61%, India +1.50%. Short-covering has fueled gains in Japanese stocks this week as Japan's Nikkei Stock Index climbed to a 3-week high after data showed short-selling of Japanese stocks on the Nikkei Stock Index fell to 36% of total turnover on Wednesday, the lowest level this year.

The dollar index (DXY00 -0.09%) is down -0.01%. EUR/USD (^EURUSD) is up +0.09%. USD/JPY (^USDJPY) is up +0.47%.

Jun T-note prices (ZNM16 -0.10%) are down -2 ticks.

The Eurozone Feb Markit composite PMI was revised upward to 53.0 from the originally reported 52.7, still the slowest pace of expansion in 13 months.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Feb Challenger job cuts (Jan +41.6% y/y), (2) weekly initial unemployment claims (expected -2,000 to 270,000, previous +10,000 to 272,000) and continuing claims (expected -3,000 to 2.250 million, previous -19,000 to 2.253 million), (3) revised Q4 non-farm productivity (expected unrevised at -3.0%) and revised Q4 unit labor costs (expected +4.4%, previous +4.5%), (4) revised Feb Markit services PMI (expected +0.2 to 50.0, preliminary-Feb -3.4 to 49.8), (5) Feb ISM non-manufacturing PMI (expected -0.4 to 53.1, Jan -2.3 to 53.5), (6) Jan factory orders (expected +2.1%, Dec -2.9% and -0.8% ex-transportation), (7) Dallas Fed President Rob Kaplan's speech at the University of Texas in Austin, and (8) USDA weekly Export Sales.

There are 4 of the S&P 500 companies that report earnings today: HP (consensus $0.40), Kroger (0.54), H&R Block (-0.24), Broadcom (2.29).

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

Equity conferences this week include: Morgan Stanley Technology Media & Technology Conference on Mon-Thu, Bank of America Merrill Lynch Global Agriculture and Chemicals Conference on Wed-Thu, Bank of America Refining Conference on Thu, Citi Asset Management, Broker Dealer & Exchanges Investor Conference on Thu, Gabelli & Company Waste & Environmental Services Conference on Thu, Simmons Energy Conference on Thu-Fri.

OVERNIGHT U.S. STOCK MOVERS

Intel (INTC +0.56%) climbed nearly 2% in pre-market trading after it was upgraded to 'Outperform' from 'Neutral' at Robert Baird with a 12-month price target of $38.

Costco (COST +1.51%) fell over 3% in pre-market trading after it reported Q2 EPS of $1.24, less than consensus of $1,28.

Herbalife (HLF +0.37%) declined 6% in pre-market trading after it said it had errrors in data calculations that reported new U.S. active members up +71% when it should have been +30.7% and Q4 worldwide active new members ex China should be up +3.2%, not the originally reported +16.7%.

American Eagle Outfitters (AEO +0.32%) gained over 1% in after-hours trading after it raised guidance on Q1 EPS to 17 cents-19 cents, higher than consensus of 15 cents.

Sina Corp. (SINA +1.25%) dropped nearly 5% in after-hours trading after it lowered guidance on fiscal 2016 adjusted revenue to $850 million-$950 million, below consensus of $985.8 million.

Analogic (ALOG +1.04%) reported Q2 adjusted EPS of $1.18, higher than consensus of $1.04, but Q2 revenue of $127.9 million was below consensus of $132.7 million.

Weibo (WB -1.29%) rose 3% in after-hours trading after it reported Q4 adjusted EPS of 32 cents, more than double consensus of 13 cents.

Banc of California (BANC -0.94%) fell over 4% in after-hours trading after it announced a 3 million-share secondary offering.

Semtech (SMTC -3.30%) jumped over 12% in after-hours trading after it reported Q4 adjusted EPS of 17 cents, higher than consensus of 16 cents, and said it sees fiscal 2017 Q1 adjusted EPS of 26 cents-30 cents, above consensus of 24 cents.

TPG Specialty Lending (TSLX -0.12%) slid over 3% in after-hours trading after it announced a 5 million-share secondary offering.

SunEdison (SUNE +19.33%) tumbled over 9% in after-hours trading after it said it suspended the payment of quarterly dividends on its preferred stock.

Pure Storage (PSTG +4.87%) climbed over 3% in after-hours trading after it raised guidance on fiscal 2016 revenue to $685 million-$725 million, above consensus of $662.5 million.

Habit Restaurants (HABT +2.93%) dropped over 7% in after-hours trading after it lowered guidance in fiscal 2016 revenue to $286 million-$290 million, below consensus of $291.9 million.

MARKET COMMENTS

Mar E-mini S&Ps (ESH16 unch) this morning are little changed, down -0.50 of a point (-0.03%). Wednesday's closes: S&P 500 +0.41%, Dow Jones +0.20%, Nasdaq +0.02%. The S&P 500 climbed to a 1-3/4 month high on Wednesday and closed higher on positive carryover from a +4.26% rally in China's Shanghai Composite, the +214,000 increase in U.S. Feb ADP employment (stronger than expectations of +190,000), and strength in energy producers after crude oil rallied to a 1-3/4 month high.

Jun 10-year T-notes (ZNM16 -0.10%) this morning are down -2 ticks. Wednesday's closes: TYM6 -8.00, FVM6 -4.25. Jun T-notes on Wednesday fell to a 1-month low and closed lower on increased inflation expectations with the 10-year T-note breakeven inflation rate climbing to a 1-1/2 month high and on the larger-than-expected +214,000 increase in the Feb ADP employment report, which bolstered the case for the Fed to keep raising interest rates.

The dollar index (DXY00 -0.09%) this morning is down -0.007 (-0.01%). EUR/USD (^EURUSD) is up +0.0010 (+0.09%). USD/JPY (^USDJPY) is up +0.53 (+0.47%). Wednesday's closes: Dollar Index -0.138 (-0.14%), EUR/USD unch, USD/JPY -0.53 (-0.46%). The dollar index on Wednesday fell back from a 1-month high and closed lower on weakness in USD/JPY after an early slide in stocks boosted the safe-haven demand for the yen. The dollar was also undercut by the Fed Beige Book's comment that a stronger dollar and a "weakening global outlook" hurt U.S. exports, which may delay a Fed rate hike.

Apr WTI crude (CLJ16 +0.17%) this morning is up +5 cents (+0.14%) and Apr gasoline (RBJ16 -0.39%) is down -0.0071 (-0.54%). Wednesday's closes: CLJ6 +0.26 (+0.76%), RBJ6 +0.0050 (+0.38%). Apr crude oil and gasoline on Wednesday settled higher with Apr crude at a 1-3/4 month high. Crude oil prices were boosted by a weaker dollar and the -0.3% decline in U.S. crude production in the week ended Feb 26 to 9.077 million bpd, a 1-1/4 year low. Crude oil prices were undercut by the +10.37 million bbl surge in U.S. crude inventories to a record 517.98 million bbl.

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