OVERNIGHT MARKETS AND NEWS

Dec E-mini S&Ps (ESZ17 +0.26%) this morning are up +0.32% on strength in energy stocks with Jan WTI crude oil (CLF18 +0.98%) up +0.92% after all OPEC members and Russia agreed that crude production cuts should be extended until the end of 2018. European stocks are up +0.53% and found support on strength in the European economy after the Eurozone Oct unemployment rate fell -0.1 to an 8-3/4-year low of 8.8%. Asian stocks settled mostly lower: Japan +0.57%, Hong Kong -1.51%, China -0.62%, Taiwan -1.43%, Australia -0.69%, Singapore -0.16%, South Korea -1.64%, India -1.35%. Contagion from Wednesday's rout in U.S. technology stocks spread to Asian markets, although Japan's Nikkei Stock Index bucked the trend and climbed to a 1-1/2 week high after a rally in USD/JPY to a 1-week high fueled a rally in Japanese exporters. Chinese stocks fell despite an unexpected increase in manufacturing activity after the China Nov manufacturing PMI unexpectedly rose +0.2 to 51.8.

The dollar index (DXY00 +0.18%) is up +0.22% at a 1-week high. EUR/USD (^EURUSD) is down -0.08% to a 1-week low on weaker-than-expected Eurozone Nov CPI, which is dovish for ECB monetary policy. USD/JPY (^USDJPY) is up +0.33% at a 1-week high as strength in stocks reduces the safe-haven demand for the yen.

Dec 10-year T-note prices (ZNZ17 -0.11%) are down -3.5 ticks.

The Eurozone Oct unemployment rate unexpectedly fell -0.1 to an 8-3/4-year low of 8.8%, better than expectations of no change at 8.9%.

The Eurozone Nov CPI estimate rose +1.5% y/y, weaker than expectations of +1.6% y/y. Nov core CPI rose +0.9% y/y, unch from Oct and weaker than expectations of +1.0% y/y.

The German Nov unemployment change fell -18,000 to 2.476 million, stronger than expectations of -10,000. The Nov unemployment rate was unch at 5.6%, as expected and the lowest since the reunification of Germany in 1990.

German Oct retail sales unexpectedly fell -1.2% m/m, weaker than expectations of +0.3% m/m and the biggest decline in 13 months.

The China Nov manufacturing PMI unexpectedly rose +0.2 to 51.8, stronger than expectations of -0.2 to 51.4.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly initial unemployment claims (expected +1,000 to 240,000, previous -13,000 to 239,000) and continuing claims (expected -14,000 to 1.890 million, previous +36,000 to 1.904 million), (2) Oct personal spending (expected +0.3%, Sep +1.0%) and Oct personal income (expected +0.3%, Sep +0.4%), (3) Oct PCE deflator (expected +0.1% m/m and +1.5% y/y, Sep +0.4% m/m and +1.6% y/y) and Oct core PCE deflator (expected +0.2% m/m and +1.4% y/y, Sep +0.1% m/m and +1.3% y/y), (4) USDA weekly Export Sales, (5) Nov Chicago PMI (expected -3.2 to 63.0, Oct +1.0 to 66.2), (6) Dallas Fed President Robert Kaplan (voter) speaks in a moderated Q&A at a Real Estate Council speaking series in Dallas.

Notable Russell 1000 earnings reports today include: VMware (consensus $1.27), Ulta Beauty (1.67), Kroger (0.40), Donaldson (0.42), Michaels (0.43).

U.S. IPO's scheduled to price today: Boxlight (BOXL)

Equity conferences this week: Citi Basic Materials Conference on Wed-Thu, Bank of America Merrill Lynch Leveraged Finance Conference on Wed-Thu, Credit Suisse Industrials Conference on Wed-Thu, Evercore ISI Inaugural Biopharma Catalyst/Deep Dive Conference on Wed-Thu, ACI Cyber Security Oil, Gas, Power Conference on Thu, Deutsche Bank MedTools and Diagnostics One-on-One Day on Thu, HSBC High Yield Conference on Thu.

OVERNIGHT U.S. STOCK MOVERS

Boston Scientific (BSX -1.67%) was upgraded to 'Buy' from 'Neutral' at BTIG LLC with a 12-month target price of $31.

Synopsys (SNPS -3.37%) jumped 9% in after-hours trading after it reported Q4 adjusted EPS of 69 cents, above consensus of 57 cents, and then said it sees Q1 adjusted EPS of 98 cents to $1.02, better than consensus of 84 cents.

Jack in the Box (JACK -0.22%) dropped nearly 6% in after-hours trading after it reported Q4 adjusted operating EPS of 73 cents, well below consensus of 89 cents.

PVH Corp. (PVH -0.31%) slid 2% in after-hours trading after it said it sees Q4 adjusted EPS of $1.42 to $1.44, below consensus of $1.46.

Guidewire Software (GWRE -5.58%) fell 5% in after-hours trading after it said it sees Q2 adjusted EPS of 17 cents to 21 cents, weaker than consensus of 24 cents.

Semtech (SMTC -5.68%) dropped 11% in after-hours trading after it said it sees Q4 adjusted EPS of 40 cents to 42 cents, below consensus of 47 cents.

Juniper Networks (JNPR +5.04%) surged over 15% in after-hours trading after CNBC reported that Nokia is in talks to buy Juniper in a deal valued around $16 billion.

At Home Group (HOME +5.84%) climbed over 6% in after-hours trading after it reported Q3 adjusted proforma of 7 cents, above consensus of 4 cents, and then said it sees full-year adjusted proforma of 77 cents to 79 cents, higher than consensus of 75 cents.

La-Z-Boy (LZB +1.03%) slid 3% in after-hours trading after it reported Q2 operating margin of 8.7% versus 9.0% y/y.

Box Inc. (BOX -3.73%) lost nearly 6% in after-hours trading after it said it sees full-year revenue of $505 million to $506 million, the mid-point below consensus of $505.6 million.

Tilly's (TLYS -0.38%) jumped almost 8% in after-hours trading after it reported Q3 EPS of 30 cents, better than consensus of 21 cents, and then said it sees Q4 EPS of 22 cents to 26 cents, the mid-point above consensus of 23 cents.

TherapeuticsMD (TXMD +0.83%) rose 4% in after-hours trading after it resubmitted its application of NDA for TX-004hr with the FDA for the treatment of vaginal pain.

Limelight Networks (LLNW -6.30%) fell over 7% in after-hours trading after it announced the launch of an underwritten public offering of 10 million shares of its common stock by certain selling stockholders.

MARKET COMMENTS

Dec S&P 500 E-mini stock futures (ESZ17 +0.26%) this morning are up +8.50 points (+0.32%). Wednesday's closes: S&P 500 -0.04%, Dow Jones +0.44%, Nasdaq -1.73%. The S&P 500 on Wednesday posted a new record high but gave up its advance and closed lower. Stocks were undercut by weakness in technology stocks, led by a -2% decline in Apple. There was also weakness in energy stocks as crude oil prices fell -1.19%. Stocks found support on the upward revision to U.S. Q3 GDP to 3.3% from +3.0%, the fastest pace of expansion in 3 years, and by the +3.5% increase in U.S. Oct pending home sales, stronger than expectations of +1.0% m/m and the biggest increase in 8 months.

Dec 10-year T-note prices (ZNZ17 -0.11%) this morning are down -3.5 ticks. Wednesday's closes: TYZ7 -5.00, FVZ7 -2.50. Dec 10-year T-notes on Wednesday fell to a 2-week low and closed lower. T-note prices were undercut by the stronger-than-expected upward revision to U.S. Q3 GDP to 3.3% from +3.0%, which bolsters the case for additional Fed rate hikes, and by hawkish comments from Fed Chair Yellen who said, "the economy will continue to expand and the job market will strengthen further, supporting faster growth in wages and incomes."

The dollar index (DXY00 +0.18%) this morning is up +0.205 (+0.22%) at a 1-week high. EUR/USD (^EURUSD) is down -0.0009 (-0.08%) at a 1-week low and USD/JPY (^USDJPY) is up +0.37 (+0.33%) at a 1-week high. Wednesday's closes: Dollar Index -0.106 (-0.11%), EUR/USD +0.0007 (+0.06%), USD/JPY +0.45 (+0.40%). The dollar index on Wednesday closed lower on strength in EUR/USD after Eurozone Nov economic confidence rose +0.5 to a 17-year high of 114.6, which is hawkish for ECB monetary policy. There was also strength in GBP/USD which jumped to a 2-month high on reports the UK and EU negotiators reached a preliminary agreement on a so-called Brexit divorce bill.

Jan crude oil (CLF18 +0.98%) this morning is up +53 cents (+0.92%) and Jan gasoline (RBF18 +0.89%) is +0.0191 (+1.10%). Wednesday's closes: Jan WTI crude -0.60 (-1.19%), Jan gasoline -0.0321 (-1.81%). Jan crude oil and gasoline on Wednesday closed lower on the +3.63 million bbl increase in EIA gasoline inventories, more than expectations of +1.0 million bbl, and the +0.2% increase in U.S. crude production in the week of Nov 24 to a 46-year high of 9.682 million bpd.

Metals prices this morning are mixed with Dec gold (GCZ17 -0.12%) -1.1 (-0.09%) at a 1-week low, Dec silver (SIZ17 -0.01%) -0.002 (-0.01%) at a 1-1/2 month low and Dec copper (HGZ17 +0.46%) +0.018 +0.59%). Wednesday's closes: Dec gold -12.8 (-0.99%), Dec silver -0.365 (-2.17%), Dec copper -0.0315 (-1.03%). Metals on Wednesday closed lower with Dec silver at a 1-1/2 month low and Dec copper at a 1-week low. Metals prices were undercut by the stronger-than-expected U.S. economic data on Q3 GDP and Oct pending home sales, which bolsters the case for tighter Fed policy, and by fund selling of copper and silver on concern a slowdown in China's economy will curb its demand for industrial metals.

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