December E-mini S&Ps (ESZ15 +0.35%) are up +0.40% and European stocks are up +0.11% after Eurozone unemployment unexpectedly fell to a nearly 4 year low. A rally in British bank stocks is also lending support to the overall market after all seven major British lenders passed BOE stress tests. Asian stocks settled higher: Japan +1.34%, Hong Kong +1.75%, China +0.32%, Taiwan +1.71%, Australia +1.93%, Singapore +0.50%, South Korea +1.83%, India +0.09%. Japan's Nikkei Stock Index rallied up to a 3-1/4 month high after Japan Q3 capital spending rose by the most in over 8 years. China's Shanghai Composite had opened lower after a gauge of Chinese manufacturing activity contracted by the most in over 3 years, but Chinese stocks erased their losses and closed higher as property stocks rallied on speculation the PBOC will loosen monetary policy further.
The dollar index (DXY00 -0.17%) is down 0.16%. EUR/USD (^EURUSD) is up +0.29%. USD/JPY (^USDJPY) is up +0.01%.
Mar T-note prices (ZNH16 -0.12%) are down -5.5 ticks.
The Eurozone Oct unemployment rate unexpectedly fell -0.1 to 10.7%, better than expectations of no change at 10.8% and the lowest in nearly 4 years.
The China Nov manufacturing PMI unexpectedly fell -0.2 to 49.6, weaker than expectations of no change at 49.8 and the steepest pace of contraction in 3-1/4 years. The Nov non-manufacturing PMI rose +0.5 to 53.6.
Japan Q3 capital spending rose +11.2% y/y, stronger than expectations of +2.2% y/y, and Q3 capital spending ex-software also rose +11.2% y/y, stronger than expectations of +1.7% y/y. Both increases were the largest since Q1 of 2007.
Key U.S. news today includes: (1) final-Nov Markit manufacturing PMI (expected unrevised at 52.6, prelim-Nov -1.5 to 52.6), (2) Oct construction spending (expected +0.6%, Sep +0.6% m/m), (3) Nov ISM manufacturing index (expected +0.4 to 50.5, Oct -0.1 to 50.1), (4) a discussion by Chicago Fed President Charles Evans on the economic outlook and monetary policy at a Lansing Regional Chamber of Commerce Economic Club Luncheon, (5) Fed Governor Lael Brainard's speechs on the ”Lower Neutral Rate and its Implications for Monetary Policy” at the Stanford Institute for Economic Policy Research Associates Meeting, and (6) Nov total vehicle sales (expected 18.10 million, Oct 18.12 million).
There are 9 of the Russell 3000 companies report earnings today with notable reports including Guidewire Software (0.03), Ascena Retail (0.29), KLX (0.14), Weis Markets, Bob Evans Farms ($0.39),
U.S. IPO's scheduled to price today: none.
Equity conferences during the remainder of this week include: Citi Chemicals Conference on Tue, Credit Suisse Technology Conference on Tue, Citi Basic Materials Conference on Tue-Wed, Cowen and Company Ultimate Energy Conference on Tue-Wed, Piper Jaffray Health Care Conference on Tue-Wed, Credit Suisse Global Industrials Conference on Tue-Thu, Credit Suisse Technology, Media & Telecom Conference on Tue-Thu, Citi Global Financial Conference on Wed, J.P. Morgan Fintech & Specialty Finance Forum on Wed, Wells Fargo Connected Commerce Investor Summit on Wed, NASDAQ OMX Group, Inc. Investor Program on Wed-Thu, ASEAN Business Summit on Wed-Thu, Bank of America Merrill Lynch Leveraged Finance Conference on Thu.
Mattress Firm Holding (MFRM -2.95%) jumped over 9% in after-hours trading after the company said it will buy Sleepy's for $780 million.
Infoblox (BLOX +0.40%) surged over 15% in after-hours trading after it reported Q1 adjusted EPS of 13 cents, more than double consensus of 6 cents, and then raised guidance on Q2 adjusted EPS to 12 cents-14 cents, higher than consensus of 7 cents.
Joy Global (JOY +1.93%) was downgraded to 'Underperform' from 'Neutral' at Bank of America.
Yum! Brands (YUM -0.62%) was raised to 'Outperform' from 'Market perform' at Cowen.
Allstate (ALL -0.13%) was upgraded to 'Neutral' from 'Sell' at Citigroup.
ITC Holdings (ITC +9.27%) confirmed that it has begun a strategic review that may lead to a possible sale of the company as it works to "maximize value for shareholders."
Shoe Carnival (SCVL -2.79%) reported Q3 EPS of 47 cents, right on consensus, although Q3 revenue of $269.7 million was higher than consensus of $264.4 million.
Thor Industries (THO +0.73%) climbed nearly 4% in after-hours trading after it reported Q1 EPS continuing operations of 97 cents, higher than consensus of 83 cents.
UnitedHealth (UNH -1.43%) lowered guidance on fiscal 2016 revenue to $180 billion-$181 billion, below consensus of $182.5 billion, but still affirmed its fiscal 2016 EPS view of $7.10-$7.30, near the middle of consensus of $7.19.
Andarko Petroleum (APC -1.33%) was ordered to pay $159.5 million to resolve its liability for the 2010 Gulf of Mexico oil spill.
NQ Mobile (NQ +6.05%) sank 10% in after-hours trading after it reported Q3 net revenue of $87.9 million, below consensus of $110 million-$112 million.
The Chemours Company (CC -1.42%) said its plans to reduce its global workforce in 2016 by 400, or 5%.
Zumiez (ZUMZ -9.10%) was downgraded to 'Market Perform' from 'Outperform' at William Blair & Co.
Dec E-mini S&Ps (ESZ15 +0.35%) this morning are up +8.25 points (+0.40%). Monday's closes: S&P 500 -0.46%, Dow Jones -0.44%, Nasdaq -0.34%. The S&P 500 on Monday closed lower on the -7.5 point decline in the Chicago Nov PMI, a bigger decline than expectations of -2.2 to 54.0, and on the +0.2% m/m y/y increase in the U.S. Oct pending home sales, weaker than expectations of +1.0% m/m. There was also weakness in retail and consumer companies on reports of lower Black Friday weekend consumer traffic at brick-and-mortar stores.
Mar 10-year T-notes (ZNH16 -0.12%) this morning are down -5.5 ticks. Monday's closes: TYH6 -2.00, FVH6 -1.50. Mar T-notes on Monday closed lower on the outlook for the FOMC to raise interest rates when it meets in just over two weeks. Supportive factors included the weaker-than-expected Chicago Nov PMI and U.S. Oct pending home sales reports and increased safe-haven demand with the sell-off in stocks.
The dollar index (DXY00 -0.17%) this morning is down -0.160 (-0.16%). EUR/USD (^EURUSD) is up +0.0031 (+0.29%). USD/JPY (^USDJPY) is up +0.01 (+0.01%). Monday's closes: Dollar Index +0.150 (+0.15%), EUR/USD -0.0028 (-0.26%), USD/JPY +0.31 (+0.25%). The dollar index on Monday climbed to a new 8-1/2 month high and closed higher on weakness in EUR/USD, which fell to a 7-1/2 month low on expectations for the ECB on Thursday to cut the bank deposit rate by 10 bp to -0.30% and to expand its QE program. Meanwhile, USD/JPY rallied to a 1-week high on the smaller-than-expected increase in Japan Oct industrial production report.
Jan crude oil (CLF16 +0.07%) this morning is up +19 cents (+0.46%) and Jan gasoline (RBF16 +3.48%) is up +0.0523 (+4.00%). Monday's closes: CLF6 -0.06 (-0.14%), RBF6 -0.0217 (-1.62%). Jan crude oil and gasoline prices on Monday erased an early rally and closed lower on the rally in the dollar index to an 8-1/2 month high and comments by Iranian Oil Minister Zanganeh who said that he expects no change to OPEC's production target when the cartel meets on Friday.
|US||0945 ET||Final-Nov Markit manufacturing PMI expected unrevised at 52.6, prelim-Nov -1.5 to 52.6.|
|1000 ET||Oct construction spending expected +0.6%, Sep +0.6% m/m.|
|1000 ET||Nov ISM manufacturing index expected +0.4 to 50.5, Oct -0.1 to 50.1. Nov ISM new orders, Oct +2.8 to 52.9. Nov ISM employment, Oct-2.9 to 47.6. Nov ISM prices paid expected +1.0 to 40.0, Oct +1.0 to 39.0.|
|1245 ET||Chicago Fed President Charles Evans discusses the economic outlook and monetary policy at a Lansing Regional Chamber of Commerce Economic Club Luncheon.|
|2000 ET||Fed Governor Lael Brainard speaks on the Lower Neutral Rate and its Implications for Monetary Policy at the Stanford Institute for Economic Policy Research Associates Meeting.|
|n/a||Nov total vehicle sales expected 18.10 million, Oct 18.12 million. Nov domestic vehicle sales expected 14.25 million units, Oct 14.14 million.|
|JPN||0000 ET||Japan Nov vehicle sales, Oct +0.2% y/y.|
|GER||0355 ET||German Nov unemployment change expected -5,000, Oct -5,000. Nov unemployment rate expected unch at 6.4%.|
|0355 ET||Revised German Nov Markit/BME manufacturing PMI, preliminary +0.5 to 52.6.|
|EUR||0400 ET||Revised Eurozone Nov Markit manufacturing PMI, preliminary +0.5 to 52.8.|
|0500 ET||Eurozone Oct unemployment rate expected unch at 10.8%.|
|UK||0430 ET||UK Nov Markit manufacturing PMI expected -1.9 to 53.6, Oct 55.5.|
|Johnson Controls Inc||JCI US||8:00||Analyst Day - Strategic Review||Y 2015|
|UnitedHealth Group Inc||UNH US||8:00||Q4 2016 Guidance Call||Q4 2016|
|Aramark||ARMK US||8:00||Investor Meeting||Y 2015|
|Verisk Analytics Inc||VRSK US||8:30||Investor Day||Y 2015|
|WEX Inc||WEX US||9:00||Investor Meeting||Y 2015|
|Ford Motor Co||F US||9:15||November 2015 Sales and Revenue Release||2015|
|Ford Motor Co||F US||10:00||November 2015 Sales and Revenue Call||2015|
|Garmin Ltd||GRMN US||17:00||ITC to Announce Final Decision in Navico Inc. vs. Garmin Ltd. Patent Case|