Mar E-mini S&Ps (ESH18 -0.03%) this morning are down -0.28% and European stocks are down -1.38% as weakness in mining and energy stocks leads declines in the overall market. A +21,125 MT jump in LME copper inventories to a 6-3/4 month high raises copper demand concerns and sent Mar COMEX copper (HGH18 -0.36%) down -0.42% to a 1-3/4 month low. Copper prices were also weighed down on concern Chinese copper demand will dwindle with the upcoming week-long Lunar New Year holidays beginning next week. Wednesday's EIA data that showed U.S. crude production rose to a 47-year high of 10.251 million bpd continues to weigh on oil prices with Mar WTI crude (CLH18 -0.87%) down -0.83% to a 1-month low. As expected, the BOE kept its benchmark interest rate unchanged at 0.5% and maintained its asset purchase target at 435 billion pounds following today's monetary policy meeting but 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. Asian stocks settled mostly higher: Japan +1.13%, Hong Kong +0.42%, China -1.43%, Taiwan -0.22%, Australia +0.24%, Singapore +0.95%, South Korea +0.37%, India +0.97%. Most Asian equity markets settled higher, although China's Shanghai Composite tumbled to a 5-3/4 month low, despite stronger-than-expected Jan trade data that showed China's trade surplus fell to an 11-month low.
The dollar index (DXY00 +0.23%) is up +0.15% at a 2-week high after Dallas Fed President Kaplan said the base case for 2018 remains for three rate hikes. EUR/USD (^EURUSD) is down -0.21%. USD/JPY (^USDJPY) is up +0.35%.
Mar 10-year T-note prices (ZNH18 -0.14%) are down -2 ticks.
Dallas Fed President Kaplan said "I expect we are going to see further tightening in an already tight labor market. I think that should create some wage pressure." He added that "recent market correction and volatility in and of itself is not a concern" and the base case for 2018 remains for three rate hikes.
The China Jan trade balance shrank to a surplus of +$20.34 billion, narrower than expectations of +$54.65 billion and the smallest surplus in 11 months. Jan exports rose +11.1% y/y, stronger than expectations of +10.7% y/y. Jan imports jumped +36.9% y/y, stronger than expectations of +10.6% y/y and the biggest increase in 11 months.
The German Dec trade balance shrank to a surplus of +18.2 billion euros, narrower than expectations of -21.0 billion euros and the smallest surplus in 8 months. Dec exports unexpectedly rose +0.3% m/m, stronger than expectations of -1.0% m/m. Dec imports rose +1.4% m/m, stronger than expectations of -0.7% m/m.
Key U.S. news today includes: (1) weekly initial unemployment claims (expected +2,000 to 232,000, previous -1,000 to 230,000) and continuing claims (expected -13,000 to 1.940 million, previous +13,000 to 1.953 million), (2) USDA weekly Export Sales, (3) Treasury announces amount of 30-year TIPS to be auctioned Feb 15 (previous $5 billion), (4) USDA Feb WASDE crop production, (5) Treasury auctions $16 billion 30-year T-bonds.
Notable S&P 500 earnings reports today include: Tyson Foods (consensus $1.50), CVS Health (1.89), NVIDIA (1.30), Cardinal Health (1.15), Expedia (1.15), BorgWarner (1.01), VeriSign (0.97), Kellogg (0.96), Viacom (0.93), Nielsen (0.81), Yum Brands (0.80), Goodyear (0.78), AIG (0.76), Hartford Financial Services (0.74), Republic Services (0.57), Hanesbrands (0.52), News Corp (0.19).
U.S. IPO's scheduled to price today: Quintana Energy Services (QES), IPSCO Tubulars (IPSC), Cardlytics (CDLX), Motus GI Holdings (MOTS).
Equity conferences this week: Cowen Aerospace/Defense Conference on Wed-Thu, Capital Link Greek Shipping Forum on Thu, American Society of Clinical Oncology Genitourinary Cancers Symposium on Thu-Fri.
Coherent (COHR -1.54%) dropped 5% in after-hours trading after it reported Q1 gross margin of 45.4%, weaker than consensus of 46.1%.
iRobot (IRBT +1.09%) plunged 20% in after-hours trading after it forecast 2018 EPS of $2.10 to $2.35, well below a GAAP estimate of $2.80.
Sage Therapeutics (SAGE -1.40%) lost over 1% in after-hours trading after it announced that it had commenced an underwritten public offering of $575 million of its common stock.
Take-Two Interactive Software (TTWO -0.91%) fell 6% in after-hours trading after it reported Q3 adjusted revenue of $653.9 million, below consensus of $663 million.
Enanta Pharmaceuticals (ENTA -3.35%) rose nearly 3% in after-hours trading after it reported Q1 EPS of 59 cents, well above consensus of 19 cents.
Synaptics (SYNA +0.12%) climbed over 6% in after-hours trading after it reported Q2 adjusted EPS of $1.11, higher than consensus of $1.08.
Yelp (YELP +1.49%) slumped nearly 9% in after-hours trading after it said it sees Q1 adjusted Ebitda of $29 million to $32 million, weaker than consensus of $38 million.
CSRA (CSRA +2.62%) rose over 3% in after-hours trading after it reported Q3 revenue of $1.31 billion, better than consensus of $1.27 billion, and said it sees full-year revenue of $5.15 billion to $5.20 billion, the midpoint above consensus of $5.15 billion.
Lannett (LCI +3.03%) sank 18% in after-hours trading after it said it sees full-year net sales of $680 million to $700 million, below consensus of $719 million.
Inphi (IPHI -7.42%) fell almost 6% in after-hours trading after it forecast an unexpected Q1 adjusted EPS loss of -4 cents to -6 cents, below consensus for EPS of 17 cents.
Amicus Therapeutics (FOLD +3.24%) rose almost 3% in after-hours trading after it said data shows patients with Pompe disease continued to see improved motor function for up to 12 months in a study of its ATB200/AT2221 combination therapy.
TTM Technologies (TTMI -0.51%) dropped nearly 10% in after-hours trading after it said it sees Q1 adjusted EPS of 22 cents to 28 cents, well below consensus of 36 cents.
Infinera (INFN +1.02%) rallied 6% in after-hours trading after it reported Q4 adjusted revenue of $195.8 million, better than consensus of $190.4 million.
GAIN Capital Holdings (GCAP -2.97%) jumped 7% in after-hours trading after it reported Jan retail segment OTC trading volume was up +18.6% y/y.
Mar S&P 500 E-mini stock futures (ESH18 -0.03%) this morning are down -7.50 points (-0.28%). Wednesday's closes: S&P 500 +1.74%, Dow Jones +2.33%, Nasdaq +2.62%. The S&P 500 on Wednesday closed lower on continued interest rate concerns after the 10-year T-note yield moved up to just below Monday's 4-year high. There was also weakness in energy stocks after crude oil prices tumbled -2.52% to a 4-week low. Stocks found some support from upbeat comments from Chicago Fed President Evans who said the U.S. economy is "firing on all cylinders."
Mar 10-year T-note prices (ZNH18 -0.14%) this morning are down -2 ticks. Wednesday's closes: TYH8 -15.50, FVH8 -8.25.Mar 10-year T-notes on Wednesday closed lower on the rally in stocks, which curbed safe-haven demand for T-notes, and on hawkish comments from Chicago Fed President Evans who said he sees a "hint" of inflation pressures. There were also supply pressures as the Treasury auctioned $24 billion of 10-year T-notes.
The dollar index (DXY00 +0.23%) this morning is up +0.131 (+0.15%) at a new 2-week high. EUR/USD (^EURUSD) is down -0.0026 (-0.21%) at a 2-week low and USD/JPY (^USDJPY) is up +0.38 (+0.35%). Wednesday's closes: Dollar Index +0.670 (+0.75%), EUR/USD -0.0113 (-0.91%), USD/JPY -0.23 (-0.21%). The dollar index on Wednesday climbed to a 2-week high and closed higher on upbeat comments from Chicago Fed President Evans who said the U.S. economy is "firing on all cylinders." The dollar was also boosted by the increase in the 10-year T-note yield, which bolsters the dollar's interest rate differentials.
Mar crude oil (CLH18 -0.87%) this morning is down -51 cents (-0.83%) at a new 1-month low and Mar gasoline (RBH18-0.33%) is -0.0071 (-0.40%). Wednesday's closes: Mar WTI crude -0.76 (-1.18%), Mar gasoline -0.0414 (-2.24%). Mar crude oil and gasoline on Wednesday closed lower with Mar crude at a 4-week low and Mar gasoline at a 1-month low. Crude oil prices were undercut by the rally in the dollar index to a 2-week high and by the +3.3% increase in U.S. crude production in the week of Feb 2 to 10.251 million bpd, a 47-year high. Gasoline prices were undercut by the +3.41 million bbl increase in EIA gasoline inventories to an 11-month high, more than expectations of +500,00 bbl.
Metals prices this morning are mixed with Apr gold (GCJ18 -0.37%) -0.9 (-0.07%), Mar silver (SIH18 -0.14%)+0.022 (+0.14%), and Mar copper (HGH18 -0.36%) -0.013 (-0.42%) at a 1-3/4 month low. Wednesday's closes: Apr gold -14.9(-1.12%), Mar silver -0.342 (-2.06%), Mar copper -0.1015 (-3.18%). Metals on Wednesday closed lower with Apr gold at a 3-1/2 week low and Mar copper and Mar silver at 1-1/2 month lows. Metals prices were undercut by the rally in the dollar index to a 2-week high and by concern the recent volatility and sell-off in stocks will curb economic activity and reduce demand for industrial metals.