Morning Call: Global stocks mostly higher; Dec E-mini S&Ps down -0.03%; Euro Stoxx 50 up +0.65% at a 3-week high; Dec COMEX copper up +1.92% at a 6-week high.
Related Stocks
 ESZ18 - S&P 500 E-Mini
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ESZ182,602.00s-43.50-1.64%
HGZ182.7605s-0.0020-0.07%
DXY0097.443s+0.379+0.39%
ZNZ18120-145s+0-055+0.14%
GCZ181,237.0s-5.7-0.46%
SIZ1814.513s-0.216-1.47%
CLX1869.17s+0.05+0.07%
RBX181.7680s-0.0379-2.10%
AA28.61-0.49-1.68%
ROLL135.53+0.32+0.24%
TXN94.26-1.58-1.65%
EDIT28.45-0.49-1.69%
MU34.20-0.82-2.34%
CRSP32.69-0.75-2.24%
VNDA26.24+0.09+0.34%
UNFI10.94-0.65-5.61%
KALV22.68-0.71-3.04%
SCS14.32-0.26-1.78%
FATE15.88-0.17-1.06%
WMC9.69-0.05-0.51%
HLIT5.15-0.27-4.98%
PIR1.15-0.02-1.71%

Overnight Markets and News

Dec E-mini S&Ps (ESZ18 -0.03%) this morning are little changed, down -0.03%, and European stocks are up +0.65% at a 3-week high. Stock and commodity prices are climbing on optimism the global economic expansion can continue. Mining stocks and raw-material producers are leading gains in the overall market as metals prices climb with Dec COMEX copper (HGZ18 +1.84%) up +1.92% at a 6-week high. Signs of tighter copper supplies are boosting copper prices after weekly Shanghai copper inventories tumbled -23,537 MT to a 10-3/4 month low of 111,029 MT. Gains in U.S. stock indexes were limited due to weakness in technology stocks, led by a -3% decline in Micron in pre-market trading, after the company forecast weaker-than-expected Q1 sales. European stocks moved higher despite signs of slower manufacturing activity after the Eurozone Sep Markit manufacturing PMI fell -1.3 to 53.3, the slowest pace of expansion in 2-years. Asian stocks settled mostly higher: Japan +0.82%, Hong Kong +1.73%, China +2.50%, Taiwan +1.30%, Australia +0.41%, Singapore +1.17%, South Korea +0.59%, India -0.75%. China's Shanghai Composite rallied to a 1-1/4 month high as market confidence has improved for Chinese stocks after Chinese Premier Li Keqiang late Wednesday said the government will adopt more significant tax cuts to help boost domestic consumption. Japan's Nikkei Stock Index rallied to a 7-3/4 month high and moved higher on the heels of the rally in the S&P 500 on Thursday to a new record high, along with weakness in the yen that boosts exporters' earnings prospects as USD/JPY jumped to a 2-month high.

The dollar index (DXY00 +0.13%) is up +0.15%. EUR/USD (^EURUSD -0.10%) is down -0.08%. USD/JPY (^USDJPY +0.17%) is up +0.21% at a 2-month high .

Dec 10-year T-note prices (ZNZ18 +0-010) are little changed, down -0.5 of a tick.

The German Sep Markit/BME manufacturing PMI fell -2.2 to 53.7, weaker than expectations of -0.2 to 55.7 and the slowest pace of expansion in 2-years.

The Eurozone Sep Markit manufacturing PMI fell -1.3 to 53.3, weaker than expectations of -0.1 to 54.5 and the slowest pace of expansion in 2-years. The Eurozone Sep Markit composite PMI fell -0.3 to 54.2, weaker than expectations of no change at 54.5.

Japan Aug national CPI rose +1.3% y/y, stronger than expectations of +1.1% y/y and the fastest pace of increase in 6-months. Aug national CPI ex fresh food rose +0.9% y/y, right on expectations. Aug national CPI ex fresh food & energy rose +0.4% y/y, right on expectations.

U.S. Stock Preview

Key U.S. news today includes: (1) Sep Markit manufacturing PMI (expected +0.3 to 55.0, Aug -0.6 to 54.7) and Sep Markit services PMI (expected +0.2 at 55.0, Aug -1.2 to 54.8).

Notable Russell 2000 earnings reports today include: none.

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

Equity conferences during the remainder of this week: none.


Market Comments

Dec S&P 500 E-minis (ESZ18 -0.03%) this morning are down -1.00 point (-0.03%). Thursday's closes: S&P 500 +0.78%, Dow Jones +0.95%, Nasdaq 100 +1.05%. The S&P 500 on Thursday soared to a new all-time high and closed higher on a slight easing of trade tensions on reports that China plans to cut the average tariff on imports from the majority of its trading partners as soon as next month. Stocks were also supported by favorable economic data with the unexpected -3,000 decline in U.S. weekly initial unemployment claims to a 48-3/4 year low of 201,000 (better than expectations of +6,000 to 210,000) and the U.S. Sep Philadelphia Fed business outlook index of +11.0 to 22.9 (stronger than expectations of +6.1 to 18.0).

Dec 10-year T-notes (ZNZ18 +0-010) this morning are down -0.5 of a tick. Thursday's closes: TYZ8 +1.00, FVZ8 unch. Dec 10-year T-notes on Thursday recovered from a 3-3/4 month low and closed higher on the weaker-than-expected U.S. Aug existing home sales report and on curve-flattening trades as bond dealers bought longer-dated government debt and sold shorter-dated government debt. T-note prices were undercut by the unexpected drop in U.S. weekly jobless claims to a 48-3/4 year low and by the rally in the S&P 50 to a new record high, which curbed safe-haven demand for T-notes.

The dollar index (DXY00 +0.13%) this morning is up +0.141 (+0.15%), EUR/USD (^EURUSD -0.10%) is down -0.0010 (-0.08%), and USD/JPY (^USDJPY +0.17%) is up +0.24 (+0.21%) at a 2-month high. Thursday's closes: Dollar Index -0.625 (-0.66%), EUR/USD +0.0104 (+0.89%), USD/JPY +0.21 (+0.19%). The dollar index on Thursday tumbled to a 2-1/4 month low and closed lower on trade concern after negotiators said a trade deal on Nafta between the U.S. and Canada was unlikely this week. There was also a rally in GBP/USD to a 2-1/4 month high since the stronger-than-expected UK Aug retail sales report was hawkish for BOE policy.

Metals prices this morning are mixed with Dec gold (GCZ18 -0.10%) -1.9 (-0.16%), Dec silver (SIZ18 +0.73%) +0.080 (+0.56%) at a 2-week high and Dec copper (HGZ18 +1.84%) +0.053 (+1.92%) at a 6-week high. Thursday's closes: Dec gold +3.0 (+0.25%), Dec silver +0.025 (+0.18%), Dec copper +1.05 (+0.38%). Metals on Thursday settled mixed. Metals prices were undercut by the rally in the S&P 500 to a new record high, which reduced the safe-haven demand for precious metals. Copper prices were undercut by the weaker-than-expected U.S. Aug existing home sales report. Metals prices were supported by the fall in the dollar index to a 2-1/4 month low.

Nov WTI crude oil prices (CLX18 +0.75%) this morning are up +52 cent s(+0.74%) and Nov gasoline (RBX18 +1.06%) is up +2.14 (+1.07%). Thursday's closes: Nov crude oil -0.45 (-0.64%), Nov gasoline -0.72 (-0.36%). Nov crude oil and gasoline on Thursday closed lower on a tweet from President Trump that OPEC "must get prices down now" and by the slide in the crack spread to a 2-month low, which reduces the incentive for refiners to purchase crude to refine into gasoline. Crude oil prices found support from the fall in the dollar index to a 2-1/4 month low.

Overnight U.S. Stock Movers

Alcoa (AA +0.70%) was rated a new 'Buy' at Berenberg with a price target of $54.

RBC Bearings (ROLL +1.05%) was rated a new 'Overweight' at Alembic Global Advisors with a price target of $179.

Texas Instruments (TXN +1.04%) gained nearly 2% in after-hours trading after it approved a $12 billion stock buyback program and boosted its quarterly dividend to 77 cents from 62 cents, higher than expectations of 75 cents.

Editas Medicine (EDIT -1.87%) was rated a new 'Outperform' at Raymond James with a price target of $40.

Micron (MU +2.22%) fell 3% in after-hours trading after the company on its earnings conference call forecast Q1 revenue of $7.90 billion to $8.30 billion, weaker than consensus of $8.45 billion.

Crispr Therapeutics AG (CRSP -5.59%) was rated a new 'Underperform' at Raymond James.

Vanda Pharmaceuticals (VNDA +2.04%) was rated a new 'Outperform' at Oppenheimer with a price target of $29.

United Natural Foods (UNFI +1.65%) dropped 10% in after-hours trading after it reported Q4 adjusted EPS of 76 cents, weaker than consensus of 85 cents, and then forecast full-year adjusted EPS of $3.48 to $3.58, the midpoint below consensus of $3.54.

KalVista Pharmaceuticals (KALV +10.70%) was rated a new 'Overweight' at Cantor Fitzgerald with a price target of $32.

Steelcase (SCS +5.21%) jumped 12% in after-hours trading after it forecast Q3 revenue of $885 million to $915 million, well above consensus of $832.5 million.

Fate Therapeutics (FATE +5.01%) lost 2% in after-hours trading after it announced that it has commenced an underwritten public offering of $100 million of its common stock.

Western Asset Mortgage Capital Corp (WMC +0.62%) fell 3% in after-hours trading after it announced that it has commenced a public offering of 6.5 million shares of the company's common stock.

Harmonic (HLIT +2.97%) was rated a new 'Buy' at Loop Capital Markets with a price target of $8.25.

Pier 1 Imports (PIR +3.43%) sank more than 19% in after-hours trading after it reported a Q2 preliminary loss of -62 cents to -64 cents a share and said it will discontinue fiscal 2019 guidance at this time.