Morning Call For December 7, 2015

OVERNIGHT MARKETS AND NEWS

December E-mini S&Ps (ESZ15 +0.20%) are up +0.14% after Friday’s stronger-than-expected U.S. Nov non-farm payrolls boosted confidence that the economy is strong enough to handle an expected interest rate increase at next week’s FOMC meeting. Stock index futures fell back from their best levels as energy producers declined after the price of crude oil (CLF16 -1.58%) tumbled below $40 a barrel to a 3-week low on negative carryover from last Friday when when OPEC made no pretense of any attempt to cut production and instead raised its production target to 31.5 million bpd from 30 million bpd. European stocks are up +1.58 % on speculation last week’s rout in equities was overdone after ECB stimulus measures disappointed. European stocks shrugged off the weaker-than-expected German Oct industrial production and Eurozone Dec Sentix investor confidence. Asian stocks settled mixed: Japan +0.99%, Hong Kong -0.15%, China +0.34%, Taiwan +0.66%, Australia +0.08%, Singapore +0.76%, South Korea -0.61%, India -0.42%. 

The dollar index (DXY00 +0.46%) is up +0.44%. EUR/USD (^EURUSD) is down -0.64%. USD/JPY (^USDJPY) is up +0.28%.

Mar T-note prices (ZNH16 -0.02%) are little changed, up +0.5 of a tick.

German Oct industrial production rose +0.2% m/m and was unch y/y, weaker than expectations of +0.8% m/m and +0.7% y/y.

The Eurozone Dec Sentix investor confidence rose +0.6 to 15.7, less than expectations of +1.9 to 17.0.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) St. Louis Fed President James Bullard’s speech about the U.S. economy and monetary policy at Ball State University in Muncie, IN, and (2) Oct consumer credit (expected +$19.0 billion, Sep +$28.918 billion).

There are 8 of the Russell 1000 companies report earnings today: H&R Block (consensus -$0.48).

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

Equity conferences this week include: American Society of Hematology Meeting on Mon, Raymond James Technology and Communications Investors Conference on Mon-Wed, UBS Global Media and Communications Conference on Mon-Wed, Business Insider’s Ignition Future of Digital Conference on Tue, Citi Global Technology Conference on Tue, Barclays Global Technology, Media and Telecommunications Conference on Tue-Wed, Goldman Sachs U.S. Financial Services Conference on Tue-Wed, Oppenheimer Health Care Conference on Tue-Wed, Wells Fargo Energy Symposium, Bank of America Merrill Lynch Paper, Packaging and Builders Conference on Wed-Thu, Capital One Financial Corp Energy Conference on Wed-Thu, 10th Annual Energy Conference on Thu.