Morning Call For Friday, April 21

OVERNIGHT MARKETS AND NEWS

Jun E-mini S&Ps (ESM17 +0.12%) this morning are up +0.06% as better-than-expected quarterly earnings results from Honeywell and GE gives the overall market a boost. European stocks are little changed, down -0.06%, as the markets await Sunday’s first round of presidential elections in France that are too close to call. Losses in European stocks were limited after Eurozone Apr manufacturing activity unexpectedly expanded. Asian stocks settled mostly higher: Japan +1.03%, Hong Kong -0.06%, China +0.03%, Taiwan +0.88%, Australia +0.56%, Singapore +0.06%, South Korea +0.82%, India -0.19%. Japan’s Nikkei Stock Index rose to a 1-week high on signs the BOJ will continue with its overly easy monetary policies after BOJ Governor Kuroda said the BOJ will maintain its current pace of asset purchases for some time and that “it’s premature to discuss in an exact way about exit strategy.” The BOJ meets next week and will update its estimates for growth and consumer prices.

The dollar index (DXY00 +0.18%) is up +0.13%. EUR/USD (^EURUSD) is down -0.16%. USD/JPY (^USDJPY) is down -0.21%.

Jun 10-year T-note prices (ZNM17 +0.05%) are up +2.5 ticks.

The Eurozone Apr manufacturing PMI unexpectedly rose +0.6 to 56.8, stronger than expectations of -0.2 to 56.0 and the fastest pace of expansion since the data series began in 2014. The Mar Markit composite PMI rose +0.3 to 56.7, stronger than expectations of unch at 56.4 and the fastest pace of expansion since the data series began in 2014.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Minneapolis Fed President Neel Kashkari (voter) participates in a Q&A at the Hamline University Community Economic Development Symposium in St. Paul, MN, (2) Apr Markit manufacturing PMI (expected +0.5 to 53.8, Mar -0.9 to 53.3) and Apr Markit services PMI (expected +0.4 to 53.2, Mar -1.0 to 52.8), (3) Mar existing home sales (expected +2.2% to 5.60 million, Feb -3.7% to 5.48 million), (4) USDA Mar Cattle on Feed.