Morning Call For March 9, 2016

OVERNIGHT MARKETS AND NEWS

March E-mini S&Ps (ESH16 +0.56%) are up +0.49% and European stocks are up +1.35% on speculation that the ECB on Thursday will deliver a package of easing measures to spur economic growth. Energy and raw-material producing stocks are higher as the price of crude oil and copper rose. Crude oil had initially moved lower after the API late yesterday reported a +4.4 million bbl increase in U.S. crude inventories. However, crude recovered losses and is up +1.53% on the outlook for lower future U.S. crude production after the EIA cut its U.S. 2017 crude output forecast. Asian stocks settled mixed: Japan -0.84%, Hong Kong -0.08%, China -1.34%, Taiwan -0.35%, Australia +0.96%, Singapore +1.14%, South Korea +0.29%, India +0.55%.

The dollar index (DXY00 +0.16%) is up +0.17%. EUR/USD (^EURUSD) is down -0.33%. USD/JPY (^USDJPY) is down -010% at a 1-week low.

Jun T-note prices (ZNM16 -0.27%) are down -11.5 ticks.

The Energy Information Administration (EIA) in its monthly Short-Term Energy Outlook projected that U.S. 2017 crude production will fall -5.5% y/y to 8.19 million bpd, less than the 8.46 million bpd previously forecast and a 4-year low.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly MBA mortgage applications (previous -4.8% with purchase sub-index -0.6% and refi sub-index -7.2%), (2) Jan wholesale inventories (expected -0.2%, Dec -0.1% m/m) and Jan wholesale trade sales (expected -0.3% m/m, Dec -0.3% m/m), (3) the Treasury’s auction of $20 billion of 10-year T-notes, (4) EIA Weekly Petroleum Status Report, and (5) USDA Mar WASDE crop production.

There are 2 of the Russell 1000 companies that report earnings today: Tahoe Resources (consensus $0.12), Square Inc (-0.14).

U.S. IPO’s scheduled to price today: KLR Acquisition Group (KLREU)

Equity conferences this week include: Raymond James Institutional Investors Conference on Mon-Wed, J.P. Morgan Aviation, Transportation & Industrials Conference on Tue-Wed, Piper Jaffray Technology Symposium on Tue-Wed, RBC Capital Markets Financial Institutions Conference on Tue-Wed, UBS Global Consumer Conference on Wed-Thu, JPMorgan Chase & Co., Inc Aviation, Transportation and Industrials Conference on Tue-Thu, J.P. Morgan Gaming, Lodging, Restaurant & Leisure Management Access Forum on Thu.