Morning Call For Tuesday, February 27

OVERNIGHT MARKETS AND NEWS

Mar E-mini S&Ps (ESH18 -0.19%) this morning are down -0.26% and European stocks are down -0.29% as the markets await the first public comments later this morning from new Fed Chair Powell. Signs of increased M&A activity have contained losses in equities after Comcast bid $31 billion for Sky Plc, the UK’s biggest pay-tv company. The 10-year T-note yield is up slightly after falling to a 1-week low on Monday. Asian stocks settled mixed: Japan +1.07%, Hong Kong -0.73%, China -1.13%, Taiwan -0.20%, Australia +0.24%, Singapore -0.43%, South Korea -0.16%, India -0.29%. Japan’s Nikkei Stock Index rallied to a 3-week high as Apple suppliers gained after a report said Apple is preparing to release three new smartphones later this year. Japanese stocks also found carry-support from Monday’s rally in U.S. stocks amid speculation Fed Chair Powell will keep former Fed Chair Yellen’s gradual pace to raising interest rates.

The dollar index (DXY00 +0.03%) is up +0.03%. EUR/USD (^EURUSD) is unchanged. USD/JPY (^USDJPY) is up +0.04%.

Mar 10-year T-note prices (ZNH18 -0.09%) are down -3.5 ticks.

Eurozone Jan M3 money supply rose +4.6% y/y, right on expectations.

Eurozone Feb economic confidence fell -0.8 to 114.1, close to expectations of -0.7 to 114.0. The Feb business climate indicator fell -0.08 to 1.48, close to expectations of -0.07 to 1.47.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Jan durable goods orders (expected -2.0% and +0.5% ex transportation, Dec +2.8% and +0.7% ex transportation), (2) Jan wholesale inventories (expected +0.4%, Dec +0.4%), (3) FHFA Dec house price index (expected +0.4% m/m, Nov +0.4% m/m), (4) Dec S&P CoreLogic composite-20 home price index (expected +0.6% m/m and +6.35% y/y, Nov +0.75% m/m and +6.41% y/y), (5) Fed Chair Jerome Powell delivers the Fed’s semi-annual monetary policy report to the House Financial Services Committee, (6) Feb Richmond Fed manufacturing index (expected +1 to 15, Jan -6 to 14), (7) Conference Board Feb U.S. consumer confidence (expected +1.0 to 126.4, Jan +2.3 to 125.4).