Morning Call For Wednesday, Nov. 8

OVERNIGHT MARKETS AND NEWS

Dec E-mini S&Ps (ESZ17 -0.11%) this morning are down -0.12% on concern about the progress on U.S. tax reform after the Washington Post reported that Senate Republican leaders were considering holding tax cuts back a year. European stocks are down -0.31% at a 1-1/2 week low, led by losses in banking stocks, as Credit Agricole slid 3% after it reported a slump in trading revenue. Mining stocks are weaker as well, as Dec COMEX copper (HGZ17 -0.24%) dropped -0.06% to a 4-week low on Chinese demand concerns after China Oct copper imports fell -30% m/m to 330,000 MT, the smallest amount in 6 months. Asian stocks settled mixed: Japan -0.10%, Hong Kong -0.30%, China +0.06%, Taiwan -0.20%, Australia +0.03%, Singapore +0.24%, South Korea +0.31%, India -0.46%. China’s Shanghai Composite rallied to a 1-3/4 year high on signs of stronger domestic demand after China Oct imports rose more than expected, although stocks gave up most of their gains on economic growth concerns after China Oct exports rose less than expected.

The dollar index (DXY00 -0.01%) is down -0.08%. EUR/USD (^EURUSD) is up +0.06%. USD/JPY (^USDJPY) is down -0.34%.

Dec 10-year T-note prices (ZNZ17 -0.04%) are down -1 tick.

Philadelphia Fed President Harker said he has “not at this point” seen anything that would push him away from a Fed rate hike at next month’s FOMC meeting, but he wants to see signs of inflation moving higher before backing additional rate hikes next year.

The China Oct trade balance widened to a surplus of $38.17 billion, smaller than expectations of $39.10 billion. Oct exports rose +6.9% y/y, weaker than expectations of +7.1% y/y. Oct imports rose +17.2% y/y, stronger than expectations of +17.0% y/y.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly MBA mortgage applications (previous -2.6% with purchase sub-index -0.8% and refi sub-index -4.5%), (2) Treasury auctions $23 billion of 10-year T-notes, (3) EIA weekly Petroleum Status Report.

Notable S&P 500 earnings reports today include: Humana (consensus $3.26), Regeneron Pharma (3.84), Rockwell Automation (1.72), Equifax (1.49), Twenty-First Century Fox (0.49), MGM Resorts (0.34), Monster Beverage (0.40).