**Overnight Markets and News**
*Sep E-mini S&Ps (ESU18 -0.28%) this morning are down -0.30% at a 1-week low and European stocks are down -0.70% at a 1-1/4 month low on concern of contagion of the Turkey economic crisis to European banks. Losses in European bank stocks led the overall market lower as the Turkish lira plunged to a record low of 7.2362 against the dollar and the 2-year yield on Turkey's government bond soared to a 10-year high of 25.7%. The lira recovered from its worst levels but was still down more than 7% after Turkey's central bank took steps to boost liquidity. Investors flocked into the safety of government bonds due to the Turkish financial crisis as the 10-year yield on the German bund fell to a 5-week low of 0.306%. A 10% plunge in Bayer AG also undercut European stocks after Bayer's newly acquired Monsanto was found liable by a San Francisco state court late Friday and ordered to pay $250 million in punitive damages and $39 million in compensatory damages after the jury decided that Monsanto's Roundup weed killer caused a California's groundskeeper's cancer. Asian stocks settled lower: Japan -1.98%, Hong Kong -1.52%, China -0.34%, Taiwan -2.14%, Australia -0.42%, Singapore -1.20%, South Korea -1.29%, India -0.59%, Turkey 04.14%. USD/JPY tumbled to a 1-1/2 month low and spurred losses in Japanese exporter stocks that helped push Japan's Nikkei Stock Index down to a 1-month low.
*The dollar index (DXY00 +0.11%) is up +0.10% at a 13-1/2 month high. EUR/USD (^EURUSD -0.29%) is down -0.32% at a 13-1/4 month low on concern about European banks' exposure to Turkey. USD/JPY (^USDJPY -0.42%) is down -0.39% at a 1-1/2 month high as The Turkish crises fueled safe-haven demand for the yen.
*Sep 10-year T-note prices (ZNU18 +0-025) are little changed, down -0.5 of a tick.
*Turkey's central bank raised the collateral forex deposit limits for Turkish lira transactions to 20 billion euros from 7.2 billion euros. The central bank also said banks' current foreign exchange deposit limits of around $50 billion may be increased and utilization limits may be improved if deemed necessary.
**Overnight U.S. Stock Movers**
*Planet Fitness (PLNT +6.46%) was downgraded to 'Neutral' from 'Overweight' at JPMorgan Chase with a price target of $50.
*Bank OZK (OZK -0.17%) was downgraded to 'Underweight' from 'Overweight' at Barclays with a price target of $38.
*AGCO (AGCO -3.25%) was downgraded to 'Underweight' from 'Neutral at JPMorgan Chase with a price target of $55.
*Dollar Tree (DLTR -0.29%) was upgraded to 'Overweight' from 'Neutral' at Atlantic Equities LLP with a price target of $110.
*Papa John's (PZZA -2.87%) was upgraded to 'Buy' from 'Neutral' at Longbow Research with a price target of $52.
*Mylan NV (MYL +1.64%) was upgraded to 'Outperform' from 'Sector Perform' at RBC Capital Markets with a price target of $51.
*Third Point Off Shore Investors Ltd announced that it had acquired a 3.1% stake in NXP Semiconductors NV (NXPI -1.17%) at the end of Q2.
*Establishment Lab Holdings (ESTA +2.63%) was rated a new 'Buy' at Jeffries with a price target of %35.
*Aramark (ARMK +2.01%) was rated a new 'Outperform' at Credit Suisse with a price target of $52.
*Energen (EGN +0.03%) may move higher initially this morning after Icahn Associates acquired an additional 657,077 shares in Energen from Aug 8-10 and raised its stake in the company to 6.72 million shares, making it the fifth largest shareholder in the company.
*Amicus Therapeutics (FOLD +1.59%) rose 2% in after-hours trading after the company won FDA approval for its Galafold drug to treat Fabry disease.
*ADT (ADT +5.08%) was rated a new 'Outperform' at Credit Suisse with a price target of $12.50.
**U.S. Stock Preview**
*Key U.S. news today includes: (1) USDA weekly grain export inspections, (2) USDA weekly Crop Progress.
*Notable Russell 2000 earnings reports today include: Sysco (consensus $0.93), AXA Equitable (0.86), Switch (0.04).
*U.S. IPO's scheduled to price today: none.
*Equity conferences during the remainder of this week: MESC Annual Conference on Mon, KeyBanc Capital Markets Technology Leadership Forum on Mon-Tue, Susquehanna Energy Conference on Tue, Nomura Instinet Cloud Builders Summit on Tue, D&H Technology Conference 2018 on Thu.
**Market Comments**
*Sep S&P 500 E-minis (ESU18 -0.28%) this morning are down -8.50 points (-0.30%) at a 1-week low. Friday's closes: S&P 500 -0.71%, Dow Jones -0.77%, Nasdaq 100 -0.79%. The S&P 500 on Friday fell to a 1-week low and closed lower on negative carry-over from a slump in European stocks to a 1-month low after the ECB expressed concern about contagion of the Turkish financial crisis to European banks on the risk Turkish borrowers could start to default on foreign-currency loans. Another negative for stocks was signs of rising inflation after the U.S. Jul CPI ex food and energy rose +2.4% y/y, stronger than expectations of +2.3% y/y and the largest year-on-year increase in 9-3/4 years.
*Sep 10-year T-notes (ZNU18 +0-025) this morning are down -0.5 of a tick. Friday's closes: TYU8 +21.00, FVU8 +12.75. Sep 10-year T-notes on Friday rallied to a 3-week high and closed higher on increased safe-haven demand for T-notes as U.S and European stocks plunged on concern Turkey's financial crisis may spread to European banks. T-notes also garnered support on a decline in inflation expectations after the 10-year T-note breakeven inflation rate fell to a 3-week low.
*The dollar index (DXY00 +0.11%) this morning is yp +0.101 (+0.10%) at a 13-1/2 month high. EUR/USD (^EURUSD -0.29%) is down -0.0036 (-0.32%) at a 13-1/4 month low. USD/JPY (^USDJPY -0.42%) is down -0.43 (-0.39%) at a 1-1/2 month low. Friday's closes: Dollar Index +0.853 (+0.89%), EUR/USD -0.0114 (-0.99%), USD/JPY -0.25 (-0.23%). The dollar index on Friday rallied to a 13-month high and closed higher due to weakness in EUR/USD which slumped to a 13-month low on the threat of contagion of Turkey's financial turmoil to European banks after the Financial Times reported the ECB was concerned about the exposure of several European banks to Turkish loans which could be defaulted on due to the plunge in the Turkish lira. The dollar also moved higher after the Russian ruble dropped to a 2-year low against the dollar on risk of U.S. sanctions on Russian government debt.
*Metals this morning are weaker with Dec gold (GCZ18 -1.26%) -10.6 (-0.87%) at a 17-month low, Sep silver (SIU18 -1.11%) -0.115 (-0.75%) and Sep copper -0.019 (-0.67%). Friday's closes: Dec gold -0.9 (-0.07%), Sep silver -0.167 (-1.08%), Sep copper (HGU18 -0.97%) -0.0230 (-0.83%). Metals on Friday closed lower due to the surge in the dollar index to a 13-month high along with concern the financial turmoil in Turkey and the China/U.S. trade tensions will curb global economic growth and industrial metals demand. A supportive factor for gold was increased safe-haven demand on the threat of contagion of Turkey's financial crisis to European banks as Turkish borrowers that are not hedged could start to default on foreign-currency loans. Copper prices also had support on signs of tighter copper supplies after weekly Shanghai copper inventories fell -21,710 MT to a 6-1/2 month low of 171,107 MT.
*Sep WTI crude oil (CLU18 -0.50%) this morning is down -34 cents (-0.50%). Sep gasoline (RBU18 -0.49%) is down -0.98 cents (-0.48%). Friday's closes: Sep crude oil +0.82 (+1.23%), Sep gasoline +3.93 (+1.97%). Sep crude oil and gasoline on Friday closed higher after the IEA raised its global 2018 oil demand forecast to 99.2 million bpd from 99.1 million bpd and after IEA data showed Saudi Arabian Jul crude output fell by -110,000 bpd to 10.35 million bpd. The main bearish factor was the rally in the dollar index to a 13-month high.
General Advice Disclosure: Please note that the advice contained herein is general advice and is for the purposes of education only. The risk of loss in trading futures contracts, commodity options, stocks, stock options and forex currencies can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results. You are reminded that past performance is no guarantee or reliable indication of future results. It has not been prepared taking into account your particular investment objectives, financial situation and particular needs.You should therefore assess whether the advice is appropriate to your individual investment objectives, financial situation and particular needs. You should do this before making an investment decision based on this general advice. You can either make the assessment yourself or seek the help of a professional adviser. This commentary is not a recommendation to buy or sell, but rather a guideline to interpreting the specified indicators. This information should only be used by investors who are aware of the risk inherent in securities trading. The Vulcan Report accepts no liability whatsoever for any loss arising from any use of this expert or its contents.liability whatsoever for any loss arising from any use of this expert or its contents. For Related news and other stories please visit - http://www.wideawakenews.com/ For Related videos on our Youtube channel please visit - http://www.youtube.com/user/pulsescan72 Be Sure to register for faster updates and commentaries at - BLOG 1: - http://pulsescan.blogspot.com/ BLOG 2: - http://seekingalpha.com/instablog/466159-pulsescan72/ BULLS make money... BEARS make money.... PIGS get slaughtered! "TAKE WHAT YOU CAN .........GIVE NOTHING BACK"!!
*Sep E-mini S&Ps (ESU18 -0.28%) this morning are down -0.30% at a 1-week low and European stocks are down -0.70% at a 1-1/4 month low on concern of contagion of the Turkey economic crisis to European banks. Losses in European bank stocks led the overall market lower as the Turkish lira plunged to a record low of 7.2362 against the dollar and the 2-year yield on Turkey's government bond soared to a 10-year high of 25.7%. The lira recovered from its worst levels but was still down more than 7% after Turkey's central bank took steps to boost liquidity. Investors flocked into the safety of government bonds due to the Turkish financial crisis as the 10-year yield on the German bund fell to a 5-week low of 0.306%. A 10% plunge in Bayer AG also undercut European stocks after Bayer's newly acquired Monsanto was found liable by a San Francisco state court late Friday and ordered to pay $250 million in punitive damages and $39 million in compensatory damages after the jury decided that Monsanto's Roundup weed killer caused a California's groundskeeper's cancer. Asian stocks settled lower: Japan -1.98%, Hong Kong -1.52%, China -0.34%, Taiwan -2.14%, Australia -0.42%, Singapore -1.20%, South Korea -1.29%, India -0.59%, Turkey 04.14%. USD/JPY tumbled to a 1-1/2 month low and spurred losses in Japanese exporter stocks that helped push Japan's Nikkei Stock Index down to a 1-month low.
*The dollar index (DXY00 +0.11%) is up +0.10% at a 13-1/2 month high. EUR/USD (^EURUSD -0.29%) is down -0.32% at a 13-1/4 month low on concern about European banks' exposure to Turkey. USD/JPY (^USDJPY -0.42%) is down -0.39% at a 1-1/2 month high as The Turkish crises fueled safe-haven demand for the yen.
*Sep 10-year T-note prices (ZNU18 +0-025) are little changed, down -0.5 of a tick.
*Turkey's central bank raised the collateral forex deposit limits for Turkish lira transactions to 20 billion euros from 7.2 billion euros. The central bank also said banks' current foreign exchange deposit limits of around $50 billion may be increased and utilization limits may be improved if deemed necessary.
**Overnight U.S. Stock Movers**
*Planet Fitness (PLNT +6.46%) was downgraded to 'Neutral' from 'Overweight' at JPMorgan Chase with a price target of $50.
*Bank OZK (OZK -0.17%) was downgraded to 'Underweight' from 'Overweight' at Barclays with a price target of $38.
*AGCO (AGCO -3.25%) was downgraded to 'Underweight' from 'Neutral at JPMorgan Chase with a price target of $55.
*Dollar Tree (DLTR -0.29%) was upgraded to 'Overweight' from 'Neutral' at Atlantic Equities LLP with a price target of $110.
*Papa John's (PZZA -2.87%) was upgraded to 'Buy' from 'Neutral' at Longbow Research with a price target of $52.
*Mylan NV (MYL +1.64%) was upgraded to 'Outperform' from 'Sector Perform' at RBC Capital Markets with a price target of $51.
*Third Point Off Shore Investors Ltd announced that it had acquired a 3.1% stake in NXP Semiconductors NV (NXPI -1.17%) at the end of Q2.
*Establishment Lab Holdings (ESTA +2.63%) was rated a new 'Buy' at Jeffries with a price target of %35.
*Aramark (ARMK +2.01%) was rated a new 'Outperform' at Credit Suisse with a price target of $52.
*Energen (EGN +0.03%) may move higher initially this morning after Icahn Associates acquired an additional 657,077 shares in Energen from Aug 8-10 and raised its stake in the company to 6.72 million shares, making it the fifth largest shareholder in the company.
*Amicus Therapeutics (FOLD +1.59%) rose 2% in after-hours trading after the company won FDA approval for its Galafold drug to treat Fabry disease.
*ADT (ADT +5.08%) was rated a new 'Outperform' at Credit Suisse with a price target of $12.50.
**U.S. Stock Preview**
*Key U.S. news today includes: (1) USDA weekly grain export inspections, (2) USDA weekly Crop Progress.
*Notable Russell 2000 earnings reports today include: Sysco (consensus $0.93), AXA Equitable (0.86), Switch (0.04).
*U.S. IPO's scheduled to price today: none.
*Equity conferences during the remainder of this week: MESC Annual Conference on Mon, KeyBanc Capital Markets Technology Leadership Forum on Mon-Tue, Susquehanna Energy Conference on Tue, Nomura Instinet Cloud Builders Summit on Tue, D&H Technology Conference 2018 on Thu.
**Market Comments**
*Sep S&P 500 E-minis (ESU18 -0.28%) this morning are down -8.50 points (-0.30%) at a 1-week low. Friday's closes: S&P 500 -0.71%, Dow Jones -0.77%, Nasdaq 100 -0.79%. The S&P 500 on Friday fell to a 1-week low and closed lower on negative carry-over from a slump in European stocks to a 1-month low after the ECB expressed concern about contagion of the Turkish financial crisis to European banks on the risk Turkish borrowers could start to default on foreign-currency loans. Another negative for stocks was signs of rising inflation after the U.S. Jul CPI ex food and energy rose +2.4% y/y, stronger than expectations of +2.3% y/y and the largest year-on-year increase in 9-3/4 years.
*Sep 10-year T-notes (ZNU18 +0-025) this morning are down -0.5 of a tick. Friday's closes: TYU8 +21.00, FVU8 +12.75. Sep 10-year T-notes on Friday rallied to a 3-week high and closed higher on increased safe-haven demand for T-notes as U.S and European stocks plunged on concern Turkey's financial crisis may spread to European banks. T-notes also garnered support on a decline in inflation expectations after the 10-year T-note breakeven inflation rate fell to a 3-week low.
*The dollar index (DXY00 +0.11%) this morning is yp +0.101 (+0.10%) at a 13-1/2 month high. EUR/USD (^EURUSD -0.29%) is down -0.0036 (-0.32%) at a 13-1/4 month low. USD/JPY (^USDJPY -0.42%) is down -0.43 (-0.39%) at a 1-1/2 month low. Friday's closes: Dollar Index +0.853 (+0.89%), EUR/USD -0.0114 (-0.99%), USD/JPY -0.25 (-0.23%). The dollar index on Friday rallied to a 13-month high and closed higher due to weakness in EUR/USD which slumped to a 13-month low on the threat of contagion of Turkey's financial turmoil to European banks after the Financial Times reported the ECB was concerned about the exposure of several European banks to Turkish loans which could be defaulted on due to the plunge in the Turkish lira. The dollar also moved higher after the Russian ruble dropped to a 2-year low against the dollar on risk of U.S. sanctions on Russian government debt.
*Metals this morning are weaker with Dec gold (GCZ18 -1.26%) -10.6 (-0.87%) at a 17-month low, Sep silver (SIU18 -1.11%) -0.115 (-0.75%) and Sep copper -0.019 (-0.67%). Friday's closes: Dec gold -0.9 (-0.07%), Sep silver -0.167 (-1.08%), Sep copper (HGU18 -0.97%) -0.0230 (-0.83%). Metals on Friday closed lower due to the surge in the dollar index to a 13-month high along with concern the financial turmoil in Turkey and the China/U.S. trade tensions will curb global economic growth and industrial metals demand. A supportive factor for gold was increased safe-haven demand on the threat of contagion of Turkey's financial crisis to European banks as Turkish borrowers that are not hedged could start to default on foreign-currency loans. Copper prices also had support on signs of tighter copper supplies after weekly Shanghai copper inventories fell -21,710 MT to a 6-1/2 month low of 171,107 MT.
*Sep WTI crude oil (CLU18 -0.50%) this morning is down -34 cents (-0.50%). Sep gasoline (RBU18 -0.49%) is down -0.98 cents (-0.48%). Friday's closes: Sep crude oil +0.82 (+1.23%), Sep gasoline +3.93 (+1.97%). Sep crude oil and gasoline on Friday closed higher after the IEA raised its global 2018 oil demand forecast to 99.2 million bpd from 99.1 million bpd and after IEA data showed Saudi Arabian Jul crude output fell by -110,000 bpd to 10.35 million bpd. The main bearish factor was the rally in the dollar index to a 13-month high.
General Advice Disclosure: Please note that the advice contained herein is general advice and is for the purposes of education only. The risk of loss in trading futures contracts, commodity options, stocks, stock options and forex currencies can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results. You are reminded that past performance is no guarantee or reliable indication of future results. It has not been prepared taking into account your particular investment objectives, financial situation and particular needs.You should therefore assess whether the advice is appropriate to your individual investment objectives, financial situation and particular needs. You should do this before making an investment decision based on this general advice. You can either make the assessment yourself or seek the help of a professional adviser. This commentary is not a recommendation to buy or sell, but rather a guideline to interpreting the specified indicators. This information should only be used by investors who are aware of the risk inherent in securities trading. The Vulcan Report accepts no liability whatsoever for any loss arising from any use of this expert or its contents.liability whatsoever for any loss arising from any use of this expert or its contents. For Related news and other stories please visit - http://www.wideawakenews.com/ For Related videos on our Youtube channel please visit - http://www.youtube.com/user/pulsescan72 Be Sure to register for faster updates and commentaries at - BLOG 1: - http://pulsescan.blogspot.com/ BLOG 2: - http://seekingalpha.com/instablog/466159-pulsescan72/ BULLS make money... BEARS make money.... PIGS get slaughtered! "TAKE WHAT YOU CAN .........GIVE NOTHING BACK"!!
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