**Overnight Markets and News**
*Dec E-mini S&Ps (ESZ18 +0.51%) this morning are up +0.40% and European stocks are up +0.31% on stronger than expected company quarterly earnings results along with an easing of Italian political risks. BlackRock, Morgan Stanley and Johnson & Johnson all reported better than expected Q3 adjusted EPS and Walmart forecast sales growth this year and next year at the fastest pace in 10 years. European stocks rallied and the yield on Italy's 10-year government bond fell to a 1-week low of 3.427% after the Italian government reached an agreement on a budget accord. Gains in European stocks were limited after the German Oct ZEW survey expectations of economic growth fell more than expected to a 6-year low. Asian stocks settled mixed: Japan +1.25%, Hong Kong +0.07%, China -0.85%, Taiwan +0.81%, Australia +0.56%, Singapore -0.38%, South Korea -0.10%, India +0.85%. Trade concerns undercut Chinese stocks as the Shanghai Composite fell to a nearly 4-year low. Chinese stocks were also under pressure after S&P Global Ratings warned that China's local governments may have accumulated 40 trillion yuan ($5.8 trillion) of off-balance sheet debt, which may lead to increased defaults.
*The dollar index (DXY00 -0.07%) is down -0.03%. EUR/USD (^EURUSD +0.04%) is up +0.01%. USD/JPY (^USDJPY +0.25%) is up +0.22%.
*Dec 10-year T-note prices (ZNZ18 -0-015) are down -1.5 ticks.
*The German Oct ZEW survey expectations of economic growth fell -14.1 to -24.7, weaker than expectations of -1.4 to -12.0 and matched July's level as the lowest in 6 years.
*ECB Governing Council member Vasiliauskas said there is no reason why the ECB shouldn't end its net asset purchases as planned in December and could start discussing raising interest rates in the middle of 2019 and take decision next autumn if needed.
*UK Aug avg hourly earnings rose +2.7% 3-mo avg y/y, stronger than expectations of +2.6% 3-mo avg y/y. Aug weekly earnings ex-bonus rose +3.1% 3-mo avg y/y, stronger than expectations of +2.9% 3-mo avg y/y and the fastest pace of increase n 9-1/2 years.
*China Sep CPI rose at a +2.5% y/y pace, right on expectations and the fastest pace of increase in 7 months. Sep PPI rose at a +3.6% y/y pace, stronger than expectations of +3.5% y/y.
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**U.S. Stock Preview**
*Key U.S. news today includes: (1) Sep industrial production (expected +0.2%, Aug +0.4%) and Sep manufacturing production (expected +0.2%, Aug +0.2%), (2) Oct NAHB housing market index (expected unch at 67, Sep unch at 67), (3) Aug JOLTS job openings (expected -39,000 to 6.900 million, Sep +117,000 to 6.939 million).
*Notable Russell 2000 earnings reports today include: Goldman Sachs (consensus $5.38), Netflix (0.68), IBM (3.41), Morgan Stanley (1.01), Blackrock (6.84), Progressive (1.13), UnitedHealth (3.29).
*U.S. IPO's scheduled to price today: Surface Oncology (SURF), GrafTech (EAF).
*Equity conferences during the remainder of this week: GreenBiz VERGE Conference on Tue, MRO Europe on Tue, Arm TechCon Conference on Tue-Thu, Connected Health Conference on Wed, CXO Summit on Thu, European Society for Medical Oncology Meeting on Fri.
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**Overnight U.S. Stock Movers**
*Morgan Stanley (MS +0.09%) is up more than 2% in pre-market trading after it reported Q3 adjusted EPS of $1.17, higher than consensus of $1.01.
*Johnson & Johnson (JNJ +0.06%) rose +0.5% in pre-market trading after it reported Q3 adjusted EPS of $2.95, better than consensus of $$2.03
*Cracker Barrel (CBRL +1.80%) was upgraded to 'Outperform' from 'Market Perform' at Telsey Advisory Group with a price target of $175.
*Adobe (ADBE -4.36%) climbed more than 5% in after-hours trading after it said it sees about 20% total revenue growth for fiscal 2019.
*Facebook (FB -0.14%) was rated a new 'Buy' at Loop Capital Markets with a price target of $210.
*Expedia Group (EXPE -0.01%) was rated a new 'Outperform' at Evercore ISI with a price target of $140.
*JB Hunt Transport Services (JBHT +2.05%) reported Q3 operating revenue of $2.21 billion, below consensus of $2.22 billion
*Philip Morris International (PM +1.43%) was rated 'Outperform' at Bernstein with a price target of $97.
*Perspecta (PRSP -0.20%) was rated a new 'Buy' at Stifel with a price target of $35.
*SendGrid (SEND -0.23%) surged 17% in after-hours trading after it was acquired by Twilio for $2 billion, or about $36.92 a share. Twilio TWLO fell 4% on the news.
*JELD-WEN Holding (JELD -0.19%) tumbled nearly 11% in after-hours trading after it lowered guidance on 2018 adjusted Ebitda to $455 million to $470 million from a prior estimate of $500 million to $520 million.
*Ultralife (ULBI +5.64%) rose 4% in after-hours trading after it reported it won a $8.3 million contract.
*T2 Biosystems (TTOO +2.72%) may initially open lower this morning after it filed a $100 million mixed securities shelf after the close of trading Monday.
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**Market Comments**
*Dec S&P 500 E-minis (ESZ18 +0.51%) this morning are up +11.00 points (+0.40%). Monday's closes: S&P 500 -0.59%, Dow Jones -0.35%, Nasdaq 100 -1.24%. The S&P 500 on Monday closed lower on revived trade tensions after President Trump on Sunday evening said he is considering additional tariffs on Chinese goods. Stocks were also undercut by the weaker than-expected U.S. Sep retail sales report of +0.1% and -0.1% ex autos, below expectations of +0.6% and +0.4% ex autos, with the -0.1% ex autos being drop the first decline in 16 months. Technology stocks again showed weakness.
*Dec 10-year T-notes (ZNZ18 -0-015) this morning are down -1.5 ticks. Monday's closes: TYZ8 -6.00, FVZ8 -3.50. Dec 10-year T-notes on Monday closed lower on comments from former Fed Chair Yellen who said the Fed should continue to raise interest rates to a neutral level and that President Trump's criticism of the Fed for its rate hikes "will not change what the Fed is doing." T-notes were also undercut by the stronger-than-expected U.S. Oct Empire manufacturing index.
*The dollar index (DXY00 -0.07%) this morning is down -0.026 (-0.03%), EUR/USD (^EURUSD +0.04%) is up +0.0001 (+0.01%), and USD/JPY (^USDJPY +0.25%) is up +0.25 (+0.22%). Monday's closes: Dollar Index -0.162 (-0.17%), EUR/USD +0.0019 (+0.16%), USD/JPY -0.44 (-0.39%). The dollar index on Monday closed lower on the weaker-than-expected U.S. Sep retail sales report and on weakness in USD/JPY which fell to a 1-month low as the yen was boosted by increased safe-haven demand with the slide in stocks.
*Metals prices this morning are mixed with Dec gold (GCZ18 +0.18%) +2.6 (+0.21%), Dec silver (SIZ18 +0.43%) +0.043 (+0.29%) and Dec copper (HGZ18 -0.38%) -0.021 (-0.74%). Monday's closes: Dec gold +8.3 (+0.68%), Dec silver +0.092 (+0.63%), Dec copper -0.0120 (-0.43%). Metals on Monday settled mixed with Dec gold at a 2-1/2 month high. Metals prices were boosted by a weaker dollar and by tighter copper supplies after LME copper inventories fell -4,900 MT to a 2-1/3 year low of 161,700 MT. Copper prices were undercut by the U.S.-China trade conflict after President Trump said he is considering additional tariffs on China.
*Nov WTI crude oil prices (CLX18 -0.84%) this morning are down -66 cents (-0.92%) and Nov gasoline (RBX18 -0.08%) is -0.42 (-0.22%). Monday's closes: Nov crude oil +0.44 (+0.62%), Nov gasoline +0.23 (+0.12%). Nov crude oil and gasoline on Monday closed higher on a weaker dollar and on concern that Saudi Arabia may use its crude oil exports as a political weapon after the Saudi Foreign Ministry said "the kingdom will respond to any measure against it with an even stronger measure" after President Trump vowed "severe punishment" should Saudi Arabia be linked to the disappearance of journalist Khashoggi. Crude oil prices were undercut by the comment from Iraqi Oil Minster Jabbar Al-Luaibi who said Iraq plans to export a record 4 million bpd of crude oil starting by Q1 of 2019.
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"!!
*Dec E-mini S&Ps (ESZ18 +0.51%) this morning are up +0.40% and European stocks are up +0.31% on stronger than expected company quarterly earnings results along with an easing of Italian political risks. BlackRock, Morgan Stanley and Johnson & Johnson all reported better than expected Q3 adjusted EPS and Walmart forecast sales growth this year and next year at the fastest pace in 10 years. European stocks rallied and the yield on Italy's 10-year government bond fell to a 1-week low of 3.427% after the Italian government reached an agreement on a budget accord. Gains in European stocks were limited after the German Oct ZEW survey expectations of economic growth fell more than expected to a 6-year low. Asian stocks settled mixed: Japan +1.25%, Hong Kong +0.07%, China -0.85%, Taiwan +0.81%, Australia +0.56%, Singapore -0.38%, South Korea -0.10%, India +0.85%. Trade concerns undercut Chinese stocks as the Shanghai Composite fell to a nearly 4-year low. Chinese stocks were also under pressure after S&P Global Ratings warned that China's local governments may have accumulated 40 trillion yuan ($5.8 trillion) of off-balance sheet debt, which may lead to increased defaults.
*The dollar index (DXY00 -0.07%) is down -0.03%. EUR/USD (^EURUSD +0.04%) is up +0.01%. USD/JPY (^USDJPY +0.25%) is up +0.22%.
*Dec 10-year T-note prices (ZNZ18 -0-015) are down -1.5 ticks.
*The German Oct ZEW survey expectations of economic growth fell -14.1 to -24.7, weaker than expectations of -1.4 to -12.0 and matched July's level as the lowest in 6 years.
*ECB Governing Council member Vasiliauskas said there is no reason why the ECB shouldn't end its net asset purchases as planned in December and could start discussing raising interest rates in the middle of 2019 and take decision next autumn if needed.
*UK Aug avg hourly earnings rose +2.7% 3-mo avg y/y, stronger than expectations of +2.6% 3-mo avg y/y. Aug weekly earnings ex-bonus rose +3.1% 3-mo avg y/y, stronger than expectations of +2.9% 3-mo avg y/y and the fastest pace of increase n 9-1/2 years.
*China Sep CPI rose at a +2.5% y/y pace, right on expectations and the fastest pace of increase in 7 months. Sep PPI rose at a +3.6% y/y pace, stronger than expectations of +3.5% y/y.
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**U.S. Stock Preview**
*Key U.S. news today includes: (1) Sep industrial production (expected +0.2%, Aug +0.4%) and Sep manufacturing production (expected +0.2%, Aug +0.2%), (2) Oct NAHB housing market index (expected unch at 67, Sep unch at 67), (3) Aug JOLTS job openings (expected -39,000 to 6.900 million, Sep +117,000 to 6.939 million).
*Notable Russell 2000 earnings reports today include: Goldman Sachs (consensus $5.38), Netflix (0.68), IBM (3.41), Morgan Stanley (1.01), Blackrock (6.84), Progressive (1.13), UnitedHealth (3.29).
*U.S. IPO's scheduled to price today: Surface Oncology (SURF), GrafTech (EAF).
*Equity conferences during the remainder of this week: GreenBiz VERGE Conference on Tue, MRO Europe on Tue, Arm TechCon Conference on Tue-Thu, Connected Health Conference on Wed, CXO Summit on Thu, European Society for Medical Oncology Meeting on Fri.
--------------------------------------------------------------------------------------
**Overnight U.S. Stock Movers**
*Morgan Stanley (MS +0.09%) is up more than 2% in pre-market trading after it reported Q3 adjusted EPS of $1.17, higher than consensus of $1.01.
*Johnson & Johnson (JNJ +0.06%) rose +0.5% in pre-market trading after it reported Q3 adjusted EPS of $2.95, better than consensus of $$2.03
*Cracker Barrel (CBRL +1.80%) was upgraded to 'Outperform' from 'Market Perform' at Telsey Advisory Group with a price target of $175.
*Adobe (ADBE -4.36%) climbed more than 5% in after-hours trading after it said it sees about 20% total revenue growth for fiscal 2019.
*Facebook (FB -0.14%) was rated a new 'Buy' at Loop Capital Markets with a price target of $210.
*Expedia Group (EXPE -0.01%) was rated a new 'Outperform' at Evercore ISI with a price target of $140.
*JB Hunt Transport Services (JBHT +2.05%) reported Q3 operating revenue of $2.21 billion, below consensus of $2.22 billion
*Philip Morris International (PM +1.43%) was rated 'Outperform' at Bernstein with a price target of $97.
*Perspecta (PRSP -0.20%) was rated a new 'Buy' at Stifel with a price target of $35.
*SendGrid (SEND -0.23%) surged 17% in after-hours trading after it was acquired by Twilio for $2 billion, or about $36.92 a share. Twilio TWLO fell 4% on the news.
*JELD-WEN Holding (JELD -0.19%) tumbled nearly 11% in after-hours trading after it lowered guidance on 2018 adjusted Ebitda to $455 million to $470 million from a prior estimate of $500 million to $520 million.
*Ultralife (ULBI +5.64%) rose 4% in after-hours trading after it reported it won a $8.3 million contract.
*T2 Biosystems (TTOO +2.72%) may initially open lower this morning after it filed a $100 million mixed securities shelf after the close of trading Monday.
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**Market Comments**
*Dec S&P 500 E-minis (ESZ18 +0.51%) this morning are up +11.00 points (+0.40%). Monday's closes: S&P 500 -0.59%, Dow Jones -0.35%, Nasdaq 100 -1.24%. The S&P 500 on Monday closed lower on revived trade tensions after President Trump on Sunday evening said he is considering additional tariffs on Chinese goods. Stocks were also undercut by the weaker than-expected U.S. Sep retail sales report of +0.1% and -0.1% ex autos, below expectations of +0.6% and +0.4% ex autos, with the -0.1% ex autos being drop the first decline in 16 months. Technology stocks again showed weakness.
*Dec 10-year T-notes (ZNZ18 -0-015) this morning are down -1.5 ticks. Monday's closes: TYZ8 -6.00, FVZ8 -3.50. Dec 10-year T-notes on Monday closed lower on comments from former Fed Chair Yellen who said the Fed should continue to raise interest rates to a neutral level and that President Trump's criticism of the Fed for its rate hikes "will not change what the Fed is doing." T-notes were also undercut by the stronger-than-expected U.S. Oct Empire manufacturing index.
*The dollar index (DXY00 -0.07%) this morning is down -0.026 (-0.03%), EUR/USD (^EURUSD +0.04%) is up +0.0001 (+0.01%), and USD/JPY (^USDJPY +0.25%) is up +0.25 (+0.22%). Monday's closes: Dollar Index -0.162 (-0.17%), EUR/USD +0.0019 (+0.16%), USD/JPY -0.44 (-0.39%). The dollar index on Monday closed lower on the weaker-than-expected U.S. Sep retail sales report and on weakness in USD/JPY which fell to a 1-month low as the yen was boosted by increased safe-haven demand with the slide in stocks.
*Metals prices this morning are mixed with Dec gold (GCZ18 +0.18%) +2.6 (+0.21%), Dec silver (SIZ18 +0.43%) +0.043 (+0.29%) and Dec copper (HGZ18 -0.38%) -0.021 (-0.74%). Monday's closes: Dec gold +8.3 (+0.68%), Dec silver +0.092 (+0.63%), Dec copper -0.0120 (-0.43%). Metals on Monday settled mixed with Dec gold at a 2-1/2 month high. Metals prices were boosted by a weaker dollar and by tighter copper supplies after LME copper inventories fell -4,900 MT to a 2-1/3 year low of 161,700 MT. Copper prices were undercut by the U.S.-China trade conflict after President Trump said he is considering additional tariffs on China.
*Nov WTI crude oil prices (CLX18 -0.84%) this morning are down -66 cents (-0.92%) and Nov gasoline (RBX18 -0.08%) is -0.42 (-0.22%). Monday's closes: Nov crude oil +0.44 (+0.62%), Nov gasoline +0.23 (+0.12%). Nov crude oil and gasoline on Monday closed higher on a weaker dollar and on concern that Saudi Arabia may use its crude oil exports as a political weapon after the Saudi Foreign Ministry said "the kingdom will respond to any measure against it with an even stronger measure" after President Trump vowed "severe punishment" should Saudi Arabia be linked to the disappearance of journalist Khashoggi. Crude oil prices were undercut by the comment from Iraqi Oil Minster Jabbar Al-Luaibi who said Iraq plans to export a record 4 million bpd of crude oil starting by Q1 of 2019.
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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