**Overnight Markets and News**
*Dec E-mini S&Ps (ESZ18 -1.28%) this morning are down sharply by -1.19% at a 1-week low and European stocks are down -1.04% at a 1-3/4 year low. A rout in Asian equities carried over into European and U.S. markets on increased concern about a slowdown in China's economy and upcoming corporate earnings. Technology stocks are weaker led by a sell-off in Europe, after Apple chip supplier AMS AG plunged 27% after its margin outlook for Q4 disappointed. Energy stocks are lower as well as Dec WTI crude oil (CLZ18 -1.60%) is down -1.73% at a 1-1/2 month low after Saudi Arabian Energy Minister Khalid Al-Falih said Saudi Arabia will meet any shortfall in supply due to sanctions on Iran. The slump in global stock markets has boosted demand for safe-havens as Dec COMEX gold (GCZ18 +1.06%) is up +1.08% at a 2-3/4 month high. Asian stocks settled sharply lower: Japan -2.67%, Hong Kong -3.08%, China -2.26%, Taiwan -2.00%, Australia -1.05%, Singapore -1.52%, South Korea -2.46%, India -0.84%. Japan's Nikkei Stock Index tumbled to a 2-1/4 month low and Chinese shares plummeted on concern about a Chinese economic slowdown even after the Chinese government this past weekend announced fresh measures to boost economic growth.
*The dollar index (DXY00 -0.01%) is down -0.06%. EUR/USD (^EURUSD -0.03%) is down -0.01%. USD/JPY (^USDJPY -0.44%) is down -0.44% as a decline in global stock markets boosts safe-haven demand for the yen.
*Dec 10-year T-note prices (ZNZ18 +0-100) are up +9.5 ticks at a 1-week high.
*UK Oct CBI trends total orders unexpectedly fell -5 to a 2-year low of -6, weaker than expectations of +3 to 2. The Oct CBI trends selling prices fell -5 to a 13-month low of 10, weaker than expectations of +2 to 15.
*German Sep PPI of +0.5% m/m and +3.2% y/y was stronger than expectations of +0.3% m/m and +3.0% y/y and the fastest pace of increase in 1-1/2 years.
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**U.S. Stock Preview**
*Key U.S. news today includes: (1) Oct Richmond Fed manufacturing survey (expected -5 to 24, Sep +5 to 29), (2) Treasury auctions $38 billion of 2-year T-notes, (3) Atlanta Fed President Raphael Bostic (voter) speaks about the U.S. economy and monetary policy at he LSU Alumni Center, (4) Dallas Fed President Robert Kaplan (non-voter) speaks at the Galveston Economic Development Partnership Summit, (5) Kansas City Fed President Esther George (non-voter) speaks on the U.S. payment system on a panel at a conference in Sydney, Australia.
*Notable Russell 2000 earnings reports today include: Caterpillar (consensus $2.85), McDonalds (1.99), PulteGroup (0.94), Verizon (1.19), Texas Instruments (1.53), Capital One (1.09).
*U.S. IPO's scheduled to price today: Alzheon (ALZH).
*Equity conferences during the remainder of this week: Well Characterized Biologics & Biological Assays Conference on Wed, Collaborative Robots, Advanced Vision and AI Conference on Wed-Thu.
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**Overnight U.S. Stock Movers**
*NetApp (NTAP +3.55%) and Micron Technology (MU -1.71%) were both downgraded to 'Neutral' from 'Positive' at Susquehanna Financial.
*Red Hat (RHT +1.48%) was rated a new 'Buy' at Needham & Co with a price target of $183.
*Hilton Worldwide Holdings (HLT -0.71%) was rated a new 'Outperform' at Cowen with a price target of $81.
*Chevron (@symbolPercentChange(CVX was assumed an 'Overweight' rating at Piper Jaffray with a price target of $139.
*Zions Bancorp NA (ZION -3.45%) gained 2% in after-hours trading after it reported Q3 EPS of $1.04, better than consensus of 96 cents.
*Moelis & Co (MC -0.37%) fell 3% in after-hours trading after it reported Q3 revenue of $207.7 million, weaker than consensus of $230.3 million.
*SS&C Technologies Holdings (SSNC -0.74%) climbed more than 6% in after-hours trading after it reported preliminary Q3 adjusted EPS of 78 cents-79 cents, above consensus of 66 cents.
*Cadence Design Systems (CDNS +1.25%) jumped 9% in after-hours trading after it reported Q3 adjusted EPS of 49 cents, higher than consensus of 1 cents, and then forecast full-year adjusted EPS of $1.80 to $1.82, above consensus of $1.68.
*Fabrinet (FN -0.60%) was reinstated at Stifel with a 'Buy' rating and a price target of $53.
*Superior Energy Services (SPN -3.86%) slid more than 2% in after-hours trading after it reported Q3 adjusted Ebitda of $99.8 million, weaker than consensus of $104.2 million.
*Aratna Therapeutics (PETX +13.06%) rose 2% in after-hours trading, on top on Monday's 13% gain, after dealReporter said the company is working with Barclays to explore alternatives.
*Proteostasis Therapeutics (PTI -9.43%) fell 3% in after-hours trading after it announced that it intends to offer 9 million shares of its common stock in an underwritten public offering.
*Senseonics Holdings (SENS -4.16%) rallied nearly 6% in after-hours trading after Aetna said it would provide coverage for Senseonic's Eversense glucose monitoring system.
*Affimed NV (AFMD -1.87%) tumbled 8% in after-hours trading after it filed to sell a $150 million shelf of mixed securities.
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**Market Comments**
*Dec S&P 500 E-minis (ESZ18 -1.28%) this morning are down sharply by -32.75 points (-1.19%) at a 1-week low. Monday's closes: S&P 500 -0.43%, Dow Jones -0.50%, Nasdaq 100 +0.48%. The S&P 500 on Monday closed lower on weakness in bank stocks and on caution ahead of a spate of S&P 500 company quarterly earnings results that will be released this week. Stocks were supported by Monday's 4% rally in China's Shanghai Composite to a 1-week high after Chinese President Xi Jinping vowed "unwavering" support for non-state firms and the government released a detailed draft plan to cut personal income taxes.
*Dec 10-year T-notes (ZNZ18 +0-100) this morning are up +9.5 ticks at a 1-week high. Monday's closes: TYZ8 +1.50, FVZ8 +0.75. Dec 10-year T-notes on Monday closed higher on stock market weakness that boosted safe-haven demand for T-notes. T-notes were also supported by the weaker-than-expected Sep Chicago Fed national activity index. T-note prices were undercut by supply pressures as the Treasury will auction $127 billion of T-notes and floating-rate notes this week.
*The dollar index (DXY00 -0.01%) this morning is down -0.068 (-0.06%), EUR/USD (^EURUSD -0.03%) is -0.0001 (-0.01%), and USD/JPY (^USDJPY -0.44%) is down -0.50 (-0.44%). Monday's closes: Dollar Index +0.300 (+0.31%), EUR/USD -0.0050 (-0.43%), USD/JPY +0.27 (+0.24%). The dollar index on Monday rose to a 1-1/2 week high and closed higher on strength in USD/JPY which climbed to a 1-week high after Chinese stocks rallied sharply to a 1-week high and curbed the safe-haven demand for the yen. The dollar was also boosted by a slide in EUR/USD after the Bundesbank warned that German Q3 GDP would be weak due to new emission-test procedures in the auto industry that left "deep marks" on industrial production.
*Metals prices this morning are mixed with Dec gold (GCZ18 +1.06%) +13.2 (+1.08%) at a 2-3/4 month high, Dec silver (SIZ18 +0.98%) +0.153 (+1.05%) and Dec copper (HGZ18 -0.97%) -0.022 (-0.77%). Monday's closes: Dec gold -1.4 (-0.11%), Dec silver +0.046 (+0.31%), Dec copper +0.0315 (+1.15%). Metals on Monday settled mixed. Metals prices were undercut by a rally in the dollar index and by reduced Italian political risks that curbed the safe-haven demand for precious metals after the yield on Italy's 10-year government bond fell to a 2-week low when Moody's Investors Service late Friday cut Italy's sovereign debt rating but said the outlook was "stable," which bolstered speculation another credit rating cut was not imminent.
*Dec WTI crude oil prices (CLZ18 -1.60%) this morning are down -$1.20 a barrel (-1.73%) at a 1-1/2 month low and Dec gasoline (RBZ18 -2.04%) is -4.50 (-2.36%). Monday's closes: Dec crude oil +0.08 (+0.12%), Dec gasoline -0.52 (-0.27%). Dec crude oil and gasoline on Monday settled mixed with Dec gasoline at a 7-1/4 month low. Crude oil prices were undercut by a stronger dollar and by reduced concern about Saudi Arabia using its crude exports as a political weapon after Saudi Energy Minister Khalid Al-Falih said Saudi Arabia "for decades has used its oil policy as a responsible economic tool and isolated it from politics." The main bullish factor continues to be global supply concerns with the collapse in Venezuelan crude production and the imminent U.S. sanctions on Iran next month that will further reduce Iran's crude exports.
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 -1.28%) this morning are down sharply by -1.19% at a 1-week low and European stocks are down -1.04% at a 1-3/4 year low. A rout in Asian equities carried over into European and U.S. markets on increased concern about a slowdown in China's economy and upcoming corporate earnings. Technology stocks are weaker led by a sell-off in Europe, after Apple chip supplier AMS AG plunged 27% after its margin outlook for Q4 disappointed. Energy stocks are lower as well as Dec WTI crude oil (CLZ18 -1.60%) is down -1.73% at a 1-1/2 month low after Saudi Arabian Energy Minister Khalid Al-Falih said Saudi Arabia will meet any shortfall in supply due to sanctions on Iran. The slump in global stock markets has boosted demand for safe-havens as Dec COMEX gold (GCZ18 +1.06%) is up +1.08% at a 2-3/4 month high. Asian stocks settled sharply lower: Japan -2.67%, Hong Kong -3.08%, China -2.26%, Taiwan -2.00%, Australia -1.05%, Singapore -1.52%, South Korea -2.46%, India -0.84%. Japan's Nikkei Stock Index tumbled to a 2-1/4 month low and Chinese shares plummeted on concern about a Chinese economic slowdown even after the Chinese government this past weekend announced fresh measures to boost economic growth.
*The dollar index (DXY00 -0.01%) is down -0.06%. EUR/USD (^EURUSD -0.03%) is down -0.01%. USD/JPY (^USDJPY -0.44%) is down -0.44% as a decline in global stock markets boosts safe-haven demand for the yen.
*Dec 10-year T-note prices (ZNZ18 +0-100) are up +9.5 ticks at a 1-week high.
*UK Oct CBI trends total orders unexpectedly fell -5 to a 2-year low of -6, weaker than expectations of +3 to 2. The Oct CBI trends selling prices fell -5 to a 13-month low of 10, weaker than expectations of +2 to 15.
*German Sep PPI of +0.5% m/m and +3.2% y/y was stronger than expectations of +0.3% m/m and +3.0% y/y and the fastest pace of increase in 1-1/2 years.
--------------------------------------------------------------------------------------
**U.S. Stock Preview**
*Key U.S. news today includes: (1) Oct Richmond Fed manufacturing survey (expected -5 to 24, Sep +5 to 29), (2) Treasury auctions $38 billion of 2-year T-notes, (3) Atlanta Fed President Raphael Bostic (voter) speaks about the U.S. economy and monetary policy at he LSU Alumni Center, (4) Dallas Fed President Robert Kaplan (non-voter) speaks at the Galveston Economic Development Partnership Summit, (5) Kansas City Fed President Esther George (non-voter) speaks on the U.S. payment system on a panel at a conference in Sydney, Australia.
*Notable Russell 2000 earnings reports today include: Caterpillar (consensus $2.85), McDonalds (1.99), PulteGroup (0.94), Verizon (1.19), Texas Instruments (1.53), Capital One (1.09).
*U.S. IPO's scheduled to price today: Alzheon (ALZH).
*Equity conferences during the remainder of this week: Well Characterized Biologics & Biological Assays Conference on Wed, Collaborative Robots, Advanced Vision and AI Conference on Wed-Thu.
--------------------------------------------------------------------------------------
**Overnight U.S. Stock Movers**
*NetApp (NTAP +3.55%) and Micron Technology (MU -1.71%) were both downgraded to 'Neutral' from 'Positive' at Susquehanna Financial.
*Red Hat (RHT +1.48%) was rated a new 'Buy' at Needham & Co with a price target of $183.
*Hilton Worldwide Holdings (HLT -0.71%) was rated a new 'Outperform' at Cowen with a price target of $81.
*Chevron (@symbolPercentChange(CVX was assumed an 'Overweight' rating at Piper Jaffray with a price target of $139.
*Zions Bancorp NA (ZION -3.45%) gained 2% in after-hours trading after it reported Q3 EPS of $1.04, better than consensus of 96 cents.
*Moelis & Co (MC -0.37%) fell 3% in after-hours trading after it reported Q3 revenue of $207.7 million, weaker than consensus of $230.3 million.
*SS&C Technologies Holdings (SSNC -0.74%) climbed more than 6% in after-hours trading after it reported preliminary Q3 adjusted EPS of 78 cents-79 cents, above consensus of 66 cents.
*Cadence Design Systems (CDNS +1.25%) jumped 9% in after-hours trading after it reported Q3 adjusted EPS of 49 cents, higher than consensus of 1 cents, and then forecast full-year adjusted EPS of $1.80 to $1.82, above consensus of $1.68.
*Fabrinet (FN -0.60%) was reinstated at Stifel with a 'Buy' rating and a price target of $53.
*Superior Energy Services (SPN -3.86%) slid more than 2% in after-hours trading after it reported Q3 adjusted Ebitda of $99.8 million, weaker than consensus of $104.2 million.
*Aratna Therapeutics (PETX +13.06%) rose 2% in after-hours trading, on top on Monday's 13% gain, after dealReporter said the company is working with Barclays to explore alternatives.
*Proteostasis Therapeutics (PTI -9.43%) fell 3% in after-hours trading after it announced that it intends to offer 9 million shares of its common stock in an underwritten public offering.
*Senseonics Holdings (SENS -4.16%) rallied nearly 6% in after-hours trading after Aetna said it would provide coverage for Senseonic's Eversense glucose monitoring system.
*Affimed NV (AFMD -1.87%) tumbled 8% in after-hours trading after it filed to sell a $150 million shelf of mixed securities.
--------------------------------------------------------------------------------------
**Market Comments**
*Dec S&P 500 E-minis (ESZ18 -1.28%) this morning are down sharply by -32.75 points (-1.19%) at a 1-week low. Monday's closes: S&P 500 -0.43%, Dow Jones -0.50%, Nasdaq 100 +0.48%. The S&P 500 on Monday closed lower on weakness in bank stocks and on caution ahead of a spate of S&P 500 company quarterly earnings results that will be released this week. Stocks were supported by Monday's 4% rally in China's Shanghai Composite to a 1-week high after Chinese President Xi Jinping vowed "unwavering" support for non-state firms and the government released a detailed draft plan to cut personal income taxes.
*Dec 10-year T-notes (ZNZ18 +0-100) this morning are up +9.5 ticks at a 1-week high. Monday's closes: TYZ8 +1.50, FVZ8 +0.75. Dec 10-year T-notes on Monday closed higher on stock market weakness that boosted safe-haven demand for T-notes. T-notes were also supported by the weaker-than-expected Sep Chicago Fed national activity index. T-note prices were undercut by supply pressures as the Treasury will auction $127 billion of T-notes and floating-rate notes this week.
*The dollar index (DXY00 -0.01%) this morning is down -0.068 (-0.06%), EUR/USD (^EURUSD -0.03%) is -0.0001 (-0.01%), and USD/JPY (^USDJPY -0.44%) is down -0.50 (-0.44%). Monday's closes: Dollar Index +0.300 (+0.31%), EUR/USD -0.0050 (-0.43%), USD/JPY +0.27 (+0.24%). The dollar index on Monday rose to a 1-1/2 week high and closed higher on strength in USD/JPY which climbed to a 1-week high after Chinese stocks rallied sharply to a 1-week high and curbed the safe-haven demand for the yen. The dollar was also boosted by a slide in EUR/USD after the Bundesbank warned that German Q3 GDP would be weak due to new emission-test procedures in the auto industry that left "deep marks" on industrial production.
*Metals prices this morning are mixed with Dec gold (GCZ18 +1.06%) +13.2 (+1.08%) at a 2-3/4 month high, Dec silver (SIZ18 +0.98%) +0.153 (+1.05%) and Dec copper (HGZ18 -0.97%) -0.022 (-0.77%). Monday's closes: Dec gold -1.4 (-0.11%), Dec silver +0.046 (+0.31%), Dec copper +0.0315 (+1.15%). Metals on Monday settled mixed. Metals prices were undercut by a rally in the dollar index and by reduced Italian political risks that curbed the safe-haven demand for precious metals after the yield on Italy's 10-year government bond fell to a 2-week low when Moody's Investors Service late Friday cut Italy's sovereign debt rating but said the outlook was "stable," which bolstered speculation another credit rating cut was not imminent.
*Dec WTI crude oil prices (CLZ18 -1.60%) this morning are down -$1.20 a barrel (-1.73%) at a 1-1/2 month low and Dec gasoline (RBZ18 -2.04%) is -4.50 (-2.36%). Monday's closes: Dec crude oil +0.08 (+0.12%), Dec gasoline -0.52 (-0.27%). Dec crude oil and gasoline on Monday settled mixed with Dec gasoline at a 7-1/4 month low. Crude oil prices were undercut by a stronger dollar and by reduced concern about Saudi Arabia using its crude exports as a political weapon after Saudi Energy Minister Khalid Al-Falih said Saudi Arabia "for decades has used its oil policy as a responsible economic tool and isolated it from politics." The main bullish factor continues to be global supply concerns with the collapse in Venezuelan crude production and the imminent U.S. sanctions on Iran next month that will further reduce Iran's crude exports.
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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