**Overnight Markets and News**
*Mar E-mini S&Ps (ESH19 -0.12%) this morning are down -0.08% on weakness in retail stocks, led by a 4% decline in Best Buy in pre-market trading, after it was downgraded to 'Underperform‘ at Bank of America/Merrill Lynch. Also weighing on the market is concern there could be a partial shutdown of the U.S. government Friday night if lawmakers and President Trump fail to resolve funding for President Trump's wall along the Mexican border. European stocks are down -0.49% as weakness in retailers drags the overall market lower. UK's Asos Plc plunged nearly 40% after it cut its full-year sales-growth guidance and warned the Christmas shopping season got off to a disastrous start. Losses in the overall market were limited as energy stocks advanced with Jan WTI crude oil (CLF19 +1.11%) up +1.19% after last Friday afternoon's data from Baker Hughes showed active U.S. oil rigs fell to an 8-week low. Asian stocks settled mostly higher: Japan +0.62%, Hong Kong -0.03%, China +0.16%, Taiwan +0.14%, Australia +1.00%, Singapore +1.21%, South Korea +0.29%, India +0.85%. China's Shanghai Composite recovered from a 2-week low and eked out a small gain as a rally in energy producers lifted the overall market.
*The dollar index (DXY00 -0.25%) is down -0.32%. EUR/USD (^EURUSD +0.30%) is up +0.33%. USD/JPY (^USDJPY -0.07%) is down -0.10%.
*Mar 10-year T-note prices (ZNH19 +0-020) are up +2 ticks.
*Eurozone Nov CPI was revised lower to +1.9% y/y from the originally reported +2.0% y/y, the slowest pace of increase in 6 months. Nov core CPI was left unrevised at +1.0% y/y.
*China Nov new home prices rose +0.98% m/m and +10.3% y/y. Home prices rose in 63 cities in Nov, down from 65 that rose in Oct.
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**U.S. Stock Preview**
*Key U.S. news today includes: (1) Dec Empire manufacturing index (expected -3.3 to 20.0, Nov +2.2 to 23.3), (2) Dec NAHB housing market index (expected +1 to 61, Nov -8 to 60).
*Notable Russell 1000 earnings reports today include: Oracle (consensus $0.78), Red Hat (0.87), HEICO (0.48).
*U.S. IPO's scheduled to price today: none.
*Equity conferences during the remainder of this week: none.
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**Overnight U.S. Stock Movers**
*Best Buy (BBY -1.00%) is down 4% in pre-market trading after it was downgraded to 'Underperform' from 'Neutral' at Bank of America/Merrill Lynch.
*Illinois Tool Works (ITW -1.65%) was downgraded to 'Sell' from 'Hold' at Deutsche Bank with a price target of $125.
*Lululemon Athletica (LULU -0.90%) was upgraded to 'Buy' from 'Hold' at Stifel with a price target of $151.
*Sherwin-Williams (SHW +0.03%) was upgraded to 'Overweight' from 'Neutral" at JPMorgan Chase with a price target of $415.
*Skechers (SKX -2.59%) was rated a new 'Buy' at Stifel with a price target of $32.
*LyondellBasell (LYB -1.60%) was upgraded to 'Buy' from 'Hold' at Deutsche Bank with a price target of $95.
*TE Connectivity Ltd (TEL -0.79%) may open higher initially this morning after its board added $1.5 billion to its share repurchase program and recommended the annual dividend rate be increased by about 4.5%.
*Raytheon (RTN -1.50%) may open higher initially this morning after it reported that it had won a $149.4 million contract from the U.S. Navy for the engineering, manufacturing and development of the Standard Missle-2 Block IIIC.
*Yangtze River Port & Logistics Ltd (YRIV -7.69%) jumped 13% in after-hours trading on signs of insider buying after CEO Liu reported to the SEC that he bought $1.7 million in shares of the company's stock.
*Anworth Mortgage Asset (ANH +1.34%) may open lower initially this morning after it unexpectedly cut its quarterly dividend to 13 cents a share from 14 cents a share.
*Catalyst Pharmaceuticals (CPRX -4.88%) rose 3% in after-hours trading on signs of insider buying after company Director O'Keefe reported a purchase of 20,000 shares of the company's stock.
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**Market Comments**
*Mar S&P 500 E-minis (ESH19 -0.12%) this morning are down -2.00 points (-0.08%). Friday's closes: S&P 500 -1.91%, Dow Jones -2.02%, Nasdaq 100 -2.56%. The S&P 500 on Friday closed sharply lower on concern about the health of the global economy after China Nov industrial production growth eased to a 10-year low of +5.4% y/y and after the Eurozone Dec Markit manufacturing PMI fell -0.4 to a 2-3/4 year low of 51.4 (weaker than expectations of unchanged at 51.8). There were also signs of a slowdown in U.S. manufacturing activity after the U.S. Dec Markit manufacturing PMI fell -1.4 to a 1-year low of 53.9, weaker than expectations of -0.3 to 55.0. Energy stocks were weak as crude oil prices fell -2.62%.
*Mar 10-year T-notes (ZNH19 +0-020) this morning are up +2 ticks. Friday's closes: TYH9 +5.0, FVH9 +4.00. Mar 10-year T-notes on Friday closed higher on the sell-off in global equity markets on economic growth concerns, which boosted the safe-haven demand for T-notes. T-note prices were also boosted by the slide in the 10-year T-note breakeven inflation expectations rate to a 1-1/4 year low.
*The dollar index (DXY00 -0.25%) this morning is down -0.31 (-0.32%), EUR/USD (^EURUSD +0.30%) is up +0.0037 (+0.33%), and USD/JPY (^USDJPY -0.07%) is down -0.11 (-0.10%). Friday's closes: Dollar Index +0.379 (+0.39%), EUR/USD -0.0055 (-0.48%), USD/JPY -0.24 (-0.21%). The dollar index on Friday rallied to a 1-1/2 year high and closed higher on the slightly stronger-than-expected U.S. Nov retail sales report of +0.2% (+0.9% in the retail sales control group). There was also weakness in EUR/USD which fell to a 2-week low after Eurozone Dec Markit PMI fell more than expected (-0.4 to 51.4) to its slowest pace of growth in 2-3/4 years.
*Metals prices this morning are mixed with Feb gold (GCG19 +0.17%) +2.0 (+0.16%), Mar silver (SIH19 +0.33%) +0.033 (+0.23%), and Mar copper (HGH19 -0.89%) -0.024 (-0.85%). Friday's closes: Feb Comex gold (GCG19) on Friday closed down -6.0 (-0.48%) and Mar Comex silver (SIH19) closed down -0.218 (-1.47%). Feb gold and Mar silver retreated to 1-week lows Friday due to dollar strength as the dollar index surged to a 1-1/2 year high. An easing of trade tensions between the U.S. and China also reduced safe-haven demand for precious metals after China said it will remove the retaliatory 25% tariff on automobiles imported from the U.S. for three months starting Jan 1. Concern about global demand for industrial metals undercut silver prices after China Nov industrial production rose a weaker-than-expected +5.4% y/y, the slowest pace in 10 years, and after the Eurozone Dec Markit manufacturing PMI showed a larger-than-expected -0.4 point decline to 51.4, the slowest pace of expansion in 2-3/4 years. Finally, fund selling of silver continues as long silver positions in ETFs fell to a 5-1/2 month low Thursday. On the positive side for gold is recent stock market volatility that has boosted demand for gold as a store of wealth after long gold positions in ETFs rose to a 4-1/2 month high Thursday.
*Jan WTI crude oil prices (CLF19 +1.11%) this morning are up +61 cents (+1.19%) and Jan gasoline (RBF19 +1.30%) is up +2.16 cents (+1.51%). Friday's closes: Jan WTI crude oil (CLF19) on Friday closed down by -$1.48 per barrel (-2.62%) and Feb Brent crude (CBG19) closed down -$1.17 (-1.90%). Jan RBOB gasoline (RBF19) closed down by -4.39 cents per gallon (-2.97%). The energy complex was under pressure Friday due to strength in the dollar as the dollar index soared to a 1-1/2 year high. Also, economic weakness in China, the world's second-largest crude consumer, raised energy demand concerns after China Nov industrial production rose a less-than-expected +5.4% y/y, the slowest pace in 10 years. On the positive side was positive U.S. economic data after U.S. Nov retail sales rose +0.2%, slightly stronger than expectations of +0.1%. The early-afternoon Baker Hughes data was also supportive since it showed that active U.S. oil rigs in the week ended December 14 fell by -4 rigs to a 1-3/4 month low of 873, although that was still high at only 15 rigs below the recent 3-3/4 year high of 888 rigs posted in the week ended Nov 16.
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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"!!
*Mar E-mini S&Ps (ESH19 -0.12%) this morning are down -0.08% on weakness in retail stocks, led by a 4% decline in Best Buy in pre-market trading, after it was downgraded to 'Underperform‘ at Bank of America/Merrill Lynch. Also weighing on the market is concern there could be a partial shutdown of the U.S. government Friday night if lawmakers and President Trump fail to resolve funding for President Trump's wall along the Mexican border. European stocks are down -0.49% as weakness in retailers drags the overall market lower. UK's Asos Plc plunged nearly 40% after it cut its full-year sales-growth guidance and warned the Christmas shopping season got off to a disastrous start. Losses in the overall market were limited as energy stocks advanced with Jan WTI crude oil (CLF19 +1.11%) up +1.19% after last Friday afternoon's data from Baker Hughes showed active U.S. oil rigs fell to an 8-week low. Asian stocks settled mostly higher: Japan +0.62%, Hong Kong -0.03%, China +0.16%, Taiwan +0.14%, Australia +1.00%, Singapore +1.21%, South Korea +0.29%, India +0.85%. China's Shanghai Composite recovered from a 2-week low and eked out a small gain as a rally in energy producers lifted the overall market.
*The dollar index (DXY00 -0.25%) is down -0.32%. EUR/USD (^EURUSD +0.30%) is up +0.33%. USD/JPY (^USDJPY -0.07%) is down -0.10%.
*Mar 10-year T-note prices (ZNH19 +0-020) are up +2 ticks.
*Eurozone Nov CPI was revised lower to +1.9% y/y from the originally reported +2.0% y/y, the slowest pace of increase in 6 months. Nov core CPI was left unrevised at +1.0% y/y.
*China Nov new home prices rose +0.98% m/m and +10.3% y/y. Home prices rose in 63 cities in Nov, down from 65 that rose in Oct.
--------------------------------------------------------------------------------------
**U.S. Stock Preview**
*Key U.S. news today includes: (1) Dec Empire manufacturing index (expected -3.3 to 20.0, Nov +2.2 to 23.3), (2) Dec NAHB housing market index (expected +1 to 61, Nov -8 to 60).
*Notable Russell 1000 earnings reports today include: Oracle (consensus $0.78), Red Hat (0.87), HEICO (0.48).
*U.S. IPO's scheduled to price today: none.
*Equity conferences during the remainder of this week: none.
--------------------------------------------------------------------------------------
**Overnight U.S. Stock Movers**
*Best Buy (BBY -1.00%) is down 4% in pre-market trading after it was downgraded to 'Underperform' from 'Neutral' at Bank of America/Merrill Lynch.
*Illinois Tool Works (ITW -1.65%) was downgraded to 'Sell' from 'Hold' at Deutsche Bank with a price target of $125.
*Lululemon Athletica (LULU -0.90%) was upgraded to 'Buy' from 'Hold' at Stifel with a price target of $151.
*Sherwin-Williams (SHW +0.03%) was upgraded to 'Overweight' from 'Neutral" at JPMorgan Chase with a price target of $415.
*Skechers (SKX -2.59%) was rated a new 'Buy' at Stifel with a price target of $32.
*LyondellBasell (LYB -1.60%) was upgraded to 'Buy' from 'Hold' at Deutsche Bank with a price target of $95.
*TE Connectivity Ltd (TEL -0.79%) may open higher initially this morning after its board added $1.5 billion to its share repurchase program and recommended the annual dividend rate be increased by about 4.5%.
*Raytheon (RTN -1.50%) may open higher initially this morning after it reported that it had won a $149.4 million contract from the U.S. Navy for the engineering, manufacturing and development of the Standard Missle-2 Block IIIC.
*Yangtze River Port & Logistics Ltd (YRIV -7.69%) jumped 13% in after-hours trading on signs of insider buying after CEO Liu reported to the SEC that he bought $1.7 million in shares of the company's stock.
*Anworth Mortgage Asset (ANH +1.34%) may open lower initially this morning after it unexpectedly cut its quarterly dividend to 13 cents a share from 14 cents a share.
*Catalyst Pharmaceuticals (CPRX -4.88%) rose 3% in after-hours trading on signs of insider buying after company Director O'Keefe reported a purchase of 20,000 shares of the company's stock.
--------------------------------------------------------------------------------------
**Market Comments**
*Mar S&P 500 E-minis (ESH19 -0.12%) this morning are down -2.00 points (-0.08%). Friday's closes: S&P 500 -1.91%, Dow Jones -2.02%, Nasdaq 100 -2.56%. The S&P 500 on Friday closed sharply lower on concern about the health of the global economy after China Nov industrial production growth eased to a 10-year low of +5.4% y/y and after the Eurozone Dec Markit manufacturing PMI fell -0.4 to a 2-3/4 year low of 51.4 (weaker than expectations of unchanged at 51.8). There were also signs of a slowdown in U.S. manufacturing activity after the U.S. Dec Markit manufacturing PMI fell -1.4 to a 1-year low of 53.9, weaker than expectations of -0.3 to 55.0. Energy stocks were weak as crude oil prices fell -2.62%.
*Mar 10-year T-notes (ZNH19 +0-020) this morning are up +2 ticks. Friday's closes: TYH9 +5.0, FVH9 +4.00. Mar 10-year T-notes on Friday closed higher on the sell-off in global equity markets on economic growth concerns, which boosted the safe-haven demand for T-notes. T-note prices were also boosted by the slide in the 10-year T-note breakeven inflation expectations rate to a 1-1/4 year low.
*The dollar index (DXY00 -0.25%) this morning is down -0.31 (-0.32%), EUR/USD (^EURUSD +0.30%) is up +0.0037 (+0.33%), and USD/JPY (^USDJPY -0.07%) is down -0.11 (-0.10%). Friday's closes: Dollar Index +0.379 (+0.39%), EUR/USD -0.0055 (-0.48%), USD/JPY -0.24 (-0.21%). The dollar index on Friday rallied to a 1-1/2 year high and closed higher on the slightly stronger-than-expected U.S. Nov retail sales report of +0.2% (+0.9% in the retail sales control group). There was also weakness in EUR/USD which fell to a 2-week low after Eurozone Dec Markit PMI fell more than expected (-0.4 to 51.4) to its slowest pace of growth in 2-3/4 years.
*Metals prices this morning are mixed with Feb gold (GCG19 +0.17%) +2.0 (+0.16%), Mar silver (SIH19 +0.33%) +0.033 (+0.23%), and Mar copper (HGH19 -0.89%) -0.024 (-0.85%). Friday's closes: Feb Comex gold (GCG19) on Friday closed down -6.0 (-0.48%) and Mar Comex silver (SIH19) closed down -0.218 (-1.47%). Feb gold and Mar silver retreated to 1-week lows Friday due to dollar strength as the dollar index surged to a 1-1/2 year high. An easing of trade tensions between the U.S. and China also reduced safe-haven demand for precious metals after China said it will remove the retaliatory 25% tariff on automobiles imported from the U.S. for three months starting Jan 1. Concern about global demand for industrial metals undercut silver prices after China Nov industrial production rose a weaker-than-expected +5.4% y/y, the slowest pace in 10 years, and after the Eurozone Dec Markit manufacturing PMI showed a larger-than-expected -0.4 point decline to 51.4, the slowest pace of expansion in 2-3/4 years. Finally, fund selling of silver continues as long silver positions in ETFs fell to a 5-1/2 month low Thursday. On the positive side for gold is recent stock market volatility that has boosted demand for gold as a store of wealth after long gold positions in ETFs rose to a 4-1/2 month high Thursday.
*Jan WTI crude oil prices (CLF19 +1.11%) this morning are up +61 cents (+1.19%) and Jan gasoline (RBF19 +1.30%) is up +2.16 cents (+1.51%). Friday's closes: Jan WTI crude oil (CLF19) on Friday closed down by -$1.48 per barrel (-2.62%) and Feb Brent crude (CBG19) closed down -$1.17 (-1.90%). Jan RBOB gasoline (RBF19) closed down by -4.39 cents per gallon (-2.97%). The energy complex was under pressure Friday due to strength in the dollar as the dollar index soared to a 1-1/2 year high. Also, economic weakness in China, the world's second-largest crude consumer, raised energy demand concerns after China Nov industrial production rose a less-than-expected +5.4% y/y, the slowest pace in 10 years. On the positive side was positive U.S. economic data after U.S. Nov retail sales rose +0.2%, slightly stronger than expectations of +0.1%. The early-afternoon Baker Hughes data was also supportive since it showed that active U.S. oil rigs in the week ended December 14 fell by -4 rigs to a 1-3/4 month low of 873, although that was still high at only 15 rigs below the recent 3-3/4 year high of 888 rigs posted in the week ended Nov 16.
--------------------------------------------------------------------------
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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