OVERNIGHT MARKETS AND NEWS

Sep E-mini S&Ps (ESU17 -0.23%) this morning are down -0.23% and European stocks are down -0.97% at a 3-week low as last Friday’s sell-off in U.S. technology stocks spreads across the globe. Apple is down 2% in pre-market trading, adding to Friday’s -3.9% plunge, after Mizuho Securities downgraded Apple to ‘Neutral’ from ‘Buy.’ Technology stocks that supply Apple are declining as well with ASML Holding falling 4% and leading European technology stocks lower. Expectations for a 25 bp increase in the fed funds target range at Wednesday’s FOMC meeting is also fueling long liquidation in equities. Asian stocks settled lower: Japan -0.52%, Hong Kong -1.24%, China -0.59%, Taiwan -0.88%, Australia closed for holiday, Singapore -0.18%, South Korea -1.01%, India -0.53%. Losses in technology stocks led declines in Asian markets as Samsung Electronics slid almost 2% and Tencent Holdings Ltd tumbled 2.5%.

The dollar index (DXY00 -0.20%) is down -0.10%. EUR/USD (^EURUSD) is up +0.22%. USD/JPY (^USDJPY) is down -0.35%.

Sep 10-year T-note prices (ZNU17 -0.07%) are down -4.5 ticks.

Japan May machine tool orders rose +24.4% y/y, the sixth consecutive monthly increase.

Japan May PPI was unch m/m and +2.1% y/y, weaker than expectations of +0.1% m/m and +2.2% y/y.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Treasury auctions $24 billion of 3-year T-notes and $20 billion of 10-year T-notes, (2) May monthly budget statement (expected -$91.5 billion, Apr +$182.4 billion), (3) USDA weekly grain export inspections, (4) USDA crop conditions and planting progress.

Notable Russell 2000 earnings reports today include: None.

U.S. IPO’s scheduled to price today: None.

Equity conferences: American Diabetes Association Conference on Mon, J.P. Morgan Global Leaders Forum on Tue, Citi Industrials Conference on Tue-Wed, Morgan Stanley Financial Services Conference on Tue-Wed, William Blair & Company Growth Stock Conference on Tue-Thu, Deutsche Bank dbAccess Global Consumer Conference on Tue-Thu, Golddman Sachs European Payment Conference on Tue-Thu, Goldman Sachs Global Health Care Conference on Tue-Thu, Piper Jaffray Consumer Conference on Wed, Vertical Research Partners Materials Conference on Wed, RBC Capital Markets Financial Technology Investor Day on Wed, Drexel Hamilton Aerospace & Defense Conference on Thu, Stifel, Nicolaus & Co Industrials Conference on Thu, NASDAQ Investor Program on Thu.