Overnight Markets And News

Dec E-mini S&Ps (ESZ18 -0.28%) this morning are down -0.21% and European stocks are down -0.38% in muted trading activity as markets await the results of today’s U.S. midterm elections. The markets expect the Republican party to maintain a majority in the Senate but lose their majority in the House of Representatives. Any other scenario may boost volatility and fuel sudden moves in the market. European stocks were also weighed down after Eurozone Sep producer prices rose more than expected at the fastest annual rate in 6-3/4 years, which may push the ECB to tighten monetary policy sooner than expected. Asian stocks settled mixed: Japan +1.14%, Hong Kong +0.72%, China -0.23%, Taiwan -0.66%, Australia +0.98%, Singapore closed for holiday, South Korea 0.56%, India +0.12%. Japanese stocks rallied, led by gains in Toyota Motor, after it boosted its operating profit outlook and said it will buy back up to 250 billion yen ($3.3 billion) of its own stock. Chinese stocks closed lower but recovered most of its losses late in the session after Chinese Premier Li Keqiang said Chine will open up its financial industry “as early as possible.”

The dollar index (DXY00 +0.03%) is up +0.05%. EUR/USD (^EURUSD +0.09%) is up +0.05%. USD/JPY (^USDJPY unch) is down -0.02%.

Dec 10-year T-note prices (ZNZ18 +0-015) are up +2 ticks.

The Eurozone Oct Markit composite PMI was revised upward to 53.1 from the originally reported 52.7, still the slowest pace of expansion in 2 years.

Eurozone Sep PPI rose +0.5% m/m and +4.5% y/y, stronger than expectations of +0.4% m/m and +4.3% y/y with the +4.5% y/y gain the largest year-on-year increase in 6-3/4 years.

German Sep factory orders unexpectedly rose +0.3% m/m, stronger than expectations of -0.5% m/m.

Japan Sep household spending unexpectedly fell -1.6% y/y, weaker than expectations of +1.5% y/y.

U.S. Stock Preview

Key U.S. news today includes: (1) Sep JOLTS job openings (expected -51,000 to 7.085 million, Aug +59,000 to 7.136 million), (2) Treasury auctions $27 billion of 10-year T-notes.

Notable S&P 500 earnings reports today include: CVS Health (consensus $1.71), Emerson Electric (0.90), Eli Lilly (1.35), Martin Marietta (2.82), Regeneron (5.11), Air Products (1.99), Assurant (1.07), Devon Energy (0.41), Alliant Energy (0.84), Ralph Lauren (2.15).