OVERNIGHT MARKETS AND NEWS

Jun E-mini S&Ps (ESM16 +0.17%) are up +0.51% and European stocks are up +1.49% as strength in crude oil and metals prices lifts energy and commodity producers. A nearly 5% gain in Credit Suisse is leading European bank stocks higher after it reported a smaller-than-expected quarterly loss. Asian stocks settled mostly higher: Japan +2.15%, Hong Kong +0.43%, China +0.02%, Taiwan +0.30%, Australia +0.42%, Singapore -0.90%, South Korea +0.60%, India +0.33%. China’s Shanghai Composite shook off early losses and closed higher after Chinese economic data showed Apr consumer prices matched expectations and declines in Apr producer prices moderated. A rally in Japanese exporters lifted the Nikkei Stock Index as USD/JPY climbed to a 1-week high.

The dollar index (DXY00 +0.12%) is up +0.09% at a 1-week high. EUR/USD (^EURUSD) is down -0.17% at a 1-week low. USD/JPY (^USDJPY) is up +0.71% at a 1-week high.

Jun T-note prices (ZNM16 unch) are down -2 ticks.

San Francisco Fed President Williams said that “very low inflation in most economies is the biggest issue for central banks today.” He added that “the U.S. economy is in good shape, in part because the Federal Reserve took such aggressive and, in some cases, extraordinary actions to right the ship.”

China Apr CPI rose +2.3% y/y, right on expectations and the fastest pace of increase in 1-3/4 years.

China Apr PPI fell -3.4% y/y, less than expectations of -3.7% y/y and the slowest pace of decline in 16 months.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Mar wholesale inventories (expected +0.1% m/m, Feb -0.5% m/m), (2) Mar JOLTS job openings (expected +5,000 to 5.450 million, Feb -159,000 to 5.445 million), and (3) the Treasury’s auction of $24 billion of 3-year T-notes.

There are 4 of the S&P 500 companies that report earnings today: Walt Disney (consensus $1.40), CenterPoint Energy (0.31), Allergan (3.00), Electronic Arts (0.42).