OVERNIGHT MARKETS AND NEWS

December E-mini S&Ps (ESZ15 -0.16%) are down -0.11% and European stocks are down -0.39% as the markets digests last Thursday’s and Friday’s sharp gains. U.S. and European stocks were disappointed that China’s unexpected interest rate cut failed to inspire sharp gains in Asian stock markets. Losses were limited, though, after a gauge of German Oct business confidence fell less than expected. Also, increased M&A activity gave stocks a lift after Duke Energy bought Piedmont Natural Gas for $4.9 billion. Asian stocks settled mostly higher: Japan +0.65%, Hong Kong -0.15%, China +0.50%, Taiwan +0.82%, Australia -0.07%, Singapore +0.48%, South Korea +0.38%, India -0.40%. Japan’s Nikkei Stock index rose to a 1-3/4 month high and China’s Shanghai Composited climbed to a 2-month high. The markets will watch this week’s gathering in Beijing of Chinese leaders where Chinese President Xi Jinping will lay out his 5-year plan for economic growth.

The dollar index (DXY00 -0.25%) is down -0.29%. EUR/USD (^EURUSD) is up +0.13% as it rebounded from a 2-1/2 month high on the stronger-than-expected German Oct IFO business confidence. USD/JPY (^USDJPY) is down -0.35%.

Dec T-note prices (ZNZ15 +0.04%) are down -2 ticks.

The German Oct IFO business climate fell -0.3 to 108.2, a smaller decline than expectations of -0.7 to 107.8.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Sep new home sales (expected -0.4% to 550,000, Aug +5.7% to 552,000), and (2) Oct Dallas Fed manufacturing activity (expected +3.0 to -6.5, Sep +6.3 to -9.5).

There are 10 of the S&P 500 companies that report earnings today: Lab Corp of America (2.06), Roper Technologies (1.57), Xerox (0.23), Edwards Lifesciences (0.98), XL Group (0.43), Plum Creek Timber (0.51), Torchmark (1.06), AvalonBay Communities (1.93), Hartford Financial (0.99), Broadcom (0.73).

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

Equity conferences this week include: Hart Energy DUG Eagle Ford Conference on Mon-Tue, and Money20/20 Conference on Mon-Wed.