OVERNIGHT MARKETS AND NEWS

Mar E-mini S&Ps (ESH18 +0.06%) this morning are up +0.07% as the prospects of U.S. tax cuts buoys stocks. The House is scheduled to vote on the Republican tax-reform package today before its gets sent to the Senate for a vote. Gains in energy stocks are also boosting the overall market with Feb WTI crude oil (CLG18 +0.61%) up +0.52% as the Forties Pipeline System remains closed for repairs, which halts the delivery of 450,000 bpd of Brent crude oil from North Sea oil fields. European stocks are down -0.14% after a gauge of German business confidence fell more than expected. Asian stocks settled mixed: Japan -0.15%, Hong Kong +0.70%, China +0.88%, Taiwan -0.37%, Australia +0.54%, Singapore -0.30%, South Korea +0.05%, India +0.70%. India’s S&P BSE Sensex Stock Index climbed to a record high on speculation Prime Minister Modi’s government will take steps to boost jobs and incomes in rural India after Modi’s party won by a slim margin in the Gujarat state elections.

The dollar index (DXY00 -0.15%) is down -0.12%. EUR/USD (^EURUSD) is up +0.31%. USD/JPY (^USDJPY) is unchanged.

Mar 10-year T-note prices (ZNH18 -0.03%) are unchanged.

ECB Governing Council member Hansson said it’s important for the ECB to move gradually when adjusting policy guidance as wage growth and price growth remain slow.

The German Dec IFO business climate unexpectedly fell -0.4 to 117.6, weaker than expectations of no change at 117.5.

Eurozone Q3 labor costs rose +1.6% y/y, weaker than the +1.8% y/y increase from Q2.

Eurozone Oct construction output fell -0.4% m/m, the first decline in 7 months.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Nov housing starts (expected -3.2% to 1.249 million, Oct +13.7% to 1.29 million), (2) Q3 current account balance (expected -$116.0 billion, Q2 -$123.1 billion).

Notable Russell 1000 earnings reports today include: FedEx (consensus $2.89), Micron Technology (2.20), FactSet (1.97), Darden Restaurants (0.70), Red Hat (0.70), Carnival (0.51).