OVERNIGHT MARKETS AND NEWS

Dec E-mini S&Ps (ESZ17 +0.13%) this morning are up +0.10% and European stocks are up +0.19% on signs that the global economic expansion will continue after European manufacturing activity this month unexpectedly accelerated. The German 10-year bund yield rose to a 2-week high of 0.476% and EUR/USD strengthened after the Eurozone Oct Markit manufacturing PMI unexpectedly rose +0.5 to 58.6, the fastest pace of expansion since the data series began in 2014. Gains in European stocks were limited ahead of the ECB meeting on Thursday along with a meeting by Catalan’s Parliament where they could make a declaration of independence from Spain. Asian stocks settled mostly higher: Japan +0.50%, Hong Kong -0.53%, China +0.22%, Taiwan +0.08%, Australia +0/06%, Singapore -0.45%, South Korea -0.15%, India +0.31%. Japan’s Nikkei Stock Index rallied for a record 16th consecutive session up to a new 21-year high on carry-over support from Sunday’s elections where Prime Minister Abe’s ruling coalition retained its two-thirds majority in parliament. Also, prospects that the BOJ may extend QE fueled stock gains after people familiar with the central bank said the BOJ is considering lowering its core inflation outlook for this year to 0.8% from 1.1% at its policy meeting at the end of the month. 

The dollar index (DXY00 -0.13%) is down -0.08%. EUR/USD (^EURUSD) is up +0.10%. USD/JPY (^USDJPY) is up +0.26%.

Dec 10-year T-note prices (ZNZ17 -0.10%) are down -5.5 ticks.

The German Oct Markit/BME manufacturing PMI fell -0.1 to 60.5, stronger than expectations of -0.6 to 60.0. The Oct Markit services PMI fell -0.4 to 55.2, weaker than expectations of -0.1 to 55.5.

The Eurozone Oct Markit manufacturing PMI unexpectedly rose +0.5 to 58.6, stronger than expectations of -0.3 to 57.9 and the fastest pace of expansion since the data series began in 2014.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Oct Markit manufacturing PMI (expected +0.4 to 53.5, Sep +0.3 to 53.1) and Oct Markit services PMI (expected -0.1 to 55.2, Sep -0.7 to 55.3), (2) Oct Richmond Fed manufacturing index (expected -2 to 17, Sep +5 to 19), (3) Treasury auctions $26 billion of 2-year T-notes.

Notable S&P 500 earnings reports today include: Halliburton (consensus $0.38), Hasbro (1.94), VF Corp (1.12), State Street Corp (1.61), Kimberley-Clark (1.54), Seagate Technology (0.87), Illinois Took Works (1.65), Arconic (0.27), Whirlpool (3.94), Zions Bancorpation (0.72).

U.S. IPO’s scheduled to price today: Ablynx (OTC:ABYLY), Haymaker Acquisition Corp (HYACU)

Equity conferences this week: ASM Heat Treat Conference on Tue, In-Memory Computing Summit on Tue, Broadband World Forum on Tue, International Wafer-Level Packaging Conference on Tue, Digital Transformation Summit on Tue, Offshore Technology Conference on Tue, European AIDS Conference on Wed, Yahoo Finance All Markets Summit on Wed, European Committee for Treatment and Research in Multiple Sclerosis on Thu, Society of Women Engineers National Conference on Fri.

OVERNIGHT U.S. STOCK MOVERS

American Express (AXP +0.31%) was upgraded to ‘Neutral’ from ‘Underweight’ at Atlantic Equities LLP with a price target of $100.

Hasbro (HAS -8.60%) was upgraded to ‘Overweight’ from ‘Equal-Weight’ at Barclays with a price target of $110.

BroadSoft (BSFT +1.67%) was downgraded to ‘Outperform’ from ‘Strong Buy’ at Raymond James.

Regeneron (REGN -0.05%) was assumed at Guggenheim Securities with a ‘Buy’ recommendation of with a price target of $540.

Seattle Genetics (SGEN -2.33%) was assumed at Guggenheim Securities with a ‘Buy’ recommendation with a 12-month target price of $72.

Intercept Pharmaceuticals (ICPT -1.87%) rose 3% in after-hours trading after it said the results from a Phase 2 trial of its OCA daily treatment of primary sclerosing cholangitis met their primary endpoint.

Whirlpool (WHR +0.02%) tumbled over 6% in after-hours trading after it reported Q3 net sales of $5.42 billion, weaker than consensus of $5.51 billion, and then cut its full-year EPS estimate to $13.60 to $13.90 from a prior view of $14.50 to $15, well below consensus of $14.62.

Core Laboratories NV (CLB -1.94%) climbed almost 4% in after-hours trading after it reported Q3 revenue of $166.2 million, above consensus of $161 million.