OVERNIGHT MARKETS AND NEWS

Jun E-mini S&Ps (ESM17 -0.04%) this morning are down slightly by -0.04% before President Trump unveils the outlines of his tax plans later today. The upside in equities was limited and European stocks slipped -0.30% as energy producing companies declined as the price of Jun WTI crude (CLM17 -0.67%) dropped by -0.48%. Crude prices were undercut after the API late Tuesday reported that U.S. crude stockpiles rose +897,000 bbl last week. Losses in European stocks were contained after the German government raised its 2017 German GDP forecast to 1.5% from a 1.4% estimate in Jan. Trading activity was subdued ahead of central bank meetings by the ECB and BOJ tomorrow. Asian stocks settled higher: Japan +1.10%, Hong Kong +0.50%, China +0.20%, Taiwan +0.15%, Australia +0.69%, Singapore +0.31%, South Korea +0.48%, India +0.63%. Japan’s Nikkei Stock Index climbed to a 1-month high as exporter stocks rallied after USD/JPY jumped to a 2-week high, which improves the earnings prospects of exporters.

The dollar index (DXY00 +0.23%) is up +0.27%. EUR/USD (^EURUSD) is down -0.29%. USD/JPY (^USDJPY) is up +0.08% at a 2-week high.

Jun 10-year T-note prices (ZNM17 unch) are up +1.5 ticks.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly MBA mortgage applications (previous -1.8% with purchase sub-index -3.4% and refi sub-index +0.2%), (2) Treasury auctions $15 billion of 2-year floating-rate notes and $34 billion of 5-year T-notes, (3) EIA Weekly Petroleum Status Report.

Notable S&P 500 earnings reports today include: Waste Management (consensus $0.66), Dr Pepper Snapple (0.96), Rockwell Automation (1.40), Northrop Grumman (2.92), PepsiCo (0.92), United Technologies (1.39), Nasdaq (1.06), Baxter (0.52), Procter & Gamble (0.94), State Street (1.10), Boeing (1.91), General Dynamics (2.32), Amgen (3.01), Public Storage (2.42), PayPal (0.41), Unum (0.99).

U.S. IPO’s scheduled to price today: China Rapid Finance (XRF), Verona Pharma (VRNA).