OVERNIGHT MARKETS AND NEWS

Mar E-mini S&Ps (ESH18 +0.33%) this morning are up +0.30% after the U.S. Senate passed tax reform legislation by a 51-48 vote early this morning. The tax bill now goes back to the House for a second vote in a procedural move before it goes to President Trump to be signed into law. Also, energy stocks and mining companies are higher with Feb WTI crude oil (CLG18 +0.36%) up +0.33 % at a 1-week high and Mar COMEX copper (HGH18 +0.63%)up +0.63% at a 3-week high. Crude gained after the API reported late Tuesday that U.S. crude stockpiles fell -5.2 million bbl last week, while optimism in the global economic outlook fueled fund buying of copper. European stocks are down -0.39% due to increased political risks in Spain ahead of Thursday’s vote in Catalonia where the secession movement leads in the polls. Asian stocks settled mixed: Japan +0.10%, Hong Kong -0.07%, China -0.27%, Taiwan +0.36%, Australia +0.06%, Singapore -0.28%, South Korea -0.30%, India -0.18%.

The dollar index (DXY00 +0.02%) is up +0.04%. EUR/USD (^EURUSD) is down -0.01%. USD/JPY (^USDJPY) is up +0.24%.

Mar 10-year T-note prices (ZNH18 -0.01%) are little changed, up +0.5 of a tick.

UK Dec CBI retailing reported sales fell -6 to 20, right on expectations.

German Nov PPI of +0.1% m/m and +2.5% y/y was weaker than expectations of +0.2% m/m and +2.6% y/y with the +0.1% m/m gain the smallest monthly increase in 5 months.

The Japan Oct all-industry activity index rose +0.3% m/m, right on expectations.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly MBA mortgage applications (previous -2.3% with purchase sub-index -1.1% and refi sub-index -2.5%), (2) Nov existing home sales (expected +0.9% to 5.53 million, Oct +2.0% to 5.48 million), (3) EIA weekly Petroleum Status Report.

Notable Russell 1000 earnings reports today include: General Mills (consensus $0.82), Bed Bath & Beyond (0.37).