OVERNIGHT MARKETS AND NEWS
Jun E-mini S&Ps (ESM17 -0.38%) this morning are down -0.42% and European stocks are down -0.39% on reports that President Trump asked then-FBI Director Comey to drop his investigation into former National Security Advisor Flynn. The dollar index tumbled to a 6-1/4 month low on the news while Jun COMEX gold (GCM17 +0.72%) jumped +0.72% to a 2-week high. The uncertainty caused by this latest political development has boosted the VIX volatility index which jumped to a 3-week high and fueled safe-haven demand for government debt as the 10-year T-note yield fell to a 3-week low. Also, concern that the White House political turmoil will impede the Republican growth agenda has led to long liquidation in equities. Asian stocks settled mostly lower: Japan -0.53%, Hong Kong -0.17%, China -0.27%, Taiwan -0.18%, Australia -1.10%, Singapore -0.11%, South Korea -0.11%, India +0.25%. The political turmoil that has engulfed the Trump administration has boosted safe-haven demand for the yen as USD/JPY fell to a 1-week low. That yen strength pressured Japanese exporter stocks and led the Nikkei Stock Index lower.
The dollar index (DXY00 -0.11%) is down -0.18% to a 6-1/4 month low. EUR/USD (^EURUSD) is up +0.21% to a 6-1/4 month high. USD/JPY (^USDJPY) is down -0.63% to a 1-week low.
Jun 10-year T-note prices (ZNM17 +0.17%) are up +8.5 ticks to a 3-week high.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) weekly MBA mortgage applications (previous +2.4% with purchase sub-index +1.7% and refi sub-index +3.3%), (2) EIA Weekly Petroleum Status Report.
Notable Russell 2000 earnings reports today include: Target (consensus $0.91), Cisco Systems (0.58), Synopsys (0.86), L Brands (0.29), Flowers Foods (0.25).
U.S. IPO’s scheduled to price today: Argenx (ARGX), Bright Scholar Education Holdings (BEDU).
Equity conferences: Needham Emerging Technology Conference on Tue-Wed, Goldman Sachs Basic Materials Conference on Tue-Wed, Bank of America Merrill Lynch Health Care Conference on Tue-Thu, Barclays Americas Select Franchise Conference on Tue-Fri, Stephens Energy Executive Summit on Wed, BMO Capital Markets Farm to Market Conference on Wed-Thu, J.P. Morgan Homebuilding & Building Products Conference on Wed-Thu, MoffettNathanson Media & Communications Summit on Wed-Thu, RBC Capital Markets Canadian Automotive, Transportation & Industrials Conference on Thu, Barclays Water Symposium – Panel on Thu.
