Barchart Morning Call

Jun E-mini S&Ps (ESM17 -0.03%) this morning are down -0.08% and European stocks are down -0.09% as weakness in crude oil prices undercuts energy producing stocks. Apr WTI crude oil (CLJ17 -0.39%) is down -0.80% at a fresh 3-1/2 month low on negative carryover from Friday’s data from Baker Hughes that showed U.S. active oil rigs rose to a 17-1/2 month high, offsetting efforts by OPEC to reduce a global oil output. German bunds erased losses and moved higher and EUR/USD retreated from a 1-month high after the Belgian Central Bank Governor said the ECB’s latest policy statement policy “does not in itself signal a coming change in the monetary policy stance.” Asian stocks settled mostly higher: Japan +0.15%, Hong Kong +1.11%, China +0.76%, Taiwan +0.72%, Australia -0.32%, Singapore +0.44%, South Korea +1.15%, India closed for holiday. China’s Shanghai Composite recovered from a 1-month ow and moved higher on signs of reduced U.S.-China trade tensions after Steve Schwarzman, one of the Trump administration’s top economic advisors said in a CNN interview that President Trump will likely moderate his criticisms of China, including his campaign claim that the country manipulates its currency.

The dollar index (DXY00 +0.01%) is unchanged. EUR/USD (^EURUSD) is down -0.02%. USD/JPY (^USDJPY) is down -0.20%.

Jun 10-year T-note prices (ZNM17 +0.08%) are up +4 ticks.

Belgian Central Bank Governor Smelts said in a WSJ interview that the ECB’s policy statement last Thursday “does not in itself signal a coming change in the monetary policy stance.”

Key U.S. news today includes: (1) USDA weekly grain export inspections.

Notable Russell 1000 earnings reports today include: Extraction Oil & Gas (consensus -$0.17), AquaBounty Technology.

U.S. IPO’s scheduled to price today: none.

Equity conferences: JP Morgan Aviation, Transportation & Industrials Conference on Mon-Wed, Bank of America Merrill Lynch Consumer and Retail Tech Conference on Tue-Wed, Barclays Emerging Payments Forum on Tue-Wed, Barclays Global Health Care Conference on Tue-Thu, Gabelli & Co. Waste & Environmental Services Symposium on Thu, American College of Cardiology Meeting on Fri.

American International Group (AIG -0.21%) was downgraded to ‘Sell’ from ‘Hold’ at Deutsche Bank with a price target of $57.

Mobileye (MBLY +0.83%) surged 30% in pre-market trading after Intel was said to agree to buy the company for $63.54 a share or $15 billion.

Boeing (BA -1.04%) was downgraded to ‘Equal-Weight’ from ‘Overweight’ at Morgan Stanley.

Marvell Technology Group Ltd (MRVL +3.54%) was upgraded to ‘Buy’ from ‘Hold’ at Needham.

Gamestop (GME +0.72%) was downgraded to ‘Market Perform’ from ‘Outperform’ at Telsey Advisory Group.

Finisar (FNSR -22.69%) was upgraded to ‘Strong Buy’ from ‘Outperform’ at Raymond James with a 12-month target price of $40.

Rockwell Collins (COL +0.20%) was upgraded to ‘Overweight’ from ‘Equal-Weight’ at Morgan Stanley with a price target of $121.

Incyte (INCY +8.13%) filed a 34 million-share shelf on behalf of holder Baker Brothers Advisors.

Alexandria Real Estate Equities (ARE -4.30%) may move to the upside this morning when it was announced after the close Friday that it will be added to the S&P 500 before the open on Monday, March 20.

Raymond James Financial (RJF +0.10%) may move to the upside this morning when it was announced after the close Friday that it will be added to the S&P 500 before the open on Monday, March 20.

Advanced Micro Devices (AMD +4.35%) gained over 1% in after-hours trading when it was announced that it will be added to the S&P 500 before the open on Monday, March 20.

First Solar (FSLR -0.25%) fell over 1% in after-hours trading when it was announced that it will be removed from the S&P 500 and put into the S&P MidCap 400 before the open on Monday, March 20.

Kronos Worldwide (KRO -0.21%) jumped 9% in after-hours trading after it reported Q4 EPS of 20 cents, well above consensus of 6 cents.

Jun E-mini S&Ps (ESM17 -0.03%) this morning are down -2.00 points (-0.08%). Friday’s closes: S&P 500 +0.33%, Dow Jones +0.21%, Nasdaq +0.41%. The S&P 500 on Friday closed higher on the +235,000 increase in U.S. Feb non-farm payrolls, stronger than expectations of +200,000 and the mildly higher close in June T-note prices. Stock prices were undercut by a continued decline in energy producers as the price of crude oil fell by another -1.60% to a 3-1/2 month low.

Jun 10-year T-notes (ZNM17 +0.08%) this morning are up +4 ticks. Friday’s closes: TYM7 +6.00, FVM7 +3.25. Jun 10-year T-notes on Friday recovered from a 2-1/2 month low and closed higher on some relief after the U.S. Feb average hourly earnings report rose by only +0.2% m/m, slightly weaker than expectations of +0.3% m/m. T-notes were also supported by the slump in crude oil prices to a 3-1/2 month low, which reduced inflation expectations. T-notes initially dropped to a 2-1/2 month low after U.S. Feb non-farm payrolls rose +235,000, stronger than expectations of +200,000.

The dollar index (DXY00 +0.01%) this morning is unchanged. EUR/USD (^EURUSD) is down -0.0002 (-0.02%). USD/JPY (^USDJPY) is -0.23 (-0.20%). Friday’s closes: Dollar index -0.60 (-0.59%), EUR/USD +0.0096 (+0.91%), USD/JPY -0.16 (-0.14%). The dollar index on Friday closed lower on strength in EUR/USD which rallied to a 3-week high after a report that the ECB at Thursday’s policy meeting discussed whether interest rates could rise before their bond-buying program comes to an end. The dollar was also undercut by slightly lower T-note yields, which undercut the dollar’s interest rate differentials.

Apr WTI crude oil prices (CLJ17 -0.39%) this morning are down -39 cents (-0.80%) at a fresh 3-1/2 month low and Apr gasoline (RBJ17 -0.80%) is -0.0192 (-1.20%). Friday’s closes: Apr crude -0.79 (-1.60%), Apr gasoline -0.0242 (-1.49%). Apr crude oil and gasoline on Friday closed lower with Apr crude at a 3-1/2 month low. Crude oil continued to be hurt by technical selling and negative carry-over from Wednesday’s EIA data that showed a +8.21 million bbl increase in EIA crude inventories to a record 528.39 million bbl (well above expectations for a +2.0 million bbl gain) and a +0.6% increase in U.S. crude production to a 1-year high of 9.088 million bpd. Crude oil prices were also hurt by Friday’s news from Baker Hughes that U.S. active oil rigs in the week ended Mar 10 rose 8 to a 17-1/2 month high of 617.