Barchart Morning Call

Jun E-mini S&Ps (ESM17 -0.32%) this morning are down -0.20% and European stocks are following U.S. equities lower as they are down -0.07%. Concern over U.S. economic momentum is weighing on stocks after Monday’s report on auto purchases showed consumers were reluctant to spend as U.S. Mar auto sales fell to their lowest in 2-years. The weakness in auto sales has bolstered speculation that the Fed will proceed slower on any further interest rate hikes and boosted demand for gold with Apr COMEX gold (GCJ17 +0.60%) up +0.60% at a 1-week high. The markets will pay attention to the French presidential debate later today for clues as to who may be France’s next president. Dovish comments from ECB Governing Council member Nowotny have fueled a rally in 10-year German bunds to a 1-month high when he said that ECB monetary policy “has to stay accommodative until economic recovery in the Eurozone has gained sufficient momentum to bring inflation back” in line to target. Asian stocks settled lower: Japan -0.91%, Australia -0.27%, Singapore -0.27%, South Korea -0.24%, Hong Kong, China, Taiwan and India closed for holidays. Japanese stocks tumbled in line with other global markets as the Nikkei Stock index fell to a 2-1/2 month low as exporters and auto makers sold-off due to strength in the yen against the dollar and weak U.S. auto sales.

The dollar index (DXY00 +0.13%) is up +0.15% at a 2-week high. EUR/USD (^EURUSD) is down -0.22% at a 2-1/2 week low. USD/JPY (^USDJPY) is down -0.37%.

Jun 10-year T-note prices (ZNM17 +0.20%) are up +6 ticks at a 4-1/2 month high.

ECB Governing Council member Nowotny said the ECB’s monetary stance “has to stay accommodative until economic recovery in the Eurozone has gained sufficient momentum to bring inflation back” in line with the central bank’s target.

Key U.S. news today includes: (1) Feb U.S. trade deficit (expected -$46.0 billion, Jan -$48.5 billion), (2) Feb factory orders (expected +1.0%, Jan +1.2% and +0.3% ex transportation), and (3) Fed Governor Daniel Tarullo gives a public address at Princeton University.

Notable Russell 1000 earnings reports today include: Acuity Brands (consensus $1.83).

U.S. IPO’s scheduled to price today: Hess Midstream Partners (HESM).

Equity conferences: American Association for Cancer Research Meeting on Mon-Tue, AACR Meeting on Mon-Wed, Independent Petroleum Association of America Oil & Gas Investment Symposium on Tue, Hart Energy Publishing LLLP DUG Permian Basin Conference on Tue, Jefferies Animal Health Summit on Thu.

Nvidia (NVDA -0.50%) fell nearly 3% in pre-market trading after it was downgraded to ‘Underweight’ from ‘Sector Weight’ at Pacific Crest Securities.

Alphabet (GOOGL +1.06%) was downgraded to ‘Market Perform’ from ‘Outperform’ at BMO Capital Markets who lowered their target price on the stock to $880 from $1,005.

Nike (NKE -0.31%) was downgraded to ‘Hold’ from ‘Buy’ at Argus Research.

Pure Storage (PSTG +3.56%) was upgraded to ‘Positive’ from ‘Neutral’ at Susquehanna with a 12-month target price of $15.

Teradyne (TER -0.71%) was rated a new ‘Outperform’ at Baird with a 12-month target price of $37.

Acadia Healthcare (ACHC -1.70%) rose over 4% in after-hours trading when it was announced that it will replace Joy Global in the S&P MidCap 400 effective before the open of trading on Thursday, April 6.

Teva Pharmaceutical Industries Ltd (TEVA +0.31%) gained almost 1% in after-hours trading after the FDA approved its Austedo tablets for treatment for chorea associated with Huntington’s disease.

Urban Outfitters (URBN -2.36%) fell nearly 7% in after-hours trading after it said Q1 retail comparable sales thus far are down mid-single-digit negative.

Paratek Pharmaceuticals (PRTK -3.38%) surged over 30% in after-hours trading after the company said its Omadacycline met all FDA and EMA goals in a Phase 3 study in patients with community-acquired bacterial pneumonia.

Kate Spade (KATE -1.85%) slid 8% in after-hours trading after Reuters reported the company is seeking more time to negotiate a potential sale of the company after receiving an offer from Coach last week.

New Mountain Finance Corp (NMFC +0.34%) slipped nearly 4% in after-hours trading after it announced that it had commenced an underwritten offering of 5.0 million shares of its common stock.

Therapeutics MD (TXMD +3.06%) climbed nearly 4% in after-hours trading after a Phase 3 study after its drug TX-001HR met all co-primary efficacy endpoints in treatment for women suffering from symptoms of menopause.

Jun E-mini S&Ps (ESM17 -0.32%) this morning are down -4.75 points (-0.20%). Monday’s closes: S&P 500 -0.16%, Dow Jones -0.06%, Nasdaq -0.07%. The S&P 500 on Monday closed lower on a sell-off in automakers and auto component makers after U.S. Mar auto sales were less-than-expected and fell to a 2-year low. The auto sales report also sparked concern about weak consumer spending. There was also weakness in energy producing stocks after crude oil prices fell -0.71%. Stock were supported by the as-expected U.S. Mar ISM manufacturing index, which fell by -0.5 to 57.2 as expected, but remained in strong territory.

Jun 10-year T-notes (ZNM17 +0.20%) this morning are up +6 ticks at a 4-1/2 month high. Monday’s closes: TYM7 +15.0, FVM7 +8.00. Jun 10-year T-notes on Monday closed higher as the 10-year T-note yield fell to a 5-week low of 2.32%. T-notes found support from a rally in German 10-year bunds to a 1-month high on dovish comments from ECB Executive Board member Praet who said the ECB is not ready to end QE. T-notes also saw some safe-haven demand from the sell-off in stocks.

The dollar index (DXY00 +0.13%) this morning is up +0.15 (+0.15%) at a 2-week high. EUR/USD (^EURUSD) is down -0.0023 (-0.22%) at a 2-1/2 week low and USD/JPY (^USDJPY) is down -0.41 (-0.37%). Monday’s closes: Dollar index +0.19 (+0.19%), EUR/USD +0.0018 (+0.17%), USD/JPY -0.49 (-0.44%). The dollar index on Monday climbed to a 2-week high and settled higher on the continued strength in the U.S. March ISM manufacturing index report of 57.2 (-0.5 points). The dollar was undercut by the decline in the 10-year T-note yield to a 5-week low, which reduced the dollar’s interest rate differentials.

May WTI crude oil prices (CLK17 +0.54%) this morning are up +23 cents (+0.46%) and May gasoline (CLK17 +0.54%) is +0.0025 (+0.15%). Monday’s closes: May crude -0.36 (-0.71%), May gasoline -0.0093 (-0.55%). May crude oil and gasoline on Monday closed lower on the rally in the dollar index to a 2-week high and on a rebound in Libyan oil production after Libya’s NOC lifted force majeure on Sharara crude after Libya’s Zawiya export terminal reopened and crude output rose to 660,000 bpd from 500,000 bpd. Crude oil found support on the -200,000 bpd decline in OPEC Mar crude production to 32.095 million bpd, a 16-month low.