Live Index – Thu, 26 Mar 2015 Premarket

June E-mini S&Ps (ESM15 -0.66%) this morning are down -0.63% and European stocks are down -1.17%, both at 1-1/2 week lows, after Saudi Arabia led a coalition of 10 Sunni-ruled nations in air strikes against Shiite Houthi rebels in Yemen. Airline stocks are lower in pre-market trading as crude oil surged to a 2-1/2 week high. Asian stocks closed mostly lower: Japan -1.39%, Hong Kong -0.13%, China +0.24%, Taiwan -0.50%, Australia -1.58%, Singapore +0.37%, South Korea -1.14%, India -2.33%. Commodity prices are mostly higher. May crude oil (CLK15 +4.10%) is up +3.70% and May gasoline (RBK15 +2.07%) is up +1.77%, both at 2-1/2 week highs, on concern the Yemen conflict could disrupt global crude oil supplies. Yemen is located on the Bab el-Mandeb strait that links the Gulf of Aden and the Red Sea, the fourth-biggest chokepoint for crude supplies in the world. According to the EIA, about 3.8 million bpd passed through Bab el-Mandeb in 2013 and a closure of the strait would force tankers to sail around the southern tip of Africa to reach European, North American and South American markets. Apr gold (GCJ15 +0.94%) is up +0.86% at a 3-week high on increased safe-haven demand due to an escalation of violence in Yemen. May copper (HGK15 +1.50%) is up +1.49%. Agriculture prices are higher. The dollar index (DXY00 -0.47%) is down -0.51% at a 3-week low. EUR/USD (^EURUSD) is up +0.35% at a 3-week high. USD/JPY (^USDJPY) is down -0.65% at a 1-month low as the conflict in Yemen boosted the safe-haven demand for the yen. Jun T-note prices (ZNM15 +0.02%) are up +4.5 ticks.

German Apr GfK consumer confidence rose +0.3 to 10.0, stronger than expectations of +0.1 to 9.8 and the highest since the data series began in 2005.

Eurozone Feb M3 money supply rose +4.0% y/y and +3.8% 3-mon avg, weaker than expectations of +4.3% y/y and +4.0% 3-mon avg.

UK Feb retail sales ex-autos rose +0.7% m/m and +5.1% y/y, stronger than expectations of +0.4% m/m and +4.2% y/y. Feb retail sales including autos rose +0.7% m/m and +5.7% y/y, stronger than expectations of +0.4% m/m and +4.7% y/y.

U.S. economic reports today include (1) today’s weekly unemployment claims report (initial claims expected -1,000 to 290,000 and continuing claims expected -17,000 to 2.400 million), and (2) today’s preliminary-March Markit U.S. services PMI (expected -0.1 to 57.0). There are 4 of the Russell 1000 companies that report earnings today: Accenture (consensus $ 1.07), ConAgra Foods (0.52), Signet Jewelers (3.04), GameStop (2.16). U.S. IPOs that price today include: SolarEdge Technologies (SEDG), and Jernigan Capital (JCAP). U.S. IPOs that start trading today include: Franklin Financial Network (FRFN). Equity conferences during the remainder of this week include: Leerink Booth Tours At American Academy of Orthopaedic Surgeons on Wed-Thu, CIBC Real Estate Conference on Thu, Nomura – Conference: Global Chemicals Industry Leaders Conference – London on Thu, Jefferies Animal Health Summit on Thu, Gabelli Specialty Chemicals Conference on Thu.

SanDisk (SNDK -4.21%) lowered Q1 revenue guidance to $ 1.3 billion from $ 1.4 billion-$ 1.45 billion, below consensus of $ 1.44 billion.

ConAgra Foods (CAG +0.90%) reported Q3 EPS of 59 cents, higher thah consensus of 52 cents.

Accenture PLC (ACN -1.34%) reported Q2 EPS of $ 1.08, better than consensus of $ 1.07.

Charles Schwab (SCHW -1.95%) was upgraded to ‘Overweight’ from ‘Underweight’ at Barclays.

Dr Pepper Snapple (DPS -0.57%) and Con-way (CNW -1.50%) were both upgraded to ‘Buy’ from ‘Hold’ at Stifel.

lululemon (LULU -3.70%) reported Q4 EPS of 78 cents, higher than consensus of 73 cents, but then lowered guidance on fiscal 2015 EPS to $ 1.85-$ 1.90, below consensus of $ 2.06.

ASML ({=ASML was downgraded to ‘Sell’ from ‘Hold’ at Deutsche Bank.

Man Group reported a 5.6% passive stake in 1-800-Flowers.com (FLWS -4.83%) .

LifePoint (LPNT -2.30%) was downgraded to ‘Neutral’ from ‘Buy’ at Mizuho.

Red Hat (RHT -1.37%) reported Q4 EPS of 43 cents, above consensus of 41 cents.

Verint Systems (VRNT -1.08%) reported Q4 EPS of $ 1.19, better than consensus of $ 1.15, but thenlowered guidance on fiscal 2015 EPS to $ 3.55-$ 3.75, below consensus of $ 3.76.

PVH Corp. (PVH +0.43%) reported Q4 EPS of $ 1.76, higher than consensus of $ 1.73, but then lowered guidance on fiscal 2015 EPS to $ 6.75-$ 6.90, below consensus of $ 7.37.

Jun E-mini S&Ps (ESM15 -0.66%) this morning are down -13.00 points (-0.63%) at a 1-1/2 week low. Wednesday’s Closes: S&P 500 -1.46%, Dow Jones -1.62%, Nasdaq -2.30%. The stock market on Wednesday sold-off sharply with the S&P 500 at a 1-week low after U.S. Feb durable goods orders unexpectedly declined (-1.4% and -0.4% ex transportation vs. expectations of +0.2% and +0.2% ex transportation). Another negative for equites was the slide in technology stocks led by losses in Microsoft, Intel and Micron Technology.

Jun 10-year T-notes (ZNM15 +0.02%) this morning are up +4.5 ticks. Wednesday’s Closes: TYM5 -9.00, FVM5 -6.00. Jun T-notes climbed to a 1-1/2 month high after U.S. Feb durable goods orders unexpectedly declined and after Chicago Fed President Evans said he sees no compelling reason for us to be in a hurry to tighten financial conditions until” it’s clear that inflation will reach the Fed’s 2.0% target within one or two years. T-note prices erased their gains and closed lower, however, on weak demand for the Treasury’s $ 35 billion auction of 5-year T-notes that had a bid-to-cover ratio of 2.35, below the 12-auction average of 2.68 and the lowest since July 2009.

The dollar index (DXY00 -0.47%) this morning is down -0.494 (-0.51%) at a 3-week low. EUR/USD (^EURUSD) is up +00038 (+0.35%) at a 3-week high. USD/JPY (^USDJPY) is down -0.78 (-0.65%) at a 1-month low. Wednesday’s closes: Dollar index -0.214 (-0.22%), EUR/USD +0.00458 (+0.42%), USD/JPY -0.263 (-0.22%). The dollar closed lower yesterday on negative factors that included (1) the unexpected decline in U.S. Feb durable goods orders, which may delay Fed rate hikes, and (2) comments from Chicago Fed President Evans who said inflation remains too low to justify an interest rate increase this year.

May WTI crude oil (CLK15 +4.10%) this morning is up +$ 1.82 a barrel (+3.70%) and May gasoline (RBK15 +2.07%) is up +0.0324 (+1.77%), both at 2-1/2 week highs. Wednesday’s closes: CLK5 +1.70 (+3.58), RBK5 +0.0302 (+1.68%). May crude and gasoline posted 1-1/2 week highs and closed higher. A weaker dollar boosted energy prices despite bearish factors that included (1) the +8.17 million bbl increase in weekly EIA crude inventories to 466.7 million bbl, more than expectations of +4.75 million bbl and the most since weekly EIA data began in 1982, and (2) the +1.9 million bbl increase in crude supplies at Cushing, OK, delivery point of WTI futures, to a record 56.3 million bbl (data since 2004).