Live Index – Mon, 13 Jun 2016 Premarket

Sep E-mini S&Ps (ESU16 -0.26%) are down -0.41% at a 1-week low and European stocks are down -1.44% at a 2-month low as polls show the outcome of the June 23 referendum on whether Britain will remain in the EU or ‘Brexit’ was too close to call. GBP/USD tumbled to a 1-1/2 month low and the price of gold (GCQ16 +0.96%) climbed to a 4-week high on Brexit risks. Crude oil (CLN16 -0.88%) is down -1.28% at a 1-week low and is pushing energy producing stocks lower as well. European auto makers are also weaker after the sales chief of BMW AG told Automobilwoche that the U.S. market “will stagnate at best’ in 2016. On the positive side is a rally in mining stocks, led by a nearly 3% increase in Newmont Mining, as the price of gold is up +0.95% at a 4-week high. Asian stocks settled lower: Japan -3.51%, Hong Kong -2.52%, China -3.21%, Taiwan -2.06%, Australia closed for holiday, Singapore -1.33%, South Korea -1.97%, India -0.90%. China’s Shanghai Stock Index fell to a 1-1/2 week low after China May foreign direct investment unexpectedly declined for the first time in 5 months. Japan’s Nikkei Stock Index dropped to a 1-1/4 month low as Brexit concerns fueled safe-haven demand for the yen, which sent USD/JPY falling to a 1-1/4 month low and hurt the earnings prospects of Japanese exporters.

The dollar index (DXY00 -0.10%) is down -0.71%. EUR/USD (^EURUSD) is up +0.19%. USD/JPY (^USDJPY) is down -0.91% at a 1-1/4 month low.

Sep T-note prices (ZNU16 +0.07%) are up +7 ticks at a new contract high.

ECB Governing Council member and Bundesbank President Weidmann said that Eurozone low inflation is not just the consequence of low oil prices, and “given these muted price prospects an expansionary monetary policy is currently appropriate.” He added that the ECB’s goal to reach price stability in the “medium term” allows “sufficient time” to allow current policy measures to take effect.

China May foreign direct investment unexpectedly fell -1.0% y/y, weaker than expectations of +5.0% y/y and the biggest decline in 5 months.

China May industrial production rose +6.0% y/y, right on expectations.

Key U.S. news today includes: (1) USDA weekly grain export inspections, (2) USDA Weekly Crop Progress.

None of the Russell 1000 companies report earnings today.

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

Equity conferences this week include: Stifel Industrials Conference on Mon, Piper Jaffray Heartland Summit on Tue, Wells Fargo Food & Food Retail Forum on Tue, William Blair & Company Growth Stock Conference on Tue-Thu, Piper Jaffray Consumer Conference on Wed, and RBC Capital Markets Global Financial Technology Investor Day on Thu

LyondellBasell Industries NV (LYB +0.69%) was downgraded to ‘Market Perform’ from ‘Outperform’ at Cowen.

Smith & Wesson Holding Corp. (SWHC -2.73%) rose nearly 4% in pre-market trading on concern a talk of weapons restrictions may lead to increased gun sales after a mass shooting over the weekend in Florida.

Newmont Mining (NEM -0.31%) climbed nearly 3% in pre-market trading as the price of gold climbed to a 4-week high.

U.S. Silica Holdings (SLCA -2.69%) was downgraded to ‘Neutral’ from ‘Buy’ at DA Davidson.

Globalstar (GSAT -0.83%) was downgraded to ‘Neutral’ from ‘Buy’ at Chardan Capital Markets.

Endologix (ELGX -0.24%) was upgraded to ‘Buy’ from ‘Hold’ at Canaccord Genuity with a 12-month price target of $ 15.50

Occidental (OXY -0.20%) was downgraded to ‘Equalweight’ from ‘Oveweight’ at Morgan Stanley.

Trinity Industries (TRN -3.29%) climbed nearly 2% in after-hours trading after it said the Federal Highway Administration confirmed no suspension or debarment, which implies that Trinity’s products will continue to be eligible for Federal-Aid reimbursement.

Weatherford International PLC (WFT -2.66%) slid 2% in after-hours trading after it increased its public offering of senior notes to $ 1.5 billion from $ 1.25 billion.

Tesla (TSLA -4.61%) fell nearly 1% in after-hours trading after the WSJ reported that Tesla will revise non-disclosure agreements on concern that customers were discouraged from reporting possible safety problems

HNI Corp. (HNI -0.61%) gained over 1% in after-hours trading after it raised guidance on full-year adjusted EPS to $ 2.70-$ 2.90 from a prior view of $ 2.40-$ 2.70, well above consensus of $ 2.56.

September E-mini S&Ps (ESU16 -0.26%) this morning are down -8.50 points at a 1-week low. Friday’s closes: S&P 500 -0.92%, Dow Jones -0.67%, Nasdaq -1.14%. The S&P 500 on Friday closed lower on negative carryover from a slide in European stocks to a 1-month low on Brexit concerns after a report from risk-modeling firm Axioma said that European equities could lose 24% of their value if the UK votes to secede from the EU. Stocks were also undercut by weakness in energy and raw-material producerg stocks with the sell-off in commodity prices. Stocks received some underlying support on news that the preliminary-June University of Michigan U.S. consumer sentiment index fell by only -0.4 to 94.3, mildly stronger than expectations of -0.7 to 94.0.

September 10-year T-note prices (ZNU16 +0.07%) this morning are up +7 ticks at a new contract high. Friday’s closes: TYU6 +14.00, FVU6 +8.50. Sep T-notes on Friday climbed to a fresh contract high and settled higher. T-notes were boosted by carryover support from a plunge in global government bond yields as Japan’s 10-year bond yield and Germany’s 10-year bund yield both fell to record lows. T-notes also found support from increased safe-haven demand for T-notes as the global stock markets sold off.

The dollar index (DXY00 -0.10%) this morning is down -0.071 (-0.08%). EUR/USD (^EURUSD) is up +0.0021 (+0.19%). USD/JPY (^USDJPY) is down -0.91 (-0.91%) at a 1-1/4 month low. Friday’s closes: Dollar Index +0.618 (+0.66%), EUR/USD -0.0065 (-0.57%), USD/JPY -0.13 (-0.12%). The dollar index on Friday closed higher on the smaller-than-expected decline in the preliminary-June University of Michigan U.S. consumer sentiment index and on weakness in EUR/USD after the 10-year German bund yield tumbled to a record low of 0.009%.

July WTI crude oil (CLN16 -0.88%) this morning is down -63 cents (-1.28%) at a 1-week low. July gasoline (RBN16 -1.01%) is down -0.0169 (-1.08%) at a 1-month low. Friday’s closes: CLN6 -1.49 (-2.95%), RBN6 -0.0590 (-3.65%). July crude oil and gasoline on Friday closed lower on the stronger dollar and on the slide in stocks that undercut confidence about the economy and energy demand.