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• Orange (ORAN) announced it will deploy LTE-M technology in Spain and Belgium, with rest of Europe to follow Orange reinforces its commitment to develop the IoT ecosystem, with the launch of Europe's first LTE-M Open IoT Lab. Orange reinforces its commitment to develop the IoT ecosystem, with the launch of Europe's first LTE-M Open IoT Lab. AT&T (T), KPN (PHG), KDDI (Japan), NTT DOCOMO (DCM), Orange (Europe, Middle East and Africa), Telefonica (TEF), Telstra (Australia), TELUS (Canada) and Verizon (VZ) confirmed support for the global deployment of LTE-M at the Mobile World Congress in Barcelona.
• RSP Permian's (RSPP) stockholders approve the issuance of approximately 16 million shares of RSP common stock as partial consideration for RSP's acquisition of Silver Hill E&P II, LLC. With receipt of the stockholder's approval of the issuance of RSP common stock, the SHEP II transactions are expected to close on March 1, 2017.
• Qualcomm Technologies (QCOM) announced it is working with TomTom (TMOAY) on using the Qualcomm Drive Data Platform for high-definition map crowdsourcing, to accelerate the future of autonomous driving.
• Arrakis Therapeutics completed a $38 million Series A financing led by Canaan Partners with participation by Advent Life Sciences, Pfizer (PFE), Celgene Corporation (CELG), Osage University Partners, and biotech industry leader Henri Termeer. The proceeds from the Series A financing will be used to advance Arrakis' proprietary discovery platforms, comprised of a high-throughput, comprehensive system of bioinformatics tools, assays and chemical libraries that can identify new ribonucleic acid (RNA) targets and create new small-molecule drugs.
• Valeant Pharmaceuticals International, Inc.'s (VRX) wholly owned subsidiary, Salix announced that it has rapidly scaled up its sales force by nearly 40 percent, effective immediately. During the past three months, the company has hired approximately 250 highly-trained and experienced sales force representatives and managers to bolster, create and sustain deep relationships with primary care physicians — key potential prescribers of Xifaxan (rifaximin) for IBS-D and RELISTOR (methylnaltrexone bromide) tablets for opioid induced constipation.
• Attunity (ATTU) signed a $1.8 million deal with a global food processing company that will use Attunity Replicate for SAP to ingest SAP data in real-time to its Hadoop data lake.
• SunCoke Energy, Inc. (SXC) has awarded Fluor (FLR) a contract to provide certain maintenance support and capital project services at SunCoke coke facilities in the United States. Fluor will book the undisclosed contract value in the first quarter of 2017.
• Pointer Telocation Ltd. (PNTR) announced the selection of its Mexican subsidiary, to provide fleet management services for COCA — COLA FEMSA (KOF).
• Toshiba's Westinghouse Electric Company (TOSBF) announced that it has signed a nuclear fuel contract with OKG (Uniper), a major supplier of base load to the Nordic power supply system. Provided the plant is in operation and under the terms of the contract, Westinghouse will continue to provide reload fuel assemblies for the remaining Oskarshamn 3 unit until 2030. This contract continues the important relationship between OKG and Westinghouse's Västerås Fuel Fabrication Facility in Västerås, Sweden.
• Metso will develop the next generation of its flow control equipment faster and more economically thanks to a new agreement with ANSYS (ANSS), expanding its access to engineering simulation software and services.
• Centennial Resource Development together with its affiliates (CDEV) announced that it intends to deliver a notice on March 1, 2017 for the redemption of all of its outstanding warrants originally sold as part of units in its initial public offering in February 2016.
• Ritchie Bros (RBA) announced that more than US$188 million of equipment and trucks was sold at the five-day mega-auction, with approximately 38 percent (US$71+ million) selling to online buyers. A record 10,400+ people from 88 countries registered to bid in the auction, with buyers from the United States purchasing 79 percent of the equipment and international buyers purchasing 21 percent, from such countries as Germany, Australia, and Vietnam. The auction took place in Orlando Florida. 
• Meritor (MTOR) announced that EX+L air disc brakes will be available on International LT Series tractors beginning in February. The co also announced  its new 14X HE high-efficiency linehaul tandem drive axle at the 2017 Technology & Maintenance Council's (TMC) Annual Meeting & Transportation Technology Exhibition in Nashville, Tennessee. The 14X HE is one of 20 new global products that Meritor will introduce as part of its M2019 strategic plan. 

Major European indices trade in mixed fashion with Italy's MIB (+0.9%) showing relative strength. Italy's Democratic Party has scheduled a primary vote for April 30, which is seen as a precursor to a general election being called later in the year. Elsewhere, Fitch affirmed Greece's sovereign rating at ‘CCC' while Moody's affirmed Germany's ‘AAA' rating with a ‘Stable' outlook. On a separate note, the British pound is down 0.4% against the dollar at 1.2412 amid reports Scotland may conduct another independence referendum once the UK triggers article 50.

• In economic data:
  • Eurozone February Business and Consumer Survey 108.0, as expected (last 107.9). January M3 Money Supply +4.9% year-over-year (consensus 4.8%; last 5.0%) and Private Sector Loans +2.2% year-over-year (consensus 2.1%; previous 2.0%)
  • Spain's CPI -0.3% month-over-month (expected -0.2%; last -0.5%); +3.0% year-over-year (consensus 3.3%; last 3.0%)

---Equity Markets---

• France's CAC is lower by 0.1%. Growth-sensitive names like TechnipFMC, Solvay, Legrand, ArcelorMittal, and Valeo are down between 0.8% and 1.8%. Financials outperform with Societe Generale, BNP Paribas, and Credit Agricole rising between 0.8% and 1.1%.
• UK's FTSE has added 0.1% with BP and Royal Dutch Shell contributing to the relative strength. The two names are both up near 1.0% while consumer names like Unilever, Sainsbury, Marks & Spencer, Carnival, and British American Tobacco show gains between 0.4% and 1.3%. On the downside, insurers Direct Line Insurance and Admiral Group show respective losses of 6.8% and 2.5% after announcing cuts to discount rates used to calculate personal injury damages awards.
• Germany's DAX trades up 0.1%. Adidas has jumped 4.0% in reaction to upbeat analyst commentary while Deutsche Bank, BMW, and Daimler show gains between 0.2% and 0.9%. Deutsche Boerse is the weakest performer, falling 4.8%, amid concerns about the viability of the merger with London Stock Exchange.
• Italy's MIB trades up 0.9%. Banco Bpm, Intesa Sanpaolo, Banca Pop Emilia Romagna, UBI Banca, and Fiat Chrysler have added between 2.3% and 4.4%.

Treasuries Dip Ahead of Durable Goods Report

• U.S. Treasuries are starting the week with minor losses after an overnight session light on international economic data. An index of overall economic sentiment in the eurozone ticked up to a nine-year high in February, driven higher by strength in France and Spain while the mood in Germany soured. Loan growth accelerated to 2.2% y/y in the eurozone last month and Spanish consumer price inflation remained at 3.0% y/y. Strength in inflation barometers is an artifact of the February 2016 low in oil prices. The year-on-year comparisons will become more difficult as we go through the year, assuming that oil prices do not jump sharply. WTI crude is 0.76% higher this morning at $54.40/bbl. and gold is down 0.21% to $1,255.6/troy oz. The S&P 500 is set to open down 0.09% to 2,365.2 and the U.S. Dollar Index is off by 0.01% to 101.08. The British pound fell as low as $1.2382 this morning on reports that Scotland's first minister, Nicola Sturgeon, might call another Scottish independence vote in March. The pound is currently losing 0.37% at $1.2412
• Yield Check:
  
  • 2-yr: +1 bp to 1.16%
  • 5-yr: +1 bp to 1.82%
  • 10-yr: +2 bps to 2.33%
  • 30-yr: unch at 2.96%

• International News:
  
  • The eurozone's Business and Consumer Survey ticked up to 108.0 in February from 107.9 in January, as expected
    
    • The Business Climate Index remained at 0.8 in February
    • The Consumer Confidence gauge fell to -6.0 from -5.0
    • Services Sentiment rose to 14.0 from 13.0
    • Industrial Sentiment climbed to 1.0 from 0.8
    • On a national basis, France and Spain showed strength while Germany fell to a four-month low
  • Household loans in the eurozone grew by 2.2% y/y in January, accelerating from 2.0% growth in December
    
    • Loan growth to non-financial businesses grew by 2.3% y/y
  • Spain's consumer price index fell 0.3% m/m in February (+3.0% y/y), missing forecasts after a 0.5% decline in January
    
    • Spain's harmonized index of consumer prices also fell 0.3% m/m (+3.0% y/y), matching expectations after a 1.0% drop in January
  • Italy's non-EU trade balance swung to a deficit of EUR0.89 bln in January from a surplus of EUR5.67 bln in December
  • Switzerland's employment level fell to 4.910 million in Q4 from 4.918 million in Q3

• Data out Today:
  
  • January Durable Goods Orders and Durable Goods Orders ex-transportation (08:30 ET)
  • January Pending Home Sales (10:00 ET)
• Fed Speaker:
  
  • Dallas Fed President Kaplan (FOMC voter) (11:00 ET)

Upgrades: 

• Adidas AG (ADDYY) upgraded to Buy from Neutral at UBS

Downgrades: 

• Grana y Montero (GRAM) downgraded to Underweight from Neutral at JP Morgan
• Drax Group (DRXGY) downgraded to Underweight from Equal Weight at Morgan Stanley
• Rightmove (RTMVY) downgraded to Equal Weight from Overweight at Morgan Stanley
• Nordex (NRDXF) downgraded to Sell from Hold at Deutsche Bank
• Nordex (NRDXF) downgraded to Hold from Buy at HSBC
• Nordex (NRDXF) downgraded to Underweight from Equal Weight at Barclays
• Nordex (NRDXF) downgraded to Underperform from Neutral at Macquarie

Miscellaneous: 

• None of note

• Kura Oncology, Inc. (KURA) announced an oral presentation for its lead product candidate, tipifarnib, at the 15th International Congress on Targeted Anticancer Therapies (TAT 2017), taking place March 6-8, 2017 in Paris, France. The presentation will feature clinical data from the first stage of Kura Oncology's tipifarnib Phase 2 program in HRAS mutant tumors.
• China Lodging Group, Limited (HTHT) announced that its wholly-owned subsidiary China Lodging Holdings (HK) Limited has entered into a definitive share purchase agreement with the shareholders of Crystal Orange Hotel Holdings Limited to acquire all of the equity interests of Crystal Orange for an initial aggregate consideration in cash of approximately RMB 3.65 billion, with customary post-closing adjustments. The closing of the Transaction is subject to the approval from the Antitrust Bureau of Ministry of Commerce of China.
• HTG Molecular Diagnostics (HTGM) announced that its new direct-target sequencing chemistry will be available in the company's VERI/O laboratory as a service offering beginning in the first quarter of 2017. The new chemistry is designed for direct sequencing of specified DNA and, in the future, RNA targets with the same high sensitivity and specificity as the company's current HTG EdgeSeq chemistry applications. The initial panel planned for the VERI/O laboratory will detect common mutations in the EGFR, KRAS and BRAF genes for retrospective research studies especially from small and difficult samples, such as formalin-fixed, paraffin-embedded tissue.
• Five Star Quality Care (FVE) announced that it will issue a press release containing its fourth quarter and year end 2016 financial results before the Nasdaq opens on Friday, March 3, 2017. At 10:00 a.m. Eastern Time that morning, President and Chief Executive Officer Bruce Mackey, Chief Financial Officer and Treasurer Rick Doyle and Chief Operating Officer Scott Herzig will host a conference call to discuss these results.
• Recro Pharma (REPH) announced completion of enrollment for its double-blind Phase III safety study evaluating the safety and tolerability of intravenous (IV) meloxicam (N1539) following major surgery. 

Equity futures point to a slightly lower open this morning as investors look to extend the Dow's streak of record closes to twelve on Monday. The S&P 500 futures trade two points below fair value.

The Treasury market holds a modest loss on Monday morning after finishing Friday near its three-month high. The benchmark 10-yr yield is currently two basis points higher at 2.33%.

Crude oil shows a solid gain in early action with WTI crude trading 0.7% higher at $54.36/bbl.

On the data front, investors will receive January Durable Orders (Briefing.com consensus 1.8%) and January Pending Home Sales (Briefing.com consensus 0.9%). The two reports will cross the wires at 8:30 am ET and 10:00 am ET, respectively.

In U.S. corporate news:

• Apple (AAPL 137.14, +0.48): +0.4% after Warren Buffett said that he more than doubled his holdings in the company between January 1 and the company's earnings report on January 31.
• Urban Outfitters (URBN 26.00, -0.88): -3.3% after the company's stock was downgraded to 'Sell' from 'Neutral' at MKM Partners.
• Gogo (GOGO 9.79, +0.67): +7.4% after beating top and bottom line estimates in addition to issuing positive revenue guidance. 

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region began the week on a lower note, but no major index lost more than 1.0%. Japan's Nikkei -0.9%, Hong Kong's Hang Seng -0.2%, China's Shanghai Composite -0.8%, India's Sensex -0.3%.
  • In economic data:
    • Australia's Q4 Company Gross Operating Profits +20.1% quarter-over-quarter (expected 8.0%; last 1.5%). Q4 Business Inventories +0.3% month-over-month (expected 0.5%; last 0.9%)
    • Hong Kong's trade deficit HKD12.30 billion (expected deficit of HKD45.50 billion). January Imports -2.7% month-over-month (last 8.7%) and January Exports -1.2% month-over-month (last 10.1%)
  • In news:
    • China Securities Regulatory Commission Chairman Liu Shiyu said that China is ready for a larger supply of IPOs, thanks to a stronger than expected recovery from a swoon in 2015.

• Major European indices trade in mixed fashion with Italy's MIB showing relative strength. France's CAC -0.1%, UK's FTSE +0.1%, Germany's DAX +0.1%, Italy's MIB +0.9%.
  • In economic data:
    • Eurozone February Business and Consumer Survey 108.0, as expected (last 107.9). January M3 Money Supply +4.9% year-over-year (consensus 4.8%; last 5.0%) and Private Sector Loans +2.2% year-over-year (consensus 2.1%; previous 2.0%)
    • Spain's CPI -0.3% month-over-month (expected -0.2%; last -0.5%); +3.0% year-over-year (consensus 3.3%; last 3.0%)
  • In news:
    • Italy's Democratic Party has scheduled a primary vote for April 30, which is seen as a precursor to a general election being called later in the year.
    • Fitch affirmed Greece's sovereign rating at ‘CCC' while Moody's affirmed Germany's ‘AAA' rating with a ‘Stable' outlook.
    • The British pound is down 0.4% against the dollar at 1.2412 amid reports Scotland may conduct another independence referendum once the UK triggers article 50.

• Interpace Diagnostics Group (IDXG) announced the acceptance of four posters to be presented at the upcoming United States and Canadian Academy of Pathology (USCAP) meeting being held March 4-10, 2017 in San Antonio, Texas.  The posters reflect a review of data from the Company's extensive experience in molecular thyroid testing, including experience with over 5000 analyses of indeterminate thyroid nodules using its combined mutational (ThyGenX) and microRNA classifier (ThyraMIR) testing format. Fundamental insights into the mechanism of thyroid cancer development and progression are reported as well as a comprehensive statistical analysis of the mutational and microRNA profiling features representing the largest integrated analysis of DNA and RNA alterations in existence for commercially available molecular products in the area of thyroid cancer.
• Raytheon Company (RTN) demonstrated, in a recent flight test, single-ship geolocation capability for the ALR-69A(V), a first for any radar warning receiver.
  The AN/ALR-69A(V) — the world's first all-digital radar warning receiver — enhances aircrew survivability, providing «sensors forward» situational awareness at lower costs than competing systems through simple software modifications.
• NAPCO Security Technologies (NSSC) announced it has formally launched its Starlink Connect Radio product. The radio was recently showcased at the ISC East security trade show in New York and was well received by the security professionals in attendance.
• Cellular Biomedicine Group (CBMG) announced that the governing Board of the California Institute for Regenerative Medicine, California's stem cell agency, has awarded the Company $2.29 million to support pre-clinical studies of AlloJoinTM, CBMG's «Off-the-Shelf» Allogeneic Human Adipose-derived Mesenchymal Stem Cells for the treatment of Knee Osteoarthritis in the United States.
• Cherwell Software announced it has secured $50 million in funding from KKR (KKR).  KKR is making the investment through its Next Generation Technology Fund, which focuses on investments in software, security, Internet, digital media, and information services.
• Aimmune Therapeutics (AIMT) announced that new clinical data on AR101 will be presented during poster sessions on Monday, March 6, at the 2017 American Academy of Allergy, Asthma & Immunology Annual Meeting taking place March 3--6, 2017, in Atlanta, Georgia. The presentations will report data from the Phase 2 ARC001 study (Abstract 803) and from the screening population of the PALISADE Phase 3 study (Abstracts L20 and 807). 

Gapping up:

Earnings: GOGO +5.3%, LUK +3.0%.

General news:

• LJPC +40.2% (announces positive top-line results from athos-3 phase 3 study of LJPC-501; 'primary efficacy endpoint analysis highly statistically significant'),
• PIRS +17.2% (granted ASKA Pharma an exclusive option to license development and commercial rights to Pieris' anemia drug, PRS-080, in Japan and certain other Asian markets following completion of a multi-dose Phase 2a study; co will receive an immediate option payment of $2.75 mln from ASKA),
• ATRS +12.0% (announces that the New Drug Application for QuickShot Testosterone has been accepted for standard review by the FDA),
• ACRX +8.3% (New Drug Application for DSUVIA accepted for filing; PDUFA date is October 12, 2017),
• FEYE +2.3% (still checking)

Analyst actions:

• PTEN +3.4% (added to US 1 List at BofA/Merrill),

Gapping Down:

Earnings related: BCRX -16.2%, SSTK -11.4%, JKS -2.2%

General news:

• NVFY -9.7% (pulling back following recent gains)
• DRYS -8.5% (still checking)
• SPKE -7.0% (pulling back following Friday's spike on M&A chatter)
• VIAV -2.8% (commences $400 mln private offering of its Senior Convertible Notes due 2024; intends to use up to $75 mln of the proceeds from the offering to repurchase common stock to its existing program)

Analyst actions:

• SUI -5.9% (downgraded to Neutral from Buy at Citigroup)
• URBN -3.3% (downgraded to Sell from Neutral at MKM Partners)
• TSLA -2.7% (downgraded to Sell from Neutral at Goldman; tgt lowered to $185 from $190)
• NVMI -2.7% (downgraded to Hold at Stifel; tgt $18)

Filings:

• Atlantica Yield (ABY) files for offering of 41,530,843 ordinary shares held by selling shareholders Abengoa Concessions Investments
• Aqua Metals (AQMS) files for 939,005 common stock offering by selling stockholders
• Ares Management (ARES) files for offering of common units and preferred units representing LP interests by the co and/or certain selling unitholders; size not disclosed
• Camber Energy (CEI) files for $150 mln mixed securities shelf offering
• Cotiviti (COTV) files for 7 mln share common stock offering by selling shareholders
• Foamix (FOMX) files for $291,936,389 ordinary share offering (including the shares carried forward from the Previous F-3 Registration Statement)
• Fortress Transportation and Infrastructure (FTAI) files for mixed securities shelf offering; size not disclosed
• Leaf Group (LFGR) files for $100 mln mixed securities shelf offering and 8 mln share offering by holders
• Bio Blast Pharma (ORPN) files for $10 mln ordinary share offering
• Penske Auto (PAG) files mixed securities shelf offering
• Sunstone Hotel (SHO) files mixed securities shelf offering
• Southern (SO) files mixed securities shelf offering
• Uranium Resources (URRE) files for $60 mln mixed securities shelf offering
• Wells Fargo (WFC) files mixed securities shelf offering

Offerings:

• Encore Capital (ECPG) commences $125 mln private placement of convertible senior notes due 2022
• Viavi (VIAV) commences $400 mln private offering of its Senior Convertible Notes due 2024

Pricings:

• MGT Capital Investments (MGTI 0.77) entered into a Securities Purchase Agreement relating to the issuance and sale of 1,000,000 shares of common stock at a purchase price of $0.40 per Share
• Parkervision (PRKR 2.13) enters into a subscription agreement providing for the sale of 80,510 shares of common stock at a price of $2.11 per share to one of the Company's directors

The S&P 500 opened Monday's session below its flat line, showing a loss of 0.2%.

Financials (+0.2%) show relative strength while countercyclical spaces like consumer staples (-0.5%) and utilities (-0.5%) show relative weakness.

The top-weighted technology sector (-0.3%) performs just behind the broader market. The group's top component by weight, Apple (AAPL 136.39, -0.27), trades lower by 0.2% despite the company showing a modest gain in pre-market trade earlier this morning.

• PCLN is expected to report fourth quarter earnings tonight after the close. There is a conference call scheduled for 16:30 (the company typically guides in the press release).
• Q4 Capital IQ consensus calls for EPS of $14.12 (versus $12.63 last year) on revenue of $2.33 billion (+16.3% YoY).
• The company is expected to guide for the first quarter where consensus stands at $11.94 for EPS.
• PCLN's peer Expedia (EXPE) reported earnings earlier this month. The company missed on the bottom line and beat on the top line. EXPE shares are down ~3% since reporting.

Key Points From Last Quarter

• Third quarter gross travel bookings for The Priceline Group were $18.5 billion, an increase of 25% over a year ago (~26% on a constant-currency basis).
• The Group's gross profit for the 3rd quarter was $3.6 billion, a 22% increase from the prior year (~23% on a constant-currency basis).
• International operations contributed gross profit in the 3rd quarter of $3.3 billion, a 25% increase versus a year ago (approximately 26% on a constant-currency basis).

Metric Guidance:

• Looking ahead to the fourth quarter, the company sees room night booked increasing between +20-25%.
• The company sees total gross travel bookings of +16-21% or +17-22% in constant currency.
• Co sees Q4 adjusted EBITDA between $755-795 mln vs $790 mln last year.

Analyst Notes:

• Stifel said Priceline's effective strategy to extend its share in secular growth markets organically has demonstrated the strength of the platform's competitive moat. The firm believes that PCLN fits alongside other dominant internet franchises such as Amazon (AMZN), Google (GOOG), Facebook (FB), and Alibaba (BABA). Last quarter the company accelerated room night growth to 29% y/y, adding 34mm incremental room nights' y/y, the largest in PCLN's history. For 2017 they expect room nights' growth of 22% y/y despite its scale (~7.6% global penetration), which is comparable to their estimates for Amazon's 26% y/y paid unit growth and Google's 23% y/y paid clicks growth. Priceline may face near-term headwinds from ad ROI pressure, but they view the platform as one of the most disciplined, efficient ad spenders in their coverage. This concentration on ROI and technology could provide leverage upside to their model over the long-term as customer LTV grows with better conversion and up-sell rates. PCLN's track record exhibits the key qualities of a high-quality internet franchise and we believe shares present a LT growth opportunity from current levels.

Options Activity

• Based on PCLN options, the current implied volatility stands at ~ 26%, which is 129% higher than historical volatility (over the past 30 days). Based on the PCLN Mar03 $1627.5 straddle, the options market is currently pricing in a move of ~5% in either direction by February expiration (Friday)

Technical Perspective

The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).

Large Cap Gainers

• MLM (219.25 +4.38%): Infrastructure names seeing strength as President Trump reiterates he will make statements regarding infrastructure plan during Tuesday's address to Congress (URI, VMC, CAT...).
• NVDA (104.42 +2.92%): Shares rise after plunging 9.3% last Thursday after analysts from both BMO Capital and Instinet downgraded NVDA shares last Thursday morning.
• ILMN (163.97 +2.48%): Upgraded to Buy from Hold at Evercore ISI.

Large Cap Losers

• TSLA (244.24 -4.96%): Downgraded to Sell from Neutral at Goldman; tgt lowered to $185 from $190.
• SNN (30.28 -1.37%): Downgraded to Neutral from Buy at Goldman.

Mid Cap Gainers

• BID (45 +12.25%): Reports Q4 EPS and revenue beats.
• AWI (45 +12.22%): Reports Q4 EPS beat; guides FY17 EPS and revenues above consensus.
• TGNA (26.44 +6.61%): Reports Q4 EPS beat.

Mid Cap Losers

• AFSI (23.88 -13.67%): Shares fall despite Q4 EPS and revenue beats; updates on anticipated timing of 10-K filing.
• AES (11.34 -4.99%): Reports Q4 revenue miss; guides FY17 EPS below consensus.
• HZNP (16.61 -4.84%): Shares fall despite Q4 EPS beat, revenues in-line; guides Q2 revs below consensus.

Rumor Activity was active to start out the week.

• Reuters discussed that Michael Kors (KORS 37.55 +0.24) and Coach (COH 38.69 +0.67) have moved into second round of bidding for Kate Spade (KATE 23.75 +0.48).
• Marbridge detailed that JD.com (JD 30.86 +0.59) said to be planning to spin out its JD Finance unit.
• M&A blogger Ben Harrington (Betaville) in weekly video interview discussed unsubstantiated speculation that Affiliated Managers (AMG 168.63 +0.60) and T. Rowe Price (TROW 72.18 +0.23) are among parties 'circling' Legg Mason (LM 37.31 +0.16).
• Reuters discussed that CIBC (CM 89.77 -0.66) may move to 'marginally improve' its current acquisition offer for PrivateBancorp (PVTB 56.88 +0.13).
• Reuters detailed that Total S.A. (TOT 50.32 +0.06) is in talks to acquire a 'multi-billion dollar' stake in an Iranian LNG export facility.

While many rumors circulate during the day, and the validity of the source of these rumors can be questionable, the speculation may increase volatility in the near term

• The Dollar Index is sliding below the 101 level as we prepare for March. This week we will get the usual run of key data including the Personal Income & Spending and the ISM Services on Wednesday. Of note, due to the current cycle, the February jobs number is not released until March 10. President Trump is heading to Capitol Hill tomorrow but expectations are for him to remain vague on details of his fiscal plans. This week we will also get the latest Beige Book (Wed) and speeches from Fed Chair Janet Yellen and number two Stanley Fischer (Fri). This will help set the tone ahead of the Fed's March 15 meeting.
• The euro is attempting to press back above the 1.06 level. Yields in the region have eased as the most recent French polls are showing Left candidate Emmanuel Macron beating Marine Le Pen in the second round of the French elections. This has always been the case but it would appear there has been an easing on some of the concerns around a Le Pen victory.  The single currency will need to hold the 50-sma/1.06 area will be key.
• The pound is attempting to hold the 1.24 level to start off the week. Sterling came under pressure late last week as stories of the E.U. tagging the U.K. with EUR 62 bln exit bill have led to concerns over future trade talks. March will hold two EU meetings (March 10 and 25) and the U.K. is expected to invoke its Article 50 departure at one of the meetings. 
• The yen is testing the 112 area for resistance. The 100-sma (111.84) is lining up as a key level for the yen. Yen has rallied approx 5% in 2017 despite the global market rally.
• The yuan is holding steady in the 6.85 area. Over the weekend there was a story out that China approved hedging tools including FX forwards, FX swaps and currency swaps for foreign investors in China's interbank bond markets as it attempts to lure capital back (BONDX, FOREX).