• Global stocks are stronger with the European DJ Stoxx 50 Index up +0.58% at a 1-month high and March S&Ps up +4.60 points at a 1-1/4 month high. Global stocks gained ahead of the Feb US payrolls report that will provide clues about the strength of the recovery. The dollar and Treasuries are little changed and most commodities are higher. Greece successfully raised 5 billion euros ($6.8 billion) in a sale of 10-year bonds and Jean-Claude Juncker, who heads the group of Euro-Zone finance ministers, said Greece "won't be left alone" as it tries to tame a record budget deficit. European stocks also received a boost after Jan German factory orders rose a more-than-expected +4.3% m/m and +19.6% y/y. The +4.3% m/m increase is the biggest monthly gain in 2-1/2 years as a revival in global demand shows the recovery strengthening. Basic-resource producers rallied as commodity prices rose and Volkswagen AG, Europe's largest automaker, climbed 2.3% after Citigroup upgraded the stock to "buy" from "hold." Limiting gains in European stocks was the 1.1% drop in Salzgitter AG after Germany's second-largest steelmaker posted a full-year net loss of 386.9 million euros, wider than analysts' estimates of a 239 million-euro loss.

• The Asian markets today closed higher with Japan up +2.20%, Hong Kong +1.03%, China +0.28%, Taiwan +1.27%, Australia +0.35%, Singapore +0.78%, South Korea +1.01%, India +0.13%. The yen weakened and Japanese stocks gained after the Nikkei newspaper reported that the BOJ would discuss ways to lower short-term rates at its 2-day policy meeting starting March 16. Japanese exporters were boosted after the yen dropped and Asian shipping companies gained after the Baltic Dry Index, a gauge of shipping rates, soared 7.2%, its biggest increase since July. Chinese stocks came off of their best levels after Premier Wen Jiabao warned of "latent risk" in China's banks and pledged to crack down on property speculation as the government struggles to avert building asset bubbles. Wen also said the government will promote the yuan's usage abroad and aims to manage inflation expectations.

• March S&Ps this morning are trading up +4.60 points at a 1-1/4 month high. The US stock market yesterday erased morning losses and pushed higher into the close to finally settle on its high (Dow Jones +0.46%, S&P 500 +0.37%, Nasdaq Composite +0.51%). Bullish factors for stocks included (1) an improvement in the labor market after initial weekly US unemployment claims fell -29,000 and weekly continuing unemployment claims fell to their lowest level in 14 months (-134,000 to 4.500 million), (2) the upward revision to Q4 US productivity to +6.9% q/q from +6.2% q/q, as companies squeezed more out of remaining workers to boost output and earnings, (3) slack wage pressures after Q4 unit labor costs were revised down to -5.9% q/q from the previously reported -4.4% q/q, which led total US labor costs to decline -1.7% in 2009, the biggest drop since records began in 1947, and (4) strength in retailers after Feb ICSC chain store sales rose +3.7% y/y, their biggest increase in 2-1/4 years along with total Feb US comparable-store sales rising 4.1% m/m, their sixth straight monthly gain and the biggest increase in 27 months.

• Bearish factors for stocks included (1) weakness in housing stocks and homebuilders after the unexpected drop in Jan US pending home sales of -7.6% m/m versus expectations of +1.0% m/m, (2) a drop in energy and raw material producers after a stronger dollar prompted a sell-off in commodities, and (3) comments from St. Louis Fed President Bullard who said that he sees a "substantial number" of US bank failures in 2010.

• TiVo (TIVO) gained 2.7% in pre-market trading after JPMorgan Chase upgraded the stock to "overweight" from "neutral."

• Cooper Cos. (COO) slumped 5.7% in pre-market trading after the maker of optical lenses, surgical instruments and diagnostic products reported Q1 profit of 59 cents a share, below analysts' estimates of 61 cents.

• June 10-year T-notes this morning are trading down -1 tick. T-note prices yesterday showed some weakness early in the session but then strengthened to settle up +3 ticks at 117-165. Bullish factors yesterday included (1) the upward revision to Q4 nonfarm productivity to +6.9% q/q from the previously reported +6.2% q/q, (2) weak wage pressures after Q4 unit labor costs were revised down to -5.9% q/q from a previously reported -4.4% q/q, which led total US labor costs to decline -1.7% in 2009, the biggest drop since records began in 1947, (3) the unexpected drop in Jan US pending home sales (-7.6% m/m versus expectations for +1.0% m/m), and (4) comments from St. Louis Fed President Bullard who said that he sees a "substantial number" of US bank failures in 2010 and that low interest rates are "appropriate" as the economic recovery is still in its early stage. Bearish factors included (1) the larger-than-expected decline in weekly continuing unemployment claims which fell to their lowest level in 14 months (-134,000 to 4.500 million versus expectations of -17,000 to 4.600 million), and (2) hawkish comments from Chicago Fed President Evans who said that "leaving the current highly accommodative monetary policy in place for too long would eventually fuel inflationary pressures."

• The dollar index this morning is little changed with the dollar/yen +0.37 yen and the euro/dollar +0.04 cents. The dollar index yesterday strengthened and finished moderately higher. Bullish factors yesterday included (1) weakness in the euro after the ECB left interest rates unchanged and extended some of its emergency liquidity measures following its monthly policy meeting, which shows that the ECB remains cautious in withdrawing stimulus measures too quickly and shows no inclination to raise interest rates, and (2) the yen Libor rate falling below the dollar Libor for the first time since August, which reduces the appeal to sell the dollar in carry trades. Bearish factors included (1) the early rally in the yen to a 2-3/4 month high against the dollar on speculation that Japanese companies will repatriate overseas earnings before their fiscal year ends this month, and (2) comments from St. Louis Fed President Bullard who said that "right now, we want to be very accommodative because the economy is in the early stages of recovery," which is negative for the dollar's interest rate differentials as it suggests he is not in favor of tightening monetary policy anytime soon.

• April crude oil prices this morning are up +40 cents and Apr gasoline is +0.99 of a cent. Apr crude oil yesterday moved lower most of he day and settled down -$0.6 per barrel. Apr gasoline closed down -1.39 cents per gallon. Bearish factors included (1) the stronger dollar, which reduces the investment appeal of commodities, (2) the unexpected decline in Jan US pending home sales, which raises concern about the sustainability of the economic recovery and energy demand, and (3) concern that China will raise borrowing costs that could dampen its energy demand after China's Industrial Bank predicted that new loan growth will be cut in half this year as the government orders lenders to curb borrowing. Bullish factors included (1) continued militant attacks on oil installations in Nigeria, which may curtail crude exports from Africa's largest oil exporter, and (2) the prediction from tanker-tracker Oil Movements that OPEC will ship 22.87 million barrels of crude a day in the month ending Mar 20, down -2.3% from the 23.42 million barrels a day shipped in the month ended Feb 20 as winter demand ebbs and refiners prepare for seasonal maintenance.

Earnings reports (confirmed releases, sorted by mkt cap) ESGR-Enstar Group Limited (BEST earnings consensus ($6.30), AYR-Aircastle Limited (0.30), BLT-Blount International (0.23), COKE-Coca-Cola Bottling Consolidated (0.06).

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