Dave Lutz, head of ETFs at JonesTrading, has an overview of today’s markets.
- Netflix crushed its earnings report and jumped to record highs.
- Asian markets are trading in the green, despite new tariffs from Trump.
- Bitcoin is hovering just above the $US10,000.
Good Morning! US Futures were marked higher, led by QQQs as NFLX leaps 8%+ on numbers, but drawdowns in the commodity complex, coupled with profit-taking from all-time highs has weighed over the last hour. Earlier the DAX kissed a record high, led by a 2% squeeze in Healthcare – Airlines acting well behind EasyJet, while Retailers liking Carrefour headers. Right now the DAX is up 50bp in heavy trade, with volumes 40% above recent trend – Selling in the Banks seems to be a big trigger in the futures weakness in the last hour. The FTSE shrugging off stronger Sterling despite Banks lower and Miners getting hit, as Consumer names act well. It was a Strong overnight in Asia despite Trump Tariff Headers – Nikkei up 1.3% – Hang Seng up 1.7% as Consumer and Tech ripped higher – Shanghai up 1.3% – KOSPI adding 1.4% as Sammy jumped 2% – Aussie added 70bp – Sensex squeezed thru 36,000
BOJ comments has a decent bid under both Yen and JGB’s – causing a rally across the Sovereign complex. A Strong ZEW has Bunds trading higher, pressing the German 10YY 2bp lower and weighing on Treasury Yields. Ahead of ECB Thursday, the Euro is drifting as it looses ground to the British Pound, as Sterling tests $US1.40 overnight. Gold is bid despite the $ being slightly higher, while Bitcoin is rolling to test $US10,000 on more South Korea Headers. Ore was hit for 4.5% in Singapore, driving Copper off 2% to fresh 2018 lows, while Platinum drops 50bp. WTI is up small despite the IEA seeing “Potential Further Upward Revision Of US Shale Output” – While Natty Gas continues to squeeze higher, up 3%, bringing YTD gains close to 13%.