Dave Lutz, head of ETFs at JonesTrading, has an overview of today’s markets.
- Thursday is the biggest earnings day of the season, with Apple, Amazon, Google, and others reporting.
- Facebook and Microsoft reported yesterday, with mixed results.
- Bitcoin is rolling lower.
“Good morning, and hello to the Biggest day of Earnings this Quarter, with AAPL, AMZN and GOOGL on tap, among others. Russell Minis are rebounding from yesterday’s weakness, climbing 30bp, while Tech is lagging as it digests numbers from FB and MSFT (15% QQQs combined). It’s a sea of Green over in Europe, where the DAX is up 20bp – Banks leading to upside on DNB and BBVA numbers, while Telecom loves Nokia’s 7% rip. Consumer names are taking a breather – In London, the FTSE is unch as Sterling gathers upward steam – Miners basically flat, while a bid in Banks is being offset by healthcare weakness. In Asia, Nikkei ripped 1.7% higher, led by the big Banks – Hang Seng lost 75bp and Shanghai lost 1% as Tech and Telecom were dumped as “profit-taking ahead of Lunar new Year Holidays” prevailed – KOSPI basically unch, while Aussie up 90bp as Banks and Miners jumped
“The DXY is basically unch, but the US 10YY keeps touching 2.75% as Sovs globally get hit – JGB’s close pinned to the BOJ’s target overnight, while Indian Bonds getting drilled on the Budget, and German 10YY is up 3bp as UBS calls for 1% touch by years end. Euro bid on Strong EU PMIs, while Sterling shrugging off UK Manufacturing posting light. Metals are all weaker with Ore off 70bp in China, weighing slightly on Copper – while Gold is weaker despite the $ and Bitcoin rolling towards $US9k. oil Complex well bid, shrugging off surging output, while Natty is getting drilled for 2.5% into Inventories later this AM.”