Dave Lutz, head of ETFs at JonesTrading, has an overview of today’s markets.
- US markets are on the rise after a rough two days.
- Facebook and Microsoft report after the bell.
- Boeing, Nintendo, and AMD have released their earnings.
“Morning, and welcome to the Last day of Month! US Futures are recovering from the 2day selloff, with the Spoos up 30bp as the FOMC “Drift” kicks in. I see a Tentative bid in Healthcare stocks after yesterday’s Bezos smashdown, while Tech is watching AMD’s 6% rally from post EPS lows last night. Pretty flat indices overseas in Europe, where the DAX is up 10bp with Autos acting well behind Volvo and Industrials up small behind Siemens – but Tech continues to sell off with Infineon off 2%. Stockholm in the red despite a rip higher in Electrolux as Ericsson and H&M gets slammed, while the FTSE is down 15bp with All eyes on Govt’s Contractor Capita collapsing, following Carillion. Mixed Bag in Asian Trade as China PMI missed – Nikkei hit into the close, erasing the day’s gains – Hang Seng up almost 1% despite broad weakness in Energy shares as Chinese banks rebounded – KOSPI off small as Samsung surrendered a 9% early bid and Aussie closed up 25bp
“The US 10YY is off small, but holding upside 2.7% as we await Yellen’s Last (2pm Statement, No Presser). BOJ ramped JGB buys as 10YY touched their target, while Bunds are basically unch. There is Broad Dollar Pressure post SOTU – China’s Yuan and the Peso both happy with no sharp comments on trade issues, while Euro bid despite Lower EU Inflation. Ore off 1.5% in China, but Commodities love the weaker Greenback with Copper up 1% and Gold 50bp – but the Energy complex is under pressure as Natty finally sees some profit-taking, and a bigger build in API data has WTI off 70bp into DoE data later this morning.”