Via Dave Lutz, head of ETFs at JonesTrading, here’s a quick guide to what traders are talking about right now:
Good Morning! US futures are retreating small as WTI retreats into inventory data and earnings weighs on TGT and LOW. Over in Europe, a swath of red on screens, with the DAX down 1.2% as Miners under pressure and Semis heavy on ASML headers. Fins are retreating from recent run, losing 1.5% across the continent, while in London the FTSE is outperforming, with “Bond Proxies” of Telecom, Staples and Utes gaining flows. Volumes remain light, with most exchanges trading 20% light to recent trends. In Asia, the Nikkei rose 90bp as the Yen dropped, Shanghai was flat, while Shenzen popped 30bp — and Aussie added small, weighed by some heavyweights going ex-divvy.
Treasury Yields remain on peaks into Bullard and “Hawkish” Fed Minutes, while Bunds nearing the zero bound as heavy selling continues. The DXY is continuing to rebound from yesterday’s smack, as the Kiwi and Aussie $s are getting hit, while BOJ jawboning helped the Yen weaken, but $/Y 101 just rejected. Ore dropped 2.5% in China, and we have Silver, Copper and Nickel all under pressure, while Gold drops on the popping greenback. In Energy, Oil taking a breather after its best 4day rally since April, while Gasoline is dropping 2% as much larger builds were reported in Stockpiles. Softs look flat to weaker across the board.
Ahead of us today, we get the Architecture Billings Index — then at 10:30 all eyes on DOE data for Crude, Gasoline and Distillates at 10:30 – Told APIs come in with a bigger draw (-1mm, estimates at +900k) – HUGE builds Gasoline +2.2M (Street looking for -1.8mm) and Distillates (+2.4mm, Street looked for -500k). Cushing draw bigger than expected at -700k. (Genscape looking for a 350k draw from Cushing). At 1pm, Fed’s Bullard (hawk, Voter) Speaks in St. Louis, just before the Fed Releases Minutes from July 26-27 FOMC Meeting at 2pm.