Via Dave Lutz, head of ETFs at JonesTrading, here’s a quick guide to what traders are talking about right now:
Good Morning! Spoos adding to Friday’s gains, climbing 20bp as Tech continues to outperform. Earnings winding down with 1 DJIA component and 23 S&P companies this week — 88% of the index has already posted numbers. Over in Europe, Markets acting well with the DAX popping 1% – Miners acting well, but Banks are jumping sharply, with SX7P up 2.2%. In London, the FTSE 100 nears 14-month high as those Fins and Materials well outperform. Summer Monday volumes across the continent tho, with most exchanges trading 20-30% below normal turnover. Solid start to the week in Asia, as Shanghai brushed off China Trade Data, getting back upside 3,000 – Nikkei jumped 2.4% as Yen broke lower – Hong Kong jumped 1.6%, while Aussie climbed 75bp led by banks and miners. Turnover was steady to start the week.
The DXY continues to rally, making gains against Euro despite EU Investor confidence rebounding sharply, while Commodity Currencies are all acting well to start the week. There was decent selling in JGB’s again ahead of their 30Y auction, pressing US and German Yields near unch as Fed Funds at 26% chance September Hike, up from 18% pre-Jobs report. Industrial commodities acting well, as Ore ripped another 2% higher in Dalian — pressing Copper and Industrial Metals Higher. WTI is up 1.5% on Wishful OPEC chatter — but that crowd in Natty Gas getting hit for another 1.3% early. Softs are all acting very well, with Sugar jumping 2.5% and Wheat 1.3% early.
Ahead of us today, we get the Labour Market Conditions Index Change at 10 — Airlines give us Sales/Rev/Traffic data (AF FP, LUV, SAVE, UAL, VA, VECO) — while the VXX and VXZ reverse split 1 for 4 today. Tech remains in focus with Pacific Crest Global Technology, while Earnings from Ralph Lauren, Macy’s, Nordstrom, Kohl’s and Michael Kors keep the retail sector in the forefront this week.