Dave Lutz, head of exchange-traded funds at JonesTrading, has a brief on what’s happening in markets and what traders are watching.
In brief, US futures are slightly higher after the worst day of the year so far, as the FTSE in London heads for a 14th record closing high. The December retail sales report and a dump of earnings from big banks including JP Morgan are due before the opening bell.
US futures 20bp higher – Nasdaq rebounding from 1st red close 2017, but all focus on the Big Banks number hitting around 8am then Retail Sales at 8:30.
Europe all Green – FTSE going for 14in a row as Miners and HC rebound, but Euro Autos hit on Renault headers. DAX up 50bp and no angst evident into DBRS decision on Italy today. A downgrade would lead to big increase in haircuts on ECB collateral.
Aussie lost 80bp as Banks and Miners weighed – Hong Kong up 50bp, while China lost 20bp — while Nikkei jumped 80bp as Yen falls for the 1st day in 5 – Takata leaps on Airbag Settlement, offsetting Nintendo’s smackdown.
10YY jumped higher early – Yellen says she’s upbeat about short-term economic outlook last night, but a sharp bid has emerged, driving US Yields 2bp in the red. Big Reversal in German Yields — had leapt higher on better GDP, but have reversed hard.
Dollar coming off as Sterling rebounds and Euro climbs – Copper down 30dp despite headers China Imports leapt 30% – Gold going for it’s 6th rally in a row – WTI surrendering a pile of yesterday’s gains, while Natty holding the week’s 9% Rally.
Ahead of us today:
- Earnings #s – BAC, BLK, JPM, PNC, WFC
- ECO (8:30) — PPI and Retail Sales for December
- FED (9:30) – Fed’s Harker Speaks on Economic Mobility in Philadelphia
- ECO (10) – Business Inventories and U. of Mich. Sentiment
- Energy (1) — Baker Hughes Rig Count
- Italy (1-2) – DBRS Rules on Italy around 1800-1900GMT (1-2ET)
- ECO (2) – Monthly Budget Statement
- CFTC (3:30) — “Commitment of Traders” data
- In DC, Confirmation hearings roll and House may vote on Senate budget resolution which sets repeal of ACA