Dave Lutz, head of Exchange Traded Funds at JonesTrading, has an overview of what’s happening in markets on Thursday.
- Stock futures are slightly higher as the packed earnings-reporting week continues, and key companies beat expectations. American Express shares are up 6% pre-market after the company beat on profits and raised its guidance for the full year.
- The Mexican peso is little changed after the final presidential debate. The currency has previously been used as a gauge of where traders see the election results tilting, given Trump’s tough talk on trade and immigration.
- In US economic data, weekly initial jobless claims cross at 8:30 a.m. ET, and existing home sales drop at 10 a.m. Amazon, Microsoft, and PayPal report earnings after the closing bell.
Good Morning! US Futures are up marginally as AXP propels the fins ahead of the ECB (7:45 Headers, 8:30 Presser). Over in Europe, Cautious trading as we await the Draghi, with the DAX up 20bp as the Fins post gains again and Airlines are ripping on Deutsche Lufthansa, while the Media sector gets whacked on Publicis #s. The FTSE is retreating a bit as Discretionary falls 1% on weaker UK retail sales. Volumes across the continent are light, pacing 10-20% below recent trends. Oil and Miners led gains across Asia — Shanghai added small – Nikkei up 1.1% – Hang Seng up 70bp ahead of Typhoon Haima which could potentially affect Friday trading, while Aussie added small, gains tempered by bad Employment data down under.
The 10YY is hanging above 200dma as Dudley was talking a 2016 Hike last night, reiterating WSJ comments from last week. The DXY has a slight bid to it as the Pound weaker on Retail sales, while commodity currencies are retreating. The Peso unch as debate results are ferreted, while the Euro losing ground for 7th time in 9 sessions — now weakest since July into the ECB. Ore jumped nearly 2% in China, but other base metals are weaker with Copper, Zinc and Platinum all red, while Gold is holding a slight bid. Oil retreating from 15month highs into Expiry today, dropping 1% – while Natty Gas is recovering some of yesterday’s losses into Inventory data later.
Ahead of us today, we get the ECB Rate Decision at 7:45, followed by the Draghi Presser at 8:30, right when Philadelphia Fed Business Outlook and US Weekly Jobless Claims hit. At 10am, we get the Existing Home Sales for September, and 10:30 brings the Natty Gas Inventory data. At 1pm the US Treasury auctions $5B in a 30-Year TIPS Reopening — and at 2:30 WTI Spot contracts roll on NYMEX Close. After the close, focus on #s from AMD, AMZN, KLAC, MSFT, PYPL, SLB among others.