Dave Lutz, head of Exchange Traded Funds at JonesTrading, has a quick overview of what traders are watching on Monday.
The biggest news is in the mergers and acquisitions space. On Saturday, AT&T announced that it agreed to buy Time Warner for $107.50 per share, or $85.4 billion. And TD Ameritrade said on Monday that it is buying Scotttrade for about $4 billion.
It’s the busiest week of earnings season. Visa reports after the closing bell on Monday. Apple, Tesla, and GM results are on deck later in the week.
Good Morning! Format a bit different today …
- US futures up 40-60bp. $100bln of deals on the tape (TWX, GNW, Scottrade, BEAV) ahead of the Busiest week of SPX earnings, with ~180 names reporting.
- Earnings propelling shares in Europe, and Spain jumping 1.5% as the country ended its 10-month leadership impasse.
- Banks continuing to act well across Europe, ahead of DB reporting on Thursday. EU Banks have regained Brexit Losses.
- Asia Mixed – Shanghai climbed 1.2%, Hong Kong popped almost 1%, Nikkei gained 30bp, tempered by weaker Trade data, while Aussie lost 40bp in broad-based selling.
- Euro is stronger early, as Eurozone PMI expands at fastest rate this year.
- US 10YY is breaking downside 200dma as German Bund Yields break back downside 0%.
- Oil Weaker despite $ coming in — Focus on Iraq saying they won’t adhere to quotas.
- Base Metals still rallying — Ore up 2% in China on mill restocking — Turkish Scrap up another 1.3%.
Heavy List of Catalysts today:
ECO (8:30) – Chicago Fed Nat Activity Index
China (9) – Conference Board China September Leading Economic Index
FED (9) — Fed’s Dudley Speaks at U.S. Treasury Market Event in New York
FED (9:05) – Fed’s Bullard Speaks on Economy, Monetary Policy in Arkansas
ECO (9:45) – Markit US Manufacturing PMI
BOE (9:50) – Bank of England Bond-Buying Operation Results
ECB (12:15) – ECB’s Nowotny Speaks at University Event in Vienna
FED (1) – Fed’s Evans Speaks in Chicago
FED (2) – Fed’s Powell Speaks at New York Fed Event on Treasury Market
C$ (3:30) – Poloz and Wilkins to Appear Before Parliament
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