Dave Lutz of Stifel Nicolaus has a roundup of what traders are chatting about ahead of the U.S. market open.
Good Morning, and welcome to “Blue Monday” — the most “miserable” day of the year! US futures are shrugging that off, gaining small but near overnight highs. European Markets are starting on a decent footing, with the DAX gaining 30bp, but Spain is surging on Economic data — helping the EU fins to jump over 1% today. Volumes remain very light in Europe, with most markets trading 25% light to recent 20day averages. It was a touch bloody over in Asia, with Shanghai down almost 2% to a 5 month lows on weak PMI data, IPO resumption concerns and a fresh move against Shadow Banking — Hong Kong lost 60bp after Friday’s 2.2% whack, and Nikkei retreated 2.4% from a 6year peak as the Yen is popping. South Korea outperformed as their FX got hit into their Central Bank Decision Thursday, and Samsung had been up almost 2% into the CES kickoff today. Many eyes remain on the “Fragile Five” Emerging markets that are most impacted from Tapering — Turkey seems at the epicentre, and was up small despite the Lira hitting a fresh record low against the Greenback. Single Stock movers in the US include SIRI surging 8% (Liberty Deal) — SCTY up 6% (GS Upgrade) — DDD up 2% (CES). Losers include FSLR (Off 5%, GS Downgrade) — TWTR off 3.5% (MS Downgrade). Watch the Airlines, as over 9,000 flights have been cancelled over the last 4 days.
The US 10YY is back under 3% as money is rotating from PIIGS debt on profittaking after the recent surge higher — The DXY is under slight pressure, as both the Euro and Yen catch a bid into this week’s FOMC minutes and US Employment report. This is a tailwind for commodities, and we see Gold holding recent gains, Nat Gas jumping 1.5% (Weather), Crude popping 1% led by Brent (MENA disruptions) — and we also see a decent bid under Agricultural commodities as the Record Cold Temps have concerns about Crop Yields.
We have our ISM services number at 10, along with November’s Factory Orders print. We have a very small POMO operation, but focus will be on Congress coming back in session, where the Yellen Confirmation vote is slated for 5:30 tonight. The Tech traders will have their hands full with the Consumer Electronics Show in Vegas this week — there are press events today scheduled from LG (11), Sharp (12), Panasonic, Huawei (1), DISH (2), QCOM (3), INTC (4), Samsung (5) and Sony at 8. (All times in Eastern) Earnings Season kicks off on Thursday with AA.