Dave Lutz of Jones Trading has the a quick guide to the top topics about which traders are chatting today:
Good Morning! US Futures are marked higher into this Holiday shortened session, as the rally in momentum names continues (TSLA, TWTR, NFLX all marked 50bp+ higher), but stay focused for weakness in Airlines, as terror threats mount into America’s birthday. Over in Europe, markets are in rally mode but volumes pace light into the ECB announcement at 7:45 (should be a snooze) — the real potential for fireworks comes during Draghi’s 8:30 presser. Over in Asia, Nikkei snaps a 3day win streak, and the Sensex takes a break from it’s moonshot into next week’s budget announcement. China markets rallied on strong Services data, that helped Aussie’s market which was lead higher by another pop in the Miners — Material Stocks and Industrials are the best global performers right now, while Banks and REITS fall under pressure. The 10YY is retreating from an overnight high near the 100dma at 2.64%, after a sharp pop thru resistance on yesterday’s ADP#s.
While Leverage Focus is on the USDJPY back upside 200dma, Sweden’s Krona getting clobbered as the Riksbank cuts more than anticipated on deflationary pressures, this hit Norway’s Krone as well. With the DXY getting some legs into NFP#s, we have a natural headwind for commodities — Both Silver and Gold are retreating sharply, while WTI is on it’s longest losing streak in 2years on Libya headers. Scheduled Catalysts today include ECB at 7:45 — at 8:30 we get hit with NFP#s, and the Draghi Presser — At 9:45 Markit gives us US Services data, while the official ISM services release hits at 10 — At 10:30 we get Natty Storage Data — and there is NO POMO at 11.
Early Closes today: Both the New York Stock Exchange and Nasdaq will close at 1ET — SIFMA recommends that the U.S. bond market close at 2 p.m – Among commodities markets, Comex floor trading for metals futures and options will end at 1:30 p.m., while Nymex floor trading for oil will at 2:30 p.m. Floor trading won’t re-open until Monday.