Dave Lutz of Stifel, Nicolaus has the top topics about which traders are discussing today:
We shall see if investors embrace “Sell In May”, or if the “Good Harbor” ETF reallocation impacts trading today — right now US Futures are starting higher, led by a 30bp pop in Nasdaq futures as YELP leaps 10%. Liquidity could be pretty thin today, as Most Asian and Euro markets closed for May Day Holiday. In London, The FTSE is higher after solid Bank earnings and M&A chatter — While over in Asia Chinese PMI rises for 2nd month straight and the State Council announces fresh stimulus, but Aussie still closed red — led lower by a 1%+ drop in the Miners again. The Nikkei jumped 1.2% as the Yen weakened, despite more Tech earnings warnings overseas — as Banks and REITS helped propel the Nikkei. We do get Auto sales numbers today — along with a slew of key earnings from BZH, CNP, CLX, CME, COP, XOM, HST, K, MA, TEVA, TXT and VIAB pre open, EXPE, FLR, LNKD, MTZ, QLGC, VRTX and WYNNN after the close.
The 10YY is up small this AM, after touching 2week lows yesterday ahead of a 8:30 speech this AM by Yellen — The 10YY’s consolidation this year is the longest since 1978, as it has been stuck in a 23bp range. The DXY is mixed this AM, caught between a weaker Yen and stronger € – In Metals, Copper was able to rally on China Stimulus headlines, but Gold is falling 1%, and nearing a test of recent lows. The Energy complex is under pressure as Ukraine’s stress lessens slightly, with Oil off 50bp+ and nearing 1M lows, and Natty Gas down almost 1% ahead of inventory data today. Scheduled Catalysts today include Challenger Jobs data at 7:30, At 8:30 we have a speech from Yellen, Weekly Claims and Personal Income data. Markit US Manufacturing PMI for April at 9:45, ahead of the official ISM release at 10. We have a small POMO at 11 to close out.
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