Dave Lutz of Stifel, Nicolaus has the topics people are talking about today.
US Futures are starting mixed this AM, with the S&P higher, but Nasdaq in the red, firmly below the 100dma. Early, but the “New Tech” to “Old Tech” trade en fuego this AM, with FEYE and GRPN off 9%+, while EA is up almost 20%. Over in Europe, markets are being resilient as Ukraine stress abates (Russia’s Micex up 1.5%), with the DAX basically unchanged in heavier volume into the ECB decision tomorrow. US Weakness and a disappointing Alibaba valuation hit Nikkei in it’s first session open this week losing almost 3% in heavy trading, with major investor SoftBank hit for 5% on the lower Alibaba valuation (Watch YHOO) — Interesting the Momentum Index over there outperformed — losing less than 2%. China lost almost 1% in very light trading, as their Services number comes in slightly better. Aussie lost 1% in heavier trade – Profittaking in Aussie’s banks ahead of earnings, and Miners were hit sharply as Ore is off 10% in a month. Globally, Banks are weaker on results from SocGen and HSBC — as well as continued regulatory angst and a flattening US curve, with flows continuing towards Energy, with the XLE trading on new all-time highs this AM.
The US 10YY is off small ahead of Yellen climbing the steps of Capitol Hill this AM, but yields are well off overnight lows. The € is slightly weaker on the miss in German Factory Orders, while the Yen is on 3week peaks on hawkish BOJ minutes. The big FX mover overnight was the Kiwi getting whacked, as New Zealand’s central bank has warned it may intervene to suppress kiwi strength. We have weakness in Industrial Metals, with Copper losing 40bp after failing the 50dma overnight. Gold is showing some pop, despite the bad Chinese consumption headlines out there. The Oil complex is higher into DOE inventories today — US stockpiles are foreseen to set new 32Y high. Scheduled Catalysts today include Nonfarm Productivity at 8:30, Fed’s Yellen Testifies to Joint Economic Committee at 10, DOE data for Crude at 10:30, there is NO POMO at 11, we have a 10Y auction at 1, followed by Consumer Credit at 3pm. Before the US opening bell on Thursday, we will have digested interest rate decisions from the ECB, BOE, Indonesia and Malaysia
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