From Dave Lutz at Stifel, Nicolaus, here’s a super-quick look to what’s going on.
Big things folks will be watching: Apple earnings and the negative impacts of banks.
Good Morning! US Futures are slightly negative, as the street digests earnings ahead of the FOMC meeting. Eyes are on AAPL, whose shares have rebounded after touching $US500 in the overnight. Overseas, markets have a slightly better tone, but still in very light volumes. The DAX is up 10bp, while the EU Fin index is staging a decent pop on the heels of tighter PIIGS spreads after yesterday’s smackdown — but some of the major banks like DB, Lloyds, Standard Charter and UBS all weaker on numbers. Oil services the best performer, as Oil and Gas stocks jumping on BP numbers. India Hikes 25bp as expected, Sensex jumps almost 2% in heavy trading, while China lost more ground despite the PBOC injecting liquidity overnight — knocking their Repo rates lower.
The Nikkei was off 40bp into the BoJ meeting later this week. The 10YY is flat in the US, while most Sovereign trader attention on Spain’s 10YY hitting 6month lows as retail sales data comes in stronger. The DXY continues to rebound, gaining against both € and Yen — providing a headwind for commodities. That said, Copper has a slight bid to it, but all other Industrials are in the red — Brent is slipping 1% despite Goldie cutting OPEC output projections on Libya turmoil, which helped propel the commodity yesterday, widening the premium to WTI towards $US11/barrel. Focus on Corn as it hits 3Y+ lows as the street is pressing the concentrated short there.
We get PPI and Retail Sales at 8:30 – Case Shiller data at 9 – Business Inventories, Consumer Confidence at 10, The Senate Banking hearing on housing finance reform at 10 — a small POMO at 11 — and a 5Y auction at 1pm. S&P announced KORS to replace NYX in the SPX on the close Nov1 — Seeing estimates of 11mln-18mln shares of KORS to buy.