Stifel Nicolaus’ Dave Lutz has a summary of what traders are talking about right now:
Good Morning! Tuesday another rally day — as 13 of the last 15 Tuesdays are in the green now, helping the Russell get back upside 200dma – US Futures are jumping higher again this AM — Earnings providing some fuel today, with KO, INTC, CSX and YHOO all higher. Dovish commentary from Japan, coupled with EU Inflation printing near 5Y lows — has the “QE” trade on globally. In Europe, the DAX is up 1% in average volume, led by a 1.5% run in the EU banks as regulatory hurdles pass. Most focus was on China, where their GDP beats expectations, but comes in at a 2Y+ low. Aussie was able to shrug off the slowdown, and Miners moved higher as BHP Billiton beats and is planning to boost iron ore production – Thanks to dovish chatter from their Finance Minister – Japan leapt 3% from near a 6M low. Focus today will be on earnings, we have ABT, BAC, USB before the open today — AXP, COF, GOOGL, IBM after the close. Keep an eye on the Momentum Sectors, specifically Biotech — as we have a big First Trust ETF rebalance tomorrow (FBT), and we could see meaningful covers starting as we approach earnings for the IBB members as 16 names, comprising 45% of the IBB’s weight, report earnings next week.
The 10YY is higher, but remains under yesterday’s peaks, as focus shifts toward Yellen’s speech today at 12:15 and the Beige Book at 2pm. The Yen has broken down sharply against the $US, but despite the inflation print, € has a nice bid against the Greenback. Overall, the DXY is weaker, providing a tailwind for commodities — despite the China slowdown, we are seeing a rally in Copper, Silver and Gold — While the Energy Complex is popping despite API data showing a big build — DOE today at 10:30 expected to show a inventory pop of 1.5million barrels. Softs continue to rally, led by a 2% pop in Soybeans, one of the better performing Agriculture commodities YTD. Aside from the aforementioned, some catalysts scheduled today includes Housing Starts, Building Permits and Industrial Production for March at 8:30, The Bank of Canada Rate Decision at 10, A Small POMO at 11, Fed’s Lockhart Gives Closing Remarks on Financial Markets at 11:30, and Fed’s Fisher Speaks on the Economy at 1:25.
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