Markets are moving, and there’s still a decent amount of economic data coming up.
Dave Lutz of Stifel Nicolaus has a roundup of what traders are chatting about ahead of the U.S. market open:
Good Morning! US Futures are under pressure this AM, with the S&P marked off 50bp in early trade. Nasdaq futures are performing better, off only 20bp — as EBAY and NFLX jump on earnings data, and AAPL has a slight bid early into next Monday’s report. Our weakness follows overseas markets getting hit — with Germany off 30bp in decent volume despite the EU fins up 40bp as Spanish and Portuguese banks rebound from yesterday’s smack. In Asia, the Nikkei lost 70bp — and I’m seeing Nikkei futures marked off another 1.5%, as the Yen is catching a bid early. Heavy focus was on China’s Manufacturing contraction — sparking weakness in Hong Kong and Aussie. Miners were mixed as iron-ore halted its decline overnight, but Gold miners broadly lower. In EM Asia, despite continued angst showing in FX — India managed a record close, and Thailand is jumping 1.4%. Globally Banks, Materials and Property stocks are all underperforming in Asia.
The 10YY is under pressure and nearing y’day lows, as Investors seek safety and take profits from the surge in PIIGS debt as Spanish unemployment jumps – € jumping the most in 3 months on Manufacturing data and headlines of a shrinking ECB balance sheet, and a break back upside 100dma against the $US is sparking short covering — While the Swiss Franc is jumping as SNB raises a capital buffer for Banks. Overall, the DXY is under pressure, and looks for 50/100dma support closer to 80.5. This is a tailwind for commodities, and we have both Silver and Gold jumping (Gold nice bounce off 50dma again), but Copper remains under pressure on that China data. While Brent is retreating from 2014 peaks, interesting that WTI has a bid as we saw a massive build in API reported inventories — DOE data today at 11. Nat gas is surging yet again, and has gained 15% in the last week, as a massive inventory drawdown is expected later this morning. Some heavy economic data today — Weekly Jobless claims at 8:30, PMI at 8:58, Housing price data at 9 , Existing Home sales at 10, KC Fed and a small POMO at 11, and a $US15B TIPs auction at 1.