Stifel Nicolaus’ Dave Lutz has the rundown on what traders are talking about right now:
Good Morning! US futures are starting on the back foot this AM, with NDX futures off 25bp, and SPX 15bp. Clearly, heavy focus will remain on the Internet stocks, after the strong reversal lower yesterday when the IWM failed to get back upside 200dma. It’s early, but P (AAPL-Beats), JAZZ, DDD, LNKD all starting 1%+ lower. Overseas markets are weaker — we are seeing some reducing of positions into the weekend with Ukraine simmering under the headlines — DAX is off 40bp, while EU fins are being hit for 1.5%. Russian and Ukraine markets are closed for “Victory Day” holiday, but we are seeing weakness in Ukraine’s FX early. Over in Asia, the Nikkei gained 30bp — Focus was on China however with very weak Inflation readings failing to spark dovish buying, the Composite lost 20bp. India picked up massive flows however, with the Sensex surging 3% to new peaks on Election hopes. In Aussie, the slowdown in Chinese prices weighed on Miners — hitting the ASX for 30bp.
Credit markets remain well bid — with the 10YY breaking under 2.6% as yesterday’s weak 30Y auction failed to stem the persistent bid in Treasuries. We have the Yen and € both weaker than the $US – propelling the DXY towards a 50dma test, where it has failed 4x in the last few months. The stronger $US and weak China inflation are both headwinds for commodities — yet we see a bid across the board. Industrial metals are leading hard commodities higher, with Nickel, Copper and Silver all 50bp+ higher. Even Gold is catching a bid, up 30bp and on session peaks. The Oil complex is higher, led by Nat Gas and Brent as Gazprom threatens Ukraine’s supplies. We are seeing these flows coming from Agriculture, where Wheat is off 1% and the best performing commodity of 2014, Coffee — is retreating 3%. Catalysts scheduled for today include JOLTs Job Openings and Wholesale Inventories at 10 — A POMO Purchase of $US1.50 – $US2.00 billion at 11 — and World Agricultural Supply & Demand Estimates at 12.
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