JonesTrading’s Dave Lutz has a roundup of what traders are chatting about right now:
Good Morning, and Happy Friday – Ebola Fears knocked US futures sharply last night to 1932, as the NY Doctor that took mass transit around the city this week has tested positive. Calmer heads have rallied Equity futures back, but US markets looking weaker, led by a 40bp drop in smallcaps (huge outperformer y’day) — Overseas markets are weaker in light volume, with Germany down 30bp as there remains some nervousness into EU Stress Test results this weekend. Over in Asia, the Ruble setting new lows has MICEX off small — while Shanghai closed flat on falling property prices. The Nikkei popped 1%, enjoying the tailwinds of the Falling Yen — While Tech-Heavy Taiwan was hit for 1%. Earnings helped propel Aussie to 2nd week of gains — here in the states we have BMY, CL, DLPH, F, LEA, MCO, PG, STT, and UPS reporting Pre-Open today.
The 10YY is off 3bp and near overnight lows, as German paper catches a decent bid on Ebola, Russia and Stress Tests. The $US is holding the bulk of its gains against Yen, while the Euro is seeing some covering this AM. The commodity complex is mixed, with metals showing a slight pop — but weakness persists in Oil, Brent and WTI have relinquished 1% of yesterday’s gains. Finally, keep an eye on that big short in Grains and Beans – Wheat jumping on frost concerns in Aussie, and Soybeans were set for the biggest weekly climb in 14 months on Brazilian dry weather.
Scheduled catalysts ahead of us today include New Home Sales at 10, there is NO POMO at 11, we get Baker Hughes Rig Count at 1 and CFTC “Commitment of Traders” data at 3:30. Earnings remain in focus, as AMZN hit sharply on another loss, while investors cheered MSFT — Ebola Stocks are moving, we are seeing weakness in Airlines and Cruise Liners — while several of the Biotech stocks levered to Ebola are rallying — Watch the Homebuilders, as the ITB surged thru resistance yesterday into new Home Sales — Mortgage reform has made builders the best performing group this week — Clearly Energy stocks remain on the front-burner, will be meaningful if Oil can recover back into the green, and finally Keep an eye on Brazil — EWZ crushed yesterday into the election this weekend — results should hit Sunday around 5pmET