Dave Lutz, head of Exchange Traded Funds at JonesTrading, has a brief overview of what traders are talking about right now.
- Stock futures are under early pressure, led by big tech stocks including Apple, Facebook, and Amazon. It’s a pause of the post-Trump-win rally; the Dow Jones Industrial Average closed at an all-time high Thursday.
- Crude oil is lower after OPEC reported an increase in oil production in October.
- Federal Reserve vice chair Stanley Fischer speaks at 9 a.m. ET, while the University of Michigan’s preliminary consumer-sentiment survey for November will cross at 10.
Good Morning, Futures are under some pressure early, led by another drop in Big Tech despite NVDA #s, with 1%+ losses in AAPL, FB, and AMZN. Encouraging for the bulls tho, the Russell is basically unchanged early, and Industrial Futures are off only 20bp. Mixed bag in Europe, with the DAX climbing 30bp as Consumer Discretionary shares leap 2%. Every Major Sector in the EuroStoxx is off, with Banks seeing profit-taking – while Gold miners and companies exposed to emerging markets hit the worst. Only Utilities and auto stocks reversed recent losses. The FTSE is getting smoked for 1% as the Pound jumps and Euro Slumps. Volumes are solid again, with most markets trading 30-50% higher than 20day averages. In Asia, China’s Shanghai Composite has entered a bull market for the first time in just over a year – Nikkei added small – India’s Sensex slammed on the spike in the US 10YY, while Emerging market shares and currencies all under pressure, with MSCI’s emerging market off over 2%.
With today’s Veterans’ Day Holiday, US Bond markets are closed, but Treasury Futures are trading, and our 10Y is under pressure again, following Yields in Germany and Japan Higher. Despite German inflation coming in at two-year highs, the Euro is getting hit as investors ponder the Future of the common currency – Sterling regains “Flash Crash” peaks, while that Peso is hitting new lows. Despite the $ breaking higher, Base metals are still on fire, with Copper +5%, highest weekly gain in at least 30 years, as Ore in China leapt 7%+ to their highest in over 2years. They still hate Gold, with the yeller metal off 80bp, while WTI getting hit for 1.5% on higher OPEC output headers and Natty gets worked for another 1.7%.
Very quiet day of catalysts, with Fed’s Fischer speaking at 9am, U. of Mich. Sentiment at 10, Baker Hughes Rig Count at 1, and CFTC “Commitment of Traders” data at 3:30. Throughout the session, be looking for 13F filings from the street. Quiet in Washington today with focus on Thanking and honoring our Veterans’ for their untold sacrifices towards the liberties we have today. At 11am, President Obama participates in wreath-laying ceremony at the Tomb of the Unknown Soldier, at Arlington National Cemetery.