Dave Lutz, head of Exchange Traded Funds at JonesTrading, has your daily guide to what traders are talking about right now.
- Stocks are near a three-week low after a shaky start to earnings season from Alcoa, the aluminum giant, on Tuesday. Tech stocks are getting hit after Ericsson warned that its third-quarter profits will be “significantly lower” than expected.
- The dollar is still strong, rallying against the euro and the yen. The pound spiked following its flash crash last week. The Thai baht and Thai stocks are getting slammed on concerns about Thai King Bhumibol Adulyadej’s health.
- Weekly oil inventory numbers and the Job Openings and Labor Turnover report will highlight data releases early in the US market session. At 2 p.m. ET, the Fed will release minutes of its policy meeting in September.
Good Morning! Stocks nearing 3week lows as Earnings season angst mounts, with the S&P off 10bp and remaining below the 100dma. It’s mostly red in Europe, with the DAX off 5bp – Technology is leading declines with Telecom Equipment plays weaker on Ericsson warning, while Miners hit on Fresnillo numbers. That said, The Financials are in rally mode as DB raises more capital, helping Spain and Italian markets to trade Green. London is off 30bp in average volume as the Pound rebounds. Over in Asia, Nikkei retreating 1.1% – Shanghai unchanged, but Chinese property stocks keep getting hit in Hong Kong, while Thailand whacked for another 2.5% as the King’s Health is debated.
That 10YY is climbing 2bp as German Bunds stay north of 0% – That “Policy Sensitive” 2YY moves to new peaks as Fed Funds near 70% for December ahead of Fed Minutes later today. The DXY remains well bid, climbing against Euro and Yen, offsetting losses against the British pound began as it rallies on May/Parliament headers – Metals are acting better as Ore gains for a 3rd day in China, rallying 1.8% and bringing the week’s gains towards 6% – helping Zinc rebound 1% from yesterday’s smackdown. Gold remains under some pressure, as Hawkish rhetoric grows and the Greenback rallies. The Oil complex is basically unchanged as trader await the delayed API data later tonight.
Ahead of us today, we get Fed’s Dudley Speaking at a Fireside Chat in Albany at 8am, just before Fed’s George Speaks at Chicago Fed’s Payments Conference at 9:40. At 9:50 we get the Bank of England Bond-Buying Operation Results, and at 10am we get JOLTS Job Openings for the States. A few Auctions around lunch, with Canada selling 2-Year Bonds at Noon, and the US Treasury “reopening” Auction of $20B 10-Year Notes at 1. The day’s “Main Event” comes at 2, when the Fed Releases Minutes from Sept. 20-21 FOMC Meeting. After the close, we get #s from CSX, and at 4:30 that delayed API data for Crude.