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Dave Lutz, head of Exchange Traded Funds at JonesTrading, has an overview of what traders are watching on Wednesday.

In brief:

  • Stock futures are little changed as companies continue to report third-quarter earnings. But Intel shares are down 4% pre-market after the company announced fourth-quarter revenue guidance that was weaker than what analysts expected. 
  • The euro is slightly weaker ahead of the European Central Bank’s meeting on Thursday. 
  • Housing starts and building permits data cross at 8:30 a.m. ET, and the Fed’s latest Beige Book of economic anecdotes will be released at 2 p.m.

Here’s Lutz: 

Good Morning!  US Futures are mixed this AM as Earnings continue to roll (INTC getting clobbered) and China GDP on target with 6.7% growth.   Euro Markets are mostly red, with the DAX off 10bp as only Consumer Discretionary seems to be well bid in Germany.   Italy is outperforming on Monte Paschi headers – the only exchange in the green.   UK is getting hit for 10bp as UK Builders under pressure on Travis Perkins and Consumer from Reckitt’s #s.  Volumes across Europe are light, with most exchanges 10-20% below Trend.   Pretty Quiet overnight in Asia, Hong Kong off 40bp – Shanghai closed flat as weakness in Insurers off China Life #s weighed – Nikkei closed just under 17k as Staples enjoyed the weaker Yen – Aussie climbed 40bp on the heels of a $11B Merger header, while Philippines +2% continue to outperform on optimism over President Duerte’s China visit. 

The Dollar is backing off 7month peaks as Fed fund futures around a 65% probability of a move, down from 70% pre CPI yesterday.  The Euro is a bit weaker ahead of ECB tomorrow – while $/Y is breaking lower quicker as headers say BOJ “No Additional Easing” roll.   The US 10YY had a test and bounce off the 200dma overnight as Investors put in for the Saudi Bond Deal.  Metals are mixed, with Gold enjoying the falling $, while Nickel gets whacked for 1%+.  WTI has shot back above $51 as the Saudi oil minister calls an end to price ‘downturn’ and a Huge draw in API inventories support WTI into expiry tomorrow.   Natty gas is getting whacked for almost 2% tho.   Softs are weak across the board. 

We have a heavy slate of Catalysts today, with Housing Starts and Building Permits for September  Fed’s Williams Speaks in New Jersey at 8:45.  At 9:50 we get the Bank of England Bond-Buying Operation Results, just before the Bank of Canada Rate Decision at 10.  10:30 brings that DOE data for Crude.   At 1:30 Fed’s Kaplan Speaks in Fort Worth, just before the Federal Reserve Releases the Beige Book at 2.   Heavy Earnings Post-Close, with AXP, EBAY, LRCX, LSTR, MAT, SLM, and XLNX among others after the close.  At 7:45 tonight, Fed’s Dudley Speaks on NYC Economic History in New York – at 9pm we have the Final Debate between Hillary and Donald.

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