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