Day Traders Diary
8/19/11Global equity markets are under continued pressure as we close out a fourth week of losses. U.S. equity futures are down ~0.9% (S&P futures -10 vs. fair value; DJ futures are -95). Futures are well off their overnight lows, recently hitting morning highs as the dollar pulls back (we're not seeing any specific headlines to account for the move).
Major European markets are showing losses ranging from 2.5-3.5% (FTSE -2.5%, DAX -3.5%, CAC -2.5%), just above their overnight lows. There isn't any "new" news to speak of. Rather, the selling is an extension of recent downward momentum that has gained steam amid growing concerns about the global economic slowdown and the European debt situation. The financial sector is again leading losses, with UK bank stocks down 5-8%. Recent headlines indicate Spain is approved additional spending cuts. Asian markets showed similar losses to Europe, finishing the week at lows (Nikkei -2.5%, Hang Seng -3.1%, KOSPI -6.2%, Shanghai -1.0%).
Gold futures hit another record overnight above 1881, and are now trading just shy of those highs (gold is now +43 at 1865). Oil is -1.54 at 80.87. However, treasury yields are slightly higher after the 10-year hit another record low of 1.98% (the 10-year yield is now +4 bps at 2.1%).
In U.S. corporate news, HPQ is -11% this morning, seeing continued weakness in the wake of yesterday's news that the co will sell its PC business and acquire European data analytics co Autonomy. HPQ also reported slightly better-than-expected current quarter results, but issued disappointing guidance. LDK is -20% after cutting guidance, while CRM is +3.5% on better than expected earnings and mixed guidance. BAC is -2.6% amid reports the co will cut 3,500 employees this quarter.
There is no econ data today. Keep in mind that next week concludes with the annual Jackson Hole economic policy symposium put on by the Kansas City Fed (Aug 26-28), where central bankers and economists gather to discuss ideas/plans for the economic situation.
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