Day Traders Diary


U.S. futures have pulled back from their early highs and are now showing modest gains (S&P futures +3, DJ futures +26). Futures have been fluctuating around reports regarding IMF proposals to increase their lending power, paring early gains as more information has been released. Early reports indicated that the IMF is proposing a $1 trillion increase to its lending resources -- this story gave a boost to the euro and global equity markets (prior to this report, U.S. futures were flat). However, subsequent reports have indicated that the IMF is looking to raise $600 bln as it sees a $1 trillion gap in global financing needs. Markets have retraced some of the gains made on the original story following this clarification. It's also worth noting that the IMF has found it difficult to increase its lending power in the past.

Overnight, Asian stocks were mixed with China seeing some profit taking following yesterday's surge. Chinese equities (-1.4%) underperformed other major Asian markets (Japan +1.0%, Hong Kong +0.3%). China saw a larger than anticipated drop in Foreign Direct Investment for December, which likely contributed to the Shanghai's underperformance. China's Academy of Soc Sciences said it sees the nation's 2012 GDP falling to +8.5% from +9.2% in 2011.

In Europe, markets are showing modest gains following the reports that the IMF is looking to increase its lending power, but they too have come back from highs as the early reports were corrected (DAX +0.3%, CAC flat, FTSE +0.1%). Prior to the reports about the IMF, the World Bank had lowered its 2012 global growth forecast to +2.5% from its June est of +3.6%. It also cut 2013 growth to +3.1% from +3.6%.

In U.S. corporate news, RIMM is trading lower by 5% after Samsung said it was not interested in buying the co, putting a damper on yesterday's reports that Samsung could be a potential buyer of RIMM. On the other hand, YHOO is +3.1% following the resignation of co-founder Jerry Yang.

In earnings news, GS is +0.6% in its initial response to the just-released results, which beat EPS consensus while revenues missed. CREE is -5% on disappointing earnings/guidance. LLTC is +10% after reporting a mixed Q2 results and issuing upside guidance. Trust banks STT and BK are little changed after missing estimates.

Today's econ calendar picks up a bit today, with Dec. PPI at 8:30 ET, Nov. Long-term TIC Flows at 9:00 ET, Dec. Industrial Production & Capacity Utilization at 9:15 ET and the Jan. NAHB Housing Market Index at 10:00 ET. After the close tonight, 15 cos are scheduled to report earnings, including EBAY and FFIV. All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it's usage.