Day Traders Diary
3/20/12Futures are pointing lower amid weakness in overseas markets. S&P futures are -7, DJ futures are -55.
Asian stocks led the way lower overnight, with the biggest declines taking place in China (Shanghai -1.4%, Hang Seng -1.1%, Nikkei CLOSED). The weakness in China has been attributed to numerous factors. First, China implemented a hike to fuel prices, which comes just six weeks after its last hike, adding to concerns about the potential Chinese slowdown. In addition, an officer at BHP noted that Chinese steel production is slowing. BHP is -2.5% while peer RIO is -3.4%. Also, a Chinese official said it will miss its 2012 auto sales targets, while the Chinese Press reported that a former PBOC advisor thinks the nation should loosen its monetary policy and expects GDP to average +7% over the next 5 years.
In Europe, stocks followed Asia lower and are now trading just off their lows (DAX -1.4%, CAC -1.3%, FTSE -1.1%), amid light news flow. Automakers and miners are showing relative weakness on the comments out of China.
In U.S. news, BAC is slightly higher after the co denied rumors that it was considering a secondary offering; the rumors weighed on BAC shares late in the day yesterday. In earnings news, ADBE is -4% after reporting in-line earnings and guidance. TIF is +3% after reporting a mixed quarter and issuing upside guidance for FY13. KORS is +3% after raising guidance, in-line with consensus.
We get more housing data this morning, with February Housing Starts and Building Permits data due at 8:30 ET. Treasury Secretary Tim Geithner Speaks at 10:00 ET. Fed Chairman Ben Bernanke will also give a lecture to students at George Washington today. After the close, 9 cos are scheduled to report earnings, including ORCL and JBL. 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.