Day Traders Diary


U.S. futures are showing modest gains this morning (S&P futures +2, DJ futures +28), as Europe fluctuates just below the flat line and following weakness in Asia.

Overnight in Asia, a selloff in China led the way lower for other Asian markets, with the Shanghai Composite following 2.7%. The drop in China has been attributed to cautious analyst commentary about earnings. Outside of China, the losses were less severe (Nikkei -0.7%, Hang Seng -0.7%). The decline in the Nikkei comes as many cos there go ex-dividend.

In Europe, a larger than anticipated contraction of the UK's Q4 GDP (-0.3% vs -0.2% prior and expectations) put a damper on stocks. The UK's FTSE (-0.2%) is underperforming relative to Germany and France, which are both flat.

U.S. news is relatively light this morning. After the close last night ZZ rose 16% after reporting better-than-expected results, while SNX dropped 9% on earnings and disappointing guidance. This morning, JOSB reported full year earnings slightly below consensus and provided cautious commentary for Q1; the stock is not trading yet in the pre-market. FDO is also unchanged after reporting better than expected earnings and roughly in-line guidance.

Later this morning the Feb Durable Orders report at 8:30 ET could have an impact on futures trade. After the open, crude inventory data at 10:30 ET could add volatility to the energy markets. Finally, after the close tonight MOS, RHT, PAYX, TXI, FUL, and RECN are scheduled to report earnings.
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