Day Traders Diary


U.S. equity futures are little changed after climbing out of the red. The S&P 500 futures are holding their flat line. Market participants are anticipating today's testimony by Ben Bernanke in front of the House Financial Services Committee. Mr. Bernanke's prepared remarks are set to be released at 8:30 ET and the testimony is expected to begin at 10:00 ET.

Looking at overnight developments:

Asian markets ended in mixed fashion. China's Shanghai Composite -1.0%, Japan's Nikkei +0.1%, and Hong Kong's Hang Seng +0.3%.

In regional economic data:

China's FDI rose 4.9% to follow the prior increase of 1.0%.

South Korea's PPI was unchanged month-over-month (-0.4% prior) while the year-over-year reading declined 1.4% (-2.6% previous).

Australia's MI Leading Index ticked up 0.2% month-over-month (0.7% previous).

Looking at news:

The spokesperson for China's ministry of commerce commented on the strengthening Yuan, saying the appreciation of the currency has lowered the country's cost advantage. In addition, the present trade conditions were described as 'severe.'

In Japan, the ruling LDP party is expected to win 70 seats in the upcoming upper house elections, scheduled for July 21.

Major European indices hold modest gains after seeing early losses. Great Britain's FTSE +0.1%, Germany's DAX +0.4%, and France's CAC +0.6%.

Reviewing economic data:

Great Britain's claimant count changed surprised to the upside with a decline of 21,200 (-8,000 expected, -16,200 prior). However, the unemployment rate held steady at 7.8%, as expected. In addition, average earnings ex-bonus ticked up 1.0% (1.1% expected, 0.9% prior) while average earnings index with bonus rose 1.7% (1.4% forecast, 1.3% previous).

Spain's industrial new orders declined 1.3% year-over-year (1.0% consensus, 5.3% previous).

Swiss ZEW Expectations survey came in at 4.8 (6.0 expected, 2.2 previous).

In news:

The Bank of England released the minutes from its latest meeting, revealing a unanimous vote to maintain the key interest rate and the asset purchase program at their respective 0.5% and GBP375 billion.

Reports out of German press suggested Greece may face a funding gap of as much as EUR10 billion. The European Commission has since challenged those reports by saying a much smaller gap could emerge next year.

In U.S. corporate news:

ASML (ASML 89.74, +2.00) is higher by 2.3% after beating on earnings and revenue. In addition, the company issued mixed guidance, expecting third quarter revenue to come in below consensus and full-year revenue to surpass analyst estimates.

Bank of America (BAC 13.95, +0.03) holds a slim gain of 0.2% after reporting an earnings beat on in-line revenue.

Novartis (NVS 72.47, -1.00) is lower by 1.4% after missing on earnings and revenue.

The weekly MBA Mortgage Index declined 2.6% to follow last week's 4.0% decrease. This was the fifth negative reading in a row and the ninth decline out of the past ten weeks.

June housing starts and building permits will be announced at 8:30 ET and the Federal Reserve will release its Beige Book for July at 14:00 ET.

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