Day Traders Diary


U.S. equity futures hover near their lows despite generally upbeat overseas trade. The S&P 500 futures are lower by 0.1% while Nasdaq futures trade down 0.4% as Apple (AAPL 476.80, -17.84) weighs. The largest tech stock trades lower by 3.6% after the company's product refresh event did not reveal a deal with China Mobile, as many investors had expected. The stock was also downgraded to 'Neutral' at Bank of America/Merrill Lynch, Credit Suisse, and UBS.

Last evening, President Obama addressed the nation regarding the situation in Syria. Mr. Obama continued to make a case for a targeted military strike against the Middle Eastern country, but indicated the Russian proposal requiring Syria to put its weapons under international control will also be considered.

Looking at overnight developments:

Asian markets ended in mixed fashion. Hong Kong's Hang Seng -0.2%, China's Shanghai Composite +0.2%, and Japan's Nikkei settled flat.

In regional economic data:

Japan's CGPI ticked up 0.3% month-over-month (0.4% expected, 0.5% prior) while the year-over-year reading rose 2.4%, as expected. In addition, the BSI Large Manufacturing Conditions improved to 15.2 from 5.0 (7.2 consensus).

South Korea's unemployment rate ticked down to 3.1% from 3.2% (3.2% last).

Australia's Westpac Consumer Sentiment came in at 4.7% (3.5% previous).

In news:

North and South Korea have agreed to reopen the jointly-operated Kaesong Industrial Complex this Monday.

Major European indices are mixed. Great Britain's FTSE -0.1%, Germany's DAX +0.5%, and France's CAC is flat.

Participants received a moderate amount of data:

Germany's CPI was unchanged month-over-month while the year-over-year reading came in at 1.5%, as expected.

France reported a current account deficit of EUR3.20 billion (-EUR1.70 billion expected, -EUR1.80 billion prior) while nonfarm payrolls declined 0.2% quarter-over-quarter (-0.2% expected, -0.2% prior).

Great Britain's average earnings ex-bonus ticked up 1.0% (1.0% expected, 1.1% previous) while average earnings index + bonus increased 1.1% (1.2% forecast, 2.2% prior). In addition, the claimant count change came in at -32.6K (-22.0K expected, -36.3K last) and the unemployment rate ticked down to 7.7% from 7.8% (7.8% expected). Lastly, the CB Leading Index rose 0.7% month-over-month (-0.3% prior).

Looking at news:

The Italian Senate committee tasked with determining the political future of PDL leader Silvio Berlusconi has postponed its debate to Thursday.

European Central Bank member Luc Coene said, "It's clear that we are not at the end of the Greek problem for the moment" and that the country will need more help at least once.

In U.S. corporate news:

Restoration Hardware (RH 74.30, -1.76) is -2.3% despite reporting a bottom-line beat on in-line revenue.

The weekly MBA Mortgage Index continued its recent downtrend, falling 13.5% to follow last week's uptick of 1.3%. In addition, the refinance index tumbled 20.2%.
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