Day Traders Diary
11/20/13The S&P 500 futures trade one point below fair value amid cautious overseas action.
Reviewing overnight developments:
Asian markets ended on a mixed note. Hong Kong's Hang Seng +0.2%, China's Shanghai Composite +0.6%, and Japan's Nikkei -0.3%.
In regional economic data:
Japan's trade deficit widened to JPY1.09 trillion from JPY932 billion (JPY814 billion expected) as exports grew 18.6% year-over-year (16.5% forecast, 11.5% prior) and imports increased 26.1% year-over-year (19.0% consensus, 16.5% last). Meanwhile, the adjusted trade balance narrowed to JPY1.07 trillion from JPY1.13 trillion (JPY0.88 trillion forecast). Also of note, the All Industries Activity Index ticked up 0.4% month-over-month (0.5% prior, 0.3% last).
Australia's MI Leading Index came in at 0.1% (-0.1% last).
New Zealand's input PPI rose 2.2% quarter-over-quarter (0.5% forecast, 0.6% last) while output PPI increased 2.4% quarter-over-quarter (1.0% expected, 1.0% prior).
Looking at news:
Japan's trade deficit was among the worst on record as larger-than-expected energy imports outweighed the benefit of increased exports.
Major European indices hover near their lows. Germany's DAX -0.2%, Great Britain's FTSE -0.4%, and France's CAC -0.4%. Elsewhere, Italy's MIB -0.6% and Spain's IBEX -1.1%.
Economic data was limited:
Germany's PPI slipped 0.2% month-over-month (0.1% expected, 0.3% prior) while the year-over-year reading fell 0.7% (-0.6% expected, -0.5% last).
Spain's trade deficit widened to EUR2.59 billion from EUR1.80 billion (-EUR2.50 billion expected).
Swiss ZEW Expectations improved to 31.6 from 24.9 (30.0 forecast).
German Chancellor Angela Merkel said her party hopes to finish coalition talks in the middle of next weeks.
In U.S. corporate news:
Deere (DE 86.00, +3.19): +3.9% after beating on earnings and guiding first-quarter sales above consensus.
J.C. Penney (JCP 9.12, +0.41): +4.7% after the company missed on earnings and forecast an improvement in fourth-quarter gross margins and comparable store sales.
Lowe's (LOW 48.81, -1.63): -3.2% following its earnings miss and mixed guidance.
Staples (SPLS 15.42, +0.08): +0.5% after reporting in-line earnings on below-consensus revenue.
The weekly MBA Mortgage Index fell 2.3% to follow last week's decline of 1.8%.
October retail sales and CPI will be reported at 8:30 ET while September business inventories and October existing home sales will be released at 10:00 ET. The day will be topped off with the 14:00 ET release of the FOMC Minutes from the October meeting.
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