Day Traders Diary
12/5/13U.S. equity futures are little changed ahead of a barrage of economic data that includes the initial claims and second estimate for Q3 GDP reports at 8:30 a.m. ET. Both the ECB and the Bank of England left their key lending rates unchanged at 0.25% and 0.50%, respectively, as expected. The S&P futures are trading close to fair value, suggesting a relatively flat start for the cash market.
Reviewing overnight developments:
Asian markets ended mostly lower. Japan's Nikkei -1.5%, Hong Kong's Hang Seng -0.1%, and China's Shanghai Composite -0.2%. Australia was down 1.4%
Investors received several economic data points:
South Korea's GDP rose 1.1% quarter-over-quarter (1.1% forecast, 1.1% prior) while the year-over-year reading increased 3.3% (3.3% expected, 3.3% last).
Australia's trade deficit widened to AUD529B from AUD271B (deficit of AUD375B expected).
Japan's Foreign Bonds Buying report pointed to net purchases of JPY65 B (prior net purchases of JPY1.410.1B
India did well with exit polls suggesting the business-friendly opposition BJP party did well in state elections
China Mobile reportedly inked an agreement to distribute Apple's iPhone on its network
Major European indices are mixed and little changed. Great Britain's FTSE +0.04%, Germany's DAX +0.04%, France's CAC 40 -0.1%
Economic data was limited:
The European Central Bank held its key interest rate steady at 0.25%, as expected.
The Bank of England left its key interest rate and purchasing program unchanged at their respective 0.50% and GBP375 billion, as expected.
France's unemployment rate rose to 10.9% from 10.8% (10.6% expected).
Spain's Industrial Production declined 0.8% year-over-year (1.7% consensus, 0.8% prior).
Looking at news:
Chemicals maker Merck got a nice boost after saying it will buy AZ Electronic Materials, which makes chemicals that are used in the iPad
In U.S. corporate news:
Apple (AAPL 574.00, +9.00): up 1.6% on news it signed agreement with China Mobile to distribute iPhones over China Mobile network
Aeropostale (ARO 8.69, -0.67): down 7.2% after disappointing Q3 earnings report and warning for the fourth quarter
General Growth Properties (GGP 21.20, +0.92): up 4.5% after Standard & poor's said company will be added to S&P 500 after the close on Monday, December 9
Weekly initial claims and the second estimate of third quarter GDP will be released at 8:30 ET. The day's data will be topped off with the 10:00 ET release of October Factory Orders. 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.