Day Traders Diary


U.S. equity futures trade modestly lower amid cautious overseas action. The S&P 500 futures hover roughly two points below fair value.

Reviewing overnight developments:

Asian markets ended lower. China's Shanghai Composite -0.1%, Hong Kong's Hang Seng -0.5%, and Japan's Nikkei -1.1%.
In regional economic data:
Japan's weekly foreign bonds buying report indicated net purchases in the amount of JPY413.20 billion (JPY65.50 billion prior).
The Bank of Korea held its key interest rate unchanged at 2.50%, as expected.
The Reserve Bank of New Zealand also maintained its interest rate at 2.50%, in-line with expectations. Separately, FPI ticked down 0.2% month-over-month (-1.0% last).
Australia's employment change came in at 21,000 (10,000 expected, -700 prior) while the unemployment rate ticked up to 5.8% from 5.7%, as expected. Also of note, MI Inflation Expectations increased to 2.1% from 1.9%.
India's industrial production decreased 1.8% year-over-year (-1.2% expected, 2.0% prior). Separately, CPI increased 11.2% year-over-year (10.0% consensus, 10.1% last).
In news:
Reports out of Japan indicate Prime Minister Shinzo Abe's cabinet is expected to approve an additional JPY5.50 trillion aimed at deploying stimulus measures. Separately, the country is expected to increase its total defense spending to JPY24.40 trillion over the next five years.
Major European indices hover near their lows in a continuation of the recent weakness. France's CAC -0.5%, Germany's DAX -0.7%, and Great Britain's FTSE -0.9%.
Economic data was limited:
Eurozone industrial production fell 1.1% month-over-month (0.3% forecast, -0.2% last) while the year-over-year reading ticked up 0.2% (1.1% consensus, 0.2% prior).
France's CPI was unchanged month-over-month (-0.1% expected, -0.1% last).
Great Britain's CB Leading Index ticked up 0.4% month-over-month (1.7% prior).
Italy's CPI fell 0.3% month-over-month (-0.4% expected, -0.4% last) while the year-over-year reading rose 0.7% (0.6% consensus, 0.6% prior).
The Swiss National Bank held its key interest rate unchanged at 0.00%, as expected.
Among news of note:
Peripheral bonds are under pressure amid reports the European Central Bank may tighten its collateral requirements. Italy's benchmark 10-yr yield is higher by four basis points at 4.09% while Spain's 10-yr also trades higher by four basis points, at 4.08%.
Italian Prime Minister Enrico Letta won confidence votes in the Senate and the Lower House, as expected.
In U.S. corporate news:

Ciena (CIEN 20.40, -2.50): -10.9% following its bottom-line miss on above-consensus revenue. In addition, the company announced its listing will be transferred from the New York Stock Exchange to the Nasdaq.
Lululemon Athletica (LULU 61.53, -6.82): -10.0% after its disappointing fourth-quarter guidance overshadowed its Q3 earnings beat on in-line revenue.
Oracle (ORCL 33.77, -0.79): -2.3% after receiving downgrades from Morgan Stanley and RBC Capital Markets.
Southwest Airlines (LUV 18.13, +0.16): +0.9% after Bank of America/Merrill Lynch upgraded the stock to 'Buy' from 'Neutral.'
Weekly initial claims, November Retail Sales, and November export prices ex-agriculture and import prices ex-oil will all be reported at 8:30 ET. The day's data will be topped off with the 10:00 ET release of the October Business Inventories report. 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.