Day Traders Diary


U.S. equity futures are little changed amid upbeat action overseas. The S&P 500 futures trade less than a point above fair value.
Reviewing overnight developments:
Asian markets ended mixed. Hong Kong's Hang Seng -0.2%, Japan's Nikkei +0.1%, and China's Shanghai Composite +0.8%.
In economic data:
China's HSBC Services PMI slipped to 50.7 from 51.4.
Hong Kong's Manufacturing PMI fell to 49.1 from 49.7.
Australia's trade balance swung from a surplus of $902 million to a deficit of $122 million (expected surplus of $300 million).
In news:
Bank of Japan member Takehiro Sato spoke about the current environment, saying he expects the economy to resume its moderate recovery trend during the summer.
Major European indices trade higher across the board. Great Britain's FTSE +0.1%, Germany's DAX +0.3%, and France's CAC +0.7%. Elsewhere, Spain's IBEX +0.7% and Italy's MIB +1.2%.
Economic data was limited:
The European Central Bank cut all three interest rates. The bank lowered its main refinancing rate to 0.15% from 0.25%, lowered its marginal lending facility to 0.40% from 0.75%, and cut its deposit facility rate to -0.1% from 0.0%. The euro slumped in reaction, sliding to 1.3560 from 1.3600 against the dollar.
Eurozone Retail Sales increased 0.4% month-over-month (consensus 0.1%, previous 0.1%), while the year-over-year reading rose 2.4% (forecast 1.3%, prior 1.0%). Separately, Retail PMI fell to 49.9 from 51.2.
Germany's Factory Orders jumped 3.1% month-over-month (consensus 1.3%, previous -2.8%).
The Bank of England held its key interest rate and purchasing program unchanged at their respective 0.5% and GBP375 billion. Great Britain's Halifax House Price Index increased 3.9% month-over-month (forecast 0.7%, prior -0.3%), while the year-over-year reading surged 8.7% (consensus 7.4%, previous 8.5%).
French Unemployment Rate held steady at 10.1% (expected 10.3%).
Among news of note:
Spain is planning to cut its corporate tax rate to 25% from 30%, according to reports.
In U.S. corporate news:

Ciena (CIEN 21.65, +2.66): +14.0% after beating on earnings and guiding Q3 revenue above consensus.
Joy Global (JOY 59.00, +1.15): +2.0% after reporting a bottom-line beat.
The Challenger Job Cuts report showed a 31% increase in May to follow the prior rise of 5.7%.

Weekly Initial Claims ( consensus 310,000) will be released at 8:30 ET.

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