Day Traders Diary


U.S. equity futures trade modestly higher amid subdued action overseas. The S&P 500 futures hover five points above fair value.
Reviewing overnight developments:
Asian markets ended on a lower note. Japan's Nikkei -0.1%, China's Shanghai Composite -1.2%, and Hong Kong's Hang Seng -1.6%
Participants received several data points:
China's CPI slipped 0.1% month-over-month (previous 0.1%), while the year-over-year reading rose 2.3% (consensus 2.4%, prior 2.5%). Separately, PPI fell 1.1% year-over-year (expected -1.0%, last -1.4%)
Australia's Westpac Consumer Sentiment rose 1.9% (previous 0.2%)
New Zealand's Electronic Card Retail Sales were unchanged month-over-month (expected 0.2%, previous 1.3%), while the year-over-year reading increased 4.0% (last 7.6%)
In news:
Markets in China and Hong Kong slumped after the release of the latest inflation data that showed softer than expected growth in consumer prices. Japan's Nikkei, however, outperformed thanks to a measure of support provided by dollar strength against the yen. The dollar/yen pair is currently modestly higher at 101.69
Major European indices trade in mixed fashion. Great Britain's FTSE -0.6%, France's CAC is flat, and Germany's DAX +0.1%. Elsewhere, Italy's MIB +0.5% and Spain's IBEX +0.2%
Economic data was limited:
Great Britain's Halifax House Price Index fell 0.6% month-over-month (consensus 0.2%, previous 4.0%), while the year-over-year reading jumped 8.8% (forecast 8.9%, prior 8.7%)
Among news of note:
European Central Bank member Peter Praet commented on regional inflation, saying weak price pressure has extended into non-stressed countries and that core inflation was also trending below potential
In U.S. corporate news:

Alcoa (AA 15.16, +0.31): +2.1% after beating earnings and revenue estimates. The company reaffirmed its global aluminum demand growth guidance at 7.0% and hiked its commercial transportation guidance for N. America
AeroVironment (AVAV 32.52, +1.56): +5.0% following its better than expected results
Container Store (TCS 22.88, -4.19): -15.5% in reaction to a bottom-line miss and soft guidance that cited weak retail environment
Reynolds American (RAI 62.60, +1.29): +2.1% following reports in the IFA Magazine, suggesting British American Tobacco (BAT 121.97, -0.89) could make an offer the company. Lorillard (LO 60.58, -2.35) was previously mentioned as a suitor for RAI, but the stock trades lower by 3.7% in reaction to today's reports
The weekly MBA Mortgage Index rose 1.9% to follow last week's downtick of 0.2%.

The minutes from the June FOMC meeting will be released at 14:00 ET.

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