Day Traders Diary
9/11/14U.S. equity futures hover near their pre-market lows amid cautious action overseas. The S&P 500 futures hover eight points below fair value after spending the entire night in negative territory. Last evening, President Obama announced the U.S. will lead a coalition effort aimed at defeating ISIS militants in Iraq and Syria, while stepping up support for Syrian opposition. Treasuries have strengthened following the announcement with the 10-yr note higher by four ticks and its yield down two basis points at 2.52%.
The first three sessions of the week were very quiet on the economic front and today's data will be limited to weekly initial claims (Briefing.com consensus 300K), which will be released at 8:30 ET, and the Treasury Budget for August (expected deficit of $129 billion), which will cross the wires at 14:00 ET.
In U.S. corporate news of note:
JDS Uniphase (JDSU 13.65, +1.54): +12.8% after announcing plans to separate into two public companies by the third quarter of 2015
Men's Wearhouse (MW 54.40, +0.53): +1.0% after beating earnings estimates on light revenue
Restoration Hardware (RH 80.15, -1.90): -2.3% following its bottom-line beat on below-consensus revenue and mixed guidance
Reviewing overnight developments:
Asian markets ended mostly lower. China's Shanghai Composite -0.3%, Hong Kong's Hang Seng -0.2%, and Japans' Nikkei +0.8%
In economic data:
China's CPI rose 0.2% month-over-month (expected 0.4%; prior 0.1%), while the year-over-year reading increased 2.0% (consensus 2.2%; previous 2.3%). Also of note, PPI fell 1.2% year-over-year (expected -1.1%; last -0.9%)
Japan's BSI Large Manufacturing Conditions improved to 12.7 from -13.9 (consensus -10.3)
Australia's payrolls grew by 121,000 (expected 12,000; previous -4,100), while full-time workers increased by 14,300 (consensus 22,900; last 15,400). The Unemployment Rate fell to 6.1% from 6.4% (expected 6.3%)
The Reserve Bank of New Zealand made no changes to its policy, keeping its key rate at 3.5%, as expected
Reports out of Japan suggest Bank of Japan Governor Haruhiko Kuroda will push for more monetary easing during his first meeting with Prime Minister Abe in almost six months
Major European indices hold modest losses. Great Britain's FTSE -0.4%, France's CAC -0.3%, and Germany's DAX -0.1%. Elsewhere, Italy's MIB -0.3% and Spain's IBEX -0.5%
Economic data was limited:
Germany's CPI was unchanged month-over-month, while the year-over-year reading increased 0.8%. Both figures matched expectations.
French CPI rose 0.5% month-over-month (expected 0.4%; last -0.3%)
Among news of note:
The First Minister of Catalonia, Artur Mas, said the Spanish government has been uncooperative with regard to the independence movement and that the region intends to vote in favor of the referendum. 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.