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Leigh Baldwin & Co.

112 Albany Street, Cazenovia, NY 13035 | Phone: (315) 655-2964 Toll Free: 1-800-659-8044

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Day Traders Diary

8/2/17

Nasdaq futures are trading solidly above fair value this morning, up 35 points or 0.7%, following Apple's (AAPL 158.58, +8.53) upbeat earnings report, which was released following yesterday's closing bell. Meanwhile, the S&P 500 futures trade flat, in line with fair value.

 

Apple is trading higher by 5.7% in pre-market action after the tech titan beat both top and bottom line estimates. iPhone sales--the company's biggest source of revenue--met expectations and it appears that the much-anticipated iPhone 8 is still on track to launch this year. Apple looks poised to open Wednesday at a fresh all-time high, further extending its already massive year-to-date advance of 29.6%.

 

The ADP National Employment Report for July (Briefing.com consensus 187K), which precedes Friday's more influential Employment Situation Report for July (Briefing.com consensus 181K), will cross the wires at 8:15 ET this morning. Investors will take the ADP reading with a grain of salt as it has deviated sharply from the official government reading in the past.

 

Today's only other economic report--the weekly MBA Mortgage Applications Index--crossed the wires earlier this morning, showing a decrease of 2.8% to follow last week's 0.4% increase.

 

Crude oil is hovering just a tick below its unchanged mark, down 0.1% at $49.09/bbl, after the American Petroleum Institute (API) reported a build of 1.8 million barrels on Tuesday evening. The reading was a disappointment as the consensus called for a draw of 2.9 million barrels. The Department of Energy will release its weekly inventory figures, which often conflict with the API reading, at 10:30 ET.

 

U.S. Treasuries have given back a portion of yesterday's sizable advance this morning while the U.S. Dollar Index (92.87, -0.04) trades flat, hovering near a 15-month low. The benchmark 10-yr yield is up two basis points at 2.27%.

 

In U.S. corporate news:

 

Apple (AAPL 158.58, +8.53): +5.7% after beating top and bottom line estimates.

Time Warner (TWX 103.68, +1.26): +1.2% after reporting better than expected earnings.

Mondelez (MDLZ 44.70, +1.08): +2.5% after beating bottom-line estimates.

Pioneer Natural Resources (PXD 149.98, -13.29): -8.1% after lowering its forecast for production growth. On a positive note, PXD beat top and bottom line estimates.

Illumina (ILMN 189.79, +17.49): +10.2% after reporting better than expected earnings and revenues and raising its revenue guidance for the fiscal year.

Reviewing overnight developments:

 

Equity indices in the Asia-Pacific region ended the midweek session on a mixed note. Japan's Nikkei +0.5%, Hong Kong's Hang Seng +0.2%, China's Shanghai Composite -0.2%, India's Sensex -0.3%.

In economic data:

Japan's July Household Confidence 43.8 (expected 43.6; last 43.3) and Monetary Base +15.6% year-over-year (expected 16.6%; last 17.0%)

Hong Kong's June Retail Sales +0.1% year-over-year (last 0.5%)

Australia's June Building Approvals +10.9% month-over-month (expected 1.5%; last -5.4%) and June Private House Approvals +3.4% (last 1.3%)

New Zealand's Q2 Employment Change -0.2% quarter-over-quarter (expected 0.7%; last 1.2%). Q2 Participation Rate 70.00% (expected 70.7%; last 70.6%) and Q2 Employment Change -0.2% quarter-over-quarter (expected 0.7%; last 1.2%). Q2 Unemployment Rate 4.8%, as expected (last 4.9%)

In news:

Technology stocks had a good showing after Apple (AAPL) reported better than expected results for the third quarter.

Reports out of Washington indicate the Trump administration has opened a broad inquiry into China's trade practices, focusing on treatment of theft of intellectual property.

The People's Bank of China will reportedly use a wider array of instruments to maintain liquidity in August.

Bank of Japan member Yukitoshi Funo said that current price momentum is insufficient to achieve the 2.0% CPI target.

The Reserve Bank of India lowered its repurchase rate by 25 basis points to 6.00%, as expected.

Major European indices trade on a lower note, but losses have been limited through the first half of action. France's CAC -0.1%, Germany's DAX -0.2%, UK's FTSE -0.3%.

In economic data:

Eurozone June PPI -0.1% month-over-month, as expected (last -0.3%); +2.5% year-over-year (consensus 2.4%; last 3.4%)

Spain's Unemployment Change -26,900 (expected -66,500; last -98,300)

Swiss July Retail Sales +1.5% year-over-year (expected 1.3%; last -0.8%) and July SVME PMI 60.9 (expected 58.9; last 60.1). Q3 SECO Consumer Climate -3, as expected (last -8)

In news:

Moody's raised its outlook on the UK banking sector to 'Stable' from 'Negative' due to increased resilience.

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.