Day Traders Diary



Stocks snapped an eight-week winning streak on Friday and are on track to open today's session in negative territory; the S&P 500, Dow, and Nasdaq futures are all hovering 0.3% below fair value. Still, the U.S. equity market is trading just a tick below its all-time high despite the recent struggles.

Elsewhere, the Euro Stoxx 50 is down 0.8%, while equity indices in the Asia-Pacific region began the week on a mixed note.

At this point in the third quarter earnings season, more than 90% of S&P 500 companies have reported their quarterly results. However, there are still a handful of notable names due to report this week, including Home Depot (HD) and TJX (TJX) on Tuesday, Target (TGT) and Cisco Systems (CSCO) on Wednesday, and Wal-Mart (WMT) on Thursday to name a few.

As for economic data, investors will receive several influential reports this week, including the October Producer Price Index ( consensus +0.1%) on Tuesday, the October Consumer Price Index ( consensus +0.1%) and October Retail Sales ( consensus +0.1%) on Wednesday, and October Housing Starts ( consensus 1198K) on Friday.

Today's lone economic report--the October Treasury Budget--will be released this afternoon at 14:00 ET.

Outside the equity market, U.S. Treasuries are rallying this morning, sending yields lower across the curve; the yield on the benchmark 10-yr Treasury note is down three basis points at 2.37%. Meanwhile, WTI crude futures are up 0.2% at $56.83/bbl, the U.S. Dollar Index is higher by 0.1% at 94.41, and the CBOE Volatility Index (VIX 11.84, +0.55) is up 4.9%.

In U.S. corporate news:

  • Mattel (MAT 18.20, +3.58): +24.5% following a report that Hasbro (HAS 94.51, +3.06) has made a takeover offer for the company.
  • General Electric (GE 20.64, +0.15): +0.7% after announcing that it will cut its quarterly dividend by 50%, as expected.
  • Qualcomm (QCOM 64.47, -0.10): -0.2% following a report that it's drafting a plan to reject Broadcom's (AVGO 264.39, -0.57) acquisition offer.

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region began the week on a mixed note. Japan's Nikkei -1.3%, Hong Kong's Hang Seng +0.2%, China's Shanghai Composite +0.4%, India's Sensex -0.8%.
    • In economic data:
      • China's October New Loans CNY663.20 billion (expected CNY780.00 billion; last CNY1.27 trillion). October M2 Money Stock +8.8% year-over-year (consensus 9.2%; last 9.2%) and October Outstanding Loan Growth +13.0% year-over-year (consensus 13.1%; last 13.1%)
      • Japan's October PPI +0.3% month-over-month (expected 0.1%; last 0.2%); +3.4% year-over-year (consensus 3.1%; last 3.0%). October Machine Tool Orders +49.9% year-over-year (last 45.0%)
      • South Korea's October Import Price Index +6.8% year-over-year (last 10.8%) and Export Price Index +8.0% year-over-year (last 11.2%)
    • In news:
      • Weekend reports indicated that an agreement on Trans-Pacific Partnership is near, but there has been pushback from Canada and New Zealand. New Zealand, however, is set to implement a revised version of the deal despite opposition from its Green Party.
      • Reserve Bank of Australia Assistant Governor Guy Debelle said that non-mining business investment has been on the rise in the past couple years.
      • Chinese debt remained pressured, lifting China's 10-yr yield to a fresh three-year high of 3.97%.
  • Major European indices trade in negative territory. UK's FTSE -0.1%, Germany's DAX -0.8%, France's CAC -1.0%.
    • In economic data:
      • Germany's October WPI 0.0% month-over-month (expected 0.4%; last 0.6%); +3.0% year-over-year (last 3.4%)
    • In news:
      • Reports indicate that 40 British MPs are willing to sign a letter of no confidence in Theresa May, just short of 48 signatures required to force a leadership vote. Brexit minster David Davis said the UK will not have to present a settlement offer to advance to the second stage of Brexit talks.

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