Check the background of this firm on FINRA's BrokerCheck.

Leigh Baldwin & Co.

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

Check the background of this firm on FINRA's BrokerCheck.

Day Traders Diary

2/21/18

 

The S&P 500 futures are trading three points (0.1%) below fair value this morning as investors look ahead to the 2:00 PM ET release of the minutes from the January FOMC meeting. Meanwhile, the Nasdaq 100 futures are trading 15 points (0.2%) above fair value, and the Dow futures are down 36 points (0.1%).

The three major averages declined between 0.1% and 1.0% on Tuesday, with the S&P 500 and the Dow breaking their six-session winning streaks.

Ahead of the release of the minutes for the January FOMC meeting, the market is placing the chances of a March rate hike at 84.6% and is calling for a total of three rate hikes in 2018, according to the CME FedWatch Tool. The yield on the 2-yr Treasury note, which is more susceptible to Fed policy, is trading five basis points above yesterday's close at 2.27%--its highest level in nearly 10 years. Meanwhile, the benchmark 10-yr yield is flat at 2.89%.

In addition to the minutes, investors will receive Existing Home Sales for January (Briefing.com consensus 5.62 million), which will cross the wires at 10:00 AM ET. The weekly MBA Mortgage Applications Index was released earlier this morning, showing a decrease of 6.6% to follow last week's 4.1% decline.

Overseas, equity indices in the Asia-Pacific region ended Wednesday on a higher note, with Hong Kong's Hang Seng (+1.8%) setting the pace, while the major European bourses are trading on a modestly lower note. The U.S. dollar is up 0.2% against the euro (1.2312) and 0.2% against the Japanese yen (107.53).

In U.S. corporate news:

  • Southern (SO 44.70, +1.23): +2.8% after reporting above-consensus earnings and revenues.
  • Advance Auto (AAP 108.00, +2.65): +2.5% after reporting better-than-expected earnings and revenues.

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended the midweek session on a mostly higher note while China's Shanghai Composite remained closed for Lunar New Year. Japan's Nikkei +0.2%, Hong Kong's Hang Seng +1.8%, India's Sensex +0.4%.
    • In economic data:
      • Japan's February Manufacturing PMI 54.0 (expected 55.2; last 54.8). All Industries Activity Index 0.5% month-over-month, as expected (last 0.5%)
      • Australia's Q4 Construction Work Done -19.4% quarter-over-quarter (expected -10.1%; last 16.6%). Q4 Wage Price Index +0.6% quarter-over-quarter (expected 0.5%; last 0.5%); +2.1% year-over-year (consensus 2.2%; last 2.0%)
      • South Korea's January PPI +0.4% month-over-month (last 0.1%); +1.2% year-over-year (last 2.2%)
    • In news:
      • Japan's Prime Minister Shinzo Abe is reportedly seeking new stimulus options to implement after a sales tax hike in October and the Olympics in 2020. Various studies have shown that Olympic Games tend to have a negligible (and often negative) impact on the host country's economy.
      • General Motors is willing to make a $2.80 billion investment in its South Korean unit over the next ten years.
  • Major European indices trade mostly lower with Spain's IBEX (-0.9%) pacing the retreat. UK's FTSE +0.1%, France's CAC -0.2%, Germany's DAX -0.6%.
    • In economic data:
      • Eurozone February Manufacturing PMI 58.5 (expected 59.2; last 59.6) and February Services PMI 56.7 (expected 57.7; last 58.0)
      • Germany's February Manufacturing PMI 60.3 (expected 60.6; last 61.1) and February Services PMI 55.3 (expected 56.9; last 57.3)
      • UK's December Average Earnings Index + Bonus +2.5%, as expected (last 2.5%); January Claimant Count Change -7,200 (expected 2,300; last 6,200). January Unemployment Rate 4.4% (expected 4.3%; last 4.3%) and January Public Sector Net Borrowing -GBP11.62 billion (expected -GBP11.50 billion; last GBP280 million)
      • France's February Manufacturing PMI 56.1 (expected 58.1; last 58.4) and February Services PMI 57.9 (expected 59.1; last 59.2)
    • In news:
      • Italy's Economy Minister Pier Carlo Padoan warned it is not a given that Bundesbank President Jens Weidmann will be named the next ECB President.
      • British and EU negotiators are reportedly in broad agreement regarding the post-Brexit transition period, but the two sides have yet to set an end date for the transition.
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.