Day Traders Diary



The U.S. equity market had a big day on Friday following another 'Goldilocks' jobs report, with the Nasdaq Composite rallying 1.8% to a new record high, and looks poised to open today's session with a modest gain. The S&P 500 futures are trading four points, or 0.1%, above fair value, while the Nasdaq 100 futures and the Dow futures are up 0.5% and 0.3%, respectively.

Overseas, equity indices in the Asia-Pacific region ended Monday on a positive note, with Japan's Nikkei and Hong Kong's Hang Seng adding nearly 2.0% apiece, while the major bourses in Europe are also broadly higher. Germany's DAX shows particular strength, rallying 0.7% to a new March high.

Outside of equities, U.S. Treasuries are flat, with the benchmark 10-yr yield unchanged at 2.89%, the U.S. Dollar Index is also flat at 90.15, gold futures are down 0.6% at $1316 per oz, and West Texas Intermediate crude futures are lower by 0.6% at $61.64 per barrel.

Investors will receive just one economic report today, the February Treasury Budget ( consensus -$216.0 billion), which will be released at 2:00 PM ET.

In U.S. corporate news:

  • Broadcom (AVGO 261.63, +7.83): +3.1% following a Wall Street Journal report that Intel (INTC 52.05, -0.14) is considering a range of acquisition alternatives in reaction to Broadcom's pursuit of Qualcomm (QCOM 63.05, +0.02), including a bid for Broadcom.

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region began the week on a higher note. Japan's Nikkei +1.8%, Hong Kong's Hang Seng +1.9%, China's Shanghai Composite +0.6%, India's Sensex +1.8%.
    • In economic data:
      • Japan's Q1 BSI Large Manufacturing Conditions 2.9 (expected 10.3; last 9.7)
      • Singapore's January Retail Sales -5.4% month-over-month (last 0.6%); -8.4% year-over-year (last 6.3%)
    • In news:
      • The upbeat trade overshadowed a worsening political crisis, which has weighed on Prime Minister Shinzo Abe cabinet's approval rating. Japan's Finance Ministry admitted it tampered with records related to a land sale to remove references to Prime Minister Abe's wife. This suggests Mrs. Abe exerted undue influence over the land sale. A member of an opposition party has called on the prime minister's cabinet, whose approval rating has declined two points to 44% according to NHK, to resign en masse.
      • China's National People's Congress approved the plan to do away with term limits, which puts Xi Jinping on track to rule for life.
  • Major European indices trade on a mostly higher note while the UK's FTSE underperforms, trading flat. France's CAC +0.2%, Germany's DAX +0.7%.
    • In economic data:
      • There wasn't any economic data of note.
    • In news:
      • Central Bank of Ireland Governor Philip Lane is reportedly among the top candidates to become the next chief economist of the European Central Bank. The spot will come up for renewal in 2019.
      • ECB member Benoit Coeure acknowledged that regional growth is currently too dependent on monetary policy.
      • The Eurogroup, which is meeting today, will discuss the next disbursement of bailout funds to Greece. Inspectors formerly known as 'troika' will return to Athens in May to ascertain the progress on reforms that have been ordered by the creditors.

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