Day Traders Diary
U.S. futures are pointing to a lower start again this morning as U.S. Treasury yields continue to rise. The S&P 500 futures are currently trading 14 points, or 0.5%, below fair value.
Yesterday's volatile session was marred by a continued weakness of highly valued technology stocks. Today, however, the focus is on the U.S. Treasury market, which is preparing for its first trading session of the week after being closed in observance of Columbus Day on Monday.
The yield on the benchmark 10-yr Treasury note, which surged to a fresh a seven-year high last week, has tacked on another two basis points this morning, rising to 3.25%. Meanwhile, the more Fed-sensitive 2-yr yield remains unchanged at 2.88%. The higher yields have helped underpin the U.S. Dollar Index, which is up 0.3% at 95.80.
With yields in focus yet again, market participants will pay heed to several Fed speakers today in hopes to gauge expectations regarding future interest rate hikes. Dallas Fed President Robert Kaplan kicked things off earlier this morning and will be followed by Chicago Fed President Charles Evans at 10:00 AM ET and Philadelphia Fed President Patrick Harker at 1:00 PM ET. In addition, New York Fed President John Williams will speak tonight at 9:15 PM ET.
In worldly news, the International Monetary Fund (IMF) cut its global growth forecast to 3.7% from 3.9% in both 2018 and 2019. The revision comes amid the U.S.-China trade war, slumping emerging market economies, and uncertainties over Brexit and the new United States-Mexico-Canada Agreement. The IMF also cut its U.S. growth forecast to 2.5% from 2.7% in 2019.
Also of note, Hurricane Michael has intensified to a Category 2 storm and is expected to hit the Florida panhandle on Wednesday.
Earlier, the NFIB Small Business Optimism Index for September was released, decreasing to 107.9 from 108.8. Investors will not receive any further economic data today.
In corporate news:
Reviewing overnight developments: