Flickr/Don McCullough
Good Morning! US Futures are showing a lower opening, with S&P off 23bp and Russell getting hit for 40bp. This mirrors weakness overseas, as the DAX is off 1.1% in decent volume - led lower by a drop in the Materials and Consumer Sectors. The FTSE is getting hit for 90bp in good turnover as Glencore's shares collapse on #s weighing on Materials stocks. Athens is bucking the trend, gaining 1% as German Bundestag has approved Greece 3rd bailout (we await those Dutch today). Over in Asia, Shanghai ended up 1.2%, recovering from a 5% intraday fall - as the PBOC bought state-backed companies heavily into the close - but angst on China devaluation and slowdown weigh, as South Korea's Kospi fell 1% - Hong Kong lost 2.3% and Nikkei 1.6%. Aussie gained 1.5% as investors bought up beaten-down shares of Banks and Miners
The US 10YY is off small, the 2YY holding yesterday's gains and Fed Funds showing a 50% chance of a September lift into the publication of today's Fed Minutes (expected to be hawkish as recent China events came after the meeting). The DXY is slightly lower, despite Asian EM Currencies hit again, with Malaysia, Indonesia under pressure and Vietnam's Dong was devalued again overnight - while Thailand's currency sinks to a six-year low after bombing. With the $ weaker, we have a tailwind for commodities - but "industrial" metals like Copper remain well in the red, while the Oil complex is getting hit despite a much-larger than anticipated draw in API inventories last night. Most softs are bid higher, with only Cotton in the red.
Ahead of us today, after heavy retailer earnings (TGT, SPLS, LOW, AEO all pre-open), we get US CPI and Real Avg Weekly Earnings at 8:30, followed by that DOE data at 10:30 (Bloomberg Estimates: U.S. crude stockpiles fell 750,000, while Cushing Stockpiles rose 100,000). U.S. Fed Releases Minutes from July 28-29 FOMC Meeting at 2, and Fed's Kocherlakota (non-voter) speaks at Bank of Korea Event tonight after the close. In DC, Senate, House on August recess and President Obama on vacation in Martha's Vineyard. There is a Citi MLP/Midstream Infrastructure, Enercom Oil & Gas, and ITG Midwest Industrials conference going on today.