Thomson Reuters
Traders work on the floor of the New York Stock Exchange (NYSE) shortly after the opening bell in New York
In brief:
- Futures are rising from the lowest level in one month.
- Netflix is ripping higher, up 19% after big beats on earnings and subscriber growth.
- The consumer price index and homebuilder sentiment are on the data calender. Intel and Yahoo are among the major companies that will report earnings after the closing bell.
Here's Lutz:
Good Morning! Spoos trying to bounce from 1M lows, with Futures up 50bp in early action - While focus remains on earnings (FANG Ripper led by NFLX may be tempered by losses in IBM), a sharp bounce in the commodity complex is helping risk appetite. In Europe, the DAX is up 1.1% as Miners lead gains and the Banks break above the 200dma. Consumer is mixed as Luxury split between Burberry and Remy #s. The FTSE is lagging a bit as the Pound gets more upward mojo, and volumes across the continent are pacing slightly light to trend. In Asia, Shanghai rallied over 1%, and those "B" shares recovered almost ½ of yesterday's whack - Nifty50 reclaimed the crucial level of 8,600 - Nikkei gained 40bp as the yen softened back above $/Y104 - Aussie up 40bp as Miners and Banks outperform, while Philippines jumped nearly 3% ahead of Duerte's trip to China.
A sharp bid for Bunds and Treasuries remain, pressing the US 10YY back to the 200dma and yesterday's lows. The DXY continues to pull back from 7month peaks despite a Fresh Renminbi Low, as the Aussie $ popped on hawkish tone from Stevens - the ECB lending survey supported Euro, and GBP rallying as UK Inflation comes in hotter. With the weaker $, Commodities are up across the board as steel rises in Asia, helping Base Metals like Zinc, Platinum and Nickel, while Copper continues to lag. WTI is up 1% and close to yesterday's highs as we await API tonight, while Natty continues to advance, gaining 1.2%. Softs are all lower across the board.
Ahead of us today, we get US CPI, along with "Real Average Weekly Earnings" at 8:30 - Bank of England Bond-Buying Operation Results post at 9:50, just ahead of the US NAHB Housing Market Index at 10. At 4pm we get Total Net TIC Flows from the US Treasury - Just ahead of that API data for Crude at 4:30 - Overall Supplies Seen Increasing 2.1M, With Gasoline Stocks dropping 1.125M (Bloomies) - Genscape looking for a Cushing draw -2.4M, Plains All American Pipeline outage blamed. Earnings are heavy on Tech post-close, with INTC, CREE, LLTC and YHOO among others.