- Thomson Reuters
Dave Lutz, head of ETFs at JonesTrading, has an overview of today’s markets.
- Netflix beat earnings after the bell on Monday and shares hit all-time highs. Goldman Sachs and Morgan Stanley crushed earnings expectations. Spain’s IBEX continues to fall amid Catalonia tensions. Oil is adding to previous gains as Iraqi and Kurdish forces clash.
Good Morning! US Futures are drifting around unchanged, with some big tech rallying behind NFLX up 2.5%. Slightly Green in Europe, with the DAX up 10bp in very light volumes. Staples acting good behind Danone #s and Banks rallying as activists target Credit Suisse. IBEX continues to underperform into Thursday’s Catalonia presser, and Italian Banks are under some pressure early. In London, FTSE up small in heavy turnover – Sharp weakness in Merlin offset by Pearson’s leap higher, and weakness in Miners offset by a rally in FTSE banks. In Asia, TOPIX up 20bp – Hang Seng Unch and Shanghai off small in terrible liquidity – KOSPI up20bp, but Tech-Heavy KOSDAQ up 1.7%, and Aussie popped 70bp as Miners shares rallied behind RIO shipment #s.
The US 10YY is unch after being rejected from the 200d earlier – but Fed Funds at 87% for December and the 2YY at 9year highs and the DXY continues to rally as Taylor’s chances increase in Washington. Broad based rally in the Dollar, as UK Inflation posts inline at 5Y+ highs and Euro weaker as Germany’s ZEW comes in light. Ore retreated 2% overnight, and we have some profit-taking in Copper, off 1% early. Gold Continues to retreat from $1300 and the 200dma as the stronger $ outweighs North Korea angst. WTI adding to yesterday’s gains as Iraqi and Kurdish forces continue to clash, and Natty Gas rebounding, up nearly 2% as Traders on the East Coast awaken to a chilly morning.