Via Dave Lutz at JonesTrading, here’s a super quick guide to what traders are talking about right now:
Good Morning, and Happy Friday the 13th! Markets cautious ahead of US retail sales data, as commodities get whacked as speculation in China reverses course. US Futures are off only 20bp, shrugging off a 15% whack to JWN early and bucking sharper weakness overseas. The DAX is in the green, gaining 20bp but remaining well below the 50dma. Consumer discretionary weaker across the continent, while Yield proxies like Utilities and Telecom buck the selling to remain green. The FTSE is down 40bp as Brexit Scaremongering accelerates, and a pullback in metals weighs sharply on the Miners in London. Over in Asia, Shanghai lost 30bp, extending the longest weekly losing streak in 3 months – Aussie lost 60bp – Kospi lost 50bp as Bank Korea left rates on hold (as expected) – while Nikkei was whacked for 1.4%. Emerging markets stocks sink for fourth straight week, with no major markets in Asia trading green overnight.
We do have some haven action early, with Bunds and Treasuries bid, and Gold shrugging off $ strength to gain 80bp. Euro weaker on inflation #s, while Commodity FX get whacked led by a drop in the Aussie$. Despite the Yen shrugging off Kuroda jawboning, the DXY is tracking toward 2 week highs. Commodities look ugly early – Rebar was slammed for 6% in China, while Ore lost 4.4% to a 4month low. The Oil complex is off 1.3%, following Gasoline down the rabbit hole – while Natty is getting smoked for 3% early. Softs, which have been en fuego of late, are seeing sharp profit-taking across the board.
Ahead of us today, we get Advance Retail Sales for April and PPI at 8:30, ahead of that Business Inventories and U. of Mich. Sentiment at 10. The Oil complex will focus on Baker Hughes Rig Count at 1 – and we get that CFTC “Commitment of Traders” data at 3:30. Huge weekend for Chinese data, with industrial output, investment and retail sales data are all due on Saturday – while stock-pickers will be parsing the slew of 13Fs hitting into Monday’s deadline. Down in Washington, at 12 the Homeland Security Sec and TSA Administrator hold an event at Washington National Airport to discuss summer travel season, increased passenger volume, traveler safety. Airlines have been bruised and battered of late.