Dave Lutz, head of ETFs at JonesTrading, has an overview of today’s markets.
- Earning season is ramping up this week, here are the 180 S&P 500 companies that are reporting.
- US markets are in the green Monday morning.
- Catalonia tensions persist, and the IBEX and Euro are trading in the red today.
Good Morning, and welcome to the Busiest week of reporting for this Earnings Season – We have over 180 S&P 500 names gearing for prints this week – Right now US futures remain in rally mode, with Nasdaq, Russell and Spoos all 10bp+ higher. It’s pretty much all green in Europe, where the DAX is up 50bp despite weakness in the Banks. Catalonia Headers have IBEX firmly red, as Financials weigh on exchanges in Spain and Italy. London is lagging as Sterling rallies, but rallies in miners and staples are mitigating losses. Volumes are weak, most major exchanges trading 20-30% light. In Asia, Nikkei now up 15 in a row, ripping 1.1% on the Landslide Abe victory – Shanghai up small – KOSPI up small, but KOSDAQ up 40bp – Hang Seng down 60bp with Fins under pressure as Asia-focused insurer AIA Group breaks lower – Aussie lost 20bp as Gold Miners struggled – Typhoon Lan weighed on airliners and rail names in the region
Fed Funds remain at 92% for a December Hike, and Traders continue to positions hawkishly, with the US10YY nearing 2.4% despite Bund Yields in the Red as the US 5Y shorts press it thru 2%. The DXY is enjoying a broad-based rally towards 94, as the Spain Crisis weighing on Euro – The Yen breaking lower on Japan Election headers, while commodity currencies like the A$ continue to stumble. Gold Is off 30bp and thru last week’s lows as the Greenback weighs, but Copper is in the green despite Ore off 2.2% in China. The Oil complex continues to drift around $52, while Natty gas is holding last week’s gains despite a $3 reject in early trade.