Day Traders Diary

11/5/13

U.S. equity futures hover near their lows amid cautious overseas action. The S&P 500 futures trade lower by 0.3%.

Looking at overnight developments:

Asian markets ended on a mixed note. Japan's Nikkei +0.2%, China's Shanghai Composite +0.4%, and Hong Kong's Hang Seng -0.7%.
In regional economic data:
China's HSBC Services PMI ticked up to 52.6 from 52.4.
Japan's monetary base grew 45.8% year-over-year (48.3% forecast, 46.1% prior).
The Reserve Bank of Australia left its key interest rate unchanged at 2.5%, as expected. Separately, the AIG Services Index rose to 47.9 from 47.1.
India's HSBC Services PMI increased to 47.1 from 44.6.
Looking at news:
The People's Bank of China moved to alleviate the ongoing liquidity crunch by conducting its third consecutive liquidity injection in the amount of CNY8 billion. The one-week Shanghai Interbank Offered Rate fell 19 basis points to 4.23%, but longer-term rates rose with the two-week rate climbing almost six basis points to 4.56%.
Major European indices trade broadly lower. Germany's DAX -0.5%, Great Britain's FTSE -0.6%, and France's CAC -0.8%. Elsewhere, Italy's MIB -1.1% and Spain's IBEX -1.1%.
Economic data was limited:
Eurozone PPI ticked up 0.1% month-over-month (0.2% expected, 0.0% last) while the year-over-year reading reflected a decline of 0.9% (-0.7% forecast, -0.8% prior).
Great Britain's Services PMI jumped to 62.5 from 60.3 (59.8 forecast).
Swiss CPI ticked down 0.1% month-over-month (0.1% consensus, 0.3% last) while the year-over-year reading slipped 0.3% (-0.2% expected, -0.1% prior).
Among news of note:
Core European bonds have been on the defensive along with equities. Germany's 10-yr yield is higher by one basis point at 1.71% and the French 10-yr yield has added three basis points to 2.18%.
Italian Finance Minister Fabrizio Saccomanni said a strong euro presents a risk to the recovery, but he is not seeing any risk of deflation in the eurozone at this time.
In U.S. corporate news:

AOL (AOL 39.80, +1.08): +2.8% after reporting revenue ahead of analyst estimates.
Cognizant Tech (CTSH 87.20, +0.35): +0.4% following its better-than-expected earnings and upbeat guidance.
CVS Caremark (CVS 63.30, +1.32): +2.1% after beating on earnings and revenue.
DirecTV (DTV 64.99, +0.62): +1.0% following its above-consensus earnings on in-line revenue.
Hertz Global (HTZ 24.27, +0.47): +2.0% after surpassing earnings and revenue estimates.
RR Donnelley (RRD 18.92, +0.02): +0.1% after missing on earnings and revenue. However, the company raised its full-year 2013 revenue guidance above analyst estimates.
The October ISM Services report will be released at 10:00 ET.

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