Day Traders Diary

10/7/14

U.S. equity futures hold modest losses amid cautious action overseas. The S&P 500 futures hover six points below fair value after spending the entire night in negative territory. Futures slumped following a disappointing Industrial Production report from Germany (-4.0%; expected -1.5%), which has pressured the euro back below the 1.2600 level against the dollar. Conversely, the Dollar Index (86.01, +0.07) has received a modest boost after slumping from a four-year high yesterday.

Treasuries hold modest gains with the 10-yr yield down one basis point at 2.41%.

In U.S. corporate news of note:

AGCO Corporation (AGCO 42.14, -4.96): -10.5% after guiding Q3 results below analyst expectations
CalAmp (CAMP 17.86, +1.36): +8.2% after beating bottom-line estimates on in-line revenue
Container Store (TCS 18.75, -3.14): -14.3% after missing revenue estimates and guiding below analyst estimates
SodaStream (SODA 24.00, -3.57): -13.0% after priming the market for disappointing Q3 results

The Job Openings and Labor Turnover Survey for August will be released at 10:00 ET, while August Consumer Credit (Briefing.com consensus $20.00 billion) will cross the wires at 15:00 ET.

Reviewing overnight developments:

Asian markets ended mixed. Japan's Nikkei -0.7%, Hong Kong's Hang Seng +0.5%, and China's Shanghai Composite was closed
In economic data:
Japan's Leading Index fell to 104.0 from 105.4 (expected 104.2)
Hong Kong's Manufacturing PMI ticked down to 49.8 from 49.6 (consensus 50.7)
India's HSBC Services PMI rose to 51.6 from 50.6 (expected 50.9) § Australia's AIG Construction Index rose to 59.1 from 55.0
In news:
The Reserve Bank of Australia made no changes to its policy, keeping its rate at 2.5%, as expected
The Bank of Japan also left its key rate unchanged at 0.1%, as expected. Furthermore, Governor Haruhiko Kuroda said more easing can be implemented, if needed
Bank Indonesia made no changes to its policy, keeping its key rate at 7.5%, as expected
Major European indices trade lower across the board. Great Britain's FTSE -0.6%, Germany's DAX -0.8%, and France's CAC -1.1%. Elsewhere, Italy's MIB -1.1% and Spain's IBEX -1.6%
Participants received several data points:
Germany's Industrial Production fell 4.0% month-over-month (expected -1.5%; prior 1.6%)
France's government budget deficit widened to EUR94.10 billion from EUR84.10 billion
Great Britain's Industrial Production was unchanged month-over-month (expected 0.2%; previous 0.4%), while the year-over-year reading rose 2.5% (consensus 2.6%; last 2.2%). Separately, Manufacturing Production ticked up 0.1% month-over-month, as expected
Swiss Retail Sales rose 1.9% year-over-year (expected 0.7%; previous -0.3%). Separately, CPI ticked up 0.1% month-over-month (expected 0.2%; prior 0.0%), while the year-over-year reading fell 0.1% (consensus 0.0%; last 0.1%)
In news:
In France, Finance Minister Michel Sapin said the European Commission lacks the authority to reject a budget due to missed deficit targets, signaling the country will present a weaker budget than previously expected.

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