Day Traders Diary

6/11/15

U.S. equity futures trade near their flat lines after spending the night inside narrow ranges. The S&P 500 futures hover three points above fair value after maintaining a four-point range throughout the night.

This week has been very quiet on the economic front, but things will get a bit busier today with weekly Initial Claims (Briefing.com consensus 278K), May Retail Sales (consensus 1.1%), and May Import/Export Prices set to be reported at 8:30 ET while the April Business Inventories report (consensus 0.2%) will be released at 10:00 ET. Treasuries are little changed with the 10-yr yield at 2.49%.

In U.S. corporate news:

Krispy Kreme Doughnuts (KKD 18.30, +0.90): +5.2% after above-consensus earnings overshadowed disappointing revenue.

Men's Wearhouse (MW 63.00, +4.47): +7.6% after beating estimates and reaffirming its guidance. In addition, the company announced a partnership with Macy's (M 68.54, 0.00) and Kenneth Cole.

Nike (NKE 104.50, +1.16): +1.1% after announcing a partnership with the National Basketball Association to provide all licensed apparel starting in 2017.

Reviewing overnight developments:

Asian markets ended mostly higher. China's Shanghai Composite +0.3%, Hong Kong's Hang Seng +0.8%, and Japan's Nikkei +1.7% 

In economic data: 

China's May Retail Sales +10.1% year-over-year (expected +10.1%; prior +10.0%), May Fixed Asset Investment +11.4% year-over-year (expected +12.0%; prior +12.0%), May Industrial Production +6.1% year-over-year (expected +6.0%; prior +5.9%), May New Loans CNY 900.8 bln (expected CNY $900.0 bln; prior CNY 707.9 bln), and May M2 Money Stock +10.8% year-over-year (expected +10.5%; prior +10.1%)

Japan's Q2 BSI Large Manufacturing Conditions -6.0 (expected 3.2; prior 2.4)

Australia's May Employment Change +42,000 (expected +11,000; prior -13,700), May Unemployment Rate 6.0% (expected 6.2%; prior 6.1%), and MI Inflation Expectations 3.0% (prior 3.6%)

In news: 

The Reserve Bank of New Zealand unexpectedly cut its main lending rate 25 basis points to 3.25%

The Bank of Korea also lowered its main lending rate 25 basis points to 1.50%, but this move was expected

Major European indices trade higher across the board. UK's FTSE +0.4%, France's CAC +0.8%, and Germany's DAX +1.0%. Elsewhere, Spain's IBEX +0.7% and Italy's MIB +0.9% 

Economic data was limited: 

French May CPI +0.2% month-over-month (expected 0.3%; prior 0.1%) while Q1 Nonfarm Payrolls 0.0% (expected -0.1%; prior -0.1%)

Among news of note: 

Several eurozone officials have indicated that a deal with Greece will be reached in the next few days with Bundesbank President Jens Weidmann saying the risk of insolvency is increasing by the day

Standard & Poor's downgraded Greece to 'CCC' from 'CCC+' and warned the country is likely to default within the next year