Day Traders Diary

9/3/15

U.S. equity futures trade modestly higher amid upbeat action overseas. The S&P 500 futures hover eight points above fair value after hitting their best levels of the morning shortly after Europe opened for action. Since then, futures have surrendered about a third of their gains while markets across Europe hold solid gains.

Treasuries are little changed with the 10-yr yield at 2.18%.

On the economic front, the Challenger Job Cuts report for August showed a 2.9% increase to follow last month's 125.4% spike. Meanwhile, weekly Initial Claims (Briefing.com consensus 273,000) and July Trade Balance (consensus -$42.70 billion) will both be released at 8:30 ET and the day's data will be topped off with the 10:00 ET release of the ISM Services Index for August (consensus 58.4).

In U.S. corporate news of note:

eBay (EBAY 27.16, +0.29): +1.1% after Piper Jaffray upgraded the stock to 'Neutral' from 'Underweight.'

Five Below (FIVE 34.80, -3.21): -8.5% after disappointing guidance overshadowed in-line earnings.

Reviewing overnight developments:

Asian markets ended higher. Japan's Nikkei +0.5% while Hong Kong's Hang Seng and China's Shanghai Composite were both closed

In economic data:

Japan's August Nikkei Services PMI 53.7 (prior 51.2) India's August Nikkei Services PMI 51.8 (prior 50.8)

South Korea's Revised Q2 GDP +0.3% quarter-over-quarter (expected +0.3%; prior +0.3%); +2.2% year-over-year (expected +2.2%; prior +2.2%)

Australia's July Retail Sales -0.1% month-over-month (expected +0.4%; prior +0.6%), August AIG Services Index 55.6 (prior 54.1), and July Trade Balance -AUD2.46 bln (expected -AUD3.10 bln; prior -AUD3.05 bln) as Exports +2.0% month-over-month (prior +3.0%) while Imports 0.0% month-over-month (prior +4.0%)

In news:

The Bank of Japan does not see the need for additional monetary easing at this time, according to the Wall Street Journal

Major European indices trade higher across the board. Germany's DAX +1.6%, UK's FTSE +1.3%, and France's CAC +1.1%. Elsewhere, Italy's MIB +1.4% and Spain's IBEX +0.5%

Participants received several data points:

Eurozone August Services PMI 54.4 (expected 54.3; prior 54.3) while July Retail Sales +0.4% month-over-month (expected 0.6%; prior -0.2%); +2.7% year-over-year (consensus 2.0%; last 1.7%)

Germany's August Services PMI 54.9 (consensus 53.6; last 53.6)

UK's August Services PMI 55.6 (expected 57.6; last 57.4)

France's August Services PMI 50.6 (consensus 51.8; prior 51.8) while Q2 Unemployment Rate held at 10.3%

Italy's August Services PMI 54.6 (expected 53.0; prior 52.0)

Spain's August Services PMI 59.6 (consensus 59.6; last 59.7)

Among news of note:

The European Central Bank made no changes to its policy stance, keeping its interest rate corridor steady, as expected. The Marginal Lending Facility rate remains at 0.30%, the Main Refinancing Rate holds at 0.05%, and the Deposit Facility is at -0.20%