Day Traders Diary

7/21/16

 U.S. equity futures trade on a flat note as the S&P 500 futures trade within one point of fair value. Equity futures remain little changed after the European Central Bank announced that it would leave its interest rate corridor unchanged. The move is unsurprising after the Bank of England recently opted to put off altering its monetary policy stance. However, investors have maintained their wait-and-see posture ahead of ECB President Draghi's 8:30 ET press conference.

On the home front, quarterly earnings reports continue to pour in as positive quarterly results from Qualcomm (QCOM 60.65, +4.83) and Biogen (BIIB 276.00, +13.59) help Nasdaq futures outperform. For its part, WTI crude trades on a lower note, slipping 0.7% ($45.45/bbl; -$0.30).

The Treasury complex trades lower as the yield on the 10-yr note rises one basis point to 1.59%.

Today's economic data will include weekly initial claims (Briefing.com consensus 265k) and the July Philadelphia Fed Survey (Briefing.com consensus 5.0), which will both be released at 8:30 ET. Separately, the FHFA Housing Price Index for May will cross the wires at 9:00 ET. Finally, the day's data will be capped off with Existing Home Sales (Briefing.com consensus 5.50 million) for June and June Leading Indicators (Briefing.com consensus 0.3%), which will both be reported at 10:00 ET.

In U.S. corporate news of note:

Qualcomm (QCOM 60.65, +4.83): +8.7% after reporting top- and bottom-line results that came in above analysts' estimates

Relypsa (RLYP 31.95, +11.85): +59.0% following the company agreeing to be acquired by Galenica for $32 per share or approximately $1.53 billion

Intel (INTC 34.70,- 0.99): -2.8% as revenue results from its data center business and "internet of things" market disappoint

Joy Global (JOY 27.65, +4.10): +17.4% following the company agreeing to be acquired by Komatsu (KMTUY 19.27, 0.00) for $28.30 per share

Biogen (BIIB 276.00, +13.59): +5.2% after reporting above-consensus quarterly results and announcing a $5 billion share buyback

Reviewing overnight developments:

Asia-Pacific indices ended Thursday mostly higher with Japan's Nikkei +0.8%, Hong Kong's Hang Seng +0.5%, and China's Shanghai Composite +0.4%. 

In economic data:

Australia's NAB Quarterly Business Confidence slipped to 2 from 4

New Zealand's Credit Card Spending +4.1% year-over-year (last 6.0%) and Visitor Arrivals -1.0% month-over-month (last 0.0%)

Japan's Reuters Tankan Index held at 3 and All Industries Activity Index -1.0% month-over-month (expected -1.0%; last 0.8%)

In news:

Japan's Nikkei (+0.8%) outperformed amid continued speculation that there is monetary or fiscal stimulus in the pipeline.

Recent reports point to expectations for a fiscal package of JPY20 trillion.

This represents twice the amount that was expected after the July election.

On a related note, the BBC aired an interview with Bank of Japan Governor Haruhiko Kuroda, who stated that 'helicopter money' is not needed nor possible

The yen retreated overnight, but a recent spike pressured the dollar/yen pair into the 106.00 area.

Staying on the easing front, the Reserve Bank of New Zealand indicated that more easing is likely due to persistent strength in the New Zealand dollar.

European indices trade on a flat note with the U.K.'s FTSE -0.4%, France's CAC -0.3%, and Germany's DAX (UNCH). 

In economic data:

UK's June Retail Sales -0.9% month-over-month (expected -0.6%; last 0.9%); +4.3% year-over-year (consensus 5.0%; last 5.7%). June Core Retail Sales -0.9% month-over-month (consensus -0.6%; last 0.9%); +3.9% year-over-year (expected 4.8%; previous 5.2%). June Public Sector Net Borrowing GBP7.31 billion (expected GBP9.20 billion; last GBP9.41 billion)

France's July Business Survey ticked up to 103 from 102 (expected 101)

Swiss June trade surplus narrowed to CHF3.55 billion from CHF3.78 billion (expected surplus of CHF3.49 billion)

In news: 

The European Central Bank released its latest policy statement, leaving its interest corridor unchanged.

ECB President Mario Draghi will conduct his press conference at 8:30 ET.