Day Traders Diary

8/25/16

 U.S. equity futures trade on a modestly lower note with the S&P 500 futures floating two points below fair value. Index futures inched lower as investors eyed a negative bias in global bourses and favored a cautious approach ahead of commentary from Fed Chair Janet Yellen. Ms. Yellen will address other central bank officials at the Jackson Hole symposium tomorrow at 10:00 ET.

Asia-Pacific markets slipped overnight as participants ruminated over commentary from the People's Bank of China. The central bank sparked minor liquidity concerns when they urged lenders in China to spread out loan tenors, which would help reduce risks to short-term lending. Across the pond, Germany's DAX (-0.8%) underperforms after the release of a disappointing German Ifo Business Climate survey for August. The reading came in at 106.2 (expected 108.5), slipping from July's 108.3.

Treasuries trade on a higher note with the back end of the curve enjoying a modest bid. The yield on the 30-yr bond is lower by one basis point at 2.24%.

On the economic front, data will include weekly initial claims (Briefing.com consensus 265k) and Durable Goods Orders for July (Briefing.com consensus 3.5%), which will each cross the wires at 8:30 ET.

In U.S. corporate news of note:

Tiffany & Co (TIF 72.00, +3.13): +4.5% after beating bottom-line estimates for the quarter and reaffirming FY17 earnings and sales guidance

Signet Jewelers (SIG 83.48, -12.02): -12.6% following the company missing top- and bottom-line estimates for the quarter and guiding Q3 EPS estimates below consensus

Mylan Labs (MYL 44.40, +1.25): +2.9% after announcing initiatives to make access to the company's EpiPen device easier

HP (HPQ 13.35, -1.05): -7.3% following the company topping analysts' estimates for the quarter, but guiding Q4 EPS estimates below consensus

Reviewing overnight developments:

Asia-Pacific equity markets ended on a mostly lower note with China's Shanghai Composite (-0.6%) underperforming Japan's Nikkei (-0.3%) and Hong Kong's Hang Seng (UNCH). 

In economic data:

Japan's Corporate Services Price Index +0.4% year-over-year (consensus 0.1%; last 0.2%)

Hong Kong's July trade deficit narrowed to HKD33.30 billion from HKD45.60 billion

In news: 

The cautious posture was attributed to apprehension ahead of tomorrow's speech from Federal Reserve Chair Janet Yellen.

Ms. Yellen will speak before other central bank officials in Jackson Hole, Wyoming.

European indices trade lower across the board with Germany's DAX (-0.8%), France's CAC (-0.7%), and the U.K.'s FTSE (-0.2%). 

In economic data:

Germany's August Ifo Business Climate Index 106.2 (expected 108.5; last 108.3). August Current Assessment 112.8 (expected 114.9; previous 114.8) and August Business Expectations 100.1 (consensus 102.5; last 102.1)

UK's August CBI Distributive Trades Survey rose to 9 from -14 (expected -5)

France's Q3 Industrial Investments +6.0% (last 7.0%) and August Business Survey slipped to 101 from 103 (expected 103)

Spain's Q2 GDP +0.8% quarter-over-quarter (expected 0.7%; last 0.7%); +3.2% year-over-year, as expected (previous 3.2%). PPI -4.6% year-over-year (last -4.7%)

In news: 

Germany's DAX (-0.8%) leads the retreat after the release of a disappointing Ifo Business Climate survey for August (106.2; expected 108.5).

The euro has climbed 0.2% against the dollar to 1.1290 while the pound has ticked down 0.3% to 1.3190.