Day Traders Diary

9/1/16

U.S. equity futures trade modestly higher with the S&P 500 futures floating three points above fair value. Futures hover above their flat lines as the group trades higher alongside European bourses. Market participants have largely shrugged off economic data from the region, which featured a disappointing reading of eurozone Manufacturing PMI for (51.7; expected 51.8) August. Conversely, the U.K.'s Manufacturing PMI (53.3; consensus 49.0; last 48.3) for August came in ahead of estimates. The positive data has boosted sterling, as the pound/dollar pair trades higher by 0.8% (1.3245).

Separately, Asia-Pacific indices ended the day on a mixed note after China's August Manufacturing PMI (50.4; expected 49.9; previous 49.9) surprised to the upside.

Treasuries trade on a mostly lower note with yields rising through the curve. The yield on the 10-yr note has risen one basis point to 1.59%.

On the economic front, August Challenger Job Cuts reported in at 32,200, which compares to the prior month's reading of 45,300. Weekly initial claims (Briefing.com consensus 265k) and the revised estimate for second quarter Productivity (Briefing.com consensus -0.6%) and Unit Labor Costs (Briefing.com consensus 2.1%) will each cross the wires at 8:30 ET. Construction Spending for July (Briefing.com consensus +0.6%) and the ISM Index for August (Briefing.com consensus 52.2) will each be released at 10:00 ET. Meanwhile, August Auto and Truck Sales data will be made available throughout tomorrow's session.

In U.S. corporate news of note:

Salesforce.com (CRM 74.40, -5.02): -6.3% after disappointing investors with its Q3 guidance, but beating bottom-line estimates for the quarter

Five Below (FIVE 42.25, -2.26): -5.1% following the company issuing below-consensus revenue guidance for Q3

Wynn Resorts (WYNN 93.75, +4.44): +5.0% after the Macau Gaming Inspection and Coordination Bureau reported positive August gaming growth 

Box (BOX 13.67, -0.07): -0.5% despite beating top- and bottom-line estimates for the quarter and raising its FY17 outlook

Reviewing overnight developments:

Asia-Pacific indices ended on a mixed note with Hong Kong's Hang Seng (+0.8%), Japan's Nikkei (+0.2%), and China's Shanghai Composite (-0.7%).

In economic data:

China's August Caixin Manufacturing PMI 50.0 (expected 50.1; last 50.6). August Manufacturing PMI 50.4 (expected 49.9; previous 49.9), and August Non-Manufacturing PMI 53.5 (last 53.9)

Japan's August Manufacturing PMI 49.5 (expected 49.6; last 49.6) and Q2 Capital Spending +3.1% year-over-year (consensus 5.6%; last 4.2%)

India's August Nikkei Markit Manufacturing PMI 52.6 (expected 52.0; last 51.8)

South Korea's August trade surplus narrowed to KRW5.30 billion from KRW7.60 billion. August Imports +0.1% year-over-year (expected -3.3%; last -13.6%) and Exports +2.6% year-over-year (consensus 0.6%; last -10.3%). August Nikkei Manufacturing PMI slipped to 48.6 from 50.1. August CPI +0.4% year-over-year (expected 0.8%; last 0.7%)

Australia's August AIG Manufacturing Index 46.9 (expected 56.4). July Retail Sales 0.0% month-over-month (expected 0.3%; last 0.1%), and Q2 Private New Capital Expenditure -5.4% quarter-over-quarter (expected -4.2%; last -5.2%)

In news:

Japan's Nikkei (+0.2%) outperformed amid yen weakness, which sent the dollar/yen pair higher by 0.3% to 103.70.

Comments from the weekend G-20 summit in Shanghai have begun seeping through.

The People's Bank of China Deputy Governor Yi Gang stated that policies discussed at the meeting are aimed at continuous growth.

He also said that countries have room to create a loose policy environment.

European indices trade higher with France's CAC (+1.1%), Germany's DAX (+0.5%), and the U.K.'s FTSE (+0.1%). Elsewhere, Spain's IBEX (+1.9%) shows relative strength.

In economic data:

Eurozone August Manufacturing PMI 51.7 (expected 51.8; last 51.8)

Germany's August Manufacturing PMI 53.6, as expected (last 53.6)

UK's August Manufacturing PMI 53.3 (consensus 49.0; last 48.3)

France's August Manufacturing PMI 48.3 (expected 48.5; previous 48.5)

Italy's August Manufacturing PMI 49.8 (consensus 51.1; last 51.2)

Spain's August Manufacturing PMI 51.0 (expected 50.9; previous 51.0)

Swiss August SVME PMI 51.0 (consensus 50.5; last 50.1) and July Retail Sales -2.2% year-over-year (consensus -3.1%; last -3.5%)

In news:

Market participants have shrugged off today's economic data, which featured a disappointing August Manufacturing PMI for the eurozone (51.7; expected 51.8).

The euro (1.1149) is little changed against the dollar.

UK August Manufacturing PMI (53.3; expected 49.9) comes in above-consensus.

The pound has jumped 0.8% against dollar (1.3245).