Day Traders Diary

2/14/17

Equity markets are taking a breather after setting yet another record high yesterday and ahead of Fed Chair Janet Yellen's testimony on Capital Hill today. The S&P 500 futures trade one point above fair value.

Ms. Yellen will be delivering her semiannual monetary policy report to the Senate Banking Committee today at 10:00 am ET. Investors will be tuned in, looking for indications regarding the timing of the next rate hike from the FOMC.

U.S. Treasuries face modest selling pressure ahead of Fed Chair Yellen's report. The benchmark 10-yr yield is up one basis point at 2.44%.

Crude oil has added 0.9% this morning to recoup some of Monday's loss. The energy component remains within a familiar range as investors continue to weigh production cuts from major global producers against an uptick in U.S. production. WTI crude trades at $53.39/bbl.

Tuesday's lone economic report, January PPI (Briefing.com consensus 0.3%), will cross the wires at 8:30 am ET.

In U.S. corporate news:

General Motors (GM 37.26, +1.74): +4.9% after reports indicate that Peugeot might purchase Vauxhall and Opel brands from GM.

T-Mobile US (TMUS 61.00, +0.10): +0.2% after beating top and bottom line estimates.

Hibbett Sports (HIBB 29.80, -3.45): -10.4% after issuing light FY18 guidance and announcing that it sees fourth quarter results below estimates.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended the day on a mostly lower note with Japan's Nikkei showing relative weakness. Japan's Nikkei -1.1%, Hong Kong's Hang Seng unch, China's Shanghai Composite unch, India's Sensex unch.

In economic data:

China's January CPI +1.0% month-over-month (expected 0.7%; last 0.2%); +2.5% year-over-year (consensus 2.4%; previous 2.1%). January PPI +6.9% year-over-year (expected 6.3%; last 5.5%). New Loans CNY2.03 trillion (expected CNY2.44 trillion; last CNY1.04 trillion)

Japan's December Industrial Production +0.7% month-over-month (expected 0.5%; previous 0.5%) and Capacity Utilization +0.6% month-over-month (last 3.0%)

Australia's January NAB Business Confidence 10 (last 6). January NAB Business Survey 16 (last 11)

New Zealand's FPI +2.8% month-over-month (last -0.8%)

India's January WPI +5.25% (expected 3.89%; last 3.39%)

In news:

Inflation data from China was a bit hotter than expected while the Reserve Bank of Australia could be readying for a rate hike, according to UBS.

Major European indices trade near their flat lines while Italy's MIB outperforms. Germany's DAX unch, UK's FTSE +0.1%, France's CAC +0.1%, Italy's MIB +0.4%.

In economic data:

Eurozone Q4 GDP +0.4% quarter-over-quarter (expected 0.5%; last 0.5%); +1.7% year-over-year (consensus 1.8%; previous 1.8%). December Industrial Production -1.6% month-over-month (expected -1.5%; last 1.5%); +2.0% year-over-year (consensus 1.7%; last 3.2%). ZEW Economic Sentiment 17.1 (expected 22.3; last 23.2)

Germany's February ZEW Economic Sentiment 10.4 (expected 15.0; last 16.6) and ZEW Current Conditions 76.4 (expected 77.2; last 77.3). Q4 GDP +0.4% quarter-over-quarter (expected 0.5%; last 0.1%); +1.2% year-over-year (consensus 1.7%; last 1.5%). January CPI -0.6% month-over-month, as expected (last -0.6%); +1.9% year-over-year, as expected (last 1.9%).

UK's January CPI -0.5% month-over-month, as expected (last 0.5%); +1.8% year-over-year (consensus 1.9%; last 1.6%). January Core CPI +1.6% year-over-year (expected 1.8%; last 1.6%). Input PPI +1.7% month-over-month (expected 1.0%; last 2.7%) and Output PPI +0.6% month-over-month (expected 0.3%; last 0.2%). House Price Index +7.2% year-over-year (expected 6.9%; last 6.1%)

Italy's Q4 GDP +0.2% quarter-over-quarter, as expected (last 0.3%); +1.1% year-over-year (consensus 1.0%; last 1.1%)

In news:

Greek Finance Minister Euclid Tsakalotos said he hopes that political agreement on all issues around the Greek bailout will be reached in time for Monday's Eurogroup meeting.

Separately, Greek government spokesman Dimitris Tzanakopoulos said that there is no justification for new austerity measures.