Day Traders Diary

6/22/17

 Equity futures are rather subdued this morning following a spiritless performance from the S&P 500 on Wednesday. For the week, the benchmark index trades just a tick above its flat line (+0.1%), but it looks like that small advance may be squandered in the opening minutes of today's session. The S&P 500 futures trade one point below fair value.

Crude oil is looking for its first win of the week in early action, up 0.6% at $42.79/bbl, on the heels of a three-day swoon that placed the commodity near its lowest level since early August. The bearish sentiment has been fueled by concerns over excess supply and a deteriorating technical picture. Similarly, the energy sector has faced heavy selling pressure this week, dropping 3.5% thus far.

U.S. Treasuries trade relatively flat this morning with the benchmark 10-yr yield hovering at its unchanged mark (2.16%). The U.S. Dollar Index (97.22, 0.00) also hovers at its flat line.

On the data front, investors will receive Initial Claims (Briefing.com consensus 240,000) and the April FHFA Housing Price Index. The two reports will be released at 8:30 ET and 9:00 ET, respectively.

Also of note, the Senate will release its version of the healthcare bill later this morning at 9:30 ET. The bill is expected to repeal ACA taxes and reduce Medicaid spending slower than the House healthcare bill, however, long-term cuts to Medicaid will be larger.

In U.S. corporate news:

Oracle (ORCL 51.35, +5.02): +10.8% after reporting better than expected earnings/revenues and providing upbeat guidance.

Accenture (ACN 125.00, -2.11): -1.7% despite reporting in-line earnings and revenues.

Staples (SPLS 9.25, +0.59): +6.8% following a Reuters report that private equity firm Sycamore Partners is in advanced talks to acquire the company.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended Thursday on a mixed note, but overall activity was subdued, leaving most indices little changed. Japan's Nikkei -0.1%, Hong Kong's Hang Seng -0.1%, China's Shanghai Composite -0.3%, India's Sensex unch.

In economic data:

New Zealand's Credit Card Spending +7.6% year-over-year (last 6.5%) and Visitor Arrivals -3.0% month-over-month (last 3.8%). May Permanent/Long-Term Migration 5,900 (last 5,790)

In news:

The Chinese press quoted an adviser to the People's Bank of China, who said the central bank does not plan to unwind its balance sheet in the same fashion as the Federal Reserve.

The Reserve Bank of New Zealand left its key rate unchanged at 1.75%, as expected. The central bank's policy statement was perceived as somewhat hawkish by the market.

Major European indices trade on a lower note with Italy's MIB trailing its peers. Germany's DAX unch, France's CAC -0.3%, UK's FTSE -0.4%, Italy's MIB -0.6%.

In economic data:

UK's June CBI Industrial Trends Orders 16 (expected 7; last 9)

France's June Business Survey 108 (expected 109; last 109)

Swiss May trade surplus expanded to CHF3.40 billion from CHF1.96 billion (expected surplus of CHF2.44 billion)

In news:

The Norges Bank held its key rate steady at 0.50%, but the accompanying policy statement did not contain a reference to a potential rate cut later this year, signaling a hawkish shift.

The European Central Bank released its Economic Bulletin, which was in line with recent comments from ECB President Mario Draghi.