Day Traders Diary

8/24/17

The U.S. equity market is on track to open Thursday's session slightly higher following yesterday's modest decline. The S&P 500 futures currently trade three points, or 0.1%, above fair value.

Top central bankers will kick off a three-day meeting is Jackson Hole, Wyoming today, the climax of which will be Friday speeches from Federal Reserve Chair Janet Yellen and European Central Bank President Mario Draghi. The market will watch the speeches closely, but doesn't expect to receive much new information.

U.S. Treasuries are trading lower this morning, with the 10-yr yield climbing one basis point to 2.19%, while the U.S. Dollar Index (93.21, +0.06) is higher by 0.1%.

On the data front, investors will receive two pieces of economic data--the weekly Initial Claims Report (Briefing.com consensus 237K) and July Existing Home Sales (Briefing.com consensus 5.56 million). The two reports will be released at 8:30 ET and 10:00 ET, respectively.

In U.S. corporate news:

• HP (HPQ 18.40, -0.46): -2.4% after reporting better than expected earnings and revenues.
• Dollar Tree (DLTR 80.95, +6.63): +8.9% after reporting above-consensus earnings and raising its earnings guidance. 
• JM Smucker (SJM 114.20, -4.65): -3.9% after missing both top and bottom line estimates and lowering its earnings guidance.
• Burlington Stores (BURL 90.51, +5.56): +6.6% after beating bottom-line estimates and providing upbeat guidance. 
• Guess? (GES 14.06, +1.58): +12.7% after reporting better than expected earnings and revenues.

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended Thursday on a mixed note, but once again, the overnight session was relatively quiet. Japan's Nikkei -0.4%, Hong Kong's Hang Seng +0.4%, China's Shanghai Composite -0.5%, India's Sensex +0.1%.
  • In economic data:
    • Japan's Leading Index 105.9 (expected 106.3; last 106.3)
    • New Zealand's July trade deficit narrowed to NZD3.21 billion from NZD3.65 billion (expected deficit of NZD3.51 billion). July Exports totaled NZD4.63 billion (expected NZD4.42 billion; last NZD4.70 billion) and July Imports totaled NZD4.55 billion (expected NZD4.60 billion; last NZD4.45 billion)
    • Hong Kong's July trade deficit narrowed to HDK29.60 billion from HKD48.30 billion. July Exports +7.3% month-over-month (last 11.1%) and July Imports +5.5% month-over-month (last 10.4%)
  • In news:
    • China's Premier Li Keqiang said his country will continue reducing leverage at state-owned enterprises by facilitating the reduction of corporate debt.
    • China's Ministry of Commerce said that the U.S. probe against China sabotages the international trade system and that China will use necessary ways to defend legitimate right.

• Major European indices trade in the green with Italy's MIB outperforming after a couple days of relative weakness. France's CAC +0.3%, Germany's DAX +0.4%, UK's FTSE +0.6%, Italy's MIB +1.2%.
  • In economic data:
    • UK's Q2 GDP +0.3% quarter-over-quarter, as expected (last 0.3%); +1.7% year-over-year, as expected (last 1.7%). Q2 Business Investment 0.0% quarter-over-quarter (expected 0.4%; last 0.6%); 0.0% year-over-year (consensus 0.5%; last 0.7%). August CBI Distributive Trades Survey -10 (expected 15; last 22)
    • France's August Business Survey 111 (expected 108; last 108) and Q3 Industrial Investments +7.0% (last 6.0%)
    • Spain's Q2 GDP +0.9% quarter-over-quarter, as expected (last 0.9%); +3.1% year-over-year, as expected (last 3.1%)
    • Swiss Q2 Industrial Orders 2.8% (last -4.2%)
  • In news:
    • The euro trades little changed against the dollar as the paralyzed market awaits the latest from European Central Bank President Mario Draghi, who will speak tomorrow at 15:00 ET at Kansas City Fed's Economic Symposium in Jackson Hole.