Day Traders Diary


The U.S. equity market is on course for a slightly higher start to today's session, looking to extend its winning streak to five sessions. The S&P 500 futures are currently trading two points, or 0.1%, above fair value after the benchmark index finished Wednesday at its best level in three months and after both the Nasdaq and the Russell 2000 notched new record highs for the third day in a row.

U.S. Treasuries are flat to slightly higher this morning, with the yield on the benchmark 10-yr Treasury note unchanged at 2.98%, and the U.S. Dollar Index is down 0.2% at 93.39, hitting a three-week low. The dollar weakness has helped underpin crude futures, as have supply concerns in Venezuela, which is reportedly unable to fulfill contracts with major buyers amid an ongoing economic crisis. West Texas Intermediate crude futures are currently up 1.1% at $65.43 per barrel.

On the data front, investors will receive just two economic reports today, the weekly Initial Claims report ( consensus 225K) and the Consumer Credit report for April ( consensus $13.9 billion). The two reports will be released at 8:30 AM ET and 3:00 PM ET, respectively.

In U.S. corporate news:

  • Allergan (AGN 159.60, +4.22): +2.7% following news that billionaire investor Carl Icahn has built a small position in the drugmaker. 
  • J.M. Smucker (SJM 97.60, -8.92): -8.4% after missing earnings and revenue estimates and lowering its profit guidance.
  • Five Below (FIVE 95.01, +13.73): +16.9% after beating earnings and revenue estimates and raising its profit guidance.

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended Thursday on a mostly higher note. Japan's Nikkei +0.9%, Hong Kong's Hang Seng +0.8%, China's Shanghai Composite -0.2%, India's Sensex +0.8%.
    • In economic data:
      • China's FX Reserves $3.111 trillion (expected $3.120 trillion; last $3.125 trillion)
      • Japan's April Leading Index 105.6, as expected (last 104.4) and Coincident Indicator +1.7% month-over-month (last 0.2%). Weekly foreign investment in Japanese stocks -JPY527.60 billion (last -JPY380.00 billion)
      • Australia's May AIG Construction Index 54.0 (last 55.4). April trade surplus AUD977 million (expected AUD980 million; last AUD1.73 billion). April Imports 0.0% month-over-month (last 1.0%) and Exports -2.0% month-over-month (last 1.0%). April HIA New Home Sales -4.2% month-over-month (last -2.0%)
    • In news:
      • Chinese trade officials have reportedly offered to buy $70 billion worth of U.S. goods if President Trump decides to cancel tariffs on steel and aluminum imports.
      • Bank Indonesia Governor Perry Warjiyo said that while two emergency hikes in May helped stabilize the rupiah, more action could be needed.
  • Major European indices trade mostly higher, but Italy's MIB (-0.2%) lags. Germany's DAX +0.2%, UK's FTSE +0.2%, France's CAC +0.2%.
    • In economic data:
      • Eurozone Q1 GDP +0.4% quarter-over-quarter, as expected (last 0.4%); +2.5% year-over-year, as expected (last 2.5%)
      • UK's May Halifax House Price Index +1.5% month-over-month (expected 1.1%; last -3.1%); +1.9% year-over-year (expected 1.9%; last 2.2%)
      • Germany's April Factory Orders -2.5% month-over-month (expected 0.7%; last -1.1%)
      • France's April trade deficit EUR5.00 billion (expected deficit of EUR5.10 billion; last deficit of EUR5.00 billion)
      • Italy's April Retail Sales -0.7% month-over-month (expected 0.2%; last -0.2%); -4.6% year-over-year (last 3.0%)
      • Swiss May Unemployment Rate 2.6%, as expected (last 2.7%)
    • In news:
      • French President Emmanuel Macron met with Canadian Prime Minister Justin Trudeau in Ottawa ahead of the G7 summit. A joint statement released by the two leaders noted support for "a strong, responsible, transparent multilateralism to face global challenges."
      • There has been speculation about an impending resignation of the UK's Brexit minister David Davis. Mr. Davis has reportedly threatened to leave due to the removal of a firm Brexit date from the withdrawal bill.
      • Greece has reportedly decided to postpone a debt sale due to the recent jitters surrounding Italy.

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