Thursday, 5 May 2016

Pre-Market Brief

Good morning. US equity futures are moderately higher, sp +9pts, we're set to open at 2060. USD continues to claw higher, +0.3% in the DXY 93.40s. Metals are rebounding, Gold +$2, with Silver +1.0%. Oil is powerfully higher, +3.8% in the $45s.



So, we're set to open in yesterday's gap zone of 2063/60. Further upside much beyond 2070 looks unlikely.

Equity bears should be aiming for a flat close, with a break lower tomorrow, at least into the 2030s.

early movers....

TSLA +4% @ $231, post earnings
CHK +7.... junk rebounding
FCX +3% .. as above
SDRL +5%   ""

Overnight action

China: +0.2% @ 2997
Germany: currently +0.1% @ 9838.

Have a good Thursday

8.44am jobless claims, 274k.... a little higher... but still.... remaining very low. Those calling for an outright recession are going to need to see 350/400k.

re: Friday monthly jobs. Market is seeking net gains of 200k.. with a headline rate a touch lower @ 4.9%.  That does not seem overly optimistic... and will likely be attained.

notable weakness:  DB, -2.0%... as financials continue to remain under pressure as threat of Draghi lowering rates again.

Its somewhat ironic that at least the market seems to accept that low/negative rates are bad for the financials.. the very sector that almost took down the system in 2008.