Thursday, 12 July 2018

Pre-Market Brief

Good morning. US equity futures are moderately higher, sp +13pts, we're set to open at 2787. USD is +0.2% in the DXY 94.70s. The precious metals are a seeing a weak bounce, Gold +$1, with Silver +0.3%. WTIC is +0.9% in the $70s.



*Subscriber server @, for no known reason, is currently offline. I'll likely just post here for the rest of today. I was actually looking to have Friday 13th as an 'open day'. so I guess I'll just make it today instead. 

Yesterday saw rather broad weakness, but we never hit even the basic technical necessity of the upper gap of sp'2768/59. We're clearly set to open moderately higher, and the gains could be expected to hold into at least 11am.

Frankly, having not even hit 2768, I am NOT inclined to chase higher. An intraday swing from the 2780s to 2760s isn't that difficult, but it will arguably need some kind of news to cross the wires into this afternoon.

*awaiting CPI data, which is especially important to those at Print Central.

Early movers

AAPL +0.6%, main market strength (mms)
ABBV +0.5%, bouncing after a rough Wed'
AMD +1.2%, mms

AVGO -9% around $222, acquiring 'CA Technologies' (CA) for $18.9B. So... they couldn't get QCOM, and instead make a play for CA.

BABA +1.4%, rebounding, with background 'softbank' chatter
BAC +0.7%, mms
CA +18.0% at $44.00, as AVGO bid.
CAT +1.2%, bouncing as the trade/tariff news fades
DB +0.2%, weak bounce

Earnings from Delta were fine. Rev' was $11.775bn vs 11.722 exp'. The underlying problem remains sustainably high WTIC/fuel prices. That issue isn't going away anytime soon.
FCX +3.0%, with copper +2cents to $2.76
GE +1.1%, contract to build Polish power plant/s
INTC +0.6%, mms
JPM +0.8%, earnings on Friday
LB -5.5%, reporting June sales +6%, but market is still not happy.
MRO +1.1%, with oil
MU +1.1%, underlying strength

NFLX -0.4%, as UBS downgrade from buy to neutral. However, Canaccord Genuity upgrade from 350 to 500.

NVDA +1.0%, underlying strength
RIG +0.6%, with oil
SQ +0.9%, underlying m/t super strong
TEVA +0.6%, mms
TSLA +1.3%, still broadly choppy
TVIX -3% with VIX -4% in the low 13s
TWTR +2.0%, underlying strength
UAL +1.1%, helped by DAL earnings
V +0.8%, having broken a new historic high yesterday, a wildly strong stock.
X +0.6%, mms

Overnight markets

After a rough Wednesday, the mood has swung rather positive...

Japan: +1.2% at 22187
China: +2.2% at 2837
Germany: currently +0.6% at 12493
UK: currently +0.9% at 7659

Have a good Thursday