Overnight Markets And News
Dec E-mini S&Ps (ESZ18 -0.34%) this morning are down -0.40% as weakness in technology stocks drags the overall market lower. Qualcomm and Microchip Technology are both down 4% in pre-market trading on concern about a slowdown in future sales. European stocks fell back from a 3-week high and are down -0.13% on weaker-than-expected German trade data after German Sep exports unexpectedly fell -0.8% m/m, the biggest decline in 7 months. Asian stocks settled mostly higher: Japan +1.82%, Hong Kong +0.31%, China -0.22%, Taiwan +0.37%, Australia +0.53%, Singapore +0.91%, South Korea +0.61%, India closed for holiday. Japan’s Nikkei Stock Index climbed to 2-week high as telecommunications and pharmaceutical companies rallied on speculation a split Congress may force President Trump to soften his hardline stance on trade. Chinese stocks closed lower despite stronger than expected China Oct trade data that showed China Oct exports jumped +15.6% y/y, the biggest increase in 8-months. The jump in exports is being attributed to Chinese companies rushing to make shipments before U.S. tariffs ae set to kick in.
The dollar index (DXY00 +0.23%) is up +0.31%. EUR/USD (^EURUSD -0.06%) is down -0.08%. USD/JPY (^USDJPY +0.12%) is up +0.12%.
Dec 10-year T-note prices (ZNZ18 -0-030) are down -3.5 ticks.
The China Oct trade balance was in surplus by $34.01 billion, narrower than expectations of +$35.15 billion. Oct exports rose +15.6% y/y, stronger than expectations of +11.7% y/y and the biggest increase in 8 months. Oct imports rose +21.4% y/y, stronger than expectations of +14.5% y/y.
The German Sep trade balance was in surplus +18.4 billion euros, narrower than expectations of +20.0 billion euros. Sep exports unexpectedly fell -0.8% m/m, weaker than expectations of +0.4% m/m and the biggest decline in 7 months. Sep imports fell -0.4% m/m, weaker than expectations of +0.8% m/m.
Japan Sep core machine orders plunged by a record -18.3% m/m (data from 1987), weaker than expectations of -9.0% m/m.
U.S. Stock Preview
Key U.S. news today includes: (1) weekly initial unemployment claims (expected -1,000 to 213,000, previous -2,000 to 214,000) and continuing claims (expected +3,000 to 1.634 million, previous -7,000 to 1.631 million), (2) 2-day FOMC meeting concludes (fed funds rate target range of 2.00%/2.25% expected unchanged).
Notable S&P 500 earnings reports today include: Disney (consensus $1.35), Johnson Controls (0.92), Cardinal Health (1.08), DR Horton (1.22), CenterPoint Energy (0.42), Discovery (0.61), NRG Energy (1.02).
