Stock futures are extending losses from last week as they are weak ahead of the open. Investors are preparing for the start of earnings season which unofficially starts tomorrow with the release of Alcoa’s (AA) quarterly results. Tech shares are once again leading the slide as they fell 2.6% during Friday’s session. Friday’s jobs data showed steady growth and the S&P 500 (SPX) hit another all-time high in the morning. Stocks took a sharp dive in the afternoon led some of the recent high-fliers. We actually saw only a modest rise in volatility Friday despite the equity slide. The CBOE Volatility Index was up 4% but should be higher today if stocks remain in negative territory. Sector rotation continues to be the story as Blue Chips are out-performing the battered tech and small cap sectors.
Treasuries are up only slightly this morning despite the downturn in stocks. The 10-year yield failed at the 2.8% level last week which could provide some resistance in the near-term. We will need confirmation of further ‘Risk-off’ trading with higher bond prices this week. Asian yields were mostly lower too, perhaps taking their cue from Friday's rally in Treasuries and European yields edged higher. Equities are lower, with Japan's Nikkei pacing the losses, off 1.6%. Geopolitical worries added to the downside momentum from Wall Street on Friday after pro-Russian protesters took over several administration buildings in the eastern portion of the Ukraine. There isn't a lot on today's U.S. calendar with just the TD Ameritrade Investor Movement Index (IMX) of note. Fed dove Bullard will speak on monetary policy at 10:45 CT. Headlining this week are the FOMC Minutes (Wednesday) and Treasury supply with $64 B in coupon sales beginning tomorrow.
Stock Stories:
Netflix (NFLX) – Streaming Reversal – The online streaming distributor has taken a hit recently and its stock is down 26% over the last month. The company got an analyst upgrade this morning based on the recent slide. We should see the bleeding stop or pause today despite the early weakness in equities.
Major Economic Reports:
10:45 am CT – Fed’s Bullard speaks
11:30 am CT – TD AMERITRADE IMX
2:00 pm CT – Consumer Credit
Notable Earnings:
Before Market: ZEP
After Market: NG
Tuesday – 4/8: AA, TCS, WDFC |
发表于 2014-4-7 08:33
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