News Driver: (8:40am) North American markets set to open higher today with the release of positive jobs data. The ADP private sector added 205,000 jobs.
Oil is trading higher this morning +2.2% on the back of the API data released last night printing a better than expected number of a 3.837M build vs the forecast of 4.800M barrels. Better than expected as the number was less than forecast signalling a small drop in supply (small victories:)
S&P Futures down +0.4%
Nasdaq Futures down +0.2%
Dow Futures down +0.3%
Today’s action is a WEAK FORM RISK ON leaning to the strong side if the Nasdaq can start to out-perform. (higher risk assets being bought defensive assets under-perform or are being sold)
News Driver: North American markets set to open lower again today. Oil continues to be driving the markets with WTI currently down (-4%). Overseas earnings misses from major Oil player BP and UBS also shook the confidence of the markets.
S&P Futures down –0.8%
Nasdaq Futures down –0.8%
Dow Futures down –0.8%
Today’s action is a WEAK FORM RISK OFF (higher risk assets being sold defensive assets out-perform). Emerging markets closing in mixed leaning risk-off. Eurozone in the red with the DAX -1.4% and Euro Stoxx 50 -1.8%
We entered the day with a weak form risk off tone as discussed in the Morning Huddle. Oil remained weak throughout the day closing down 6.8%. North American markets gapped down at the open but slowly grinded higher throughout the day. Closing above the 1928-1921 watch out point but still just below the 1950 resistance structure.
News Driver: North American markets set to open lower to start February. Sentiment shifts after weak Chinese manufacturing data led the Chinese CSI 300 down over 1.5% and weak Oil futures down 3.6% (as I write this).
S&P Futures down 0.7%
Nasdaq Futures down 0.5%
Dow Futures down 0.7%
Into today’s open look to see a weak form RISK OFF tone to equities globally. BOJ Kuroda’s surprise interest rate cut created a small rally Friday but the reality of China’s problems and slowing global growth can’t be fixed with Japanese stimulus.