US Indices on Tuesday's close: SPX: (-0.15%), NDX: (-0.96%), Dow: (+0.21%) and RUT: (-0.14%)
Industrials, Materials, Real Estate,Health Care, Energy, Utilities and Consumer Staples were relatively strong. Communication Services, Information Technology, Consumer Discretionary and Financials were weak.
AAPL is doing ok in afterhours despite its lower quarterly revenue and profit and guidance. The lack of spill is providing the rest of FAANG with some post-market stability.
ES futures profile showed a creep higher in expectations of earnings in the last 15 minutes of trade and is higher again in the eth session that will begin again at 18:00 ET.
February gold settled up at 1308.85 or (+0.5%) and the gold ETF GLD (+0.56%) had another positive day. CLH19 light crude is at 53.18/bbl or (+2.39%) post settlement up today as CAT stopped its free fall and the industrials rebounded a bit.
Market Internals
NYSE A-D lines: +368. NYSE breadth:+1.53:1 and NASD breadth: -2.25:1. NYSE cumulative TICK: Weak but above the neutral line for most of the session, showing an apex at around 14:00 and dwindling into the close. TRIN: .85. NYSE Closing Auction:+345M imbalance at the reveal at 15:45 leading to +15Mjust after the close. Strong NASD buy-side I think. SPX volume: 2.149B. SPX composite volume:-7.50%. NYSE composite volume: -1.42% and NYSE total volume: -6.25%. Implied Volatility: VIX: 19.13 or +1.38%, VXG19: 18.85 or -1.44% and VXH19: 18.85 or-1.44%.
Debt Treasuries were purchased today and a moderately received $32B 7-year note auction helped that positive action: High yield: 2.625% (issued at 2.622%) (vs a 12 auction average of 2.863%). Bid-to-Cover: 2.54 (vs 2.52), Indirect Bid: 58.3% (vs 63.6%) and Direct Bid: 29.4% (vs 14.1%).
The 2-year (- 1 bp to 2.57%) to 10-year (- 3 bps to 2.71%) spread is now at 15 bps and the 2-year to 30-year (-2 bps to 3.04%) difference has come in to 47 bps.
Incoming Tomorrow we have MBA Mortgage Applications Index at 07:00, ADP Employment Data at 08:15 ET, Pending Home Sales at 08:30 ET and EIA Crude Inventories at 10:30 ET. More importantly we have the FOMC statement at 14:00 ET and press conference at 14:30 ET/03:30 AWST/ 06:30 AET.
News Comment: Liu He and his team landed in the US yesterday and preliminary communications to do with the US unsealing an indictment against the Huawei which alleges all manner of wrongdoing including theft of trade secrets. That might be used as leverage ahead of this week's trade talks. On the US side, there must at least be one nervous person scurrying behind the team with mini terminal in hand and alarms set at various SPX levels, imploring them all not to bash the index while it's under 2700. Carefully parsed words are also being prepared by Fed members for tomorrow’s FOMC press conference. More on the CBO's report of the effects of the government shutdown on the US economy can be seen here. Hope you all have a very good day.
(20min delay)
