Will be on CNBC today live at NYSE at 3:30 pm
Minor drawdown in US futures with Europe down a larger 1% with Banks yet again the source of stress, as Banco Santander, ING, Unicredit, Banco Bilbao all down more than 4%, and yet again, Italian and Spanish shares leading lower while Yen hitting new 3 week highs vs USD as JGB yields very close to turning positive after lowest Bid/Cover auction results since February and the steepest 4 day increase since May 2013- Many will be watching JGBs carefully for signs of potentially leading other yields higher, and this am seeing a second straight day of Global bond selling in response, with German bund yields up to -.034, TNX up to 1.55. US Dollar down .31 as GBP, AUD and Yen higher by .75% or more while Crude has rebounded back up above 40 and Gold inching higher again, up 0.60%. Yesterday's Total Put/call ratio spiked to 1.35 as there seemed to be a rush to hedge, while Equity Put/call inching up to .70 but nowhere near extremes ..
Japanese BOND YIELDS above spiking the most in 4 days since May 2013- Other Global yields following suit
Equity indices largely still range-bound based on S&P while NASDAQ comp nearing last year's highs while both Mid-Cap and Bloomberg index showing much better strength. Sector-wise, yesterday's move in BIOTECH helping Healthcare engineer a huge turnaround after returning the worst performance in Q1 and now the 2nd best to Tech over last 1 and 3 months. Energy getting oversold near-term.. but still no meaningful proof of lows in Crude..But some definite mean reversion in Discretionary v Staples, Tech, Healthcare which are all seen as near-term positives in an environment where many are wondering if the trend is starting to give way- with S&P. Holding above 2152 keeps the trend intact in Futures, 2159 in SPX cash with movement up to 2180-5 more likely in the short run- Early gainers in SODA, PG, CGNX, PSTI, WMB, ATW, while on the downside-THC, BRX, FTR, ALLT, IDTI, TXRH with PFE fractionally negative despite beats in Revs,Earnings-
USDJPY- Down under 102, and addtl near-term weakness down to 101, 100.50 likely
European Banks rolling over, led by Spanish, Italian Banks. Will have to be watched carefully as a retest attempt looks to be underway