‘Futures are under pretty good pressure:’ Here’s what traders are talking about right now (SPY, SPX, DJI, IXIC)

Wikimedia Commons

Dave Lutz, head of Exchange Traded Funds at JonesTrading, has a quick guide to what traders are talking about on Thursday.

In brief:

• US stock futures are deep in the red after a soft start to earnings season. European stocks are also getting smoked, with every sector of Germany’s DAX index lower.
• Energy commodities are weaker after data from the American Petroleum Institute showed a large build in inventories on Tuesday. The Energy Information Administration will release its numbers at 11 a.m. ET.

Here’s Lutz:

Good Morning! US Futures are under pretty good pressure, with the S&P off 50bp as Weak Chinese trade data, Escalation around Yemen, Fed Hawkishness and the start of earnings season weighs. It’s a Sea of red in Europe, with the DAX off 1.4% with every sector in the red as the Financials get smoked across the continent for 2.5% and Staples and Discretionary under pressure on Unilever/Tesco headers. The UK faring a bit better, off 70bp despite the Miners hit on downgrades. Asian stocks fell to three-week lows after China’s trade data showed a sharp decline in exports – Hang Seng lost 1.6% as Airlines were hit on Cathay #s – Nikkei fell 40bp – India was whacked for 1.7% in broad selling – Aussie dropped 70bp as the Miners and Banks fell, while Thailand rebounded 40bp from the week’s drubbing.

Some haven buying has the 10YY back under the 200dma, while that DXY is reversing from 7month highs as the Euro rebounds from 10week lows and the Yen reverses from 104 – but that Pound is struggling to get above 1.22 as “Marmitegate” weighs. China data weighs on Base metals like Zinc, Nickel and Copper as Steel/Ore retreats from 5week highs overnight. Gold is showing some life, along with Silver adding 50bp. The Entire Energy Complex is in the red as API data last night showed a big build, while some of the Softs are trying to rebound from the WASDE data yesterday.

Ahead of us today, we get Weekly Jobless Claims and the Import Price Index at 8:30. 10:30 brings Natty Gas Inventory data – while 11am brings the delayed DOE data for Crude (last night’s API showed an overall build of 2.7MM, well above the 400k build the street thought). At 12:15 Fed’s Harker 9neutral, Non-Voter) Speaks on Economic Outlook in Philadelphia – Just ahead of the US treasury Reopening auction of $12B 30-Year Bonds. Focus overnight will be on Chinese Inflation Data, along with the Kickoff of Big Bank Reporting with C, JPM and WFC all pre-open Friday.