Overnight price action was again subdued as volume remains anemic. It seems like a case of most traders and investors afraid to sell after the numerous squeezes we’ve seen in the past month and a half. Because we’re having a hard time figuring out who’s actively buying stocks in an excited fashion.
More broadly negative data points overnight, particularly with regards to Europe. Priceline’s poor Q3 guidance has the stock indicated down 15%, with business results affected by the weak macro environment in Europe according to the CEO. This was a $34 billion market cap company as of last night’s close, not chump change on a 15% move.
- German industrial production came in slightly weaker than expected, and the Bank of England cut their GDP outlook for the U.K. After Asia ended mixed, Europe has had a red session from the start.
- SPX futures have been in a tight range of 1392 to 1397 on light volume
- The dollar and Treasury bonds are broadly higher today, with the dollar reversing midday yesterday, showing relative strength vs. the Treasury market (which ended down more than 1%)
- Peripheral Spanish and Italian 10 year yields reversed higher yesterday midday, and Spanish 10 year yield is at 6.85% this morning
- Commodities are broadly lower, with the exception of natural gas, up 0.5%
- Light day on economic data, Ralph Lauren and Macy’s report before the open