US STOCKS: Late Equities Roundup: Continued Retreat
Aug-07 19:08
- Stocks continued to retreat from early morning highs, SPX eminis and Nasdaq indexes weathering the selling better than the DJIA late Thursday. Currently, the DJIA trades down 307.67 points (-0.7%) at 43885.41, S&P E-Minis down 25.25 points (-0.4%) at 6345.5, Nasdaq down 22.6 points (-0.1%) at 21147.16.
- Stocks had pared early session gains after Bloomberg reported that Fed Gov Waller "is emerging as a top candidate to serve as the central bank’s chair among President Donald Trump’s advisers as they look for a replacement for Jerome Powell, according to people familiar with the matter."
- While Waller (with Bowman) dissented against the last rate decision and opted to cut rates, his credibility as an insider candidate relative to Hassett is showing in this market reaction. As the piece notes: "Trump advisers are impressed with Waller’s willingness to move on policy based on forecasting, rather than current data, and his deep knowledge of the Fed system as a whole".
- Health Care, Financials, Communication Services and Industrials sectors continued to lead decliners: Fortinet -25.24% despite beating estimates (just not by enough apparently), Eli Lilly & Co -14.36% as it’s weight loss drug underperforms in trials. Elsewhere: Airbnb -9.10%, Ralph Lauren -6.88%, Warner Bros Discovery-6.68%, CF Industries Holdings -6.55%, Crowdstrike Holdings -6.27%, McKesson -5.52%, Gartner -5.31% and Autodesk -5.02%.
- On the positive side, IT, Utility, Consumer Staples and Energy sectors remained supportive in late trade: Becton Dickinson +7.99%, Zimmer Biomet Holdings +7.91%, APA Corp +7.59%, Insulet +6.72%, Enphase Energy +6.11%, Viatris +5.77%, Albemarle +5.26%, Advanced Micro Devices +5.08%, Atmos Energy +4.53% and Occidental Petroleum +4.08%.
- Companies expected to announce earnings after the close include: Sempra, TripAdvisor Inc, Take-Two Interactive Software, GoDaddy, Expedia Group, Akamai Technology, Live Nation Entertainment, Motorola Solutions, Pinterest, Twilio, Microchip Technology Inc, Rocket Lab, Wynn Resorts, Goodyear, Gilead Sciences, Monster Beverage and Block Inc.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
MNI: US MAY CONSUMER CREDIT +$5.1B
Jul-08 19:00
- MNI: US MAY CONSUMER CREDIT +$5.1B
- US MAY REVOLVING CREDIT -$3.5B
- US MAY NONREVOLVING CREDIT +$8.6B
EURJPY TECHS: Fresh Cycle High
Jul-08 19:00
- RES 4: 173..43 High Jul 12 ‘24
- RES 3: 172.92 High Jul 16 ‘24
- RES 2: 172.38 1.500 proj of the Feb 28 - Mar 18 - Apr 7 price swing
- RES 1: 172.00 High Jul 08
- PRICE: 171.85 @ 16:27 BST Jul 08
- SUP 1: 169.77 Low Jul 07
- SUP 2: 168.37 20-day EMA
- SUP 3: 167.13 Low Jun 20
- SUP 4: 166.04 50-day EMA
A bull cycle in EURJPY remains intact and the cross has again traded higher, today. Fresh cycle highs confirm a resumption of the uptrend and maintain the bullish price sequence of higher highs and higher lows. Note that moving average studies remain in a bull-mode position, highlighting a dominant medium-term uptrend. Sights are on 172.38 next, a Fibonacci projection. Support to watch lies at 168.37, the 20-day EMA.
US TSYS: Late SOFR/Treasury Option Roundup: Derivatives Two-Step
Jul-08 18:57
Two-way SOFR & Treasury option flow on moderate volumes reported Tuesday. Underlying futures remain under pressure amid ongoing tariff related headlines keeping risk tethered, curves steeper with the short end outperforming. Projected rate cut pricing largely steady vs late Monday (*) levels: Jul'25 steady at -1.2bp, Sep'25 steady at -17.3bp, Oct'25 steady at -31.7bp, Dec'25 at -48.6bp (-49.9bp).
- SOFR Options:
- +8,000 SFRM6 96.25/97.00 strangles 3.5 over SFRZ5 96.12 straddles
- +2,000 SFRZ5 96.00 calls, 24.0 vs. 96.13/0.64%
- -5,000 SFRQ5 95.68/96.06 strangles, 2.5
- -3,500 2QU5 96.50/96.87 strangles, 19.0 ref 96.67
- -10,000 0QU5 97.12/98.12 call spds, 5.5 ref 96.735
- +4,000 SFRU5 95.75/95.87 call spds, 6.5 ref 95.865
- +7,000 SFRZ5 95.62 puts, 1.0 vs. 96.165/0.07%
- +2,000 SFRZ5 96.56/96.81 call spds vs. 95.75/95.87 put spds, .25 net +c spd
- 3,000 SFRU5 95.62/95.75 put spds ref 95.86
- 8,900 SFRZ5 96.25/96.50 call spds, 6.0 ref 96.15
- +2,250 SFRZ5 95.50/96.00 put spds vs. 97.00/97.50 call spds, 8.0 net ref 96.155/0.38%
- Treasury Options:
- appr 12,000 TYQ5 110.5/111 strangles, 44
- 1,500 TYU5 111/112.5 call spds 28 ref 110-23.5
- Block, 10,000 FVQ5 109.25 calls, 3 ref 108-03.5
- 2,000 FVU5 110 calls, ref 108-04
- 2,000 TYQ5/TYU5 111.5 call spds, 21 ref 110-24.5
- 2,000 TYQ5 111.75/112.25 call spds, 7
- +15,000 TYU5 113 calls, 13
- 1,500 TYQ5 109/109.5/110.5 broken put flys, 17 ref 110-23.5
- Block, +10,000 FVQ5 109.25 calls, 3 ref 108-03.5 (laid off on screen)
- -3,000 TYQ5 110/112 call over risk reversals, 7
- -20,000 FVQ5 108 puts, 15 vs. 108-05.25/0.41%
- -1,700 TYU5 109 puts, 15
- +1,500 TYU5 109/110 put spds 2 over 113 calls ref 110-28
- over 4,000 TYV5 104 puts, ref 110-24.5
