Morning Coffee Break - Monday April 1

In today's Morning Coffee Break we find as traders come to their trading systems after a 3 day weekend and the start of the second quarter have several milestones to build on from record closes on the Dow and S&P 500.  The S&P 500 and the NASDAQ are coming off their 5^th straight month of gains while the Dow closes out the first quarter of 2013 with its best gain since 1998.

U.S. equities futures this morning are mix as the U.S. traders digest economic setback in China’s manufacturing sector.  China’s official Manufacturing PMI only climbed to 50.9 for the month of March.  Although the March’s results were better than February’s 50.1, analysts’ expectations were for reading of 52.  HSBC China Manufacturing PMI also was lower with a reading of 51.6

The Euro Zone continues to put pressure on markets with Italy now taking front and center with more political issues this past weekend as President Napolitano said he might step down early to only retract his comments later in the day. If he was to step down it is likely to disrupt the next round of elections in Italy.

The Cyprus whirled wind continues with news reports point to Cyprus' President Anastasiades in-laws transferred out of the country 21 million euros just days before the melt down out of the country.

 

U.S. Economic Reports On Deck

As begin the new month and new quarter traders will get to look back and see how well the economy dis last month with Supply Management's Manufacturing Index and February’s Construction Spending Report.

Time	Economic Report	Forecast	Previous
9:00 am	Final Manufacturing PMI	55.0	54.9
10:00am	ISM Manufacturing PMI	54.2	54.2
10:00am	Construction Spending m/m	1.1%	-2.1%
10:00am	ISM Manufacturing Prices	60.1	61.5

 

 

Morning Coffee Break's Current Benchmarks

S&P 500 futures are slightly lower at 1562.84

EUR/USD ticked higher to 1.2810

U.S.10-year Treasury bond yields are at 1.881%

WTI Crude Oil is lower by -$0.67  or -0.69% to $96.56

Gold ticked higher by $3.90 or 0.24% to $1599.60

 

 

Commodities

Overnight Asia markets pushed commodity risk off sentiment in WTI Crude Oil and copper pushing prices lower by 0.69%/$96.56 and 1.25%/3.3595 respectively.  Precious metals are mixed on fears that China could be slowing rather than picking up.  Gold is higher by 0.24% while silver is lower by -0.95%

Equity only readers can gain exposure to WTI Crude Oil through the United States Oil Fund (USO, quote) ETF that seeks to reflect the performance, less expenses, of the spot price of West Texas Intermediate (WTI) light, sweet crude oil. The USO will invest in futures contracts for WTI light, sweet crude oil, other types of crude oil, heating oil, gasoline, natural gas and other petroleum based-fuels that are traded on exchanges. It may also invest in other oil interests such as cash-settled options on oil futures contracts, forward contracts for oil, and OTC transactions that are based on the price of oil.

Equity only readers gain exposure to the gold through the SPDR Gold Shares Trust (GLD, quote) ETF that seeks to replicate the performance, net of expenses, of the price of gold bullion. The GLD trust holds gold, and is expected to issue baskets in exchange for deposits of gold, and to distribute gold in connection with redemption of baskets. Readers can also access the gold market through the iShares COMEX Gold Trust (IAU, quote) ETF seeks to replicate, net of expenses, the day-to-day movement of the price of gold bullion.

Currencies Markets

Currency markets overnight are basically flat with the one exception of the Yen.  The Yen against the major pairs this morning has been strong but remember the Euro Zone and Australia markets are closed observing Easter Monday.  The Euro did bounce back a little against the U.S. dollar but remain under the 1.29 level at 1.2810– see currency map below or for a live currency price matrix checkout. ( please note the page loads a little slow due to all of the quote being pulled)

 

 

Morning Coffee Break Earnings Watch

As we begin the second quarter and earnings season just around the corner traders are faced with a very light earnings day with our stock to watch of egg producer Cal-Maine Foods (CALM, quote) scheduled to report before the bell.

 

 

Morning Coffee Break's Stock Pre-Market Stock Watch

Our screens popped with names with high volume this morning. Bank of America (BAC, quote) with 342,802, Tesla Motors (TSLA, quote) 223,688 and Black Berry (formally Research in Motion) (BBRY, quote) with  222,810

 

Morning Coffee Break' Bottom Line

With the Euro Zone markets closed and heavy hitting U.S. economic reports hitting this morning look for the U.S. headlines to be in control.  Remember we have not had significant pullback in this incredible bull market and record setting first quarter, we are still bullish on the U.S. equities but no market continues in a straight line.  Protection is cheap and may be warranted depending on individual market exposure.   Good luck trading and Happy April Fools Day....