[BRIEFING.COM] Equity indices have erased their opening losses with the S&P 500 returning right above its flat line while the Nasdaq Composite (+0.2%) shows some slight relative strength. The tech-heavy index has benefitted from strength in biotechnology with the iShares Nasdaq Biotechnology ETF (IBB 310.68, +2.23) now up 0.7%. Also of note, the top-weighted technology sector (+0.1%) has ticked into the green, providing added support to the Nasdaq Composite. 9:40 am: [BRIEFING.COM] The major averages have spent the first few minutes near their flat lines with the S&P 500 (-0.2%) showing a slight loss at this juncture while the Nasdaq (-0.1%) has just slipped into the red after showing a slight gain at the start. Only three sectors sport early gains with consumer discretionary (+0.1%), consumer staples (+0.2%), and utilities (+0.5%) trading ahead of the broader market while energy (-0.5%), materials (-0.8%), and health care (-0.2%) underperform. Notably, the health care sector has struggled in the early going even though biotechnology has held up well with the iShares Nasdaq Biotechnology ETF (IBB 309.08, +0.63) trading higher by 0.2%. 9:08 am: [BRIEFING.COM] S&P futures vs fair value: -0.20. Nasdaq futures vs fair value: +9.40. The stock market is on track for a flat open as S&P 500 futures trade within a point of fair value after spending the night in a narrow range. In all likelihood, the range-bound action will continue throughout the trading day considering many participants are away from their trading desks for Columbus Day. To little surprise, the pre-market session has been very quiet, but it is worth noting that EMC (EMC 28.63, +0.77) has agreed to be acquired by Dell for $67 billion in cash and stock after rumors of an impending deal surfaced last week. Elsewhere, Eli Lilly (LLY 77.04, -9.10) is on track to open lower by 10.6% after terminating the development of a cholesterol drug. Investors will not receive any economic data today and the bond market is closed, which leaves the 10-yr yield locked at 2.09% for the day. 8:53 am: [BRIEFING.COM] S&P futures vs fair value: -0.90. Nasdaq futures vs fair value: +7.30. The S&P 500 futures trade within a point of fair value. Most markets in the Asia-Pacific region started the week on a winning note, none more so than China's Shanghai Composite (+3.3%), which was bolstered by reports highlighting efforts to expand bank lending and to curb high frequency trading, as well as some upbeat commentary on the economy and the stock market's standing from a deputy PBOC governor. Australia (-0.9%) and India (-0.7%), which fell prone to profit taking, were the notable laggards in the region. Japan was closed for a holiday. - Investors did not receive any economic data
------ - Japan's Nikkei: closed for holiday (Health Sports Day)
- Hong Kong's Hang Seng increased 1.2% and closed near its highs for the day. The Hang Seng followed a bullish lead set by the mainland market. Gains were led by Lenovo Group (+7.7%), China Unicom Hong Kong (+5.5%), and China Resources Enterprise (+4.1%). On the flip side, Sands China (-3.4%), Galaxy Entertainment Group (-2.9%), and Cheung Kong Property Holdings (-1.8%) were the biggest losers. Out of the 50 index members, 40 ended higher, 8 finished lower, and 2 were unchanged.
- China's Shanghai Composite ended up 3.3% after gaining 4.3% earlier in its session. The strong outing was driven primarily by enthusiasm over a plan by the PBOC to expand a pilot bank lending program, which is currently running in two provinces, to nine other provinces, including Shanghai and Beijing. There were separate reports highlighting efforts to curb high frequency trading and a deputy PBOC governor's view that the economy is holding up well in the face of the stock market correction that he thinks is almost over. Over the last three sessions, the Shanghai Composite has risen 8.2%.
Major European indices trade in mixed fashion with UK's FTSE (-0.7%) trailing its peers. Elsewhere, European officials have begun looking at the possibility of recalling more than $2 billion in loans granted by the European Investment Bank to Volkswagen. - Economic data was limited:
- France's August Current Account swung from a deficit of EUR400 million to a surplus of EUR200 million.
------ - UK's FTSE is lower by 0.7% amid losses in most components. Financials are among the laggards with Standard Chartered and Lloyds Banking Group both down near 1.4%. On the upside, Randgold Resources is higher by 1.6% and International Consolidated Airlines has climbed 0.7%.
- In France, the CAC trades down 0.4% with industrials under pressure. Airbus Group and Safran lead the decline with respective losses of 2.5% and 4.3%. Automakers outperform with Peugeot higher by 1.3% and Renault trading up 2.7%.
- Germany's DAX is higher by 0.2%. Utilities outperform with RWE up 12.0% and E.On trading higher by 6.8%. The two names have benefitted from a ruling that allows the companies to lift the demolition costs for decommissioned nuclear plants. Health care names underperform with Bayer and Fresenius SE both down near 1.2%.
8:25 am: [BRIEFING.COM] S&P futures vs fair value: -0.40. Nasdaq futures vs fair value: +5.50. U.S. equity futures remain near their flat lines as the quiet pre-market action continues. Similar to equity futures, the Dollar Index (94.75, -0.07) is little changed after spending the night inside a narrow range. The greenback has taken a small (-0.1%) step back against the euro (1.1369) and the yen (120.13) while the British pound has climbed 0.3% against the dollar to 1.5365. 7:55 am: [BRIEFING.COM] S&P futures vs fair value: +0.30. Nasdaq futures vs fair value: +2.60. U.S. equity futures trade little changed to follow a range-bound overnight affair. The lack of volatility is not entirely surprising considering many participants are expected to forego today's session in light of Columbus Day. Meanwhile, the bond market will be closed altogether. There is no economic data on today's schedule. In U.S. corporate news of note: - EMC (EMC 29.27, +1.41): +5.1% after agreeing to be acquired by Dell for $67 billion in cash and stock.
- Goldman Sachs (GS 181.19, +2.00): +1.1% after Citigroup upgraded the stock to 'Buy' from 'Neutral.'
Reviewing overnight developments: - Asian markets ended mostly higher. China's Shanghai Composite +3.3%, Hong Kong's Hang Seng +1.2%, and Japan's Nikkei was closed for Health-Sports Day.
- There was no economic data
- In news:
- Bank of Japan Governor Haruhiko Kuroda spoke in Lima over the weekend, stressing the positive outcomes of the easing policy undertaken by the BoJ. Overall, Mr. Kuroda's remarks did not hint at more easing in the near term.
- Major European indices trade in mixed fashion. UK's FTSE -0.6%, France's CAC -0.5%, and Germany's DAX +0.1%. Elsewhere, Italy's MIB -0.4% and Spain's IBEX -0.2%.
- Economic data was limited:
- France's August Current Account swung from a deficit of EUR400 million to a surplus of EUR200 million
- In news:
- European officials have begun looking at the possibility of recalling more than $2 billion in loans granted by the European Investment Bank to Volkswagen
5:50 am: [BRIEFING.COM] S&P futures vs fair value: -0.30. Nasdaq futures vs fair value: -2.80. 5:50 am: [BRIEFING.COM] Nikkei...Holiday......... Hang Seng...22730.93...+272.10...+1.20%. 5:50 am: [BRIEFING.COM] FTSE...6383.40...-32.80...-0.50%. DAX...10112.64...+16.00...+0.20%.
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