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17Nov2015 Pre-Market Commentary: Futures Trending Higher, WTI Oil Remains Subdued Along With Paris Jitters, But China's Woes And An Oil Glut Remains In Focus

Written by Gary

U.S. stock future indexes are higher this morning and trending up after World opinion brushed off jitters related to Friday's terror attacks in Paris. Market mover, WTI crude oil, remains lower as some analysts to expect this commodity to move even lower which will place negative pressure on World markets. Markets are expected to open higher

Here is the current market situation from CNN Money

European markets are sharply higher today with shares in France leading the region. The CAC 40 is up 2.17% while Germany's DAX is up 1.92% and London's FTSE 100 is up 1.74%.

From Seeking Alpha

World shares surged on Tuesday as investors took heart from the rally on Wall Street and brushed off jitters related to Friday's terror attacks in Paris. "What we have learned is that there is not a meaningful market impact from such attacks," said Anastasia Amoroso, a global market strategist at JPMorgan. "So because we have this unfortunate precedent, that's why the market is looking past this." Equity selloffs that occurred after the Madrid train bombings in 2004 and London bombings of 2005 were erased only days following the attacks.

Two government reports this morning should provide an early indication of how the U.S. economy performed last month. The Labor Department's Consumer Price Index is anticipated to show a 0.2% increase, reversing September's 0.2% drop, but still tame in regards to inflation. Industrial production, tracked by the Federal Reserve, is expected to contain several mixed components, but will likely show an overall gain of 0.1% for October.

Crude oil - lower parallel in focus

On Friday we discussed the lower parallel and streak as being a reason for why we should expect a bounce to start the week. Well, we started the week with a bounce, but is it over? Unsure of that just yet. An ideal scenario from the standpoint of risk/reward is a bounce back into former support before establishing a short.

What Is Moving the Markets

Here are the headlines moving the markets.

Shrugging off Paris attacks, global shares and dollar rally

LONDON (Reuters) - Global shares gained convincingly on Tuesday, clawing back all the ground lost on the previous day as investors bet that Friday's attacks on Paris would have little lasting impact on the world economy.

Wal-Mart earnings beat expectations; shares up

(Reuters) - Wal-Mart Stores Inc reported stronger-than-expected quarterly earnings on Tuesday as it booked its fifth straight gain in U.S. same-store sales, sending its shares up nearly 3 percent.

Stock futures higher on Wal-Mart, Home Depot results

(Reuters) - U.S. stock index futures were higher on Tuesday after better-than-expected earnings from Dow components Wal-Mart and Home Depot following a sharp selloff in retail stocks last week.

Home Depot same-store sales beat estimates

(Reuters) - Home Depot Inc , the world's No. 1 home improvement retailer by revenue, reported a better-than-expected rise in quarterly same-store sales, helped by strong demand from both retail customers and professional contractors and builders.

Exclusive: After market crash, China mulls single 'super-regulator' - sources

SHANGHAI/BEIJING (Reuters) - China is considering bringing together its banking, insurance and securities regulators into a single super-commission, sources told Reuters, following the summer's stock market crash that was blamed in part on poor inter-agency coordination.

Brent oil eases as focus returns to global oversupply

LONDON (Reuters) - Oil prices eased on Tuesday, reversing the previous day's gains, as the risk premium stemming from the Paris attacks faded, and the focus returned to the global oversupply in crude and petroleum products.

VW's European car sales, market share slip after emissions scandal

MILAN (Reuters) - Volkswagen's European sales and market share slipped in October, industry data showed on Tuesday, as the German carmaker's emissions-cheating scandal began to take its toll at a time when the overall market continued to grow.

Top Hedge Funds Dump Stocks In Q3: Complete 13-F Summary

While the drama that takes place every three months on the 15th of each February, May, August, and November when hedge funds release their long equity holdings disclosures in quarterly 13F filings for the quarter that ended 45 days earlier, is vastly overblown (simply because current holding periods for most speculators are far shorter), 13-F statements do provide a useful glimpse into the state of mind of some of the smartest people in the room.

And, as Bloomberg summarizes, the just concluded 13-F bonanza, "some of the world’s top hedge fund managers scaled back their U.S. stock investments last quarter as markets tumbled."

This follows our report from last week that Ray Dalio's Bridgewater has unloaded some 31% of its US equity holdings in Q3, mostly those facing Latin American exposure.

Back to Bloomberg:

The value of Stan Druckenmiller’s disclosed U.S. equity holdings dropped 41 percent to $868 million, according to a filing from the billionaire’s family office. The listed holdings at Louis Bacon’s Moore Capital Management fell 39 percent to $1.65 billion, while at David Tepper’s Appaloosa Management, they dropped 30 percent to $2.82 billion.

One thing to note: Druckenmiller kept, and even levered up his investment in gold, converting his equity exposure in GLD into call options of the same underlying.

Some of the most closely watched money managers are retreating from U.S. stocks after the market has more than tripled from its 2008 low. D ...

Frontrunning: November 17

France, Russia strike Islamic State in Syria, EU aid invoked (Reuters)

Pressure Grows for Global Response Against Islamic State After Paris Attacks (WSJ)

Weakened Hollande Faces Election Backlash in Wake of Attacks (BBG)

French Official Calls for Metal Detectors at Train Stations (NYT)

Belgium Raises Terror Threat Level, Cancels Soccer Game vs Spain (BBG)

Foreign Companies Scrap Paris Events After Terror Attacks (BBG)

US states halt taking Syrian refugees (BBC)

British Official Warns of Cyberattacks by Jihadi Terrorists (NYT)

Brussels District of Molenbeek Is Home to Some Suspects in Paris Attacks (WSJ)

After market crash, China mulls single 'super-regulator' (Reuters)

Copper Tumbles to Six-Year Low as Industrial Metals Extend Slump (

Global Stocks Soar As Dollar Spot Index Hits Record High; Oil Declines

The kneejerk shock from this weekend's Paris terrorism, which briefly pushed S&P futures below 2000, is now a distant memory, and has been replaced with another breathless, violent rally for the second day in a row, which has seen global stocks surge after yesterday's lackluster performance before the S&P500 soared in afternoon trading, and this morning US equity futures launched another push higher the moment Europe opened for trading, just like a day earlier, begging the question just which central bank is pushing this scramble to buy ES futures.

As a result the E-mini is now about 10 points higher driven mostly by the ongoing collapse in the EUR and the the all-important for the carry trade, Japanese Yen, as well as a continuation of the dollar rally, whose Bloomberg Dollar Spot Index just touched a new record high on continued speculation the US economy is strong enough to weather a rate hike in one month even as corporate revenues and earnings continue to plunge.

Bottom line: Who would have thought terrorism is so good for stocks.

Here is where we currently stand:

S&P 500 futures up 0.4% to 2056

Stoxx 600 up 2.1% to 378

MSCI Asia Pacific up 1.1% to 132

Nikkei 225 up 1.2% to 19631

Hang Seng up 1.2% to 22264

Shanghai Composite down less than 0.1% to 3605

US 10-yr yield up less than 1bp to 2.27%

Dollar Index up 0.09% to 99.53

WTI Crude futures down less than 0.1% to $41.70

Brent Futures up 0.6% to $44.83

Gold spot down 0.2% to $1,080

Silver spot up less than 0.1% to $14.27

Perhaps no other place captures the overnight surge better than France, where the CAC40 was up well over 2% at last check. The STOXX Europe 600 gained for a second day, rising the most in almost four weeks.


Global Stocks Rise

Global stocks rallied Tuesday as geopolitical worries prompted by Friday’s terror attacks in Paris left investors hoping for more stimulus from the European Central Bank.

Buffett Bolts From Herd in Bet on Big Blue

Berkshire Hathaway bought more shares of International Business Machines in the third quarter, taking advantage of the stock’s slide.

Investors Are Starting to Buy into Oil Companies

Investors remain downbeat on oil, but some are starting to buy the companies that pump it out of the ground.

A Delicate Balance In Beijing


-- this post authored by Rodger Baker

In China, a fear of social instability has long constrained government efforts toward economic and structural reform. After three decades of nearly unrestrained and uncoordinated growth, China's leaders are now facing a moment in which change is no longer simply desirable; it is a necessity. The global economic system is rebalancing, economic power is becoming more diffuse, and China's export- and investment-driven economy has, as its regional predecessors, largely run its course.

This is the one thing that could put a halt to Thanksgiving Day store openings

Consumers say they dislike it when stores open on Thanksgiving, but they continue to show up for the deals.

Need to Know: Stop blaming battered retailers for holding back this market

The world’s biggest clothing retailer is delivering its earnings this morning, just a few days after traders beat up sadsack retailers. But whether they’re disappointments or winners, don’t blame them too much.

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