A shutdown looms: Here’s a super-quick guide to what traders are talking about right now

Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York

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Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York
source
Thomson Reuters

Dave Lutz, head of ETFs at JonesTrading, has an overview of today’s markets.

Here’s Lutz:

Good morning, and Happy Friday!! All the talking heads focused on a potential US government shutdown, but spoos don’t care, with futures marked up 30bp – Tech acting well in pre-market. Gains in AMD, INTC, NVDA, AAPL and NFLX offsetting a 3% hit to Big Blue as the QQQs climb 50bp. Strong session in Germany, where the DAX is up 1% – Autos ripping again, up 10% in 2018 on average – Tech climbing 1%, and those Banks are staging a rally. FTSE move more muted, climbing 25bp – Oil Majors offsetting a pop in Miners, while Consumer names shrugging off weaker Christmas sales – Sea of Green in Asia – TOPIX up 70bp as Industrials and Real Estate rallied – Hang Seng up 40bp as gains in IT offset drops in the fins – Shanghai up 40bp to 2Y highs – KOSPI added small, while Aussie off 15bp as miners dropped

All eyes on that Treasury market, where the 10YY kissed 2.64% overnight before retreating, threatening Gundlach’s “Red Line” and causing angst across that crowded Bond trade. 10Y breaks are off small, but those TIPs remain in heavy demand – “Dollar near 3-year lows on government shutdown fears” – Euro testing Dec’14 highs as German PPI comes in better – A$ thru 80c – Sterling is shrugging off Weaker UK Retail Sales. The Weaker Dollar helping that Yellow Metal, with Gold adding 50bp early, and it was a green overnight for metals, with Ore up 1.2%, while Rebar added 1.7% in China. Industrial metals Stateside are following suit, with Zinc up 1.8%, Platinum 1.2% and Copper 90bp. Only weakness to be found is in Energy, where WTI and Brent are retreating from 3Y highs

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