Michael P. Reinking, CFA
Sr. Market Strategist

Yesterday major US indices ended mixed with the S&P 500 closing essentially unchanged recouping early losses. After a couple of pretty boring sessions, it is a little bit busier from a macro perspective and earnings continue to pour in. Asian markets were mostly lower overnight with the exception of China/Hong Kong which were both up ~1% following much better-than-expected import data while exports also improved and speculation that the PBOC will step up policy support. European indices have been moving higher throughout the session with the Euro Stoxx 600 and DAX hitting new highs. There was no major economic data in the region, but the Bank of England left rates unchanged with two dissenters preferring a cut. US futures had been trading modestly lower overnight but are now a touch higher after this week’s initial jobless claims jumped to 231k from 209k last week, which is the first time >230k since August. This is the most recent data point suggesting the labor market is starting to moderate, (though we have seen multiple blips like this over the last year). In response Treasury yields reversed the overnight move higher, moved down ~3bps on the headlines. 2yr yields are now down 2bps to 4.82% while 30yr yields are up 2bps at 4.66%, ahead of this afternoon’s $25B 30yr auction. Yesterday’s 10yr auction tailed by 1bps.