U.S. equity futures are up slightly ahead of the opening bell. Yesterday saw an incredible rally in stocks after the Ukraine tensions eased as Russia pulled their troops from the Crimea region. Option Volatility fell sharply as the risk-on trade was back in favor. The CBOE Volatility Index (VIX) sits at $14 again and should remain muted into Friday’s jobs report. The small-caps led the rally yesterday and doubled the percentage rise in the benchmark S&P 500 Index (SPX). This sector typically leads markets but it looks over-extended at all-time highs.
Treasuries are slightly lower after amid further declines in bonds overseas as Ukraine tensions have eased. The Treasury 10-year yield is fractionally higher, hovering in the 2.7% area, having ranged from 2.60% to 2.70% this week. Equities are mixed with Asian markets, excluding China, mostly higher and European bourses modestly lower. Overnight data showed a surprise rebound in Euro-zone retail sales, an upward revision to the Eurozone composite PMI, and a weaker than expected U.K. services PMI. Chinese shares were rattled by the prospect of the first ever corporate bond default. Traders will now turn attention to employment data with the upcoming February ADP release, followed on Friday with the nonfarm payroll report. Other important data today comes from the ISM services report for February, along with the services PMI. The MBA just reported a 9.4% rebound in mortgage applications. Also on the calendar today is the Fed's Beige Book which could potentially rattle markets.
Stock Stories:
Apple (AAPL) –New phone? – The tech product-maker is expected to announce plans for the iPhone 6 later this year. New products from the iWatch to iTV are also believed to be in the works. The stock is slightly higher today but has under-performed the overall market recently.
Major Economic Reports:
6:00 am CT – MBA Purchase Applications – up 9% for the week
