9:21 (Dow Jones) Some "trend quality" indicators have produced longer-term " get ready to buy" signals, according to Miller Tabak chief technical market analyst Phil Roth . He said the percentage of NYSE stocks above their 200-day moving average has climbed to 23% from a oversold level of 7% on Aug. 8 . Also, the NYSE new high-new low index is at 13%, climbing back above a key 10% threshold after falling to 2% earlier in the month. "The 'get ready to buy' signals become 'buy' signals if after a rally and a correction, the indicators hold above their previous lows and the market starts up again," Roth said. DJIA futures up 121. (tomi.kilgore@dowjones.com)
9:20 [Dow Jones] The Treasury market is defying strength in global stocks. Bond prices just hit session highs, boosted by month-end buying by fund managers in response to adjustments from benchmark indices. Such buying was already up late Tuesday but the bulk -- buying newly-minted Treasurys to replace maturing bonds -- typically happens during the last trading session of a month. The benchmark 10-year note is recently 9/32 higher to yield 2.144%. (min.zeng@ dowjones.com)
9:13 (Dow Jones) Disappointing Canadian GDP figures will likely only add to recent stock-market volatility by reinforcing investor concerns that economic growth in Canada and elsewhere in the developed world is slowing, signalling less demand for Canada's commodities and other exports. Canadian economy shrank unexpectedly in 2Q, with annualized GDP down 0.4%, the first decline in two years. That said, the TMX main index will likely gain some support today from CIBC's (CM) strong 3Q results and dividend increase, the first by the bank in four years. (ben.dummett@dowjones.com)
9:09 (Dow Jones) Goldman Sachs expects demand for metal to remain "fairly healthy," driven by emerging markets, and says the recent pullback in metals and mining stocks has created a "particularly attractive entry point for select names." Firm remains bullish on copper fundamentals and recommends that investors continue to buy Freeport-McMoRan (FCX). Although not as bullish on aluminum, Goldman raises Century Aluminum (CENX) to neutral from sell on valuation and recommends Alcoa (AA) as de-linking of aluminum prices and AA's aerospace exposure could act as strong earnings drivers over coming years. CENX gains 2% premarket; FCX up 1.9%, AA up 1.4%. (ian.thomson@dowjones.com)
9:03 (Dow Jones) CAD retraces its loss, with USD/CAD now down about 0.2% on day as the pair is seen reacting more to month-end flows, rather than the fact that Canadian GDP shown shrinking the first time in 2 years. "We expect GDP to bounce back in the third quarter, as much of the slowdown came on temporary factors," says Matt Perrier at BMO Capital Markets . Greenback at C$0.9763 after touching a high of C$0.9788 right after GDP data. (satish.sarangarajan@ dowjones.com)
8:55 (Dow Jones) Poor yields for Advanced Micro Devices' (AMD) new Llano processors is capping the chip maker's upside and leading to shortages, Evercore says. Firm notes issues add risk to 3Q guidance given unit, average selling price and gross margin impact. Also sees potential implications for new chips expected in 1Q. Adds while new products "offer compelling value within a window of opportunity, we view disappointing yields, handicapped volumes, and reeling global demand as equalizing factors." (shara.tibken@dowjones.com)
8:54 (Dow Jones) Nomura economists aren't hopeful about Friday's much-watched US non-farm payrolls report. The firm's rates strategy team says a downside surprise could drag 10-year yields back down toward 2%. "We continue to believe the bond provides value given the considerable downside potential of Friday's NFP number," they said. After showing little reaction to the mediocre ADP jobs data this morning, Treasury prices have ticked up steadily. Benchmark 10-year notes up 6/32 in price to yield 2.151%; 30-year bonds up 7/32 to yield 3.501%. ( cynthia.lin@dowjones.com)
8:51 (Dow Jones) The Swiss franc is back in the spotlight as the currency market's biggest mover Wednesday. Moves against euro, dollar pick up speed after Swiss government announces much smaller-than-expected economic package of CHF870 million . Analysts say in the absence of concrete moves by the SNB to weaken the currency, the market is interpreting it as a green light to buy it. Dollar, euro both down nearly 2% on the day against the franc. (javier.david@dowjones.com)
8:42 (Dow Jones) The ADP report showed 91,000 private sector jobs created in August, a bit less than expected, but not terrible. Most Treasury maturities were modestly higher going into the data and stayed there after the report. 10- year notes up 2/32 to yield 2.165%, while 30-year bonds held as the lone laggard, down 3/32 to yield 3.518%. The increased expectations of Fed stimulus also increases concerns about inflation down the line. (cynthia.lin@ dowjones.com)
8:35 (Dow Jones) US stock futures add to early gains after ADP private-sector hiring report shows 91,000 jobs added in August, not great but certainly not awful. Figure suggests August's market volatility and investor worry over debt crises in Europe and US may've had only modest impact on US hiring. Given factors like US credit downgrade and weak stock market, "it very much could have been worse," writes BTIG. Dow futures up 97; S&P futures up 12. (brendan.conway@ dowjones.com)
8:31 (Dow Jones) Crude oil pares its losses somewhat after ADP's jobs data. Traders have been closely following economic signals from the world's biggest oil consumer, and sights remain trained on Friday's nonfarm payrolls report. ADP says 91,000 private-sector jobs were created in August. Front-month crude on the Nymex is down 74c to $88.16 /bbl, falling as low as $87.67 earlier.(dan.strumpf@ dowjones.com)
8:25 (Dow Jones) Joy Global (JOYG) couldn't be clearer about the growing gap between still-booming commodity markets and the myriad signs of economic slowdown. The US mining-equipment group points to the restocking of copper and coal supplies in China , while India's coal imports are starting to rival those of China . With mining output and demand in broad balance and lengthening project lead times, the Milwaukee -based company also sees no signs of nervousness among producers that are continuing to boost capex. JOYG shares up 3.7% at $85.60 in pre-open trade. (doug.cameron@dowjones.com)
(END) Dow Jones Newswires
08-31-11 0921ET
Copyright (c) 2011 Dow Jones & Company, Inc.
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