Early Bird Update

00:016- Equity Commentary

The Nikkei 225 is off .52% to 9530. Bloomberg attributes the drop to Investor Sentiment:

‘“Investor sentiment is a bit twitchy,” said Shane Oliver, Sydney-based head of investment strategy at AMP Capital Investors Ltd., which manages $85 billion. “The U.S. data was a bit poor. This week we’ve had a couple of good days and investors may be looking to take profits.”

The CSI is up 2.00% or 65 points to 3,288.52. The ASX 200 is down 13 points to 4686.60.

In the U.S. GE reports before the opening bell on the NYSE: “Analysts project a second straight quarter of higher profit after eight periods in which it declined or was little changed. Adjusted earnings may be 27 cents a share on sales of $37.4 billion, the average of estimates in a Bloomberg survey.”

SPX, Dow, and Nasdaq Futures are flat. 5 and 10 Year Treasury futures are up 0.05% as of writing.

00:05- Commodity Commentary

Energy- Nat Gas is currently positive by $0.0001, up on light volume. November CL contracts have followed the dollar for most of the session. Losses were paired from 82.53. November contracts are up at $82.75/barell.

Precious Metals- Silver has led the rally and is up 1.47% or $0.36 to 24.795. I see $25.00 on Silver before $1400 on Gold. Gold is positive on the session up $3.60 to 1381.30.

Grains- Wheat and Corn continue to rally as we have a global shortage. In addition corn may be benefiting from E15 legislation now in place. Though, bullish activity is in order until the next USDA report reports accurate Supply numbers. The always important yield/acreage ratios remain on the low side when measured against previous estimates. Wheat is up .82% and Corn is up .93% on the session. Additionally, Soybeans continue to extend gains, advancing by 1.20%.

00:00- FX Comentary

EUR/USD- the pair traded down as low as 1.4009 at 20:15. The pair then traded up to 1.4049 and faced resistance at 1.4050. The 'Sovereign Default Trade' seems to have found support in the 1.4025-1.4035 range. Currently we are long at 1.40387.

Cable trade - The pound traded down to 1.5985 at 20:30 and has since traded up around 1.6005. The pair sits at 1.5997 at present time.

U.S. Dollar Index- The DXY gained traction and is trading up to 76.88.

U. S. Trading

CPI , Empire State, and Retail Sales come in at 08:30.  I expect 'robust' retail sales data to bolster equities.  Additionally,  expect a weaker USD tomorrow with stronger Commodities.  Good morning and good luck.

-Patrick M. Ambrus

Sources: Bloomberg.com, Stockcharts.com, The Gartman Letter, Financial Times