Tuesday, September 5, 2017

Good morning—Global equities are mixed to start the session. The Euro Stoxx up 3 points, DAX up 60.5 points, and the FTSE down 4.5 points. Asian markets are quiet with the Nikkei unchanged and the Hang Seng down 11 points. North Korea’s potential plans to launch another ballistic missile sent US stock futures lower this morning. The DOW is down 55 points, S&P down 5 points, and the NASDAQ down 9.25 points. Treasuries are rallying amid the heightened tension from North Korea. The yield on the 10yr UST is down roughly 3bps to 2.142%. WTI crude is now above $48/bbl as Goldman sees demand rising in Harvey’s wake. In other news, United Technologies agreed to buy Rockwell Collins for $23 billion. Today’s economic data includes factory orders and durable goods orders in addition to hearing from some Fed speakers.