Stock futures (/ES) are relatively flat in early trading. The market has been consolidating near its all-time highs for several days now, but it has had a few volatile swings. Yesterday the market opened sharply lower but closed higher as the Bulls quickly bought another dip in stocks. Little economic data is scheduled to be released today, but the earnings parade will continue today and for the rest of the week. Another deal was announced overnight as Germany’s Bayer is buying Merck’s consumer care unit for over $14 Billion. Organic growth has continued to stall for many major companies so they are using their cash and the low interest rate environment to prop up their growth. Option volatility has also stabilized at low levels as the CBOE ‘Fear Gauge’ sits near $13. The S&P 500 (SPX) once again failed just below all-time high levels, and looks to have resistance here for stocks on the upside.
Treasuries are a little lower this morning but are still at elevated in many market-watchers eyes. The 10-year yield is at 2.61% which is at the low end of its recent range under 3%. Many are expecting yields to rise into the end of the year but demand for U.S. debt is strong. The tone is modestly defensive in stocks. Global equities are mostly lower as earlier gains have faded. Stronger than expected Euro-zone and U.K. PMI services data, on the top of the improvement in the U.S. index yesterday, have weighed on bonds slightly. Data today includes March trade figures and weekly chain store sales. Retiring Fed Governor Stein speaks on the economy late this evening. But traders are looking ahead to Fed Chair Yellen's testimony tomorrow and Thursday.
Stock Stories:
American Intl. Group (AIG) – covered – The insurance giant posted better than expected quarterly results last night after the close. The company says its client retention remains high and they are cautious on their risk selection. Investors don’t feel as confident as the CEO as the shares are down 2.5% ahead of the opening bell.
Mosaic (MOS) – spreading – The chemical and fertilizer company reported earnings that fell significantly from last year during the same period. The Potash pricing situation severely affected the company’s bottom line but they see margins improving. The stock is down 2.5% in the pre-market.
Major Economic Reports:
6:45 am CT – GS Store Sales
7:30 am CT – International Trade
12:00 pm CT – 3-year Note Auction Results
5:15 pm CT – Fed’s Stein Speaks
Notable Earnings:
Tuesday 5/6:
Before Market: BCS, CBOE, CNK, DTV, EMR, FE, IFF, MSO, MOS, NUS, ODP, TM, VMC
After Market: AGU, ALL, DIS, FEYE, FSLR, FTR, GNC, GRPN, MRO, PZZA, PXD, TRIP, WFM, ZU
Wednesday – 5/7:
Before Market: AGN, AOL, ARIA, CHK, CTSH, DVN, EE, HTZ, HUM, TAP, MDLZ, VSI
After Market: NLY, CAR, CZR, CTL, GMCR, MDR, PRU, SCTY, TSCA, RIG, Z |
发表于 2014-5-6 08:59
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