U.S. equity futures are pointing to a weaker open as violence in the Ukraine continues to escalate and make investors around the world grow nervous. U.S. investors will be watching the battle overseas, but they will also keep an eye on the weekly jobless claims data and Janet Yellen's testimony before a Senate panel. Yesterday saw choppy markets and today could be more of the same. The CBOE Volatility Index (VIX) rose back above $14 again during Wednesday’s session. The S&P 500 benchmark Index (SPX) once again failed to hold the $1850 level. The resistance level is getting more significant as stocks have yet to hold this price on a closing basis.
Treasuries are higher, along with global bonds, in a general risk-off move. The 10-year yield is down to 2.64% and it could fall further if stocks continue to pull-back. Equities overseas are mostly lower with European Indices off over 1%. The catalyst for the safe haven rally comes from ongoing jitters about the Ukraine as Russia conducts military exercises in the Crimea, and as pro-Russian gunmen seized government buildings there and raised the Russian flag. Meanwhile, data showed a jump in Euro-zone ESI confidence, a drop in German jobless numbers, and a decline in German CPI. It's a busy day in the U.S. but the markets will refocus on Fed Chair Yellen today as she testifies before the Senate Banking Committee (was postponed from February 13). There will also be Fed-speak from Fisher, Lockhart, and George. Data on January durable goods orders and initial jobless claims will also be monitored closely. The Treasury will sell $29 B in 7-year notes at noon CT to complete the week's auctions.
Stock Stories:
Best Buy (BBY) –Noisy Report, like Miley – The electronics retailer posted a mixed earnings report this morning. The company beat on EPS but missed on the closely watched top-line revenue estimate. The retailer sees Q4 SSS down slightly but is reorganizing its business to simplify its overall structure. Investors are jumping on board as the shares are up over 5% ahead of the opening bell.
