US equity futures are leaning towards a modestly higher open ahead of key employment numbers due prior to the opening bell. Economists are expecting to see 151,000 newly created jobs for the month of February and a sustained unemployment rate of 6.6%. Participation levels continue to deteriorate and will also be looked at very closely. The treacherous weather is widely expected to impact the results and may likely be blamed for any shortfalls. Recent mixed economic data has done little to deter the red-hot market as the S&P 500 recorded yet another all-time high of $1881 yesterday. U.S. Treasuries dropped to 2.73% in the same period following the better than expected weekly jobless claims which helped to fuel the equity rally another day. The Dollar Index (DXY) is showing some weakness ahead of the jobs report slipping to $79.493.
The showdown over Ukraine shows no signs of an eventual compromise even after reports that President Obama spoke directly with Russian President Vladimir Putin via telephone yesterday. Any shift in rhetoric will almost certainly create some knee-jerk reactions with traders trying to monitor ongoing risk. The close of the trading week may also spark some re-allocating to adjust portfolios over the weekend in light of the ongoing crisis.
Stock Stories:
Safeway (SWY) –Express Checkout? – The 2nd largest US based grocery store announces an acquisition deal with private equity firm Cerberus Capital for $9.4 Billion dollars. Shares are trading lower by 2% following the news of the buyout around $40 per share which may have been below share-holders expectations. Speculation has been circulating for several months of a potential suitor.
Major Economic Reports:
7:30 am CT – Monthly Unemployment Report
11:00 am CT – FOMC Member Dudley Speaks
2:00 pm CT – Consumer Credit
Notable Earnings:
Before Market: BIG, FL, HTZ, PPHM, VLP, WMC, MW, URBN
