Stock futures are pointing to a higher open ahead of a slew of data on housing and consumer confidence. Tech stocks led yesterday’s sell-off and could be the main focus for investors today. Biotech led the downside and internet equities were also weak to begin the week. Sector rotation may become more defined in the near term as the market runs into all-time high challenges. Despite the downturn yesterday, investors are still not shying away from buying dips in stocks despite increased geopolitical and growth concerns.
Philly Fed hawk Plosser said Chair Yellen didn't make a mistake with her "6-months" comment and the Fed hasn't changed its position. In an interview, he said a lot of the reaction was reversed the next day and he sees bond purchases ending in Oct or Nov if the Fed sticks to its $10 B/month taper schedule. The CBOE Volatility Index (VIX) rose only slightly despite the overall weakness in stocks yesterday. The ‘Fear Gauge’ continues to hover between $14 and $16 with little catalysts to send it higher at this point.
Treasuries are up slightly with the 10-year note at 2.73%. We saw strength in long-term issues while the shorter duration treasuries were weak yesterday. Asian stocks trade flat-to-lower following strong gains yesterday and absent any major new catalysts. Ongoing concerns about the Ukraine crisis and the Chinese economy continue to affect sentiment. European stocks recover somewhat from sharp losses yesterday and despite the lackluster session in Asia. There seems to be little reaction to a mixed Business climate index reading in Germany. As expected, U.K. CPI has fallen further away from the Bank of England's 2% target, dropping to 1.7% on year in February from 1.9% in March.
Stock Stories:
Walgreens (WAG) –Mixed – The drugstore retailer posts quarterly results that met on top-line revenue but missed slightly on EPS. Strong prescription sales offset downbeat traffic due to weather and comparisons to last year’s results. The company also announced plans to close 76 stores in the 2ndhalf of FY14. The shares are off slightly in the pre-market after reaching all-time highs at the beginning of the month.
Major Economic Reports:
6:45 am CT – GS Store Sales – Down 1.5% for the week
8:00 am CT – S&P Case-Shiller HPI
9:00 am CT –Consumer Confidence
9:00 am CT – New Home Sales
9:00 am CT – Richmond Manufacturing Index
3:00 pm CT – FOMC Member Lockhart Speaks
6:00 pm CT – FOMC Member Plosser Speaks
Notable Earnings:
Before Market: CCL, MKC, WAG
After Market: None
Wednesday– 3/26: PAYX作者: 祥云 时间: 2014-3-25 11:27
