U.S. equities are lower this morning on concerns of corporate growth slowing. Although Global markets are moving towards six year highs today, U.S. equity futures are indicating a downturn. Little economic data is expected to be released today, and investors are focused more on the fourth quarter earnings season which will begin in earnest this week. There are 25 S&P 500 companies preparing their quarterly results this week, 17 of which are from the financial sector. The CBOE Volatility Index (VIX) fell almost 6% on Friday as stocks traded slightly higher on relatively low volumes. Option premium on the downside continues to slide as traders sell out of the money puts as they expect stocks to rebound. We should expect some added volatility today if stocks remain in negative territory throughout the session. One major investment bank is calling for a potential pull-back in equities so we will look to see how that plays out into January expiration this Friday.
Investors may take their cue from the Treasury market, as bonds yields posted their biggest daily loss since October following the weak monthly jobs report last Friday. Bonds and Notes are mixed this morning and the 10-year yield is now near 2.86%. Asian shares trade mixed and European equities are higher. The disappointing U.S. jobs report on Friday is one factor affecting sentiment, as it may mean that the Fed will taper more slowly. Investor focus will be on the financials starting tomorrow with quarterly results due from JP Morgan Chase and Wells Fargo.
Stock Stories:
Lululemon (LULU) – No Yoga Pants! – The athletic apparel-maker announced its cutting guidance this morning for Q4. The company has seen traffic deteriorate rapidly in January after an in-line holiday sales season. Management believes its new leadership will build on its strong foundation. Despite the optimism, shares are off 8% ahead of the opening bell.
Beam Inc. (BEAM) – Cheers! – The alcohol giant is to be acquired by overseas beverage company Suntory for $83.50 a share. The transaction consideration represents a 25% premium to Beam’s closing price of $66.97 on Friday.
Major Economic Reports:
11:40 am CT – Fed’s Lockhart Speaks
1:00 pm CT – Treasury Budget
Notable Earnings:
Before Market: XRTX
After Market: DRWI
Tuesday – 1/14: JPM, WFC |
发表于 2014-1-13 09:19
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