U.S. equity futures are suggesting that the market will rise slightly following yesterday’s sell-off. The market fell further yesterday after the Fed confirmed that it would reduce its bond purchases by another $10B per month. After a month into the New Year, investors worldwide are facing the reality of an end to the Fed's bond buying program, following years of unprecedented monetary stimulus boosting financial markets. The benchmark S&P 500 Index (SPX) is now down 4.1% from its all-time highs reached just two weeks ago. The CBOE Volatility Index (VIX) rose sharply again yesterday but is still relatively low considering all of the new negative sentiment. We would have expected the ‘Fear Gauge’ to rise above $20 with the sharp downturn in equities. The $1775 level is a key support point in the SPX and another failure to settle above this mark could spark a move to the $1750-1755 level in the near-term.
A little profit taking weighed on Treasuries overnight after yesterday's big risk-off gains that left longer dated bonds at their best levels since mid-November. The yield on the 10-year note is up to 2.70% with heavy volumes. Equities were weaker after China's HSBC PMI dropped to 49.5, which is in contraction territory for the first time in 6 months to add to growth worries and knock Asian stocks sharply lower. Also Japan retail sales slowed to a 2.6% pace last month from 4.1% previously. However, German jobless numbers and Euro-zone ESI confidence were better than expected. The markets remain anxious over emerging markets and that could support bonds and the risk-off trade for now. There's a lot of data today including Advance Q4 GDP, pending home sales, and jobless claims. We should see a decent GDP number which may signal a relief rally today.
Stock Stories:
Target (TGT) – Pay up – The retailer could face Payment Card Industry fines related to the credit card data breach in the range of $400M-$1.1B. Along with lost sales and customer goodwill from the incident, the company could see more pain in its stock price. The shares are down slightly ahead of the opening bell.
United Parcel Service (UPS) – Delivered! – The global delivery company beat quarterly estimates on the top and bottom lines. The company stated a strong December resulted in increased revenue despite the weather-related delays into Christmas. The stock is trading lightly in the pre-market but the company is guiding slightly lower than expectations going forward.
Major Economic Reports:
7:30 am CT– Weekly Jobless Claims
7:30 am CT– Gross Domestic Product (GDP)
9:00 am CT – Pending Home Sales
9:30 am CT – Natural Gas Inventories
Notable Earnings:
Before Market: ADT, BLL, BMS, BTU, BZH, CAH, CELG, CL, CMS, COP, DOV, HGG, HOG, HP, HSY, KMT, LLL, LLY, MAN, MD, MMM, MO, NOC, OXY, PBI, POT, RGLD, RTN, TEN, TKR, TMO, TWC, UA, UPS
After Market: ABAX, AMZN, BRCM, CB, CLS, CMG, CSC, ELX, GOOG, JDSU, N, PMCS, RHI, RVBD, TUES, VR, WYNN
Friday – 1/31: CNX, CVX, D, MA, MAT, TSN, TYC, WY |
发表于 2014-1-30 10:22
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