U.S. equities are slightly higher as the first full week of trading of the New Year gets underway. The market drifted last week, as many market participants extended their holidays while many others suffered through the...
poor winter weather. The market lost roughly 0.9% of its value last week and hopes to return to its winning ways. Valuations on stocks are getting extended, but a positive earnings season could continue the Bull Run we’ve had. Volatility fell last Friday despite the downturn in stocks into the close. The CBOE Volatility Index (VIX) fell over 3% and traded inversely from equity moves for most of last week. Typically when stocks are lower, the VIX will rise and vice-versa. Last week when stocks were up the VIX actually rose. We should see the ‘Fear Gauge’ return to some normalcy this week as many participants will be back and volumes should expand. Treasuries are slightly higher this morning. The 10-year Treasury yield is back below 3% and should remain there if bonds continue to strengthen today. Trading overseas was mixed but Asia fell led by Japan’s Nikkei tumbling over 2% and the Shanghai down over 1.5%. Weak PMI data in China led the downturn to start off the week. European equities have rebounded and are mildly positive at this point. It's a busy week that includes key data (especially Dec nonfarm payrolls on Friday), FOMC minutes, Fed-speak, and Fed Treasury purchases. Today's slate is headlined by TD Ameritrade’s Investor Movement Index ($IMX) and the December ISM non-manufacturing report, along with November factory orders. Analysts forecasting a rebound in the index and we should see investor sentiment remain positive as stocks hit all-time highs in December. Also the Senate will vote on Janet Yellen's Fed Chairmanship. This week will also see many traders return from the Holidays so we should see a sizable boost in volumes and perhaps volatility.
Stock Stories: Twitter (TWTR) – Tweet this! – The social media company gets another downgrade this morning on extended valuations. The company has received numerous downgrades recently but the shares continue to trade at elevated levels. The shares are down 2.5% ahead of the opening bell. JP Morgan Chase (JPM) –Legally Bound – U.S. prosecutors and regulators are expected to announce this week that the banking giant will pay over $2B in penalties for alleged failures to warn about Bernard L. Madoff's massive fraud. Shares are flat to slightly higher in the pre-market this morning.
Major Economic Reports:
9:00 am CT– Factory Orders
9:00 pm CT– ISM Non-Mfg. Index
11:30 am CT– TD Ameritrade IMX
Notable Earnings: Before Market: ZEP
After Market: None
Tuesday – 1/7: APOL, HIS, MU
发表于 2014-1-6 10:31
| 
发表于 2014-1-6 14:32
| 
