U.S. equity futures are trading just below unchanged after the market’s strong two day advance. The Beige Book showed improved to modest growth across the country yesterday but was not considered a home run report by any means. A surprise sales drop reported by Best Buy (BBY) this morning reiterates the fact that the consumer is pulling in spending. Volatility was relatively flat yesterday despite the rise in stocks. The CBOE Volatility Index (VIX) continues to firm up whenever it reaches the $12 level and this week is no different. We are not sure if this level continues to hold but option protection is cheap to the downside on a historical basis.
Treasuries followed overseas markets higher after disappointing Australian jobs data and modest Euro-zone inflation. There was also stronger wording on forward guidance in the ECB's monthly report. Asian stocks are mixed amid what appears to be an absence of any major catalyst. It's a busy day in the U.S. with December CPI, the Philly Fed index, initial jobless claims, the NAHB homebuilding sentiment reading, and November Treasury capital flows. Fed Chairman Bernanke will also speak on The Fed yesterday, today, and tomorrow, at the Brookings Institute. He will be joined by SF's Williams, and others.
Stock Stories:
Best Buy (BBY) – The stock is NOT a Best Buy – The electronics retailer guides lower for its holiday sales season. The company took the path of lowering prices to keep its market share, which hurt quarterly revenue. The stock is taking a beating ahead of the opening bell as its lower by over 25%.
Goldman Sachs (GS) – Squid wins – The investment giant posts blow-out quarterly results beating on the top and bottom lines. The shares are up slightly in the pre-market but have had a decent run up recently.
Major Economic Reports:
Chain Store Sales
7:30 am CT– Weekly Jobless Claims
7:30 am CT– Consumer Price Index (CPI)
8:15 am CT – Fed’s Williams Speaks
9:00 pm CT – Philly Fed Survey
9:00 am CT – Housing Market Index
10:10 am CT – Ben Bernanke Speaks
Notable Earnings:
Before Market: BBT, BLK, C, GS, PNC, TSM, UNH
After Market: AXP, COF, INTC, SLM
Friday – 1/17: BK, CMA, GE, MS, SLB, STI |
发表于 2014-1-16 10:07
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