Wall Street finished Monday’s session with modest gains on extremely light volume. The markets were led by the tech sector as Apple (AAPL) and Tesla (TSLA) out-performed on positive news. Stock futures are indicating a higher open this morning ahead of the first congressional testimony by newly appointed Fed chief Yellen. Prepared statements will be released at 7:30 am followed by a Q & A at 9:00 am. With the relatively quiet markets yesterday, the CBOE Volatility Index (VIX) finished the session flat. Any surprise comments about the taper or fiscal policy will most likely push the ‘Fear Gauge’ up quickly.
Treasuries are slightly lower this morning in conjunction with the positive S&P 500 futures (/ES). Bond prices have surprisingly remained strong despite the recent snap-back rally in equities. This may be a clue that the recent volatility and downside pressure in stocks is not over. European shares and U.S. stock futures are tracking higher as investors await Janet Yellen's first Congressional appearance since becoming Fed Chair earlier this month. At a hearing before a House panel today, Yellen is expected to reiterate the bank's plan to continue tapering its QE program, although investors will be keeping an ear open for any indications of a change of course following disappointing U.S. jobs and other economic data.
Stock Stories:
CVS Caremark (CVS) – Pharmaceutically enhanced – The retailer posts better than expected EPS and top-line revenue growth this morning on its quarterly report. The company was led by broad market increases on Pharmacy Sales. The stock is up slightly ahead of the opening bell.
Major Economic Reports:
6:45 am CT – GS Store Sales
7:30 am CT – Fed’s Yellen Speaks
8:00 am CT – Fed’s Plosser Speaks
9:00 am CT – JOLTS
9:00 am CT – Fed’s Yellen Speaks
9:00 am CT – Wholesale Trade
12:00 pm CT – 3-year Note Auction Results
7:00 pm CT – Fed’s Lacker Speaks
7:10 pm CT – Fed’s Fisher Speaks
Notable Earnings:
Before Market: CVS, DF, IR, ICE, MMC, MOS, RAI, S,
