U.S. equity futures are slightly lower following yesterday’s rally. The move enabled the S&P to erase almost all of its losses for 2014, as the index closed just shy of the level it had reached at the end of 2013. At one point the S&P 500 Index (SPX) was at its highest intraday level ever before falling back below the $1850 level. This was a significant reversal and could spell a short-term top on a technical level. In conjunction with the morning rally, volatility in the option market fell sharply in the morning. The CBOE Volatility Index (VIX) ended yesterday’s session with minor losses as the late day reversal resulted in some option buying. Hopefully we will see some additional volatility come into play this week.
Treasuries are little changed after a slightly lower session yesterday. The 10-year note yield traded around 2.74% and remains in a tight range. China's index fell by over 2% on a weaker property market and continued losses in their currency. German Q4 GDP met expectations with a 0.4% increase. In the U.K., mortgage approvals were better than forecast and in Italy, the Prime Minister won a confidence vote in the Senate to give his new coalition some support. Despite this, European bourses were in the red today. In the U.S. today, attention will be on the $32 B 2-year note auction which kicks off this week's $96 B in sales. Today's slate includes December FHFA home price index, the December Case-Shiller home price index, February consumer confidence, and weekly chain store sales. There will be Fed-speak from Tarullo and Dudley, but neither are likely to make policy revelations. The markets also will be looking ahead to the second part of Fed Chair Yellen's Monetary Policy testimony on Thursday.
Stock Stories:
Home Depot (HD) –Blaming weather – The home improvement retailer posted mixed earnings results this morning. The company beat on EPS by a small margin but missed slightly on top-line revenue. The retailer sees FY14 sales below expectations but they did raise their dividend by 21%. The shares of Home Depot are up 2.5%, which is in-line with the expected option market-maker move.
Major Economic Reports:
6:45 am CT – GS Store Sales
8:00 am CT –House Price Index
8:00 am CT – S&P Case-Shiller Home Price Index
9:00 am CT – Consumer Confidence
9:00 am CT – Richmond Fed Mfg. Survey
9:10 am CT – Fed’s Tarullo Speaks
12:00 pm CT – 2-year Note Auction Results
Notable Earnings:
Before Market: BMO, DPZ, EOG, HD, M, ODP, TOL
After Market: FSLR, SAM
Wednesday– 2/26: ADSK, ANF, BIDU, BUD, DLTR, JCP, SODA, TGT, TJX |
发表于 2014-2-25 10:34
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