U.S. equities are higher following the release of the Challenger job cuts report. The data showed that job cuts were down 5.9% versus the same period a year ago. The positive data follows yesterday’s better than expected ADP employment change report and comes ahead of tomorrow’s monthly nonfarm payrolls report. Investors will now be anticipating the release of the jobless claims data that is scheduled to be unveiled at 7:30 am CT. Volatility finished Wednesday flat as stocks finished the day mixed. The Dow Jones industrials finished the session sharply lower as energy and blue chips underperformed. The CBOE Volatility Index (VIX) has traded in a tight range around $13 recently but should fall today if stocks remain in positive territory. Despite the low levels for the 'Fear Gauge', earnings could provide a warranted boost to volatility this month.
Treasuries are slightly positive following gains in overseas core sovereigns. The 10-year yield continues to hold just under 3.0%, as it's done since the end of 2013, after the market was able to absorb yesterday's 10-year Note auction. In China, CPI slowed to a 2.5% year over year pace in November. European bonds have also been able to recover from a strong rebound in German production and improvement in the ESI confidence reading. The Bank of England left policy steady, as widely expected, as did the ECB. There are expectations Draghi will stress the Bank is ready to act quickly if needed at his press conference later this morning. As for the U.S. agenda, there is the 30-year bond auction reopening, jobless claims and Fed-speak from the hawkish George and dovish Kocherlakota. Earnings season is beginning and so far a few retailers are showing signs of a weak holiday season.
Stock Stories:
Costco (COST) – Who needs 5 gallons of Peanut Butter?! – The warehouse retailer posts December comparable sales were up 3% as negative impacts from gas price deflation and foreign exchange lowered net sales. The company’s shares are up 1.5% ahead of the opening bell but are over $10 below recent all-time highs.
Bed Bath and Beyond (BBBY) – Sold – The specialty retailer misses on earnings call last night as EPS and Revenue comes in light. The company also lowered its Q4 and FY13 estimates after less than stellar holiday sales. The option market had priced in a 5% move for the shares after its quarterly report but is down over 9% ahead of the opening bell.
Major Economic Reports:
Chain Store Sales
7:30 am CT– Weekly Jobless Claims
9:30 am CT– Natural Gas Inventories
12:00 pm CT– 30-Year Bond Auction Results
7:00 pm CT – Fed’s Kocherlakota Speaks
Notable Earnings:
Before Market: FDO, SVU
After Market: AA, PSMT, SNX
Friday – 1/10: INFY |
发表于 2014-1-9 10:30
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