U.S. stock futures pointed to a flat start to the holiday-shortened week.
On the global front, Ireland formally asked the International Monetary Fund and the European Union for financial assistance. This was well anticipated, so the markets have only had a modest reaction. The details are still being worked out, but the country will likely be forced to make further massive spending cuts and raise its low corporate tax rate.
Investors will have several major economic reports to consider before the holiday. Tomorrow we will get the revised GDP figure and latest report on existing home sales. Wednesday will be the busy day of data, with reports on durable goods, personal income and outlays, new home sales, mortgage applications, home prices, consumer sentiment, and weekly jobless claims. The markets are closed Thursday for Thanksgiving, and the stock market closes at 1:00 pm ET on Friday.
Monday, November 22, 2010
Friday, November 19, 2010
Market Notes - November 19, 2010
U.S. stock index futures traded lower this morning after a global markets posted solid gains yesterday. The Dow, NASDAQ, and the S&P all rose at least 1.5%.
Weighing in on today’s sentiment was news that China ordered its banks to raise their reserve requirements to slow lending and cool inflation. This is the second such tightening in two weeks, and fifth time this year. Investors are also looking for developments in Ireland to see if a financial aid package emerges. There are no major economic data or corporate reports scheduled for today.
Weighing in on today’s sentiment was news that China ordered its banks to raise their reserve requirements to slow lending and cool inflation. This is the second such tightening in two weeks, and fifth time this year. Investors are also looking for developments in Ireland to see if a financial aid package emerges. There are no major economic data or corporate reports scheduled for today.
Thursday, November 18, 2010
Market Notes - November 18, 2010
U.S. futures are up sharply this morning, as overseas markets surged higher on news that Ireland may have reached a deal for financial assistance. Britain’s’ FTSE 100 and the DAX in Germany were both 1.4% higher, while France’s CAC 40 rose 1.6%. Asian markets also ended the session with gains.
New claims for unemployment benefits rose less-than-expected last week. Initial claims climbed by 2,000 to a seasonally adjusted 439,000. Economists were expecting initial claims to total 445,000. The number of people still receiving benefits after an initial week of aid fell 48,000 to 4.30 million, in line with expectations and the lowest level since November 2008.
The October Index of Leading Indicators and the Philadelphia Fed Index are due at 10:00 am ET. Both are expected to have risen from the previous month. Also of interest, GM priced its highly anticipated initial public offering at $33 a share yesterday. The automaker’s offering is expected to raise $23.1 billion, making it the largest IPO in U.S. history.
New claims for unemployment benefits rose less-than-expected last week. Initial claims climbed by 2,000 to a seasonally adjusted 439,000. Economists were expecting initial claims to total 445,000. The number of people still receiving benefits after an initial week of aid fell 48,000 to 4.30 million, in line with expectations and the lowest level since November 2008.
The October Index of Leading Indicators and the Philadelphia Fed Index are due at 10:00 am ET. Both are expected to have risen from the previous month. Also of interest, GM priced its highly anticipated initial public offering at $33 a share yesterday. The automaker’s offering is expected to raise $23.1 billion, making it the largest IPO in U.S. history.
Wednesday, November 17, 2010
Market Notes - November 17, 2010
U.S. stock futures remained higher after the release of this morning’s economic data.
Mortgage applications dipped last week, after loan rates increased. The Mortgage Bankers Association said its overall index of mortgage applications, which includes refinances and new purchases, fell 14.4% last week. The 30-year fixed-rate mortgage rose to 4.46% from 4.28% in the previous period. A separate report showed housing starts fell in October.
Consumer inflation remains muted. The overall Consumer Price Index rose 0.2% in October, after a 0.1% rise in September. The consensus called for a 0.4% rise. The core CPI, which excludes food and energy, was unchanged for the third straight month. Economists were expecting to see a 0.1% rise.
Mortgage applications dipped last week, after loan rates increased. The Mortgage Bankers Association said its overall index of mortgage applications, which includes refinances and new purchases, fell 14.4% last week. The 30-year fixed-rate mortgage rose to 4.46% from 4.28% in the previous period. A separate report showed housing starts fell in October.
Consumer inflation remains muted. The overall Consumer Price Index rose 0.2% in October, after a 0.1% rise in September. The consensus called for a 0.4% rise. The core CPI, which excludes food and energy, was unchanged for the third straight month. Economists were expecting to see a 0.1% rise.
Tuesday, November 16, 2010
Market Notes - November 16, 2010
U.S. stock futures pointed to a weak start as markets overseas traded lower.
Inflation at the producer level came in lower than expected in October. The overall Producer Price Index (PPI) held steady at 0.4%, but was well below the consensus forecast for a 0.8% increase. At the core level, the PPI actually fell 0.6% which was significantly lower than the 0.1% expected increase.
Treasury International Capital Flow data for September will be released at 9:00 am ET. Shortly after that, industrial production and capacity utilization data for October will be released. At 10:00 am ET, the National Association of Home Builders will release its housing index.
In corporate news, Wal-Mart posted higher quarterly profits and raised its earnings forecast, but U.S. same-store sales declined. Home Depot topped earnings and revenue expectations, and also raised expectations.
Inflation at the producer level came in lower than expected in October. The overall Producer Price Index (PPI) held steady at 0.4%, but was well below the consensus forecast for a 0.8% increase. At the core level, the PPI actually fell 0.6% which was significantly lower than the 0.1% expected increase.
Treasury International Capital Flow data for September will be released at 9:00 am ET. Shortly after that, industrial production and capacity utilization data for October will be released. At 10:00 am ET, the National Association of Home Builders will release its housing index.
In corporate news, Wal-Mart posted higher quarterly profits and raised its earnings forecast, but U.S. same-store sales declined. Home Depot topped earnings and revenue expectations, and also raised expectations.
Monday, November 15, 2010
Market Notes - November 15, 2010
U.S. futures pointed to a slightly higher open, after stocks finished last week lower. There was not a lot of economic data in the previous week to influence the markets, but there could be plenty this week. Before the markets open, October retail sales data and the November Empire Manufacturing Index will be released. At 10:00 am ET, September business inventories data is due.
Tomorrow, reports on producer prices, industrial production and housing conditions will be released. On Wednesday we will see the reports on mortgage applications, housing starts, and consumer prices. The index of leading indicators, weekly jobless claims, and the Philadelphia Fed Survey are due on Thursday. There are no releases scheduled for Friday.
Tomorrow, reports on producer prices, industrial production and housing conditions will be released. On Wednesday we will see the reports on mortgage applications, housing starts, and consumer prices. The index of leading indicators, weekly jobless claims, and the Philadelphia Fed Survey are due on Thursday. There are no releases scheduled for Friday.
Friday, November 12, 2010
Market Notes - November 12, 2010
U.S. stock futures traded lower after steep losses in Asia. An increase of inflation in China has some investors concerned of future rate hikes. The Shanghai Composite dropped 5.2%, the Hang Seng in Hong Kong dropped 1.9% and Japan’s Nikkei ticked down 1.4%.
Domestic economic news is light again today. A report on consumer sentiment comes out after the market opens. The University of Michigan consumer sentiment index for early November is expected to rise to 69 from 67.7.
Domestic economic news is light again today. A report on consumer sentiment comes out after the market opens. The University of Michigan consumer sentiment index for early November is expected to rise to 69 from 67.7.
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