U.S. Equity Futures (/ES) look relatively quiet this morning although down slightly ahead of weekly unemployment claims scheduled to be released momentarily. The trend has remained under 300,000 initial filings for several consecutive weeks now and will be a key level to watch after last week’s dismal monthly indication consequently soured market sentiment temporarily.
Treasury markets are also seeing little change overnight with the 10 year yield still at 1.88% with more bond auction activity slated for today. This CBOE Volatility Index (VIX) closed under $14 for the first time in April after yesterday’s session with little economic data to disturb the recent trend lower. However, volatility may likely begin to be tested over the upcoming weeks as a new round of earnings was unofficially kicked off by Alcoa (AA) last night. The bellwether company missed revenue targets which were primarily blamed on the stronger dollar likely becoming an overall theme with multi-nationals.
Several global markets are seeing multi-year highs today after Greece announced it will honor a loan payment to the ECB ahead of their deadline. Germany also released upbeat industrial production numbers to ease concerns in the region. Oil futures (/CL) are seeing some relief this morning after taking a painful 6% hit yesterday. Saudi Arabia was the latest scapegoat after announcing record production levels to add to an already problematic global inventory excess.
Stock Stories:
Bed Bath and Beyond (BBBY) – Taking a Bath – The home goods retailer missed quarterly estimates last night after aggressive promotions cut into profit margins with ever increasing online competition. Forward guidance was also reduced as a result with a recently popular wage increase in the works for employees. Shares are down 3% pre-market following the bad news.
U.S. equity futures (/ES) are posturing slightly higher this morning, just under all-time highs after the index improved by 1.2% so far this week. Weekly jobless claims came in less than expected which helped to appease concerns over the labor markets. Crude (/CL) was also a major catalyst in yesterday’s broad rally as several oil services companies saw aggressive buying after the recent route.
Global markets continue to scream higher with ongoing Government stimulus at the heart of the trend. Key European and Asian markets are hitting fresh 15 year highs today to close out the week as the shift in policy is fueling an equity buying frenzy with record level bond yields. As a result, the US Dollar Index (DX) is flirting with the century mark again which has also been a notable boon oversees as rates continue to decouple.
Earnings will be ramping up in earnest next week after a few dissapointments so far and the likely focus will be on how the strengthening dollar has played into U.S. companies’ overall performance over the last quarter. Very little is scheduled on the economic front today with the exception of some Fed speak and Import/Export prices out this morning.
Stock Stories:
General Electric. (GE) –– It’s electric! The conglomerate announced this morning that they are selling their majority stake in GE Capital and using proceeds to purchase $50 Billion worth of stock in an attempt to focus more on its core business. Shares are up 7% pre-market as a result.
发表于 2015-4-9 09:06
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