Ahead of the Bell: Dow futures are trading down 2 points and S&P futures are trading down 2 points. Investors are taking a pause to assess the recent run up in US equities after the DJIA gained for a 10th straight trading session, while the S&P 500 closes in on its all-time high. Bank stocks will be in focus today, after the Federal Reserve ruled Thursday on its latest stress test. Banks immediately hiked dividends and announced share buyback programs shortly following the news yesterday. Concerns over weaker economic data, along with inflation in China have dampened investors’ appetite for riskier assets temporarily.
- On the economic calendar today, March empire manufacturing data will be released before the market opens and a reading of 10 is expected, vs. 10.04 the month prior. Consumer price index for February is due out before the market opens and a 0.5% rise is forecasted, compared to a flat reading in January.
- February industrial production data is also scheduled to be released before the opening bell and a 0.4% increase is expected, vs. a 0.1% decrease the month before. Consumer sentiment will be released after the opening bell and 78.0 it is anticipated.
- The first quadruple witching of the year happens today and traders are expecting some volatility towards the close, as investors rebalance their portfolios. March futures and options are due to expire today.
- The dollar is down against the major currencies. Gold is trading at $1,591. Crude oil is currently trading at $93 a barrel.
- Yesterday, stocks rallied and the Dow closed higher for the 10 straight trading session, as a drop in jobless claims lifted investor sentiment.
- On CNBC today, Bill Miller, Chairman of Legg Mason Opportunity Trust Fund, talked about the rally in the equity market. Miller said we have had a good run since last November, but he believes stocks have room to go higher. Stocks are a better choice than bonds right now. The valuations in stocks are cheap, buybacks are at an all-time high, and the underlying fundamentals are strong. He pointed out, the headwinds are turning into tailwinds, despite the increase in the payroll tax earlier in the year.
- Happy Friday, and have a wonderful weekend!
Thursday’s Close
DJIA up 83.86 pts/+0.58%/ 14,539.14
S&P up 8.71 pts/+0.56%/ 1,563.23
Nasdaq up 13.81 pts/+0.43%/ 3,258.93
Friday’s Futures
Dow Futures down 2.17 pts/-0.02%
S&P Futures down 2.01 pts/-0.12%
Nasdaq Fut up 3.75 pts/+0.11%
Overseas Markets
FTSE -0.60%
CAC 40 -0.80%
NIKKEI 225 +1.45%
HANG SENG -0.38%
Overseas: World stock markets are lower today. European and Asian markets are down as investors take a breather and assess the recent rally in the bull market.
Economic Reports: Consumer Price Index expected to be 0.5% and Empire State Manufacturing Survey expected to be 10.0 at 8:30 a.m., & Industrial Production expected to be 0.5% at 9:15 a.m., Consumer Sentiment expected to be 77.5 at 9:55 a.m.
Top Headlines:
- Reports indicate IBM Corp (IBM) and EMC Corp (EMC) are among firms in talks to acquire privately held database web hosting company SoftLayer Technologies Inc., which could fetch as much as $2 billion.
- The Federal Reserve in its latest stress test has advised JPMorgan (JPM) and Goldman Sachs (GS) to resubmit new capital plans to address weaknesses found in their planning processes.
- According to Morgan Stanley's (MS) CEO, James Gorman, the bank is one step closer to acquiring the rest of its joint venture from Citigroup (C) after passing its recent stress test with the Federal Reserve.
Commodities/Currency:
Gold:up $1.50 to $1,591.10
Oil: up 0.23 to $93.26
EUR/USD 1.3058 +0.0048
USD/JPY 96.1325 +0.0775
GBP/USD 1.5153 +0.0069
Volatility Index (VIX): As of the close of business Thursday, March 14, the VIX is down 0.53 at 11.30
Companies Reporting Quarterly Earnings:
StoneMor Partners reports Q4 EPS (20c), vs. Est (6c) and Q4 revenue $59.3M, vs. Est $62.31M.
Abraxas Petroleum reports Q4 adj EPS (3c), vs. Est (1c) and Q4 revenue $19.1M, vs. Est $18.24M
Bonanza Creek reports Q4 adjEPS 39c, vs. Est 37c and Q4 revenue $73.6M, vs. Est $68.57M.
Today’s Opening and Closing Bells:
NYSE Euronext Celebrates ‘Ireland Day’ at the NYSE. US / Irish Business Leaders will ring the opening bell.
Diageo to Celebrate St. Patrick’s Day at the NYSE. Diageo North America CFO, Greg Kryder and Diageo-Guinness USA President, Sheila Stanziale will ring the closing bell.
Paras Madho
NYSE Euronext
Market Watch & Corporate Actions
212 656 5404
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