U.S. equity futures are higher following yesterday’s gains and earnings from financial giant Bank of America (BAC). The company reported better than expected results, and its comments about its outlook were upbeat, causing the shares to climb by more than 2% in early trading. Investors will be watching a producer prices report (PPI) and the Empire Manufacturing Index this morning, as well as the Fed's Beige Book report which is due out this afternoon. The CBOE Volatility Index (VIX) fell sharply on yesterday’s rally and basically negated Monday’s spike. Investors continue to shun buying options as premiums are at extremely low levels. We could see further weakness today in the ‘Fear Gauge’ if stocks stay in positive territory. The markets seem a little too complacent but we would need a big catalyst to trigger any downside concerns.
Treasuries are relatively flat after breaking its recent uptrend by falling yesterday. Although many bond analysts are calling for higher interest rates, the 10-year yield remains below the 3% level at 2.87%. Equities are in rally mode with Japan's Nikkei rebounding 2.5% and German's DAX 1.25% higher, with the latter shrugging off softer than expected 2013 GDP data. Chinese shares were the exception after leading data reports were unexpectedly weak. There's more U.S. data on the way today, along with the Fed's Beige Book for the January 28, 29 FOMC meeting. This report could provide some market moving news. The MBA reported mortgage application jumped 11.9% in the week ended January 10. There is also more Fed-speak today from the dovish Evans and Lockhart. The earnings calendar is full tomorrow with reports due from Goldman Sachs, Citigroup, American Express, BlackRock, PNC, and Capital One Financial.
Stock Stories:
Apple (AAPL) – We knew this – The tech product maker holds news conference on the China mobile deal. This comes after the company announcement late last year but investors are bidding the stock up on the news. The shares are up 1.5% in the pre-market.
Major Economic Reports:
6:00 am CT – MBA Purchase Applications: +11.9% for the week
7:30 am CT – Producer Price Index (PPI)
7:30 am CT – Empire State Mfg. Survey
9:30 am CT – Oil Inventories
11:50 am CT – Fed’s Evans Speaks
1:00 pm CT – Beige Book
4:20 pm CT – Fed’s Lockhart Speaks
Notable Earnings:
Before Market: BAC, FAST
After Market: CSX, KMI, KMP
Thursday – 1/16: AXP, BBT, BLK, C, COF, GS, INTC, PNC, SLM, UNH |
发表于 2014-1-15 09:40
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