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| US Market | The major U.S. index futures are pointing to a lower opening on Monday, with sentiment reflecting fears on how the incoming economic data and the unfolding reporting season will pan out. Given the lack of clarity and the absence of any major catalysts, traders may prefer to wait on the sidelines, which could render the mood lackluster.
U.S. stocks ended the week ended January 10th mixed, although the averages traded in a lackluster manner for much of the week amid the release of mixed economic data.
Last Monday, the major averages spent the better part of the session below the unchanged line amid the release of mixed economic data before closing lower. Amid the release of some positive German data on factory orders and trade, the major U.S. averages regained some lost momentum on bargain hunting on Tuesday and closed notably higher.
Apprehension returned to the markets on Wednesday, as strong private payrolls data created some indecision in the minds of traders. The averages closed the session mixed. With Friday's non-farm payrolls report triggering nervousness among traders, stocks moved about in a lackluster fashion before closing mixed on Thursday. The major averages went about in a lackadaisical fashion on Friday, as traders reacted to mixed jobs data, before closing mixed.
For the week ended January 10th, The Dow Industrials ended down 0.2 percent, while the S&P 500 Index closed 0.6 percent higher and the Nasdaq Composite outperformed with a 1 percent rally.
Among the sector indexes, the NYSE Arca Biotechnology Index rallied 6.88 percent for the week and the NYSE Arca Airline Index gained 4.36 percent. Additionally, the Dow Jones Transportation Average moved up 3.21 percent and the NYSE Arca Housing Sector Index and the NYSE Arca Airline Index advanced over 2 percent each.
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The important Main Street events of the unfolding week that could offer clarity to the economic outlook are some housing, consumer and manufacturing readings. Traders are likely to focus on the Commerce Department's retail sales report for December, the results of January manufacturing surveys by the New York Federal Reserve and the Philadelphia Federal Reserve and the Federal Reserve's industrial production report for December
The Commerce Department's housing starts report for December, the Beige Book Report, the jobless claims report, the National Association of Home Builders' housing market index for January, some Fed speeches and preliminary results of the consumer sentiment survey by Reuters and the University of Michigan could also be in the spotlight.
The Labor Department's consumer and producer price inflation reports for December and the import and export prices report for December, the Treasury Budget and the Commerce Department's business inventories report for November round up the economic events of the week.
Atlanta Federal Reserve Bank President Dennis Lockhart is scheduled to speak on the economic outlook in Atlanta at 12:40 pm ET.
The Treasury is set to release its monthly budgetary report for December at 2 pm ET. Economists expect the budget to reveal a surplus of $44 billion compared to a deficit of $135.2 billion in November.
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PVH announced ahead of its participation in the ICR XChange Conference that it would reaffirm its fourth quarter and full year earnings per share guidance. The company also said it would lower its full year and fourth quarter revenue guidance slightly to $8.22 billion and $2.06 billion, respectively.
Hain Celestial announced a deal to buy Basmati and specialty rice products company Tilda Ltd. The company expects the deal to be accretive to its adjusted earnings for the second half of the fiscal year 2014 by 6-10 cents per share.
A Bloomberg report showed that Alcatel-Lucent (ALU) is in discussions to sell its enterprise business to potential buyers including Unify, a Gores Group and German conglomerate Siemens AG venture
Parkway announced the completion of its previously announced underwritten public offering of 10.50 million shares of its common stock at $18.15 per share. The company noted that the net proceeds from the offering total $182.5 million.
Japan's Suntory Holdings Ltd. agreed Monday to acquire Beam, Inc. , the maker of two iconic American whisky brands for about $16 billion, including assumption of debt.
St. Jude Medical raised its fourth quarter and full year guidance.
Bon-Ton Stores said its December comparable store sales were significantly impacted by unfavorable weather conditions in its markets. Citing the disruption caused by the inclement weather during December, the company revised its comparable store sales guidance to a 3.5 percent decline and bottom line guidance to a loss of 30 cents to earnings of 15 cents per share.
NCR announced that it has completed its previously announced acquisition of Digital Insight Corp. from Thoma Bravo for $1.65 billion in cash.
Foster Wheeler confirmed that it has agreed with Oil services company AMEC to be acquired by the latter. The deal provides for AMEC acquiring each outstanding share of Foster Wheeler common stock for 0.8998 shares of AMEC and $16 in cash. Foster Wheeler also said it expects to pay a one-time dividend of $0.40 per share prior to closing. |
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| European Market |
After seeing some volatility in early trading, European stocks are currently modestly higher.
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Most Asian markets advanced, as hopes of a gradual withdrawal of stimulus by the Federal Reserve offered encouragement to traders. However, the Australia and Chinese markets bucked the uptrend, while the Japanese market remained closed for a holiday.
Hong Kong's Hang Seng Index closed at 22,889, up 42.51 points or 0.19 percent. Meanwhile, China's Shanghai Composite ignored some early strength and languished below the unchanged line for most of the remainder of the session before closing down 3.73 points or 0.19 percent at 2,010.
Property developers declined after reports said China plans to introduce a nationwide property tax system to temper record house prices
Australia's All Ordinaries languished below the unchanged line for the bulk of the session, ending down 19.50 points or 0.37 percent at 5,297. A majority of stocks declined, although material stocks saw some strength.
On the economic front, the total number of owner-occupied home loans in Australia rose a seasonally adjusted 1.1 percent in November compared to the previous month, according to a report released by the Australian Bureau of Statistics. This exceeded expectations for a 1 percent increase
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| Currency and Commodities Markets |
Crude Oil futures are slipping $0.76 to $92.44 a barrel after sliding $1.20 or 1.28 percent to $92.72 a barrel in the week ended January 10th.
Last Monday, Oil extended its slide, declining moderately amid lukewarm risk appetite. The commodity rebounded modestly on Tuesday only to decline by over $1.30-a-barrel on Wednesday despite the strong ADP employment report. Oil retreated modestly on Thursday before rebounding by over $1-a-barrel on Friday in reaction to the non-farm payrolls data.
Gold futures, which climbed $10.10 or percent or 0.82 percent to $1,246.90 an ounce in the previous week, are currently receding $2.20 to $1,244.70 an ounce. In the previous week, Gold was supported by the lukewarm risk appetite, which made traders chase safe havens.
Among currencies, the U.S. dollar weakened against the euro in the week ended January 10th, retreating 0.73 percent to $1.3688.The greenback also slipped against the yen, dropping 0.66 percent to 104.18 yen.
The U.S. dollar is currently-trading at 103.14 yen and is valued at $1.3646 versus the euro.
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