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| | US Market | | The major U.S. index futures are pointing to a lower opening on Wednesday, with sentiment reflecting caution even as the markets have built up momentum following their recent gains. Among the economic reports released earlier in the day, housing starts data came in weaker than expected, adding to evidence of slowdown in the housing market. Although much of the weakness could be weather related, traders could be perturbed by the softness. The markets may now closely watch the minutes of the January FOMC meeting to gauge the Fed's stance in the wake of the uncertain economic recovery.
U.S. stocks ended Tuesday's session on a mixed note amid the release of mixed corporate news and weak economic data. The major averages opened mixed, with The Dow Industrials slipping at the open, while the S&P 500 Index and the Nasdaq Composite Index opened higher. The S&P 500 Index and the Nasdaq Composite Index held mostly above the unchanged line, but for momentary weakness in late morning trading, and closed higher. The former added 2.13 points or 0.12 percent before closing at 1,841 and the latter ended up 28.76 points or 0.68 percent at 4,273. The Dow Industrials traded mostly below the unchanged line before closing down 23.99 points or 0.15 percent at 16,130.
Sixteen of the thirty Dow components closed lower, while the remaining fourteen stocks advanced. Coca-Cola shed 3.75 percent after reporting fourth quarter revenues that trailed expectations. Procter & Gamble , AT&T and Verizon also moved to the downside.
Among the sectors, transportation and computer hardware stocks were among the worst performers of the session, while biotech, Oil service and brokerage stocks rose notably.
On the economic front, the results of the Empire State manufacturing survey showed that the manufacturing sector expanded at a notably slower rate in February relative to January. The business conditions index fell to 4.48, down 8 points from January. The new orders index fell 11 points to -0.21 and the shipments index receded 13 points to 2.13. The number of employees index edged down point to 11.25.
The results of the National Association of Home Builders survey showed that builder sentiment receded in February. The housing market index fell 10 points to 46 in February, contrary to expectations for a stable reading. The sales expectations index declined 6 points to 54 and the index of prospective buyer traffic slipped 9 points to 31. The current sales conditions index also declined, falling 11 points to 51.
The Dow Industrials was ably supported at its 50-day MA currently at 16,101 yesterday and closed above the level. The level could continue to offer strong support for the index. Further supports could also be found around 16,072, 16,021, 15,964, its 21-day MA currently at 15,911 and 100-day MA currently at 15,829. In the eventuality of The Dow returning to winning ways after yesterday's setback, it could target resistances around 16,176, 16,223, 16,295 and 16,367. |
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| | US Economic Reports |  | | CADUSD | Oil | Gold | Allbanc |  |  |  |  | | Please click on the images to view our interactive charts | | | A Commerce Department report showed that housing starts fell 16 percent month-over-month to a seasonally adjusted annual rate of 880,000 in January, notably lower than the 950,000 rate expected by economists. Single-family starts slumped 15.9 percent. The previous month's starts were upwardly revised to 1.048 million from the 999,000 reported initially.
Building permits considered an indicator of future housing activity fell 5.4 percent to 937,000, also trailing the 975,000 rate expected by economists. At the same time, building permits rose 2.4 percent year-over-year.
The Labor Department reported that the headline producer price index rose month-over-month in January. Core producer prices were up 0.4 percent. The consensus estimates has called for a 0.2 percent month-over-month increase in the headline index and a 0.2 percent increase in the core reading as well, which now excludes food, energy and trade services.
Food prices were up 0.4 percent and energy prices climbed 1 percent, reversing the 0.4 percent drop in the previous month.
St. Louis Federal Reserve Bank President James Bullard is scheduled to speak on the economic outlook and monetary policy in Washington at 1 pm ET. The Federal Reserve will release the minutes of its January FOMC meeting at 2 pm ET. San Francisco Federal Reserve Bank President John Williams is due to speak in New York at 6:15 pm ET. |
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| | Stocks in Focus | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | | Columbia Sportswear reported fourth quarter earnings of $1.05 per share, including 16 cents per share, on revenues of $533.1 million, up 6 percent. For 2014, the company expects mid-teens percentage net sales growth and high-teen percentage growth in operating income. The results exceeded estimates and the guidance was upbeat.
Analog Devices announced a 9 percent increase in its dividend and also a $1 billion increase to its stock repurchase program after it reported first quarter adjusted earnings of 49 cents per share on revenues of $628 million. For the second quarter, the company expects earnings of 54 to 58 cents per share on revenues of $660 million to $680 million. The earnings exceeded estimates, while the revenues were slightly shy of estimates. However, the guidance was in line.
Fluor reported fourth quarter earnings of $1.01 per share on revenues of $6.29 billion. The earnings exceeded estimates, while the revenues trailed expectations. The company maintained its 2014 earnings per share guidance of $4.10 to $4.60 per share. The guidance was in line.
Panera Bread reported fourth quarter net income of $1.96 per share on revenues of $662 million, down 16 percent year-over-year. The earnings beat estimates, while the revenues were weak. The company's 2014 guidance was weak.
Nabors Industries reported fourth quarter income from continuing operations of 51 cents per share on revenues of $1.61 billion. The results exceeded estimates. Community Health Systems reported fourth quarter earnings that trailed estimates but revenues were in line. The company's 2014 guidance was also in line.
Broadcom and Qlogic announced an agreement under which the latter will acquire certain Ethernet Controller-related assets and licenses to certain intellectual property of Broadcom for $147 million in cash.
La-Z-Boy reported third quarter earnings and revenues that missed estimates.
Avis Budget, BJ Restaurants , Crocs , HealthSouth, Jack In the Box , Marriott , Safeway , SINA , Synopsys , Williams Companies and Williams Partners are among the companies due to release their quarterly results after the close of trading. |
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| | European Market | | European stocks are seeing some volatility in early trading and are currently lower amid the release of some domestic earnings and economic data.
In corporate news, French bank Credit Agricole reversed to a profit in its fourth quarter, although revenues increased at a slower than estimated pace. Hurt by sagging demand, Spanish utility Iberdrola reported a decline in its full year profits. Brewer Carlsberg reported better than expected fourth quarter earnings.
Cement maker Lafarge's fourth quarter profits also rose by more than expected. French carmaker Peugeot after it announced that the French government and Dongfeng Motor will pick up a 14 percent stake each in the ailing company. The company also reported a narrower than estimated loss for its fourth quarter.
On the economic front, jobless rate in the U.K. unexpectedly rose in December for the first time in nearly a year, according to data released by the Office for National Statistics. The jobless rate edged up 0.1 points to 7.2 percent in December. The number of unemployed people totaled 2.34 million in the three months to December, down 125,000 from the July to September period. The number of people claiming benefits declined by 27,600 in January to 1.22 million, more than the 20,000 drop forecast by economists.
Eurostat reported that eurozone construction output grew 0.9 percent in December from a month ago, when it was down by 0.2 percent in November. |
| | Asian Markets | | | | USDCAD | USDEUR | USDGBP | USDJPY |  |  |  |  | | Please click on the images to view our interactive charts | | | Most major Asian markets added to their gains, encouraged by Wall Street's resilience and monetary policy hopes. However, the Japanese and the Malaysian markets retreated.
Australia's All Ordinaries opened higher and advanced in early trading. After seeing some sideways movement amid volatility, the index retreated steadily in the afternoon, touching the unchanged line in late trading. Buying re-emerged in late trading, resulting in the index closing up 13.30 points or 0.25 percent at 5,416. Most sectors saw modest to moderate strength, although material stocks did come under some selling pressure.
Hong Kong's Hang Seng Index closed at 22,665, up 76.80 points or 0.34 percent, and China's Shanghai Composite Index ended 23.49 points or 1.11 percent higher at 2,143.
Meanwhile, Japan's Nikkei 225 average languished below the unchanged line throughout the session amid profit taking following yesterday's 3 percentage plus gain. The index ended down 76.71 points or 0.52 percent at 14,767. Export stocks led the retreat, while some defensive stocks gained ground.
On the economic front, a report released by the Cabinet Office showed that its leading economic indicators index for December came in at a revised reading of 111.7 in December, lower than the flash estimate of 112.1 but higher than the November reading of 111.3. A report released by Japan's Ministry of Economy, Trade and Industry showed that its all industry activity index edged down 0.1 percent month-over-month in December following a 0.4 percent increase in November. Economists had estimated a 0.1 percent increase.
The monthly economic report released by the Bank of Japan stated that the central bank expects the Japanese economy to continue to recover at a moderate pace in the near term, supported by a further improvement in industrial production and external demand.
A leading indicator of the Australian economy decreased in January, but continued to signal above-trend growth, according to a released by Westpac and the Melbourne Institute. The leading index, declined to 0.46 percent in January from 1.09 percent in December. |
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| | Currency and Commodities Markets | | Crude Oil futures are rising $0.64 to $102.74 a barrel after advancing $2.13 to $102.43 a barrel on Tuesday. Gold futures are currently slipping $3.80 to $1,320.60 an ounce. In the previous session, Gold added $5.80 to $1,324.40 an ounce.
Among currencies, the U.S. dollar is trading at 102.09 yen compared to the 102.36 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is valued at $1.3746 compared to yesterday's $1.3759. |
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