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| | US Market | | The major U.S. index futures are pointing to a lower opening on Thursday, with sentiment still cautious despite the release of a report showing a smaller than expected increase in jobless claims. Fears that the Fed may find itself ahead of the curve have stirred anxiety among traders and therefore any strong data may be viewed with caution by the markets. Earnings news has been mixed. Meanwhile, a duo of reports on the manufacturing sector and the housing market may also provide some trading cues.
U.S. stocks retreated on Wednesday in the aftermath of the Fed decision. The major averages opened lower and nervously hugged the unchanged line before pulling back immediately after the release of the post-meeting policy statement, as traders worried about the Fed raising interest rates sooner than anticipated.
The Dow Industrials lost 114.02 points or 0.70 percent before closing at 16,222, the S&P 500 Index ended down 11.48 points or 0.61 percent at 1,861 and the Nasdaq Composite Index ended at 4,308, down 25.71 points or 0.59 percent.
Twenty-five of the thirty Dow components closed lower and one stock ended unchanged, while the remaining four stocks advanced. Disney , General Electric and Boeing were among the worst decliners of the session, while UnitedHealth advanced notably.
Among the sectors, gold, utility, Biotechnology and Oil stocks saw significant weakness in the session.
The Dow Industrials pulled back yesterday but was supported by its 5-day MA (currently at 16,218). Further downward, the index has support around 16,175, its 50-day MA (currently at 16,138) and its 100-day MA (currently at 16,051). On the upside, the index has resistance around 16,265, 16,369, 16,452 and 16,528.
In the post meeting policy statement, the FOMC noted that growth slowed in the winter months, partly due to adverse weather conditions. The unemployment rate was described as elevated. The committee felt that labor market conditions will continue to improve gradually.
Stating the central bank's intention to make a further measured pace of reduction in the pace of its asset repurchases, the committee said beginning in April, the Fed will reduce its bond buying program by another $10 billion to $55 billion per month.
The central bank maintained its Fed funds rate at 0-0.25 percent, while it removed the unemployment rate target of 6.5 percent and inflation objective of not more than half a percentage point above the committee's long-term goal as the criteria for removing monetary policy accommodation. Instead, the committee said it will assess progress--both realized and expected--toward its objectives of maximum employment and 2 percent inflation.
Nevertheless, the committee assured that even after employment and inflation are at mandate-consistent levels, economic conditions may for some time warrant keeping its target funds rate below levels the committee views as normal in the longer run.
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| | US Economic Reports |  | | CADUSD | Oil | Gold | Allbanc |  |  |  |  | | Please click on the images to view our interactive charts | | | After reporting first-time claims for U.S. unemployment benefits at a three-month low in the previous week, the Labor Department released a report showing a modest rebound in initial jobless claims in the week ended March 15th.
The report said initial jobless claims edged up to 320,000, an increase of 5,000 from the previous week's unrevised figure of 315,000. Economists had been expecting jobless claims to climb to 325,000.
The Philadelphia Federal Reserve is due to release the results of its manufacturing survey at 10 am ET. Economists expect the business conditions index to rise to 3 in March from -6.3 in February.
The manufacturing index fell to -6.3 in February from 9.4 in January, marking the first negative reading since May 2013. The new orders index declined 10 points to -5.2, the number of employees index fell 5.2 points to 4.8 and the average workweek index dipped to -7 from -5.3. The order backlogs index remained in negative territory for the fourth straight month. At the same time, the 6-month outlook index rose 5.8 points to 40.2.
Around the same time, the National Association of Realtors is scheduled to release its existing home sales report for February. The consensus estimate calls for existing home sales to come in at a seasonally adjusted annual rate of 4.60 million compared to 4.62 million in the previous month.
In January, existing home sales fell 5.1 percent month-over-month to a seasonally adjusted annual rate of 4.62 million units. On a year-over-year basis, sales were 5.1 percent higher. The median price of an existing home was $188,900, up 10.7 percent year-over-year. Distressed sales accounted for 15 percent of sales in January. Inventories of existing homes rose to 4.9 months from 4.6 months in December.
Also at 10 am ET, the Conference Board will release its leading economic indicators index for February. Economists estimate a 0.3 percent month-over-month increase in the index.
The leading economic indicators index rose 0.3 percent month-over-month in January following an unchanged reading in December. The lagging economic indicators index also increased by 0.3 percent, while the coincident economic indicators index edged up merely 0.1 percent.
The Treasury is due to make announcements concerning its auctions of 2-year, 5-year and 7-year notes at 11 am 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 | | | ConAgra reported third quarter adjusted earnings that beat estimates, while its revenues were shy of estimates. The company expects comparable earnings per share growth in fiscal 2015 at a rate lower than the original double-digit target. Lennar (LEN) reported better than expected first quarter results
Jabil Circuit reported second quarter core operating earnings and revenues above estimates and issued upbeat earnings guidance for the full year, although its third quarter forecast was weak.
Guess reported fourth quarter adjusted earnings of 83 cents per share on revenues of $768.4 million, down 6 percent. For the fiscal year ending January 2015, the company expects earnings of $1.40-$1.60 on net revenues of $2.53 billion to $2.58 billion.
Select Comfort announced that it has appointed David Callen as its CFO and Patricia Dirks as its chief human capital officer.
Radisys said it would offer its common shares in an underwritten public offering, with the company intending to use the net proceeds for working capital and other general corporate purposes.
Herman Miller reported third quarter adjusted earnings of 34 cents per share on net sales of $455.9 million. The earnings were in line, while its revenues were below estimates. For the fourth quarter, the company expects earnings of 43-47 cents per share on sales of $485 million to $505 million. The guidance was positive.
Cintas reported third quarter earnings of 69 cents per share on revenues of $1.3 billion. For 2014, the company expects earnings of $2.75-$2.79 per share on revenues of $4.55 billion to $4.575 billion. The results and guidance were both in line with estimates.
CLARCOR reported first quarter earnings of 48 cents per share compared to 47 cents per share last year, while sale climbed 22 percent to $312.7 million. The earnings exceeded estimates, while the sales trailed expectations. The company upwardly revised its 2014 earnings guidance, with the revised guidance coming in line with estimates, while it maintained its revenue guidance.
Nike ,Shoe Carnival ,Wet Seal and TIBCO Software are among the companies due to release their quarterly results after the close of trading.
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| | European Market | | European stocks opened lower and have seen continued weakness since then in reaction to yesterday's Fed decision.
In corporate news, the U.K.'s Next reported a 12 percent increase in its profit for 2013. United Utilities said in its trading update that its revenues and profits for the fiscal year ending March are expected to increase year-over-year. German re-insurer Munich Re said it would buy back 1 billion euros worth of its shares, while it expects lower profits for 2014.
On the economic front, a report released by German Federal Statistical Office showed that German producer prices fell 0.9 percent year-over-year in February, in line with estimates. On a monthly basis, prices remained flat.
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| | Asian Markets | | | | USDCAD | USDEUR | USDGBP | USDJPY |  |  |  |  | | Please click on the images to view our interactive charts | | | Fed fears pushed most Asian markets into the red amid a lack of any major domestic catalysts. However, the Malaysian and New Zealand markets bucked the downtrend with modest gains.
The Japanese market retreated sharply, as risk aversion helped push the yen higher.The Nikkei 225 average opened slightly higher but reversed course in early trading. After declining steadily in the morning, the index moved sideways in the afternoon before closing down 238.29 points or 1.65 percent at 14,224, the lowest closing level since February 6th. A majority of stocks retreated, led by Tokyo Electric Power, Oji Holdings, Ebara and Sharp.
Australia's All Ordinaries opened lower and declined steadily throughout the session before closing down 60.30 points or 1.12 percent at 5,313. The market witnessed abroad based sell-off, with energy and material stocks leading the declines.
Hong Kong's Hang Seng Index closed at 21,182, down 386.53 points or 1.79 percent, and China's Shanghai Composite Index ended 28.26 points or 1.40 percent lower at 1,994.
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| | Currency and Commodities Markets | | In the first day of trading as the front month contract, Crude oil futures are receding $0.66 to $98.51 a barrel. The April contract ended yesterday up $0.67 at $100.37 a barrel.
The previous session's increase came amid the Fed decision and the release of the petroleum status report, which showed that Crude oil stockpiles rose by 5.9 million barrels to 375.9 million barrels in the week ended March 14th. Inventories were in the upper half of the average range for this time of the year.
On the other hand, Gasoline inventories fell by 3.1 million barrels but remained near the upper limit of the average range. Distillate stockpiles declined by 3.1 million barrels and were below the lower limit of the average range. Refinery capacity utilization averaged 86.7 percent over the four weeks ended March 14th compared to 87 percent over the four weeks ended March 7th.
Gold futures are currently slipping $19.50 to $1,321.80 an ounce. In the previous session, Gold fell $17.70 to $1,341.30 an ounce.
Among currencies, the U.S. dollar is trading at 102.40 yen compared to the 102.32 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.3764 compared to yesterday's $1.3833.
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