Ahead of the Bell: Dow futures are trading up 57 points and S&P futures are trading up 6 points. Investor confidence was boosted by upbeat economic data from the US, diminishing concerns over the crisis in Ukraine, and optimism that China will pump more stimulus into their economy. Market participants were encouraged by improvements in consumer confidence which rose more than expected in March and house prices which increased solidly in January. The US and its European allies agreed to hold off on more damaging economic sanctions unless Moscow goes beyond the seizure of Crimea. Reports indicate that Russia’s and Ukraine’s foreign ministers had held an impromptu first meeting also prompted investors to believe the crisis triggered by Vladimir Putin annexation of Crimea is not heading into a wider armed conflict. Commodities and emerging markets, including Brazil and Australia benefited on hopes that China will take steps to bolster its sagging economy following a string of disappointing economic data which led economists to lower their growth forecast for the world’s second largest economy.
• On the economic calendar today, a report on February’s durable goods orders will be released before the market opens and a 1.0% rise is expected, vs. a 1.0% drop in January.
• The dollar is up against the euro and down against the Japanese yen and the British pound. Gold is trading at $1,316. Crude oil is currently trading at $99 a barrel.
• Yesterday, stocks advanced for the first time in three days as commodity and health-care shares rallied and economic data showed consumer confidence at a six-year high.
• On CNBC this morning, Andrew Kuchins, CSIS Russia & Eurasia Program Director, shared his thoughts on Putin’s power play. Kushins does not expect to see thousands of troops coming into Ukraine, but he does think there will be further destabilization in the Eastern part of the country. He added the Russians people faced minimal impact from the sanctions imposed by the west for annexing Crimea. The US should support Ukraine’s military, both on the ground and in the air, plus anti-military weapons. This is not the time to walk on eggshells with Vladimir Putin who is the aggressor.
• Have a great day!
Tuesday’s Close
DJIA up 91.19 pts/+0.56%/ 16,367.88
S&P up 8.18 pts/+0.44%/ 1,865.62
Nasdaq up 7.88 pts/+0.19%/ 4,234.27
Wednesday’s Futures
Dow Futures up 57.00 pts/+0.35%
S&P Futures up 6.25 pts/+0.32%
Nasdaq Futures up 15.75 pts/+0.41%
Overseas Markets
FTSE +0.39%
CAC 40 +1.00%
NIKKEI 225 -0.37%
HANG SENG +0.72%
Overseas: Global stock markets are up today. European and Asian markets extend their rallies, prompted by expectations that monetary policy makers in Europe and China might announce new rounds of stimulus measures.
Economic Reports: Durable Goods Orders (+1.0% expected) at 8:30 a.m.
Top Headlines:
• Reports indicate Blackstone Group LP (BX) is close to a deal to buy industrial conglomerate Gates Global Inc for more than $5.5 billion, in what would be one of the largest leveraged buyouts so far this year.
• Reports suggest Facebook Inc., (FB) will acquire two-year-old Oculus VR Inc, a maker of virtual-reality glasses for gaming, for $2 billion, buying its way into the fast-growing wearable devices arena.
• Reports indicate the New York Times (NYT) plans to launch a new premium monthly subscription package on April in an effort to increase its subscriber count. The new NYT Now iPhone app will cost $8 for four weeks of service.
Commodities/Currency:
Gold: up $5.40 to $1,316.60
Oil: up $0.23 to $99.44
EUR/USD 1.3801 -0.0025
USD/JPY 102.3450 +0.0505
GBP/USD 1.6542 +0.0014
Volatility Index (VIX): As of the close of business Tuesday, March 25, 2014 the VIX is down 1.07 at 14.02.
Companies Reporting Quarterly Earnings:
Forbes Energy reports Q4 EPS (19c), vs. Est (23c) and Q4 revenue $109.7M, vs. Est $103.71M and Q4 adj EBITDA $18M vs. $13M last year.
Lindsay Corp. reports Q2 EPS $1.04, vs. Est $1.13 and Q2 revenue $152.8M, vs. Est $162.89M.
Movado reports Q4 EPS 28c, vs. Est 30c and Q4 revenue $132.3M, vs. Est $143.50M.
Today’s Opening and Closing Bells:
Congratulations to King Digital Entertainment as it celebrates its IPO on the NYSE today and will ring The Opening Bell.
Cypress Energy Partners, L.P. will visit the New York Stock Exchange (NYSE). Cypress Energy made its public debut on the NYSE on January 15, 2014. Peter C. Boylan III, CEO and Chairman of the Board, along with other members of the board of directors and senior management team, will ring The Closing Bell.
