NYSE Morning Update:
Ahead of the Bell: Dow futures are trading up 30 points and S&P futures are trading up 3 points. U.S. stock index futures signaled a higher start to Wall Street trade today, even as global shares fell on reignited concerns about Crimea. Market participants are awaiting a final Q4 reading on real GDP which will be released at 8:30 AM EST. Speaking from Brussels, Belgium on Wednesday, President Barack Obama publicly warned Russia that “the isolation will deepen, sanction will increase,” following its annexation of Ukraine’s Crimea region. The International Monetary Fund announced a $14-18 billion bailout for Ukraine, ushering in a new era for the post-Soviet economy. The IMF’s Mission Chief, Nikolay Gueorguiev, announced the bailout will use a “stand-by arrangement.”
• On the economic calendar today, a final reading on Q4 GDP (+2.7% expected), jobless claims for the week ended March 22nd (323K expected) will be released before the market opens. February pending home sales (-0.8% expected) and the Kansas City Fed Manufacturing Index for March (5 expected) will be released after the market opens.
• The dollar is up against the euro and down against the Japanese yen and the British pound. Gold is trading at $1,294. Crude oil is currently trading at $100 a barrel.
• Yesterday, stocks fell, erasing gains that sent the S&P 500 Index to within three points of a record, on concern the situation in Ukraine may escalate after President Barack Obama said the international order is being tested.
• On CNBC this morning, The Lindsey Group president & CEO talked with Alison Deans, Varick Asset Management, about regulations and the Fed’s capital requirements for banks. There’s not enough capital on the planet for banks to cover all risks, says Lawrence Lindsey. Lindsay thinks there isn’t enough capital on the planet to prudently run a bank with so many risks involved. The real risk is policy banking; most of the risk in the US economy is always a policy-driven risk. Running a bubble for too long and running housing policy the way we ran it. Washington cannot admit that it is the source of much of the risk and therefore, it’s saying in the private sector you have to accommodate for the risk that we induce.
• Have a great day!
Wednesday’s Close
DJIA down 98.89 pts/-0.60%/ 16,268.99
S&P down 13.06 pts/-0.70%/ 1,852.56
Nasdaq down 60.69 pts/-1.43%/ 4,173.58
Thursday’s Futures
Dow Futures up 30.00 pts/+0.19%
S&P Futures up 3.50 pts/+0.19%
Nasdaq Futures up 4.50 pts/+0.13%
Overseas Markets
FTSE -0.49%
CAC 40 -0.22%
NIKKEI 225 +1.01%
HANG SENG -0.24%
Overseas: Global stock markets are mixed today as tensions in Russia and Ukraine continue to weigh on investor sentiment. Investors are also waiting to see the final reading of Q4 real GDP in the US.
Economic Reports: Q4 GDP (+2.7% expected) at 8:30 a.m.; Jobless Claims (323K expected) at 8:30 a.m.; Pending Home Sales (-0.8% expected)at 10:00 a.m.; Kansas City Fed Manufacturing Index (5 expected) at 11:00 a.m.
Top Headlines:
• Amazon.com Inc will drop prices on most of its cloud computing services starting April 1, the largest U.S. online retailer said on Wednesday.
• Yum Brands (YUM) has launched a new menu for its KFC chain in China in an attempt to restore confidence with consumers after a flap over its chicken sourcing.
• Bank of America (BAC) agreed to pay $9.3 billion to settle claims that it sold Fannie Mae and Freddie Mac faulty mortgage bonds, helping the bank to end one of the largest legal headaches it still faced from the financial crisis.
• The Federal Reserve on Wednesday rejected Citigroup Inc’s plans to buy back $6.4 billion of shares and boost dividends, saying the bank is not sufficiently prepared to handle a potential financial crisis.
Commodities/Currency:
Gold: down $8.70 to $1,294.70
Oil: up $0.54 to $100.80
EUR/USD 1.3756 -0.0025
USD/JPY 102.21 +0.18
GBP/USD 1.6622 +0.0037
Volatility Index (VIX): As of the close of business Wednesday, March 26, 2014 the VIX is up 0.91 at 14.93.
Companies Reporting Quarterly Earnings:
Accenture (ACN): FQ2 EPS of $1.03, misses by $0.01.Revenue of $7.13B, misses by $80M.
Lululemon Athletica (LULU): Q4 EPS of $0.75, beats by $0.03.Revenue of $521M, beats by $4.2M
Commercial Metals (CMC): FQ2 EPS of $0.12, beats by $0.02.Revenue of $1.65B, misses by $60M.
Conn’s (CONN): Q4 EPS of $0.74, misses by $0.04.Revenue of $361.1M, misses by $1.53M
Today’s Opening and Closing Bells:
TriNet Group, Inc. (NYSE:TNET) will visit the New York Stock Exchange (NYSE) to celebrate their IPO. To mark the occasion President & CEO, Burton Goldfield, will ring the Opening Bell.
Leading investor relation practitioners from publicly traded companies will visit the New York Stock Exchange (NYSE) and ring The Closing Bell in recognition of the achievements, hard work and dedication of the Investor Relations community
