Friday, February 12, 2010

China's Rate Increase Causes Bulls' Trot to Cease

After posting nice gains yesterday amid some clarity regarding the Eurozone's support for Greece, stocks are giving back those gains in late-morning action amid resurfacing economic recovery uncertainty following a surprise rate hike out of China. The global economic uneasiness is teaming up with an unexpected drop in consumer sentiment to overshadow a larger-than expected increase in retail sales for January and Treasuries are higher amid some flight-to-safety buying. In other economic news, business inventories unexpectedly declined. On the equity front, Agilent Technologies topped the Street's profit expectations, while Ingersoll-Rand missed analysts' earnings forecasts. Outside of earnings, Motorola announced that it will split into two separate publically traded companies. Overseas, Asia was higher before China's announcement, and Europe has given up early gains and is lower following the news out of China.

China's Surprising Reserve Rate Rise, Points to Bulls' Demise

After getting some clarity on whether Eurozone leaders will provide support to help the deficit problems in Greece, stocks are under pressure in morning action following a surprise rate hike out of China, which is dampening optimism about the global economic recovery. The uneasiness following China's actions is overshadowing a larger-than-expected rise in US retail sales in January. Treasuries are higher as the equity markets slide, and ahead of reports on consumer sentiment and business inventories. In equity news, Agilent Technologies topped the Street's profit expectations, while Ingersoll-Rand missed analysts' earnings forecasts. Overseas, Asia was higher before China's announcement, and Europe has pared early gains following the news out of China.

Thursday, February 11, 2010

Bulls Fail to Prevail Amid Lack of Greece Relief Details

Despite the agreement of European leaders to provide some sort of support to help debt- ridden Greece and following a larger-than-expected drop in weekly initial jobless claims, stocks are lower as the agreement was widely expected and amid the lack of any details of a plan out of the Eurozone. Treasuries are mixed, paring early losses that came initially after the employment data. In equity news, PepsiCo reported 4Q earnings that matched analysts' forecasts, while Activision Blizzard, Viacom Inc, and Allstate all topped the Street's forecasts. In M&A news, FirstEnergy Corp and Allegheny Energy Inc have agreed to combine for approximately $4.7 billion. Overseas, Asia moved higher amid some favorable data, while Europe has turned lower amid the lack of Greek support details and a plethora of earnings reports.

Unchanged as Jobless Claims Fall and Greece Finds Support

The equity markets are nearly unchanged in morning action as traders react to a larger-than-expected decline in weekly initial jobless claims and are showing little enthusiasm to the European Union's announcement that is has agreed to offer some help to Greece, as details of a plan still have not been released. Treasuries are lower following the employment report. In equity news, PepsiCo reported 4Q earnings that came up just shy of analysts' forecasts and its revenues matched expectations, while Activision Blizzard and Viacom Inc. both topped the Street's forecasts. Overseas, Asia moved higher amid some favorable data, and Europe is mostly in the green amid a plethora of earnings reports and as traders react to the support for Greece.

Wednesday, February 10, 2010

Greece Relief Uncertainty and Fed Exit Plan Drain Bulls' Energy

On the heels of yesterday's steep gains on hopes of relief for Greece's deficit problems, stocks are lower in late-morning action amid the absence of clarity as to whether European officials will extend a life-line to the Greek nation. Additionally, pressure on the equity markets has come as traders digest the text of the Fed Chief Ben Bernanke on the Fed's policy exit strategy, in which he gave no indication that the Fed was nearing the deployment of tools to rein in monetary policy as soon as some had expected. Treasuries are mixed, paring gains that followed early reports that showed an unexpected widening of the trade deficit and mortgage applications declined. In equity news, Dow member Walt Disney Co. posted better-than-expected fiscal 1Q results, while Sprint Nextel reported a larger-than-expected loss and Dean Foods missed and offered disappointing guidance. Overseas, Asia was mostly higher, while stocks in Europe are higher on the speculation about a potential bailout for Greece, but have pared gains amid the aforementioned uncertainty.

Trade Deficit Widens, Traders Grapple with Greece Relief Beliefs

After yesterday's steep advance on growing expectations that Eurozone officials were preparing to provide support to Greece's deficit issues, stocks have moved slightly below the flatline in morning action amid conflicting reports on whether or not relief for Greece is indeed in the offing. Treasuries are higher as traders grapple with the lingering uncertainty in the Eurozone and following an unexpected widening of the trade deficit and after mortgage applications declined. In equity news, Dow member Walt Disney Co. posted better-than-expected fiscal 1Q results, while Sprint Nextel reported a larger-than-expected loss. Overseas, Asia was mostly higher, and stocks in Europe are moving higher on the speculation about a potential bailout for Greece.

Tuesday, February 9, 2010

Solid Advance Intact as Greece Debt Worries Contract

After a disappointing late-day slide yesterday, stocks are recouping some of their losses in late-morning action as sovereign debt concerns in the Eurozone are easing somewhat on speculation European officials may be nearing a plan to help Greece attempt to get its deficit issues under control. The dollar is under pressure, pausing from its recent rally, which is helping boost commodity-related issues and the overall advance in the equity markets. Some focus is on the Dow Jones Industrials as a couple of members of the blue chip index announced results, with Coca-Cola Co. matching earnings expectations and exceeding revenue projections, while McDonald's announced that global January same-store sales bested analysts' forecasts despite a decrease in the US. In other equity news, Electronic Arts Inc. missed the Street's profit estimate and it issued a disappointing guidance. Treasuries remain lower, holding onto losses following an unexpected drop in wholesale inventories. Overseas, Asia was mixed and Europe has moved to session highs in late-day action, finding some support from the aforementioned waning concerns about Greece's deficit problems.

Looking to Bounce Back After Yesterday's Late-day Pullback

After a late-day slide yesterday pulled the major equity markets below the flatline, stocks are nicely higher in morning action as some fears about the sovereign debt problems in Greece are easing. Some focus is on the Dow Jones Industrials as a couple of members of the blue chip index announced results, with Coca-Cola Co. matching earnings expectations but exceeding revenue projections, and McDonald's announced that global January same-store sales bested analysts' forecasts despite a decrease in the US. In other equity news, Electronic Arts Inc. missed the Street's profit estimate and it issued a disappointing 4Q earnings outlook. Treasuries are lower as the economic calendar remains light, with wholesale inventories expected to be released just after the opening bell. Overseas, Asia was mixed and Europe is modestly higher.

Monday, February 8, 2010

Range Bound as Bulls Try to Pick Themselves Off the Ground

With little in terms of data to start the week, the equity markets are nearly unchanged in lackluster action as the bulls are trying to overcome continued sovereign debt concerns in the Eurozone and economic uncertainty, which have led to a disappointing start to 2010. This week is likely to be relatively lighter than usual with 4Q earnings winding down and the economic calendar set to produce a smattering of data. Treasuries remain modestly lower as there are no major reports to be released today. In equity news, CVS Caremark reports better-than-expected earnings but its revenues came in light, while Hasbro announced earnings that easily topped analysts' forecasts. Also, troubled commercial lender CIT Group announced former Merrill Lynch CEO John Thain as their new leader. Overseas, Asia finished mixed, while Europe has overcome modest pressure and is higher in late-day
action.

Bulls Search for Identity Amid Heightened Volatility

Coming off another week in the red as 2010 has not been kind to the bulls, stocks are slightly lower in early action amid sovereign debt concerns in the Eurozone and employment uncertainty following Friday's mixed labor report. This week is shaping up to be relatively lighter than usual with 4Q earnings winding down and the economic calendar set to produce a smattering of data. Treasuries are modestly lower as there are no major reports to be released today. In equity news, CVS Caremark reports better-than-expected earnings but its revenues came in light, while Hasbro announced earnings that easily topped analysts' forecasts. Overseas, Asia finished mixed, and Europe is under modest pressure in afternoon action.

Friday, February 5, 2010

Labor Resilient Action on Mixed Labor Data Reaction

In the wake of yesterday's steep broad-based declines on growing concerns about the impact of sovereign debt problems in the Eurozone on the global recovery, stocks have made it back to the flatline, overcoming early losses that came as traders tried to decipher a mixed labor report and festering debt concerns out of Europe. The Department of Labor reported an unexpected decrease in nonfarm jobs, while a separate survey conducted by the DOL showed the unemployment rate surprisingly fell below 10%. Treasuries are modestly higher on the short-to-mid end of the curve as the Street digests the jobs report, and ahead of an afternoon reading on consumer credit. The focus on jobs is overshadowing equity news, which showed Aetna missed the Street's profit projections, while Tyson Foods easily topped analysts' forecasts. Elsewhere on the equity front, UPS raised its quarterly dividend, and Air Products and Chemicals offered to acquire Airgas Inc for about $7.0 billion. Overseas, Asian markets tumbled in response to yesterday's global slide on employment uneasiness and sovereign debt concerns, and Europe is extending losses.

Labor Data Shows Mixed Signals

After yesterday's sharp declines in the equity markets on sovereign debt concerns in Europe and uneasiness toward the employment picture, stocks are slightly higher, paring early losses in morning action as traders are dissecting the labor report, which showed the unemployment rate dipped below 10%, while payrolls unexpectedly fell in January. Treasuries briefly moved higher following the labor data, but have moved back into negative territory. The focus on jobs is overshadowing some light equity news, which showed Aetna missing the Street's profit projections, while Tyson Foods easily topped analysts' forecasts. Overseas, Asian markets tumbled in response to yesterday's global slide on the aforementioned employment and sovereign debt concerns, and Europe is extending losses.

Thursday, February 4, 2010

Jobs Data and Eurozone Debt Dampen Sentiment

The equity markets are solidly below the flatline in late-morning action on the heels of a disappointing report on the US job market ahead of tomorrow's key labor report, and amid growing concerns about the health of sovereign debt in the Eurozone. Making matters worse for the equity markets, Target is dampening some enthusiasm from a plethora of mostly better-than-expected retail same-store sales reports for January, by missing the Street's expectations. In other equity news, Visa topped profit projections, while MasterCard missed, and Yum Brands posted better-than-expected 4Q results. Treasuries remain solidly higher amid the debt concerns in Europe and after the disappointing jobs report. In other economic news, 4Q nonfarm productivity posted a smaller-than-expected increase and factory orders rose more than expected. Overseas, markets are lower, as Europe is reacting to monetary policy announcements from the Bank of England and the European Central Bank, while grappling with the aforementioned debt worries.

Unexpected Rise in Jobless Claims Has Bulls Coming Up Lame

After snapping the two-day winning streak yesterday, the bulls are being stalled by a surprising increase in weekly initial jobless claims, which has some worried about what tomorrow's labor report may reveal about the health of the jobs market. Making matters worse for the equity markets, Target is headlining a plethora of retail same-store sales reports by missing the Street's expectations. In other equity news, Visa topped profit projections, while MasterCard missed. Treasuries are higher after the disappointing jobs report and following a smaller-than-expected increase in nonfarm productivity in 4Q, ahead of a report on factory orders. Overseas, markets are lower, as Europe is reacting to monetary policy announcements from the Bank of England and the European Central Bank.