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.

Wednesday, February 3, 2010

Under Pressure on Mixed Economic Signals

The bulls are finding some difficulty maintaining the momentum from the past two sessions of solid gains, as traders are taking the opportunity to book some profits, offsetting a smaller-than-expected drop in private sector payrolls. A smaller-than expected improvement in the ISM Non-Manufacturing Index is also dampening sentiment even as the index depicted expansionary conditions in the service sector. A profit miss and disappointing guidance from Dow member Pfizer is adding to some apprehension on the Street, along with an unexpected drop in January same-store sales from Walgreen Co. Other earnings reports are evoking a mixed response toward the media sector as shares of Time Warner and Comcast are both under pressure despite topping expectations, while News Corp is solidly higher after it topped earnings expectations and boosted its dividend. Treasuries remain lower following the economic reports, and after a jump in mortgage applications. Overseas, Asian markets rallied following the lead from the US' two-day advance, while shares in Europe have given up early gains and are lower.

Rally Stalls Despite Smaller-Than-Expected Private Payrolls' Fall

After posting two-straight sessions solidly higher, the equity markets are under some pressure in early action, even as the ADP Employment Change Report showed a smaller-than-expected drop in private sector payrolls. Traders may be booking some profits from the recent rally, treading cautiously ahead of Friday's labor report. Meanwhile, a profit miss by Dow member Pfizer may be adding to the early apprehension on Wall Street. Treasuries are lower, extending losses following the employment data, ahead of a key report on service sector activity, and following a jump in mortgage applications. In other equity news, Comcast and Time Warner both topped the Street's profit projections. Overseas, Asian markets rallied following the lead from the US' two-day advance, while shares in Europe are mostly higher, but have pared early gains.

Tuesday, February 2, 2010

Bulls Trying to Repair Some of January's Despair

Following yesterday's solid advance to start February on upbeat US and global manufacturing reports, the bulls are building some momentum and stocks are higher for a second-straight session, paring some of the losses that came in January. A better-than-expected earnings report from UPS, and M&A activity in the financial sector as Bank of New York Mellon agreed to acquire the global investment servicing business of PNC, are helping provide some resiliency to the bulls. Optimism toward the housing sector amid a slight rebound in pending home sales and an unexpected profit from D.R. Horton are adding to the favorable backdrop in late-morning trading. Treasuries are mixed as the long end of the curve is extending yesterday's losses as the equity markets rebounded. In other equity news, Dow Chemical beat the Street's earnings expectations, but is under pressure, while Barnes & Noble is surging after a major shareholder is seeking to increase its stake in the book retailer. Overseas, stocks in Asia were mixed, with Japan gaining ground on a weaker yen, while Australia led all gainers after its central bank unexpectedly left its benchmark interest rate unchanged. In other overseas action, Europe is higher despite a profit miss by the region's largest oil firm BP Plc.

Modest Rise as Bulls Try to Continue Momentum

After rebounding solidly yesterday on strong manufacturing data, stocks are modestly higher in morning action as the bulls attempt to continue the momentum and overcome some of the losses that have come to start 2010. Earnings continue to be in focus, with UPS and Dow Chemical both exceeding the Street's profit estimates, while M&A in the form of Bank of New York Mellon's acquisition of the global investment servicing business from PNC. Treasuries are slightly higher after yesterday's decline, ahead of the release of pending home sales. Overseas, stocks in Asia were mixed, with Japan gaining ground on a weaker yen, while Australia led all gainers after its central bank unexpectedly left its benchmark interest rate unchanged. In other overseas action, Europe is higher despite a profit miss by the region's largest oil firm BP Plc.

Monday, February 1, 2010

Manufacturing Data Preserves Early Advance

Early gains that greeted traders in morning action were preserved following an unexpected increase in the ISM Manufacturing Index-the sixth-straight monthly expansion-and stocks are solidly higher and near the best levels of the day. A better-than expected earnings report from Dow member Exxon Mobil is also helping the bulls rebound from last week's decline. Treasuries remain lower, extending some losses after the manufacturing report that came from a slightly larger-than-expected increase in personal income, but spending came in short and construction spending fell much more than forecasted. In other equity news, Humana matched the Street's profit projections, while its revenues came in a bit light, but it raised its full-year profit outlook, and Boston Scientific agreed to settle patent litigation and will pay Dow member Johnson & Johnson $1.7 billion. Overseas, stocks in Asia were mixed amid a flood of economic data, headlined by manufacturing reports in China, which showed continued expansion, but the reports are stoking concerns that the Chinese government may be forced to ramp up its efforts to rein in excess liquidity. Meanwhile, Europe is higher as traders are digesting a plethora of upbeat manufacturing reports in the Eurozone.

Personal Income Tops Forecasts, Bulls Looking to Rebound

After another disappointing week despite a larger-than-expected gain in 4Q GDP on Friday, the bulls are looking to repair some of the damaged sentiment amid continued worries about China's efforts to slow down growth and festering fears about the health of sovereign debt in the Eurozone. Stocks are higher in early action, following a better-than-expected earnings release
from Dow member Exxon Mobil and after a report that showed personal income rose slightly more than forecasted. Treasuries are lower on the advance in the equity markets but a major report on manufacturing activity is due out later this morning and could extend or diminish the early gains in the markets. In other equity news, Humana matched the Street's profit projections, while its revenues came in a bit light, but it raised its full-year profit outlook. Overseas, stocks in Asia were mixed amid a flood of economic data, headlined by manufacturing reports in China, which showed continued expansion, but the reports are stoking concerns that the Chinese government may be forced to ramp up its efforts to rein in excess liquidity. Meanwhile, Europe is mixed as traders are digesting a plethora of manufacturing reports in the Eurozone.