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.

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.

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.

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.

4Q Output Jumps to Soothe Some of the Bulls' Recent Lumps

The bulls welcomed today's larger-than-expected 4Q GDP report as stocks are moving solidly higher, as some of the economic concerns that have surfaced recently, which led yesterday's solid decline and last week's steep losses, are being soothed in late-morning action. The earnings calendar is in focus as Dow member Microsoft and Amazon.com both exceeded earnings forecasts. However, fellow Dow member Chevron posted a mixed profit report, and traders are reacting negatively to better-than-expected earnings from Honeywell International and Mattel Inc. Treasuries remain lower after extending losses following the GDP report and as the 4Q Employment Cost Index rose more than expected. Elsewhere on the economic front, Midwest manufacturing unexpectedly improved and consumer sentiment was revised higher than economists expected. Overseas, Asian markets followed yesterday's decline in the US, while Europe is on the rebound.

4Q GDP Causes Bears to Flee

The bulls received some needed inspiration to exit the stalls this morning following yesterday's solid decline, as global economic uncertainty dampened sentiment, from a larger-than-expected increase in the first report on US 4Q GDP, which showed the broadest measure of economic output jumped by a 5.7% annualized rate. Stocks are higher in morning action amid the upbeat GDP number and on some favorable earnings reports out of the tech sector, as Dow member Microsoft and Amazon.com both reported earnings that exceeded expectations. However, fellow Dow member Chevron posted a mixed profit report. Treasuries are lower after extending losses following the GDP report and as the 4Q Employment Cost Index rose more than expected. Later today, the economic calendar will yield reports on Midwest manufacturing and consumer sentiment. Overseas, Asian markets followed yesterday's decline in the US, while Europe is on the rebound.

Financials and Tech Drag Stocks Below the Flatline

Financials have turned below the flatline, relinquishing early enthusiasm that came on the heels of the Federal Reserve maintaining its monetary policy stance and as President Barack Obama pared back his tone toward financial regulation and seemed to be focusing on job creation. Additional pressure on financials came amid cautious comments from Standard & Poor's toward the UK banking industry. Technology shares are also under pressure to help pull the equity markets below the unchanged mark, led by a sharp drop in shares of Qualcomm after it issued 2Q guidance that missed the Street's forecasts. The economic front provided some uneasiness regarding the economic recovery, with headline durable goods orders rising by a smaller amount than expected and weekly initial jobless claims falling by a fewer amount than was anticipated. The soured sentiment is overshadowing upbeat earnings reports, as Ford Motor Co. and Dow members 3M Co. and Procter & Gamble posted better-than-expected results, while fellow member of the blue chip index AT&T matched expectations. Overseas, Asian markets finished higher, while European shares have given up early gains amid the worries surrounding the UK.

Moving Higher Despite Disappointing Headline Durables

After rebounding somewhat yesterday as the Federal Reserve maintained its monetary policy stance, stocks are moving higher on eased concerns in the financial sector as President Barack Obama pared back his tone toward financial regulation and seemed to be focusing on job creation. The relatively upbeat sentiment is overshadowing a disappointing reading of headline durable goods orders and a smaller-than-expected drop in weekly initial jobless claims, which has Treasuries mixed. Also, some upbeat earnings reports from Ford Motor, and Dow member 3M CO. are helping to boost the equity markets in morning action. However, fellow Dow member Procter & Gamble missed the Street's profit estimates, while AT&T matched expectations. Overseas, markets are higher.

New Home Sales Drag Stocks Back in the Red Ahead of the Fed

Economic uneasiness continues to weigh on the markets and stocks are modestly lower on the heels of last week's solid decline and yesterday's disappointing late-day slide, which wiped away gains as an unexpected drop in new home sales is exacerbating sentiment. Traders are also treading cautiously ahead of the afternoon release of the Federal Reserve's interest rate announcement and monetary policy statement. The earnings front is providing some news for traders to chew on as they wait for the Fed's announcement, with Dow members Boeing and United Technologies both topping the Street's estimates, while fellow Dow component Caterpillar missed on the top line and provided cautious guidance, which are overshadowing its better-than-expected bottomline. Outside of the Dow, Yahoo posted profits that exceeded analysts' forecasts. Treasuries have moved higher in late-morning action ahead the Fed's report and after the disappointing new home sales report, which is teaming up with a drop in mortgage applications to add to the economic uneasiness and the unfavorable backdrop for the housing sector. Overseas, markets are under pressure amid lingering concerns about China's efforts to control asset bubbles.

Ahead of the Fed, Bulls Trying to Escape the Red

After a late-day slide yesterday, which erased an advance and took the major equity markets below the flatline, stocks are nearly unchanged in cautious early action ahead the afternoon release of the Federal Reserve's interest rate announcement and monetary policy statement. The earnings front is providing some news for traders to chew on as they wait for the Fed's announcement, with Dow members Boeing and United Technologies both topping the Street's estimates, while fellow Dow component Caterpillar missed on the top line, which is overshadowing its better-than-expected bottomline. Outside of the Dow, Yahoo posted profits that exceeded analysts' forecasts. Treasuries are flat in morning action ahead the Fed's report and after mortgage applications fell. New home sales will be released just after the opening bell. Overseas, markets are under pressure amid lingering concerns about China's efforts to control asset bubbles.

Street Grapples With Earnings and Lingering Global Concerns

The bulls showed some resiliency yesterday, rebounding somewhat from last week's steep decline, and stocks are nearly unchanged in late-morning action as traders are grappling with some generally better-than-expected earnings reports in the US, while digesting some uneasiness overseas. Asian shares moved lower and dampened early trading on Wall Street on lingering concerns about China's efforts to rein in liquidity, while a downgraded outlook from Standard & Poor's on Japan's sovereign credit rating, which followed the closing bell in Asia, added to the morning's apprehension. Meanwhile, stocks have come off the worst levels of the day as traders are digesting a plethora of major earnings reports, headlined by generally better-than-expected profit releases from several Dow members, along with bottomline announcements from Apple and Texas Instruments, which both exceeded the Street's estimates, while US Steel reported a larger-than-expected loss. Some on the Street are treading with some caution ahead of the Federal Reserve's monetary policy announcement tomorrow. Treasuries have pared an advance that came
from the aforementioned early economic uneasiness and following a report that showed US home prices fell more than expected, and after consumer confidence improved for a third-straight month. Overseas, European shares have overcome early weakness on the heels of a disappointing UK 4Q GDP report following a better-than-expected reading of business confidence in Germany-Europe's largest economy.

Global Economic Concerns Weigh on Sentiment

After slightly rebounding yesterday from last week's solid declines, stocks are back under some pressure as concerns about the impact of tighter lending in China on the global economic recovery are resurfacing to pressure sentiment in early trading. Additionally, uneasiness regarding Japan's sovereign credit quality on the heels of an outlook downgrade by Standard & Poor's and a smaller-than-expected increase in 4Q UK GDP are adding to the global economic concerns. Meanwhile, stocks have come off the worst levels of the day as traders are trying to digest a plethora of major earnings reports, headlined by mixed profit releases from several Dow members, along with bottomline announcements from Apple and Texas Instruments, which both exceeded the Street's estimates. Some on the Street are treading with some caution ahead of the Federal Reserve's monetary policy announcement tomorrow and ahead of a key report on consumer confidence. Treasuries are gaining ground in morning action amid the aforementioned economic uneasiness, and following a report that showed US home prices fell more than expected. Overseas,
Asian markets came under solid pressure, while European shares are also in red despite a better-than-expected reading of business confidence in Germany-Europe's largest economy.