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 Post subject: January 31st Tuesday Trade Results
PostPosted: Tue Jan 31, 2017 8:59 pm 
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4:25 pm: [BRIEFING.COM] Investors continued hedging their investment risk on Tuesday, choosing to play it safe in the wake of last week's record high levels and amid a week full of influential reports on both the earnings and economic fronts. However, an afternoon rally helped the major averages finish at their highest levels of the day. The S&P 500 shed 0.1% after being down more than 0.5% in the early going.

The health care sector assumed a leadership position in today's market, underpinned by the outperformance of the drug and biotech stocks. Those issues rallied on the other side of a meeting President Trump had with industry executives. While the president pressed his case for lowering drug prices, market participants were heartened by his added belief that regulations should be reduced and that the drug approval process should be sped up. Those declarations lent some relief to investors, who appeared heartened by the notion that the meeting with the president was better than feared.

A host of health care names kicked off today's trading session by reporting quarterly results before the opening bell including Pfizer (PFE 31.73, +0.42), Eli Lilly (LLY 77.03, +2.33), Thermo Fisher Scientific (TMO 152.39, +9.10), and Aetna (AET 118.61, +1.90). The results were mixed, but the four names added between 1.3% and 6.4% after President Trump met with CEOs from top U.S. drugmakers on Tuesday morning. Biotechnology stood out with the iShares Nasdaq Biotechnology ETF (IBB 278.07, +7.68) spiking 2.8%.

On the cyclical side, Exxon Mobil (XOM 83.89, -0.97) also reported earnings this morning. The reaction to the report was negative, pushing the company and the energy space lower by 1.1% and 0.1%, respectively. However, the energy sector's loss was capped by crude oil, which finished its trading day 0.3% higher at $52.81/bbl. The energy component's gain came amid a downtick in the U.S. Dollar Index (99.60, -0.82), which finished Tuesday 0.8% lower.

The remaining cyclical sectors fell as cautious sentiment lingered throughout the day. Industrials (-0.9%) closed at the bottom of the leaderboard following United Parcel Service's (UPS 109.13, -7.90) disappointing fourth quarter earnings report and relative weakness in airline names. The top-weighted technology sector also underperformed the benchmark index, thanks in part to a poor showing from chipmakers. The PHLX Semiconductor Index finished Tuesday lower by 1.3%. In the broader tech sector, Apple (AAPL 121.29, -0.34) shed 0.3% ahead of its earnings report.

Conversely, countercyclical spaces and Treasuries thrived on wary investors' actions; all five defensive spaces finished higher while the benchmark 10-yr yield closed five basis points lower at 2.44%. The utilities sector (+1.6%) was the day's top performer, while telecom services (+0.1%) eked out a small gain.

Today's economic data included fourth quarter Employment Cost Index, November Case-Shiller Home Price Index, January Chicago PMI, and January Consumer Confidence:

The fourth quarter Employment Cost Index rose 0.5%, while the Briefing.com consensus expected an uptick of 0.6%.
The key takeaway from the report is that compensation costs did move higher in 2016, which creates some profit margin constraints while at the same time lending employees some increased spending potential.
The Case-Shiller 20-city Home Price Index for November rose 5.3%, which was above the Briefing.com consensus of 5.0%. This followed the previous month's unrevised reading of 5.1%.
Chicago PMI for January decreased to 50.3 from 54.6 in December while the Briefing.com consensus expected a reading of 55.0.
The key takeaway from this report is that it's a first quarter report, and with the pullback to a level that is just above a contraction reading, it will serve perhaps to temper some of the market's heightened optimism surrounding economic growth prospects.
The consumer confidence reading for January declined to 111.8 from the prior month's revised reading of 113.3 (from 113.7). The Briefing.com consensus expected the survey to hit 112.5.
The key takeaway from the report is that consumer confidence is still at relatively high levels, although consumers' outlook was reined in a bit following the post-election surge.

Tomorrow will see a full slate of economic reports including MBA Mortgage Applications Index at 7:00 am ET, January ADP Employment Change (Briefing.com consensus 165k) at 8:15 am ET, January ISM Index (Briefing.com consensus 55.0) at 10:00 am ET, December Construction Spending (Briefing.com consensus 0.2%), February FOMC Rate Decision (Briefing.com consensus 0.625%) at 2:00 pm ET, and January Auto & Truck Sales at 2:00 pm ET.

Russell 2000 +0.3% YTD
Dow Jones Industrial Average +0.5% YTD
S&P 500 1.8% YTD
Nasdaq Composite 4.3% YTD

3:30 pm: [BRIEFING.COM]

Crude oil broke out of its 3-session downtrend ahead of tonight's API on headlines that OPEC has surpassed 1 mln barrels/day in output reductions
Mar crude oil futures rose $0.14 (+0.3%) to $52.76/barrel
Color on price action in oil:
Mar 2017 crude oil futures snapped out of a 3-session downtrend. Crude sharply reversed off of session lows after dropping as much as -0.7% initially, following headlines that OPEC has cut more than 1 mln barrels/day of the promised 1.2 mln barrels/day in planned oil production cuts (the OPEC portion).
Crude oil supply from the 11 OPEC members with targeted production reductions avged 30.01 mln barrels/day in Jan, compared to 31.17 mln in Dec.
Other factors to consider:
U.S. oil production has risen by ~6.3% since July last year to almost 9 mln bpd, according to EIA data.
Concerns these increases in US production will offset the coordinated OPEC/non-OPEC output reductions initially put pressure on crude futures in morning pit trading.
Also initially adding pressure on oil prices was this morning's statements from Goldman regarding an estimation that y/y U.S. oil production will rise by 290k barrels/day in 2017, if a backlog on rigs that are still to become operational is accounted for.
Note: The spread between Brent and WTI crude has been increasing, as market participants appear willing to pay a premium for Brent, as oil supply in the Middle East shrinks due to OPEC reductions, while US WTI crude oil is becoming increasingly plentiful.
Data reminders:
API data will be released today at 4:30 pm ET.
EIA data will be released tomorrow at 10:30 am ET.
Baker Hughes rig count data will be released Friday at 1 pm ET.
Natural gas closed pit trading lower for the third day in a row ahead of Thursday's inventory data on updated warmer weather forecasts across much of the US
Mar natural gas closed $0.11 lower (-3.4%) at $3.12/MMBtu
EIA natural gas inventory data will be released Thursday at 10:30 am ET
In precious metals, gold extended yesterday's gain, silver rallied on continued weakness in the dollar index
April gold ended today's session up $15.40 (+1.3%) to $1,211.40/oz
Gold futures have switched their front month to April from Feb, as indicated by the active amount of volume in the contracts
Mar silver closed today's session $0.39 higher (+2.3%) at $17.54/oz
The dollar index was -0.8% around the 99.62 level, boosted precious metals
Commodities, as measured by the Bloomberg Commodity Index, were +0.7% around the 87.59 level

3:00 pm:

[BRIEFING.COM] Equity indices have ticked up in recent action, with the S&P 500 (-0.3%) and the Nasdaq (-0.3%) hovering near their intraday highs moving into the final hour of today's session.

The Dow Jones Transportation Average has slid 1.7% in today's session and extended its week-to-date loss to 2.9%. Logistics components are showing relative weakness following United Parcel Service's (UPS 109.38, -7.65) disappointing fourth quarter earnings report. The company has lost 6.6% after missing earnings estimates and issuing downbeat guidance this morning.

The losses from logistics names have also had a hand in placing the industrial sector (-1.2%) at the bottom of today's leaderboard. Also plaguing the sector have been airline names, with United Continental (UAL 69.80, -1.93) and American Airlines (AAL 43.91, -0.99) down 2.7% and 2.3%, respectively. Today's underperformance marks the third consecutive loss for the industry group.

2:30 pm:

[BRIEFING.COM] Equity indices hover near their recent levels, little changed since the last update.

Crude oil has returned to its flat line as the end of its trading day approaches. The commodity has had a fairly volatile session, trading overnight losses for solid gains this morning, and then giving back nearly all of said gains this afternoon. The energy sector (-0.7%) has spent today's session in the red, but has hovered ahead of most other cyclical sectors amid crude oil's gain.

Elsewhere in the commodity market, gold ended its trading day 1.3% higher at $1,211.40/ozt, extending yesterday's gain on continued weakness in the U.S. Dollar Index (99.47, -0.95). The index is down 1.0% as today's risk-off tone has given the euro (1.0802) and the Japanese yen (112.56) an advantage over the greenback. The two currencies have added 1.0% and 1.1% against the U.S. dollar, respectively.

2:00 pm:

[BRIEFING.COM] Equity indices hover near their recent levels in what has been range-bound action following initial losses at the opening bell. The Nasdaq currently holds a 0.5% loss.

The Nasdaq shows a comparable loss to the S&P 500 as weakness in technology offsets relative strength in the biotechnology industry. The iShares Nasdaq Biotechnology ETF (IBB 273.74, +3.35) has climbed 1.2%. Losses from large-cap technology names and chipmakers have kept the tech-heavy index in the red. Mastercard (MA 106.16, -3.14) is one of the worst performing technology components, down 3.0%, after the company reported worse than expected revenues this morning. Chipmakers have also been a burden for the Nasdaq, illustrated by the 1.7% downtick in the PHLX Semiconductor Index.

Unsurprisingly, the top-weighted technology sector (-1.0%) sits near the bottom of today's standings. However, the space remains in contention with the materials sector for the top spot of 2017. The two spaces are sporting year-to-date gains of 3.9% and 4.2%, respectively.

1:35 pm:

[BRIEFING.COM] The major U.S. indices have seen some additional selling pressure since our last update as stocks drop roughly 0.5%.

A look inside the Dow Jones Industrial Average shows that Goldman Sachs (GS 228.90, -5.00), Intel (INTC 36.75, -0.75), & JPMorgan (JPM 84.64, -1.39) are underperforming.

Conversely, Procter & Gamble (PG 87.36, +0.61) is the best-performing Dow component as consumer staples display relative strength in today's session.

Tech giant and Dow component Apple (AAPL 120.93, -0.70) is modestly lower ahead of this evening's earnings report, expected out at approximately 4:30 PM. Current estimates call for the Cupertino, California company to report first quarter EPS of approximately $3.22, on revenues that grew 1.8% y/y to $77.26 bln.

As shares continue their decline from yesterday's drop, the DJIA is currently down 1.3% to start the week.

1:00 pm:

[BRIEFING.COM] Monday's caution has carried into the first half of Tuesday's session, as investors trade riskier, growth-sensitive, assets for more stable investment options to begin a week full of potentially market-moving reports. The major averages hold the bulk of their early losses, with the S&P 500 lower by 0.4%.

A slew of high-profile companies reported mixed quarterly earnings results this morning, but all eyes have shifted to Apple (AAPL 121.16, -0.47), the largest company by market cap, which will report after today's close. In addition to Apple's influential earnings report, Facebook (FB 129.77, -1.20) and Amazon (AMZN 820.99, -9.53) are also scheduled to report this week, among numerous other large-cap names.

This week's economic front has the potential to be just as moving, with the FOMC Rate Decision scheduled for tomorrow afternoon and January Nonfarm Payrolls (Briefing.com consensus 170K) set to be released on Friday.

Ahead of the looming uncertainty, investors have increased their demand for U.S. Treasuries and countercyclical stocks. The benchmark 10-yr yield is lower by four basis points at 2.45% while five out of five defensive sectors post gains.

Health care has added 0.7% after President Trump's comments regarding drugmakers have overshadowed an earnings miss from Pfizer (PFE 31.54, +0.22). Following a meeting with a handful of CEO's from the top U.S. drugmakers, Mr. Trump restated his desire to decrease drug prices and move drug manufacturing back to the United States, in addition to lowering industry regulations.

On the cyclical side, energy is lower by 0.4% despite an uptick in crude oil. The energy component is up 1.5% at $53.41/bbl, but the negative reaction to Exxon Mobil's (XOM 83.99, -0.89) earning report has outweighed crude oil's uptick. The company has slipped 1.0%.

The remaining cyclical sectors also post losses, with industrials (-1.2%) leading the retreat. The top-weighted technology and financial sectors are down 0.9% and 0.8%, respectively.

Today's economic data included fourth quarter Employment Cost Index, November Case-Shiller Home Price Index, January Chicago PMI, and January Consumer Confidence:

The fourth quarter Employment Cost Index rose 0.5%, while the Briefing.com consensus expected an uptick of 0.6%.
The key takeaway from the report is that compensation costs did move higher in 2016, which creates some profit margin constraints while at the same time lending employees some increased spending potential.
The Case-Shiller 20-city Home Price Index for November rose 5.3%, which was above the Briefing.com consensus of 5.0%. This followed the previous month's unrevised reading of 5.1%.
Chicago PMI for January decreased to 50.3 from 54.6 in December while the Briefing.com consensus expected a reading of 55.0.
The key takeaway from this report is that it's a first quarter report, and with the pullback to a level that is just above a contraction reading, it will serve perhaps to temper some of the market's heightened optimism surrounding economic growth prospects.
The consumer confidence reading for January declined to 111.8 from the prior month's revised reading of 113.3 (from 113.7). The Briefing.com consensus expected the survey to hit 112.5.
The key takeaway from the report is that consumer confidence is still at relatively high levels, although consumers' outlook was reined in a bit following the post-election surge.

12:25 pm:

[BRIEFING.COM] The major averages have ticked up slightly since the last update. The S&P 500 remains lower by 0.4% while the Russell 2000 (-0.2%) sits closer to its flat line.

Industrials (-1.1%) have led today's retreat, while the heavily-weighted financial (-0.8%) and technology (-0.9%) sectors have performed only modestly better. The technology sector will be looking to validate its post-election rally with Apple's (AAPL 121.08, -0.56), quarterly earnings report after today's close.

European bourses finished their trading day lower despite holding modest gains until the final stretch. The UK's FTSE (-0.3%), France's CAC (-0.8%), and Germany's DAX (-1.3%) all slipped in afternoon action amid President Trump's promise to reduce drug prices and ensure that foreign countries pay their fair share of drug development costs.

11:55 am:

[BRIEFING.COM] Equity indices have ticked a bit further into negative territory as the gains in lightly-weighted sectors prove no match for the losses of more influential spaces. The S&P 500 is down 0.5%.

The real estate sector has crossed over into positive territory for the year, having added 1.1% today. The space's advance has occurred as a downtick in interest rates has mitigated a disappointing earnings report from Simon Properties (SPG 183.26, +5.54) earlier this morning. The company has climbed 3.2% for the day despite reporting worse than expected top and bottom lines and issuing disappointing guidance. Simon Properties did increase its quarterly dividend by $0.10 to $1.75 per share, which may explain the jump in the company's stock.

Telecom services, the only sector smaller than real estate by weight, is also outperforming the benchmark index with a 0.2% gain. Sprint (S 9.57, +0.46) has been an influential factor in the space's advance, increasing 4.9%, after reporting better than expected earnings results and issuing positive guidance before the opening bell.

11:25 am:

[BRIEFING.COM] Yesterday's risk-off sentiment has remained in place today, which has held the major averages near their session lows and increased buying interest in defensively-oriented assets. The S&P 500 currently posts a loss of 0.4%.

Treasuries have jumped in recent action, hitting their highest levels since last Tuesday. The benchmark 10-yr yield started the day relatively flat, but is now five basis points lower at 2.44%.

Also contributing to the risk-off narrative is the U.S. Dollar Index (99.56, -0.86), which has slipped 0.9%. The index has fallen below its 200-day moving average amid relative strength in the euro (1.0793), British pound (1.2565), and the Japanese yen (112.70).

Sector standings point to more of the same as cyclical sectors have been dumped for their countercyclical peers. All six growth-sensitive spaces post losses, while five out of five defensive groups trade higher.

10:55 am:

[BRIEFING.COM] Equity indices continue to hold their early losses with the S&P 500 down 0.4%, while the Dow (-0.7%) sits a few ticks lower.

The health care space (+0.6%) is among today's outperformers following President Trump's meeting with a handful of CEO's from top U.S. drugmakers. Mr. Trump restated his desire to decrease drug prices and move drug manufacturing back to the United States, in addition to lowering industry regulations.

Health care also headlined this morning's earnings as Pfizer (PFE 31.50, +0.19), Eli Lilly (LLY 75.70, +1.01), and Thermo Fisher Scientific (TMO 149.44, +6.15) all reported quarterly results this morning. The results were mixed with Thermo Fisher Scientific reporting better than expected earnings, while Pfizer and Eli Lilly missed on the same metric. Regardless, all three names are up with the rest of the sector, adding between 0.7% and 4.2%.

10:30 am: [BRIEFING.COM]

Crude oil broke out of its 3-session downtrend ahead of this afternoon's API on headlines that OPEC has achieved over 1 mln barrels/day in oil output reductions
Mar 2017 crude oil futures were up about $0.49 (+0.9%) around the $53.11/barrel level
Color on price action in crude:
Mar 2017 crude oil futures snapped out of a 3-session downtrend. Crude sharply reversed off of session lows after dropping as much as -0.7% initially, currently up nearly +1% following headlines that OPEC has cut more than 1 mln barrels/day of the promised 1.2 mln barrels/day in planned oil production cuts (the OPEC portion).
Crude oil supply from the 11 OPEC members with targeted production reductions avged 30.01 mln barrels/day in Jan, compared to 31.17 mln in Dec.
Other factors to consider:
U.S. oil production has risen by ~6.3% since July last year to almost 9 mln bpd, according to EIA data. Concerns these increases in US production will offset the coordinated OPEC/non-OPEC output reductions initially put pressure on crude futures in morning pit trading.
Also initially adding pressure on oil prices was this morning's statements from Goldman regarding an estimation that y/y U.S. oil production will rise by 290k barrels/day in 2017, if a backlog on rigs that are still to become operational is accounted for.
Note: The spread between Brent and WTI crude has been increasing, as market participants appear willing to pay a premium for Brent, as oil supply in the Middle East shrinks due to OPEC reductions, while US WTI crude oil is becoming increasingly plentiful.
Upcoming data:
API data will be released today at 4:30 pm ET.
EIA data will be released tomorrow at 10:30 am ET.
Baker Hughes rig count data will be released Friday at 1 pm ET.
Natural gas was on track to close lower for the 3rd consecutive session ahead of Thursday's inventory data
Mar 2017 natural gas futures were down about $0.08 (-2.6%) around the $3.15/MMBtu level
EIA natural gas inventory data will be released on Thursday at 10:30 am ET.
In precious metals, gold extended yesterday's gain, silver rallied on notable dollar index weakness
April 2017 gold futures were up $19.90 (+1.7%) around the $1215.80/oz level
Mar 2017 silver futures were up about $0.43 (+2.5%) around the $17.59/oz level
The dollar index was -0.9% around the 99.55 level, boosted precious metals in morning pit trading
Commodities, as measured by the Bloomberg Commodity Index, were +0.7% around the 87.66 level

10:00 am:

[BRIEFING.COM] Equity indices have ticked down slightly in recent action with the S&P 500 showing a loss of 0.4%.

Just released, the consumer confidence reading for January declined to 111.8 from the prior month's revised reading of 113.3 (from 113.7). The Briefing.com consensus expected the survey to hit 112.5.

9:45 am:

[BRIEFING.COM] The S&P 500 opened Tuesday's trading session with a modest 0.2% loss.

Real estate (+0.7%) has emerged as the day's early leader, with financials (+0.2%), utilities (+0.4%), consumer staples (+0.1%), telecom services (unch), and energy (unch) also outperforming the benchmark index. Crude oil has given the energy sector a boost despite trading in negative territory throughout the overnight session. The commodity is currently up 1.0% at $53.14/bbl.

U.S. Treasuries opened the day slightly above their flat lines, with the 10-yr yield one basis point lower at 2.48%.

Just reported, Chicago PMI for January decreased to 50.3 from 54.6 in December while the Briefing.com consensus expected a reading of 55.0.

9:18 am: [BRIEFING.COM] S&P futures vs fair value: -5.30. Nasdaq futures vs fair value: -14.90.

The stock market is on track to open Tuesday lower as the S&P 500 futures trade five points below fair value.

This morning saw a batch of earnings reports from high-profile companies like Exxon Mobil (XOM 85.10, +0.24), Pfizer (PFE 31.01, -0.30), MasterCard (MA 107.00, -2.30), and United Parcel Service (UPS 117.03, -1.06), among others. Investors' responses have been generally negative with the four names down between 0.4% and 0.9% in pre-market trade.

Under Armour (UAA 21.51, -7.43) also reported quarterly results this morning and its stock has plunged 26.0% in reaction to disappointing results and downbeat guidance. Also of note, Under Armour's CFO will be leaving the company for personal reasons.

Treasuries have returned to their flat lines this morning after posting modest gains a short while ago. The benchmark 10-yr yield is unchanged at 2.48%.

On the economic front, investors have received the fourth quarter Employment Cost Index and the November Case-Shiller 20-city Home Price Index thus far. The fourth quarter Employment Cost Index rose 0.5% (Briefing.com consensus 0.6%), while the Case-Shiller 20-city Home Price Index for November rose 5.3% (Briefing.com consensus 5.0%).

January Chicago PMI (Briefing.com consensus 55.0) and January Consumer Confidence (Briefing.com consensus 112.5) will round out today's economic data. The two reports will be released at 9:45 am ET and 10:00 am ET, respectively.

9:00 am: [BRIEFING.COM] S&P futures vs fair value: -5.30. Nasdaq futures vs fair value: -13.90.

The S&P 500 futures trade five points (0.2%) below fair value.

Just released, the Case-Shiller 20-city Home Price Index for November rose 5.3%, which was above the Briefing.com consensus of 5.0%. This followed the previous month's unrevised reading of 5.1%.

8:50 am: [BRIEFING.COM] S&P futures vs fair value: -6.00. Nasdaq futures vs fair value: -15.60.

The S&P 500 futures trade six points (0.3%) below fair value.

Equity indices in the Asia-Pacific region ended Tuesday on a mostly lower note, responding to the cautious tone on Wall Street. Markets in China and Hong Kong remained closed for Lunar New Year while Japan's Nikkei (-1.7%) retreated as the yen held its ground just below yesterday's session high. The Bank of Japan made no changes to its policy stance, but did raise its GDP targets for fiscal year 2016, 2017, and 2018 to 1.4%, 1.5%, and 1.1%, respectively. The central bank made no changes to its inflation outlook.

In economic data:
Japan's December Housing Starts +3.9% year-over-year (consensus 8.4%; last 6.7%) and December Construction Orders +7.1% year-over-year (last -6.0%). December Household Spending -0.6% month-over-month (expected 0.6%; last -0.6%); -0.3% year-over-year (consensus -0.6%; last -1.5%). December Industrial Production +0.5% month-over-month (expected 0.3%; last 1.5%) and December Unemployment Rate held at 3.1%, as expected
Australia's December NAB Business Confidence 6 (previous 5) and December Private Sector Credit +0.7% month-over-month (expected 0.5%; last 0.5%)

---Equity Markets---

Japan's Nikkei lost 1.7% with most components ending in the red. NEC plunged 17.7% after lowering its profit outlook. Fujitsu, Kawasaki Heavy Industries, Konami, Mazda Motor, JFE Holdings, Casio, and Kobe Steel lost between 3.0% and 4.6%.
Hong Kong's Hang Seng was closed
China's Shanghai Composite was closed
India's Sensex settled lower by 0.7%. Technology consulting names struggled after the US House of Representatives introduced a bill that would double the minimum salary of H-1B visa holders to $130,000. Tata Consultancy, Infosys, and Wipro lost between 1.6% and 4.5%. Financials were mixed with AXIS Bank falling 1.4%, ICICI Bank surrendering 0.7%, and HDFC Bank rising 0.2%.

Major European indices trade in the green, but gains have been limited so far. The UK's FTSE (+0.6%) trades ahead of other indices while the pound (1.2478) is down 0.1% against the dollar. For its part, the euro (1.0756) has picked up 0.6% against the greenback, hitting a session high after President Donald Trump's adviser Peter Navarro said the single currency is "grossly undervalued." In France, the parliamentary office of presidential candidate Francois Fillon was raided as part of a probe into allegations that Mr. Fillon's wife received salary from state funds for performing phantom work.

In economic data:
Eurozone Q4 GDP +0.5% quarter-over-quarter (expected 0.4%; last 0.4%); +1.8% year-over-year (consensus 1.7%; previous 1.8%). January CPI +1.8% year-over-year (consensus 1.6%; last 1.1%) and Core CPI +0.9% year-over-year, as expected (last 0.9%). December Unemployment Rate ticked down to 9.6% (expected 9.8%; last 9.7%)
Germany's December Retail Sales -0.9% month-over-month (expected 0.6%; last -1.7%); -1.1% year-over-year (consensus 0.3%; last 3.5%). January Unemployment Change -26,000 (expected -5,000; last -20,000) and January Unemployment Rate 5.9% (expected 6.0%; last 6.0%)
Italy's December Unemployment Rate 12.0% (expected 11.8%; last 12.0%)
Spain's January CPI -0.5% month-over-month (expected -1.1%; last 0.6%); +3.0% year-over-year (consensus 2.3%; last 1.6%)
France's CPI -0.2% month-over-month (expected -0.5%; last 0.3%) and December PPI +0.9% month-over-month (last 0.8%). December Construction Spending -0.8% month-over-month (expected 0.2%; last 0.6%)

---Equity Markets---

UK's FTSE is higher by 0.6% with miners and select consumer names showing relative strength. BHP Billiton, Anglo American, Antofagasta, and Glencore are up between 2.0% and 3.0% while Burberry, Sainsbury, TUI, Imperial Brands, and Unilever show gains between 0.5% and 2.2%.
France's CAC trades up 0.5% amid gains in most components. Louis Vuitton leads with a gain of 2.2% while financials Credit Agricole and AXA show respective gains of 1.6% and 0.3%. BNP Paribas is down 0.3% while Societe Generale has given up 1.0%. TechnipFMC is the weakest performer, falling 1.5%.
Germany's DAX has added 0.2%. Heavyweight components trade in mixed fashion. Volkswagen, Deutsche Bank, and Daimler are up between 0.2% and 1.4% while Merck, BMW, and Adidas are all down between 0.5% and 1.2%. Adidas trades among the laggards after Under Armour reported disappointing results.

8:31 am: [BRIEFING.COM] S&P futures vs fair value: -4.50. Nasdaq futures vs fair value: -12.40.

The stock market remains poised for a lower open as the S&P 500 futures trade five points (0.2%) below fair value.

Just in, the fourth quarter Employment Cost Index rose 0.5%, while the Briefing.com consensus expected an uptick of 0.6%.

7:59 am: [BRIEFING.COM] S&P futures vs fair value: -6.50. Nasdaq futures vs fair value: -15.50.

Equity futures trade lower amid mixed trade overseas and after several notable earnings reports since yesterday's close. The S&P 500 futures currently trade seven points (0.3%) below fair value.

Crude oil sits just below its flat line as an increase in U.S. production has undermined the supply cut efforts of OPEC and non-OPEC producers. The commodity is down 0.2% at $52.53/bbl.

Conversely, U.S. Treasuries have seen an uptick in buying interest this morning after opening the week flat on Monday. The benchmark 10-yr yield is two basis points lower at 2.47%.

Today's economic data will include the fourth quarter Employment Cost Index (Briefing.com consensus 0.6%) at 8:30 am ET, the November S&P Case Schiller Home Price Index (Briefing.com consensus 5.0%) at 9:00 am ET, January Chicago PMI (Briefing.com consensus 55.0) at 9:45 am ET, and January Consumer Confidence (Briefing.com consensus 112.5) at 10:00 am ET.

In U.S. corporate news:

Pfizer (PFE 30.91, -0.40): -1.3% after missing earnings estimates and issuing worse than expected guidance.
Thermo Fisher Scientific (TMO 144.00, +0.71): +0.5% after beating earnings estimates.
Aetna (AET 119.00, +2.29): +2.0% after reporting better than expected earnings and issuing positive guidance.
Sprint (S 9.15, +0.04): +0.4% after beating revenue estimates and issuing upbeat guidance.
Under Armour (UAA 23.30, -5.63): -19.5% after missing on the top and bottom lines and issuing downbeat guidance. Also of note, Under Armour's CFO will be leaving the company for personal reasons.
Harley-Davidson (HOG 56.20, -1.72): -3.0% after reporting worse than expected earnings and revenues. The company also issued disappointing guidance for shipments in 2017.
Coach (COH 36.71, +0.73): +2.0% after reporting in-line earnings and revenues.
Xerox (XRX 6.80, -0.15): -2.2% after reporting below-consensus revenues.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended Tuesday on a mostly lower note, responding to the cautious tone on Wall Street. Markets in China and Hong Kong remained closed for Lunar New Year. Japan's Nikkei -1.7%, India's Sensex -0.7%.
In economic data:
Japan's December Housing Starts +3.9% year-over-year (consensus 8.4%; last 6.7%) and December Construction Orders +7.1% year-over-year (last -6.0%). December Household Spending -0.6% month-over-month (expected 0.6%; last -0.6%); -0.3% year-over-year (consensus -0.6%; last -1.5%). December Industrial Production +0.5% month-over-month (expected 0.3%; last 1.5%) and December Unemployment Rate held at 3.1%, as expected
Australia's December NAB Business Confidence 6 (previous 5) and December Private Sector Credit +0.7% month-over-month (expected 0.5%; last 0.5%)
In news:
The Bank of Japan made no changes to its policy stance, but did raise its GDP targets for fiscal year 2016, 2017, and 2018 to 1.4%, 1.5%, and 1.1%, respectively. The central bank made no changes to its inflation outlook.

Major European indices trade in the green, but gains have been limited so far. UK's FTSE +0.6%, France's CAC +0.4%, Germany's DAX +0.1%.
In economic data:
Eurozone Q4 GDP +0.5% quarter-over-quarter (expected 0.4%; last 0.4%); +1.8% year-over-year (consensus 1.7%; previous 1.8%). January CPI +1.8% year-over-year (consensus 1.6%; last 1.1%) and Core CPI +0.9% year-over-year, as expected (last 0.9%). December Unemployment Rate ticked down to 9.6% (expected 9.8%; last 9.7%)
Germany's December Retail Sales -0.9% month-over-month (expected 0.6%; last -1.7%); -1.1% year-over-year (consensus 0.3%; last 3.5%). January Unemployment Change -26,000 (expected -5,000; last -20,000) and January Unemployment Rate 5.9% (expected 6.0%; last 6.0%)
Italy's December Unemployment Rate 12.0% (expected 11.8%; last 12.0%)
Spain's January CPI -0.5% month-over-month (expected -1.1%; last 0.6%); +3.0% year-over-year (consensus 2.3%; last 1.6%)
France's CPI -0.2% month-over-month (expected -0.5%; last 0.3%) and December PPI +0.9% month-over-month (last 0.8%). December Construction Spending -0.8% month-over-month (expected 0.2%; last 0.6%)
In news:
The euro (1.0756) has picked up 0.6% against the greenback, hitting a session high after President Donald Trump's adviser Peter Navarro said the single currency is "grossly undervalued."
In France, the parliamentary office of presidential candidate Francois Fillon was raided as part of a probe into allegations that Mr. Fillon's wife received salary from state funds for performing phantom work.

6:00 am: [BRIEFING.COM] Nikkei...19041...-327.50...-1.70%. Hang Seng...Holiday.........

6:00 am: [BRIEFING.COM] FTSE...7150.14...+31.70...+0.40%. DAX...11687...+5.20...+0.00%.

6:00 am: [BRIEFING.COM] S&P futures vs fair value: -4.00. Nasdaq futures vs fair value: -11.90.


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