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 Post subject: March 18th Wednesday 2009
PostPosted: Wed Mar 18, 2009 11:19 pm 
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Today's trades that were posted in real-time in #FuturesTrades chat room via my IRC user name NihabaAshi are archived @ http://www.thestrategylab.com/ftchat/forum/viewtopic.php?f=20&t=139

My Trading Performance: +21.25 Emini ES points

----------------------------



Fed sparks rally on Wall Street
Major indexes extend gains after the U.S. central bank says it will buy Treasury bonds to increase liquidity.
By Ben Rooney, CNNMoney.com staff writer
Last Updated: March 18, 2009: 5:50 PM ET

NEW YORK (CNNMoney.com) -- Stocks rallied Wednesday, posting gains for their sixth of seven sessions, after the Federal Reserve said it would buy up to $300 billion in long-term government bonds.

The Dow Jones industrial average (INDU) gained 91 points, or 1.2%, to close at 7486, while the S&P 500 (SPX) index advanced more than 2%. The Nasdaq composite (COMP) ended just under 2% higher.

After closing at its lowest level in 12 years on March 9, the Dow has climbed more than 14%, and the S&P 500 has gained 17% over the same period.

Stocks were lower throughout the morning but turned sharply higher after the Fed announced its plan to increase liquidity in the credit markets over the next six months

By purchasing the $300 billion in longer-term Treasurys, the central bank hopes to bring down interest rates on other types of debt tied to the bond market, such as corporate debt and mortgage loans, to ease the flow of credit. The Fed also announced plans to buy an additional $750 billion in mortgage-backed securities.

While the economy is likely to remain weak in the near term, the Fed said it expects the government's efforts to stabilize the financial system to "contribute to a gradual resumption of sustainable economic growth." As was widely expected, the central bank held interest rates steady near 0%.

"The Fed's actions to buy Treasurys is being hailed very positively," said Richard Sparks, senior equities analyst at Schaeffer's Investment Research. "We've had some upward momentum already over the last couple days," he added. "And the Fed's action adds fuel to that fire."

The rally continued from Tuesday's gains after the government issued a much stronger-than-expected report on February housing starts and building permits.

Tuesday's housing data, along with an upbeat report on retail sales last week, raised hopes that these critical areas of the economy are showing tentative sings of improvement.

At the same time, shares of Citigroup and other major financial institutions have been heading higher after top executives said last week that the banks were profitable in the first two months of the year. Citigroup (C, Fortune 500) rose 22% Wednesday while Bank of America (BAC, Fortune 500) gained 17%.

Bank shares also rose on continued speculation that government regulators will modify mark-to-market accounting rules, which could make it easier for financial institutions to sell illiquid assets weighing down their balance sheets.

While these factors helped lift stock prices in recent sessions, many analysts say the market still faces significant economic challenges.

"It's clearly a bear market rally," said Abigail Doolittle, a portfolio manager at Johnson Illington Advisors. "When the true economic reality sets in, we could be in for a pretty precipitous fall."

AIG: A House Financial Services subcommittee met Wednesday to discuss the government's $170 billion bailout of insurance giant American International Group (AIG, Fortune 500), especially $165 million in bonuses the company was giving out after receiving taxpayer-funded assistance.

Edward Liddy, AIG chief executive, told lawmakers that he found the bonuses "distasteful," but necessary because of legal obligations and competition. Still, he said he would ask employees who got $100,000 or more to give half back. (full story)

AIG has been the target of a public and political backlash over the bonuses. President Obama criticized the company Tuesday, and lawmakers are pursuing ways to block or tax the bonuses.

Liddy said Fed chairman Ben Bernanke had known about the bonuses for three months and that Treasury Secretary Tim Geithner found out about them two weeks ago - a week before Geithner has said he first heard of the bonuses from his staff.

The Treasury Department maintains that Geithner did not know about the bonuses until last week.

IBM: Dow component International Business Machines (IBM, Fortune 500) is in talks to buy Sun Microsystems Inc. (JAVA, Fortune 500) for at least $6.5 billion, according to The Wall Street Journal. The deal could create a new powerhouse in the computer server business to challenge the dominant player, Hewlett-Packard (HPQ, Fortune 500).

Sun, which makes the technology platform Java, surged 80% to $9.03 a share. Shares of IBM ended down 1%.

Economy: Before the market opened, the government announced an increase in consumer prices for February that was slightly higher than expected.

The Bureau of Labor Statistics said the Consumer Price Index rose a seasonally adjusted 0.4% in February. The core CPI, excluding volatile food and energy prices, rose 0.2%.

A consensus of economists surveyed by Briefing.com had forecast an overall increase of 0.3%, with core CPI up 0.1%. In January, CPI was up 0.3% and the core prices were 0.1% higher.

Separately, the Mortgage Bankers Association said mortgage applications surged last week, led by a 30% increase in refinancing activity. The spike comes as rates on home loans fall near historic lows, the MBA said.

Bonds: Treasurys surged, after the Fed's announcement, lowering the yield on the benchmark 10-year note to 2.51% from 3.01% Monday. Treasury prices and yields move in opposite directions.

Lending rates improved. The 3-month Libor rate fell to 1.29% from 1.3% Monday, while the overnight Libor rate was unchanged at 0.31%, according to Bloomberg.com. Libor is a bank-to-bank lending rate.

Other markets: In global trading, Asian markets advanced and European markets were mixed.

In currency trading, the dollar fell sharply against the euro and the pound.

U.S. light crude oil for April delivery fell $1.02 to settle at $48.14 a barrel. Earlier, the government reported that the nation's supplies of gasoline soared last week.

COMEX gold for April delivery fell $27.70 to settle at $889.10 an ounce.

Yahoo! Finance

4:10 pm : The latest policy statement from the Federal Open Market Committee (FOMC) enticed buyers to enter the bidding process and push stocks markedly higher. Buyers rallied around financial stocks, which yet again helped provide leadership to the broader market.

The FOMC is maintaining a target fed funds lending rate within the range 0.00% to 0.25%, as predicted. Exceptionally low levels are expected for an extended period.

The Fed will bolster its balance sheet by buying up to $300 billion of Treasuries during the next six months. The 10-year Note surged on the news; it finished almost 4 points higher, pushing its yield down to a two-month low of 2.55%.

Asset purchases didn't end there, though. The Fed will purchase an additional $750 billion of agency mortgage-backed securities this year, bringing the total to $1.25 trillion.

An additional $100 billion of agency debt will also be purchased this year, bringing the total to $200 billion.

News the Fed will be expanding its balance sheet weighed on the Dollar Index, which lost 2.7% as it fell to its lowest level since late January.

Still, the Fed's decision to purchase so many of these assets is aimed at helping stimulate the flow of credit and creating demand for the assets.

That recognition provided a lift to financial stocks. Financials had already overcome an early fit of weakness, but managed to climb even higher to close at session highs with a gain of 10.1%.

The strength of a broad range of diversified financial services companies (+13.2%) and diversified banks (+14.9%) helped the S&P 500 outperform its counterparts. The broader market had been stuck in negative territory and traded in a relatively narrow range until the FOMC's announcement convinced traders to follow the lead of the financial sector.

The stock market closed with broad-based gains even after sellers resurfaced during the last couple of hours of trading to knock the stock market off its session highs.

Outside of the financial sector, Sun Microsystems (JAVA 8.89, +3.92) and Adobe (ADBE 21.35, +2.22) traded with considerable strength. Sun was boosted by news from The Wall Street Journal that IBM (IBM 91.97, -0.94) is in talks to acquire the company for at least $6.5 billion in cash. As of Tuesday's close, Sun Microsystems had a market capitalization of just $3.7 billion. Meanwhile, Adobe is garnering interest after posting better-than-expected earnings for its latest quarter.

Oracle (ORCL 15.83, +0.43) also showed strength. The company announces its latest quarterly results after the closing bell.

Trading volume was heavy as more than 2.0 billion shares traded hands on the NYSE.

There were some higher-than-expected inflationary readings posted this morning. Still, they are unlikely to fuel inflation concerns. Instead, the reports should help ease deflation concerns. The Consumer Price Index for February showed a 0.4% month-over-month increase, which topped the 0.3% increase that was expected. Core CPI for February increased 0.2% month-over-month, which also exceeded the consensus 0.1% increase. DJ30 +90.88 NASDAQ +29.11 NQ100 +1.2% R2K +3.5% SP400 +3.1% SP500 +16.27 NASDAQ Adv/Vol/Dec 1926/2.15 bln/756 NYSE Adv/Vol/Dec 2492/2.07 bln/592

3:30 pm : Crude oil contracts for April delivery closed with oil priced 2.0% lower at $48.16 per barrel. Despite the loss, crude prices were able to climb back from session lows, which were registered after the Department of Energy reported a larger-than-expected weekly inventory build. Crude traded as low as $46.92 per barrel.

April natural gas contracts also closed lower. Natural gas contracts are being priced at $3.69 each, down 3.3%. Natural gas actually fell as low as $3.67 per contract, which is the lowest level in more than six years. Natural gas inventory data is due tomorrow morning.

Precious metals closed lower. Gold contracts for April delivery closed with gold priced 3.0% lower at $889.70 per ounce. Silver contracts for May delivery closed pit trading with silver priced at $11.94 per ounce, down 5.8%. However, following the latest FOMC policy announcement, prices of both metals have spiked sharply higher in electronic trade.DJ30 +52.57 NASDAQ +17.98 SP500 +12.25 NASDAQ Adv/Vol/Dec 1745/2.15 bln/909 NYSE Adv/Vol/Dec 2318/1.5 bln/752

3:00 pm : Stocks continue to build on earlier gains as they ascend to session highs. The move has been broad-based as every major sector in the S&P 500 sports a gain.

Financial stocks continue to boast the best advance of any sector. Financial stocks are now up 9.0%.

The upbeat tone contrasts the relatively dour mood seen in the early going. During this morning's low point, every sector in the S&P 500 was in the red. Stocks had spent the majority of the session restricted to negative territory, movement was rangebound until the FOMC released its latest policy statement.

Trading volume has also picked up on the New York Stock Exchange.DJ30 +142.65 NASDAQ +40.48 SP500 +21.76 NASDAQ Adv/Vol/Dec 1885/2.03 bln/737 NYSE Adv/Vol/Dec 2524/1.31 bln/535

2:30 pm : The stock market was fluttering along the unchanged mark prior to the release of the latest policy statement from the Federal Open Market Committee (FOMC). Stocks have spiked higher in the wake of the statement's release, and are now trading at their best levels of the session.

The FOMC left the benchmark lending rate unchanged at 0.00% to 0.25%, as expected. The committee expects economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period.

The FOMC said it will buy up to $300 billion of Treasuries during the next six months. Treasuries at the long end of the yield curve have surged.

The committee also said the Fed will buy up to an additional $750 billion of agency mortgage-backed securities, bringing total purchases of these securities to $1.25 trillion this year. The Fed will also purchase an additional $100 billion of agency debt this year, bringing total agency debt purchases to $200 billion. DJ30 +84.58 NASDAQ +33.48 SP500 +14.74 NASDAQ Adv/Vol/Dec 1804/1.72 bln/807 NYSE Adv/Vol/Dec 2223/1.08 bln/795

2:00 pm : The S&P 500 has made its way into positive territory. The broad-based index encountered some resistance at the neutral line, but enough buyers emerged to push the index across the line.

As has been the case in recent weeks, financials were largely responsible for the push. Financial stocks are now up 4.0%.

Life and health insurers are the strongest performers within the financial sector. The group is up 10.0%, while multiline insurers also show strength by climbing 8.4%.

MetLife (MET 23.75, +2.56) is showing particular strength after its shares were upgraded by analysts at Bank of America. MetLife also indicated during a JPMorgan conference that they are always looking at mergers, but they do not have "deal fever."DJ30 -52.33 NASDAQ +9.90 SP500 +0.19 NASDAQ Adv/Vol/Dec 1572/1.47 bln/1003 NYSE Adv/Vol/Dec 1690/922 mln/1311

1:30 pm : Financial stocks continue to build on earlier gains. The financial sector is now up 3.5%, which marks a session high. The S&P 500, however, remains challenged to break into positive ground. The Dow also remains stuck in negative territory.

While the larger capitalized indices have been unable to muster a gain, small-caps are showing solid gains for the second straight session. The Russell 2000 Small-Cap Index is currently up 1.1%.DJ30 -52.41 NASDAQ +7.34 SP500 -0.84 NASDAQ Adv/Vol/Dec 1475/1.35 bln/1062 NYSE Adv/Vol/Dec 1524/838 mln/1455

1:00 pm : The broader market has been stuck in negative territory for the entire session, despite strength in financial and technology shares, but is now threatening to break into positive ground.

Financials have been the primary driving force behind the broader market's movements for several weeks. Financials are up after an early fit of weakness. The rebound has helped take the broader market to its best levels of the session, but the ascent by the stock market has stalled near the unchanged mark. Financials are trading near their session high with a gain of 2.8%.

Tech stocks in the S&P 500 are up just 0.3%, but the strength of large-cap tech is helping the Nasdaq outperform the other headline indices for the second straight session.

Sun Microsystems (JAVA 8.99, +4.02) and Adobe (ADBE 21.16, +2.03) are primary leaders within the Nasdaq.

A report from The Wall Street Journal indicates IBM (IBM 90.44, -2.47) is in talks to acquire Sun Microsystems for at least $6.5 billion in cash. At the prior session's close, Sun Microsystems had a market capitalization of just $3.7 billion.

Meanwhile, Adobe is garnering interest after posting better-than-expected earnings for its latest quarter.

Overall trading as been rather choppy as market participants continue awaiting the latest policy statement from the Federal Open Market Committee (FOMC). The rate-setting committee is expected to leave the target interest rate unchanged at a range from 0.00% to 0.25%. Attention, then, will be focused on whether the FOMC provides new clues relating to economic conditions, forecasts, efforts to purchase Treasuries, or plans to expand existing programs. The announcement is expected at 2:15 PM ET.

There were some higher-than-expected inflationary readings posted this morning. Still, they are unlikely to fuel inflation concerns. Instead, the reports should help ease deflation concerns. The Consumer Price Index for February showed a 0.4% month-over-month increase, which topped the 0.3% increase that was expected. Core CPI for February increased 0.2% month-over-month, which also exceeded the consensus 0.1% increase. DJ30 -47.31 NASDAQ +7.98 SP500 -0.49 NASDAQ Adv/Vol/Dec 1445/1.22 bln/1069 NYSE Adv/Vol/Dec 1508/762 mln/1457

12:30 pm : Financial stocks have built on earlier gains after taking a bit of a breather. The sector is off its session high, but is sporting a 2.1% gain. The advance by financial stocks has helped the broader market pare its losses.

The S&P 500 recently climbed to fresh session highs, though it still has yet to break into positive ground.

The overall tone remains a bit mixed as four sectors trade with gains (financials +2.1%, telecom +0.6%, consumer discretionary +0.3%, technology +0.3%). Still, that is an improvement from the early going, when all 10 sectors were showing losses.DJ30 -63.72 NASDAQ +5.90 SP500 -2.45 NASDAQ Adv/Vol/Dec 1414/1.09 bln/1044 NYSE Adv/Vol/Dec 1389/681 mln/1559

12:00 pm : Despite their defensive characteristics, consumer staples stocks are faring worse than the broader market as they trade with a 1.4% loss.

Part of the sector's weakness follows a disappointing quarterly report from General Mills (GIS 48.93, -4.73). General Mills posted quarterly adjusted earnings of $0.79 per share, which were hampered by rising costs. The downturn in earnings was also worse than expected. The consensus estimate called for earnings of $0.88 per share.

General Mills didn't help its cause by issuing downside guidance. The company expects to earn from $3.87 per share to $3.89 per share for the full year. That is actually up from its prior forecast, which called for full-year earnings to range from $3.83 to $3.87 per share. However, analysts, on average, have forecast full-year earnings of $3.94 per share.DJ30 -63.48 NASDAQ +3.12 SP500 -3.64 NASDAQ Adv/Vol/Dec 1268/951 mln/1149 NYSE Adv/Vol/Dec 1261/612 mln/1669

11:30 am : Financial stocks are making another rebound effort. The sector is now trading with a 1.4% gain after spending most of the morning in the red. In the first few minutes of trading the financial sector reversed a loss of more than 1% to trade with a 0.2% gain, but that move proved unsustainable.

Bank of America (BAC 6.99, +0.72) is providing a bit of leadership to the financial sector's recent advance. The stock is up after a newspaper article cited the company's chief executive, Ken Lewis, for saying Bank of America may pay back bailout funds by 2010. Meanwhile, shares of Morgan Stanley (MS 22.75, -1.06) are showing weakness after Reuters reported the stock was given a Neutral rank by analysts at JPMorgan.

The most recent move by financials has helped the broader market pare its losses. However, weakness remains relatively widespread.DJ30 -100.52 NASDAQ -7.30 SP500 -8.15 NASDAQ Adv/Vol/Dec 1047/802 mln/1314 NYSE Adv/Vol/Dec 924/514 mln/1958

11:00 am : Stocks are paring their losses, but all three major indices remain in the red. For the second straight session the Nasdaq is outperforming on a relative basis.

The Nasdaq's resilience stems from technology stocks like Sun Microsystems (JAVA 7.76, +2.79) and Adobe (ADBE 20.51, +1.38).

Shares of Sun Microsystems have pulled back a bit in the last few minutes of trading, but the stock is still boasting a gain of more than 55%. The precipitous rise follows a report from The Wall Street Journal indicating IBM (IBM 90.71, +2.20) is in talks to acquire Sun Microsystems for at least $6.5 billion in cash. At the prior session's close, Sun Microsystems had a market capitalization of just $3.7 billion.

Tighter credit conditions have hampered merger activity as it has become difficult for many companies to take advantage of depressed asset prices and stock prices. However, companies that keep their coffers stuffed with cash are having an easier time picking up deals. IBM, for instance, had almost $13 billion in cash equivalents and short-term investments at the end of the latest quarter.

Meanwhile, Adobe is garnering interest from investors after the company posted earnings of $0.45 per share for its latest quarter. The consensus estimate called for earnings of $0.44 per share. Adobe also indicated it expects earnings for the current quarter to range from $0.31 to $0.38 per share, which brackets the consensus estimate of $0.35 per share.DJ30 -81.64 NASDAQ -3.32 SP500 -6.01 NASDAQ Adv/Vol/Dec 1025/664 mln/1291 NYSE Adv/Vol/Dec 933/390 mln/1880

10:30 am : The Department of Energy reported a 1.9 million barrel build for weekly crude oil inventories. A build of roughly 1.5 million barrels was expected. Ahead of the announcement, crude oil futures contracts were trading roughly 2.2% lower at $48.05 per barrel. Crude futures contracts are now trading 3.2% lower at $47.60 per barrel.

The weakness in crude prices has caused the energy sector to underperform the other major sectors. Energy has fallen to fresh session lows as it trades with a 3.0% loss.

Within the energy sector, oil and gas exploration companies (-4.1%), refiners (-3.2%), and oil and gas equipment companies (-3.7%) are showing particular weakness. DJ30 -118.28 NASDAQ -8.88 SP500 -9.43 NASDAQ Adv/Vol/Dec 923/520 mln/1349 NYSE Adv/Vol/Dec 732/288 mln/2029

10:05 am : Early trading has been choppy. All three major indices are still in the red, but the Dow is underperforming its counterparts.

Several key commodities are also showing weakness.

Gold prices are currently down 1.5% to $903.10 per ounce. Silver is being priced roughly 0.9% lower at $12.55 per ounce.

Crude oil futures contracts are pricing oil down 1.6% to $48.35 per barrel. The latest weekly inventory data is due at the bottom of the hour.

Natural gas is essentially unchanged at $3.81 per contract.

In other commodity news, the Baltic Dry Index extended its recent losing streaking to a fifth straight session. It fell 5.7% as every sub-index finished lower.

Early movers: Trading up: JAVA +64.7%, SEED +29%, VRTS +16.0%, DRI +13.7%, CSGS +10.6%, AIR +10.6%, TLEO +10.5%, FEED +10.1%. Trading down: SGK -30.2%, IFC -28.1%, MRX -22.3%, SDTH -14%, GLG -9.6%, LNC -9%, GIS -8%.DJ30 -82.68 NASDAQ -1.23 SP500 -5.94 NASDAQ Adv/Vol/Dec 1041/338 mln/1097 NYSE Adv/Vol/Dec 906/191 mln/1779

09:45 am : Stocks stumbled in a broad-based decline in the first few minutes of Wednesday's trade, but a rebound by financial stocks has helped pare the broader market's decline.

As has been the case in recent sessions, as goes the financial sector, so goes the broader market. Financials were down more than 1% in the first few minutes of trading but have rebounded to trade with a 0.2% gain. During the prior session, financials overcame a 2.5% loss to finish with a 6.6% gain. DJ30 -60.28 NASDAQ -0.27 SP500 -2.11

09:15 am : S&P futures vs fair value: -7.30. Nasdaq futures vs fair value: -9.30. Stocks are on track to open lower. The weak tone follows a strong finish to the prior session, which helped stocks close at session highs with strong gains. The pullback this morning comes despite more possible merger activity; The Wall Street Journal indicated IBM (IBM) may purchase Sun Microsystems (JAVA) for at least $6.5 billion in cash. The news has shares of JAVA trading sharply higher in premarket action, while IBM is down a few points ahead of the opening bell. Corporate headlines this morning also include better than expected results from Adobe (ADBE). General Mills (GIS) missed earnings expectations and issued disappointing guidance, even though its outlook actually improved from its previous forecast. There were some higher-than-expected consumer inflation readings. Still, they are unlikely to fuel inflation concerns, and are more likely to ease deflation concerns.

09:05 am : S&P futures vs fair value: -7.80. Nasdaq futures vs fair value: -9.30. The major European indices are trading in mixed fashion. Germany's DAX is currently up 0.4%, thanks to support from Bayer and Allianz (AZ). This is the eighth straight session that shares of AZ have traded higher on the German exchange. France's CAC is off by a modest 0.2%. Financial outfit BNP Paribas and integrated energy and chemical company Total (TOT) are weighing on the action. Pharmaceutical company Sanofi-Aventis (SNY) is providing support, however. Britain's FTSE is lagging its counterparts with a 0.8% loss. The decline comes as energy and financial companies trade in mixed fashion. While BP PLC (BP) is showing leadership, but Royal Dutch Shell (RDS.A) is a primary laggard. Royal Bank of Scotland (RBS) is showing strength after a report from Financial Times indicated the comapny has benefited from corporate banking activity in its key markets. The report added that sources close to RBS added that any improvement in revenues could be undermined by further deterioration in the bank's balance sheet. The leadership from RBS has lifted peer Barclays (BCS) higher, but global financial giant HSBC (HBC) is trading as a laggard. In economic news, Daily Telegraph reported the UK Office of National Statistics show the number of unemployed climbed to just above 2.0 million, putting the unemployment rate at 6.5%. Minutes from the Bank of England's monetary policy committee's March 4-5 meeting suggested the British economy would contract sharply over 2009. In Asia, the MSCI Asia-Pacific Index closed 0.8% higher. In Japan, the Nikkei closed 0.3% higher, which was its highest close in five weeks. Bank shares advanced amid optimism the Bank of Japan will stabilize the financial system and help the economy. The central bank raised its buying of government bonds by 29%. Just yesterday it said it would offer up to $10.2 billion in subordinated loans to Japanese banks. Mizuho Financial (MFG) and Sumitomo Mitsui Financial both climbed higher. Separately, Sharp Corp and other solar cell makers staged gains after the government said it aimed to lift the country's global share in solar cell production by 2020. Overall gains were limited, though, as investors locked in profits on recent advancing issues. In Hong Kong, the Hang Seng closed 1.9% higher. HSBC gained on the Hang Seng for a seventh straight session. Lender ICBC also gained, while smaller rival China Construction Bank advanced as well. Meanwhile, Huiyuan Juice was one of the biggest decliners following a report that Coca Cola (KO) may abandon its $2.4 billion proposed takeover of the company. In mainland China, the Shanghai Composite closed 0.2% higher.

08:35 am : S&P futures vs fair value: -5.10. Nasdaq futures vs fair value: -7.00. Stock futures have shown little reaction to the latest economic data. The Consumer Price Index for February showed a 0.4% month-over-month increase. A 0.3% increase was expected. January's CPI showed a 0.3% increase. Core CPI for February was up 0.2% month-over-month. It was expected to increase 0.1%. February CPI was up 0.2% year-over-year. Economists expected the year-over-year reading to be flat, just as it was in January. February Core CPI was up 1.8% year-over-year. It was expected to increase 1.7%, similar to the January increase. The fourth quarter current account balance showed a $132.8 billion deficit, which is improved from the prior reading's downwardly revised $181.3 billion deficit. The fourth quarter deficit was expected to total $137.1 billion.

08:05 am : S&P futures vs fair value: -5.20. Nasdaq futures vs fair value: -7.80. Stock futures currently lag fair value in the wake of a mixed batch of corporate headlines. IBM (IBM) is in talks to buy Sun Microsystems (Java) for at least $6.5 billion in cash, according to The Wall Street Journal. Though the report indicacted the deal could go through as early as this week, it also noted a transaction might not occur if talks fall apart. As of the prior session's close, Sun Microsystems had a market cap of $3.7 billion. Shares of JAVA are up roughly 65% to $8.20 per share in premarket trading. In a separate article, The Wall Street Journal reported China's government has rejected Coca-Cola's (KO) $2.4 billion bid to acquire one of the largest Chinese juice makers. General Mills (GIS) reported adjusted earnings of $0.79 per share, which is shy of the $0.88 per share that was expected. The company raised its full-year outlook to a range of $3.87 to $3.89 per share from the range $3.83 to $3.87 per share. The consensus remains at $3.94 per share, though. Adobe (ADBE) posted quarterly earnings of $0.45 per share, which bested the consensus estimate by one penny. The company expects earnings for the current quarter to range from $0.31 to $0.38 per share, which brackets the consensus estimate of $0.35 per share. The February Consumer Price Index is due at the bottom of the hour. The Current Account Balance is also due then. Market participants will later turn their attention to the latest Federal Open Market Committee policy statement, which could cause a stir if there is surprise mention of economic or banking conditions, or Fed asset purchases. The FOMC is expected to leave the target interest rate unchanged between 0.00% and 0.25%. The announcement is expected at 2:15 PM ET.

06:32 am : S&P futures vs fair value: -4.20. Nasdaq futures vs fair value: -7.30.

06:32 am : Nikkei...7972.17...+23.00...+0.30%. Hang Seng...13117.17...+239.10...+1.90%.

06:32 am : FTSE...3860.18...+3.10...+0.10%. DAX...4037.73...+50.00...+1.30%.


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