Market Flash: Market Up
From The Trading Floor: Stocks are trading well into the green this morning, poised for a weekly gain ahead of some select index rebalancing and a quad witch expiration that is expected to be large
Fitch has raised the U.S.’s outlook to „stable“ while affirming the country’s AAA rating, citing the suspension of the debt limit last month and strong fiscal consolidation as reasons for the move.
29 of 30 Banks passed the most recent stress tests with Zions Bancorp falling a bit short
Nike’s FQ3 earnings beat consensus as the company enjoyed rising sales in China and Western Europe, while it also said orders have soared ahead of this summer’s soccer World Cup. Guidance has them trading down this morning.
The cost of implementing the Volcker Rule could vary from $413M to $4.3B for banks supervised by the Office of the Comptroller of the Currency, an OCC study calculates, as the regulations force banks to sell restricted investments at a loss.
Today is a quad witch expiration day which is the simultaneous expiration of futures on stock indexes and individual stocks, and stock and stock index options. It is also a quarterly rebalance on some S&P and Nasdaq indexes
Russia’s Micex stock index was down this morning after the U.S. threatened sanctions against vital parts of the country’s economy, including the financial-services, energy and mining sectors. The U.S. also imposed asset freezes and visa bans on senior Russian officials and businessmen close to Vladimir Putin.
Italian industrial orders jumped 4.8% on month in January after sinking 4.8% in December, while industrial sales rose 1.2% vs -0.3%. The figures add to better-than-expected output in January and suggest that Italy’s fragile recovery may be taking hold.
Resistance today looks to be 1880 / 1883 with support at 1867 / 1870
Market Flash:Market Mixed / Positive
From The Trading Floor: Equities are trading mixed to positive this morning as the effects of Janet Yellen’s suggestion of a sooner-than-expected rate hike the prior session is measured against economic reports on employment and housing.
The number of Americans filing applications for unemployment benefits last week increased by 5000 to 320,000
The Fed is due to release the results of its annual stress test on 30 banks today, with most expected to pass
Americans were most pessimistic on the outlook for the economy in March than at any time in the past 4 months
February home sales in the U.S. fell to a 4.60 million rate
The Index of Leading Indicators rose 0.5% in February, a sign the world’s largest economy will strengthen after the weather induced slowdown
Q2 Holdings priced 7.7 million shares at $13.00. The opening print was $16.25 on 1,584,231 shares.
Ukraine plans to pull its troops out of Crimea in what is effectively a de facto acceptance of Russia’s annexation of the province.
The State Council intends to accelerate construction projects and enact other measures to expand domestic demand and stabilize growth. The plan comes amid data which suggests that the economy is softening.
From a technical standpoint, resistance looks to be 1866 / 1869 with support at 1856 / 1859
Market Flash: Market Mixed
From The Trading Floor: Markets are trading in mixed territory this morning as traders are unwilling to make bets ahead of the FOMC rate decision and Janet Yellen’s first press conference at 2:00 today.
Mortgage Applications for the week ending March 14th fell -1.2%
Current account gap fell to $81.1 billion from 96.4 billion
The FOMC rate decision is at 2:00 today. With the Fed expected to taper some more and abandon its 6.5% unemployment threshold for considering rate hikes, punters are focusing on what would push the Fed to finally raise rates.
Japan’s trade deficit narrowed to ¥800.3B ($7.9B) in February from a record ¥2.79T in January but exceeded consensus of ¥590B. Import growth slowed to 9% from 25% while exports rose 9.9%. Japan has now experienced a record 20 consecutive trade deficits, and while the figure may have peaked, few economists expect the country to turn a surplus any time soon.
From a technical perspective, resistance is at the 1877 / 1880 level with support at 1863 / 1866