In prepared remarks released Wednesday afternoon after U.S. markets closed, Fed Chair nominee Yellen signaled the Fed will maintain QE3 at current levels when she said "supporting the recovery today is the surest path to returning to a more normal approach to monetary policy."
Speaking at a town hall meeting Wednesday evening, Fed Chairman Bernanke said the Fed is falling short on its dual mandate to ensure price stability and full employment and that "we need a stronger, more rapidly moving economy."
UK Oct retail sales ex autos fell -0.6% m/m and rose +2.3% y/y, weaker than expectations of -0.1% m/m and +3.1% y/y. Oct retail sales including autos fell -0.7% m/m and rose +1.8% y/y, also weaker than expectations of unch m/m and +3.1% y/y.
Eurozone Q3 GDP rose +0.1% q/q and fell -0.4% y/y, slightly less than expectations of +0.1% q/q and -0.3% y/y.
German Q3 GDP rose +0.3% q/q and +0.6% y/y, right on expectations.
Japan Q3 GDP rose +1.9% q/q annualized, better than expectations of +1.7% q/q annualized, but slower than the +3.8% q/q annualized in Q2. The Q3 GDP deflator fell -0.3% y/y, less than expectations of -0.5% y/y. Q3 GDP consumer spending rose +0.1% q/q, less than expectations of +0.2% and Q3 GDP business spending rose +0.2% q/q, also less than expectations of +1.0% q/q.
Japan Sep industrial production was revised down to +1.3% m/m and +5.1% y/y from the originally reported +1.5% m/m and +5.4% y/y.
Equity conferences during the remainder of this week include: Goldman Sachs Industrials Conference on Wed-Thu, Morgan Stanley Global Chemicals and Agriculture Conference on Wed-Thu, UBS Building and Building Products CEO Conference on Thu, Barclays Software Defined Data Center Forum on Thu, SunTrust Robinson Humphrey Financial Technology, Business and Government Servic on Thu, Morgan Stanley Asia Pacific Summit on Thu, and Mexico Investors Forum 2013 on Fri.
Kohl's (KSS +1.15%) reported Q3 EPS of 81 cents, weaker than consensus of 86 cents, and then lowered guidance on fiscal 2013 EPS view to $4.08-$4.23 from $4.15-$4.35, less than consensus of $4.23.
Viacom (VIAB +1.23%) reported Q4 EPS of $1.55, well ahead of consensus of $1.44.
Helmerich & Payne (HP +0.31%) reported Q4 EPS of $1.47, better than consensus of$1.40.
Sally Beauty (SBH +1.02%) reported Q4 EPS of 38 cents, less than consensus of 39 cents.
Cardinal Health (CAH +1.48%) was awarded a maximum $1.02 billion government contract modification for prime vendor medical and surgical supplies.
Kinross Gold (KGC +1.63%) reported Q3 adjusted EPS of 5 cents, higher than consensus of 4 cents.
Tetra Tech (TTEK -0.30%) reported Q4 EPS of 39 cents, better than consensus of 36 cents.
BorgWarner (BWA +0.46%) announced a two-for-one stock split to all shareholders of record as of the close of business on December 2.
SeaWorld (SEAS +2.82%) reported Q3 EPS of $1.33, mauch better than consensus of $1.21.
Cisco (CSCO +1.14%) tumbled 11% in after-hours trading after it reported Q1 adjusted EPS of 53 cents, higher than consensus of 51 cents, but then lowered guidance on fiscal 2014 adjusted EPS to $1.95-$2.05, below consensus of $2.10.
NetApp (NTAP +2.71%) fell 3% in after-hours trading after it reported Q2 EPS of 66 cents, better than consensus of 63 cents, but reported Q2 revenue of $1.55 billion, below consensus of $1.6 billion.
Dec 10-year T-notes (ZNZ13 +0.15%) this morning are up +7 ticks. Dec 10-year T-note prices on Wednesday closed higher. The major supportive factor was the dovish statement from Janet Yellen that fueled speculation the Fed will maintain the current pace of bond buying when she said the economy must improve before the Fed can begin tapering bond purchases. Closes: TYZ3 +14.50, FVZ3 +8.75.
The dollar index (DXY00 +0.23%) this morning is up +0.209 (+0.26%). EUR/USD (^EURUSD) is down -0.0051 (-0.38%). USD/JPY (^USDJPY) is up +0.72 (+0.73%) at a 2-month high. The dollar index on Wednesday closed lower on speculation that Fed will maintain QE3 into next year on dovish comments from Janet Yellen, the next Fed Chair. Gains in EUR/USD were limited after ECB Executive Board member Praet said the ECB is prepared to take additional steps to prevent the Eurozone from slipping into deflation. Closes: Dollar index -0.266 (-0.33%), EUR/USD +0.00509 (+0.38%), USD/JPY -0.396 (-0.40%).
Dec WTI crude oil (CLZ13 -0.35%) this morning is down -21 cents (-0.22%) and Dec gasoline (RBZ13 +0.88%) is up +2.23 cents (+0.85%) at a 3-week high. Dec crude oil and gasoline prices on Wednesday closed higher on (1) ongoing worker protests in Libya that have disrupted the country’s oil exports, which plunged to 250,000 barrels a day on Nov 10, well below the average of 1.28 million bpd in the first six months of this year, and (2) strength in gasoline which climbed to a 3-week high on speculation that refiners will use more crude to process gasoline after the crack spread, the profit from processing 3 barrels of crude into 2 gasoline and 2 of heating oil, rose to a 3-1/4 month high of $19.94 a barrel. Closes: CLZ3 +0.84 (+0.90%), RBZ3 +0.0416 (+1.61%).
|US||0830 ET||Weekly initial unemployment claims expected -6,000 to 330,000, previous -9,000 to 336,000. Weekly continuing claims expected +2,000 to 2.870 million, previous +4,000 to 2.868 million.|
|0830 ET||Sep trade balance expected -$39.0 billion, Aug -$38.8 billion.|
|0830 ET||Q3 non-farm productivity expected +2.2%, Q2 +2.3%. Q3 unit labor costs expected -0.1%, Q2 unch.|
|0900 ET||Philadelphia Fed President Charles Plosser speaks on monetary policy at the Cato Institute.|
|1000 ET||Fed Vice-Chairman Janet Yellen testifies before the Senate Banking Committee regarding her nomination to become the next Fed chair.|
|1100 ET||EIA Weekly Petroleum Status Report.|
|1100 ET||Treasury announces amount of 10-year TIPS to be auctioned Nov 21.|
|1300 ET||Treasury auctions $16 billion 30-year T-bonds.|
|GER||0200 ET||German Q3 GDP expected +0.3% q/q and +0.6% y/y, Q2 +0.7% q/q and +0.5% y/y.|
|UK||0430 ET||UK Oct retail sales ex autos expected -0.1% m/m and +3.1% y/y, Sep +0.7% m/m and +2.8% y/y|
|0430 ET||UK Oct retail sales including autos expected unch m/m and +3.1% y/y, Sep +0.6% m/m and +2.2% y/y.|
|EUR||0500 ET||Eurozone Q3 GDP expected +0.1% q/q and -0.3% y/y, Q2 +0.3% q/q and -0.5% y/y.|
|Company Name||Ticker||Time||Event Description||Period||Estimate|
|Dillard's Inc||DDS US||Bef-mkt||Q3 2014 Earnings Release||Q3 2014||1.05|
|Helmerich & Payne Inc||HP US||Bef-mkt||Q4 2013 Earnings Release||Q4 2013||1.404|
|Kohl's Corp||KSS US||Bef-mkt||Q3 2014 Earnings Release||Q3 2014||0.855|
|Wal-Mart Stores Inc||WMT US||Bef-mkt||Q3 2014 Earnings Release||Q3 2014||1.127|
|Viacom Inc||VIAB US||Bef-mkt||Q4 2013 Earnings Release||Q4 2013||1.438|
|TransDigm Group Inc||TDG US||Bef-mkt||Q4 2013 Earnings Release||Q4 2013||1.705|
|Sally Beauty Holdings Inc||SBH US||Bef-mkt||Q4 2013 Earnings Release||Q4 2013||0.392|
|Wal-Mart Stores Inc||WMT US||7:00||Q3 2014 Earnings Call||Q3 2014|
|F5 Networks Inc||FFIV US||8:00||Analyst and Investor Meeting||Y 2013|
|Kohl's Corp||KSS US||8:30||Q3 2014 Earnings Call||Q3 2014|
|Viacom Inc||VIAB US||8:30||Q4 2013 Earnings Call||Q4 2013|
|Mallinckrodt PLC||MNK US||8:30||Investor Briefing||Y 2013|
|Progressive Corp/The||PGR US||9:00||Investor Relations Conferece Call|
|Nordstrom Inc||JWN US||Aft-mkt||Q3 2014 Earnings Release||Q3 2014||0.665|
|Applied Materials Inc||AMAT US||Aft-mkt||Q4 2013 Earnings Release||Q4 2013||0.181|
|Bristol-Myers Squibb Co||BMY US||FDA Adcomm, tasimelteon, Non-24-Hour Disorder in the totally blind|
|Questar Corp||STR US||Roadshow - West Coast - Day 1||Y 2013|
|Western Digital Corp||WDC US||Annual General Meeting|
|Thomson Reuters Corp||TRI CN||Annual General Meeting||Y 2013|