ECB President Draghi said the aim of QE is to return inflation to the ECB's goal of 2.0% and "we can deploy and will deploy monetary policy in a way that can and will stabilize inflation in line with our objective."
China Feb retail sales rose +10.7% year-to-date, weaker than expectations of +11.6% year-to-date and the slowest pace of increase in 11 years.
China Feb industrial production rose +6.8% year-to-date, weaker than expectations of +7.7% year-to-date and the slowest pace of increase in 5-3/4 years.
UK Jan industrial production unexpectedly fell -0.1% m/m, weaker than expectations of +0.2% m/m. On an annual basis, Jan industrial production rose +1.3% y/y, right on expectations. UK Jan manufacturing production fell -0.5% m/m and rose +1.9% y/y, weaker than expectations of +0.2% m/m and +2.6% y/y.
Japan Feb PPI was unch m/m and rose +0.5% y/y, slightly stronger than expectations of unch m/m and +0.4% y/y.
Japan Jan machine orders fell -1.7% m/m and rose +1.9% y/y, stronger than expectations of -4.0% m/m and -1.0% y/y.
Equity conferences during the remainder of this week include: Deutsche Bank Media, Internet & Telecom Conference on Mon-Wed, 11th Annual Private Banking Asia 2015 on Mon-Wed, Piper Jaffray Technology, Media and Telecommunications Conference on Tue-Wed, RBC Capital Markets Financial Institutions Conference on Tue-Wed, Credit Agricole Global High Yield Conference on Wed, Goldman Sachs TMT Leveraged Finance Conference on Wed, Barclays Capital Health Care Conference on Tue-Thu, Deutsche Bank Regional Banks Summit on Thu, Nomura - Conference: US Software Conference - New York on Thu.
Tiffany (TIF -1.15%) was upgraded to 'Overweight' from 'Neutral' at Atlantic Equities.
Citigroup kept its 'Buy' rating on Actavis (ACT -2.04%) and raised its price target on the stock to $360 from $325.
Scotts Miracle-Gro (SMG -0.50%) was upgraded to 'Buy' from 'Neutral' at SunTrust.
Credit Suisse (CS +6.67%) was upgraded to 'Overweight' from 'Underweight' at JPMorgan Chase.
Skyworks (SWKS -0.99%) will replace PetSmart (PETM -0.01%) in the S&P 500 as of today's close.
EMC (EMC -3.27%) was downgraded to 'Market Perform' from 'Outperform' at Wells Fargo.
L-3 Communications (LLL -1.91%) was initiated with a 'Buy' at Buckingham with a price target of $155.
Credit Suisse initiated Buffalo Wild Wings (BWLD -1.77%) with an 'Underperform' and a price target of $175.
Credit Suisse initiated YUM! Brands (YUM -1.96%) with an 'Underperform' and a price target of $74.
Credit Suisse initiated Dunkin' Brands (DNKN +0.21%) with an 'Outperform' and named it a Top Pick with a $56 price target.
Verifone (PAY -2.75%) reported Q1 EPS of 44 cents, better than consensus of 41 cents, but then lowered guidance on fiscal 2015 EPS view to $1.78-1.82 from $1.85-$1.90, below consensus of $1.90.
Jun 10-year T-notes (ZNM15 -0.16%) this morning are down -5 ticks. Jun 10-year T-note futures prices on Tuesday closed higher. Closes: TYM5 +16.00, FVM5 +7.00. Bullish factors included (1) carry-over support from a rally in German bunds to an all-time high as the ECB bought European government bonds in the second day of its QE program, (2) reduced inflation expectations after the 10-year T-note inflation breakeven rate fell to a 2-week low, and (3) increased safe-haven demand for T-notes after the S&P 500 tumbled to a 1-month low.
The dollar index (DXY00 +0.85%) this morning is up +0.767 (+0.78%) at an 11-1/2 year high. EUR/USD (^EURUSD) is down -0.0125 (-1.17%) at an 11-3.4 year low. USD/JPY (^USDJPY) is up +0.43 (+0.35%). The dollar index on Tuesday surged to an 11-1/2 year high and closed higher: Dollar index +1.030 (+1.06%), EUR/USD -0.01541 (-1.42%), USD/JPY -0.022 (-0.02%). Bullish factors included (1) hawkish comments from Dallas Fed President Fisher who said the Fed should raise interest rates before the economy reaches full employment, and (2) weakness in EUR/USD which slumped to an 11-3/4 year low as the ECB bought European government bonds on the second day of its QE program. USD/JPY fell back from a 7-1/2 year high and closed lower as the slide in stocks fueled safe-haven demand for the yen.
Apr WTI crude oil (CLJ15 +0.39%) this morning is up +4 cents (+0.08%) and Apr gasoline (RBJ15 -0.83%) is down -0.0167 (-0.92%) at a 2-1/2 week low. Apr crude oil and gasoline prices on Tuesday closed lower with Apr crude at a 1-week low and Apr gasoline at a 1-1/2 week low: CLJ5 -1.71 (-3.42%), RBJ5 -0.0602 (-3.21%). Bearish factors included (1) the rally in the dollar index to an 11-1/2 year high, (2) the slump in the S&P 500 to a 1-month low, and (3) expectations for Wednesday’s weekly EIA crude inventories to increase by +4.5 million bbl.
|US||0700 ET||Weekly MBA mortgage applications, previous +0.1% with purchase sub-index -0.2% and refi sub-index +0.5%.|
|1030 ET||EIA Weekly Petroleum Status Report.|
|1300 ET||Treasury auctions $21 billion 10-year T-notes.|
|1630 ET||Fed releases bank stress test results.|
|GER||0300 ET||German Q4 labor costs, Q3 +0.2% q/q and +2.3% y/y.|
|EUR||0400 ET||ECB President Mario Draghi speaks at a conference in Frankfurt, GE.|
|UK||0530 ET||UK Jan industrial production expected +0.2% m/m and +1.3% y/y, Dec -0.2% m/m and +0.5% y/y.|
|0530 ET||UK Jan manufacturing production expected +0.2% m/m and +2.6% y/y, Dec +0.1% m/m and +2.4% y/y.|
|2001 ET||UK Feb RICS house price balance expected 6%, Jan 7%.|
|JPN||1950 ET||Japan Jan tertiary index expected +0.5% m/m, Dec -0.3% m/m.|
|1950 ET||Japan Q1 BSI large manufacturing business conditions, Q4 8.1. Q1 BSI large all-industry business conditions expected 6.0, Q4 5.0.|
|Memorial Resource Development Corp||MRD US||Bef-mkt||Q4 2014 Earnings Release||Q4 2014||0.131|
|Axalta Coating Systems Ltd||AXTA US||Bef-mkt||Q4 2014 Earnings Release||Q4 2014||0.225|
|Principal Financial Group Inc||PFG US||7:30||Investor Conference||Y 2015|
|Axalta Coating Systems Ltd||AXTA US||8:00||Q4 2014 Earnings Call||Q4 2014|
|General Electric Co||GE US||8:30||Investor Meeting - Technology||Y 2015|
|Analog Devices Inc||ADI US||9:00||Annual General Meeting|
|NextEra Energy Inc||NEE US||13:00||Investor Conference||Y 2015|
|MetLife Inc||MET US||14:30||Investor Meeting||Y 2015|
|Memorial Resource Development Corp||MRD US||15:00||Q4 2014 Earnings Call||Q4 2014|
|Skyworks Solutions Inc||SWKS US||Aft-mkt||Skyworks Solutions Replaces PetSmart Inc. in S&P 500|
|Skyworks Solutions Inc||SWKS US||Aft-mkt||Maximus Inc. Replaces Skyworks Solutions in S&P MidCap 400|
|PetSmart Inc||PETM US||Aft-mkt||Skyworks Solutions Replaces PetSmart Inc. in S&P 500|
|Tahoe Resources Inc||THO CN||Aft-mkt||Q4 2014 Earnings Release||Q4 2014||0.103|
|Energen Corp||EGN US||Investment Community Meeting - Day 3||Y 2015|
|Franklin Resources Inc||BEN US||Annual General Meeting|