Friday, December 26th, 2014View Older Reports
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OVERNIGHT MARKETS AND NEWS
March E-mini S&Ps (ESH15 +0.14%) this morning are up +0.14%, although European stock markets remained closed for the Christmas holiday and the U.K. markets are shut for Boxing Day. The Russian ruble posted a 3-week high against the dollar before falling back on speculation the government is ordering exporters to sell foreign currency. Asian stocks closed mostly higher: Japan +0.06%, China +3.31%, Hong Kong and Australia closed for holiday, Taiwan +0.60%, Singapore +0.23%, South Korea -0.01%, India +0.12%. Japanese stocks closed higher on speculation the BOJ may be forced to expand stimulus after Japan Nov CPI rose at the slowest pace in 8 months and after Nov industrial production unexpectedly declined. Chinese stocks gained on reports the PBOC plans to waive temporarily a requirement for banks to set aside reserves for some deposits. Commodity prices are mostly higher. Feb crude oil (CLG15 +0.64%) is up +0.70%. Feb gasoline (RBG15 +0.68%) is up +0.61%. Feb gold (GCG15 +1.99%) is up +2.05%. Mar copper (HGH15 +0.04%) is down -0.05% after weekly Shanghai copper inventories rose +12,693 MT to a 4-1/2 month high of 105,522 MT, a sign of weak Chinese demand. Agriculture prices have not yet opened. The dollar index (DXY00 +0.05%) is up +0.12%. EUR/USD (^EURUSD) is down -0.27%. USD/JPY (^USDJPY) is up +0.16%. Mar T-note prices (ZNH15 +0.02%) are up +1 tick.Japan Nov national CPI rose +2.4% y/y, less than expectations of +2.5% y/y and the slowest pace of increase in 8 months. Nov national CPI ex-fresh food climbed +2.7% y/y, right on expectations, and Nov national CPI ex food & energy rose +2.1% y/y, right on expectations.
The Japan Nov jobless rate remained unchanged at 3.5%, right on expectations. The Nov job-to-applicant ratio unexpectedly rose +0.02 to 1.12, better than expectations of unch at 1.10 and the highest in 22-1/2 years.
Japan Nov industrial production unexpectedly fell -0.6% m/m, weaker than expectations of +0.8% m/m. On an annual basis Nov industrial production fell -3.8% y/y, more than expectations of -2.4% y/y and the most in 17 months.
Japan Nov retail sales unexpectedly fell for a second month as it slid i0.3% m/m, weaker than expectations of +0.2% m/m. On an annual basis Nov retail sales rose +0.4% y/y, less than expectations of +1.1% y/y.
Japan Nov overall household spending fell -2.5% y/y, less than expectations of -3.6% y/y, but still the ninth consecutive month of year-over-year declines.
U.S. STOCK PREVIEW
There are no U.S. economic reports today. There is only one of the the Russell 3000 companies that reports earnings today: Turtle Beach Corp. There are no equity conferences this week.
OVERNIGHT U.S. STOCK MOVERS
The International Council of Shopping Centers reports that early retail estimates show the best holiday sales in 3 years.Novartis (NVS +0.71%) announced that the Japanese Ministry of Health, Labour and Welfare approved its drug Cosentyx for the treatment of both psoriasis vulgaris and psoriatic arthritis.
DigiTimes reports that Sony (SNE +2.21%) is set to launch a large-size tablet in Q1 of 2015 that will sell for more than $1000.
Bloomberg reports that the New York Supreme Court rejected Credit Suisse's (CS -0.04%) attempt to block a lawsuit seeking $10 billion in damages from the NY Attorney General accusing the bank of fraud in sales of mortgage-backed securities.
Citigroup (C +0.22%) announced that it has reached a definitive agreement to sell its retail banking business in Japan to Sumitomo Mitsui Banking Corporation.
The Biotechnology Value Fund reported a 6.29% passive stake in Sophiris Bio (SPHS +4.55%) .
MARKET COMMENTS
Mar E-mini S&Ps (ESH15 +0.14%) this morning are up +3.00 points (+0.14%). The S&P 500 index on Wednesday posted a fresh record high but fell back on profit-taking and closed little changed: S&P 500 -0.01%, Dow Jones +0.03%, Nasdaq +0.09%. Supportive factors included (1) the unexpected decline in weekly initial unemployment claims by -10,000 to 280,000, better than expectations of +1,000 to 290,000 and the lowest in 7 weeks, and (2) optimism that momentum in the U.S. economy can be sustained with the Fed’s promise to be patient on raising interest rates along with the recent plunge in crude to a 5-1/2 year low, which has reduced gasoline prices and should give consumer spending a boost.Mar 10-year T-notes (ZNH15 +0.02%) this morning are up +1 tick. Mar 10-year T-note futures prices on Wednesday slipped to a 2-week low and closed lower: TYH5 -1.50, FVH5 -0.50. Bearish factors included (1) the unexpected decline in U.S. weekly initial unemployment claims to the lowest level in 7 weeks, and (2) the rally in the S&P 500 to a new record high, which curbed safe-haven demand for Treasuries.
The dollar index (DXY00 +0.05%) this morning is up +0.106 (+0.12%). EUR/USD (^EURUSD) is down -0.0033 (-0.27%). USD/JPY (^USDJPY) is up +0.19 (+0.16%). The dollar index on Wednesday closed slightly lower. Closes: Dollar index -0.097 (-0.11%), EUR/USD +0.00023 (+0.02%), USD/JPY -0.209 (-0.17%). Bearish factors included (1) profit-taking and long liquidation after the dollar index posted an 8-1/2 year high on Tuesday, and (2) reduced safe-haven demand for the dollar with the rally in stocks.
Feb WTI crude oil (CLG15 +0.64%) this morning is up +39 cents (+0.70%) and Feb gasoline (RBG15 +0.68%) is up +0.0094 (+0.61%). Feb crude and Feb gasoline prices on Wednesday closed lower with Feb gasoline at a contract low. Closes: CLG5 -1.27 (-2.22%), RBG5 -0.0561 (-3.54%). Bearish factors included (1) the unexpected +7.27 million bbl surge in weekly EIA crude supplies to a 6-month high of 387.21 million bbl, more than expectations for a -2.5 million bbl draw, (2) the +4.08 million bbl jump in EIA gasoline stockpiles to a 9-1/2 month high of 226.1 million bbl, and (3) the increase in crude supplies at Cushing, OK, the delivery point of WTI futures, for a third week as they climbed +973,000 bbl to a 9-month high of 28.8 million bbl.
