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TradeTheNews.com US Market Update: Focus on Congress as Taper Seen as Inevitable, Impact Mild
US Market Update: Focus on Congress as Taper Seen as Inevitable, Impact Mild
Wed, 18 Sep 2013 11:08 AM EST
- (PT) Portugal Aug PPI M/M: 0.0 v 0.6% prior; Y/Y: 1.1% v 1.3% prior
- (US) MBA Mortgage Applications w/e Sept 13th: +11.2% v -13.5% prior
- (BR) Brazil Sept Final IGP-M Inflation: 1.4% v 0.1% prelim
- (ZA) South Africa July Constant Retail Sales M/M: -0.5% v 0.6%e; Y/Y: 2.8% v
- (PL) Poland Aug Sold Industrial Output M/M: -4.5% v -3.8%e; Y/Y: 2.2% v 2.7%e
- (PL) Poland Aug PPI M/M: -0.3% v 0.1%e v 0.2% prior; Y/Y: -1.1% v -0.7%e
- (US) Aug Housing Starts: 891K v
923Ke; Building Permits: 918K v 950Ke
- (US) DOE Crude: -4.4M v -1.0Me; Gasoline: -1.6M v +0.5Me; Distillate: -1.1M v
- Global markets have been choppy heading into the big Fed announcement today,
without racking up any big gains or losses. US equities were looking flattish heading into the session, but have
taken a turn into the red as GOP stonewalling in Washington on a budget
extension continues. As of writing, the DJIA is -0.20%, the S&P500
is -0.14% and the Nasdaq is flat.
- The August starts and permits data is the latest housing report that suggests
the industry has leveled off after months of surging business. Note that Aug single-family starts are still growing,
up 7% at an annualized rate, while permits were up 3% at an annualized rate, to
their highest level since May 2008. Shares of the homebuilders are in
the red this morning.
- The FOMC's big moment comes later this afternoon, with the decision at
14:00ET and Chairman Bernanke's press conference at 14:30ET. After bottoming
out on Monday at seven-week lows versus the greenback, the euro has rallied
into the upper half of its recent range, hitting 1.3365 overnight. EUR/USD has
softened a bit coming into the US session, to around 1.3340. Note that in
Italy, it is looking as if Berlusconi may refrain from blowing up the
government as the Senate panel votes this morning to strip him of his status,
ahead of a full Senate vote in the next few weeks.
- With Congress racing toward the end
of the federal government's FY on Sept. 30, the deadline to avert a government
shutdown, the House GOP continues to place roadblocks in the way of short-term
budget extension. Senate majority leader Reid and minority leader
McConnell warned that there is no plan B if things fall apart in the House.
Last week the House had to shelve a two-step plan that would have funded the
government and allowed a separate (but symbolic) vote on defunding Obamacare.
This morning House Speaker Boehner is pushing a plan for a single bill that
both funds the government and defunds Obamacare, although it has little chance
of passing the Senate, bringing a shutdown even closer to becoming a reality.
- Walgreen joined many other big
corporations in moving a big chunk of its workforce off the company's health
insurance plan and onto private online marketplaces known as exchanges.
Approximately 160K employees, or 67% of Walgreen's workforce, will join Aon's
exchange, which begins operations on Jan 1st, 2014, although the first
Obamacare exchanges will start up next month. Shares of AON are up 2.5% or so.
- Shares of Adobe are up 7.5% this morning despite missing consensus
expectations in both its Q3 report and its Q4 guidance. Investors are fired up
about the firm success in moving customers onto recurring software
subscriptions under its Creative Cloud service. Multiple analysts raised PTs on
the firm. FedEx is up 2.8% thanks to
decent Q1 results and news that its express unit will increase shipping rates
by an average of 3.9% effective January, 2014.
- 11:30 (BR) Brazil Central Bank weekly currency flow data
- 12:00 (CA) Canada to sell 2-year Notes
- 14:00 (US) FOMC Interest Rate
Decision: expected to leave Interest Rates unchanged at 0.25%
- 14:00 (US) Fed releases Summary of
- 14:30 (US) Fed Chairman Bernanke
holds post rate decision press conference in Washington
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