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TradeTheNews.com US Market Update: Equities in the Red Again
US Market Update: Equities in the Red Again
Mon, 06 Jan 2014 11:08 AM EST
- Asia equity markets saw their second straight session of losses in the wake
of weak PMI data out of China.
- In Europe, losses were muted by impressive Spain and Ireland PMI services
data. Hawkish ECB comments and more talk of austerity in the UK in 2015 are
also in play.
- (PT) European Parliament Delegation visits Portugal
- (DE) Germany Dec CPI Baden Wuerttemberg M/M: No est v 0.3% prior; Y/Y: No est
v 1.3% prior
- (DE) Germany Dec CPI Bavaria M/M: % v 0.1% prior; Y/Y: % v 1.0% prior
- (PT) Portugal Dec Consumer Confidence Index: -40.4 v -41.8 prior; Economic
Climate Indicator: -1.0 v -1.2 prior
- (CL) Chile Nov Economic Activity M/M: 0.5% v 0.6%e; Y/Y: 2.8% v 3.1%e
- (BR) Brazil Dec PMI Services: 51.7 v 52.3 prior; 3rd straight month of growth
- (DE) Germany Dec Preliminary CPI M/M: 0.4% v 0.4%e; Y/Y: 1.4% v 1.4%e
- (DE) Germany Dec Preliminary CPI EU Harmonized M/M: 0.5% v 0.7%e; Y/Y: 1.2% v
- (US) Dec Final PMI Services: 55.7 v 56.2 prelim
- (CA) Canada Nov Industrial Product Price M/M: +0.1% v -0.2%e; Raw Materials
Price Index M/M: -4.1% v -1.8%e
- (SG) Singapore Dec Purchasing Managers Index: 49.7 v 51.0e; Electronic Sector
Index: 50.1 v 51.0e
- (US) Dec ISM Non-Manufacturing Composite:
53.0 v 54.6e
- (US) Nov Factory Orders: +1.8% v
- US equities are in the red this morning. The S&P 500 struggles to avoid a
third straight session of losses as 2014 gets off to a rather tepid start. As
of writing, the DJIA is down 0.18%, the S&P500 is down 0.01% and the Nasdaq
is down 0.48%.
- The ISM non-manufacturing services
index has disappointed expectations for the second month in a row and dropped
from 53.9 in November to 53.0 in December, for the lowest print since June.
Both inventories and new orders dropped into contraction territory: inventories
slid from 54.0 to 48.0 while new orders dropped from 56.4 to 49.4.
- The euro has turned around after a 2014 New Year's slide from the 1.3760
level to 1.3570. As of writing, the pair had advanced to 1.3637. The yen has
strengthened thanks to dollar softness as well, with USD/JPY dropping out of
the 105 handle overnight. Oil has slid a little lower after Thursday and
Friday's big moves, ducking into the $93 handle.
- Liberty Media has revised its
relationship with subsidiary Sirius XM by announcing its goal to acquire the
shares in the satellite radio provider it doesn't already own. The
non-binding offer is to pay a tiny premium to the closing price of Sirius when
the offer was made of about $3.68 per share. Press sources suggest the Liberty
offer for Sirius may be a prelude to a formal offer for Time Warner Cable via
Charter Communications. Back in mid-December, Charter was said to be preparing
a "bear hug" offer for Time Warner valued under $135/shr, well below
the $150/shr it reportedly desires.
- Some high-profile asset deals are making lots of headlines. T-Mobile is
buying a 700 mhz block of spectrum from Verizon Wireless in exchange for $2.4B
in cash and certain other spectrum licenses. General Electric reached a deal to
acquire cell culture and gene modulation assets from Thermo Fisher Scientific
for about $1.06 billion. With this deal, GE Healthcare will strengthen its
technologies for the discovery and manufacture of new medicines, vaccines and
- Verso Paper is up an astonishing 255%
after reaching a deal to acquire NewPage Holdings Inc. for $1.4B.
Privately held NewPage produces printing and specialty papers. According to the
company, the deal will boost the firm's annual revenue to $4.5B from $1.5B
reported in the last fiscal year.
- Analyst commentary out of Morgan Stanley is adding to the highly volatile
moves in shares of Twitter. Morgan
Stanley downgraded Twitter to sell from hold and said Facebook and Google would
be better stocks to own. The firm hiked its PT on Google, citing YouTube
and Android, plus local advertising opportunities. TWTR is down 7% as of
writing, while GOOG is up slightly. FB is unchanged.
- 11:30 (US) Treasury to sell combined $54B in 3-Month and 6-Month Bills
- 17:00 (US) full Senate confirmation vote for Fed Chair nominee Yellen
- 19:30 (AU) Australia Nov Trade Balance: -A$300Me v -A$529M prior
- 20:00 (PH) Philippines Dec CPI M/M: No est v 0.4% prior; Y/Y: 4.0%e v 3.3%
prior; CPI Core Y/Y: No est v 2.8% prior
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