Share This Story
TradeTheNews.com US Market Update: Equities Close Out the Week on a Choppy Note
Fri, 16 May 2014 10:57 AM EST
- (MY) Malaysia Q1 GDP Y/Y: 6.2% v 5.7%e
- (MY) Malaysia Q1 Current Account Balance (MYR): 19.8B v 16.6e
- (EU) ECB: 5 Banks to repay total €6.2B in 3-Year LTRO Funds vs. €3.0Be
- (BR) Brazil Mar Economic Activity Index M/M: -0.1% v -0.1%e; Y/Y: -0.1% v
- (IN) India Forex Reserves w/e May 9th: $313.8B v $311.9B prior
- (IS) Iceland Apr Unemployment Rate: 4.1% v 4.5% prior
- (US) Apr Housing Starts: 1.072M v
980Me; Building Permits: 1.080M v 1.010Me
- (CA) Canada Mar Int'l Securities Transactions: -C$1.2B v +C$7.0Be
- (BE) Belgium Mar Trade Balance: -€0.7B v -€0.4B prior
- (US) May Preliminary University of
Michigan Confidence: 81.8 v 84.5e
- Trading has been very choppy this morning, with the DJIA flat, the S&P500
down 0.12% and the Nasdaq down 0.33%.
- The housing data over recent months has not been encouraging, inspiring lots
of talk that the bounce back in the industry was over. This morning's April housing starts report paints a different picture:
starts surged 13.2% m/m to 1.1 million units, widely beating expectations, led
by a big +39.6% m/m gain in multi-family units. Permits surged 8% m/m to their
highest level since June 2008. Housing starts grew m/m in every region
of the US, although it's worth noting that single-family unit starts were up
just 0.8% m/m.
- The New York Fed published its May staff forecast, which foresees 3%
annualized GDP growth over the remainder of 2014 and 3% annualized GDP growth
in 2015. Staff see stronger employment growth, with monthly NFPs averaging
around 225K for the remainder of 2014.
- Shares of General Motors opened down
2.0% or so on reports out just before the open that the company has entered a
consent decree with US Department of Transportation over the recent recalls.
Under the agreement, GM will pay a "substantial" fine, scaled to the
seriousness of the delay in the switch recall. Separately, GM said it was
working with Delphi to step up production of parts for the recalls.
- Investors don't like Darden's arrangement to spin off Red Lobster to Golden
Gate Capital and shares of the casual dining name are down nearly 5%. Darden is getting $2.1 billion for Red
Lobster, netting $1.6 billion on the deal, using $1.0 billion of the proceeds
to retire debt and adding the balance to its share buyback program.
Darden said the transaction would be dilutive to FY15 EPS and accretive to
- Retailers JC Penny and Nordstrom are off their post-market highs in cash
trading this morning, up 16% and 12%, respectively. Analysts have raised
ratings and price targets on both names overnight. JC Penny's turnaround is
clearly taking hold, as the company reported its second consecutive quarter of
comp growth after nine straight quarters of decline.
- The pharma industry dealmaking just won't stop: today Abbot said it would acquire Latin American company CFR Pharmaceuticals
for $2.9 billion. The deal will more than double Abbott's Latin American
branded generics presence, and the company says the deal will add about $900
million to its sales in the first full year.
- 11:50 (US) Fed's Bullard speaks on Monetary Policy in Little Rock, Ark.
- 15:00 (AR) Argentina mar Economic Activity Index M/M: No est v 0.0% prior;
Y/Y: 0.8%e v 1.3% prior
- 15:00 (AR) Argentina Apr Wholesale Price Index M/M: % v 2.4% prior; Y/Y: % v
- Ireland Sovereign Debt Rating might be published by Moody's
- (PT) Portugal formally exits its EU bailout program
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."