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TradeTheNews.com US Market Update: Waiting for the FOMC
Tue, 17 Jun 2014 11:19 AM EST
- (US) ICSC Chain Store Sales w/e Jun 13th: w/w +0.4%; y/y: +3.1%
- (PL) Poland May Average Gross Wages M/M: -2.5% v -3.0%e; Y/Y: 4.8% v 4.4%e
- (PL) Poland May Employment M/M: 0.0% v 0.1%e; Y/Y: 0.7% v 0.8%e
- (US) May CPI M/M: 0.4% v 0.2%e; Y/Y:
2.1% v 2.0%e
- (US) May CPI Ex Food and Energy M/M:
0.3% v 0.2%e; Y/Y: 2.0% v 1.9%e
- (US) May CPI Index NSA: 237.900 v 237.612e; CPI Core Index SA: 237.776 v
- (US) May Housing Starts: 1.001M v
1.030Me; Building Permits: 991K v 1.050Me
- (US) Redbook Retail Sales w/e Jun 13th: +3.5% y/y, Jun MTD: -1.6% m/m, Jun
MTD: +3.4% y/y
- (EU) Weekly ECB Forex Reserves: €210.5B v €210.7B prior
- Trading volumes and volatility continue to be very low in US equity markets,
and indices are not doing much this morning ahead of Wednesday's FOMC meeting
and press conference. As of writing, the DJIA and S&P500 are down very
slightly, while the Nasdaq is up 0.15%.
- Today's May CPI report showed
continued gains in inflation, and the core CPI figure is now at the Fed's 2.0%
target figure. On a sequential basis, core CPI increased at its fastest pace
since August 2011 while the core y/y figure is back at the 2.0% level for the
first time since February 2013. The US 10-year yield is heading higher
this morning after the data, gaining nearly 5 bps to trade 2.642%. The
greenback was firmer after the data, with EUR/USD hovering just above the June
low of 1.3503 and the pivotal 1.3477 January low.
- Housing starts fell 6.5% in May, for the first decline in the series in four
months, while the April figures were revised slightly lower. The decline was
broad-based across regions and type of construction. Single-family housing
starts fell 5.9%, while multifamily starts fell 7.6%. Permits declined as well,
led lower by a sharp decline in multi-family permits.
- SolarCity is getting in the solar
panel manufacturing business. The company disclosed a deal to acquire solar
panel technology and manufacturing firm Silevo for $200M in stock.
Although no other acquisitions are currently being contemplated, SolarCity said
it may acquire additional companies as needed to ensure technology leadership,
and it plans to grow internal engineering significantly. SolarCity also said it would build a new
plant in upstate New York with an initial capacity of 32 MW and a targeted
capacity greater than 1 GW within the next two years. Chairman Elon Musk
said the company did not need to become a solar panel manufacturer until now,
but was seeing the risk of panel shortages in the future. Shares of SCTY are up
11% this morning.
- In other solar news, Yingli Green is
up 8% despite a weak first quarter earnings report. The company's
quarterly loss was greater than expected and revenue missed the consensus,
while PV module shipments sank approximately 33% y/y. Positive comments about
the company's pipeline of business and the SolarCity reports helped bolster the
shares. Other major solar names are up 5-7% in the early going today.
- Shares of Coca-Cola perked up in the
premarket after Fox News's Maria Bartiromo aired a segment with Wintergreen
Advisors about the possibility of Berkshire Hathaway (9% holder) and 3G taking
Coca-Cola private. Wintergreen said it would make sense for Berkshire to
look at a leveraged buyout of Coca-Cola, but just after the open, Warren
Buffett told CNBC there was no chance he would take the company private. Share
of KO jumped 1.3% on the reports and then gave up their gains. PEP dropped 0.5%
on the reports.
- Steel Dynamics offered second quarter guidance yesterday evening and shares
are up slightly on the news. After a rough winter, STLD said profitability
would be higher in the quarter on a sequential basis as both shipments and
metal spreads are improving, despite significantly increased import activity.
The winter weather-induced slowdown in the domestic market has subsided and
demand from end markets is trending favorably.
- 11:30 (US) Treasury to sell 4-Week Bills
- 16:30 (US) Weekly API Oil Inventories
- 19:50 (JP) Japan May Trade Balance: -¥1.189Te v -¥808.9B prior; Adj Trade
Balance: -¥1.030Te v -¥844.6B prior
- 19:50 (JP) Bank of Japan (BOJ) May
20-21 meeting minutes
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