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TradeTheNews.com US Market Update: Correction Enters Day Three
Tue, 23 Sep 2014 11:13 AM EST
- (HU) Hungary Central Bank leaves Base Rate unchanged at 2.10%
- (CA) Canada July Retail Sales M/M: -0.1% v 0.5%e; Retail Sales Ex Auto M/M:
-0.6% v 0.0%e
- (US) July FHFA House Price Index M/M:
0.1% v 0.5%e
- (MX) Mexico July Retail Sales Y/Y: 2.0% v 1.6%e
- (US) Sept Preliminary Markit US
Manufacturing PMI: 57.9 v 58.0
- (US) Sept Richmond Fed Manufacturing Index: 14 v 10e
European indices were broadly weaker
this morning, dragging down US futures and setting up for a third consecutive
session of equity losses in New York. Indices ran back into positive
territory in the first hour of trading, however they have dropped right back
into the red mid morning. As of writing, the DJIA is down 0.23%, the S&P500
is down 0.15% and the Nasdaq is flat as the fever in momentum declines seems to
have broken for now.
The flash Markit manufacturing PMI data for September was in-line with
expectations and up slightly from the August reading. Markit wrote that "the headline Manufacturing PMI index - which is
designed to signal changes in prevailing business conditions in the U.S.
manufacturing sector - held at the same level as August's 52-month high."
Moderate FOMC voter James Bullard weighed in on the latest move by the Fed.
Bullard said it would be natural to drop the considerable time language at the
October meeting and said he still sees the first rate hike towards the end of
Q1 of 2015.
With Congress unlikely to act on tax reform anytime soon, the Treasury has changed the way it interprets tax law in an attempt to
unilaterally make inversions "substantially less appealing."
The package includes small steps, including moves to change the way foreign
ownership is gauged (companies can invert if foreign stockholders own more than
20%) and to make it harder for parents to extract profits from subsidiaries.
Shares of AstraZeneca, Abbvie, Shire, Medtronic, Smith & Nephew and Perrigo
are all down on the report.
Tekmira was a big mover yesterday and again this morning, up 16% in total in
the two session, but well off its morning highs. Yesterday the firm disclosed
that it reached agreement with US and Canadian regulators to use its RNAi
Therapeutic against Ebola infection. Last night, it came out that Dr. Rick
Sacra, who contracted the Ebola virus in West Africa and was being treated in
Nebraska, received the Tekmira treatment and is now nearly well enough to go
home. Then this morning, Tekmira said it would join an international consortium
to conduct Ebola therapy trials.
Two global fertilizer giants, CF Industries and Yara International of Norway,
are discussing a 50/50 merger deal. The combined market value of the companies
would be about $27.4 billion, making it worth about as much as Canada's Potash
Corp, the world's largest fertilizer producer. CF and Yara are the two biggest
nitrogen fertilizer producers. It remains unclear whether the deal would be
structured as an inversion.
- 11:30 (US) Treasury to sell 4-Week Bills
- 13:00 (US) (US) Treasury to sell 2-Year Notes
- 15:00 (AR) Argentina Aug Trade Balance: No est v $803M prior
- 21:15 (US) Fed's George speaks on the
Economy in Cheyenne, Wyoming
- 21:35 (JP) Japan Sept Preliminary
Manufacturing PMI: No est v 52.2 prior
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