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TradeTheNews.com US Market Update: Lingering Unease Forces Markets Lower
Wed, 08 Oct 2014 11:20 AM EST
- (PL) Poland Central Bank (NBP) cuts base rate by 50 bps, more than expected,
- (BR) Brazil Sept IBGE Inflation IPCA M/M: 0.6% v 0.5%e; Y/Y: 6.8% v 6.7%e
- (CA) Canada Sept Housing Starts: 197.3K v 198.0Ke
- (US) Weekly DOE Crude Inventories +5.02M v +2Me, gasoline: +1.18M v -1Me,
distillate: +0.44M v -1Me
European and US equities are decaying this morning as the sense of unease about
Europe lingers over global markets. As of writing, the DJIA is down 0.21%, the
S&P500 is down 0.47% and the Nasdaq is down 0.53%.
WTI crude is making fresh 16-month lows
this morning after dropping into the $87 handle on deepening concerns about global
demand. Last night the weekly API inventory report saw surprising gains
in crude and gasoline inventories, with crude seeing its highest weekly build
since April. Additionally, analysts suggested that the Saudi Arabia price
reductions out last week were aimed at boosting refinery margins in Asia and
were not the opening move in an OPEC price war.
Homeland Security has ordered agents at
airports to implement measures to observe everyone coming into the US for
potential signs of Ebola infection. Officials did not elaborate
specifically how they would be making observations, but that it would include
watching for general signs of illness. Additionally, border agents are handing
out factsheets to travelers with details of what symptoms to look for and directions
to call a doctor if they become sick.
Shares of Sears Holding were halted
earlier this morning on a report that one Sears vendor halted some shipments
due to reduced insurance coverage. Reportedly three of the troubled
retailer's insurance providers were looking to reduce coverage, prompting at
least one supplier to halt shipments. SHLD is down 12%. There are also reports
circulating that the company has negative operating capital.
The long drama of Allergan saw a new chapter yesterday. Reports circulated that Actavis might be considering an offer for
Allergan this week, with price talk mentioning a $200/shr offer or higher. Last
night, Valeant and Ackman's Pershing Square preemptively raised their spurned
bid for Allergan by $15 to $191/shr.
In earnings, Costco beat expectations and reported solid comp store sales gains
in its fourth quarter and shares of COST are up 2%. Yum Brands saw some
softness in the post market yesterday after lowering if FY14 guidance and
missing third quarter revenue expectations. The firm warned that while China
sales continue to be impacted by the OSI food scandal, things are looking up.
YUM is flat as of writing.
JCPenny is holding is first analyst day in years this morning and investors
don't like what they're hearing. The firm said it still sees a FY14 comp
increase and warned that third quarter comps would be in the low single digits.
Shares fell 6% before being halted mid morning.
- 11:30 (BR) Brazil Sept Commodity Price Index M/M: No est v -1.3% prior; Y/Y:
No est v -2.7% prior
- 13:00 (US) Treasury to sell $21B in 10-Year Notes Reopening
- 14:00 (US) Fed Minutes from Sept.
16-17 FOMC Meeting
- 16:30 (US) Former Fed Chairman Bernanke speaks on Global Economy in New York
- 20:00 (AU) Australia Oct Consumer Inflation Expectation Survey: No est v 3.5%
- 20:30 (AU) Australia Sept Employment Change: -30.0Ke v +121.0K prior;
Unemployment Rate: 6.2%e v 6.1% prior
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