Stock futures (/ES) are relatively flat following yesterday’s big advance. Stocks are set to take a slight breather at the open after a big two-day run higher. Yesterday's dovish FOMC minutes capped by remarks from Chicago Fed boss Charles Evans continues to hold effect in the bond market, where the 10-year Treasury yield is down another three basis points to 2.65%. News that rate hikes might not be coming as quick as expected has gold staying higher as well. The CBOE Volatility Index fell sharply yesterday as the Bulls took control of stocks. The ‘Fear Gauge’ was off 7% yesterday and should continue lower if stocks remain in positive territory. Although stocks shook off recent weakness, we still believe volatility will pick up or at least consolidate at or near current levels.
Overseas equities are mixed after opening gains faded. Chinese trade data disappointed (exports post first back-to-back monthly decline since 2009), though it's being downplayed. The ECB's monthly report was a close copy of Draghi's recent comments. The Bank of England maintained a steady policy stance as expected. In the U.S., the FOMC Minutes will continue to reverberate, but data picks up a bit with weekly initial jobless claims, March trade prices, and the March Treasury budget. Also today, the Treasury reopens $13 B in 30-year bonds, the final leg of the week's auctions. Focus will also turn to earnings as quarterly reports are due from heavyweights JP Morgan Chase (JPM) and Wells Fargo (WFC) tomorrow morning.
Stock Stories:
Wal-Mart (WMT) – It’s Still Wal-Mart – Wal-Mart (WMT) strikes a deal to sell Wild Oats brands to consumers at prices less than what organic food usually costs. The pricing set by Wal-Mart on the organic food brands is expected to be lower than comparable items from Whole Foods Market (WFM). Shares are flat in the pre-market.
Major Economic Reports:
7:30 am CT– Weekly Jobless Claims
7:30 am CT– Import & Export Prices
9:30 am CT – Natural Gas Inventories
10:50 am CT – Fed’s Evans speaks
12:00 pm CT–30-year Bond Auction Results
1:00 pm CT – Treasury Budget
Notable Earnings:
Before Market: FDO, PIR, TITN
After Market: NQ
Friday – 4/11: FAST, JPM, WFC |
发表于 2014-4-10 08:30
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