Stock futures (/ES) are slightly higher in early trading as the market looks to extend its move following yesterday’s late afternoon rally. Monday’s move was on light volume, suggesting that the market’s ability to continue higher may be limited. Positive retail sales and above estimated results from Citigroup (C) lifted stocks during the session. Gold futures (/GC) are getting hammered this morning and are close to breaching the $1300 level to the downside. The CBOE Volatility Index (VIX) was choppy during the back and forth session yesterday. The ‘Fear Gauge’ ended the session down 5% as stocks firmed into the close. Volumes should remain under pressure during the holiday-shortened week, which could potentially provide some added volatility and big swings for stocks.
Treasuries are fractionally lower with the 10-year yield having inched up to 2.66% on light volume. Global bonds are mostly higher, paced by the European outliers. Equities are mixed, having traded narrowly near unchanged levels. There was plenty of overnight news and mostly disappointing. Chinese money supply and loan data was a little weaker than expected, which sent their stocks lower. German ZEW also fell short of forecasts, while U.K. BRC retail sales slowed. Ukraine remains tense which also weighed on stocks. In the U.S. the calendar remains crowded with March CPI, April Empire State, February capital flows, and the NAHB homebuilder sentiment index on tap. There is Fed-speak from Chair Yellen who will give opening remarks at the Atlanta Fed's Financial Market Conference. There's also Fed-speak from the hawkish Plosser, and doves Rosengren and Kocherlakota.
Stock Stories:
Coca-Cola (KO) – Fizzy – The beverage giant posts EPS that is in-line while top line revenue beats by $20M. The company states that it is gaining market share and restoring momentum in the sector. The firm also stated that currency exchange rates will negatively affect operating income going forward. Shares are up 1.3% in the pre-market.
Johnson & Johnson (JNJ) – Double beat – The consumer staples company reported a positive quarterly report this morning. The company beat on the top and bottom lines and slightly raised guidance for FY14. The stock is up over 1% ahead of the opening bell.
Major Economic Reports:
6:45 am CT – GS Store Sales – Down 0.3% for the week
