Ahead of the Bell: Dow futures are trading up 34 points and S&P futures are trading up 3 points. The spotlight will be on the Federal Reserve today as market participants await the central bank's decision on its $85 billion a month stimulus program, which has pumped cheap money into the global monetary system for the last five years. A string of improving economic data in the past few weeks is expected to dominate the Fed's decision as investors cautiously trade into safer asset classes. The FOMC will decide whether the economy is finally resilient enough to withstand less monetary support, or if it is prudent to wait until March to taper. Germany reported business confidence in Europe's biggest economy hit its highest level this month since April 2012, a sign that economic growth could accelerate in 2014.
- On the economic calendar today, November housing starts will be released before the market opens and 952K is expected.
- The dollar is up against the euro and down against the Japanese yen and the British pound. Gold is trading at $1,231. Crude oil is currently trading at $97 a barrel.
- Yesterday, stocks were slightly lower, with investors reluctant to make big bets before results of the latest Federal Reserve policy-setting meeting, which could give some clarity as to when the central bank will begin trimming its stimulus.
- On CNBC today, Gian Fulgoni, Comscore Executive Chairman & Co-Founder talked about online retailers vs. the big box. Fulgoni said channel retailers are under pressure with the shorter holiday shopping season, six days shorter than last year; they opened stores early and that seemed to backfire on them. The traffic they brought in Thanksgiving Day didn't convert to sales anywhere near what the traffic would have done on black Friday. They started off the season down 2% to 3% and that continued the following week. While at the same time, online sales were up 20% plus. Fulgoni thinks the strategy of opening on Thanksgiving Day has backfired on them as people didn't go into the stores on Thanksgiving Day anywhere near the same expectations of spending they would have had on black Friday. Once in the stores Thanksgiving day, consumers didn't go back on black Friday, resulting in a drop in sales. Fulgoni believes retailers are going to do well this year, especially the ones that really figured out how to sell online. Fulgoni thinks we're going to see heavy discounting still through Christmas.
- Have a great day!
Tuesday’s Close
DJIA down 9.31 pts/-0.06%/ 15,875.26
S&P down 5.54 pts/-0.31%/ 1,781.00
Nasdaq down 5.84 pts/-0.14%/ 4,023.68
Wednesday’s Futures
Dow Futures up 34.00 pts/+0.22%
S&P Futures up 3.00 pts/+0.20%
Nasdaq Futures up 3.50 pts/+0.11%
Overseas Markets
FTSE +0.30%
CAC 40 +0.76%
NIKKEI 225 +2.02%
HANG SENG +0.32%
Overseas: World stock markets are mixed today. European markets are higher on signs of an improving euro zone as investors await a decision from the Federal Reserve. Asian markets are flat as traders wait for the Fed to give direction on its bond-buying program.
Economic Reports: Housing Starts (952K expected) at 8:30 a.m.
Top Headlines:
- Harland Clarke Holdings announced it is acquiring Valassis Communications Inc. (VCI) for $34.04 per share in cash, representing a transaction value of approximately $1.84 billion.
- Britain's Centrica is selling its Texas gas-fired power stations to Blackstone (BX) for $685 million in cash and plas to return the proceeds to investors by extending its share buyback program.
- Reports indicate the DOJ is preparing to file civil fraud charges against Citigroup Inc. (C) and Bank of America's (BAC) Merrill Lynch unit over their sale of flawed mortgage securities ahead of the financial crisis.
- JPMorgan Chase & Co (JPM) is suing the FDIC, citing that the agency owes it more than $1 billion in compensation for not assuming legal claims arising from its acquisition of Washington Mutual’s assets after its 2008 financial crisis.
Commodities/Currency:
Gold:up $2.40 to $1,231.20
Oil:up $0.05 to $97.57
EUR/USD 1.3749 -0.0022
USD/JPY 102.9725 +0.3510
GBP/USD 1.6353 +0.0083
Volatility Index (VIX): As of the close of business, Tuesday December 17, 2013 the VIX is up 0.18 at 16.21.
Companies Reporting Quarterly Earnings:
FedEx reports Q2 EPS $1.57, vs. Est $1.64 and Q2 revenue $11.4B, vs. Est $11.43B.
General Mills reports Q2 adj EPS 83c, vs. Est 88c and Q2 revenue $4.88B, vs. Est $4.94B.
Today’s Opening and Closing Bells:
AMC Entertainment Holdings, Inc. (AMC) will visit the NYSE to celebrate the company’s IPO, CEO and President, Gerry Lopez will ring the opening bell.
Duke Energy Visits the NYSE. Lynn J. Good, Duke Energy’s Succeeding President and Chief Executive Officer to Ring The Closing Bell® joined by outgoing Chairman of the Board, Jim Rogers.
Paras Madho – Corporate Actions & Market Watch
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