Ahead of the Bell: Dow futures are trading up 4 points and S&P futures are trading down 2 points. Global stock markets are rallying on this holiday shortened trading session as equity indexes hit all-time highs, driving investors into riskier bets and away from traditional safe-haven assets such as gold. An improving global economic picture coupled with an upbeat forecast for the US economy has prompted the risk on trade, now that the Federal Reserve has announced it will scale back its monetary policy. According to reports, China will likely target 7.5% growth rate for 2014, supported by a steady recovery in the country's exports, fueled by stronger demand from developed economies.
- On the economic calendar today, November durable goods orders will be released before the market opens and a 1.5% increase is expected, vs. a 2.0 drop in October. New home sales for November are due out after the opening bell and 450K is forecasted, vs. 354K the month before. The Richmond Fed Manufacturing Index will also be out after the market opens and a 10 is expected.
- The dollar is up against the euro and down against the Japanese yen and the British pound. Gold is trading at $1,199. Crude oil is currently trading at $99 a barrel.
- Yesterday, stocks rallied to the highest level in almost six years as Apple Inc. jumped and the International Monetary Fund indicated it would raise its outlook for the American economy.
- On CNBC today, Chris Rupkey, Chief Financial Economist at Bank of Tokyo- Mitsubishi UFJ, talked about the market’s rally to new highs and the outlook for 2014. Rupkey said no one is talking about the consumer. Growth is moving very fast right now and it came from nowhere. He added fourth quarter GDP looks like it could be better than forecasted as inflation is going nowhere and spending is taking off. He thinks the Federal Reserve will wind down its stimulus program soon, at least by February or March. Rupkey went on to say 2014 is shaping up to be better than expected.
- Have a great day and Merry Christmas!
Monday’s Close
DJIA up 73.47 pts/+0.45%/ 16,294.61
S&P up 9.67 pts/+0.53%/ 1,827.99
Nasdaq up 44.16 pts/+1.08%/ 4,148.90
Tuesday’s Futures
Dow Futures up 4.00 pts/+0.04%
S&P Futures down 2.00 pts/-0.08%
Nasdaq Futures down 2.50 pts/-0.07%
Overseas Markets
FTSE +0.23%
CAC 40 -0.06%
NIKKEI 225 +0.12%
HANG SENG +1.13%
Overseas: World stock markets are up today. European markets are higher as investor’s confidence in the US economy improved. Asian markets are also higher as investors seek better returns from emerging economies.
Economic Reports: Durable Goods Orders expected to be 1.5% at 8:30 a.m., FHFA House Price Index expected to be 0.4% at 9:00 a.m., New Home Sales expected to be 450K and Richmond Fed Manufacturing Index expected to be 10 at 10:00 a.m.
Top Headlines:
- Reports indicate private equity firm Carlyle Group LP (CG) is close to a deal to acquire Johnson & Johnson's (JNJ) ortho clinical diagnostics unit, in a deal expected to be worth around $4 billion.
- Bloomberg reports The Blackstone Group (BX) has confidentially filed for an IPO of its La Quinta Holdings lodging chain to capitalizing on rising stock prices and a rebound in hotel occupancies.
- Reports indicate Target Corporation (TGT) is working with investigators and several state attorneys general, to update them on the investigation, while trying to contain the damage from a 20-day breach of credit- and debit-card security.
Commodities/Currency:
Gold:up $2.40 to $1,199.20
Oil:up $0.24 to $99.15
EUR/USD 1.3679 -0.0019
USD/JPY 104.2765 +0.0875
GBP/USD 1.6368 +0.0014
Volatility Index (VIX): As of the close of business Monday, December 23, 2013 the VIX is down 0.76 at 13.03.
Companies Reporting Quarterly Earnings:
None as of yet
Today’s Opening and Closing Bells:
Cast of New York City Ballet’s Production of George Balanchine’s The Nutcracker will ring the opening bell.
Rock and Roll Hall of Famer Darlene Love Rings in the Holiday Season and will ring the closing bell.
Paras Madho – Corporate Actions & Market Watch
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