Ahead of the Bell: Dow futures are trading 23 points lower, and S&P futures are trading lower by 2.0 handles. U.S. equity futures are currently pointing to a slightly lower open a day after the S&P 500 hit a fresh record close. There doesn’t seem to be any directional drivers in play thus far, however investors will focus on a bevy of U.S. economic data to be released just before and after the open, comments from Fed Presidents Lockhart and Bullard, as well as the potential for Russian intervention in the Ukraine as new reports reveal armed men have taken control of two airports.
- On today’s economic calendar, the first revision of Q4 GDP will be released at 8:30am ET, followed by Chicago PMI, Michigan Consumer Sentiment, and Pending Home Sales shortly after the open of trading.
- Thedollar is lower against the Euro and higher against the yen. Gold is trading at 1330.0, and Oil is trading at $102.32, both are fractionally lower.
- Yesterday, stocks were positive with the S&P 500 taking out the key 1,850 level and closing at a new record high. There were no new catalysts driving the action, although markets seemed to get a lift from Fed Chair Yellen's Senate testimony, even if she did not diverge from or offer new comments since her House session two weeks ago.
- On CNBC this morning, St. Louis Fed president & CEO James Bullard shared his thoughts on the Fed's asset buying program and the impact recent weather in the U.S. has had on economic data. Bullard said although he feels the weather has had some impact, he is not revising his forecasts’ and is still optimistic for 2014. He feels the jobless rate can be below 6% by the end of 2014 along with a stronger GDP than 2013.
- Thanks and have a great day!
Thursday’s Close
Dow closed up 74.24 pts / +0.46% to 16,272.65
S&P closed up 9.13 pts / +0.49% to 1,854.29
Nasdaq closed up 26.87 pts / +0.63% to 4,318.93
Friday’s Futures
Dow Futures down 23 pts/-0.21%
S&P Futures down 2 pts/-0.23%
Nasdaq Futures down 4pts/-0.06%
Overseas Markets
FTSE -0.35%
CAC 40 -0.55%
NIKKEI 225 -0.55%
HANG SENG +0.04%
Overseas: European and Asian markets are mixed with Europe drifting lower as market participants assess a smattering of corporate results and economic data from around the region. The situation in the Ukraine continues to deteriorate and Cyprus re-emerges as a possible concern. In Asia, a slew of Japanese data had little effect and left Asian markets mixed and close to unchanged.
Today’s Economic Reports:
- GDP (first revision-Q4) at 8:30am ET – consensus +2.5%, prior +3.2%
- GDP Deflator (first revision-Q4) at 8:30am ET – consensus +1.3%, prior +1.3%
- Chicago PMI (Feb) at 9:45am ET - consensus 56.1, prior 59.6
- Michigan Consumer Sentiment (Feb-Final) at 9:55am ET - consensus 81.5, prior 81.2
- Pending Home Sales (Jan) at 10:00am ET – consensus +1.0%, prior (8.7%)
Top Headlines:
- Fed presidents Lockhart and Bullard (both non-voters) said recent economic data has been inconclusive and unable to determine extent of weather impact. Recall Fed Chair Yellen said yesterday recent data softness may partly reflect adverse weather, but at this point, it is difficult to discern how by much.
- Tesla Motors Inc. (TSLA) has raised $2B in the largest U.S. convertible-bond offering in over two years, the Financial Times reports. The electric-car company had originally sought to sell only $1.6B of debt, but increased the amount due to strong demand.
- Gap Inc. (NYSE: GPS) reported a 13% fall in net profit following Thursday’s close, and a 3% slide in revenue as the retailer offered large discounts during the holiday season in order to attract shoppers. Revenue missed forecasts slightly, although EPS of $0.68 beat consensus, while same-store sales rose 1%.
- Retailer Jos. A. Bank (JOSB) has rejected a recent offer from rival The Men’s Wearhouse (NYSE: MW) yet said they will agree to meet with MW to consider a higher price.
- Salesforce.com (NYSE: CRM) said on Thursday their net losses widened in fiscal Q4 from a year earlier as aggressive spending continued to pressure margins. However, However, adjusted EPS was $0.07 and beat estimates by $0.01, while revenue jumped 38% to $1.15B and also topped consensus.
Commodities/Currency:
Gold:down $3.50 to $1330.0
Oil:down $0.13 to $102.32
EUR/USD 1.3800 -0.0091
USD/JPY 101910 -0.22
GBP/USD 1.6709 -0.0030
Volatility Index (VIX): As of the close of business Thursday, February 27, 2014 the VIX is at 14.04
Companies Reporting Quarterly Earnings:
- 3D Systems (DDD) reports Q4 EPS of $0.19, vs est. $0.20, and revenue of $154.8M, vs est. $155.0M
- Iron Mountain (IRM) reports Q4 EPS of $0.22, vs est. $0.22, and revenue of $769.0M, vs est. $771.1M
- Exelis (XLS) reports Q4 EPS of $0.41, vs est. $0.45, and revenue of $1.24B, vs est. $1.35B
Today’s Opening and Closing Bells:
- Rt. Hon Carwyn Jones AM, First Minister of the Welsh Government, celebrates St. David’s Day, the national day of Wales, by ringing The Opening Bell®.
- Executives and guests of Ireland-based Perrigo Company plc (NYSE:PRGO) will visit the New York Stock Exchange (NYSE) to hold an Investor Day. To mark the occasion Chairman, President & CEO, Joe Papa, will ring the Closing Bell.
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