Wall Street sentiment is still vacillating, as reflected by the U.S. index futures, which point to a mixed opening on Monday. Earlier in the global trading day, Asian stocks got a boost from comments from a Chinese official regarding allowing foreign buying in equities. Despite a weak industrial output data from the eurozone, European stocks are also higher. With little domestic earnings and economic news to digest, traders may prefer to stay on the sidelines ahead of the week’s earnings flow and a host of market moving economic data.
As of 6:15 am ET, the Dow futures are adding 5 points and the S&P 500 futures are moving up 1.40 points, while the Nasdaq 100 futures are retreating 8.50 points.
U.S. stocks extended their gains in the week ended January 11th, although the optimism moderated from a week-ago. Earnings optimism kept the momentum going despite the encircling economic uncertainties.
Several key economic reports are due in the unfolding week, lending additional clarity to the economic outlook. The spotlight is likely to be on the Commerce Department’s retail sales report for December, the results of regional manufacturing surveys for January by the New York and the Philadelphia Federal Reserve, the Commerce Department housing starts report for December, the Federal Reserve’s industrial production report for December and the results of the homebuilder sentiment survey by the National Association of Home Builders.
Traders may also focus on the weekly jobless claims report, the preliminary consumer sentiment index based on a survey by Reuters and the University of Michigan, the Federal Reserve’s Beige Book and the several Fed speeches scheduled for the week. The Labor Department’s producer and consumer price inflation reports for December and the Commerce Department’s business inventories report for November round up the economic events of the week.
San Francisco Federal Reserve Bank President John Williams will deliver the keynote speech to the SEMI ISS 2013 Industry Strategy Symposium on the economic outlook in Half Moon Bay, California at 11:55 am ET. Atlanta Federal Reserve Bank President Dennis Lockhart is scheduled to speak on the economic outlook to the Rotary Club of Atlanta at 12:40 pm ET.
Federal Reserve Chairman Ben Bernanke is due to speak at the University of Michigan in a conversation with Ford School Dean Susan M. Collins on monetary policy and the U.S. economy at 4:30 pm ET.
In corporate news, Websense (WBSN) said its board has named John McCormack as its CEO, effective immediately, replacing Gene Hodges, who is retiring from the role. The company also released preliminary fourth quarter results, expecting billings of about $122 million, higher than its guidance for billings of $112 million to $117 million. At the same time, blaming the higher sales commissions associated with the higher than expected billings, Websense lowered its non-GAAP earnings per share.
health Management Associates (HMA) release preliminary fourth quarter and full year results, which came in below consensus estimates. The company blamed the softness to the ongoing difficult economic backdrop.
Encana (ECA) said its president and CEO Randall Eresman has decided to retire, effective today, after a 35-year stint at the company. The company appointed Clayton Woitas, one of its directors, as its president and CEO.
Wausau Paper (WPP) said it commenced a process last year to identify strategic alternatives for its paper segment that will help it focus better on its highly successful tissue business.
The Asian markets advanced solidly, led by the Chinese market after China Securities Regulatory Commission Chairman Guo Shuqing said that China can increase the current level of investment limits for foreign investors by ten times to encourage stock purchase. The Japanese market was closed for a public holiday.
Australia’s All Ordinaries hovered in positive territory for the better part of the session before closing up 11.90 points or 0.25 percent at 4,746. Utility stocks advanced, while energy, financial and consumer discretionary stocks also found buying interest.
Hong Kong’s Hang Seng Index closed at 23,413, up 149.19 points or 0.64 percent. China’s Shanghai Composite Index rallied 68.74 points or 3.06 percent before closing at 2,312.
After opening on a nervous note, European stocks have found firmer footing and are currently advancing moderately.
United Parcel (UPS) announced that the European Commission has informed that it is working on a decision to prohibit the proposed acquisition of TNT Express by United Parcel Service. Due to prohibition by the EC, the offer condition relating to EU Competition Clearance will not be fulfilled and UPS will pay TNT a termination fee of 200 million euros and withdraw the offer.
Tire maker Continental AG said it expects sales growth of 5 percent for 2013, slower than the 7 percent increase in 2012. The company expects adjusted EBIT to remain above 10 percent of revenue compared to 10.7 percent in 2012, blaming the softness to the contraction in the market for autos.
Swiss luxury watchmaker Swatch announced a deal to buy Harry Winston jewelry arm for $750 million in cash.
On the economic front, a report released by Eurostat showed that the euro area’s industrial output fell 0.3 percent in November, defying expectations for a 0.2 percent increase. Annually, output fell 3.7 percent following a 3.3 percent decline in October.
by RTT Staff Writer
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