Mar E-mini S&Ps (ESH17 +0.21%) are up +0.20% on strength in energy producing stocks with Feb WTI crude oil (CLG17 +0.28%) up +0.52% at a 2-week high. Crude oil continues to garner support on expectations of tighter global supplies as OPEC and 11 other crude producing nations begin to curb oil production starting Jan 1. European stocks are down -0.10%, led by losses in Italian bank stocks, with Banco Popolare Di Milano Scarl and Banco Popolare SC down at least 3%. Concerns over Italy’s banks have boosted safe-haven demand for German bunds as the 10-year bund yield dropped to a 1-1/2 month low of 0.181%. Asian stocks settled mixed: Japan -0.01%, Hong Kong +0.83%, China -0.40%, Taiwan +1.01%, Australia +1.02%, Singapore +0.43%, South Korea -1.06%, India -0.01%.
The dollar index (DXY00 +0.43%) is up +0.32%. EUR/USD (^EURUSD) is down -0.39%. USD/JPY (^USDJPY) is up +0.29%.
Mar 10-year T-note prices (ZNH17 -0.01%) are little changed, up +0.5 of a tick.
Japan Nov industrial production rose +1.5% m/m and +4.6% y/y, weaker than expectations of +1.7% m/m and +4.7% y/y.
Key U.S. news today includes: (1) Nov pending home sales (expected +0.5% m/m, Oct +0.1% m/m and +0.2% y/y), (2) Dec Dallas Fed manufacturing outlook survey (expected unch at 10.2, Nov +11.7 to 10.2), (3) the Treasury auction of $ 13 billion of 2-year floating-rate notes and $ 34 billion of 5-year T-notes.
Russell 1000 earnings reports today include: none.
U.S. IPO’s scheduled to price today: none.
Equity conferences this week: none.
Bank of New York Mellon (BK +0.32%) was upgraded to ‘Strong Buy’ from ‘Outperform’ at Raymond James with a 12-month target price of $ 57.
Piper Jaffray warns that GameStop (GME +2.13%) may post a 11% decline in holiday comparable sales and narrow its Q4 comparable sales forecast when it reports holiday sales results in mid-January.
YUM! Brands (YUM +0.34%) may push higher today after it said it plans to sell Kentucky Fried Chicken in Turkey as it refranchises the restaurants it owns in the country.
Terraform Global (GLBL +1.28%) rose over 2% in after-hours trading after Knighthead Capital boosted its stake in the company to 6.4% from 2.0%.
MiMedx Group (MDXG +1.47%) gained almost 2% in after-hours trading after its EpiFix for treatment of partial and full-thickness neuropathic diabetic foot ulcers received coverage from insurer Aetna.
Anthera Pharmaceuticals (ANTH +2.03%) plummeted 55% in pre-market trading after it said its Phase 3 study of its Sulloura drug in cystic fibrosis patients with exocrine pancreatic insufficiency missed its primary endpoint.
Mar E-mini S&Ps (ESH17 +0.21%) this morning are up +4.50 points (+0.20%). Tuesday’s closes: S&P 500 +0.22%, Dow Jones +0.06%, Nasdaq +0.52%. The S&P 500 on Tuesday rallied to a 1-1/2 week high and closed higher on the +0.63% m/m and +5.1% y/y increase in U.S. Oct CoreLogic composite-20 home price index (stronger than expectations of +0.5% m/m and +5.0% y/y) and the +4.3-point jump in Conference Board Dec U.S. consumer confidence index to 113.7 (stronger than expectations of +1.9 to 109.0 and the highest in 15-1/3 years). There was also strength in energy producer stocks as the price of crude oil rose +1.64% to a 2-week high.
Mar 10-year T-notes (ZNH17 -0.01%) this morning are up +0.5 of a tick. Tuesday’s closes: TYH7 -5.00, FVH7 -3.00. Mar 10-year T-notes on Tuesday closed lower on the stronger-than-expected U.S. Oct CoreLogic composite-20 home price index and and Dec consumer confidence reports. T-notes were also undercut by increased inflation expectations as the 10-year T-note breakeven inflation rate rose to a 2-week high.
The dollar index (DXY00 +0.43%) this morning is up +0.33 (+0.32%). EUR/USD (^EURUSD) is down -0.0041 (-0.39%). USD/JPY (^USDJPY) is up +0.34 (+0.29%). Tuesday’s closes: Dollar index +0.060 (+0.06%), EUR/USD +0.0002 (+0.02%), USD/JPY +0.33 (+0.28%). The dollar index on Tuesday closed higher on the jump in Dec U.S. consumer confidence to a 15-1/3 year high and strength in USD/JPY as a rally in the S&P 500 to a 1-1/2 week high reduced the safe-haven demand for the yen.
Feb WTI crude oil prices (CLG17 +0.28%) this morning are up +28 cents (+0.52%) at a 2-week high and Feb gasoline (RBG17 -0.15%) is -0.0001 (-0.01%). Tuesday’s closes: Feb crude +0.87 (+1.64%), Feb gasoline +0.0227 (+1.38%). Feb crude oil and gasoline on Tuesday closed higher with Feb crude at a 2-week high and Feb gasoline at a 7-month high. Crude oil prices were boosted by the surge in U.S. Dec consumer confidence to a 15-1/3 year high, which may lead to increased economic growth and energy demand. Crude oil prices were also boosted by the rise in the crack spread to a 1-3/4 month high, which may boost refinery demand for crude to refine into gasoline.
|Wednesday, Dec 28|
|US||1000 ET||Nov pending home sales expected +0.5% m/m, Oct +0.1% m/m and +0.2% y/y.|
|1030 ET||Dec Dallas Fed manufacturing outlook survey expected unch at 10.2, Nov +11.7 to 10.2.|
|1130 ET||Treasury auctions $ 13 billion of 2-year floating-rate notes.|
|1300 ET||Treasury auctions $ 34 billion of 5-year T-notes.|
|Thursday, Dec 29|
|US||0830 ET||Weekly initial unemployment claims expected -11,000 to 264,000, previous +21,000 to 275,000. Weekly continuing claims expected -9,000 to 2.027 million, previous +15,000 to 2.036 million.|
|0830 ET||Nov wholesale inventories expected +0.2%, Oct -0.4%.|
|1100 ET||EIA Weekly Petroleum Status Report.|
|1300 ET||Treasury auctions $ 28 billion of 7-year T-notes.|