MARKET ACCESS CENTER: MORNING REPORT
Ahead of the Bell: Dow futures are trading up 7 points and S&P futures are trading up 2 points. Major stock indices appear to be rebounding today, after the previous trading sessions losses on global growth concerns. Gains, however were limited by rising crude oil prices following escalating violence in Iraq, where militants from an al-Qaeda splinter group have captured the country's second largest city, Mosul. According to data released by the euro zone, industrial output unexpectedly doubled in April driven by energy and non-durable goods production; led by Germany, the region's largest economy, signs the 17-member bloc continues to grow since the second quarter.
On the economic calendar today, weekly jobless claims will be released before the opening bell, 309K is forecasted compared with 312K for the week prior. Retail Sales for May will also be published before the market opens, a reading of 0.6% is expected versus 0.1% for April.
The dollar is up against the euro and down against the Japanese yen and the British pound. Gold is trading at $1,265. Crude oil is currently trading at $105 a barrel.
Yesterday, stocks fell after the World Bank cut its global growth forecast citing a weaker outlook for the US, China, and Russia halting a four-day rally.
On CNBC this morning, Jim Paulsen, Chief Investment Strategist and Executive Vice President of Wells Capital Management, talked about a correction in equities and inflation. Paulsen said some of the things he is watching for are not there yet, like inflationary concerns. However, he is starting to see some wage inflation. Paulsen expects the market to go higher before we can get some sort of correction and it will start in the bond market with rising yields. He is forecasting the 10-year Treasury to rise back to 3% before the end of the year as he is seeing signs the economy is starting to pick up.
Have a great day.
Wednesday's Close
DJIA down 102.04 pts/-0.60%/ 16,843.88
S&P down 6.90 pts/-0.35%/ 1,943.89
Nasdaq down 6.06 pts/-0.14%/ 4,331.93
Thursday's Futures
Dow Futures up 7.00 pts/+0.04%
S&P Futures up 2.25 pts/+0.07%
Nasdaq Futures up 6.75 pts/+0.18%
Overseas Markets
FTSE +0.11%
CAC 40 +0.22%
NIKKEI 225 -0.64%
HANG SENG -0.35%
Overseas: Global stock markets are mixed today. European markets are up on better than expected economic data from the region. Asian markets are mixed following higher crude oil prices as a result of the violence in Iraq.
Economic Reports: Weekly Jobless Claims expected to be 309K, Retail Sales expected to be 0.6%, Import and Export Prices expected to be 0.2% at 8:30 a.m., and Business Inventories expected to be 0.4% at 10:00 a.m.
Top Headlines
Reports indicate a federal judge would consider dismissing a DOJ lawsuit accusing Bank of America Corporation (BAC) of civil fraud in the sale of mortgage securities that soured during the global financial crisis.
Reports suggest Twitter Inc. (TWTR) is considering a shake-up in its top management, including a possible shift in the duties of COO Ali Rowghani, citing sources familiar with the matter.
According to reports Imperial Tobacco Group is evaluating a deal for assets likely to be divested from Reynolds American Inc. (RAI) and Lorillard Inc.,(LO) if the two tobacco companies proceed with a proposed combination, according to people familiar with the matter.
Commodities/Currency
Gold: up $4.10 to $1,265.30
Oil: up $1.77 to $105.91
EUR/USD 1.3525 -0.0009
USD/JPY 102.0950 +0.0865
GBP/USD 1.6825 +0.0032
Volatility Index (VIX): As of the close of business Wednesday, June 11, 2014 the VIX is up 0.62 at 11.60.
Companies Reporting Quarterly Earnings
Eros International reports Q4 EPS 11.6c, vs. Est 14c and Q4 revenue $63.3M, vs. Est $65.07M.
lululemon reports Q1 EPS ex-items 34c, vs. Est 32c and Q1 revenue $384.6M, vs. Est $381.24M.
Land's End reports Q1 EPS 34c vs. 23c last year Reports Q1 revenue $330.5M vs. $319.0M last year.
Today's Opening and Closing Bells
Zhaopin Limited (ZPIN) will visit the New York Stock Exchange (NYSE) to celebrate the company’s IPO, Mr. Evan Sheng Guo, Chief Executive Officer will ring the Opening Bell.
2014 Thought Leadership Forum III will ring the Closing Bell.
For daily market recaps, check out our End of Day Report every evening!
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