Wall Street expected to open fractionally higher (SPY +0.1%). Oil prices extended strong overnight gains amid thinning pre-New Year holiday trade, the U.S. dollar moved higher as the prior day's positive read on consumer sentiment continued to support the greenback.
Here is the current market situation from CNN Money
European markets are mixed. The FTSE 100 is higher by 0.53%, while the CAC 40 is leading the DAX lower. They are down 0.03% and 0.02% respectively.
TOKYO (Reuters) - The Bank of Japan has led Prime Minister Shinzo Abe's effort to stimulate the world's third-biggest economy, but its often innovative steps have yet to end decades of falling prices and feeble growth.
SEJONG, South Korea/SAN FRANCISCO (Reuters) - South Korea's antitrust regulator fined Qualcomm Inc 1.03 trillion won ($854 million) for what it called unfair business practices in patent licensing and modem chip sales, a decision the U.S. chipmaker said it will challenge in court.
TOKYO (Reuters) - A looming writedown at Japanese conglomerate Toshiba Corp has wiped almost $5 billion off its value in two days and prompted a credit rating downgrade on Wednesday, as the company grapples to plug a potential multi-billion dollar hole.
WASHINGTON (Reuters) - Healthcare company Abbott Laboratories has won U.S. antitrust approval for its proposed $25 billion acquisition of medical device maker St. Jude Medical Inc , the U.S. Federal Trade Commission said on Tuesday.
BEIJING (Reuters) - Alibaba Digital Media and Entertainment Group, the entertainment affiliate of Alibaba Group Holding Ltd , plans to invest more than 50 billion yuan ($7.2 billion) over the next three years, the affiliate's chief executive said.
CHICAGO (Reuters) - A jump in consumer spending in the final stretch of December significantly offset a slow start to the U.S. holiday shopping season, and is likely to help many retailers beat sales forecasts, industry research groups said on Tuesday.
(Reuters) - Delta Air Lines Inc said on Tuesday that in agreement with Boeing Co it would cancel an order for 18 787 Dreamliner aircraft, which it assumed as a part of its merger with Northwest Airlines.
For 10 straight days, progonosticators have promised that the Dow Jones Industrial Average will break gloriously above 20,000 for the first time in history, proving how great the economy must be (or will be) and leading investors to the next secular bull leg of this miracle of wall street.
So far it hasn't happened... (Dow +11.75% post-Trump)
But halfway around the world, Chinese fears (of capital controls and devaluation) have sparked an exodus into alternative currencies - most notably Bitcoin as it soars towards $1000. (BTC +42% post-Trump)
So which comes first - the greed of Dow 20,000 or the fear of $1000 Bitcoin?
A 5.9 magnitude quake has struck northeastern Japan, 18km NNE of Daigo, and in close proximity to the infamous Fukushima nuclear power plant the US Geological Survey reported; no tsunami warning has been issued. The epicenter of the quake was given as Ibaraki Prefecture in central Japan, the same as was impacted during the 2011 Fukushima quake. The prefecture has a population of some 3 million people.
Earlier, the Japanese Meteorological Agency (JMA) earlier put the magnitude at 6.3.
The Quake had shaking intensity of 6- on Japan's scale of 7; and the shaking was felt as far as Tokyo. According to NHK, the Tokaido Shinkansen high speed train has been halted for safety checks after the quake.
According to Japan's government there are no reports of damage to nuclear plants after the quake, while Tepco quickly stated that there are "no abnormalities at its Fukushima plants" after the quake
SUGA: NO REPORTS OF DAMAGE TO NUCLEAR PLANTS AFTER QUAKE
TEPCO: NO ABNORMALITIES AT FUKUSHIMA NUCLEAR PLANTS AFTER QUAKE
NO INJURIES REPORTED AFTER QUAKE IN N.EASTERN JAPAN, NHK SAYS
As expected, global markets continue to trade very subdued with negligible volumes (overnight the Nikkei traded 40% below its 20DMA) in the quasi-holiday week in which as Nanex showed earlier, this morning the E-mini is the 8th most actively traded future (where it usually is #1 or #2).
S&P500 futures are 8th most actively traded since midnight (usually #1 or 2)
— Eric Scott Hunsader (@nanexllc) December 28, 2016
And, as JPM's Adam Crisafulli notes in the "early look at the market", it is indeed a very quiet morning, however as JPM also warns that may change quite soon as the largest US bank reiterates a now familiar warning. To wit:
Market update - it is a very quiet morning so far w/sparse news as markets wind down for the year. Other than the Japan Nov IP data (which was strong), the QCOM South Korea fine, and solid US holiday spending indications, there were no major headlines overnight. The fate of US (and global) markets will rest on the realization of the Trump/Ryan agenda - anticipation and hope of the GOP platform continues to underpin sentiment and stocks but there appears to be stark differences between investor expectations and the likely reality (esp. as it pertains to corporate taxes and infrastructure spending) and this represents a major equity risk during the opening months of 2017.
Wait, what's a "risk"? Anyway, for now the only question on traders minds is not what happens in the opening months of 2017 but what happens first: Dow 20,000, or Bitcoin $1,0 ...
The U.S. dollar strengthened against its major rivals on Wednesday, advancing for a second straight day as investors continued to bet that a strengthening economy and higher inflation would support the currency.
Snap Inc. is expected to be 2017's savior from a depressing market for initial public offerings, but the ridiculously high valuations of other so-called unicorns, as well as a market still seen as unsteady, could make the chances for a revival disappear as fast as a Snapchat message.
Econintersect wants your comments,
data and opinion on the articles posted. As the internet is a
"war zone" of trolls, hackers and spammers - Econintersect must balance its
defences against ease of commenting. We have joined with Livefyre
to manage our comment streams.
To comment, using Livefyre just click the "Sign In" button at the top-left corner of
the comment box below. You can create a commenting account using your
favorite social network such as Twitter, Facebook, Google+, LinkedIn or
Open ID - or open a Livefyre account using your email address.
You can also comment using Facebook directly using he comment block below.
Econintersect Live Market
Print this page or create a PDF file of this page
The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.
Take a look at what is going on inside of Econintersect.com