US stock index futures are pointing to a moderately higher opening (SPY +0.4%) as investors began to refocus on the 20 K for the DOW. Crude prices have edged lower, increase in risk-appetite has dampened the appeal of gold.
Here is the current market situation from CNN Money
European markets are broadly higher today with shares in Germany leading the region. The DAX is up 1.62% while France's CAC 40 is up 1.04% and London's FTSE 100 is up 0.47%.
(Reuters) - Safety standards for lithium-ion batteries need to be modernized following a massive recall of Samsung Electronics Co Ltd phones after faulty batteries caused fires, a U.S. government agency said on Tuesday.
SAN FRANCISCO (Reuters) - Cisco Systems Inc said on Tuesday that it agreed to buy U.S. business software company AppDynamics Inc for about $3.7 billion, making one of its largest deals of recent years as it searches for growth beyond its core networking business.
(Reuters) - United Technologies Corp posted a fourth-quarter profit, compared with a year-ago loss, and reiterated its 2017 profit and sales forecasts, buoyed by demand for Pratt & Whitney aircraft engines and parts for the aerospace industry.
(Reuters) - Aetna and Humana would consider all available options for their proposed $34 billion merger, the two U.S. health insurers said on Tuesday, a day after a court ruled against the deal due to fears it would lower competition.
TOKYO (Reuters) - Shares in Japanese air bag manufacturer Takata Corp gained 18.2 percent on Wednesday, rising by a daily limit of 80 yen to 519 yen ($4.56), stemming four days of steep decline brought about by investor fear of a court-mediated bankruptcy.
With the Dow Jones set to open just 15 points away from 20,000, and likely to cross the key psychological threshold, here is one explanation for the overnight euphoria from JPM's Adam Crisafully.
Market update - the solid US trading from Tues translated into gains across Asia and (so far) in Europe. As far as actual incremental news, there wasn't too much overnight although the big-cap earnings reports were mostly solid (highlights include Santander, STX, and TXN) while Japan's Dec exports topped expectations. On the political front, Trump will make a series of immigration/national security announcements today but investors are still focused on the "Big 3" of tax reform, deregulation, and infrastructure spending.
Investors became very enthused about the infrastructure spending angle of the Trump agenda on Tues following Schumer's $1T bill and the oil pipeline Oval Office media events but in reality the narrative around this topic changed very little in the last 36 hours (it remains the case in general that the gap between reality and expectations w/regards to Washington is still too large and this is a market risk).
Keep in mind that while everyone is focused on earnings and politics, the Fed will reassert itself back into the narrative soon - the first FOMC decision of the year hits Wed 2/1, the Jan jobs report is Fri 2/3, Yellen will prob. conduct her semiannual testimony in early/mid-Feb, and Trump could soon announce his Fed nominees (including two board of governors and the vice chair of bank regulation).
And the macro big picture:
US macro update - the rally remains a function of growth and Was ...
With China growing increasingly nervous about the prospect of a trade war with the US, the nation's official mouthpiece People's Daily warned that a trade war between China and the United States would harm both countries, reflecting concerns over Trump's stated protectionist, anti-China stance.
"If a trade war developed between the two countries, both China and the U.S. would be negatively impacted," the newspaper said in a commentary. "In the end neither side would win, it would bring harm to other countries and that harm would be brought to others without benefits to the U.S. or China."
As both China and the U.S. are major players in global supply chains and value chains, numerous countries would be gravely impacted from a trade war, the article added.
"At present, China and the U.S. are bound together by trade, investment, finance and other spheres," the article quoted Zhang Jianping, head of the Research Center for Regional Cooperation under China's Ministry of Commerce, as saying.
"As the two largest economies in the world, maintaining positive trade relations is beneficial both to China and the U.S. and also the global economy."
Trump has pledged to use "every lawful presidential power to remedy trade disputes" with China, including tariffs. He once broached a tax of 45 percent on Chinese imports, then denied bringing it up. After the presidential inauguration Jan. 20, the Global Times, a Chinese newspaper run by the Communist Party, said Trump's speech signaled a "high possibility" of trade frictions.
Congressman hopes to turn Trump's attention from an unsubstantiated claim that as many as 5 million illegal votes were cast Nov. 8, keeping Trump from winning the popular vote against Hillary Clinton, and toward, instead, reported attempts to harass and inconvenience legal voters, including state efforts to roll back provisions of the Voting Rights Act of 1965.
U.K. Prime Minister Theresa May is pushing ahead with her Brexit plans after the government lost a court ruling centered around kicking off the process to take the U.K. out of the European Union. Here's a look at what's next.
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