Written by Gary
US stock market futures are pointed to a higher open this morning (SPY +0.7%), with the Dow futures expecting to gap up above the 20,900-mark. The US dollar firmed on growing expectations of a rate hike this month. WTI crude rose almost 0.1 percent to $54.30 a barrel.
Here is the current market situation from CNN Money
European markets are sharply higher today with shares in France leading the region. The CAC 40 is up 1.76% while Germany’s DAX is up 1.61% and London’s FTSE 100 is up 1.32%.
Looking at the last three columns, the first one (Actual), is what was reported this morning. The second column (Forecast) is what analysts had forecast and the third column is the previous report. Full calendar HERE.
What Is Moving the Markets
|Here are the headlines moving the markets.|
(Reuters) – U.S. stock index futures were higher on Wednesday as investors assessed President Donald Trump’s speech, while bank stocks rose on increased possibility of an interest rate hike this month.
(Reuters) – Snap Inc, owner of popular messaging app Snapchat, will price its initial public offering after the U.S. stock market closes on Wednesday in the most eagerly awaited technology IPO since Chinese e-commerce giant Alibaba went public in 2014.
(Reuters) – Generic drugmaker Mylan NV reported better-than-expected quarterly profit and revenue on Wednesday, helped by strong demand for drugs it acquired through its purchase of Sweden’s Meda last year.
(Reuters) – Lowe’s Cos Inc forecast 2017 sales ahead of analysts’ estimates and reported better-than-expected quarterly comparable-store sales as consumers continued to spruce up their homes or buy new ones.
(Reuters) – Best Buy Co Inc , the No. 1 U.S. electronics retailer, reported an unexpected decline in holiday-quarter same-store sales on Wednesday, hurt by weak demand for tablets, gaming consoles, wearable devices and mobile phones.
(Reuters) – Dollar Tree Inc , the biggest U.S. dollar-store chain, reported better-than-expected quarterly profit and sales on Wednesday, helped by lower costs and higher customer spending in its stores.
TOKYO (Reuters) – Toshiba Corp has asked a Japanese law firm to help estimate the potential financial impact if it decides its U.S. nuclear unit Westinghouse should file for Chapter 11 protection from creditors, sources with knowledge of the matter said.
LONDON (Reuters) – Prime Minister Theresa May said on Wednesday her government would hold regular talks with Ford to find ways to ensure its engine plant in Wales remains part of the car producer’s “success” in Britain after leaving the European Union.
HONG KONG (Reuters) – Taiwan’s Foxconn , the world’s largest contract electronics maker, is “definitely bidding” for the chip business of Japan’s Toshiba Corp and is “very confident” it can buy into it, company founder Terry Gou said on Wednesday.
An avalanche of hawkish Fed speakers appear to have got their way as March rate-hike odds have extended yesterday’s move to 82% this morning. As stocks soar after a more presidential Trump, bond yields are also rising, catching up to stocks after diverging for two weeks.
From 24% to 82% in 3 weeks… did the economic data shift that much?
Stocks are soaring…
But while bond yields are higher – 30Y above 3.00% – though the move is fading now…
2Y Yields are the highest since 2009. The yield curve has collapsed to its flattest since 2008…
Following a series of “hot” inflation prints from Germany’s states, moments ago German inflation rose more than expected, printing at 2.2% above the 2.1% consensus estimate, up from 1.9% in January and surpassing the ECB’s target of a rate just under 2 percent for the first time in more than four years.
With Germany headed for federal elections in September, the inflation figures will add more fuel to the debate about an end to the European Central Bank’s loose monetary policy.
Earlier on Wednesday, preliminary data from several German states showed that consumer price inflation accelerated across the country, mainly driven by higher food, energy and transportation costs. In the most populous state, North Rhine-Westphalia, annual inflation rose to 2.3 percent from 1.9 percent in January. It reached 2.5 percent in Hesse, 2.2 percent in Baden-Wuerttemberg, 2.1 percent in Bavaria, 2.0 percent in Brandenburg and 2.4 percent in Saxony.
The state readings, which are not harmonised to compare with other euro zone countries, fed into the just as hot nationwide inflation print released moments ago.
Yet not everyone was convinced Germany’s blistering headline inflation would be a hindrance to the ECB. Cited by Reuters, Capital Economics analyst Jennifer McKeown said the state readings supported the forecast, but German core inflation, which strips out volatile energy and food costs, was likely to remain weak in the coming months. “This should encourag …
Art Market Bubble Bursting – Gauguin Collapses 74% To $22 Million
– Art Market Bubble Bursting?
Te Fare by Paul Gauguin – Source: Christie’s
Russian billionaire Dmitry Rybolovlev paid 54 million or $85 million for a land …
As previously noted, while some traders on Wall Street were disappointed by the lack of specifics in Trump’s speech, many others – and certainly Trump’s group of core, faithful supporters – praised his “milder”, more conciliatory tone, in a speech that was among his most “presidential” public addresses to date.
Below, courtesy of The Hill, are five of the key takeaways political pundits were left from Trump’s address to Congress.
Trump’s speech was conventional, a relief to the GOP
The president won election while flouting every established rule of politics — a pattern that has persisted in the White House, giving heartburn even to Republican allies. By contrast, Trump on Tuesday was at his most restrained. There were no attacks on the media; no especially flamboyant claims or personal jabs; and few significant digressions from the prepared text of his speech. The night recalled the announcement of Trump’s nomination of Neil Gorsuch to the Supreme Court — another occasion when he stayed within the orthodox parameters.
Trump is an unconventional president, but his speech felt remarkable at times for being so normal. All of that will be just fine with GOP lawmakers. They have been desperately wanting Trump to curb what they see as self-defeating impulses which distract from an effective underlying message. They are looking for leadership from Trump, and while the president provided few policy details on Tuesday night, he set out clear objectives in a way that could boost his party’s rank-and-file.
Trump’s tribute to Carryn Owens, the widow of a Navy SEAL killed last month in a raid in Yemen, was handled expertly by Trump. It provided the kind of …
China’s latest manufacturing data adds to the evidence that recovering global trade is helping offset the housing-market slowdown, but Mr. Trump could spoil the party.
Minority shareholders at China’s largest industrial gas maker have emerged as winners from the boardroom tussle.
China Evergrande, the poster child for an overleveraged industry, proved again its debt-fueled ambitions haven’t yet been reached.
Importation is seen as a way to bring down too-high drug prices.
Target shares are suffering the biggest-ever one-day price drop since the retailer went public in 1972 in the wake of disappointing results and an investment plan to deal with the “new era” of retail.
Stock-market bulls are usually safe from stabbing in the middle of this month, according to this chart from Stock Trader’s Almanac editor Jeff Hirsch.
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