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Reports US

US stock market, economy and companies update (August 18, 2014)

August 18, 2014, Monday, 16:13 GMT | 11:13 EST | 20:43 IST | 23:13 SGT
Contributed by Trade The News


- Global equity indices are bouncing higher this morning after Friday's big slide, despite negative housing data out of China and the UK. The 10-year UST is not very far above its lows of 2.322% from Friday, trading around 2.380% as of writing. The DJIA is up 0.92%, the S&P500 is up 0.78% and the Nasdaq is up 0.87%.

- Shares of major homebuilders are outpacing broader markets this morning in the wake of the stronger August NAHB housing market report. The 55 reading was the third month of gains for the index, and the single-family home sales component rose to from 56 to 58, the highest reading since January.

- Markets are waiting with heightened expectations for Fed Chair Yellen's Jackson Hole speech, scheduled for 10:00ET am on Friday. Note also that the minutes from the last FOMC meeting will drop on Wednesday afternoon. Few expect a major policy speech from Yellen - the theme of the meeting is the dynamics of the labor market - and some analysts have suggested there may even be attempts to dial back perceptions of a more hawkish tone at the FOMC.

- Dollar General rolled out a $9.7 billion cash offer for Family Dollar, topping the $8.95 billion bid made in late July by Dollar Tree. Dollar General's offer is $78.50 in cash, compared to Dollar Tree's $74.50/shr cash-and-stock bid. Shares of FDO are up nearly 5% this morning, trading around $79.70/shr as investors await a potential higher bid from Dollar Tree.

- Allergan has a new CFO this morning. Jeff Edwards is stepping down from the position due to family commitments, and company veteran Jim Hindman is taking the role. On Friday, Valeant extended the expiration of its exchange offer to acquire Allergan to December 31, although earlier CNBC's Faber said Pershing and Valeant would only be able to get the 25% shareholder approval needed to call a special meeting and force the issue of their takeover offer.

- Shares of Chinese solar name JinkoSolar's beat expectations and saw relatively strong y/y growth, while the company also hiked its FY module shipments forecast. However, analysts suggest that estimates were dialed back headed into earnings, making for an easy beat. JKS sank more than 2% in the premarket although shares have popped back into positive territory as of writing.

***Looking Ahead***
- 11:30 (US) Treasury to sell $54B in 3-Month and 6-Month Bills
- 16:00 (US) Crop Condition Report
- (BR) Brazil Aug CNI Industrial Confidence: No est v 46.4 prior
-21:30 (AU) RBA Aug Minutes


***Economic Data***
- (RU) Russia July PPI M/M: 1.6% v 0.3%e; Y/Y: 9.0% v 7.0%e
- (CA) Canada Jun Int'l Securities Transactions: -C$1.1B v +C$5.0Be
- (CL) Chile Q2 GDP Q/Q: 0.2% v 0.0%e; Y/Y: 1.9% v 1.8%e
- (CL) Chile Q2 Current Account Balance: +$28M v -$500Me
- (PL) Poland July YTD Budget Balance Level (PLN): -26.4B v -25.3B prior; Budget Balance Performance: 55.5% v 53.4% prior
- (US) Aug NAHB Housing Market Index: 55 v 53e

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