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Reports US

US stock market, economy and companies update (December 25, 2013)

December 25, 2013, Wednesday, 16:27 GMT | 11:27 EST | 20:57 IST | 23:27 SGT
Contributed by Trade The News


- Thin holiday trading conditions plus very good data is making for some solid gains this morning, with the S&P500 making another fresh all-time high. As of writing, the DJIA is up 0.25%, the S&P500 is up 0.20% and the Nasdaq is about flat.

- The November durable goods report was strong, with the top-line figure at +3.5%, while the October data was revised higher, to -0.7% from -2.0% prior. Excluding transportation, orders rose 1.2%, the most since May, while core capital goods rose 4.5%, the strongest since January. Analysts caution that the strong figures for the month (and likely the forthcoming December data) may reflect companies scrambling to acquire capital goods before the expiration of R&D and depreciation tax credits at the end of 2013.

- Homebuilders are gaining after the good November new home sales data. The November numbers were slightly lower (464K) than the revised October figures, which were raised to 474K, the best sales pace since July 2008. Median prices continue to rise, which supplies of existing homes are still contracting.

- The strong data is hitting the yield on 10-year USTs, which has bumped higher this morning in volatile, low-volume trading. The good data has sent the yield up to three-month highs around 2.968%. The strengthening greenback has sent EUR/USD back to levels seen before last Friday's big post-GDP moves, around 1.3660.

- After slumping 10% last Friday after the ITC found Nokia, Huawei and ZTE did not infringe on InterDigital's cellphone patents, shares are rebounding after disclosing that it has agreed with Huawei on an arbitration settlement to resolve their global patent-licensing dispute.

- Sardar Biglari, Cracker Barrel's largest individual shareholder, has once again called for a shakeup of the restaurant chain, saying in a letter to that the company should consider a sale. Biglari owns just under 20% of the company and has been waging an activist campaign against the restaurant chain's current board of directors.

***Looking Ahead***
- 22:30 (TH) Thailand Nov Customs Trade Balance: -$1.8Be v -$1.7B prior; Customs Exports Y/Y: -3.6%e v -0.7% prior; Customs Imports Y/Y: -1.9%e v -5.4% prior


***Economic Data***
- (US) MBA Mortgage Applications w/e Dec 20th: -6.3% -5.5% prior
- (US) ICSC Chain Store Sales w/e Dec 21st: w/w +1.4%; y/y: +2.7%
- (US) Nov Durable Goods Orders: +3.5% v +2.0%e; Durables Ex Transportation: +1.2% v 0.7%e; Capital Goods Orders Non-defense Ex Aircraft: +4.5% v 0.7%e; Capital Goods Shipments Non-defense Ex Aircraft: +2.8% v +1.0%e; Durables Goods Orders Ex-Defense: +3.5% v -1.3%
- (US) Weekly Redbook Retail Sales w/e Dec 21st: +3.9% y/y, Dec MTD: -1.0% m/m; Dec MTD +3.1% y/y
- (US) Oct House Price Index M/M: 0.5% v 0.5%e
- (US) Nov New Home Sales: 464K v 440Ke
- (US) Dec Richmond Fed Manufacturing Index: 13 v 10e