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US stock market, economy and companies update (February 08, 2013)

Contributed by Trade The News

- US markets are making modest gains this morning following solid performance in Both Asia and European trading. China January trade data showed a much greater than expected pickup in exports, helping to brighten the picture for the global economy, while the December US trade data has also helped. The DJIA is up 0.36%, the S&P500 is up 0.5% and the Nasdaq is up nearly 1%.

- The US trade deficit narrowed much more than expected in December, plunging by over $10B to a three-year low of $38.5B. About half of this decline came from the petroleum sector, where the volume of imports fell sharply and the volume of exports jumped. This result could add around 0.8 points to revisions to US Q4 GDP.

- USD/CAD popped above parity this morning following the slightly softer Canadian data. The yen has given up some of the strength seen overnight, with USD/JPY moving back toward the 93 handle. Japanese officials continue to attempt to defuse the so-called currency war ahead of the G20 Finance Minister meeting next Friday and Saturday in Moscow. EUR/USD moved very slightly lower as some dealers aired concerns that a central element of banking union will be scaled back thanks to waning political momentum.

- McDonald's January sales comps were negative, as the company had warned with earnings two weeks ago. Recall that December comps for Micky D's were flat. Analysts say the company's terrible -9.5% comp in Asia was due in part to the timing of Chinese New Year and the impact of the tainted fast food chicken issue. Shares of MCD are in positive territory.

- AOL gained more than 10% this morning after beating top and bottom line targets in its Q4 report. Analysts highlight the firm's 13% gain in advertising revenue as a major positive result, although the bulk of the firm's profits are still coming from membership revenue.

- Moody's Q4 report saw a sharp y/y increase in profits, right in line with expectations. The company attributed the gain to its debt-rating business, which benefitted from a rebound in bond issuance. Note that shares of MHP and MCO are both down on news that the New York State AG has launched an independent probe of the ratings agencies.

- Shares of American Axle are have been volatile this morning following the firm's Q4 earnings report. The firm massively outperformed earnings and revenue expectations, although that was mostly thanks to a big one-time def

- Linked in widely beat expectations in its Q4 results, with members surpassing 100M and subscription revenue up 78%. LNKD is up 19% in the early going.

- Molina Healthcare is up nearly 10% on a big surge in profits. The firm's medical care ratio dropped below 90% on people deferring treatment. In addition, its FY13 outlook was better than expected.

***Looking Ahead***
- 11:00 (US) Fed to buy $1.00-1.50B in bonds
- 11:30 (UK) BOE member Haldane
- 12:00 (US) WASDE Feb Crop Report

***Economic Data***
- (CL) Chile Jan CPI M/M: 0.2% v 0.1%e; Y/Y: 1.5% v 1.5%e; CPI Ex Perishables & Fuel M/M: 0.1% v 0.1%e
- (IN) India Forex Reserves w/e Feb 1st: $295.2B v $295.7B prior
- (CA) Canada Jan Housing Starts: 160.6K v 195.0Ke
- (CA) Canada Dec Int'l Merchandise Trade: -C$0.9B v -C$1.5Be
- (US) Dec Trade Balance: -$38.5B v -$46.0Be
- (CA) Canada Jan Net Change in Employment: -21.9K v +5.0Ke; Unemployment Rate: 7.0% v 7.2%e
- (MX) Mexico Nov Gross Fixed Investment: % v 5.1%e
- (US) Dec Wholesale Inventories M/M: -0.1% v 0.4%e