US stock market, economy and companies update (January 10, 2014)
January 10, 2014, Friday, 16:31 GMT | 11:31 EST | 22:01 IST | 00:31 SGT
- China's trade surplus for December came in at $25.6B much less than the $32.2B surplus expected.
- Alcoa rings in earnings season with a disappointing quarterly report.
- Markets puzzled over December jobs report.
- Initially investors shook off the big miss in the non-farm payrolls component of today's US December jobs report and sent markets higher in the premarket. This sentiment did not last and equity indices gave up gains and sank into the red within the first 30 minutes of trading. As of writing, the DJIA is fell 0.22%, the S&P dropped 0.06% and the Nasdaq is down 0.07%.
- There has been much gnashing of teeth over the December jobs report. The economy added 74K jobs in December, falling well short of the +197K expectation and showing the lowest increase in a year and a half. On the other hand, the unemployment rate dropped to 6.7%, for the lowest rate since October 2008. The factors behind this discrepancy have been chalked up to weather effects, a plummeting participation rate, the impact of the run-off in unemployment benefits, among other factors. Various commentators opined that the jobs report alone was unlikely to alter Fed's course on tapering QE.
- Alcoa unofficially kicked off earnings season yesterday evening. The firm's adjusted earnings were a bit subpar but revenue looked good, although traders do not seem impressed that the firm's FY14 global aluminum demand forecast remains unchanged at +7% from the FY13 forecast. Shares of AA are down 5.8% this morning.
- Troubled retailer Sears Holding warned that its fourth quarter loss would be very sizable and said it expected comps would fall 7.4%, including decreases of 5.7% at Kmart and 9.2% at Sears Domestic. The company said it still believes it is "making progress" in its "transition," but markets do not agree. Shares of SHLD are down 13% this morning.
- Target is down 1.7% after disclosing that more data was stolen in the December data breach than originally thought. Target determined that names, mailing addresses, phone numbers or email addresses for up to 70 million individuals were also stolen, separate from payment card data. The firm also cut its fourth quarter EPS and SSS outlook.
- Tiffany reported a very solid 6% comp gain for the two months to Dec 31st, on net sales of $1.03B, +4% y/y. Jewelry name Zales reported holiday comps +2.0% y/y, on net sales +4.4% y/y. ZLC gained nearly 20% at its best levels on the report before dropping to a mere +15%, while TIF is down more than 1%. NILE is up 3% in sympathy.
- Abercrombie & Fitch is up 11% after hiking its FY13 outlook. The higher guidance comes despite a holiday SSS total of -6% and a warning that January comps are also well below year-ago levels.
- 12:00 (US) USDA World Agricultural Supply and Demand Estimates (WASDE)
- 13:00 (EU) Fed's Bullard speaks on US Economy in Indianapolis
- (RU) Russia Dec Reserve Fund: No est v $86.9B prior; Wellbeing Fund: No est v $88.1B prior
- (BR) Brazil Dec IBGE Inflation IPCA M/M: 0.9% v 0.8%e; Y/Y: 5.9% v 5.8%e
- (IE) Ireland Nov Industrial Production M/M: +11.7% v -6.3% prior; Y/Y: +12.8% v -0.7% prior
- (IN) India Forex Reserves w/e Jan 3rd: $293.1B v $295.7B prior
- (IN) India Nov Industrial Production Y/Y: -2.1% v +0.8%e
- (US) Dec Change in Nonfarm Payrolls: +74K v +197Ke; Change in Private Payrolls: +87K v +200Ke; Change in Manufacturing Payrolls: +9K v +16Ke; Two-Month Payroll Net Revision: +38K v +8K prior
- (US) Dec Unemployment Rate: 6.7% v 7.0%e; Underemployment Rate: 13.1% v 13.1% prior; Change in Household Employment: +143K v +958K prior; Labor Force Participation Rate: 62.8% v 63.0% prior
- (US) Dec Average Hourly Earnings M/M: 0.1% v 0.2%e; Y/Y: 1.8% v 1.9%e; Average Weekly Hours: 34.4v 34.5e
- (CA) Canada Dec Net Change in Employment: -45.9K v +14.1Ke; Unemployment Rate: 7.2% v 6.9%e; Full Time Employment Change: -60.0K v +1.4K prior; Part Time Employment Change: +14.1K v +20.0K prior; Participation Rate: 66.4% v 66.4%e
- (MX) Mexico Nov Industrial Production M/M: 0.1% v 0.5%e; Y/Y: -1.4% v -0.3%e; Manufacturing Production Y/Y: 0.6% v 2.2%e
- (MX) Mexico Oct Gross Fixed Investment: -5.6% v -4.7%e
- (US) Nov Wholesale Inventories M/M: +0.5% v 0.4%e; Wholesale Trade Sales M/M: +1.0% v +0.7%e
- (US) Jan IBD/TIPP Economic Optimism: 45.2 v 46.0e
- (UK) Dec NIESR GDP Estimate: 0.7% v 0.8% prior