US stock market, economy and companies update (January 13, 2014)
January 13, 2014, Monday, 17:09 GMT | 12:09 EST | 22:39 IST | 01:09 SGT
- US equities are slogging sideways again this morning, with few big catalysts that would justify a big upwards or downwards move. As of writing, the DJIA is down 0.10%, the S&P500 is down 0.05% and the Nasdaq is up 0.05%.
- EUR/USD has drifted off its post-payrolls high as traders continue to mull over the real meaning of the December jobs report. Note also that ECB President Draghi was out again this morning beating the no-broad-based-deflation-in-the-eurozone drum, while also in the same breath conceding that deflation in some eurozone nations is needed for "adjustments."
- Over the weekend, there were press reports that international regulators have set new standards for leverage ratios, following similar rumors back in December. Reports suggested that central bank officials and the Basel Committee softened a plan to limit leverage ratio over fears that the new standards would dampen lending. Reports suggested the adjustments could increase banks average leverage ratio to slightly over 4% from 3.8%. US banking stocks are in the red with broader markets this morning. Note that the major US banks start reporting this week, led by JP Morgan on Jan 14th.
- Shares of Wendy's gained sharply in the premarket and is sustaining 6% in cash trading after disclosing strong preliminary Q4 earnings. Earnings in Q4 were nearly twice the expected amount, while the firm's initial FY14 guidance as better than expected. Comps were strong, with executive crediting various new product rollouts for strong sales. Shares of BKW are up 2% in sympathy.
- Shares of SodaStream are down more than 20% this morning after the firm offered lackluster year-end FY13 figures. Executives said the company failed to deliver profit targets and faced a challenging holiday selling season in the US, which negatively impacted gross margins. At least one analyst piled on, cutting the name to hold from buy.
- Lululemon cut its Q4 guidance this morning and warned that comps in the quarter were down as much as a mid-single digit percentage rate. Executive warned the lowered outlook was based on recent poor performance and the assumption weak trends would continue through the remainder of January. LULU is down 16%.
- Beam Inc accepted a $83.50 cash takeover offer from Japan's Suntory, a 25% premium to Friday's closing price, valuing Beam at $13.6 billion. Including Beam's debt, the deal is worth $16 billion. Over 90% of Suntory's business is in Japan and the Beam business will continue to be run in the United States.
- Foster Wheeler has agreed to a preliminary deal be acquired by the UK's largest oil services firm, Amec. The deal is $16/shr in cash and 0.9 of an Amec share - about $32/shr in total - valuing Foster Wheeler at $3.2B. Recall that there was press speculation about this deal reported last November. Foster Wheeler has agreed not to solicit alternative proposals until Feb 22nd, when the final deal will be announced. Shares of Amec were up nearly 4% in London trading.
- 11:30 (US) Treasury to sell combined $54B in 3-Month and 6-Month Bills
- 12:40 (US) Fed's Lockhart to speak on Economic Outlook in Atlanta
- 13:00 (EU) EU Parliament Panel hearing on German Bundesbank Lautenschlaeger ECB Appointment
- 14:00 (US) Dec Monthly Budget Statement: +$44.0Be v -$135.2B prior
- 14:30 (EU) EU's Rehn speaks at European Parliament Panel in Strasbourg
- 16:45 (ES) Spain PM Rajoy meets IMF's Lagarde in Washington
- (ES) President Obama meets Spain PM Rajoy in Washington
- 18:50 (JP) Japan Nov Current Account Balance: -¥368.9Be v -¥127.9B prior; Adj Current Account: +¥27.9Be v -¥59.3B prior; Trade Balance: -¥1.236Te v -¥1.092T prior
- (EU) EU's Ashton travels to Persian Gulf Jan. 13-16
- (US) Sec State Kerry with Russia Foreign Min Lavrov before Syrian Peace Talks
- (CO) Colombia Central Bank's Economists Survey
- (RU) Russia Dec Reserve Fund: No est v $86.9B prior; Wellbeing Fund: No est v $88.1B prior
- (IL) Israel Dec Trade Balance: -$1.3B v -$1.1B prior
- (PT) Portugal Dec CPI M/M: 0.4% v 0.0%e; Y/Y: +0.2% v -0.2%e
- (PT) Portugal Dec CPI EU Harmonized M/M: +0.3% v -0.3% prior; Y/Y: 02%ev 0.1% prior
- (IN) India Dec CPI Y/Y: 9.9% v 10.1%e
- (CA) Bank of Canada (BOC) Q4 Senior Loan Officer Survey: -10.8 v -7.3 prior; Business Outlook Future Sales: 29.0 v 31 prior