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US stock market, economy and companies update (January 16, 2013)

Contributed by Trade The News

- The DJIA and S&P500 pushed out to fresh five-year highs during yesterday's session. Overnight, the Nikkei saw its biggest single session loss since last May following the slide in the JPY, and European indices tracked the losses in Japan. The CAC and DAX surged into the black as US trading opened. The S&P500 and DJIA opened in the red and have both drifted up to unchanged in mid morning trading, while the Nasdaq is up 0.2% in the early going on some gains in AAPL ahead of earnings.

- EUR/USD saw choppy trading during the New York session. The pair tested above 1.3320 after ECB's Nowotny said the EUR exchange rate was not a matter of major concern (downplaying Juncker's comments from Tuesday, when he called the EUR fx rate dangerously high). However, EUR/USD could not sustain its momentum and was back near the 1.3260 area by mid morning.

- Japan Airlines suspended all Boeing 787 Dreamliner flights leaving Japan on Wednesday following incidents related to the 787 aircraft, and the India aviation regulator grounded Air India 787 planes to conduct safety checks. BA is down another 3%, to the benefit of EAD.FR.

- JPMorgan had an excellent Q4, with profits up a bit more than 50% y/y and EPS well ahead of expectations. Investment banking revenues grew moderately, while the firm's more traditional lending activities were up shortly, with mortgage production up more than 50%. JPM shares declined in the premarket, however they are back to unchanged mid morning.

- Goldman Sachs crushed expectations, with both earnings and revenue well ahead of estimates. The firm's deal making and underwriting activities drove strong gains. Shares of GS are up 2.6% at around 18-month highs.

- Genworth Financial bowed to investor pressure and said it would take steps to distance itself from its troubled mortgage insurance business. Recall that the company replaced the CEO late last year. Shares of GNW are up nearly 11% this morning.
- Shares of Dell are down nearly 5%, retreating from gains seen this week on chatter of a plan to take the firm private. Recall that last night, CNBC's Faber said pricing for the reported deal with PE is said to be around $13.50-14.00/shr.

- Autoparts name BorgWarner is making solid gains after offering a strong initial FY13 forecast. Shares of BWA are up nearly 5%.

- Chipotle Mexican Grill reported preliminary Q4 earnings that were well below consensus estimates, sending shares of CMG down 6% this morning.

***Looking Ahead***
- (BR) Brazil Central Bank (COPOM) Interest Rate Decision: Expected to leave the SELIC Target unchanged at 7.25%
- (DE) German Parliament hearing on high frequency trading
- 12:00 (DE) ECB's Asmussen speaks to students at Hohenhelm University in Stuttgart
- 13:30 (DE) German Chancellor Merkel at Lower Saxony Election Rally in Osnabrueck
- 14:00 (US) Fed's Fisher on banking
- 14:00 (US) Federal Reserve releases Beige Book
- 14:30 (IT) Italian PM Monti
- 16:30 (US) Weekly EIA. Crude Oil Inventories
- 16:30 (AU) Australia Dec Employment Change: 4.5Ke v 13.9K prior; Unemployment Rate: 5.4%e v 5.2% prior

***Economic Data***
- (IE) Ireland Nov Trade Balance (first estimate): €4.3B v €3.3B prior
- (ZA) South Africa Dec Retail Sales M/M: 0.9% v 0.6%e; Y/Y: 3.4% v 1.5%e
- (IS) Israel Q3 Final GDP Annualized: 2.9% v 2.8% prelim
- (US) MBA Mortgage Applications w/e Jan 11th: 15.2% v 11.7% prior
- (PL) Poland Dec Core Inflation M/M: -0.1% v 0.0%e; Y/Y: 1.4% v 1.5%e
- (HU) Hungary Central Bank (NBH) Minutes
- (US) Dec Consumer Price Index M/M: 0.0% v 0.0%e; Y/Y: 1.7% v 1.8%e
- (US) Dec CPI Ex Food & Energy M/M: 0.1% v 0.2%e; Y/Y: 1.9% v 1.9%e
- (US) Dec CPI NSA: 229.601 v 229.726e; CPI Core Index SA: 231.475231.416e
- (US) Nov Total Net TIC Flows: $27.8B v -$58.9B prior; Net Long-term TIC Flows:$52.3B v $25.0Be
- (US) Dec Industrial Production: 0.3% v 0.3%e; Capacity Utilization: 78.8% v 78.5%e; Manufacturing Production: 0.8% v 0.5%e