US stock market, economy and companies update (January 27, 2014)
January 27, 2014, Monday, 18:45 GMT | 13:45 EST | 23:15 IST | 01:45 SGT
- Leading tech and social media names down on no news, Caterpillar propping up DJIA.
- Troubled ICBC vehicle China Credit Trust saved by unnamed investor
- Another taper on tap at FOMC meeting on Wednesday
- Continuing EM currency chaos is whipping around global markets in Monday trading. Asia and European equities saw some steep losses, with the Nikkei and FTSE the biggest victims. Trading has been very choppy in the US session. As of writing, the DJIA is up 0.7%, the S&P500 is down 0.20% and the Nasdaq is down 0.92%.
- New home sales declined 7% y/y to 414K in December, missing expectations and declining for a second consecutive month. Nevertheless, sales for all of 2013 climbed to 428K, the highest level in five years. Homebuilders are in the red this morning on the data, with the exception of NVR, which is up more than 6% on a very good Q4 earnings report.
- The Turkish Lira spiked to record lows against the greenback and the euro after Turkey Central Bank announced plans to hold an emergency meeting on Tuesday, Jan 28th. Last week, the bank resisted heavy market pressure to defend a tumbling lira and fight inflation in fear of dampening economic growth ahead of elections this year. Expectations are for the bank to hike rates and/or impose currency controls at the emergency meeting.
- Leading social media tech names have tanked from the open of cash trading with no apparent news driving the losses. In the first hour of trading, shares of Linked dropped 5%, Facebook fell 4% and Google declined 3%. Other leading tech names are also losing ground, contributing to the Nasdaq's terrible performance in the early going this morning. Note that small online advertising name Millennial Media is up 13% after hiking its Q4 guidance.
- Caterpillar reported strong results in its fourth quarter, with profit and revenue totals widely topping expectations on very strong profit growth. The firm's initial FY14 earnings outlook was also very good, although Q4 revenue fell about 10% y/y. The company cautioned that the mining industry would remain weak but also said inventory declines at dealers were mostly over.
- Among the biggest decliners today are the ADRs of Nam Tai Electronics. NTE dropped 18% before recovering after the company's fourth quarter profits fell 75% y/y and revenue fell more than 25%. Geron fell up to 14% after disclosing that 20 patients have discontinued from Imetelstat study since its inception.
- 11:30 (US) Treasury to sell $53B in 3-Month and 6-Month Bills
- 12:00 (FR) France Dec Net Change in Jobseekers: +1.1Ke v +17.8K prior; Total Jobseekers: 3.20Me v 3.293M prior
- 13:00 (DE) German Fin Min Schaeuble with Spain Fin Fin De Guindos and Sweden Fin Min Borg in Brussels
- 16:00 (KR) South Korea Feb Manufacturing Business Survey: No est v 79 prior; Non-Manufacturing Survey: No est v 70 prior
- (RU) Russia Dec PPI M/M: +1.0% v -0.5%e; Y/Y: 3.7% v 2.0%e
- (RU) Russia Dec Real Retail Sales M/M: 19.4% v 19.6%e; Y/Y: 3.8% v 4.0%e
- (RU) Russia Dec Investment in Productive Capacity: 0.3% v 0.0%e
- (RU) Russia Dec Real Disposable Income: 1.5% v 2.2%e
- (TR) Turkey Jan Real Sector Confidence: 101.4 v 102.1 prior
- (TR) Turkey Jan Capacity Utilization: 73.9% v 76.0% prior
- US) Jan Preliminary Markit PMI Services: 56.0 v 56.1 prior
- (MX) Mexico Nov Economic Activity Y/Y: 0.0% v 0.8%e
- (MX) Mexico Dec Preliminary Trade Balance: $1.6B v $0.8Be
- (US) Dec New Home Sales: 414K v 455Ke
- (US) Feb Dallas Fed Manufacturing Activity: 3.8 v 3.3e
- (IL) Israel Central Bank leaves Base Rate unchanged at 1.00%; as expected