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Reports US

US stock market, economy and companies update (June 18, 2014)

June 18, 2014, Wednesday, 16:57 GMT | 11:57 EST | 21:27 IST | 23:57 SGT
Contributed by Trade The News


- Once again trading volumes are lower and markets are sliding sideways, with markets waiting for the Fed decision to make any big moves. As of writing, the DJIA is down 0.16%, the S&P500 is flat and the Nasdaq is down 0.08%

- The FOMC rate decision arrives later today, followed by a press conference by Fed Chair Yellen. Few analysts expect to see much in the way of change from the Fed. The WSJ's Hilsenrath highlighted the debate within the Fed about the long-term unemployed and whether they constitute a hidden reserve of job seekers who will help keep inflation low. The dot chart may change despite the May core CPI data hitting 2.0%. Forward guidance may evolve a bit, and the new Fed governors may nudge the statement in new directions.

- In Iraq, the focus of the conflict continues to be on the Baiji refinery, where it appears that ISIS has taken nearly all of the facility, despite government assertions that they still hold the plant. White House officials continue to say there will be US airstrikes on ISIS positions, although intelligence to support strikes is still being gathered. BP and Exxon have begun evacuating staff. Crude futures are rolling from the July to the August contract, and the $107 level continues to present pretty strong resistance for both. Brent is trading above $113.

- Shares of ConAgra are down more than 6% this morning after the company trimmed its fourth quarter guidance slightly. ConAgra said the lower Q4 EPS is largely the result of a 7% quarterly volume decline for the Consumer Foods segment, as well as weak profits for the Private Brands segment.

- FedEx is up nearly 5% after modestly beating expectations in its fourth quarter report and offering a strong initial FY15 forecast. In the quarter express volume rose 2% and ground volume grew 8%, although y/y gains in profits and revenue overall were pretty subdued. UPS is up 1.5% in sympathy. Note also that Adobe is sustaining 8% gains this morning after a very strong earnings report out last night.

***Looking Ahead***
- 11:30 (BR) Brazil weekly Currency Flows
- 12:00 (CA) Canada to sell 2-Year Bonds
- 14:00 (US) FOMC Interest Rate Decision
- 14:30 (US) Fed Chair Yellen press conference
- 17:00 (KR) South Korea May PPI Y/Y: % v -0.3% prior
- 21:30 (JP) BOJ Board Member Morimoto speaks in Akita


***Economic Data***
- (PT) Portugal May PPI M/M: 0.0% v 0.1% prior; Y/Y: -0.5% v -0.6% prior
- (US) MBA Mortgage Applications w/e Jun 13th: -9.2% v +10.3% prior
- (BR) Brazil Jun IGP-M Inflation (2nd Preview): -0.6% v -0.6%e
- (ZA) South Africa Apr Retail Sales M/M: 0.0% v 0.0%e; Y/Y: 1.8% v 1.7%e
- (RU) Russia May Industrial Production Y/Y: 2.8% v 2.0%e
- (PL) Poland May Sold Industrial Output M/M: -1.7% v +0.4%e; Y/Y: 4.4% v 5.9%e
- (PL) Poland May PPI M/M: -0.2% v +0.1%e; Y/Y: -1.0% v -0.7%e
- (BR) Brazil Jun IBGE Inflation IPCA-15 M/M: 0.5% v 0.4%e; Y/Y: 6.4% v 6.4%e
- (US) Q1 Current Account Balance: -$111.2B v -$97.0Be
- (CA) Canada Apr Wholesale Trade Sales M/M: 1.2% v 0.5%e
- (US) DOE Crude: -580K v -1Me; Gasoline: +785K v +0.5Me; Distillate: +435K v +0.5Me