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Reports US

US stock market, economy and companies update (June 19, 2014)

June 19, 2014, Thursday, 15:32 GMT | 11:32 EST | 20:02 IST | 22:32 SGT
Contributed by Trade The News


- Yesterday equities shot higher post the FOMC decision and the dovish tone from Fed Chair Yellen, with the S&P500 closing at fresh record highs. Equities in Asia and Europe saw plenty of follow-through strength. This morning the brief rally is over and the S&P500 is off its highs. As of writing, the DJIA is down 0.18%, the S&P500 is down 0.10% and the Nasdaq is down 0.23%.

- The greenback has softened up a bit this morning after hovering around the 1.3590 area post-FOMC. The slightly dovish spin plus the cut to the 2014 forecasts did not give FX traders any reason to buy the dollar. Overnight traders took the EONIA fixing, set at a fresh record low, as a reason to sell and EUR/USD rose to around 1.3640. Emerging market and carry-related currencies have also benefitted from the Fed dovishness. GBP/USD hit fresh five-year highs as it rose above $1.7011, its highest level since July 2009.

- The battle for Iraq's contested Baiji refinery, with both government and ISIS forces claiming to have secured the plant. Meanwhile, the Kurds have restarted oil exports from Kirkuk, sending oil out through Turkey, which is supporting their efforts to export crude. WTI trading has rolled over into the August contract, which is lower today at $105.90 than it's been a four sessions.

- Rite Aid is in the red this morning despite meeting expectations in its first quarter results. Earning declined more than 50% y/y thanks to higher drug costs and steeper reimbursement rate reductions, while revenue was up a scant 2.7%. Comp sales gains were very good. RAD is down 2.5% while rival WAG is down 0.5%.

- Engineering and defense name KBR is down nearly 10% today after racking up its 19th consecutive straight quarter of revenue declines. The firm swung to a quarterly loss from profits a year ago and revenue fell 11% y/y. Executives said they would undertake an in-depth strategic review to reorient the company.

- BlackBerry continues to restructure its business and reform for a more modest market position. The firm's margins rose firmly for a second consecutive quarter, and the quarterly loss was smaller than expected. Revenue was slightly better than expected. New CEO Chen said the company is getting very close to making money or at least break even on hardware sales. Chen said restructuring is nearly complete. Shares of BBRY are up 13.5%.

- Shares of troubled retailer American Apparel gained well over 22% in the premarket after the company's board said it would fire founder and CEO Dov Charney for cause. Overnight, the New York Post reported that Charney's exit tees up the company for a sale.

***Looking Ahead***
- 15:00 (US) API Monthly Statistical Report
- 15:00 (AR) Argentina May Trade Balance: $1.5Be v $926M prior


***Economic Data***
- (IT) Italy Apr Current Account Balance: €2.0B v €1.0B prior
- (UK) Jun CBI Industrial Trends Total Orders: 11 v 2e; Selling Prices: 3 v 5e
- (RU) Russia Gold and Forex Reserve w/e Jun 13th: $468.7B v $469.9B prior
- (RU) Russia May PPI M/M: 0.4% v 0.3%e; Y/Y: 8.9% v 8.6%e
- (US) Initial Jobless Claims: 312K v 313Ke; Continuing Claims: 2.561M v 2.60Me
- (BE) Belgium Jun Consumer Confidence: -7 v -6 prior
- (MX) Mexico Q1 Aggregate Supply and Demand: 2.4% v 2.0%e
- (US) Jun Philadelphia Fed Business Outlook: 17.8 v 14.0e
- (US) May Leading Index: 0.5% v 0.6%e
- (CO) Colombia Q1 GDP Q/Q: 2.3% v 1.6%e; Y/Y: 6.4% v 5.2%e
- (US) Weekly EIA Natural Gas Inventories: +113 bcf v +107-11 bcf expected

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