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US stock market, economy and companies update (March 06, 2013)

Contributed by Trade The News

- US equity indices gained a bit in the premarket after the DJIA's record high close at 14,253 yesterday. However equities have floated down toward unchanged in the first two hours of trading and gold has made a move higher after a solid two weeks of decline, topping $1,583. The DJIA is up 0.23%, while both the S&P500 and the Nasdaq are flat.

- The ADP data widely topped expectations this morning and the January number was revised higher, supporting the thesis that the economy is slowly healing. Of course last month's good ADP was followed by a disappointing non-farm payrolls number, and analysts continue to denigrate the ADP survey's predictive powers. Estimates for Friday's non-farm payrolls report stand at 160K. New orders for factory goods fell in January thanks to weakening demand for transportation equipment.

- The greenback has maintained a firm tone through the US session, with USD/JPY above 93.60 and EUR/USD dipping toward 1.3000. Note that there will be several key rate decisions over the next 24 hours from Brazil, Japan, the BoE and the ECB. The BoC struck a dovish tone in its statement after leaving rates unchanged, sending USD/CAD above 1.0330. The Polish Zloty weakened after an aggressive 50bps rate cut.

- Chinese internet name Sohu.com gave up all its gains from yesterday in the premarket after executives denied the Chinese press reports that the firm was looking to delist from the Nasdaq. SOHU is down 9% and others like YOKU are down more than 5%. BIDU is flat on the day.

- Hovnanian is down 5% this morning after reporting a small quarterly loss and sub-par revenue in its Q4 report. Note that the firm's backlog and margins continue to expand nicely. Other homeowners are up in the low single digits.

- Plenty of takeover rumors are making the rounds this morning: Apple is said to be interested in Akamai, PE firms are said to have offered $64/shr for Harley Davidson, and GE is said to be interested in acquiring First Solar.

- Shares of troubled retailer American Eagle are looking weaker this morning, down more than 11%. The firm met diminished expectations in its Q4, however its Q1 guidance was weak, and it warned comps would go negative again.

- Maidenform Brands is down 8% after offering terrible Q1 guidance in its Q4 report.

***Looking Ahead***
- 12:00 (BR) Brazil Jan Vehicle Production: No est v 279.3K prior; Vehicle Sales: No est v 311.5K prior; Vehicle Exports: No est v 36.2K
- 14:00 (US) Fed's Beige Book
- (BR) Brazil Central Bank (COPOM) Interest Rate Decision: Expected to leave the SELIC Target - Rate unchanged at 7.25%


***Economic Data***
- (PL) Poland Central Bank (NBP) cut the Base Rate by 50bps to 3.25%, more than expected
- (BR) Brazil Feb FGV Inflation IGP-DI: 0.2% v 0.4%
- (PT) Portugal Jan Industrial Sales M/M: +3.3 v -7.9% prior; Y/Y: -4.7 v -6.8% prior
- (US) MBA Mortgage Applications w/e Mar 1st: +14.8% v -3.8% prior
- (US) Feb ADP Employment Change: +198K v +170Ke
- (BE) Belgium Q4 Final GDP Q/Q: -0.1% v -0.1% prelim; Y/Y: -0.4% v -0.4% prelim
- (US) Jan Factory Orders: -2.0% v -2.2%e
- (CA) Canada Feb Ivey Purchasing Managers Index Seasonally Adj: 51.1 v 56.0e; PMI Unadj: 51.6 v 54.8 prior
- (CA) Bank of Canada (BOC) left Interest Rates unchanged at 1.00%, as expected
- (US) DOE Crude: +3.83M v +0.5Me; Gasoline: -615K v -1Me; Distillate: -3.83M v -1Me; Utilization: 82.2% V 85.2%e