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US stock market, economy and companies update (March 15, 2013)

Contributed by Trade The News

- US equities are under pressure this morning. Two March data reports came in soft: the preliminary March U of Michigan confidence declined from February's strong readings and the March Empire Manufacturing index also dropped slightly from Feb levels. Meanwhile, the greenback remains weaker for a second consecutive session. Note that yesterday the S&P 500 closed within two points of its all-time closing high of 1,565.15. The DJIA is down 0.27%, the S&P500 is down 0.21% and the Nasdaq is down 0.32%.

- The euro maintained its foothold above 1.30 overnight and even tested as high as 1.3100 before the open of US cash equity trading. European leaders considered a variety of ongoing problems at the EU summit. Portugal cleared its seventh troika review and reports suggested that the EU and the IMF would have a rescue package for Cyprus next week. FX analysts also believe a USD correction was triggered by fundamental developments in the technically stretched market. GBP/USD is around 1.5150 after the BoE's King said the bank was not trying to weaken the pound.

- Carnival's Q4 report showed the company eked out a better-than-expected profit in its Q4, after the big loss a year ago. However the firm cut its FY13 forecast and offered very weak Q1 guidance. In addition, reports suggested another Carnival ship was having engine trouble this morning. Shares of CCL bottomed out down about 7% before retracing some losses.

- Shares of the SIFIs are moving this morning in the wake of the Fed CCAR disclosures. BoA is up 3% on authorization of a big $10B buyback, including a repurchase of $5B in common shares and a redemption of $5.5B in preferred stock. Wells Fargo is up 2% on approval of a $0.30 dividend and a share buyback program. JPMorgan is down 3% after the Fed asked it to resubmit its CCAR capital plan to address "weaknesses." In addition, former CIO Ina Drew is testifying before the Senate regarding the London Whale losses.

- JC Penny is in headlines as the troubled retailer launches the Joe Fresh apparel line this morning. Analysts say that if sales do not turn around with Joe Fresh shops, there is little chance for CEO Johnson to keep his job. Shares of JCP are flat on the day.

- Shares of Apple are up slightly in the early going after Legg Mason's Bill Miller reiterated his bullish case for the company. Last night Samsung unveiled its new iPhone competitor, the Galaxy S4, featuring a 5-inch high-res display and various impressive features.

***Looking Ahead***
- 12:00 (EU) Euro Area Finance Minister meet on Cyprus bailout
- 12:15 (EU) EU President Van Rompuy speaks at GMF Conference
- 13:30 (EU) France's Fabius speaks at GMF Conference in Brussels
- 15:00 (AR) Argentina Q4 Quarterly GDP: 1.9%e v 0.7% prior


***Economic Data***
- (BR) Brazil Mar FGV Inflation: 0.2% v 0.3%e
- (BR) Brazil Jan Economic Activity Index M/M: 1.3% v 0.8%e; Y/Y: 3.8% v 4.5%e
- (US) March Empire Manufacturing: 9.24 v 10.00e
- (US) Feb Consumer Price Index M/M: 0.7% v 0.5%e; Y/Y: 2.0% v 1.9%e
- (US) Feb CPI Ex Food & Energy M/M: 0.2% v 0.2%e; Y/Y: 2.0% v 2.0%e
- (US) Feb CPI NSA: 232.166 v 232.102e; CPI Core Index SA: 232.512 v 232.482e
- (US) Jan Total Net TIC Flows: $110.9B v $22.2B prior; Net Long-term TIC Flows: $25.7B v $40.0Be
- (CA) Canada Feb Existing Home Sales M/M: -2.1% v +1.3% prior
- (US) Feb Industrial Production: 0.7% v 0.4%e; Capacity Utilization: 79.6% v 79.4%e; Manufacturing Production: 0.8% v 0.5%e
- (US) March Preliminary University of Michigan Confidence: 71.8 v 78.0e