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US stock market, economy and companies update (March 19, 2013)

Contributed by Trade The News

- US investors shrugged off the Cyprus situation in the premarket, taking heart from some positive February buildings permit data. The effect was short lived, however, and US indices have given up gains, while European stocks are set to close not far off their lows. The DJIA is +0.23%, the S&P500 is flat and the Nasdaq is +0.10%.

- It has become clear that Cyprus's Parliament will most likely reject the terms of the €10B bailout package, forcing Cyprus to return to the negotiating table. However the island nation may be damned if it accepts the package and damned if it rejects it: Cyprus Central Bank Gov Demetriades said that if the deposit levy measure passes, the banking sector could see outflows of at least 10% in a few days, while if it doesn't Cyprus could be forced to leave the eurozone.

- Walgreen and Alliance Boots signed a 10-year deal with AmerisourceBergen and will take up to a 23 percent stake in the medical products distribution company. The deal will be very accretive to AmerisourceBergen's FY earnings and revenue. Additionally, the partners also received the right to buy up to 23% of AmerisourceBergen as part of the deal. Note that ABC replaces former Walgreen partner Cardinal Health; CAH reaffirmed its FY outlook this morning and said it would be able to mitigate the loss.

- As usual, steel name Steel Dynamics has cut its Q1 quarterly guidance ahead of the upcoming earnings season. The firm missed expectations and said overall shipments would remain flat on a sequential basis. STLD is flat on the session after some volatility, while US Steel is down 2%. Recall that Nucor slashed its Q1 guidance last week.

***Looking Ahead***
- 11:30 (US) Treasury to sell $45B in 4-Week Bills
- 12:00 (CY) Cyprus Parliament is due to convene
- 16:30 (US) Weekly API U.S. Crude Oil Inventories


***Economic Data***
- (US) ICSC/GS weekly chain store sales w/e Mar 16th w/w: 1.4%; y/y: 2.3%
- (CA) Canada Jan Wholesale Sales M/M: 0.3% v 0.4%e; Manufacturing Sales M/M:-0.2 v +0.6%e
- (US) Feb Housing Starts: 917K v 915Ke; Building Permits: 946K v 925Ke
- (US) Redbook Retail Sales w/e Mar 16th: +2.9% y/y; Mar MTD: +0.7% m/m; Mar MTD: +2.8% y/y
- (PL) Poland Feb Sold Industrial Output M/M: -2.8% v -1.9%e; Y/Y: -2.1% v -1.6%e
- (PL) Poland Feb Producer Prices M/M: 0.3% v 0.3%e; Y/Y: -0.4% v -0.5%e
- (BE) Belgium Mar Consumer Confidence: -24 v -17 prior
- (MX) Mexico Q4 Aggregate Supply & Demand: 3.5% v 3.2%e