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US stock market, economy and companies update (September 18, 2012)

Contributed by Trade The News

- US equity markets are back to unchanged this morning after a slow start in negative territory. Before the open Fedex's weak guidance cast a pall over markets, although the 10:00ET housing data has helped lift indices. The National Association of Home Builders's September market index bounced to its highest level since June 2006, capping five months of improvement, in the latest piece of good news for the housing market. Two Fed governors publically disagreed over QE3 this morning. Fed dove Evans asserted that the Fed is making modest, safe policy moves and called fears of Fed-fueled inflation "consistently wrong." However just ahead of Evans' speech, Fed hawk Fisher (a non-voter) told CNBC he would have voted against QE3 and diagnosed the problems of the US economy as a lack of incentives for private sector investment thanks to poor tax and regulatory structures.

- Fedex topped Q1 expectations in its quarterly report this morning, although its outlook for Q2 and the full year were troubling. The firm's Q2 guidance was very weak, and it slashed its FY13 outlook after first offering the forecast back in June. Fedex's CFO said that weak global economic conditions dampened revenue growth and drove customers away from express services. Shares of FDX are down 2%. AMD is down sharply after CFO Thomas Seifert said he would resign later in September, ahead of the firm's upcoming earnings. AMD asserted that departure is not based on any disagreement.

- More names are cutting guidance and offering profit warnings ahead of earnings season. Office furniture name HNI Corp trimmed its Q3 earnings and revenue outlook due to softer-than-expected demand. Following similar actions out of the steel industry last week, Nucor warned that its Q3 earnings would be well below the current consensus view. On the other hand, Intuit reaffirmed its full-year outlook.

***Looking Ahead***
- 16:30 (US) Weekly API Crude Oil Inventories

***Economic Data***
- (PT) Portugal Aug Producer Prices M/M: 0.9% v 0.5% prior; Y/Y: 4.0% v 3.0% prior
- (ZA) South Africa Q3 BER Consumer Confidence: -1 v -3 prior
- (US) ICSC/GS weekly chain store sales w/e Sept 14th w/w: -2.5% v +1.0% prior; y/y: +2.1% v +3.4% prior
- (PL) Poland Aug Employment M/M: -0.1% v -0.2%e; Y/Y: 0.0 v 0.0%e
- (PL) Poland Aug Avg Gross Wages M/M: -0.4% v +0.3%e; Y/Y: 2.7% v 3.1%e
- (US) Q2 Current Account Balance: -$117.4B v -$127.0Be
- (US) Redbook Retail Sales w/e Sept 15th: +2.4% y/y, Sept MTD: +1.8% m/m, Sept MTD +2.5% y/y
- (US) July Total Net TIC Flows: $73.7B v $16.7B prior; Net Long-term TIC Flows: $67.0B v $9.3B prior
- (US) Sept NAHB Housing Market Index: 40 v 37e