Market News

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08:00 am : S&P futures vs fair value: -3.0. Nasdaq futures vs fair value: -2.0. It’s shaping up to be a flat start for the stock market. The key event of the day will be testimony before the Senate Banking Commitee by Fed Chairman Bernanke, Treasury Secretary Paulson and SEC Chairman Cox. The weekly initial jobless claims are set for release at 8:30.

 

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The number of U.S. workers filing new claims for jobless benefits fell by 9,000 last week, the government said on Thursday, though a more reliable gauge of labor trends rose to its highest in more than two years.
Initial claims for state unemployment insurance aid fell for the second straight week, slipping to 348,000 in the week ended Feb. 9, down from a slightly upwardly revised 357,000 for the prior week, the Labor Department said.

http://www.cnbc.com/id/23163409

 

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[BRIEFING.COM] S&P futures vs fair value: -1.8. Nasdaq futures vs fair value: +1.3. Stock futures have a muted reaction to some generally in-line economic data. Jobless claims for the week ended Feb. 9 fell to 349K. Economists expected a reading of 350K. The December trade balance was close to expected at -58.8 billion compared to the estimate of -62.0 billion

 

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Briefing.com
Fed Chairman Bernanke has not given the market any revelations in his prepared comments, and as a result the market has had a muted response thus far. He continues to emphasize downside risks, indicating the Fed is likely to continue to ease rates. Of note, he said weakening of bond insurers are forcing banks to take markdowns, which is adding to market strains, according to Reuters.

 

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http://us.rd.yahoo.com/finance/finh....com/ap/080214/congress_recession_threat.html


AP
Bernanke Warns Economy Worsening
Thursday February 14, 11:13 am ET
By Jeannine Aversa, AP Economics Writer Fed Chairman Tells Congress Business Prospects Are Deteriorating
WASHINGTON (AP) -- Federal Reserve Chairman Ben Bernanke told Congress Thursday that the country's economic outlook has deteriorated and signaled that the central bank is ready to keep on lowering a key interest rate -- as needed -- to shore things up.

 

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Briefing.com
Bernanke was asked if he sees U.S. banks failing. He responded that the Fed's main concern is liquidity issues, noting that banks have strong capital positions and he does not currently foresee any risk of insolvency.

 

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New York Insurance Dept. Superintendent Eric Dinallo is considering splitting bond insurers, according to Bloomberg.com. The plan would split the municipal and other healthy parts of the bond insurance companies with the structured vehicles that have been under pressure. MBIA (MBI 11.90, +0.26) said earlier today that no government bailout is needed. There will be more testimony on the bond insurers later this session, including CEOs from the major companies.

 

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3:00 pm : Stocks have pushed lower to their worst levels of the session on news that FGIC has become the first major bond insurer to lose its coveted AAA rating, according to Reuters. Moody's cut the company's rating to A3.
Financials have been among today's most active stocks. Six financial firms are present in the ten most heavily traded names

 

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BRIEFING.COM] S&P futures vs fair value: -9.5. Nasdaq futures vs fair value: -15.5. Futures continue to decline on a weak economic reading. Just reported, January import prices rose 1.7% month over month, compared to the prior decline of 0.2%. The NY Empire State Index for February came in at -11.7, compared to the expected reading of 7.0. Futures respond negatively immediately after the releases. Best Buy (BBY) has cut is FY08 guidance, citing soft consumer traffic. The company is now expecting earnings per share of $3.05 to $3.10, down from $3.10 to $3.20. The First Call consensus stood at $3.17.

 

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Oil futures prices have shot back above $100 a barrel for the first time since Jan. 3. A weekend refinery explosion in Texas and the possibility that OPEC will cut production next month are driving prices higher.

 

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AP
Precious Metals Spike on Supply Concerns
Tuesday February 19, 1:49 pm ET
By Stevenson Jacobs, AP Business Writer Precious Metals Prices Rally on Platinum Supply Concerns; Soybeans Hit Record
NEW YORK (AP) -- Precious metals prices surged Tuesday, pushed higher by a drop in the dollar and expectations that ongoing electrical power problems in South Africa will lead to a protracted decline in platinum and gold supplies.

http://biz.yahoo.com/ap/080219/commodities_review.html

 

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Consumer Price Index Rises 0.4%. Core Up 0.3%. Jan. Housing Starts Rise 0.8% to 1.01 Million.

Rising food costs helped push U.S. consumer prices up for a second straight month in January by 0.4 percent, more than offsetting a moderation in energy price rises as inflation showed signs of gaining steam, according to a Labor Department report on Wednesday.
Meanwhile, permits to break new ground on U.S. homes shrank again in January, falling to their lowest rate in more than 16 years.


The Consumer Price Index, the most broadly used gauge of inflation, climbed 4.3 percent in the 12 months through January. More significantly, so-called core prices, which exclude food and energy items, rose 0.3 percent in January, the strongest monthly rise since June 2006, after gaining 0.2 percent in December.

 

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[BRIEFING.COM] S&P futures vs fair value: -13.7. Nasdaq futures vs fair value: -6.5. Futures shed some points on a pair of economic releases, one of which indicates higher than expected inflation. January CPI rose 0.4% month over month, compared to the expected rise of 0.3%. Core CPI rose 0.3% month over month, higher than the consensus estimate of 0.2%. Separately, there were 1012K housing starts in January, and 1048K building permits. Economists expected 1015K starts and 1040K permits.

 

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[BRIEFING.COM] S&P futures vs fair value: -14.1. Nasdaq futures vs fair value: -14.8. Futures continue to point to a lower start as they trade a few points above their worst levels of the session. The higher than expected inflation reading is fueling a large portion of the negative bias this morning. Crude oil prices have eased $1.25 to $98.45 per barrel, as investors take some profits after yesterday’s record closing price.

 

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[BRIEFING.COM] S&P futures vs fair value: +4.3. Nasdaq futures vs fair value: +15.0. Futures are off their best levels, but point to a higher open as carryover momentum from yesterday lifts the market. Also giving support is Research In Motion (RIMM) reaffirming its fourth quarter EPS and earnings guidance, and raising its net subscriber guidance. Cisco (CSCO) was upgraded Buy from Hold at Citigroup. World markets have performed well, as the DJ World Ex US Index is up 1.9%.

 

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[BRIEFING.COM] S&P futures vs fair value: +5.4. Nasdaq futures vs fair value: +15.0. A higher start is still expected. Jobless claims for the week ended Feb. 16 fell to 349K from the prior reading of 358K. The reading was nearly in-line with the 345K consensus.

 

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[BRIEFING.COM] S&P futures vs fair value: +6.1. Nasdaq futures vs fair value: +16.0. It is shaping up to be a positive start to the trading day as futures hovering near their best levels. Microsoft (MSFT) is to make a "significant" announcement at 11:30 ET, that is not related to its offer to acquire Yahoo! (YHOO).

 

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Briefing.com
the February Philadelphia Fed, a regional manufacturing survey, came in at -24.0. Economists expected a reading of -10.0. Since the reading is below 0, it it reflects a retraction in manufacturing in the region. Similarly, a recent NY Empire State Index disappointed, falling more than expected. This is not a good number, but it is important to keep in mind this is just a survey.
Separately, January leading indicators fell 0.1%, in-line with expectations.

 

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Briefing.com
Dept. of Energy said crude inventories for the week ended Feb. 15 rose 4.45 million barrels, more than the expected build of 2.40 million barrels. Crude was trading down 1.2% to $98.17 per barrel just prior to the report.

 

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[BRIEFING.COM] S&P futures vs fair value: +0.5. Nasdaq futures vs fair value: +4.0. Futures suggest a flat to slightly higher start to trading on Friday, after the major indices had declines over 1% yesterday. Oppenheimer analyst Meredith Whitney warned on CNBC last night that she believes Citigroup (C) will again need to cut its dividend due to being under reserved. In November, Whitney correctly predicted Citi would cut its dividend. The economic calender is empty.