Ahead of the Bell: Dow futures are trading down 35 points and S&P futures are trading down 5 points on this shortened trading session ahead of the Christmas holiday. Last week’s sell-off from Thursday and Friday, due to impediments in fiscal cliff discussions, are expected to continue today, as U.S. President Obama and House Speaker, John Boehner are out of Washington for the holidays. Congress is scheduled to return to the nation’s capital on Thursday. Retailers will be in focus today, as shoppers take advantage of sales, heading to stores for last minute gifts.
- On the economic calendar today, no are reports are due out. The NYSE will be closing at 1:00 p.m. today and re-opening at 9:30 a.m. on Wednesday.
- The dollar is down against the major currencies. Gold is trading at $1,660 and oil is trading at $88.
- Last week, the major indices rallied early on but gave a lot of their gains back with the Dow ending the week up 0.4% and the S&P finishing up 1.2%. The early rally was driven by optimism that President Obama and the Republican Party will come to a compromise to resolve the fiscal cliff which would increase taxes and cut spending, potentially pushing the U.S. economy back into a recession. Stocks sold off later in the week after Republican house speaker, John Boehner failed to compile enough votes from his own party to pass his "Plan B" tax bill on Thursday. Setbacks in the fiscal cliff discussions have caused much uncertainty in the financial markets, which could spill over into this week unless investors receive some encouraging news out of Washington. Various economic reports released last week, indicated that the economy was resilient in November; consumer spending rose by the most in three years and other data showed that business investment jumped. On a lower note, reports signaled that consumer sentiment slumped in December. It was an active week in the M&A space, as Knight Capital Group announced it will merge with Getco and the NYSE and Intercontinental Exchange (ICE) announced their merger where ICE will acquire the NYSE for $8.2 billion.
- The week ahead: Traditionally, the shortened Christmas holiday trading week is quiet, but with the fiscal cliff still pending, investors will be eying Washington very closely. Although some setbacks in fiscal cliff discussions between the two political parties last week, many investors remain optimistic that congress will strike a deal before year's end. Market participants will also look for some positive economic data out of the U.S. The S&P/Case-Shiller home index will be released on Wednesday following the Christmas holiday. Economists are forecasting the data to show a nine-consecutive month of gains. Initial jobless claims will be released on Thursday and is expected to be 360K, roughly in line with last week's number.
- Merry Christmas and happy holidays.
Friday’s Close
DJIA down 120.88 pts/-0.91%/13,190.84
S&P down 13.54 pts/-0.94/1,430.15
Nasdaq down 29.38 pts/-0.96/3,021.01
Monday’s Futur27
Dow Futures down 35.17 pts/-0.27%
S&P Futures down 5.25 pts/-0.23%
Nasdaq Fut down 10.25 pts/-0.39%
Overseas Markets
FTSE +0.07%
CAC 40 -0.27%
NIKKEI 225 -0.99%
HANG SENG +0.16%
Overseas: World stock markets are lower today as European markets either traded half a day or were closed for the holiday. Asian markets were trading slightly higher, led by Chinese banks and gold mining stocks.
Economic Reports: None
Top Headlines:
- According to sources, Mexico’s, Grupo Bimbo may make a bid for Hostess, but some analysts believe the bid would not go through due to anti-trust laws.
- Gasoline prices in the U.S. dropped to the lowest level in a year as refining and retail margins sank. The average price for regular gasoline at U.S. pumps fell 11.72 cents in the two weeks ended Dec. 21 to $3.2579 a gallon, extending its decline to almost three consecutive months.
- Wells Fargo (WFC) will pay up to $2.5 million in attorney’s fees and implement certain corporate governance changes under a proposed settlement of lawsuits brought by shareholders.
Commodities/Currency:
Gold:up $14.20 to $1,660.10
Oil:down 1.47 to $88.66
EUR/USD 1.3226 +0.0042
USD/JPY 84.4225 +0.1975
GBP/USD 1.6171 +0.0001
Volatility Index (VIX): As of the close of business Friday, December 21, the VIX is up 0.17 at 17.84
Companies Reporting Quarterly Earnings:
None as of yet.
Today’s Opening and Closing Bells:
Dancers from Les Ballets Trockadero de Monte Carlo will visit the NYSE in their most festive attire to spread Christmas cheer and celebrate their three week holiday engagement at the Joyce Theater. In honor of the occasion, twelve of the dancers will ring the opening bell.
Grammy award-winning jazz artist, Chris Botti Visits the New York Stock Exchange and will ring the closing bell.
Giuseppe Montefinese
Corporate Actions & Market Watch
NYSE Euronext | Global Corporate Client Group
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