TradeTheNews.com US Market Update
DJIA -12 S&P500 -4 NASDAQ -2.5
***Economic Data***
- (EU) EU Leaders Summit in Brussels
- (ES) Spain to present new budget targets
- (CA) Canada Dec Gross Domestic Product M/M: 0.4% v 0.3%e; Y/Y: 1.8% v 1.9%e; Quarterly GDP Annualized GDP Y/Y: 1.8% v 1.8%e
- (US) Feb New York ISM Business Index: 63.1 v 60.1 prior
- (DK) Denmark Feb Foreign Currency Reserves (DKK): 499B v 492.6B prior
- European and US equity indices are more or less flat this morning following the European Union's approval of its new fiscal pact. With little consequential economic data on the calendar, traders are watching the energy market and events in Europe. Note that overnight, EU Commissioner Juncker commented that there was a "plan B" of the Greek debt swap fails; note that markets will hear about the participation rate in the PSI debt exchange next Friday. Also note that there was some concern about Spain, where Prime Minister Rajoy said that his government not meet the 4.4% 2012 deficit-to-GDP ratio and was now targeting a 5.8% rate. Overnight deposits by banks at the ECB spiked up to a new record of €777B, versus €475B the previous day, raising concerns that the LTRO funding is not finding its way to the real economy. The troubling news further depressed the euro, with EUR/USD plummeting from 1.3300 midway through the European session to a low around 1.3200. After fluctuating wildly during yesterday's session off the Saudi pipeline story, WTI crude is around $107 this morning.
- The social media space is garnering attention this morning. Yesterday Zynga released a new gaming platform, Zynga.com, as it looks for ways to reduce its dependency on Facebook. Shares of ZNGA are up more than 6% this morning. Yelp.com's IPO this morning was very successful, with shares up more than 60% in the first hour of trading after pricing at $15 last night. Finally, Facebook said it plans to increase its $2.5B credit line to help cover a major tax hit when employee stock awards vest after it goes public. Recall that Facebook boosted its borrowing capacity by two-thirds just six months ago. In other equity news, both Footlocker Big Lots are in the red despite strong showings in Q4 reports. Shares of OSTK are down 10% after posting a big quarterly loss and a big miss on the top line.
***Looking Ahead***
- 16:00 (CO) Colombia Feb Producer Price Index M/M: No est v -0.5% prior; Y/Y: No est v 3.7% prior
- 20:00 (CN) China Feb Non-Manufacturing PMI: No est v 52.9 prior
- 20:00 (US) Fed's Bullard speaks on U.S. Economy in Vancouver
***Weekend***
- Sat (US) Republican Washington Caucus
- Sun 18:00 (EU) Bank of International Settlements (BIS) holds Global Central Bank Meeting
- Sun (RU) Russia Presidential Election
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