TradeTheNews.com US Market Update

Friday, March 09, 2012 11:26:43 AM TradeTheNews.com US Market UpdateDJIA +46 S&P500 +7.6 NASDAQ +20

***Economic Data***
- (IN) India Central Bank cuts Cash Reserve Ratio by 75bps to 4.75%; effective immediately (intra-meeting cut)
- (IN) India Forex Reserves w/e Mar 2nd: $295.0B v $295.0B prior
- (CA) Canada Feb Net Change in Employment: -2.8K v +2.3K prior; Unemployment Rate: 7.4% v 7.6% prior
- (BR) Brazil Feb IBGE Inflation IPCA M/M: 0.5% v 0.5%e; Y/Y: 5.8% v 5.8%e
- (US) Feb Change in Nonfarm Payrolls: 227K v 210Ke; Change in Private Payrolls: 233K v 225Ke; Change in Manufacturing Payrolls: 31K v 23Ke
- (US) Feb Unemployment Rate: 8.3% v 8.3%e; Underemployment Rate: 14.9% v 15.1% prior
- (US) Feb Avg Hourly Earning M/M: 0.1% v 0.2%e; Avg Weekly Hours: 34.5 v 34.5
- (US) Jan Trade Balance: -$52.6B v -$49.0Be
- (CA) Canada Q4 Labor Productivity Q/Q: 0.7% v 0.6%e
- (CA) Canada Jan Int'l Merchandise Trade: C$2.1B v C$2.0Be
- (MX) Mexico Jan Final Trade Balance: -$287.2M v -$287.2M prelim
- (US) Jan Wholesale Inventories: 0.4% v 0.6%e
- US equity markets are racking up solid gains this morning, on the three-year anniversary of the March 2009 lows. Another very good US employment report and the successful Greek debt swap are girding the bid in equities, although traders are still waiting nervously to hear whether the ISDA will rule that the Greek deal triggered CDS or not. The headline February US payroll numbers were stronger than expected, and the back month revisions made the January report look even better. The overall unemployment rate remained stable, but the big news was the surge in the household employment series, which continues to run far ahead of its establishment survey counterpart, and together with the back month revision, this suggests the headline numbers are underestimating overall job growth. The US trade deficit widened more than expected in January, which will be a drag on Q1 GDP but could also be a signal of an improving economic environment in the US. Crude is gaining with markets, and front-month WTI is probing the $108 handle this morning. EUR/USD probed the lower end of its weekly range while USD/JPY hit fresh 9-month highs above 82.30.
- Semi names Texas Instruments and Altera offered mid-quarter updates yesterday after the close. Both firms revised their first quarter guidance slightly lower, citing some restrained demand for wireless products. TI emphasized that the backlog would grow on sequential basis, and that Q1 could mark the bottom. Shares of ALTR and NVLS are up modestly, while TXN is in the red. Starbucks unveiled a new single cup coffee system last night, and analysts are arguing this morning about whether it constitutes a competitive threat to Green Mountain or not. Starbucks asserted that the Versimo machine would focus on espresso and compliment the Green Mountain single-serve K-cup system, and executives said Starbucks would continue its long-term partnership with Green Mountain. For its part, Green Mountain emphasized the differences between the two systems (K-cups are a low-pressure for brewed coffee, while the new Starbucks system is a high-pressure system clearly on espresso). In earnings, Ann Inc. (formerly Ann Taylor) met expectations and offered in-line guidance. SBUX is up 1%, while GMCR is down 14%. Troubled cruise ship line Carnival's results were trumped by its discussion of the impact of the Costa Concordia incident. The firm slashed its guidance due to the event, and did its best to highlight that booking trends have been strong in the North America market. Shares of CCL are more or less unchanged.
***Looking Ahead***
- (GR) Greece PM holding cabinet meeting
- (GR) ISDA Committee meeting on PSI to determine whether a credit event occurred
- 11:00 (DE) German Chancellor Merkelholds State election rally in ST. Wendel
- 15:00 (AR) Argentina Q4 Quarterly GDP: 7.3%e v 9.3% prior
- 16:00 (CO) Colombia Feb Producer Price Index M/M: No est v -0.5% prior; Y/Y: No est v 3.8% prior
- (CN) China Feb Trade Balance:-$5.4Be v +$27.3B prior; Exports Y/Y: +31.1%e v -0.5% prior; Imports Y/Y: +31.8%e v -15.3% prior Legal disclaimer and risk disclosure All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.