OVERNIGHT MARKETS AND NEWS
Mar E-mini S&Ps (ESH17Â -0.08%) are down -0.08% and European stocks are down -0.09% ahead of the results of today’s ECB meeting. The ECB is expected to keep its monthly asset purchases at 80 billion euros ($85 billion) until March, and then at 60 billion euros from April to December. The markets will also scour comments from ECB President Draghi about when the central bank may begin to taper QE at his press conference following today’s ECB meeting.
Metals prices are weaker with Feb COMEX gold (GCG17Â -0.76%) down -0.82% and Mar COMEX copper (HGH17Â -0.52%) down -0.59% at a 1-week low after comments yesterday from Fed Chair Yellen bolstered interest rate hike expectations when she said the U.S. economy is close to the Fed’s objectives of full employment and stable prices.
Stock losses were muted as energy producing companies gained with Mar WTI crude oil prices (CLH17Â +1.21%) up +0.69% after the API late yesterday reported that U.S. crude stockpiles fell by -5.04 million bbl last week. Asian stocks settled mixed: Japan +0.94%, Hong Kong -0.21%, China -0.38%, Taiwan -0.26%, Australia +0.24%, Singapore +0.27%, South Korea +0.23%, India +0.19%. Chinese stocks were led lower by losses in mining stocks with the slide in metals prices while Japanese stocks moved higher as strength in USD/JPY boosted exporter stocks.
The dollar index (DXY00Â +0.15%) is up +0.18%. EUR/USD (^EURUSD) is up +0.32%. USD/JPY (^USDJPY) is down -0.06%.
Mar 10-year T-note prices (ZNH17Â -0.34%) are down -13.5 ticks at a 1-week low on continuation of weakness seen late yesterday after comments from Fed Chair Yellen bolstered the prospects for more Fed rate hikes.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) weekly initial unemployment claims (expected +5,000 to 252,000, previous +10,000 to 247,000) and continuing claims (expected -12,000 to 2.075 million, previous -29,000 to 2.087 million), (2) Dec housing starts (expected +8.9% to 1.187 million, Nov 18.7% to 1.090 million), (3) Jan Philadelphia Fed business outlook index (expected -4.9 to 15.1, Dec +11.0 to 19.7), (4) Treasury auctions $13 billion of 10-year TIPS, (5) Fed Chair Janet Yellen speaks to the Stanford Institute for Economic Policy Research, and (6) EIA Weekly Petroleum Status Report.
S&P 500 earnings reports today include: IBM (consensus $4.88), AMEX (0.99), Union Pacific (1.33), PPG Industries (1.18), BB&T (0.74), M&T Bank (2.04), JB Hunt (1.01), KeyCorp (0.29), Bank of NY Mellon (0.77), People’s United Financial (0.24), Schlumberger (0.26), Skyworks Solutions (1.58).
U.S. IPO’s scheduled to price today: Keane Group (Pending:FRAC).
