It was another quiet day today as the S&P 500
(INDEXSP:.INX) traded in a tight 4.5 point range with no major swings throughout the day until market close. Economic data in the morning showed the import price index falling 1.5% annually, inline with economist expectations and inline with the prior month. More troubling was the trade balance data, which showed the US's trade balance widening to -$48.7 billion from last month's -$42.2 billion, much wider than the -$41.3 billion consensus.
Overseas in Japan, the stimulus efforts continued. New Prime Minister Shinzo Abe announced a new $116 billion fiscal stimulus package that will coincide with the Bank of Japan's new effort to embrace a 2% inflation target. The Finance Ministry also noted that the Japanese government would also stand ready to intervene in the currency markets should the yen begin to appreciate meaningfully.
Research In Motion
(Nasdaq:RIMM) dipped in early trading, but rallied back after leaked images of BB10 phones showed six different models of the handset. There was also speculation that the new platform would debut on all of the major carriers. RIM's stock finished the day up more than 13%.
Treasuries rallied in the afternoon and into the close as the Commitment of Traders report showed a continued exodus of speculative traders. 10-year Treasury yields reached a high of 1.92% intraday before Treasuries sparked a rally and yields declined to 1.86% by the equity close.
Pre-market, Wells Fargo
(NYSE:WFC) released its earnings, reporting earnings per share of $0.94, which was better than analyst estimates of $0.89. More troubling was the sharp decline in mortgage origination and tightening in the bank's net interest margin (NIM) to 3.56% from 3.66%. The stock fell 1% on the day to $35.04.
Monday's Financial Outlook
On Monday, there will be no major economic reports or earnings released in the US, so the only major news item of note is Federal Reserve Chairman Ben Bernanke's speech at market close in Ann Arbor, Michigan. Chairman Bernanke will speak to students at the University of Michigan about monetary policy and the US economy.
Globally, the eurozone will release industrial production figures and Australia will release data on home loans.
No positions in stocks mentioned.
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