ECB, BoE Hold Rates Steady, Apple Recovers
Today's financial recap and tomorrow's financial outlook.
European economic data was inline to slightly better than expected. The first estimate of eurozone GDP fell -0.1% quarter-to-quarter, inline with expectations and the prior month. German factory orders rose 3.9% on a monthly basis, well ahead of 1.0% expectations and up from last month's decline of 2.4%. On a more sour note, French unemployment rose to 10.3% from last month's 10.2%, but this was less than the expected increase. Greek unemployment rose to 26% from last month's 25.3%.
The Challenger Job Cuts -- planned private layoffs -- rose 34% annually and noted a gloomy planned hiring outlook for December. Layoffs should continue to accelerate throughout the holiday season. Yesterday, the ADP private payrolls report noted a monthly increase of 118,000, down from last month's increase of 158,000.
In early trading, Apple (NASDAQ:AAPL) reached an intraday low of -3% before recovering at the open to close 1.5% higher on the day. The early sell-off could have been attributed to continued forced selling as the result of higher margins and momentum traders reaching for a stock that had dropped almost 9% in eight trading hours.
The weekly natural gas inventory report showed a decline of 74 billion cubic feet, more than the expected decline of 67 billion cubic feet. However, as natural gas futures had risen 4.3% yesterday, the better inventory report was rejected after natural futures briefly spiked intraday before declining to a loss on the day.
Tomorrow's Financial Outlook
Tomorrow the monthly nonfarm payrolls report will be released. Estimates are already factoring in a sharp decline due to Hurricane Sandy's disruptions. Economists are forecasting a monthly increase of 86,000, down from last month's increase of 171,000. The unemployment rate is expected to stay unchanged at 7.9%.
Globally, the UK and Germany will release industrial production information. German industrial production is expected to be unchanged from last month, after falling 1.8%. Given that German factory orders increased today, there is the likelihood that this could beat to the upside.
There will be no major US earnings reported.
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