Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Bank of Japan Turns the Dial to Unlimited

By

Today's financial recap and tomorrow's financial outlook.

PrintPRINT
The big story today was the Bank of Japan's decision overnight to raise its inflation target to 2% from its previous target of 1% in an effort to combat the recurring deflation in the Japanese economy. The one surprise was the central bank's decision to hold off on unlimited, open-ended purchases of Japanese government bonds and other assets until 2014. Previously, newswires had reported that the central bank would pursue a purchase plan of up to 13 trillion yen in assets.

Divergences showed themselves in the market today as both equities and bonds rallied. In stocks, defensive sectors like Utilities, and leading sectors like Financials, both outperformed the market.

US economic data was on the weaker side today and it led to a brief sell-off in the morning, but was quickly met by buying throughout the rest of the day. The Richmond Fed's manufacturing index showed serious deterioration to -12 in January, much lower than the 5 that was expected as the aftereffects of Hurricane Sandy continued to reverberate up and down manufacturing on the East Coast. This follows abnormally large misses from the Philadelphia and New York Fed manufacturing indexes last week. Existing home sales slowed to a seasonally adjusted annual rate of 4.94 million in December 2012.

On the earnings front, Traveler's (NYSE:TRV) showed a smaller-than-expected decline in the fourth quarter, resulting from decreased catastrophe losses associated with Hurricane Sandy. TD Ameritrade (NYSE:AMTD) reported better earnings after seeing record inflows in new client assets and better daily trading volume.

After the close, Google (NASDAQ:GOOG) reported better EPS at $10.65 versus $10.50 estimates, but missed revenues at $12.16 billion versus $12.36 billion estimates. Regardless, the stock jumped more than 3% as the company noted increased capex spending moving forward.

Tomorrow's Financial Outlook

The rapid pace of earnings reports will continue unabated tomorrow, with more than two-dozen major companies set to report. Most notably will be Apple's (NASDAQ:AAPL) report, which has been the most anticipated earnings report of the quarter. Other notable reports include Netflix (NASDAQ:NFLX), F5 Networks (NASDAQ:FFIV), McDonald's (NYSE:MCD), and SanDisk (NASDAQ:SNDK).

The only economic data report from the US will be the monthly home price index, which is expected to continue its multi-month rise to 0.7% from 0.5% the month prior. Globally, the UK will release employment data from the month of December and the eurozone will report consumer confidence figures.

Twitter: @Minyanville

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

PrintPRINT

Busy? Subscribe to our free newsletter!

Submit
 

WHAT'S POPULAR IN THE VILLE