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.

Euro Slide Leads US Stocks Lower


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

This morning, the European Central Bank left its benchmark interest rate unchanged at 0.75% as expected. During his regular press conference, President Mario Draghi made no major changes to his comments on the European economy, though he noted that credit growth continued to be weak. He also reiterated that inflation would remain low and significant growth from the euro area would remain to the downside.

However, the eurodollar continued to weaken significantly after the press conference and it dragged down European and US stocks to an intraday low of almost -1%. Though, after the European close, US stocks recovered as the dip was bought to finish slightly down on the day.

Hedge fund manager David Einhorn and Apple (AAPL) had it out in the public sphere after Einhorn initiated a lawsuit to block Apple's Proposal #2 -- one that would prevent Apple from issuing preferred stock. In the afternoon, Apple issued a press release responding to Einhorn, saying that it would continue to consider his firm's proposal.

In US economic data, weekly initial jobless claims declined slightly to a 366,000 weekly rate from last week's revised higher 371,000. In the afternoon, consumer credit as reported by the Federal Reserve rose a seasonally adjusted $14.85 billion in December 2012. The jump was led by a large increase in revolving commercial bank lending.

Tomorrow's Financial Outlook

Tomorrow morning, the US will release trade balance from December. In November, the trade balance widened to -$48.7 billion from -$42.1 billion as exports declined. Wholesale inventories are expected to increase by 0.4% month-to-month from 0.6% in November. This report should have less impact as we already know from the 4Q GDP that inventories declined, but have picked back up in January of this year.

Globally, China will also release its trade balance data along with inflation data in the form of the consumer price index. Chinese inflation is expected to decline to an annual rate of 2.0% from 2.5% in December. Canada and Switzerland are also scheduled to release employment data.

Earnings will be light as it is Friday. The only reports are from Moody's (MCO) and Apollo Global (APOL).

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.
< Previous
  • 1
Next >
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.

Featured Videos