US Stocks Work Off Short-Term Oversold Conditions
Today's financial recap and tomorrow's financial outlook.
The Reserve Bank of Australia kept rates on hold last night as expected. However, for the first time in more than a year, it did not note an excessively high level in the Aussie dollar and stated that the prudent course moving forward would be one of rate stability. The Aussie dollar rose more than 2% vs. the US dollar and Japanese yen.
US equities bounced back today after the extreme sell-off yesterday. At its intraday high, the S&P 500 (INDEXSP:.INX) retraced nearly 50% of Monday's losses. Health care and consumer staples stocks led today's bounce, though many traders were not trusting the rally. The equity put/call ratio on the CBOE was 180% to open the day, an extremely high reading.
Due to the projected amount of snowfall in the Northeast, natural gas futures jumped again today. Natural gas futures rose 9.61% in today's trading after falling 10.25% in the prior two sessions.
Microsoft (NASDAQ:MSFT) officially announced that Satya Nadella, its head of Cloud and Enterprise group, would take over as CEO of the company. Additionally, founder Bill Gates would step down as chairman and assume a new role on the board as a technical advisor.
Tomorrow's Financial Outlook
The January ADP private payrolls report will be released tomorrow morning. Investors will be paying close attention to this result as it should give a very good sense of whether or not Friday's official government payrolls report will be worse or better than expected. Economists estimate that payrolls will rise 185,000 during the month, down from 238,000 in the month prior. Also due out tomorrow morning is the national ISM services index, which is expected to rise to 53.7 in January from 53.0 in the month prior.
There will be two services PMI releases in Europe tomorrow as well. The final estimate of eurozone services PMI and the UK January services PMI are scheduled to be reported. December 2013 eurozone retail sales are also scheduled to be reported.
Thirty-four major US companies are scheduled to report earnings tomorrow. Notable reports include Merck (NYSE:MRK), Ralph Lauren (NYSE:RL), Walt Disney (NYSE:DIS), Green Mountain Coffee Roasters (NASDAQ:GMCR), Pandora (NASDAQ:P), Twitter (NYSE:TWTR), and Marathon Oil (NYSE:MRO).
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