After Three Straight Days of Losses, US Equities Rebound
Today's financial recap and tomorrow's financial outlook.
US equities recorded a positive day after starting off 2014 with three straight days of losses. The S&P 500 (INDEXSP:.INX) gained 0.61% and retraced half of the prior three days' losses. Health care was the strongest performer in the index, gaining 0.99% as a sector. The materials sector was the only one to decline in the session.
The November 2013 US trade deficit narrowed to -$34.3 billion from -$39.3 billion in the month prior. Economists had been expecting -$40 billion. The large jump was helped by record exports to China, record imports of capital goods, autos & parts, and the lowest petroleum deficit since May 2009. The strong growth in exports caused many economists to revise their fourth-quarter GDP projections significantly higher. Many now see annualized growth in the quarter at greater than 3%.
Netflix (NASDAQ:NFLX) dropped 5.64% after Morgan Stanley downgraded the stock to an Underweight rating. According to Morgan Stanley, competition in digital streaming will increase in 2014, challenging Netflix's ability to grow its subscriber base and control marketing costs.
TrimTabs reported today that US-listed equity mutual funds and ETFs had a record $352 billion of inflows in 2013. Bond funds had record outflows of $86 billion. The prior records were $324 billion of inflows for equities in 2000 and $62 billion of outflows for bonds in 1994.
Tomorrow's Financial Outlook
Tomorrow morning the December 2013 ADP private payrolls will be released at 8:15 a.m. EST. Economists estimate that companies will have add 200,000 private payrolls in the month. The ADP report will give investors a better sense of what jobs growth was during the month before the government's official report is released on Friday morning.
The Fed will release the minutes of its December 2013 FOMC meeting at 2:00 p.m. EST. Recent speeches by Fed officials have indicated that the committee is firmly on the road to reducing its asset purchases to zero in 2014.
Tomorrow, data on November 2013 eurozone retail sales and unemployment rate will be released. Economists forecast that the unemployment rate will remain unchanged at 12.1% during the month. Also, German factory orders and trade balance will be released.
Some of the earliest fourth-quarter earnings reports are set to be released tomorrow. Notable reports include Family Dollar (NYSE:FDO), Constellation Brands (NYSE:STZ), Monsanto (NYSE:MON), and Bed Bath & Beyond (NASDAQ:BBBY).
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.
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.