Minyanville's Before The Bell: Futures Slightly Up As Investors Await The FOMC
Investors await key events today. Futures are slightly up.
Markets in Asia closed mixed last night. In Japan the Nikkei fell -2.02%. Statements by Bank of America (BAC) hit the equity markets hard. Financials led the decline as Bank of America said it expects that unprecedented dislocations in the global credit markets will have a meaningful impact on global corporate and investment banking results. Please read Professor Shedlock's Shattered Confidence as he notes the lack of confidence is "starting to be a global thing."
In other parts, South Korea's Kospi fell -1.77%, led by chipmakers a day after the U.S. Department of Justice announced it was investigating anticompetitive practices across the industry. Hong Kong's Hang Seng also fell -0.09%, although oil producers continued to add to their gains due to the rising price of oil. Cnooc (CEO) added 3.3%, and PetroChina (PTR) China's largest listed oil and gas producer, gained +0.9%. (From WSJ).
India's Sensex added +1.06%, Taiwan's TAIEX closed unchanged, and China's Shanghai Composite added +0.07%
In Europe, the CAC is up +0.14%, Germany's DAX is trading lower by -0.18%, and London's FTSE is up +0.21%.
In the U.K, investors received a bit of comfort after the British government said it would guarantee all deposits held by Northern Rock. The stock surged 11.0%. (From Reuters) Consumer Price Inflation data also added to the positive sentiment. U.K. CPI figures fell to its lowest annual rate for thirty months in August, signaling the likelihood that the Bank of England will not need to hike interest rates.
In the U.S, investors already received data from one of two key events for today. Lehman Brothers (LEH) reported 3Q results of $1.54 EPS versus $1.47 cons. Reveneus fell 22.0% year-over-year to $4.3 bln as expected. Please read Professor Depew's Five Things You Need To Know for additional details of what to watch.
The housing sector is under pressure this morning. In a report by RealtyTrac, U.S. home foreclosures rose 115.3% in August on a year-over-year basis and up 35.8% month-over-month. In addition, E*Trade (ETFC) said last night it expects its profit to fall 31% below its most recent forecast due to this summer's subprime mortgage fallout. The company also said it would exit its mortgage loans business. (From WSJ) For more stock-specific news, please click on our Stocks to Watch.
The widely considered to be all-important FOMC policy statement is schedule to be released at 2:15 PM EST. This event is thoroughly covered at the 'Ville. Please click on our Economy page for more views by our many Minyanville professors.
In addition, see below for the rest of the events for today's trading session. Click here for the full radar.
Tuesday, September 18
8:30 PPI: -0.1% cons
8:30 Core PPI: 0.1% cons
9:00 Net Foreign Purchases
2:15 FOMC Policy Statement
Before: AHII, AZO, BKRS, BBY, CBRL, KR, LEH
All right, Minyans! Please keep checking back with us for continuously updated information you need to know on our News & Views section. Good luck and good trading!
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