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Bank of Japan Fails to Live up to Investor Expectations

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

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Overnight, international markets took a beating across the board. The global sell-off was triggered by the Bank of Japan's lack of action regarding its expansion of purchases in Japanese ETFs and REITs. Investors were looking for some change in monetary policy in order to cope with the extremely volatile market in both stocks and bonds. Most notably, Greece tumbled nearly 5% for the second straight day after a failed sale of a government utility company yesterday.

US assets were in the red as well. The S&P 500 (INDEXSP:.INX) dropped 17 handles on the day. The 10-year treasury was down 2.27 bps to 2.188%. Crude oil slipped almost 1% to just over $95 per barrel. The Treasury auctioned $32 billion of 3-year notes with the lowest demand ratio in nearly three years.

The NFIB Small Business Optimism Index surpassed expectations, coming in at 94.4 against the 92.3 prediction. However, the ICSC-Goldman Store Sales Index unexpectedly dropped 2.7% last week. Wall Street expected to see a 1.9% increase. US wholesale trade came in line with expectations, rising 0.2% month over month.

Google Inc. (NASDAQ:GOOG) announced that it is acquiring Israeli mapping company Waze for $1.1 billion; shares traded down 1% on the day.

Chairman and CEO of Dole Food Company Inc. (NYSE:DOLE), David Murdock, announced a $12 per share tender offer for the rest of the outstanding common stock. Shares of the fresh food and vegetable producer traded up more than 20% on the news to a close of $12.45.

After the disappointing news from the Bank of Japan last night, the Street will be following the release of Japanese PPI and industrial orders at 7:50 p.m. ET tonight.

Tomorrow's Financial Outlook

Tomorrow morning, the Italian consumer price index (CPI) will be released at 4:00 a.m. ET. Economists are looking for year-over-year growth of 1.2%. Additionally, Germany and France are releasing their CPIs. The German index is expected to have risen 1.7% year over year and the French index is expected to have risen 0.9% over the same time period.

The Great Britain labor market report will be released at 4:30 a.m. ET tomorrow. The anticipated ILO unemployment rate is 7.8%.

European Union industrial production will be released at 5:00 a.m. ET. The Street is looking for month-over-month growth of 0.3% and year-to-year growth of -0.7%.

The weekly EIA petroleum status report will be released at 10:00 a.m. ET. Later in the day, the US Treasury budget will be released at 2:00 p.m. ET. The consensus budget is -$110 billion.

The Men's Wearhouse, Inc. (NYSE:MW) and H&R Block (NYSE:HRB) are both releasing earnings tomorrow.

Twitter: @Minyanville

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No positions in stocks mentioned.

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