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.

Volatility Returns on Mixed Economic Data


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

The Consumer Price Index fell 0.7% in January, the largest decline since December 2008 as gasoline prices dropped.

The Core CPI, which excludes volatile food and energy prices, rose 0.2%, ahead of the 0.1% expected.

James Bullard, President of the St. Louis Fed, said in a CNBC interview that the data was supportive of a Federal Reserve interest rate hike.

The US dollar reversed recent losses and traded up against the euro and yen. That sent oil prices sharply lower, with crude oil falling over 4%. US Treasury yields rose 5 bps.

Durable Goods Orders rose 2.8% in January, exceeding the 1.6% consensus forecast due to strong aircraft order activity.

Excluding transportation, orders rose 0.3% vs. the 0.5% gain expected.

Initial Jobless Claims for last week were 313,000, slightly worse than expected. 

The S&P 500 fell after the open, hitting an intraday low of 2105.93 before finishing at 2110.74, down 0.15%, in volatile trade.

Tech stocks outperformed as Apple (AAPL) bounced back from yesterday's 2.6% decline. The NASDAQ Composite rose 0.4% to 4987.89.

Energy stocks were notably weak courtesy of the decline in crude oil. The Energy Select Sector SPDR ETF (XLE) declined by 1.9%. (CRM) was a standout performer today, driving 11.7% higher on its solid fourth-quarter earnings report.

On the negative side, Sears Holdings (SHLD) fell 4.9% after reporting disappointing fourth-quarter revenues.

European bond yields were broadly lower today as traders continue to scoop up bonds ahead of the ECB's QE program, which begins in March.

This morning, the German 7-year yield fell below zero for the first time ever, just a day after Germany first sold 5-year debt at a negative yield.

Tomorrow's Financial Outlook

Friday will mark yet another day with a heavy round of data.

At 8:30 a.m. ET, the second estimates of fourth-quarter GDP will reported, followed by ISM Milwaukee at 9:00 a.m, Chicago PMI at 9:45, and Pending Home Sales and University of Michigan Sentiment at 10:00 a.m.

On the global front, Japan Housing Starts and German CPI will be released in the morning.

There are no major companies reporting earnings.

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.
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