Morning Report: March 27, 2012

Ahead of the Bell: Dow futures are trading down 8 points and S&P futures are trading down 2 points following yesterday’s significant rally on comments from Federal Reserve Chairman, Ben Bernanke that the central bank will keep its easy monetary policy.  France reported consumer confidence rose unexpectedly in March, although China’s industrial output decreased in March.

• On the economic calendar today, S&P Case-Shiller HPI for January will be out before the market opens and it is expected to be -0.2% compared with -0.5% for December.  Consumer confidence for March will be out after the market opens with a forecasted to be 70.9 versus 70.8 for the previous month. 


• Federal Reserve Chairman, Ben Bernanke will deliver the third of four lectures at the George Washington School of Business.  Boston Federal Reserve Bank President, Eric Rosengren will be speaking to the National Institute for Economic and Social Research in London.  The dollar is up against the Japanese yen and down against euro and British pound.  Gold is trading at $1,693. Crude oil is currently trading at $107 a barrel.


• Yesterday, stocks surged after Fed Chairman, Ben Bernanke said accommodative stimulus policy is still needed, and investors speculated the EU might increase the size of the bailout fund.


• On CNBC today, Florida Governor, Rick Scott, talked about getting America back to work.  Scott said if you want jobs to grow, you have to have lower taxes, less regulation, and a business friendly environment.  He pointed out, a lot of American money is sitting off shore right now and he believes companies are at a significant disadvantage because of the healthcare law, which he sees as killing business.  Ultimately, we just need to allow businesses to compete in the market place. 


• Happy Tuesday and have a nice day.

Monday’s Close

DJIA up 160.90 pts/+1.23%/13,241.63

S&P up 19.40 pts/+1.39/1,416.51

Nasdaq up 54.46 pts/+1.78/3,122.57

Tuesday’s Futures

Dow Futures down 8.00 pts/-0.06%

S&P Futures down 2.40 pts/-0.11%

Nasdaq Fut down 2.22 pts/-0.07%

Overseas Markets

FTSE -0.02%

CAC 40 +0.16%

NIKKEI 225 +2.36%

HANG SENG +1.83

Overseas:  World stock markets were up today.  European and Asian markets are up, after Federal Reserve Chairman Ben Bernanke said the central bank will keep its easy monetary policy.      

Economic Reports:  S&P Case Shiller HPI expected to be -0.2% at 9:00 a.m. Consumer Confidence expected to be 70.9 & and Richmond Fed Mfg Index expected to be 18 at 10:00 a.m.

Top Headlines:    

• Dollar General Corporation (DG) announced it plans on buying back $300 million shares from it controlling shareholder Buck Holdings L.P.


• Apple Inc. (AAPL) CEO Tim Cook is in China for talks with government officials to iron out issues surrounding iPad trademark and local labor.


• Reports indicate Enterprise Partner and Enbridge Inc. (ENB) plan to build a pipeline to transport crude oil from Canada and compete with TransCanada's proposed Keystone pipeline.


• CNBC reports former Morgan Stanley (MS) Chief Executive Officer John Mack will join KKR & Co., (KKR) as a senior adviser.     

Commodities/Currency:

Gold:up $3.10 to $1,693.85
Oil: up 0.29 to $107.32

EUR/USD 1.3360 +0.0005
USD/JPY 82.8015  -0.0670
GBP/USD 1.5970 +0.0003

Volatility Index (VIX): As of the close of business Monday, March 26, the VIX is down 0.56 at 14.26

Companies Reporting Quarterly Earnings:     

Lennar reports Q1 EPS 8c, vs. Est 4c and Q1 revenue $724.9M, vs. Est $699.38M.

McCormick reports Q1 EPS 55c, vs. Est 53c and Q1 revenue $906.7M, vs. Est $869.81M

Today’s Opening and Closing Bells:

Greg Friedman, Managing Director of Global ETF Product, Russell ETFs, will ring the opening bell.

Security Traders Association of NY (STANY) visits the NYSE. Christine Sandler, STANY President and EVP, Global Sales of NYSE Euronext, joined by STANY members will ring the closing bell.

Paras Madho

NYSE Euronext

Market Watch and Corporation Actions

(212) 656- 5404

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