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July 23, 2014
Jun 27 2014 | 10:14 AM

From The Trading Floor: Stocks are trading in cautious to negative territory this morning despite better than expected consumer confidence as consumers book profits for a second day in a row on the hangover effect of weaker consumer spending and hawkish comments from some Fed Governors

  • June US Michigan Consumer Sentiment (final) 82.5 vs  consensus 82.0

  • Russell Investments is planning its annual index realignment before the market close, affecting more than $5T in assets. Credit Suisse estimates $42B will trade as a result of the adjustment, resulting in one of the biggest trading days of the year in terms of dollar volume. Asset managers and investors will have to realign their portfolios to match up with the new shifts in indices such as the Russell 2000 and the Russell 3000.

  • Nike reports Q4 EPS 78c, consensus 75c. Reports Q4 revenue $7.4B, consensus $7.34B. Reports Q4 worldwide futures orders up %11, 12% growth excluding...

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Posted by: Charles Brown
Managing Director, The Capital Markets Desk
Ahead of the Bell
Jun 27 2014 | 8:11 AM


Ahead of the Bell: Dow futures are trading down 25 points and S&P futures are trading down 4 points. Global shares are holding steady despite geopolitical tensions in Iraq and Ukraine. Reports indicate Russia is opposing a trade and political agreement Ukraine signed with the European Union, while the Iraqi army battled with rebel insurgents overnight. Investors were disappointed with a few pieces of US economic data this week and weaker euro zone business and consumer confidence data. However, market participants took comfort that the soft economic data could keep interest rates at record lows for the foreseeable future.

On the economic calendar today, consumer sentiment for June will be out after the opening bell, a reading of 81.9 is forecasted compared with 81.2 for May.
The dollar is up against the Japanese yen and the British pound and down against the euro. Gold is trading at $1,315. Crude oil is...

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Posted by: Parasnand Madho
Director, Market Watch & Corporate Actions
End of Day Report
Jun 26 2014 | 4:33 PM

End of Day Report

U.S. equities finished  lower on Thursday as St. Louis Fed President Bullard's reiteration for a potential rate hike by the end of Q1'15 and a disappointing consumer spending reading weighed on the markets.  Six of the ten major sectors ended  in negative territory, with Staples and Finance leading declines. Utilities and Healthcare relatively outperformed. Gold and Crude is lower as is the dollar against its major rivals. 

U.S. consumer spending rose less than expected in May, likely held back by weak healthcare spending, which could prompt economists to temper their second-quarter growth estimates. The Commerce Department said on Thursday consumer spending increased 0.2 percent after being flat in April. Spending, which accounts for more than two-thirds of U.S. economic activity, had been forecast rising 0.4 percent. 

Investors also focused on this morning's Fedspeak, with comments from St....

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Specialist, Market Watch
Market Drivers
Jun 26 2014 | 11:58 AM

U.S. equity markets have taken a small break from the recent rally, and have traded slightly lower this week. We should see a spike in volume on Friday as we get the final Russell Index updates. However with the 4th of July holiday on the horizon, next week should be fairly quiet. Here are three things that drove the market this week:

M&A Action

In what has become a common trend, traders had a flurry of M&A news to digest as we went through the trading week. For starters, Merger Monday stayed true to form with Oracle bidding $5.3 billion (or $68 per share) for computer hardware company Micros Systems. The bid represents approximately an 18% premium over the firms prior price. We also saw U.S. healthcare firm Abbott Laboratories enter an agreement to purchase Russian drug maker Veropharm for up to $495 million. Considering the country’s faltering economy and civil unrest, this transaction marks a rare deal in what has been a very quiet period for Russian M...

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Posted by: Ronald Bohlert
Managing Director, Global Corporate Client Group
Jun 26 2014 | 10:08 AM

From The Trading Floor: Equities opened up but took a quick turn down after the government reported consumer spending increased less than forecast in May and comments by a Fed Governor indicated that the economy was close to the target inflation measure

  • Jobless Claims for the period ending June 21st fell by 2,000 to a one month low of 312,000, a sign of steady progress in the labor market

  • Consumer Spending in the US. Grew less than forecast in May as consumers used gains in income to shore up household finances. Purchased climbed 0.2% after being little changed the period before. Personal Income climbed 0.4%

  • The PCE Deflator for May came in pretty much on target rising 0.2%, the same as the previous period. PCE inflation, which is the inflation gauge the Fed watches, increased 1.8% year over year, moving it closer to the Fed's longer run target of 2.0%. Core PCE was up 1.5% year over year.

  • Consumer...

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Posted by: Charles Brown
Managing Director, The Capital Markets Desk