Morning Report: March 13, 2012

Ahead of the Bell: Dow futures are trading up 71 points and S&P futures are trading up 8 points. The Federal Reserve will be in focus, as the central bank is scheduled to hold a meeting today to be followed by an announcement in the afternoon.  Traders will be watching to see what the agency says on its easy monetary policy for the economy, interest rates, and its outlook since the recent better than expected jobs data. The FOMC might punt its decision on additional stimulus down the road in light of improving economic data.  However, economists don't expect the Fed to take a possible QE3 off the table yet given higher gasoline and food prices.  

• On the economic calendar today, the NFIB Small Business Optimism Index reported February figures rose 94.3 versus 93.9 for January.  Retail sales for February will be out before the market opens with the expectation of it being 1.2% versus 0.4% for the previous month. 


• Business inventories for January will be out after the market opens and it is anticipated to be 0.5% compared with 0.4% for December.  The dollar is up against the major currencies.  Gold is trading at $1,696. Crude oil is currently trading at $106 a barrel.


• Yesterday, stocks were mixed following a report from China that showed Chinese exports grew at a slower pace than anticipated, adding to concerns about the global economic recovery.


• On CNBC today, Jay Jordan, Chairman of the Jordan Company, talked about the jobs market and regulation.  Jordan said while he is starting to see some positives in the unemployment rate, he is not sure it is enough to affect jobs growth extensively.  We still have an 8.3% unemployment rate and there are about 2 million people who have stopped looking for work that need to get back into the workforce.  6% to 7% unemployment could become the new norm.  Jordan added we need collaboration between the private and public sectors to come together and to solve the unemployment and housing problems since the public sector alone will not be able to do it.


• Happy Tuesday and have nice day.

Monday’s Close

DJIA up 37.69 pts/+0.29%/12,959.71

S&P up 0.22 pts/+0.02/1,371.10

Nasdaq down 4.68 pts/-0.16/2,983.66

Tuesday’s Futures

Dow Futures up 71.00 pts/+0.55%

S&P Futures up 8.40 pts/+0.59%

Nasdaq Fut up 15.22 pts/+0.55%

Overseas Markets

FTSE +0.91%

CAC 40 +1.10%

NIKKEI 225 +0.09%

HANG SENG +0.97%

Overseas:  World stock markets were up today.  European and Asian markets are up on better than expected investor confidence data from Germany.      

Economic Reports:  NFIB Small Business Optimism Index expected to be 95.0 at 7:30 a.m., , Retail Sales expected to be 1.2% at 8:30 a.m., Business Inventories expected to be 0.5%, and FOMC Meeting Announcement at 2:15 p.m.

Top Headlines:    

• Midas, Inc. (MDS) announced it has agreed to be acquired by TBC Corporation for approximately $310 million in cash or $11.50 per share.


• Reports indicate United Parcel Service (UPS) will only sweeten its $6.4 billion bid by a symbolic amount at best for Dutch parcel-delivery company TNT Express.


• Apple Inc. (AAPL) and Motorola Mobility (MMI) are in discussions about a possible cross-licensing agreement over smartphone patent infringement lawsuits that would benefit both firms that use Google's Android software.


• Express Script (ESRX) and Medco Health (MHS) said they will delaying the closing of the $29 billion deal to allow antitrust regulators more time to assess the merger.      

Commodities/Currency:

Gold:down $5.10 to $1,696.85
Oil: up 0.56 to $106.90

EUR/USD 1.3112 -0.0043
USD/JPY 82.6020  -0.2800
GBP/USD 1.5654 -0.0014

Volatility Index (VIX): As of the close of business Monday, March 12, the VIX is down 1.47 at 15.64

Companies Reporting Quarterly Earnings:     

FactSet reports Q2 adjusted EPS $1.14, vs. Est $1.00 and Q2 revenue $199.4M, vs Est $198.16M.

Today’s Opening and Closing Bells:

Brazil’s Banco Bradesco Visits the New York Stock Exchange Vice-Chairman Antonio Bornia will ring the opening bell.

Endeavour International Corporation Celebrates its First Anniversary of Trading on the NYSE President and CEO William L. Transier will ring the closing bell.

Paras Madho

NYSE Euronext

Market Watch and Corporation Actions

(212) 656- 5404

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