Morning Report: January 10, 2012

Ahead of the Bell: Dow futures are trading up 106 points and S&P futures are trading up 12 points after Alcoa reported 4Q earnings slightly below expectations, however, revenues were better than anticipated. Investors were encouraged with prospects of the US economy improving led by a demand for industrial and manufacturing materials. Auto sales are forecasted to rise  this year, as car makers increase demand for aluminum products. Commodities prices were up and traders are speculating China might act to spur growth.

  • On the economic calendar today, Wholesale trade for November will be out after the market opens, and is forecasted to be 0.5% compared with 1.6% for October. San Francisco Federal Reserve Bank President, John Williams will be speaking at the Clark County Economic Forecast breakfast in Vancouver, Washington.  Kansas City Federal Reserve Bank President, Esther George will be speaking on the economic outlook at the Central Exchange in Kansas City. Companies reporting earnings include SYNNEX Corp. The dollar is down against the major currencies. Crude oil is currently trading at $102 a barrel. Gold is trading at $1,630.  
  • Yesterday, stocks closed higher, as investors remained cautious, and kept a close eye on developments in Europe, and geared up for the start of 4Q earnings season.
  • On CNBC today, David Novak, Chairman and CEO of Yum! Brands, and Terry Lundgren, CEO and Chairman of Macy's, talked about leaders, business, competitors, and retail sales. Novak said the best thing leaders can do is to develop great leaders to come up with great ideas and products. He also said his company is all over the world and people want to be involve and be counted, and if we did not have politics and religion the world would have been a better place. Novak feels, to be a great leader you need to learn from your competitors and he thinks McDonalds has done a great job. He is trying to leverage all the products Yum! Brands offers and expand the breath of its menu to beyond chicken, moving into breakfast and other meals. He went on to say, Yum! Brands has great assets and thinks he can use the company’s assets to compete globally. He pointed out, internationally Yum! Brands does not have any direct competitors other than McDonalds. Lundgren said, to be a great leader and have great success, you need to surround yourself with talented people. Separately, he added, restrictions on credit are keeping consumers from spending, and he is working with Washington to allow an ease of credit. He sees consumers are shopping online, on smart phones and mobile devices, together with in store buying. 
  • Happy Tuesday, have a nice day.  

Monday’s Close

DJIA up 32.77 pts/+0.27%/12,392.69

S&P up 2.89 pts/+0.23/1,280.70

Nasdaq up 2.34 pts/+0.09/2,676.56

Tuesday’s Futures

Dow Futures up 106.00 pts/+0.88%

S&P Futures up 12.40 pts/+1.20%

Nasdaq Fut up 22.58 pts/+0.94%

Overseas Markets

FTSE +1.22%

CAC 40 +2.54%

NIKKEI 225 +0.38%

HANG SENG +0.74%

Overseas:  World stock markets were up today.  European and Asian markets were up on speculation for demand for aluminum products globally.      

Economic Reports:  Wholesale Trade expected to be 0.5% at 10:00 a.m.

Top Headlines:    

  • Reports indicate the SEC has asked banks and financial institutions to take a more thorough look and disclose their exposure to European debt.
  • Raymond James Financial (RJF) is in talks to acquire Morgan Keegan from Regions Financial (RF), which could be worth about $1 billion. 
  • CNBC reports Ford Motor (F) CFO, Lewis Booth, plans to retire in the first half of this year, he was expected to take over after current CEO Alan Mulally steps down.
  • Reports suggests Bank of America (BAC) plans to cut about 20% of its Asian staff by the end of the first quarter.      

Commodities/Currency:

Gold:up $22.10 to $1,630.85

Oil:up 1.68 to $102.69

EUR/USD 1.2765 +0.0010

USD/JPY 76.8765  +0.0200

GBP/USD 1.5462 +0.0008

Volatility Index (VIX): As of the close of business Monday, January 9, the VIX is up 0.44 at 21.07

Companies Reporting Quarterly Earnings:     

None as of yet.

Today’s Opening and Closing Bells:

AdvisorShares, WCM Investment Management, Madrona Funds, and BNY Mellon to Celebrate the Listing of their Actively-Managed International ETF Strategies Kurt Winrich, CEO and Chairman, Brian Evans, Madrona Funds, Noah Hamman, will ring the opening bell.

Bally Technologies CEO & Director to join Chairman & CFO will ring the closing bell.