NYSE Morning Update 12/06/12

Ahead of the Bell: Dow futures are trading down 2 points and S&P futures are trading down 2 points.  All eyes will be on Europe today, as the ECB is set to meet to provide updates on interest rates and the health of the euro zone economy going into 2013.  The central back is expected to keep rates unchanged but investors will be looking for clues as to whether or not ECB Chief, Mario Draghi will further ease policy amid a weakening euro zone, as the European Commission sees modest, 0.1% growth next year.  President Barack Obama reassured financial markets on Wednesday that a deal on the fiscal cliff could be made in "about a week" if Republicans compromise, but neither side has yet to make any concessions.

  • On the economic calendar today,  jobless claims data for the week ended 12/1 will be released and 380K is expected, vs. 393K the week prior. 

  • The dollar is up against the Japanese yen and down against the euro and British pound.  Gold is trading at 1,725 and Oil is trading at $87.

  • Yesterday, stocks rallied, led by financials amid optimism that lawmakers will come to an agreement to avoid going over the fiscal cliff.

  • On CNBC today, Lawrence Summers, Former Treasury Secretary, spoke on the fiscal cliff and potential tax hikes.  Summers said raising tax rates is something the President has been insisting on for years now.  He believes that the President has been clear that he will not sign legislation without increasing taxes.  Summers understands the President’s position, but said we need to do it in a balanced and structured way.  There has not been a model put forward as of yet that is economically credible or plausible by either party.

Wednesday’s Close

DJIA up 82.71 pts/+0.64%/13,034.49

S&P up 2.23 pts/+0.16%/1,409.28

Nasdaq down 22.99 pts/-0.77%/2,973.70


Thursday’s Futures

Dow Futures down 2.17 pts/-0.02%

S&P Futures down 2.10 pts/-0.15%

Nasdaq Fut down 2.75 pts/-0.10%


Overseas Markets

FTSE +0.07%

CAC 40 +0.09%

NIKKEI 225 +0.81%

HANG SENG -0.09%


Overseas:  World stock markets are higher today.  European markets are higher today as investors await the ECB meeting where interest rates are expected to be unchanged.  Asian markets are higher today as a weaker yen helped boost exports.


Economic Reports: Jobless Claims (380K expected) at 8:30 a.m.


Top Headlines:    

  • According to sources, Chevron Corp (CVX) added $15 billion to the cost of the Gorgon liquefied natural gas (LNG) export complex, joining a growing list of Australian LNG projects to run over budget.

  • Reports indicate, U.S. securities regulators charged a Wells Fargo (WFC) investment banker and nine others with fraud on Wednesday in connection with their alleged role in an insider-trading ring that earned more than $11 million by trading on tips about impending mergers.

  • Homeowners and banks are accelerating sales of properties for less than the amount owed as a U.S. law that gives them a tax break expires at the end of the year.

  • Daimler AG, which helped form European Aeronautic, Defence & Space Co. more than a decade ago, sold half its remaining holding in the company for 1.66 billion euros ($2.17 billion) to focus on cars and trucks.

  • Starbucks Corp (SBUX) plans to increase the number of its cafes in the Americas by more than 20% by opening more than 3,000 new shops there in the next five years as it looks to rely on tea and juice as much as coffee.


Gold:up $33.30 to $1,725.70
Oil:up 0.10 to $87.98

EUR/USD 1.3070 +0.0001
USD/JPY 82.385  -0.047
GBP/USD 1.6115 +0.0023


Volatility Index (VIX): As of the close of business Wednesday December 5, the VIX is down 0.66 at 16.46

Companies Reporting Quarterly Earnings:

Toronto Dominion Bank (TD) reportsQ3 EPS of $1.83, beating estimates by $0.01 and revenue of $5.89B

Smithfield Foods (SFD)reports Q2 EPS of $0.61, beating estimates by $0.18 and revenue of $3.23B

Lululemon Athletica (LULU) reportsQ3 EPS of $0.39, beating estimates by $0.02 and revenue of $316.5M

Today’s Opening and Closing Bells:


Choice Hotels International is visiting the NYSE to celebrate 3 ground breakings in 24 hours all in NY for their Cambria Suites brand.  Steve Joyce, President and CEO, will ring the opening bell.


Darling International will visit the NYSE in celebration of their 5th Anniversary of Listing.  Randall Craig Stuewe, Chairman and CEO, will ring the Closing Bell.





Giuseppe Montefinese

Corporate Actions & Market Watch

NYSE Euronext  | Global Corporate Client Group
20 Broad Street | New York NY 10005
P:  (212) 656-5105



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