pls ping me when you do.
Ahead of the Bell: Dow futures are trading down 24 points and S&P futures are trading down 3 points. Concerns over an economic slowdown in China and the tug-of-war between the US and Russia over the occupation of Russian forces in Crimea are keeping investors jittery. Industrial metals, including copper, fell to a four year low and are free falling on growth prospects for the largest economy in Asia. Emerging market currencies, such as the Australian dollar, the Chilean peso, and South Africa’s rand, which are highly sensitive to commodities, all retreated. Reports suggest China’s central bank is prepared to loosen monetary policy if economic growth slows further by cutting the amount of reserves banks are required to hold. Market participants worry that China’s recent initiative to stamp out speculation on its rising currency and easy lending may have overshot, adding more strains on emerging markets.
• On the economic calendar today, the treasury budget will be released at 2:00 p.m. EST and $-218.0B is expected, vs. $-10.4B last month.
• The dollar is up against the Japanese yen and the British pound and down against the euro. Gold is trading at $1,356. Crude oil is currently trading at $98 a barrel.
• Yesterday, stocks fell from near a record while Treasuries gained, as copper and oil led commodities lower amid concern that signs of a slowing economy in China will hurt demand.
• On CNBC this morning, Charles Campbell, Executive Director at MKM Partners, talked about President Obama seeking to expand overtime pay and the slowdown in China. Campbell said every administration comes into office seeking to make their mark and this administration is tackling the minimum wage argument. On the argument that corporation are greedy, Campbell said companies seeking to make a profit are not necessarily a bad thing. The real issue is income level at American households, that is what is driving the push for raising the minimum wage. Campbell added to construct a policy that is highly popular might be dangerous. He went on to say the cause for concern over a slowdown in China is a reflection of the shadow banking system that is using copper and other industrial metals as a collateral. As a result, China is having a huge impact on emerging market currencies.
• Have a great day!
Tuesday’s Close
DJIA down 67.43 pts/-0.41%/ 16,351.25
S&P down 9.56 pts/-0.51%/ 1,867.56
Nasdaq down 27.26 pts/-0.63%/ 4,307.19
Wednesday’s Futures
Dow Futures down 24.00 pts/-0.15%
S&P Futures down 3.50 pts/-0.19%
Nasdaq Futures down 9.50 pts/-0.27%
Overseas Markets
FTSE -0.83%
CAC 40 -1.27%
NIKKEI 225 -2.59%
HANG SENG -1.65%
Overseas: Global stock markets are lower today. European and Asian markets are lower on concerns over a slowdown in China and the continuing crisis in Ukraine after Russian forces invaded Crimea.
Economic Reports: Treasury Budget ($-218.0B expected) at 2:00 p.m.
Top Headlines:
• King Digital Entertainment Plc, known for the hit mobile phone game Candy Crush Saga, said it expects to price its IPO at between $21 and $24 per share, valuing the company at about $7.56 billion. The company will list its shares on the New York Stock Exchange under the symbol “KING”.
• Media executives are questioning the Comcast-Time Warner Cable deal as it has raised questions about Comcast’s potential dominance of the US broadband Internet market if regulators allow its $45.2 billion merger with Time Warner Cable (TWC) to be completed.
• Hedge fund manager William Ackman is alleging that Herbalife Inc. (HLF) is breaking direct-selling laws in China and that he has evidence the to prove it.
Commodities/Currency:
Gold: up $12.41 to $1,356.90
Oil: down $1.40 to $98.75
EUR/USD 1.3869 +0.0012
USD/JPY 102.7305 -0.2495
GBP/USD 1.6586 -0.0030
Volatility Index (VIX): As of the close of business Tuesday, March 11, 2014 the VIX is up 0.50 at 14.70.
Companies Reporting Quarterly Earnings:
Dresser-Rand reports Q4 EPS 43c, vs. Est $1.29 and Q4 revenue $827M, vs. Est $1.09B.
Express reports Q4 EPS 57c, vs. Est 59c Reports Q4 revenue $715.88M, vs. Est $721.13M.
Today’s Opening and Closing Bells:
WGL Holdings, Inc. will visit the New York Stock Exchange. To mark the occasion, Terry D. McCallister, WGL Chairman and CEO, will ring the NYSE Opening Bell.
Glimcher Realty Trust (GRT), a premier real estate investment trust specializing in the development and ownership of retail properties, including regional malls, outlet centers and open-air centers, will visit the New York Stock Exchange (NYSE). This year marks the company’s 20th anniversary of listing on the NYSE. Chairman and CEO Michael P. Glimcher, joined by members of Glimcher’s leadership team, will ring the NYSE Closing Bell.