TradeTheNews.com US Market Update: Low-Energy Markets Await Jackson Hole
- (BR) Brazil Aug FGV Construction Costs: 0.3% v 0.4%e
- (US) ICSC/GS weekly chain store sales w/e Aug 25th: +0.5% w/w; +3.4% y/y
- (HU) Hungary Central Bank cuts the Base Rate by 25bps to 6.75%; Not expected
- (DE) Germany Aug CPI North Rhine Westphalia M/M: 0.4% v 0.4% prior; Y/Y: 1.9% v 1.3% prior
- (US) Redbook Retail Sales w/e Aug 25th: +1.5% y/y; Aug MTD: +1.8% y/y Aug MTD: -0.4% m/m
- (US) Jun S&P/ Case-Shiller 20 City M/M: 0.94% v 0.45%e; Y/Y: +0.50% v -0.05%e; HPI: 142.21 v 138.97 prior
- (US) Q2 S&P/ Case-Shiller 20 City HPI Y/Y: +1.22% v -1.38% prior; House Price index: 132.54 v 124.03 prior
- (EU) ECB Weekly Forex Reserves w/e Aug 24th: €244.0B vs. €243.6B prior
- (US) Aug Consumer Confidence: 60.6 v 66.0e
- (US) Aug Richmond Fed Manufacturing Index: -9 v -10e
- (US) FDIC Q2 Banking Profile: US banks on problem bank list 732 (lowest level since the end of 2009) v 772 prior
- US equity indices are around unchanged this morning following the US data out this morning. The August Consumer Confidence reading was concerning, with both the headline and the key expectations index widely missing consensus assumptions. Analysts note that higher gasoline prices may have played a role in the low figure
. The Richmond Fed factory survey remained in negative territory, but was a big improvement from the July reading. The June S&P/Case-Shiller data was all relatively strong, further confirming the moderate recovery that is underway in the US housing sector. Note that the Q2 S&P/CS 20-city index saw its best reading since 2006. Front-month WTI crude is trading above $96 as traders nervously watch the slow-moving Issac storm, which is still expected to gain hurricane strength as it comes ashore.
- Shares of Schnitzer Steel and other US steel firm are under pressure this morning after Schnitzer disclosed that its Q4 earnings would be breakeven, well below expectations
. Schnitzer warned that ferrous average net selling prices are expected to decline 10-15% from the third quarter of fiscal 2012. Ferrous sales volumes are also expected to decline 10-15% due to reduced flows of raw materials.
- Lexmark is up approximately 20% on news the company will restructure plus a big new $100M share buyback program. The firm will dump its remaining inkjet operations, close plants and eliminate 1,700 jobs worldwide. US rare earth name Molycorp crossed an important threshold, commencing rare earth production at its Mountain Pass mine. MCP is up 8% this morning. Apparel name PVH is up more than 6% after comfortably beating earnings expectations in its Q2 report and hiking its FY12 outlook.
- The euro maintained a firm tone through the New York session after EU President Van Rompuy proclaimed that the EU was ready to act rapidly to aid Spain's banking sector. The withdrawal of ECB chief Draghi from the Jackson Hole, WY forum prompted speculation that Europe was working on a plan to resolve the debt crisis
. However, the ECB stated later in the morning that it was still grappling with thorny details in its bond buying program. EUR/USD tested as high as 1.2573 before consolidating.
- 11:00 (BR) Brazil to sell I/L 2016, 2018 and 2022 Bonds
- 11:00 (US) Fed to purchase $4.50-5.50B in Notes
- 11:30 (US) Treasury to sell $40B in 4-Week Bills
- 13:00 (US) Treasury to sell $35b in 2-Year Notes
- 15:00 (AR) Argentina July Supermarket Sales Y/Y: No est v 11.8% prior
- 16:00 EU's Barroso to meet with Italy PM Monti later today in Brussels
- 16:30 (US) Weekly API US Crude Oil Inventories
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