NYSE Morning Update 01/25/13

Ahead of the Bell: Dow futures are trading up 35 points and S&P futures are trading up 3 points . Better than expected German business confidence data, along with improving manufacturing and jobless claim figures from the US is providing support to investors.  Traders are hoping the contraction in the euro zone's largest economy is over. A Japanese Finance Minister was quoted saying, the central bank would take the "appropriate action" if the yen continues to strengthen. Proctor and Gamble will be in focus today after the household products manufacturer reported strong 4th quarter earnings, a sign consumers are returning to name brand items.

• On the economic calendar today, new home sales for December will be out after the opening bell, it is forecasted to be 388K compared with 377K for the month prior.


• The dollar is up against the British pound and down against the euro and Japanese yen.  Gold is trading at $1,665.  Crude oil is currently trading at $96 a barrel.


• Yesterday, stocks ended mixed on positive economic data from manufacturing and the labor market.  However, Apple’s disappointing earnings dragged the tech sector lower.


• On CNBC today, Rich Bernstein, CEO of Richard Bernstein Capital Management and Austan Goolsbee, former White House Council of Economic Advisers for the Obama administration, talked about the equity market trading at a 5-year high.  Bernstein said the economy is continuing to improve, but it is not booming.  That is what the equity market is responding to, along with better than expected earnings.  Separately, Bernstein is concerned with the Japanese market and the recent increase in the yen, as it could drag on the global recovery.  Goolsbee agrees with Bernstein, that the economy is improving and financial markets are responding appropriately.


• Happy Friday, have a nice day, and a wonderful weekend.

Thursday’s Close

DJIA up 46.00 pts/+0.33%/13,825.33

S&P up 0.01 pts/+0.01/1,494.82

Nasdaq down 23.29 pts/-0.74/3,130.38

Friday’s Futures

Dow Futures up 35.17 pts/+0.25%

S&P Futures up 3.90 pts/+0.25%

Nasdaq Fut up 10.75 pts/+0.40%

Overseas Markets

FTSE +0.14%

CAC 40 +0.66%

NIKKEI 225 +2.88%

HANG SENG -0.08%

Overseas: World stock markets are up today.  European and Asian markets are up on better than expected economic data from Germany and Asia.

Economic Reports: New Home Sales expected to be 388K at 10:00 a.m.

Top Headlines:

Cisco Systems Inc. (CSCO) announced it is selling its home-networking unit, including the Linksys business to Belkin International for an undisclosed sum, as the company refocuses

Bristol-Meyers Squibb Co (BMY) said it has agreed to settle a hepatitis C claim for $80 million with 15 patients killed or hurt during the testing of the experimental phase of a drug.

Reports indicate a judge has fined HCA Holdings (HCA) $162 million for failing to follow the terms of its deal to make improvements to rundown hospitals it bought in the KC area several years ago.

Commodities/Currency:

Gold: down $4.90 to $1,665.85

Oil: up 0.33 to $96.28

EUR/USD 1.3438 +0.0100
USD/JPY 90.9550  +0.5300
GBP/USD 1.5765 -0.0010

Volatility Index (VIX): As of the close of business Thursday, January 24, the VIX is up 0.23 at 12.69

Companies Reporting Quarterly Earnings:

Procter & Gamble reports Q2 core EPS $1.22, vs. Est $1.11 and Q2 revenue $22.2B vs. Est $21.91B.

Honeywell reports Q4 EPS $1.10, vs. Est $1.09 and Q4 revenue $9.58B, vs. Est $9.51B

Halliburton reports Q4 adjusted EPS 67c, vs. Est 61c and Q4 revenue $7.3B vs. Est $7.06B.

Kimberly Clark reports Q4 adjusted EPS $1.37, vs. Est $1.35 and Q4 revenue $5.3B vs. Est $5.19B.  Organic sales rose 5%, highlighted by a 9% increase in K-C International.

Today’s Opening and Closing Bells:

2013 World Economic Forum in Davos NYSE Euronext, the Campaign to Fix the Debt and Executives of NYSE-listed Companies will ring the opening bell remotely in Davos.

Edible Schoolyard Celebrates its National School Lunch Initiative Randy Fertel, Task Force Leader NO Edible Schoolyard and head of the Ruth U. Fertel Foundation will ring the closing bell.