US equity markets trade higher at the mid-way point of today’s trade despite a weaker start to the day in Europe. Initial concerns over the ongoing situation in Greece weighed on equity futures early on, with several officials noting a resolution to Greek problems is far from a done deal. Positive US data helped support markets shortly before the opening bell, with Uni of Michigan beating expectations despite the uncertainty of US presidential election lingering over investor sentiment, and better than forecast Wholesale Inventories also adding to risk appetite.
Within recent trade the energy complex has seen strength, paring back early losses after OPEC cut demand forecast for the short and longer-term. As demand for riskier products picked up in US trade, treasuries suffered the consequences and hence T-notes trade lower on the day by around 4 ticks. The pull-back in treasuries can also be largely attributable to profit-taking following the large rally yesterday witnessed after the well bid 30y auction out of the treasury.
In individual stocks news JC Penny (JCP) has grabbed attention today following their notably poor earnings report pre-market, posting a loss per share of USD 0.93, missing revenue expectations and suffering weak same store sales for Q3. After initially trading down around 10% before the opening bell they have since bounced but are still down over 6% so far today. The Fed also released details of new banking stress tests to be conducted by in 2013 to ensure adequate capital position, following Citigroup (C) narrowly missing meeting the required 5% tier 1 common ratio in the previous round.
There are no further economic events scheduled for the session however President Obama is due to speak on the fiscal cliff at 1805GMT (1205CST), his first public address since being re-elected President.
Print 17:55, 09 Nov 2012 - Market Analysis - Source: RANsquawk
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