Ahead of the Bell: Dow futures are trading up 24 points and S&P futures are trading up 2 pointsfollowing comments by Federal Reserve Chairman Ben Bernanke in testimony before Congress that he backs the central bank's bond-buying program, despite the easy monetary policy might encourage additional risk that could cause market turmoil. The Chairman defended the Fed's policy, saying the asset purchasing program helps keep long term interest rates low, which will spur growth and aid the recovery.
- On the economic calendar today, durable goods orders for January will be out prior to the opening bell, -4.0% is expected compared with 4.6% for the month prior. Federal Reserve Chairman, Ben Bernanke will be testifying before the House Financial Services Committee in Washington.
- The dollar is up against the Japanese yen and down against the euro and British pound. Gold is trading at $1,607. Crude oil is currently trading at $92 a barrel.
- Yesterday, stocks closed higher on better than expected housing starts data and consumer confidence improved and comments by Fed Chief, which defended the agency's easy monetary policy.
- On CNBC today, Bob Doll, Money Manager at Nuveen Asset Management, talked about the mood of the equity market. Doll said we have had a huge gain from the fall of 2012 to now. The market is taking a break; we can’t keep going up all the time. Investors are digesting higher gasoline prices and the political wrangling in Washington. He believes the euro zone crisis will be a temporary blip on the radar. The next hurdle will be the sequester, which is two days away. If the economy goes over the sequester deadline, it will hurt growth long term, as no one wants spending cuts.
- Happy Wednesday, and have a nice day.
Tuesday’s Close
DJIA up 115.96 pts/+0.84%/ 13,900.13
S&P up 9.09 pts/+0.61%/1,496.94
Nasdaq up 13.40 pts/+0.43%/3,129.65
Wednesday’s Futures
Dow Futures up 24.17 pts/+0.17%
S&P Futures up 2.50 pts/+0.17%
Nasdaq Fut up 3.75 pts/+0.10%
Overseas Markets
FTSE +0.29%
CAC 40 +0.72%
NIKKEI 225 -1.27%
HANG SENG +0.25%
Overseas: World stock markets are mixed. European markets are higher following comments by Fed Chairman Ben Bernanke that he supports the Fed’s bond-buying program. Asian markets are lower on rumors China might raise interest rates to curb inflation.
Top Headlines:
- Clearwire (CLWR) plans to pull financing from Sprint Nextel (S), a move that could complicate its agreement with Dish Network (DISH), which is in the process of acquiring the wireless carrier.
- Bloomberg reports Walt Disney (DIS) faces opposition to its combined chairman-CEO roles as two proxy advisers urge shareholders to vote next week in favor of splitting the positions.
- MBA reports mortgage applications were down 3.8% versus down 1.7% last week. The 30-year fixed-rate mortgages increased to 3.78%, the highest rate since August 2012, from 3.75%.
Commodities/Currency:
Gold:down $6.40 to $1,607.00
Oil:down 0.08 to $92.86
EUR/USD 1.3107 +0.0001
USD/JPY 91.6550 -0.3200
GBP/USD 1.5141 +0.0001
Volatility Index (VIX): As of the close of business Tuesday, February 25, the VIX is down 2.12 at 16.87
Companies Reporting Quarterly Earnings:
Target reports Q4 adjusted EPS $1.65, vs. Est $1.48 and Q4 revenue $22.73B, vs. Est $22.69B.
NRG Energy reports Q4 EPS $2.06 with items, vs. Est (15c) and Q4 revenue $2.06B, vs. Est $2.55B.
ITT Corp. reports Q4 adjusted EPS 37c, vs. Est 38c and Q4 revenue $554.3M, vs. Est $537.57M.
Today’s Opening and Closing Bells:
Morgan Stanley & Wall Street Rocks will ring the opening bell.
ConocoPhillips will ring the closing bell.
Paras Madho
NYSE Euronext
Market Watch & Corporate Actions
212 656 5404
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