Foreign Markets
Global markets followed Wall Street’s move to the upside amid hopes that some sort of bottom in the housing market is beginning to take shape. Japan’s Nikkei 225 stock average rose 2.7 % to 8,038.94, while Hong Kong’s Hang Seng Index added 2.3 % to 13,063.89. South Korea’s Kospi was up 2.8 %.
In Europe, Britain’s FTSE 100 rose 0.4 % to 4,182.28, Germany’s DAX added 0.7 % to 4,406.72 and France’s CAC 40 jumped 1.0 % to 3,013.24.
U.S. Futures
Ahead of another day on the street, futures are flat amid the barrage of 4th quarter reports. Dow Jones industrial average futures rose 6, or 0.08 %, to 7,992. Standard & Poor’s 500 index futures rose 0.50, or 0.06 %, to 832.00, while Nasdaq 100 index futures fell 1.00, or 0.08 %, to 1,206.75.
Currencies and Commodities
Crude gained 1.77% to $41.50 a barrel while gold rose $9 to $901.50, a 1.01% gain for the precious metal. The dollar fell 0.387% to 89.09 yen. As the Bank of England and ECB get ready to meet this week, the dollar gained against both currencies amid expected rate cuts. The greenback gained 1.588% to the euro at $1.2833 and appreciated 0.2867% against the pound to $1.4416. Despite the dollar gains, most commodities are rising alongside equity prices.
Corporate News
The Walt Disney Co (DIS) reported a 32 % decline in quarterly profits on an 8% fall in revenue to $9.60 billion. Net income fell to $845 million, or 45 cents per share. In the same period a year earlier Disney earned $1.25 billion, or 63 cents per share.
Kraft Foods Inc. (KFT) reported 4th quarter profit fell 72 % to $163 million, or 11 cents per share, compared with $585 million, or 38 cents per share, a year earlier. Excluding onetime items, net income was 43 cents per share, compared with analyst expectations of 44 cents per share. Revenue rose 6 % to $10.77 billion, short of analyst predictions of $11.29 billion. The company also revised their 2009 estimates on revenue growth, from 4% to 3%.
Economic News
8:15 AM
ADP Employment Report: The new ADP national employment report can help improve the payroll forecast by providing information in advance of the employment report. By tracking the jobs data, investors can sense the degree of tightness in the labor market. Currently, unemployment is pushing 7.5%, with layoffs accelerating in the 1st quarter of the year.
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ISM Non-Mfg Index: A compilation from 60 non manufacturing sectors across the economic spectrum. The index helps gauge strengths and weaknesses within the economy. The composite index for the month of January is expected to have a reading of 39, down from December’s 40.6 mark.
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