Foreign Markets
In Asia, Japan’s Nikkei 225 slipped 1.1 % to 7,949.65, and China’s Shanghai index lost 0.5 % to 2,098.02. The Bank of England has cut its key interest rate by a further half percentage point to a new record low of 1 %. The BOE was founded in 1694… The European Central Bank will make their announcement later in the morning and is expected to leave rate at the current level of 2%.
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Britain’s FTSE 100 index was 0.6 % lower at 4,205.05 and Germany’s DAX down 0.8 % at 4,456.55. The French CAC 40 fell 1.3 % to 3,029.02. In Asia, Japan’s Nikkei 225 slipped 1.1 % to 7,949.65, and China’s Shanghai index lost 0.5 % to 2,098.02.
U.S. Futures
The overall market is slightly to the downside in futures trading. Dow Jones industrial average futures rose 6, or 0.08 %, to 7,931. Standard & Poor’s 500 index futures fell 0.30, or 0.04 %, to 829.50, while Nasdaq 100 index futures fell 15.25, or 1.26 %, to 1,198.75. the markets also await jobless claims here in the U.S. As of last week’s numbers, more people are receiving unemployment insurance then at any point in history.
Currencies and Commodities
Oil prices rose 0.47% to $40.51, a $2.46 while gold jumped $16.10, or 1.78% to $918.30. Silver rose 2.65% to $12.80. In the currency market, the dollar rose 0.25% to 89.65 yen. The euro was 0.136% lower at $1.2832 ahead of the ECB announcement. Despite the rate cut by the BOE, the gained 1.027% to $1.4618. Gold rose 1.26% at $850.50 an ounce.
Corporate News
Burger King (BKC) reported that 2nd quarter net income fell 10% to $44 million, or 33 cents per share, from $49 million, or 36 cents per share, a year ago. Analysts had expected a profit of 37 cents per share. Revenue rose to $634 million from $613 million, also missing analyst estimates of $658.6 million.
In an effort to maintain capital, State Street cut its quarterly dividend from 24 cents to 1 cent. The reduction will save the company $397 million this year after its earnings fell 71% in the 4th quarter.
Economic News
8:30 AM
Jobless Claims: New unemployment claims for the week of January 31st, to show the number of individuals who filed for unemployment insurance for the first time. The fewer people filing for unemployment benefits, the more have jobs, the more income in the consumer’s pocket, as well as a forecast on the strength of the economy. The consensus is for an increase of 583,000 for first time jobless claims.
8:30 AM
Productivity and Costs: Productivity measures the growth of labor efficiency in producing the economy’s goods and services for the 4th quarter. Unit labor costs reflect the labor costs of producing each unit of output. Productivity growth is critical because it allows for higher wages and faster economic growth without inflationary consequences. The consensus change in nonfarm productivity is 1.1%, down from 1.3% in the 3rd quarter. A consensus change in unit labor costs of 2.9%, up slightly from the 3rd quarter’s reading of 2.8%.
10:00 AM
Factory orders: Represent the dollar level of new orders for both durable and nondurable goods. The consensus is for a decline of 3% for the month of December. There was a sharp decline in November of 4.6%. The range varies from -6.8% on the low end, to -0.8%.
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