Style Underperformer:
Sector Underperformers:
- 1) HMOs -1.08% 2) Banks -.60% 3) Internet -.55%
Stocks Falling on Unusual Volume:
- NRP, GIB, MTH, SHLD, FNP, FIVE, YRCW, XLRN, CTRP, PSMT, SHOO, AEGR, HUM, SNX, DSLV, KRO, CEC, AMBA, AA, ADEP, TIF, GWPH, ARMH, CYD, KEYW, SZYM, WETF, UIS, FWM, ZUMZ, GOGO, CUDA and SEM
Stocks With Unusual Put Option Activity:
- 1) GT 2) HTZ 3) CCL 4) TIF 5) XHB
Stocks With Most Negative News Mentions:
- 1) AA 2) SHLD 3) TSLA 4) JCP 5) FB
Charts:
Style Outperformer:
Sector Outperformers:
- 1) Gold and Silver +2.74% 2) Homebuilders +2.48% 3) Airlines +1.28%
Stocks Rising on Unusual Volume:
- CNAT, GALT, ICPT, FRAN, ANF, ECYT, RPTP, INFY, CNW, IRWD and MDCO
Stocks With Unusual Call Option Activity:
- 1) FTNT 2) ARR 3) ABT 4) ANF 5) XOMA
Stocks With Most Positive News Mentions:
- 1) TIF 2) HES 3) LNKD 4) AAPL 5) TGT
Charts:
Evening Headlines
Bloomberg:
- Morgan Stanley(MS) Warns of Crisis Amid Inflation Sign: Japan Credit.
Morgan Stanley said inflation and overspending threaten to push Japan's
finances to the brink, amid signs government-bond investors are
preparing for rising consumer prices. "There's the risk interest
payments would swell should the government fail to cut budget deficits
when inflation and yields grind higher," Feldman said in an interview in
Tokyo on Jan. 8. "Absent an increase in tax revenues stemming from a
tangible improvement in the real economy, there is a risk of collapse."
- Yen Seen Rallying 16% Threatens Abe’s Successes: Market Reversal. Mitsubishi UFJ Morgan Stanley
Securities Co. and Westpac Banking Corp. are breaking from the
pack to bet the yen will rally in 2014, which could threaten
Japan’s efforts to reflate the economy. The yen will surge 16
percent to about 90 per dollar this year, which would be the strongest
level since last January, from 104.82 in New York yesterday, according
to Naohiko Miyata at Mitsubishi UFJ, citing trading patterns. The yen
slid 18
percent versus the dollar last year, the most since 1979, after
Prime Minister Shinzo Abe began his economic strategy of fiscal
spending, monetary easing and growth initiatives. “We’ve probably reached a bottom in the yen, and if that
proves to be true, we’ll see a large rebound,” Miyata, the
firm’s Tokyo-based chief technical analyst, said by phone on
Jan. 6. “Since the start of the Abe trade, we haven’t seen any
corrections exceeding 10 yen. 2014 will probably be the year
where we’ll see such a move.”
- China Dec. Exports Trail Estimates as Import Gains Accelerate. China’s export growth trailed estimates in December while import gains beat projections, government data showed today. Overseas shipments rose 4.3 percent from a year earlier, the General Administration of Customs said today in Beijing. That compares with the median estimate for 5 percent growth from 39 economists surveyed by Bloomberg News. Imports (CNFRIMPY) increased 8.3 percent, leaving a narrower-than-projected trade surplus of $25.64 billion.
- Taiwan Rejects China Fishing Rules for Foreign Vessels in South. Taiwan said it rejected China’s fishing rules requiring foreign vessels to seek permission from China before entering waters near its southern shores and called for reduced tensions in the South China Sea. Taiwanese fishermen are proceeding as normal without
declaring themselves and haven’t been stopped by Chinese
authorities, deputy minister of mainland affairs Wu Mei-hung
said at a press briefing today.
- China’s Benchmark Index Heads for Weekly Retreat on IPO Concerns.
China’s stocks fell, sending the benchmark index towards losses for
this week, amid concern new share offerings will divert funds.
Technology shares and brokerages slumped, while dairy producers rallied.
The Shanghai Composite Index (SHCOMP) fell 0.2 percent to 2,022.87
at 10:22 a.m., adding to a weekly loss of 2.9 percent.
- Asian Stocks Fall on China Trade Data Before U.S. Jobs.
Asian stocks fell, with the regional benchmark index extending its
weekly loss, as data showed China’s trade surplus narrowed and investors
await reports U.S. payrolls. Rio Tinto Group and BHP Billiton Ltd.,
Australia’s biggest shippers of iron-ore to China, fell at least 1.5
percent. Mitsubishi Materials Corp., which processes metals, dropped 1.6
percent in Tokyo as it plans to halt a plant after an explosion.
Dainippon Sumitomo Pharma Co., which has the Japanese
distribution rights for a liver-disease drug developed by
Intercept Pharmaceuticals Inc., soared 12 percent after a
clinical trial proved successful. The MSCI Asia Pacific Index slipped 0.2 percent to 138.72
as of 11:20 a.m. in Tokyo, on course for a 1.1 percent loss this
week.
- Rebar Heads for Fifth Weekly Drop on China Data, Iron Ore Price.
Steel reinforcement-bar futures in Shanghai headed for a fifth weekly
decline after iron ore prices fell to a five-month low, even as imports
of the raw material
climbed to a record in 2013. Rebar for May delivery on the Shanghai
Futures Exchange
traded little changed at 3,452 yuan ($570) a metric ton at 10:54
a.m. local time. The contract has lost 2.5 percent this week,
the most since May.
- Rubber Set for Biggest Weekly Drop Since April on China Demand.
Rubber in Tokyo declined, heading for the biggest weekly loss since
April, amid speculation that China’s economy is slowing and will weaken
demand for the commodity used in tires. The contract for delivery in
June on the Tokyo Commodity
Exchange fell as much as 1.1 percent to 254.1 yen a kilogram
($2,424 a metric ton), matching a two-month low reached Jan. 7.
Futures traded at 255.8 yen at 10:33 a.m. local time and have
lost 6.8 percent this week, the most since the five days through
April 19.
- Debt Rule Faces Dilution as Global Regulators Heed Bank Warnings. Lenders are poised to win
concessions from central bank chiefs and global regulators over
a debt limit they criticized as a blunt instrument that would
penalize low-risk activities and curtail lending. A revised
leverage-ratio plan is set to be laxer than a draft published last year
by the Basel Committee on Banking Supervision, said a person familiar
with the scope of a Jan. 12
meeting of the group’s oversight body at which the measure will
be discussed. Leverage ratios are designed to curb banks’ reliance on
debt by setting a minimum standard for how much capital they
must hold as a percentage of all assets on their books. A
quarter of large global lenders would have failed to meet the draft
version of the leverage limit had it been in force at the end of 2012,
according to data published by the committee in
September.
- PCs Mark Steepest Drop With Shipments Slumping 10% in 2013. Personal-computer shipments fell 10
percent in 2013, marking the worst-ever decline after lackluster
holiday sales underscored how consumers and businesses are
shunning machines for mobile devices, two research firms said. Manufacturers shipped 315.9 million units, returning to
2009 levels and making it the “worst decline in PC market
history,” researcher Gartner Inc. said in a statement today.
IDC also said shipments had a record decline.
- Pentagon Says Snowden Took Most U.S. Secrets Ever: Rogers. The Pentagon concluded that Edward Snowden committed the biggest theft of U.S. secrets in history,
downloading about 1.7 million intelligence files, including
information that could put personnel in jeopardy, according to
lawmakers. The Defense Department found that Snowden’s disclosures
last year could “gravely impact” national security and that
much of what he took is related to current military operations,
Representative Mike Rogers, chairman of the House intelligence
committee, said in a statement today describing the findings.
- Sears Holdings(SHLD) Falls After Forecasting Fourth-Quarter Loss. Sears Holdings Corp. fell as much as
21 percent in late trading after forecasting a fourth-quarter
loss and posting lower sales during the holiday period. The shares tumbled 13 percent to $36.90 at 7 p.m. in New
York after earlier plunging as low as $33.51. Sears rose 19
percent in 2013.
Wall Street Journal:
- Banks Face New U.S. Moves Against Laundering. The Justice Department has put Wall Street
on notice that it plans additional enforcement actions against banks
that haven't done enough to stem the flow of illicit funds into the U.S.
financial system. A top Justice
Department official, in an interview with The Wall Street Journal, said
banks have stepped up efforts to guard against money laundering in the
wake of several high-profile federal enforcement actions, but the U.S.
is still finding problems as it investigates banks.
- Banks Cut as Mortgage Boom Ends. With Rates Creeping Up and Refinancings Dwindling, Lenders Get Squeezed and Earnings Face Hit. A sharp slowdown in mortgage refinancing is
forcing banks to cut jobs, fight harder for a smaller pool of
home-purchase loans and employ new tactics to drum up business. The
end of a three-decade period of falling mortgage rates has slammed the
brakes on a huge wave of refinancing by U.S. households. The drop-off
has deprived lenders of a key source of income at a time when the growth
in loans for home purchases remains weak.
- Apple(AAPL) Devices Flow Into Corporate World. The
popularity of the iPhone and iPad among employees is prompting
corporate tech managers to rewrite policies and change traditional
buying patterns. The iPhone has
replaced the BlackBerry as the mobile phone of choice, as the iPad
assumes tasks once reserved for PCs.
Fox News:
- Republicans call for removal of Obama supporter leading IRS targeting probe. Republicans claim the Justice Department's investigation of the IRS
targeting scandal is "compromised," after revealing that it's being led
by one of President Obama's political supporters. In a letter to Attorney General Eric Holder, the lawmakers said they've learned trial attorney Barbara Kay Bosserman
is leading the probe. They detailed federal campaign finance records
showing she's given more than $6,000 to Obama's two presidential
campaigns -- and urged Holder to remove her from the case.
- Afghanistan releasing 72 prisoners considered security threat by US. Afghan President Hamid Karzai said the country is going to release
all but 16 of 88 prisoners considered a security threat by the United
States. In a statement Thursday, Karzai says that a review of the prisoners'
cases by Afghan intelligence and judicial officials turned up no
evidence of wrongdoing for 45 of the detainees. Karzai says there was
insufficient evidence on another 27 and that they must be released.
MarketWatch.com:
CNBC:
Zero Hedge:
ValueWalk:
Business Insider:
LA Times:
- Bomber in Iraq Kills 22 Recruits Seeking to Fight Al Qaeda. A suicide bomber detonated explosives on Thursday among a group of
recruits who were joining the Iraqi Army to fight Al Qaeda in Anbar
Province, the police said. Twenty-two recruits were killed, and 31 were
wounded, officials said.
NY Times:
The Blaze:
Reuters:
- Alcoa(AA) reports big loss after impairment charge.
Alcoa Inc reported a massive quarterly loss on Thursday after recent
declines in aluminum prices led to a $1.7 billion non-cash impairment
charge on smelter acquisitions. Shares of the largest U.S. aluminum producer fell 4 percent in after-hours trade after the company posted a profit adjusted
for one-time items that fell short of analyst expectations and
it issued an outlook for stagnant growth in global aluminum
demand.
- U.S. unemployment benefits extension stalls in Senate. U.S. Senate Democrats on
Thursday offered a new plan to revive federal unemployment
benefits until mid-November and pay the $18 billion price tag
with new spending cuts, but hopes of a bipartisan deal dissolved
into bickering by day's end.
Telegraph:
China Securities Journal:
- China May Start Coal Resource
Tax on Price 'Soon'. China may announce rules on implementing coal
resource tax based on price "soon," citing a person familiar with the
matter.
Evening Recommendations
RBC:
- Cut (PAYX) to Underperform.
Macquarie:
- Cut (NTDOY) to Underperform.
Night Trading
- Asian equity indices are -.50% to +.25% on average.
- Asia Ex-Japan Investment Grade CDS Index 140.50 +2.0 basis points.
- Asia Pacific Sovereign CDS Index 108.50 +.5 basis point.
- NASDAQ 100 futures +.16%.
Morning Preview Links
Earnings of Note
Company/Estimate
Economic Releases
8:30 am EST
- The Change in Non-Farm Payrolls for December is estimated at 197K versus 203K in November.
- The Unemployment Rate for December is estimated at 7.0% versus 7.0% in November.
- Average Hourly Earnings for December are estimated to rise +.2% versus a +.2% gain in November.
10:00 am EST
- Wholesale Inventories are November are estimated to rise +.4% versus a +1.4% gain in October.
- Wholesale Sales for November are estimated to rise +.7% versus a +1.0% gain in October.
Upcoming Splits
Other Potential Market Movers
- The Fed's Bullard speaking, China New Loan data, UK Industrial Production, USDA's WASDE report and the IBD/TIPP Economic Optimism Index for January could also impact trading today.
BOTTOM LINE: Asian indices are mostly lower, weighed down by commodity and technology shares in the region. I expect US stocks to open modestly higher and to weaken into the afternoon, finishing mixed. The Portfolio is 50% net long heading into the day.
Broad Equity Market Tone:
- Advance/Decline Line: Lower
- Sector Performance: Most Sectors Declining
- Market Leading Stocks: Underperforming
Equity Investor Angst:
- Volatility(VIX) 12.99 +.93%
- Euro/Yen Carry Return Index 148.52 +.04%
- Emerging Markets Currency Volatility(VXY) 8.96 -1.97%
- S&P 500 Implied Correlation 49.82 -.20%
- ISE Sentiment Index 138.0 -8.61%
- Total Put/Call .73 +4.29%
Credit Investor Angst:
- North American Investment Grade CDS Index 64.96 -.11%
- European Financial Sector CDS Index 86.15 +2.69%
- Western Europe Sovereign Debt CDS Index 50.0 -3.85%
- Emerging Market CDS Index 280.90 -.38%
- 2-Year Swap Spread 11.75 +.75 basis point
- TED Spread 20.50 +.5 basis point
- 3-Month EUR/USD Cross-Currency Basis Swap -1.25 unch.
Economic Gauges:
- 3-Month T-Bill Yield .04% unch.
- Yield Curve 254.0 -3 basis points
- China Import Iron Ore Spot $131.0/Metric Tonne -.38%
- Citi US Economic Surprise Index 63.90 +.5 point
- Citi Emerging Markets Economic Surprise Index 4.70 +1.6 points
- 10-Year TIPS Spread 2.30 +2 basis points
Overseas Futures:
- Nikkei Futures: Indicating +71 open in Japan
- DAX Futures: Indicating +35 open in Germany
Portfolio:
- Higher: On gains in my biotech sector longs, index hedges and emerging markets shorts
- Market Exposure: 25% Net Long
Bloomberg:
- Emerging-Market Stocks Decline as Vale Tumbles on China. Emerging-market
stocks fell to a
four-month low as concern China’s economic growth will falter sank
commodity producers from Vale SA (VALE5) to Minmetals Development Co.
South Africa’s rand slid to the lowest level in five years. The MSCI Emerging Markets Index dropped 0.9 percent to 964.84 at 11:03 a.m. in New York. The Shanghai Composite Index (SHCOMP) declined to a five-month low as Great Wall Motor Co. (2333) led a slide in automakers and Minmetals retreated 6.3 percent. Brazil’s
Ibovespa (IBOV) drove losses among major stock indexes in the Americas
as Vale, the world’s biggest iron-ore producer, fell 2 percent. The
rand slumped to the lowest since October 2008 on speculation the Federal
Reserve will end debt purchases this year. All 10 groups in the measure
for developing-nation stocks
retreated, led by consumer and commodity companies. “China is slowing down; what they don’t want is a hard landing,” Quincy Krosby, a market strategist at Prudential Financial Inc. in Newark, New Jersey, said by phone. Her firm
oversees more than $1 trillion. “There’s also an adjustment
process as the Fed begins to taper. As the data begin to gain
more traction than initially expected, you’d have the Treasury
market making adjustments, and that has ramifications in the
emerging markets.”
- Copper Declines Most in Eight Weeks Amid China Growth Concerns. Copper fell the most in eight weeks
amid signs of a slowing economy in China and speculation that
the Federal Reserve will further curb stimulus in the U.S.,
fueling demand concerns in the two biggest users of the metal. China’s producer prices, a measure of cost of goods as they
leave the factory, extended the longest slide since the 1990s in
December, adding to evidence that the economy weakened last
month. Fed officials saw diminishing economic benefits from the
central bank’s asset purchases, according to minutes of last
month’s policy meeting released yesterday. “Metals are taking their cue from China-related
concerns,” Edward Meir, an analyst at INTL FCStone in New York,
wrote in a note. “The eagerly awaited Federal Reserve minutes
showed a central bank that is now intent on proceeding with its
tapering program.”
- Fitch China Analyst Chu, Who Warned on Debt, Leaving Agency. Charlene Chu, a Beijing-based analyst
at Fitch Ratings who said China could face a debt crisis after
lending reached double the size of its economy, is leaving the
company after almost eight years. Her warnings that China’s debt could spark a crisis
preceded Fitch’s April downgrade of the country’s long-term
local-currency debt rating, the first cut by one of the top
three rating companies in 14 years. Albert Edwards, global
strategist at Societe Generale SA, said in 2013 Chu was “a
heroine” and “deserves a medal of honor for her stark warnings
about the Chinese credit bubble.” “I have to commend them for giving me the freedom to
express what is a pretty negative view on China, despite the
complications it has brought to Fitch’s own business development
here,” said Chu.
- Draghi Strengthens Pledge to Keep Rates at Record Lows. Mario
Draghi strengthened the European Central Bank’s pledge to keep interest
rates low for as long as necessary and warned that it’s too soon to say
the euro region is out of danger. “The Governing Council strongly
emphasizes that it will maintain an accommodative stance of monetary
policy for as long as necessary,” Draghi told reporters in Frankfurt today after the ECB kept its key rate at a record low of 0.25 percent.
- EUR Money Markets May Push-Back Against Dovish Draghi. Euro
money-market rates likely to drift higher in coming weeks as LTRO
payback restarts, Bert Lourenco, head of EMEA rates research at HSBC
says in an interview, even as ECB President Draghi says would act if
unwarranted monetary tightening seen.
- Draghi Faces Mission Conflict as ECB Reviews Banks.
Mario Draghi’stwo biggest policy tasks for this year threaten to run
into conflict. The European Central Bank president convenes the first
rate-setting meeting of 2014 in Frankfurt today with a to-do list that
includes supporting
the recovery in the 18-nation currency bloc and carrying out a
balance-sheet review of its largest lenders. The risk is that banks pull
back even further on loans, derailing the already-fragile economic
revival, to avoid being ordered to raise more capital.
- Fresenius Bond Offering Seen Setting Record-Low Euro Junk Coupon.
Fresenius SE, a German health-care services provider, is marketing
high-yield bonds that may pay a record-low coupon for non-financial
debt, as the average cost of borrowing holds at the lowest ever.
- European Stocks Decline as Draghi Warns Danger Not Over. European stocks declined as President Mario Draghi reiterated the European Central Bank’s pledge to keep interest rates low as he warned that it’s too soon to say the euro region is out of danger. Arkema SA dropped 3.1
percent after cutting its full-year earnings forecast. Wm Morrison
Supermarkets Plc slid the most in more than five years after saying
annual profit will be at the lower end of analysts’ estimates. TGS Nopec
Geophysical Co. jumped 17 percent after raising its annual revenue
projection. AstraZeneca Plc rose 0.7 percent after a diabetes pill it
developed with Bristol-Myers Squibb Co. won U.S. approval. The Stoxx Europe 600 Index retreated 0.4 percent to 328.41 at the close of trading.
- WTI Crude Declines to Seven-Month Low on Ample Supply. “The
fundamentals don’t look good,” said Phil Flynn, senior market analyst
at the Price Futures Group in Chicago. “Crude production continues to
surge ahead and the refiners are processing this into fuel that is going
into storage. There’s also economic uncertainty before tomorrow’s
employment report.” WTI for February delivery slipped 56 cents, or
0.6 percent, to $91.77 a barrel at 12:24 p.m. on the New York Mercantile
Exchange. Futures touched $91.70, the lowest level since June 3.
The volume of all futures traded was 4.4 percent lower than the
100-day average. The contract has fallen 6.8 percent since the
start of the year.
- Corn Pile Biggest Since 1994 as Crop Overwhelms Use: Commodities. Stockpiles of corn in the U.S., the
world’s top grower, are rising at the fastest pace in 19 years
as a record crop overwhelms increased demand for the grain used
to make livestock feed and ethanol. Inventories on Dec. 1, the first tally since the harvest
was complete, probably totaled 10.764 billion bushels (273.4
million metric tons), 34 percent more than a year earlier,
according to the average of 24 analyst estimates in a Bloomberg
survey. The biggest gain for that date since 1994 signals ample
supplies may extend the slump in March futures by 10 percent to $3.75 a bushel, according to Newedge USA LLC’s Dan Cekander.
- Aussie Falls for 3rd Day Versus Dollar on Fed Taper Speculation.
The Aussie slid 0.3 percent to 88.72 U.S. cents at 5:18
p.m. in Sydney from yesterday, and fell 0.2 percent to
NZ$1.0751. On Dec. 18, it reached 88.21 U.S. cents, the weakest
since August 2010, and touched NZ$1.0733, a level unseen since
October 2008.
- Retailers Cut Forecasts as December Discounts Hurt Profits. Retailers
of all stripes -- from
home-goods merchant Pier One Imports Inc. (PIR) to discounter Family
Dollar Stores Inc. (FDO) and luxury lingerie seller L Brands Inc. -- are
providing hard evidence that the discount war that marked the holiday
season will take a toll on profit. L Brands, which owns the
Victoria’s Secret and Bath & Body Works brands, and Family
Dollar today cut profit forecasts after reporting disappointing December
sales as promotions that failed to lure shoppers hurt margins. Pier One
cut its fourth-quarter forecast after December sales trailed the
chain's expectations. The early results are showing that the discounts -- as
steep as 75 percent off at luxury department-store chain Neiman
Marcus Group LLC -- didn’t generate sufficient traffic or spur
enough purchases of full-priced merchandise to make up for the
lost revenue.
- Funds With $100 Billion May Be Too Big to Fail, FSB Says. Investment funds that manage more
than $100 billion in assets may be labeled too big to fail,
global regulators said, as they seek to expand financial
safeguards beyond banks and insurers. Hedge funds with trading activities exceeding a set value
of $400 billion to $600 billion would also be assessed by
national authorities to gauge whether they need extra rules
because their collapse could spark a crisis, the Financial Stability Board said in a statement yesterday.
Wall Street Journal:
- Beijing Moves to Bolster Claim in South China Sea. China is trying to bolster the legal basis
for its maritime-security forces operating in contested areas of the
South China Sea, threatening to complicate already-fraught relations
with southern neighbors. A new
regulation enacted by the southern island province of Hainan requires
non-Chinese fishing vessels wanting to operate in the South China Sea to
first obtain permission from China's central government. The new
regulation is the latest move by China to assert its claim to disputed
territories on its fringes.
Fox News:
- Christie apologizes over lane closures, fires top aide.
New Jersey Gov. Chris Christie publicly apologized Thursday for
controversial lane closures last year that were arranged by his
associates as an apparent act of political revenge, and fired a top aide
who was at the center of the scandal. "I come out here to apologize to
the people of New Jersey," he said. "I am embarrassed and humiliated."
The governor added: "I am stunned by the abject stupidity that was shown
here."
MarketWatch:
CNBC:
ZeroHedge:
- JPMorgan(JPM) To Exit Foodstamp, Other Prepaid Cards Business. Mess with us, we'll mess with you. That is the message one can derive
from JPMorgan's surprise announcement that it plans to "sell or wind
down its business of issuing prepaid cards for corporate payrolls and
government tax refunds and benefits."
ValueWalk:
Business Insider:
NY Times:
- Chinese Film Director Fined for Exceeding Child Limits. China’s most internationally known film director, Zhang Yimou, and his
wife were ordered by a government office on Thursday to pay a $1.24
million fine for violating family planning limits by having three
children.
Time:
- Janet Yellen: The Sixteen Trillion Dollar Woman. In her first and only interview as Fed chief, the
economist says why she thinks the housing market is back on track,
companies will invest, and more new jobs are on the way this year. She
now has the world's largest economy in her hands.
Real Clear Politics:
- Iran's Fingerprints in Fallujah. Four years ago, al-Qaeda appeared to have been destroyed in Iraq. Last
week, fighters from the group captured Fallujah, a city where hundreds
of Americans were killed or wounded in the last decade fighting the
jihadists. How did this stunning reversal of fortune happen?
Reuters:
- France's debt load in 'danger zone' - national audit office. France's national debt has reached a danger zone at an estimated 93.4 percent economic output last year,
the head of the public audit office said on Thursday. "The level that's been reached has put our country in a danger zone," the
president of the audit office Didier Migaud said in a speech. "Efforts
undertaken so far are not sufficient to get out." France's national debt stood at 90.2 percent of GDP at the end of 2012.
- Brazil sells new 10-year local bond at record-high yield. Brazil's Treasury on Thursday
paid the highest yield ever to launch a new 10-year benchmark
fixed-rate domestic bond, underscoring investor concerns about
the deterioration of the country's fiscal and economic
fundamentals.
Financial Times:
- Federal Reserve faces prospect of bond market showdown over rates.
Bond traders are bringing forward their expectations of when the
Federal Reserve will start to tighten policy, leading to a jump in
short-term US borrowing costs. Recent economic data have pointed to a gathering American
recovery, and could result in a showdown between policy makers and the
Treasury market.
Telegraph:
Xinhua:
- China to Crack Down on 'Illegal' Journalism, Publishing. Five
"special campaigns" to target "counterfeit" reporters, for-profit
journalism, children's books, teaching materials for primary, middle
school students, paper, magazine publishing, citing statement from State
General Administration of Press, Publication, Radio, Film & TV.
- China Bank-Card Consumer-Confidence Index Drops in December.
Bankcard Consumer Confidence Index drops 1.25 points y/y, .77 points m/m
to 85.43 points.
Style Underperformer:
Sector Underperformers:
- 1) Steel -2.40% 2) Coal -2.40% 3) Networking -1.73%
Stocks Falling on Unusual Volume:
- VRTU, BBBY, FOX, CTRP, FDO, AMAG, TAL, SIG, ORMP, BBL, YRCW, TBBK, VOXX, FDML, LB, ZLC, CMGE, PIR, ADTN, ESI, ENOC, CSL, UL, MWV, ZUMZ, BWLD, UNFI, BIG, SHLD, TCS, AEL, TFM, SCHN, ADTN, SKYW, OVTI and GLPI
Stocks With Unusual Put Option Activity:
- 1) IBB 2) UAL 3) SPLS 4) YRCW 5) HAL
Stocks With Most Negative News Mentions:
- 1) AA 2) LB 3) MU 4) FB 5) BIDU
Charts:
