Evening Headlines
Bloomberg:
- Trump Slams Erdogan Over Syria Attack, Warns of Clash With U.S. President Donald Trump warned Turkey against expanding its military offensive against U.S.-backed Kurdish fighters in northern Syria, telling President Recep Tayyip Erdogan that such action could lead to direct conflict with U.S. forces, the White House said. Trump urged Turkey “to deescalate, limit its military actions, and avoid civilian casualties and increases to displaced persons and refugees,” the White House said Wednesday in a readout of Trump’s call with Erdogan. “He urged Turkey to exercise caution and to avoid any actions that might risk conflict between Turkish and American forces.”
- Asia Stocks Point Lower as Davos Talk Roils Dollar. Asian shares are set to open lower Thursday after Trump administration official’s rhetoric on trade and the dollar roiled financial markets, sending the U.S. currency to its lowest level in three years and whipsawing stocks that had been buoyed by strong earnings. The S&P 500 closed flat after swinging between gains and losses. The threat of tit-for-tat tariffs weighed on technology stocks and industrial shares also fell. Futures in Australia and Japan point to declines. The yen pushed through 109 per dollar and Treasuries dropped. Commodities surged, with West Texas Intermediate oil climbing above $65 a barrel for the first time in more than three years. The MSCI Asia Pacific Index increased 0.3 percent as of 6:18 a.m. Tokyo time. ASX 200 futures declined 0.3 percent, the biggest drop in more than a week. Nikkei 225 futures in Osaka fell 0.8 percent to the lowest in more than a week. Futures on the S&P 500 Index rose less than 0.05 percent.
- Oil Companies to Reopen Their Checkbooks as Brent Surpasses $70. After more than three years of belt-tightening, a resurgence in crude prices has fueled oil-company optimism, and a readiness to reopen the checkbook. More than two-thirds of 813 senior oil executives expect increased capital spending in 2018, double last year’s percentage, according to a survey by Norwegian consultants DNV GL. About a third say research and development budgets will rise, and the same number predict hiring will expand.
- Sam's Club Further Shakes Up Operations After Closing Stores. Sam’s Club is restructuring its product-purchasing team, marking the second big shake-up for the Wal-Mart Stores Inc. unit this month. A spokeswoman said the warehouse club retailer will consolidate what had been six buying roles into three: merchant, senior merchant and divisional merchandise manager. The reshuffle, effective Feb. 3, will not result in a loss of jobs.
Wall Street Journal:
MarketWatch.com- A Shortage of Trucks Is Forcing Companies to Cut Shipments or Pay Up. Loads far outnumber vehicles as freight volumes near records; ‘like trying to get a cab at LaGuardia’.
- In California, Where Cancer Warnings Abound, Coffee Is Next in Line. Judge is expected to rule whether 1986 state law, meant to warn of potential harms, applies to coffee.
Fox News:
CNBC:
- Airline stocks just took a big hit, but some analysts say the long-term picture is positive. (video)
Zero Hedge:
Business Insider:
Earnings of Note
Company/Estimate
NY Post:
Night Trading - Asian equity indices are -.50% to +.25% on average.
- Asia Ex-Japan Investment Grade CDS Index 63.5 +.75 basis point.
- Asia Pacific Sovereign CDS Index 10.5 unch.
- Bloomberg Emerging Markets Currency Index 76.44 +.09%.
- S&P 500 futures -.05%.
- NASDAQ 100 futures +.02%.
Earnings of Note
Company/Estimate
- (MMM)/2.03
- (ALK)/.83
- (AAL)/.92
- (BIIB)/5.45
- (CAT)/1.78
- (CELG)/1.99
- (CLF)/.18
- (FCAU)/.64
- (FCX)/.50
- (JBLU)/.34
- (LLL)/2.28
- (NOC)/2.73
- (NVR)/48.04
- (OSK)/.56
- (PX)/1.48
- (RTN)/2.04
- (SHW)/3.16
- (LUV)/.77
- (UNP)/1.54
- (ETFC)/.61
- (INTC)/.87
- (ISRG)/2.27
- (KLAC)/1.73
- (MXIM)/.65
- (MSTR)/1.21
- (SBUX)/.57
- (WDC)/3.82
8:30 am EST
- Initial Jobless Claims for last week are estimated to rise to 235K versus 220K the prior week.
- Continuing Claims are estimated to fall to 1925K versus 1952K prior.
- New Home Sales for December are estimated to fall to 675K versus 733K in November.
- The Leading Index for December is estimated to rise +.5% versus a +.4% gain in November.
- The Kansas City Fed Manufacturing Activity Index for January is estimated at 14.0 versus 14.0 in December.
- None of note
Other Potential Market Movers
- The German IFO index, Japan inflation data, $28B 7Y T-Note auction, weekly Bloomberg Consumer Confidence Index and the weekly EIA natural gas inventory report could also impact trading today.