Welcome to Tuesday’s Morning Coffee Break – U.S markets started off the 4th quarter with strong trading intraday gains, although the Dow Jones and S&P 500 indexes did close solidly in the green the markets did exhibit the most recent trend off lately of selling off into the close. U.S. indexes closed well off their intraday highs with the NASDAQ falling into negative. The averages ended the day well off their best levels, and the Nasdaq’s volatile day ended in negative territory.
Today traders will be watching the results of September’s U.S. automakers vehicle, Edmunds.com predicts that sales will be up 8.8% industry-wide from a year ago.
Morning Coffee Break Global Markets Watch
Asia
Australia
In overnight trading the central bank of Australia otherwise known as Royal Bank of Australia surprised markets with an interest rate cut of 25 basis points. RBA action sent the Aussie markets highest level in 5 months. The move is welcome relief to a stubbornly high Aussie dollar in the face of a slowing China. China is Australia’s largest trading partner. Aussie markets led Asian market higher with strong leadership in resources industry.
China
China’s markets remain close for holiday.
Euro Zone
Euro Zone equity erased its losses from beginning of the session and began to move higher in late morning trading today when Spanish equities turned and provided leadership after reports when that the Spanish government is ready to request a bailout.
Emerging Markets
Standard & Poor's rating agency reiterated its negative outlook for Argentina's - Global X FTSE Argentina 20 (ARGT, quote) - debt ratings. Standard & Poor's said on Monday its outlook continues remain negative, citing increasing restrictions for international trade.
Morning Coffee Break Companies To Watch
Earnings Watch
Mosaic (MOS, quote) among the few companies scheduled to report this morning.
Company Watch
Apple (AAPL, quote) Samsung Electronics added the iPhone 5 to an existing patent infringement lawsuit against Apple.
Core Laboratories (CLB, quote) cut current quarter outlook to $1.09 - $1.13 from $1.17 - $1.25. Citing a drop in North American oil and gas production. It now expects Q3 earnings of $1.09 to $1.13 per share, down from the prior $1.17 to $1.25.
PetSmart (PETM, quote) will replace Sunoco (SUN, quote) in the S&P 500 later this week.
Futures and Commodities Corner
Crude Oil
WTI Crude Oil traded basically flat during the European trading session today. November WTI crude oil traders down by $0.03 to $92.45 a barrel. Crude prices found support when better than expected U.S. manufacturing data.
November Natural gas contracts continue to tick up by $0.03 to $3.51 per million British thermal units.
This will be natural gas’s 5th straight trading session of gains on weather reports forecast below normal temperatures in the East Coast of the U.S
Be sure to check out the Daily Energy Report for a compressive look at the global energy markets by Tom Pawlicki.
Equity only readers can gain exposure to WTI Crude Oil through the United States Oil Fund (USO, quote) ETF that seeks to reflect the performance, less expenses, of the spot price of West Texas Intermediate (WTI) light, sweet crude oil. The USO will invest in futures contracts for WTI light, sweet crude oil, other types of crude oil, heating oil, gasoline, natural gas and other petroleum based-fuels that are traded on exchanges. It may also invest in other oil interests such as cash-settled options on oil futures contracts, forward contracts for oil, and OTC transactions that are based on the price of oil.
Gold
Gold price action ticked lower during the Euro Zone session today after hitting a 7 month high in the previous session.
In yesterday’s session gold hit a high of $1,794.40 not seen since late February on strong U.S. manufacturing data. Dovish remarks out of Chicago’s Federal Reserve Bank of Chicago, Charles Evans.
Equity only readers gain exposure to the gold through the SPDR Gold Shares Trust (GLD, quote) ETF that seeks to replicate the performance, net of expenses, of the price of gold bullion. The GLD trust holds gold, and is expected to issue baskets in exchange for deposits of gold, and to distribute gold in connection with redemption of baskets.
| Crude Oil | $92.61 | +0.13 | +0.14% |
| Gold | $1779.10 | -1.40 | +0.08% |
| Wheat | $872.00 | -12.25 | -1.39% |
| Corn | $752.25 | -4.50 | +0.59% |
| Live Cattle | $126.125 | UNCH | UNCH |
| Lean Hogs | $75.125 | UNCH | UNCH |
| Treasury Bond | 149.50 | -0.1562 | -0.1% |
| 10yr Note | 133.50 | -0.0781 | -0.06% |
| 2yr Note | 110.2656 | UNCH | UNCH |
| U.S. Dollar Index | 79.79 | -0.12 | -0.15% |
| As of 7:33 a.m. ET |
The Morning Coffee Break Bottom Line
U.S. futures are suggesting a positive open but watch out for the final hour selloff pattern to continue. Headlines from Spain’s soon to be requested bailout and U.S. Congress cage rattling over U.S. fiscal cliff will likely impact markets. Keep an eye on the Currency Shares Euro Trust (FXE, quote) a move lower puts pressure on the U.S. markets.
Global X FTSE Argentina 20 (ARGT, quote)
You must be logged in to post a comment.