Welcome to today’s Morning Coffee Break – traders had a case of Deja vu yesterday as the U.S. markets traded similar to last week ahead of the European Central Bank (ECB) and U.S Federal Reserve meetings.

U.S. futures are indicating a positive opening today with the Dow Jones fair value of 30.36, S&P 500 fair value of 2.33 and the NASDAQ’s fair value currently at 5.37.  Market participants will be focusing on fresh data from the housing sector today with U.S. government’s August housing starts scheduled to be released at 8:30 a.m. ET.  Analysts’ are looking for an annual rate increase to 765,000 units or 2.5% increase.

Then at 10 a.m. ET the National Association of Realtors will release August existing home sales report.  Analysts’ are excepting an increase of 4.55 million units or 1.8% increase for the month of August.

The third key data release today will come from the Energy Department at 10:30 when it will release its weekly oil and gasoline inventories reports.  The inventory reports are scheduled to be released at 10:30 a.m. ET.

Morning Coffee Break Companies to Watch

American Airlines (AAMRQ, quote) said more than 11,000 employees have been informed that will lose their jobs as results of the company’s bankruptcy restructuring program.  Note: AAMRQ has been delisted and now trades on the pink sheets and is highly risky for non-professionals.

Microsoft (MSFT, quote) announced yesterday after the closing bell that its board approved to raise the company’s quarterly dividend by 15% to $0.23 per share.

Moring Coffee Break Earnings Watch

AutoZone (AZO, quote) reports Q4 earnings expected to be $8.42 per share on 2.8 billion in sales.

Cracker Barrel Old Country Store Inc. (CRBL, quote) is  expected to report Q4 earnings of $1.30 per share on 681.8 million on sales.

Morning Coffee Break Global Markets Watch

Asian Markets

Japan sent Asian stock exchanges broadly higher after the Bank of Japan joined the U.S. Federal Reserve in providing additional stimulus when it announced it will increase its asset purchasing program Currency Shares Japanese Yen Trust (FXY, quote).

Toyota Motor Corp (TM, quote) jumped 1.88% on Japan’s exchanges look for similar action in the U.S. markets with the Toyota’s ADR.

European Markets

European markets are mostly lower to flat in early trading as markets struggled for leadership.  European traders are grew more concern over global growth and the lack of growth in the euro zone after the Bank of Japan eased unexpectedly.

Emerging Markets

Brazil’s Shares MSCI Brazil Index Fund (EWZ, quote) markets today are what best can be described as roller coaster as market participants take profits from the stocks market’s longest connective climb higher in eight months. Helping the Brazilian markets was Moody’s comments Tuesday that Brazil’s move to reduce electricity tariffs is "credit positive for many Brazilian companies across industries".

China iShares FTSE China 25 Index Fund (FXI, quote) the emerging market power house still struggle to continue to remain in the green, even after the Bank of Japan’s move.

Futures and Commodities Corner

 

Crude Oil

In overnight trading crude oil snapped the downward trend as Asian traders picked up cheap crude oil contracts and as sentiment shifted to risk on after Japan announced it will increase its asset buying.  The rally felled apart once the European session came online and traders sentiment shifted once again as the focus of debt crisis and continuing slowing of the euro zone economic growth dampened the oil trade. The next catalyst for crude oil will come at 10:30 a.m. when the U.S. Department of Emerging releases inventory numbers.

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 has been trading at February trading levels since last week Friday and has been consolidating since hit the 6 month high. Gold closed yesterday’s session out roughly a half of percent higher when the Bank of Japan (BOJ) unexpectedly increased the country’s asset buying program.  Remember gold is view as hedge against inflation caused by central banks increasing liquidity in the markets and in turn weakens the country’s currency which causes inflations.  However, even with the unexpected move by the BOJ gold remain with the tight consolidation range.  The daily chart appears to be forming a flag pattern.

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	$94.86	-0.43	-0.45%
Gold	$1,774.00	+5.30	+0.79%
Wheat	$880.50	17.00	+1.97%
Corn	$750.00	+10.00	+1.35%
Live Cattle	$128.875	UNCH	UNCH
Lean Hogs	$74.20	UNCH	UNCH
Treasury Bond	145.6875	+0.0625	+0.04%
10yr Note	132.3594	+0.1562	+0.12%
2yr Note	110.2188	UNCH	UNCH
U.S. Dollar Index	79.45	+0.105	+0.13%
			As of 7:10 a.m. ET

The Morning Coffee Break Bottom Line

Look for U.S. markets to find support from the BOJ unexpected move to ease, however, market participants will be focused on U.S. data.  If the housing data disappoints look for markets to wobble and move lower. Look for TM to run today and keep an eye on MSFT after a the dividend announcement.