Welcome to Monday’s Morning Coffee Break – U.S. markets started the 4th quarter on uneven footing last week that somehow managed to pull off a positive week with the Dow Jones sitting at its best level since December 2007.
Market volume and trading action is likely to be weak with many business and the U.S. government closed and many traders taking a 3 day weekend for the Columbus Day holiday. Future markets are closed today.
Due to the holiday the economic calendar is completely empty during the U.S. session. The next release is not schedule until 5:00 p.m. ET today when traders will get a look at NZIER Business Confidence out of the Netherlands. Tomorrow’s calendar is basically the same for the U.S. session as market participants will not get there first U.S. data point until Wednesday 2:00 p.m. ET when the Fed’s latest Beige Book as well as the September producer price index as well as the weekly jobless claims report.
The Dow Jones (DIA, quote)fair value is up by -41.15 to 13498.00, S&P 500 (SPY, quote) fair value is up by -3.93 to 1451.40 and the NASDAQ (QQQ, quote) fair value is coming in at 2793.50 up by -11.99 (as of 8:47 am)
Morning Coffee Break Global Markets Watch
Asia
Overnight Asia equities dropped on concerns on the duration of monetary easing since the U.S. non-Farm Payroll reports and better than expected unemployment rate last week Friday along with concerns of Chinese economic growth as well.
As market participants started off the week the World Bank went ahead and cut its forecast for emerging East Asia. The World Bank the regions 2012 growth projections from 7.6% down to 7.2% and specifically cut China’s forecast from 8.1% down to 7.7% in 2013
The Euro Zone weighed on Asia markets as well as traders look to the Euro Group meeting consisting of finance ministers and the concerns and uncertainties of Spain. There is a growing concern on when Spain will formally request a bailout as now there are growing concerns that the bank in Cyprus will need a financial assistance as well.
Canada
Canada’s markets gave up the last week’s gain on Friday when both jobs reports in Canada and the U.S. where better than expected along with the energy space declines specifically crude oil.
Canada employment jumped to 52k jobs being added in September crushing analysts’ expectations of 10k jobs being added.
Euro Zone
Euro Zone market participants did a 180 and fled risky assets on worries about global growth has worsen as Euro Zone’s finance ministers ready themselves to discuss the debt crisis once again.
Traders and investors alike will be focused and looking for any clues out the Luxembourg meeting schedule for later today. Likely top agenda items are likely to be Spain bailout request as well as bailout program for Greece. Analysts’ are not looking for any significant announcements from this meeting but any release of information could be a glimpse of what is to come at the European Council’s meeting scheduled for October 18th and 19th in Brussels.
Morning Coffee Break Companies To Watch
Earnings
Quarterly earnings kick off with Alcoa (AA, quote) this Tuesday after the closing bell.
Company Watch
Apple (AAPL, quote) is our first company to watch as Foxconn is denying reports of a work stoppage in its China assembly plant. Foxconn is a supplier that makes the new iPhone 5.
Facebook (FB, quote) reports are surfacing that the company will reduce its $3 billion line of credit in half citing it will no longer need as much cash to pay taxes associated with the vesting of employee shares since such the poor performance Facebook’s stock since the IPO. A silver lining in ever disappointing IPO.
Dish Network (DISH, quote) and Gannett (GCI, quote) have agreed to extend their negotiations in hopes to resolve a fee dispute. The deadline was 2 a.m. this morning.
The FCC decides to let rules involving program access expire. This could move cable TV companies such as Time Warner Cable (TWC, quote), Cablevision (CVC, quote), Windstream Corp (WIN, quote) and Comcast (CMCSA, quote). The rule in question has required programs owned/created by cable companies make the programs available to satellite companies.
The Morning Coffee Break Bottom Line
Markets are pointing to a lower open as volume is likely to weak due to the U.S. holiday. The non-Farm Payroll and unemployment rate has markets here and abroad spooked on concerns monetary easy could dry up. Countries such as Canada and Australia could continue to see weakness as crude oil and energy in general remain under pressure.
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