February 19th, 2015

Daily Market Commentary

 

ECONOMIC NEWS

  • Initial jobless claims in the U.S. were reported at 283K, below estimates of 293K.
  • Continuing Jobless Claims in the U.S. were 2.425M, above estimates of 2.374M.
  • EIA Natural Gas storage changes were reported at -111B, a larger move to the downside than expected.
  • Consumer Confidence in the Eurozone was reported at -6.7, slightly above estimates of -7.55.

Commodities:

  • Oil declined to a one-week low in New York on estimates that U.S. crude inventories increased from a record level.
  • Gold futures rose the most this month after minutes from the Federal Reserve’s January meeting showed policy makers argued for keeping interest rates near record lows for longer. Silver advanced.

Canada:

  • Barrick Gold Corp. slashed jobs and hung the for sale sign on some of its Asia-Pacific assets, as the Canadian company vowed to reduce its debt by at least $3-billion (U.S.) this year. The miner also took a $2.8-billion impairment charge on its mines, most of which stemmed from its troubled Lumwana copper mine in Zambia. (Globe)
  • Quebec’s economy minister said the province stands ready to provide financial assistance to Montreal plane and train maker Bombardier Inc. if its balance sheet deteriorates. (Globe)
  • Western Forest Products said its Q4 profit fell to $0.03 a share from $0.13. Revenue was also lower, which the forest-products company attributed to lower log sales volumes and weaker log export pricing.

United States

  • U.S. stock-index futures were little changed as investors awaited earnings reports.
  • Duke Energy reported sharply lower profit in its fourth quarter as its international energy business was weighed by widespread drought in Brazil, while the energy company also gave a muted outlook for 2015.
  • Actavis raised its profit guidance for 2015, while acquisitions again helped drive revenue growth, as the company awaits the close of its deal to buy Botox maker Allergan.
  • Campbell Soup plans a restructuring effort aimed at saving at least $200 million, or 2-3% of annual sales, over three years. The money will go toward boosting margins and spending on growth efforts.

International:

  • European stocks were little changed near a seven-year high, as an advance in Greek equities offset a decline in energy shares.
  • BAE Systems Plc said full-year profit fell 12 percent as military spending in western states stuttered, sending sales lower, and Europe’s largest defence company reorganized its shrinking U.S. armoured vehicle and naval units.
  • Nestle SA forecast 2015 sales growth near the low end of its long-term target after reporting the slowest annual sales growth in five years, hit by stagnant revenue in China.
  • The European Central Bank’s profits fell by almost a third in 2014 as interest rates declined, bond holdings matured and creating a new regulatory unit boosted costs.
  • Japan stocks rose, pushing the Nikkei 225 Stock Average to the highest close since May 2000, as the biggest banks jumped and Trend Micro Inc. and Sony Corp. gained.
  • Japan’s auto workers are asking their employers for a bigger share of their projected 4 trillion yen ($33.6 billion) in annual profit in the form of a raise for the next fiscal year.
  • Samsung Electronics Co. is acquiring LoopPay Inc. to gain a bigger toehold in mobile payments, a market that’s already luring its main rival Apple Inc.

*All information is taken from Bloomberg, unless otherwise noted.