January 30th, 2015
Daily Market Commentary
- Annualized GDP in the U.S. for the fourth quarter was reported at 2.6%, below estimates of 3.3%.
- GDP growth in Canada was reportedly down 0.2% in November in month-over-month terms, below estimates of being flat.
- The unemployment rate in the Eurozone dropped to 11.4%, slightly below estimates of 11.5%.
- The Consumer Price Index in the Eurozone was reportedly down 0.6%, below estimates of -0.5%.
- Oil headed for its longest-ever run of monthly declines in London as the highest U.S. crude production and stockpiles in more than 30 years signaled that a surplus in world markets will persist.
- Iron ore capped the biggest monthly loss since May as steel mills in China curtailed output before a national holiday and major producers added supply, signaling that the bear market that began last year has further to run.
- Copper was poised for a seventh weekly decline, the longest losing streak in more than six years, before this weekend’s release of manufacturing data from China, the biggest metals consumer.
- Rogers Communications posted a better-than-expected fourth-quarter profit, partially due to stronger results in its wireless operations, and raised its dividend by 5%.
- Wi-LAN raised its quarterly dividend and said fourth-quarter adjusted earnings fell to 10 cents a share from 14 cents on lower revenue.
- Ensign Energy Services said it has lowered its planned 2015 capital spending to $220 million, citing continued weak oil prices. It also said it plans to reduce compensation of board members by 20% and salaries of its executive officers by 10%.
- U.S. stock-index futures dropped, indicating the Standard & Poor’s 500 Index will fall as it heads for its biggest monthly decline in a year.
- Apple Inc., aiming to more than double its stores in China, is advertising openings for retail workers in five cities where it currently doesn’t have any shops.
- Costco Wholesale Corp., the largest U.S. warehouse-club chain, plans to return $2.2 billion to shareholders through the payment of a special dividend as it releases a swelling cash balance.
- Jay Z is expanding in music streaming to take on Spotify Ltd. and Apple Inc.’s Beats.
- Facebook said earnings in the December quarter jumped 34% as the social network continues to get more money from mobile ads.
- European stocks declined, paring the best start to a year since 1989, as banks led losses and Russia unexpectedly cut its key rate.
- Mario Draghi’s deflation challenge was underlined on Friday with prices plunging at a pace last seen in the depths of the recession in 2009.
- Russia’s central bank lowered its main interest rate as concern over a looming recession took precedence over stabilizing the ruble and taming runaway inflation. The ruble weakened beyond 70 against the dollar.
- China’s trusts, part of the shadow-banking industry, fueled a stock-market rally by boosting their investments in equities by a record 122 billion yuan ($19.5 billion) in the fourth quarter.
*All information is taken from Bloomberg, unless otherwise noted.