(INDEXNIKKEI:NI225) rallied overnight, catching up to the gains
seen in US markets on Friday and the weakness in the yen. The
Nikkei rallied 2.3% and other Asian emerging markets also performed
strongly. The Thai government was dissolved by the Prime Minister
following continued demonstrations within the country.
US equities drifted higher today, digesting Friday's large gains.
Notably, the small-cap
(INDEXRUSSELL:RUT) underperformed the large-cap
(INDEXSP:.INX) by 0.35%. Tech, led by strong gains from social
), was the top-performing sector. Utilities was the
worst-performing sector today.
Comments from lawmakers indicated that the Democratic and
Republican parties were getting closer to a budget deal for next
year. The proposed deal would reduce the planned $100 - $200
billion in automatic spending cuts to about $90 billion. However,
the cuts would not reduce fiscal deficits in 2014 and 2015.
) announced same-store sales for the month of November this
morning. Global sales rose 0.5% vs. estimates of a 0.6% increase.
Most disappointing was the 0.8% decline in the US market vs. +0.3%
estimates. McDonalds attributed the weakness to flat consumer
traffic and increasing competition.
Natural gas rose strongly today. Prices for January 2014 delivery
rose almost 3% in floor trading on forecasts for increasingly
colder weather across the Midwest and Northeast. Up to six inches
of snowfall could be seen tomorrow in New York according to weather
forecasting services AccuWeather and the National Weather Service,
with temperatures around 20 degrees Fahrenheit. The service is also
predicting snow as far south as Virginia and Maryland.
Tomorrow's Financial Outlook
The one notable economic report due out tomorrow will be the
government's September Job Openings and Labor Turnover Survey
(JOLTS). Economists look to this survey to get a true sense of the
strength in the labor market. Another report is the October
wholesale inventories, a key component in GDP. Economists are
expecting a 0.3% rise in inventories from the prior month.
A vote will be held tomorrow morning on the implementation of the
Volcker Rule. A ruling should be expected by 10:00 a.m. EST. Some
of the major regulatory agencies scheduled to vote include the SEC,
CFTC, FTC, and Federal Reserve.
The UK will release manufacturing and industrial production
tomorrow morning. Additionally, China will release its November
retail sales and industrial production. Lastly, ECB President Mario
Draghi will give a speech in Rome at 7:00 a.m. EST.
), and Smith & Wesson (SWHC) will report earnings tomorrow.