Stock futures jumped this morning after the European Central
Bank announced it will cut its key interest rate to fight
The ECB surprised investors today when it cut its benchmark
refinance rate to a record low of 0.25% from 0.5%. The move is
intended to fight deflation. The eurozone's consumer price
inflation has been consistently below the target of 2%. The Bank of
England opted to leave its policy rate unchanged at 0.5%.
The euro fell by more than 1% in dollar terms today to $1.3371.
Wall Street also rallied. After hitting a record high yesterday,
(INDEXDJX:.DJI) futures were up 0.53% at 15,766.00 while futures on
(INDEXSP:.INX) rose 0.42% to 1,773.00.
(INDEXNASDAQ:.IXIC) futures climbed 0.28% to 3,385.50.
US economic data also lifted stocks. Gross domestic product in the
third quarter rose to 2.8% annual growth, according to the
government's initial message. Economists expected 2% growth
following the second quarter's 2.5%. Initial claims for
unemployment insurance were just slightly higher than forecast last
week. The level of new claims fell by 9,000 to 336,000.
On the corporate front,
) will go public today on the
New York Stock Exchange
). Yesterday, the company and its underwriters priced the IPO
higher than expected at $26 per share, giving the Web service a
value of $18 billion. Only 70 million shares will be up for grabs
on the public market.
) shares fell 4.2% after its earnings announcement. The chipmaker
said that profit rose to $0.86 per share from $0.73 per share a
year ago, thanks to royalties from its CDMA technology and
supplying components for smartphones including the
) and the
(OTCMKTS:SSNLF) Galaxy S4. However, the company expects slower
growth for the 2014 fiscal year.
Whole Foods Market Inc.
) shares dropped 9.1% despite reporting that earnings were up 7.1%
in the quarter that ended in September. The supermarket chain had a
record profit of $121 million or $0.32 per share. Revenue rose 2.2%
to $2.98 billion and comparable store sales rose 5.5%. Its outlook
for the full fiscal year, however was cut to $1.65-$1.69 per share,
lower than analyst expectations.
After the closing bell today,
The Walt Disney Company
(PCLN) will both report earnings.