Stocks Defensive Before Earnings and Data With Bearish Jobs Data Still Worrisome


Stock futures are trading defensively this morning as the December jobs report, jitters before this week's retail sales and manufacturing data, as well as concerns surrounding fourth quarter earnings dampens demand for U.S. equities versus their foreign counterparts. Market players are uneasy with the lackluster forecast for December sales, and that industrial production will show that the manufacturing sector is staring to lose steam.

In addition, according to a report from Thomson Reuters Q4 earnings are expected to increase 7.3% from the same period last year, but the ratio of negative to positive guidance is at 9.8%, the largest on record. Already Lululemon ( LULU ) and Sodastream ( SODA ) have issued earnings warnings this morning, dragging both stocks deep into negative territory.

Fortunately, today's early pressure on the stock market is mitigated by falling energy prices and lower Treasury yields, the latter of which have fallen 20 basis points from their highs last week thanks to the expectation that the bearish jobs report has pushed back a rate hike by the Federal Reserve to the fourth quarter of 2015.

In Europe, equity prices are marginally higher, led by banking stocks after regulators eased a Basel leverage-ratio rule. Although EU-zone economic data was very light, Italy posted a much better than expected gain in industrial production, bumping up the DAX by nearly 0.30% overnight.

The only economic data for today is the December Treasury budget, predicted to increase from a deficit of $135.2 billion to a $44.0 billion surplus.

-Dow Jones Industrial down 0.10

-S&P 500 futures down 0.

-Nasdaq 100 futures down 0.15%



Hang Seng up 0.45%

Shanghai Composite down 0.19%

FTSE-100 up 0.19%

DAX-30 up 0.23%


(+/-) Large cap tech: mixed

(+) Chip stocks: higher

(-) Software stocks: lower

(-) Hardware stocks: lower

(-) Internet stocks: lower

(+) Drug stocks: higher

(+) Financial stocks: higher

(+/-) Retail stocks: mixed

(-) Industrial stocks: lower

(+) Airlines: higher

(+) Autos higher


TKMR, TKM.TO, MON (+29.04%) Tekmira signed an Option Agreement with Monsanto ( MON ), pursuant to which Monsanto may obtain a license to use Tekmira's proprietary delivery technology.

SPEX (+5.45%) Entered into a second settlement and license agreement under the CompuFill patents acquired in September 2013.

BEAM (+25.37) To be acquired by Japan's Suntory for $16 billion.


GALT (-10.13%) Patient enrollment in the first cohort of a Phase 1 trial of GR-MD-02 is now complete.

ICPT (-25.98%) The company said tests has shown that there was a build-up of "bad cholesterol" from its drug to treat nonalcoholic steatohepatitis, or NASH, to patients.

SODA (-16.42%) Lowered its fiscal year 2013 guidance

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities

Referenced Stocks: LULU , MON , SODA

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