European equities weakened significantly despite much stronger
investor sentiment on the current economic situation and future
expectations. The German ZEW survey of current conditions rose to
32.4 from last month's 29.4, and future expectations rose to 62.0
from 54.6. The expectations survey reading was the highest since
2004. The Italian
(INDEXBIT:FTSEMIB) was the worst performer, losing 1.63%, followed
by the French
The Senate announced that it would hold a vote among all members on
Thursday to confirm Janet Yellen as chair of the Federal Reserve.
News reports indicated that Republican Mitch McConnell would not
vote for her confirmation and Republican Rand Paul would attempt to
block the vote.
US equities continued their downward trend for the most part after
yesterday's oversold bounce. Telecom was the worst-performing
sector in the
(INDEXSP:.INX) today, led by declines in
). The material sector was the strongest-performing sector even
though precious metals and crude struggled.
) were the stocks with the largest gains in the sector.
US Treasuries rallied throughout the day. The 10-year yield
declined by four basis points to 2.84%. The Treasury auctioned $32
billion of 2-year notes at a high yield of 0.345% and received the
largest dollar amount of total bids this year.
Channel Advisor reported this morning that
) same-store sales had risen a "date shifted" 39% year-over-year
for the period between November 28 and December 15. Additionally,
) sales were up 20.9% year-over-year for the same period, according
to the research firm's data.
Tomorrow's Financial Outlook
Tomorrow afternoon the FOMC will release its monetary policy
decision at 2:00 p.m. EST. Chairman Ben Bernanke's press conference
will follow at 2:30 p.m. Currently, investors think there is an
even-money chance the Fed will choose to taper its asset purchases
at the meeting due to stronger economic growth in the fourth
quarter. The Fed will also release its updated Summary of Economic
Projections for 2013 through 2016.
The US will release September to November housing starts and
November building permits in the morning before the market opens.
The Reserve Bank of India will release its monetary policy decision
overnight. Economists are expecting a small increase in the central
bank's repurchase and reverse repo rate. Additionally, the IFO
Institute will release its survey results for German investors'
future expectations and the current situation. Lastly, the UK will
release the rolling 3-month ILO unemployment rate.
(FDX) will be the first major company to report its fourth-quarter
earnings before the market opens.
(LEN) is also scheduled to report in the pre-market.
(GIS) are scheduled to report after the market closes.