Japanese markets opened for the first time in a week, falling
(INDEXNIKKEI:NI225) futures had been down more than 3% prior to
today's session, so the losses were theoretically not as bad as
they had looked before today. The
(SHA:000001) fell 1.8% due to declining services growth in China.
Many investors have questioned how lasting the economic recovery
has been in the country, which has caused stock prices to drop
significantly of late.
US equities remained in negative territory for much of the day. The
(INDEXSP:.INX) fell 0.25% led by declines in materials and consumer
discretionary stocks. Gold futures flash crashed at 10:13 a.m. EST
this morning, which triggered a "velocity logic" event, prompting
the CME to momentarily halt trading in the contracts. The prices
initially dropped 2.67% before quickly recovering, finishing the
session almost unchanged.
The national ISM index of non-manufacturing activity fell to 53.0
in December 2013 from 53.9 in the month prior. Economists had
estimated an increase to 54.7. The index's new orders, order
backlog, and inventories components -- which are typically leading
indicators -- were all disappointing. However, the employment
component showed strong growth, which may foretell a positive
nonfarm payrolls report on Friday.
) issued $2 billion in new corporate debt today and accelerated its
share-repurchase program by purchasing shares held directly by
banks. FedEx is one of the first US corporations to issue new debt
The Senate is scheduled to vote on Janet Yellen's nomination as Fed
chair at about 5:30 p.m. EST this afternoon. It is widely expected
for the vote to pass, despite Republican opposition.
Tomorrow's Financial Outlook
Tomorrow the only economic data release of note in the US will be
the November 2013 trade balance. Economists expect the US trade
deficit to narrow marginally to $40.0 billion from $40.6 billion in
the month prior. The report will play a significant role in
determining fourth-quarter GDP growth.
Globally, Germany will report its December 2013 employment change,
and the eurozone will release its preliminary estimate of December
2013 consumer price growth. Economists expect Germany, the
strongest of the European economies, to see the number of
unemployed persons drop by 1,000, and the rate to remain unchanged
Apollo Education Group
) are scheduled to report earnings tomorrow after the market close.