(INDEXNIKKEI:NI225) fell 3.08% in last night's trading after being
closed yesterday. USD-denominated futures were down 2.17% in global
trading yesterday following losses in the US, so the decline was
only minor. Also in Japan, the government's November 2013 balance
of payments widened to the worst level on record at -592.8 billion
yen; this was due to rising energy costs.
December 2013 retail sales rose 0.2% from the prior month, slightly
better than the 0.1% economist estimate. However, the November
report was revised down to a 0.4% month-over-month gain from the
prior 0.7% gain. Sales growth ex-auto was a robust 0.7% for the
month. It is likely that strong Web-based sales during the month
outweighed what have been generally dismal retailer reports from
US equities erased yesterday's losses and then some. The tech-based
(INDEXNASDAQ:NDX) gained 1.84% in today's session, climbing 0.41%
above yesterday's open. A notable positive performer was
), which gained 2.43% after its acquisition of Nest Labs yesterday
for $3.2 billion. All 10 of the basic sectors in the
(INDEXSP:.INX) were positive, led by tech and materials stocks.
The Federal Reserve announced that it is looking to curb
deposit-taking banks' commodities businesses. Currently, in
accordance with US law, domestic banks are not allowed to own
non-financial businesses, but banks that started businesses before
1997 have been operating on a special exemption. The deal would
enact further restrictions on banks' warehousing of physical
commodities and trading activities in order to prevent market
Tomorrow's Financial Outlook
The US will release December 2013 producer prices data tomorrow
morning. Economists estimate that prices rose 1.1% from a year ago
after rising 0.7% in November. Also scheduled to be released is the
New York regional manufacturing survey from January. This will be
the first piece of leading economic data for the month of January.
Lastly, the Fed will release its Beige Book of business conditions
across its 12 districts.
Preliminary December 2013 Japanese machine tool orders are due to
be reported overnight. In Europe, Germany's 2013 GDP will be
released before the US market opens in addition to Swiss retail
sales data. Lastly, Canadian existing-home sales data will be
released at 9:00 a.m. EST.
The pace of earnings reports will increase tomorrow.
Bank of America
) are all scheduled to report.