4:25 pm: [BRIEFING.COM] It appears that investors ran out of ink after rewriting the record book during Wednesday's session as the major averages closed the week relatively unchanged from those record levels. The S&P 500 (-0.1%) finished Friday's session just below its flat line, while the Nasdaq (+0.1%) performed just slightly better.
To illustrate the minimal change numerically, the five heaviest weighted sectors--technology, financials, health care, consumer discretionary, and industrials-- changed only marginally since Wednesday's close, seeing gains/losses of no more than 0.1%. Sectors like consumer staples and energy saw more substantial movement due to a number of factors, but generally, the stock market appears to be in wait-and-see mode, eyeing President Trump and his ability to implement the pro-growth agenda he ran his presidential campaign on.
However, despite minimal movement in the key indices, earnings season remained alive and well on Friday with technology names headlining the action. The results were mixed with Alphabet (GOOGL 845.03, -11.95) ticking down 1.4% in reaction to below-consensus earnings, while Intel (INTC 37.98, +0.42) and Microsoft (MSFT 65.78, +1.51) climbed 1.1% and 2.4%, respectively, after beating top and bottom line estimates.
The positives outweighed the negatives in the technology sector (+0.3%), which left the sector as one of the few spaces to close the day higher. Health care and telecom services were fortunate enough to do the same, adding 0.8% and 0.7%, respectively.
On the flip side, real estate (-0.9%) and energy (-0.9%) finished at the bottom of the day's leaderboard, with the latter
a battle on multiple fronts. The first attack against the energy space's came from Chevron (CVX 113.79, -2.76) after the company disappointed investors with its quarterly earnings report. Crude oil also weighed, slipping 1.1% to $53.18/bbl, as increased U.S. production overshadowed supply cut efforts by OPEC and non-OPEC members.
Consumer staples (-0.6%) also finished near the bottom of the leaderboard following a negative reaction to Colgate-Palmolive's (CL 64.68, -3.56) quarterly report. The company slipped 5.2% after missing revenue estimates and forecasting a low-single digit net sales increase for 2017.
For the week, cyclical sectors had the upper hand as materials (+3.4%) led five of the six spaces higher. Conversely, each countercyclical sector closed the week lower, with telecom services (-1.7%) falling the farthest.
U.S. Treasuries also closed Friday's session with a week-to-date loss. However, the Treasury market did end the week on an upbeat note, closing in positive territory around its highest levels of the day. The 10-yr yield settled two basis points lower at 2.48%.
Friday's economic data included advance fourth quarter GDP, December Durable Orders, and the final reading of the University of Michigan Sentiment Index for January:
Advance fourth quarter GDP pointed to an expansion of 1.9%, while the Briefing.com consensus expected a reading of 2.2%. The fourth quarter GDP Deflator came in at 2.1%, which is what the Briefing.com consensus expected.
The key takeaway from this report is that fourth quarter activity revealed the strong third quarter growth was as an aberration, yet that point aside, the salient takeaway for many is that this is a backward-looking report and the markets have their sights set on a brighter economic outlook for 2017, which is expected to feature deregulation, tax reform, and infrastructure spending among other items.
December durable goods orders declined 0.4%, while the Briefing.com consensus expected a 3.0% increase. The prior month's reading was revised to -4.8% (from -4.6%). Excluding transportation, durable orders rose 0.5% (Briefing.com consensus +0.5%) to follow the prior month's revised gain of 1.0% (from 0.5%).
The key takeaway from this report is that business investment remained on a positive trajectory.
The final reading of the University of Michigan Consumer Sentiment Index for January rose to 98.5 (Briefing.com consensus 98.0) from 98.1 in the preliminary reading.
The key takeaway from the report is that consumer confidence is rising on the back of an improved outlook for economic growth, job growth, and personal finances in the year ahead
Monday's economic data will include December Personal Income at 8:30 am ET and December Pending Home Sales at 10:00 am ET.
Nasdaq Composite 5.2% YTD
S&P 500 2.5% YTD
Dow Jones Industrial Average +1.7% YTD
Russell 2000 +1.0% YTD
Week in Review: New Records Set
The stock market enjoyed a solid week, which saw the threemajor averages climb to fresh record highs. The S&P 500 gained 1.0% for theweek while the Dow Jones Industrial Average (+1.3%) and Nasdaq Composite(+1.9%) outperformed. The Dow received added attention in the media during thesecond half of the week after making its first appearance above the 20000 levelon Wednesday.
The past week was highlighted by a healthy dose of quarterlyreports from influential market components like Alphabet (GOOGL), Boeing (BA), Microsoft(MSFT), McDonald's (MCD), Intel (INTC), Texas Instruments (TXN), and Qualcomm(QCOM) among others. In general, results from the tech sector were strong whileearnings from other areas of the market were more mixed.
At the end of the week, roughly 34% of S&P 500components had reported their results, showing a blended earnings growth rateof 4.0% versus market expectations for growth of 5.2%, according to FactSet.
The economic calendar also featured a fair share of reports,but the market did not appear particularly concerned with disappointingDecember Existing Home Sales (5.49 million; Briefing.com consensus 5.55million), December New Home Sales (536,000; Briefing.com consensus 589,000), advancefourth quarter GDP (+1.9%; Briefing.com consensus 2.2%), nor December DurableOrders (-0.4%; Briefing.com consensus 3.0%).
Rate hike expectations held firm with the fed funds futures market pointing to a 71.9% implied likelihoodof a rate hike in June.
3:30 pm: [BRIEFING.COM]
Crude oil retreated from yesterday's 3-week high, closed near the midpoint of session lows following data showing oil rigs have been added for the second week in a row
Mar crude oil futures fell $0.57 (-1.1%) to $53.18/barrel
Rig count data highlights:
The Baker Hughes total U.S. rig count increased by 18 to 712 following last week's increase of 35.
The number of active U.S. rigs drilling for oil rose by 15 to 566 rigs this week.
Last week, the U.S. oil rig count increased by 29 to 551 rigs.
In the week prior, the rig count declined, but that followed 10 consecutive weekly prior increases.
The oil rig count is at its highest level in ~14 months.
It is worth noting that this pick-up in US activity could potentially cap oil price gains in the future.
Natural gas snapped its 4-session uptrend on updated warmer weather forecasts across much of the US in the coming weeks
Mar natural gas closed $0.05 lower (-1.5%) at $3.35/MMBtu
In precious metals, gold ends pit trading at a 2-week low for the second consecutive session; silver ends notably higher despite a rally in the dollar index
Feb gold ended today's session down $1.70 (-0.1%) to $1188.20/oz
Mar silver closed today's session $0.28 higher (+1.7%) at $17.13/oz
The dollar index was +0.2% around the 100.56 level
Commodities, as measured by the Bloomberg Commodity Index, were -0.3% around the 87.98 level
3:00 pm:
[BRIEFING.COM] With one hour of action remaining, investors are in position to chalk up a win for the first week of Donald Trump's presidency as the major averages remain flat for the day but up for the week. The Nasdaq sports a week-to-date gain of 1.8%, while the Dow and the S&P 500 show weekly increases of 1.3% and 1.0%, respectively.
This week's advance has been led by materials, technology, and financials, all of which show weekly gains between 2.1% and 3.4%. Other cyclical sectors have followed suit, with only the energy space (-0.6%) residing in the red for the week.
On the defensive side, telecom services sit at the bottom of the week's leaderboard with a loss of 2.0%. However, health care, which is the heaviest non-cyclical sector by weight, sits closer to its flat line, eyeing positive territory as the closing bell approaches.
2:30 pm:
[BRIEFING.COM] The S&P 500 (-0.2%) has ticked down slightly in recent action, but still remains relatively close to its flat line. The Nasdaq (unch) has a slight edge over the benchmark index, currently hold a very slim gain.
After pushing the industrial sector to the top of yesterday's leaderboard, airlines have turned sour today despite American Airlines (AAL 47.06, -2.52) reporting much better than expected earnings and in-line revenue earlier this morning. The stock is lower by 5.2% while Delta Air Lines (DAL 50.02, -0.88), Southwest Airlines (LUV 52.80, -1.12), United Continental (UAL 74.85, -0.53), Alaska Air (ALK 95.40, -0.50), and JetBlue (JBLU 19.65, -1.45) are all down between 0.5% and 6.9%.
U.S. Treasuries have hit fresh session highs in recent action, with the 10-yr yield down two basis points at 2.48%. In the same breath, gold has continued climbing despite closing its trading day earlier this afternoon. The precious metal is currently at its flat line, trading at $1,189.75/ozt, after spending Friday's session in the red.
2:00 pm:
[BRIEFING.COM] The major averages remain unchanged from their recent levels with the S&P 500 showing a modest 0.1% loss.
The consumer staples sector has underperformed the benchmark index today, losing 0.7%, following a negative reaction to Colgate-Palmolive's (CL 64.28, -3.95) quarterly report. The stock has slipped 5.8% after the company missed revenue estimates and forecast a low-single digit net sales increase for 2017. Today's downtick has put the consumer staples sector into negative territory for the week, currently showing a 0.5% week-to-date loss.
The same is true for all non-cyclical sectors as health care, utilities, telecom services, and real estate are down for the week, posting week-to-date losses between 0.2% and 2.0%. On the cyclical side, only energy is lower than it closed last week, down 0.7%.
1:35 pm:
[BRIEFING.COM] The major U.S. indices have seen some light afternoon selling pressure in afternoon trading as stocks show small losses at this time.
A look inside the Dow Jones Industrial Average shows that Chevron (CVX 113.55, -3.00), Wal-Mart (WMT 65.52, -1.21), & Goldman Sachs (GS 236.55, -3.03) are underperforming. Chevron is leading the Dow lower after delivering light fourth quarter results that missed analyst estimates on both the top and bottom line. Also negatively impacting shares, WTI crude oil futures are down 2% today, weighing on the entire energy complex.
Conversely, Microsoft (MSFT 65.72, +1.45) is the best-performing Dow component after reporting strong fiscal second quarter results. Following the results, Microsoft's market cap eclipsed $500 bln for the first time since the dot-com bubble in 2000.
At current levels, the DJIA is poised to end the week higher by 1.3%.
1:00 pm:
[BRIEFING.COM] Thursday's wait-and-see attitude has translated into range-bound action thus far in Friday's session, with the major averages having yet to deviate from their flat lines. The S&P 500 currently shows a slim loss of 0.1%.
There is a semblance of caution in the air--cyclical sectors are underperforming and Treasuries are up--but the slight apprehension has had a minimal impact on the market. Conversely, some earnings reports have shaken things up today, with a batch of tech names reporting between yesterday's close and today's open, including Alphabet (GOOGL 850.23, -6.88), Microsoft (MSFT 65.72, +1.45), and Intel (INTC 38.09, +0.52).
The tech sector (+0.4%) has been able to overcome Alphabet's below-consensus earnings, thanks in part to Microsoft's and Intel's better than expected top and bottom lines. Additionally, Intel's 1.3% advance has underpinned its fellow chipmakers thus far, pushing the PHLX Semiconductor Index higher by 0.9%.
Conversely, the energy sector (-1.2%) started the trading session in the hole after Chevron (CVX 113.83, -2.73) reported worse than expected top and bottom lines earlier this morning. Crude oil has also worked against the sector, losing 1.7%, as an uptick in U.S. production has outweighed the optimism surrounding OPEC/non-OPEC production cuts. The energy component currently trades at $52.82/bbl.
All-in-all most sectors trade in the red, with health care (+0.8%) and telecom services (+0.3%) the only sectors accompanying technology in the green. In addition to energy, financials (-0.5%), consumer discretionary (-0.5%), consumer staples (-0.7%), and real estate (-1.0%) have contributed to today's modest retreat.
U.S. Treasuries sit near their overnight highs, with the 10-yr yield down one basis point at 2.50%. However, Treasuries remain in negative territory for the week, having yet to recoup the big losses suffered on Tuesday and Wednesday.
Today's economic data included advance fourth quarter GDP, December Durable Orders, and the final reading of the University of Michigan Sentiment Index for January:
Advance fourth quarter GDP pointed to an expansion of 1.9%, while the Briefing.com consensus expected a reading of 2.2%. The fourth quarter GDP Deflator came in at 2.1%, which is what the Briefing.com consensus expected.
The key takeaway from this report is that fourth quarter activity revealed the strong third quarter growth was as an aberration, yet that point aside, the salient takeaway for many is that this is a backward-looking report and the markets have their sights set on a brighter economic outlook for 2017, which is expected to feature deregulation, tax reform, and infrastructure spending among other items.
December durable goods orders declined 0.4%, while the Briefing.com consensus expected a 3.0% increase. The prior month's reading was revised to -4.8% (from -4.6%). Excluding transportation, durable orders rose 0.5% (Briefing.com consensus +0.5%) to follow the prior month's revised gain of 1.0% (from 0.5%).
The key takeaway from this report is that business investment remained on a positive trajectory.
The final reading of the University of Michigan Consumer Sentiment Index for January rose to 98.5 (Briefing.com consensus 98.0) from 98.1 in the preliminary reading.
The key takeaway from the report is that consumer confidence is rising on the back of an improved outlook for economic growth, job growth, and personal finances in the year ahead.
12:25 pm:
[BRIEFING.COM] The S&P 500 remains unchanged from its recent level early this afternoon, while the Russell 2000 sits lower by 0.6%.
Small-cap performance is generally a good indicator of domestic economic expectations as most companies in the small-cap Russell 2000 index have little to no international presence, relying almost entirely on U.S. consumers. However, despite a poor showing from small-caps today, the Russell 2000 is currently up comfortably for the week, showing a week-to-date gain of 1.2%. Comparatively, the benchmark index is currently posting a week-to-date gain of 1.0%.
Mr. Trump is currently meeting with British Prime Minister Theresa May in the White House, marking his first meeting as President with a foreign leader. The two heads are expected to discuss trade policy and the current state of NATO. Investors will be tuned in to the post-meeting news conference, looking for any insight into the new President's foreign policy.
12:00 pm:
[BRIEFING.COM] The stock market finishes the morning where it began, trending sideways into the afternoon. The S&P 500 sits just below its flat line with a slim 0.1% loss.
It appears that the sectors have nestled into their comfort zones as the day's leaderboard hasn't changed much as of late. Spaces are generally lower with pockets of strength in technology (+0.4%), health care (+0.7%), and telecom services (+0.4%).
The U.S. Dollar Index (100.58, +0.06) has ticked up in recent action, higher by 0.1%, after challenging its 200-day moving average earlier this morning. The greenback has overcome a 0.1% loss relative to the euro (1.0694) with a 0.5% gain against the Japanese yen (115.12).
Overnight, the Bank of Japan announced that purchases of Japanese Government Bonds with maturities between five and ten years will be increased to JPY450 billion from JPY410 billion. The change was prompted by an uptick in Japanese interest rates.
11:30 am:
[BRIEFING.COM] Equity indices remain near their recent levels with the S&P 500 down 0.1%.
The energy sector (-0.7%) has had a poor showing thus far, starting today's session immediately lower after Chevron (CVX 113.66, -2.87) reported worse than expected top and bottom lines earlier this morning. Crude oil is also working against the energy space, trading down at $53.22/bbl as reports indicate a hike in U.S. production is leaving investors less optimistic about the OPEC/non-OPEC production cut efforts. Crude oil is down 1.0%, while Chevron is lower by 2.3%.
Energy's cyclical peers also post moderate losses with financials and consumer discretionary losing 0.6% and 0.5%, respectively. Yet, for the week, energy is the only cyclical sector in the red, showing a week-to-date loss of 0.3%.
10:55 am:
[BRIEFING.COM] The major averages hover just below their flat lines in what has been range-bound action thus far.
Health care (+0.6%) has bounced back from yesterday's disappointing showing to lead all sectors this morning. Bristol-Myers Squibb (BMY 48.45, +1.67), which lost 5.5% yesterday after a downbeat earnings report, has added 2.5%. In addition, biotech names have also outperformed, evidenced by the 0.5% increase in the iShares Nasdaq Biotechnology ETF (IBB 273.11, +1.41).
Technology (+0.4%) has also solidly outperformed the benchmark index after positive reactions to earnings reports from Microsoft (MSFT 65.65, +1.38) and Intel (INTC 38.25, +0.69) have overshadowed a downbeat response to Alphabet's (GOOGL 853.72, -3.03) lower than expected earnings per share.
The lightly-weighted telecom services (+0.2%) and utilities (+0.1%) sectors round out today's outperformers.
10:30 am: [BRIEFING.COM]
Crude oil retreated from yesterday's 3-week high ahead of today's rig count data scheduled for 1 pm ET
Mar 2017 crude oil futures were down about $0.65 (-1.2%) around the $53.12/barrel
The U.S. oil rig count increased by 29 to 551 rigs last week.
In the week prior, the rig count declined, but that followed 10 consecutive weekly prior increases.
The oil rig count is at its highest level in 14 months.
It is worth noting that this pick-up in US activity could potentially cap oil price gains in the future.
Natural gas snapped a 4-session streak on updated warmer-weather forecasts over the next few weeks
Mar 2017 natural gas futures were down about $0.08 (-2.3%) around the $3.32/MMBtu level
In precious metals, gold was on track to close pit trading lower for the 4th consecutive session; on track to close the week lower for first time in 2017
Feb 2017 gold futures were down about $3.70 (-0.3%) around the $1186.10/oz level
Stronger currency & treasury yields have reduced demand for gold
Mar 2017 silver futures were nearly flat around the $16.82/oz level
The dollar index was +0.1% around the 100.48 level
Commodities, as measured by the Bloomberg Commodity Index, were -0.6% around the 87.72 level
10:00 am:
[BRIEFING.COM] Equity indices have ticked down in recent action after opening the trading day flat. The S&P 500 currently posts a modest loss of 0.1% as six of its eleven sectors reside in negative territory.
Just released, the final reading of the University of Michigan Consumer Sentiment Index for January rose to 98.5 (Briefing.com consensus 98.0) from 98.1 in the preliminary reading.
9:40 am:
[BRIEFING.COM] The S&P 500 opened Friday's session flat with its sectors split pretty evenly between green and red. The Nasdaq has an early edge on the benchmark index, up 0.1%.
Sector standings indicate a mild risk-off tone as most cyclical sectors post losses while defensive spaces generally sit higher. The telecom services sector (+1.0%) has emerged as the early leader, with health care (+0.3%) and technology (+0.3%) also outperforming the broader market.
Treasuries are up modestly, with the benchmark 10-yr yield down one basis point at 2.50%.
9:15 am: [BRIEFING.COM] S&P futures vs fair value: +2.00. Nasdaq futures vs fair value: +5.60.
Investors have not been particularly active on Friday morning, as the S&P 500 futures trade two points (+0.1%) above fair value.
A batch of high-profile technology names reported between Thursday's close and Friday's open, including Alphabet (GOOGL 855.00, -1.98), Microsoft (MSFT 65.10, +0.81), and Intel (INTC 37.89, +0.33). Microsoft and Intel are both up in pre-market trade after beating on their top and bottom lines, adding 1.4% and 0.9%, respectively, while Alphabet has slipped 0.2% after the company missed earnings expectations.
Starbucks (SBUX 56.25, -2.21) also reported quarterly results, dropping 3.8% after the coffee retailer reported disappointing revenues. Chevron (CVX 113.49, -3.13) is also down in pre-market trade, losing 2.7%, after the company missed top and bottom line estimates.
U.S. Treasuries have hit their overnight highs in recent action, with the 10-yr yield two basis points lower at 2.49%. The recent uptick came in the wake of the latest economic reports, which came in worse than expected.
Advance fourth quarter GDP pointed to an expansion of 1.9%, while the Briefing.com consensus expected a reading of 2.2%. The fourth quarter GDP Deflator came in at 2.1%, which is what the Briefing.com consensus expected.
December durable goods orders declined 0.4%, while the Briefing.com consensus expected a 3.0% increase. The prior month's reading was revised to -4.8% (from -4.6%). Excluding transportation, durable orders rose 0.5% (Briefing.com consensus +0.5%) to follow the prior month's revised gain of 1.0% (from 0.5%).
Today's last economic report, the final reading of the Michigan Sentiment Index for January (Briefing.com consensus 98.0), will cross the wires at 10:00 am ET.
8:53 am: [BRIEFING.COM] S&P futures vs fair value: +1.50. Nasdaq futures vs fair value: +1.60.
The S&P 500 futures trade two points (0.1%) above fair value.
Equity indices in the Asia-Pacific region ended the week on a mostly higher note, but participation was reduced due to holiday closures in China, Singapore, and South Korea. The Japanese yen (115.07) is lower by 0.5% against the dollar after slipping in reaction to the Bank of Japan's announcement, indicating purchases of Japanese Government Bonds with maturities between five and ten years will be increased to JPY450 billion from JPY410 billion.
In economic data:
Japan's December National CPI +0.3% year-over-year (expected 0.2%; last 0.5%) and National Core CPI -0.2% year-over-year (consensus -0.3%; last -0.4%). January Tokyo CPI +0.1% year-over-year (expected 0.0%; last 0.0%) and Tokyo Core CPI -0.3% year-over-year (consensus -0.4%; last -0.6%)
Australia's Q4 Import Price Index +0.2% quarter-over-quarter (expected -0.5%; last -1.0%) and Q4 Export Price Index +12.4% quarter-over-quarter (consensus 11.0%; previous 3.5%)
---Equity Markets---
Japan's Nikkei added 0.3% to end the week higher by 1.7%. Bridgestone, Casio, Trend Micro, Hitachi Construction, Mitsubishi Motors, Fast Retailing, and Hino Motors gained between 1.0% and 2.9%. On the downside, Dainippon Screen Manufacturing, Konami, Komatsu, and Nissan Motor lost between 0.5% and 1.9%.
Hong Kong's Hang Seng shed 0.1%, but gained 2.1% for the week. Energy-related names like China Petrol & Chemical and PetroChina lost near 1.0% apiece while financials were mixed. Bank of China, China Construction Bank, and Ping An Insurance lost between 0.2% and 0.6% while HSBC and Hang Seng Bank added 0.1% and 0.9%, respectively.
China's Shanghai Composite was closed for Lunar New Year. The index gained 1.2% for the week.
India's Sensex climbed 0.6%, extending its weekly gain to 2.4%. Bank shares had a solid showing with ICICI Bank, SBI, AXIS Bank, and HDFC Bank rising between 0.5% and 4.7%. Tata Motors and Hero MotoCorp both lost near 0.7% while ITC was the weakest performer, falling 2.8%.
Major European indices trade mixed, with the UK's FTSE (+0.1%) showing relative strength. The euro is higher by 0.1% against the dollar at 1.0688 while the pound has slid 0.4% to 1.2551. French Finance Minister Michel Sapin cautioned that time to reach an agreement on the next installment of the Greek bailout is running out. Greek officials have reportedly been asked to implement more austerity measures past 2018, but there has been pushback from the Greek side. On a separate note, British Prime Minister Theresa May is scheduled to meet with US President Donald Trump to discuss trade policy and the current state of NATO.
In economic data:
Eurozone December M3 Money Supply +5.0% year-over-year (consensus 4.9%; last 4.8%)
Germany's December Import Price Index +1.9% month-over-month (expected 1.3%; last 0.7%); +3.5% year-over-year (consensus 2.7%; previous 0.3%)
France's January Consumer Confidence ticked up to 100 from 99, as expected
Italy's January Consumer Confidence 108.8 (expected 110.6; last 110.9) and January Business Confidence 104.8 (consensus 103.5; last 103.7). December Wage Inflation 0.0% month-over-month (last 0.1%); +0.4% year-over-year (last 0.4%)
Spain's December Retail Sales +2.9% year-over-year (consensus 3.3%; previous 3.2%)
---Equity Markets---
UK's FTSE is higher by 0.1% despite select financials residing among the laggards. Prudential, Barclays, Lloyds Banking, RBS, Standard Chartered, and Standard Life are down between 0.3% and 0.8%. Energy names also trade in negative territory with BP down 0.5% and Royal Dutch Shell lower by 0.1%.
Germany's DAX has slipped 0.2% amid weakness in heavyweight components like Deutsche Bank, Daimler, BMW, and Continental. The four names are down between 0.5% and 1.1%. Air carrier Lufthansa leads with a gain of 2.2%.
France's CAC has surrendered 0.5%. Nokia is down 2.3% while consumer names like Carrefour, Kering, Danone, and Louis Vuitton show losses between 0.4% and 1.8%. Financials trade mostly lower with BNP Paribas and Credit Agricole down 0.3% and 0.9%, respectively.
8:34 am: [BRIEFING.COM] S&P futures vs fair value: +3.00. Nasdaq futures vs fair value: +3.00.
The S&P 500 futures trade three points above fair value.
Just in, advance fourth quarter GDP pointed to an expansion of 1.9%, while the Briefing.com consensus expected a reading of 2.2%. The fourth quarter GDP Deflator came in at 2.1%, which is what the Briefing.com consensus expected.
December durable goods orders declined 0.4%, while the Briefing.com consensus expected a 3.0% increase. The prior month's reading was revised to -4.8% (from -4.6%). Excluding transportation, durable orders rose 0.5% (Briefing.com consensus +0.5%) to follow the prior month's revised gain of 1.0% (from 0.5%).
Today's last economic report, the final reading of the Michigan Sentiment Index for January (Briefing.com consensus 98.0), will cross the wires at 10:00 am ET.
8:00 am: [BRIEFING.COM] S&P futures vs fair value: +2.00. Nasdaq futures vs fair value: +1.50.
Equity futures trade relatively flat this morning as investors digest a batch of earnings reports and eye a wave of influential economic data. The S&P 500 futures trade two points (+0.1%) above fair value.
U.S. Treasuries have given back yesterday's modest gains early this morning, with the 10-yr yield sitting one basis point higher at 2.52%. For the week, Treasuries reside in negative territory, having yet to recoup the big losses suffered on Tuesday and Wednesday.
Crude oil has slipped 0.7% this morning as the hike in U.S. production has outweighed OPEC/non-OPEC production cut efforts. WTI crude trades at $53.41/bbl.
Today's economic data will include advance fourth quarter GDP (Briefing.com consensus 2.2%) and December Durable Orders (Briefing.com consensus 3.0%) at 8:30 am ET, with the final reading of the Michigan Sentiment Index for January following at 10:00 am ET.
In U.S. corporate news:
Alphabet (GOOGL 847.00, -9.98): -1.2% after a miss on earnings has overshadowed better than expected revenues.
Microsoft (MSFT 65.56, +1.29): +2.0% after beating on the top and bottom lines.
Intel (INTC 37.95, +0.39): +1.1% after reporting better than expected earnings and revenue results. The company also issued upbeat guidance.
Starbucks (SBUX 55.95, -2.51): -4.3% after reporting worse than expected revenues and in-line earnings per share.
PayPal (PYPL 40.95, -0.55): -1.3% despite reporting top and bottom lines consistent with consensus estimates.
Reviewing overnight developments:
Equity indices in the Asia-Pacific region ended the week on a mostly higher note, but participation was reduced due to holiday closures in China, Singapore, and South Korea. Japan's Nikkei +0.3%, Hong Kong's Hang Seng -0.1%, India's Sensex +0.6%.
In economic data:
Japan's December National CPI +0.3% year-over-year (expected 0.2%; last 0.5%) and National Core CPI -0.2% year-over-year (consensus -0.3%; last -0.4%). January Tokyo CPI +0.1% year-over-year (expected 0.0%; last 0.0%) and Tokyo Core CPI -0.3% year-over-year (consensus -0.4%; last -0.6%)
Australia's Q4 Import Price Index +0.2% quarter-over-quarter (expected -0.5%; last -1.0%) and Q4 Export Price Index +12.4% quarter-over-quarter (consensus 11.0%; previous 3.5%)
In news:
The Japanese yen (115.07) is lower by 0.5% against the dollar after slipping in reaction to the Bank of Japan's announcement, indicating purchases of Japanese Government Bonds with maturities between five and ten years will be increased to JPY450 billion from JPY410 billion.
Major European indices trade in the red, but losses have been limited. UK's FTSE -0.1%, Germany's DAX -0.2%, France's CAC -0.5%.
In economic data:
Eurozone December M3 Money Supply +5.0% year-over-year (consensus 4.9%; last 4.8%)
Germany's December Import Price Index +1.9% month-over-month (expected 1.3%; last 0.7%); +3.5% year-over-year (consensus 2.7%; previous 0.3%)
France's January Consumer Confidence ticked up to 100 from 99, as expected
Italy's January Consumer Confidence 108.8 (expected 110.6; last 110.9) and January Business Confidence 104.8 (consensus 103.5; last 103.7). December Wage Inflation 0.0% month-over-month (last 0.1%); +0.4% year-over-year (last 0.4%)
Spain's December Retail Sales +2.9% year-over-year (consensus 3.3%; previous 3.2%)
In news:
French Finance Minister Michel Sapin cautioned that time to reach an agreement on the next installment of the Greek bailout is running out. Greek officials have reportedly been asked to implement more austerity measures past 2018, but there has been pushback from the Greek side.
British Prime Minister Theresa May is scheduled to meet with US President Donald Trump to discuss trade policy and the current state of NATO.
5:57 am: [BRIEFING.COM] S&P futures vs fair value: +0.80. Nasdaq futures vs fair value: -5.80.
5:57 am: [BRIEFING.COM] Nikkei...19467...+65.00...+0.30%. Hang Seng...Holiday.........
5:57 am: [BRIEFING.COM] FTSE...7170.72...+9.20...+0.10%. DAX...11820.89...-27.70...-0.20%.
Special thanks to Bloomberg, Briefing, Reuters and Yahoo! Finance for their market summaries. 
Best Regards,
M.A. Perry
Trader and Founder of
WRB Analysis (wide range body/bar analysis)
@ http://twitter.com/wrbtrader 
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