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Morning Rage 4.17.2012

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In economic data, housing starts fell to a 5-month low in March – showing annualized starts of 654,000, compared with expectations of 705,000. At the same time, the report showed higher demand for building permits, which is at the highest level since September 2008. Most of this growth is seen in multi-family units. Later this morning, Industrial Production will be released at 9 a.m. ET.

In futures markets, it looks to be a good day to be long risk. S&P 500 and DJIA front-month futures gained 0.6% ahead of the official market open. Crude Oil is also higher on the session, gaining 1%, while Natural Gas continues to experience selling at a $2-handle. Prices today are down 1.3% to $1.989. Currency markets are little changed overnight – EUR/USD is trading at 1.3134, USD/JPY at 80.55, and GBP/USD at 1.5940.

After the bell, IBM, Intel (INTC), and Yahoo (YHOO) report earnings. Keep an eye on those stocks during the trading day.

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Meadows on the Markets

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Today was not a good day to be in Sugar, Cotton, or Coffee futures, down 4.5%, 4.3%, and 2.4%, respectively. The US$ was moderately lower, losing ground against EUR as U.S. traders shrugged off losses overnight. USD/JPY fell 50 pips to 80.43, after touching a low of 80.28.

Crude Oil futures were up slightly. Natural Gas futures reclaimed and closed above the $2-handle – gaining 1.8% on the session. Heating Oil, though, suffered steep declines of 1.7%.

Earnings tomorrow morning will be the focus. Here’s a list of the most prominent companies reporting before the bell:

– Coca-Cola (KO)

– Goldman Sachs (GS) 

– Johnson & Johnson (JNJ)

– Northern Trust (NTRS)

– State Street (STT)

– TD Ameritrade (AMTD)

– U.S. Bancorp (USB)

After the bell, traders will look to IBM, Intel (INTC), and Yahoo (YHOO) for more corporate earnings news.

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Halftime Report for 4.16.2012

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Markets digested upbeat retail sales figures this morning that were followed by disappointing manufacturing and housing reports. Additional housing data will be out later this week – tomorrow (housing starts) and Thursday (existing home sales) – which will paint a more complete picture of the overall market. 

In currency markets, EUR/USD is at session highs after concerns over Spain’s fiscal situation pushed the pair below 1.30 early in the session.  A daily close on the pair below the Ichimoku Cloud at 1.3054 could indicate further selling pressure in the sessions ahead. Gold is weaker on the session as well, down 0.7% to $1,649.10 per ounce.

Natural Gas has regained a $2-handle, trading up 1.3% at $2.007. Crude Oil is down 0.4% to $102.47.

My thinking is that we are basically done trading for the day. All-in-all, markets will look towards earnings reports tomorrow morning before the bell and to the Europe situation. 

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Morning Rage 4.16.2012

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Meanwhile, the economic picture in the U.S. looks a little better this morning. March retail sales showed a 0.8% increase, compared with expectations of 0.3% and following a 1% increase in February. According to the report, electronics, clothing, and furniture stores were among the main beneficiaries. 

Equities are discounting the European situation, with the S&P and NASDAQ front-month futures trading higher by 0.6%, while the DJIA futures gained 0.7%. Crude oil futures are trading flat on the session, and Natural Gas futures gained 0.3%. 

In conjunction with an emphasis on Spain, EUR/USD is lower in trade, falling below 1.30 for the first time since January. If EUR/USD closes below the Ichimoku Cloud – 1.3054 on the daily chart – it could spur additional selling in the pair. 

In earnings news, Citigroup (C) reported this morning that sales and profits were lower than analysts forecast. Quarterly earnings per share were at $0.95, compared with expectations of $1. Despite this, C was able to keep expenses flat year-over-year. Tomorrow will be a blockbuster day for earnings, with Coca-Cola (KO), Goldman Sachs (GS), and State Street (STT) among the heavy hitters reporting before the bell.