Morning Call: Everything You Need To Know About The Markets

OVERNIGHT MARKETS AND NEWS

March E-mini S&Ps (ESH14 +0.23%) this morning are up +0.34% and European stocks are down -0.08% as concern over emerging-markets offsets stronger-than-expected Eurozone economic data. Worries over growth in China along with Fed tapering concerns have sent global stocks down by -3.3% since Jan 23 when a gauge of manufacturing activity in China contracted for the first time in 6-months. Asian stocks closed lower: Japan -2.45%, Hong Kong -0.48%, China -1.14%, Taiwan and South Korea closed for holiday, Australia -0.78%, Singapore -0.68%, India -0.72%. Losses in European stocks were limited after Eurozone Jan economic confidence climbed to a 2-1/2 year high and after the German Jan unemployment rate matched a two-decade low. Commodity prices are mixed. Mar crude oil (CLH14 +0.47%) is up +0.37% at a 4-week high as the severe cold-snap to blanket much of the U.S. has boosted demand for heating fuels. Mar gasoline (RBH14 +0.11%) is up +0.03%. Feb gold (GCG14 -0.56%) is down -0.63%. March copper (HGH14 -0.17%) is down -0.20% at a 1-1/2 month low on Chinese demand concerns after a gauge of Chinese manufacturing activity contracted more than first reported. Agriculture and livestock prices are mixed. The dollar index (DXY00 +0.48%) is up +0.43%. EUR/USD (^EURUSD) is down -0.46%. USD/JPY (^USDJPY) is up +0.20%. March T-note prices (ZNH14 -0.20%) are down -7.5 ticks.

German Jan unemployment fell -28,000, a bigger decline than expectations of -5,000 and the largest drop in 2-1/3 years. The Jan unemployment rate was unch at 6.8% from a downward revised 6.8% in Dec, better than expectations of unch at 6.9% and matched the lowest rate since data for a unified Germany began in 1991.

Eurozone Jan economic confidence rose +0.5 to 100.9 from an upward revised 100.4 in Dec, slightly less than expectations of +1.0 to 101.0 but still the highest in 2-1/2 years. The Jan business climate indicator unexpectedly fell -0.01 to 0.19 from a downward revised 0.20 in Dec, weaker than expectations of a +0.8 increase to 0.35.

UK Dec mortgage approvals rose 71,600, less than expectations of 72,900 but still the most in 5-3/4 years.

Japan Dec retail sales unexpectedly fell -1.1% m/m, weaker than expectations of +0.3% m/m, and on an annual basis climbed +2.6% y/y, weaker than expectations of +3.9% y/y.

The China Jan HSBC/Markit manufacturing PMI was revised downward to 49.5 from the originally reported 49.6, the first contraction in 6-months.

U.S. STOCK PREVIEW

Today's weekly initial unemployment claims report is expected to show an increase of +4,000 to 330,000, adding to last week's small increase of +1,000 to 326,000. Weekly continuing claims are expected to show a -56,000 decline to 3.000 million, more than reversing last week's +34,000 increase to 3.056 million. Today's Q4 GDP report is expected to be relatively strong at +3.2% (q/q annualized), although that would be down from +4.1% in Q3. Today's Dec pending home sales report is expected to show a decline of -0.3% m/m and -0.3% y/y following the Nov report of +0.2% m/m and -4.0% y/y. The Treasury today will conclude this week's $111 billion T-note package by selling $35 billion in 5-year T-notes and $29 billion of 7-year T-notes.

There are 56 of the S&P 500 companies that report earnings today. Notable reports include Visa (consensus $2.16), Amazon (0.69), Google (12.26), UPS (1.25), Exxon Mobil (1.91), ConocoPhillips ($1.32), PulteGroup (0.45), Viacom (1.16), Time Warner (1.73), and Raytheon (1.35). Equity conferences during the remainder of this week include: Cloudcast'14 on Thu.

OVERNIGHT U.S. STOCK MOVERS

ConocoPhillips (COP -0.59%) reported Q4 EPS of $1.40, stronger than consensus of $1.32.

Harley-Davidson (HOG -1.34%) reported Q4 EPS of 34 cents, higher than consensus of 33 cents.

Time Warner Cable (TWC -1.20%) reported Q4 EPS of $1.82, higher than consensus of $1.73.

Whirlpool (WHR -1.58%) reported Q4 EPS of $2.97, weaker than consensus of $3.03.

AutoNation (AN -0.80%) reported Q4 EPS of 83 cents, better than consensus of 76 cents.

Viacom (VIAB -1.57%) reported Q1 EPS of $1.20, higher than consensus of $1.16.

Raytheon (RTN -0.65%) was awarded a $107.92 million modification to a government contract for work on the Patriot missile system.

Gates Capital reported a 5% passive stake in International Game Technology (IGT -1.35%) .

Google (GOOG -1.43%) rose 2% in after-hours trading after it announced that Lenovo Group (LNVGY +3.57%) bought its Motorola handset unit for $2.91 billion.

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