U.S. equity index futures are lower this morning. S&P 500 futures are down 10 points in pre-opening trade. Index futures are responding to growing concerns about the security of Greek debt. Standard and Poor’s and Moody’s placed their debt rating on Greek debt on a Watch list with negative implications.
Concerns about Greek debt quickly placed downside pressure on the Euro and upside pressure on the U.S. Dollar. Strength in the U.S. Dollar triggered weakness in commodities priced in U.S. Dollars including crude oil, copper, gold and silver.
Index futures weakened further following release of economic news at 8:30 AM EST. Weekly jobless claims rose another 22,000 to 496,000 mainly due to stormier than average weather in the U.S. Midwest and Easter U.S. states.
Partially offsetting was a better than expected January Durable Goods Orders report. Consensus was an increase of 1.5% versus a 0.3% increase in December. Actual was an increase of 3.0%. Excluding transportation, Durable Goods Orders slipped 0.6%.
Traders will watch once again for an update on monetary policy to be presented today to the Senate Finance Committee by Federal Reserve Chairman Ben Bernanke. The focus today is on regulatory reform.
Coca Cola Enterprises rose 5% after Coca Cola announced plans to purchase Coca Cola Enterprise’s North American operations.
Several companies reported higher than expected fourth quarter earnings overnight including Biovail, Limited, Canadian Imperial Bank of Commerce, Cameco and Tim Hortons. Tim Hortons also raised its dividend and announced a $200 million share repurchase program.
Bombardier received an order for 40 C Series aircraft from Republic Airways. Republic also has options to purchase another 40 aircraft. Potential value of the deal for the 80 aircraft is $6.34 billion. ‘Tis the season for Bombardier to move higher from early March to mid- July!
Don Vialoux, chartered market technician, is the author of a free
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