U.S. equity futures are pointing to a lower open after falling sharply during yesterday’s session. Stocks were mainly in positive territory on Wednesday morning until about 11 am CT, when they fell quickly into the red. Comments from the IMF, Fed-speak and violence in the Ukraine all contributed to the reversal lower. Investors will be watching several data points today for direction. The FOMC minutes released yesterday afternoon showed some differing opinions on fiscal policy and the exit plan on stimulus. The CBOE Volatility Index (VIX) was higher for the second day in a row on the nervousness in stocks. We should see option buying remain strong if stocks remain in negative territory after the opening bell.
Treasuries are modestly higher this morning after a downturn yesterday. If stocks remain weak we could see the ‘Risk-off’ trade accelerate today. Global equities were lower following disappointing PMI data out of China and the euro-zone. France data was particularly weak and a Japan saw a record trade deficit. The data outcome was much weaker than expected and it clearly shows how business sentiment is failing to gain momentum as headwinds to growth are still present. The economic calendar is jam-packed today with data on Jobless Claims, CPI and manufacturing due.
Stock Stories:
Tesla (TSLA) –Expectations – The luxury electric-car maker reports mixed quarterly results after the close yesterday. Despite falling short on top-line revenue expectations, the auto-maker guides sales for the year up more than 50% from 2013 numbers on China growth. The shares are up over $20 ahead of the opening bell.
Facebook (FB) – WhatsUP?! – The social media leader agrees to acquire WhatsApp for a potential $19B when it’s all said and done. The company is attempting to get into a bigger piece of the younger demographic with the purchase of the stand-alone messaging service. While many believe the price was way too high, WhatsApp has 450 users which most are in emerging countries.
