February 4th, 2015
Daily Market Commentary
- The Ivey Purchasing Managers Index in Canada, which measures business conditions in Canada, was reported at 45.4, below estimates of 53.9.
- ADP Employment change in the U.S. was reported at 213K, below estimates of 225K.
- The ISM non-manufacturing PMI in the U.S. was reported at 56.7, above estimates of 56.3.
- Retail Sales in the Eurozone were reportedly up 0.3% and 2.8% in month-over-month and year-over-year terms, respectively. Both figures were above estimates.
- Oil declined after the biggest four-day rally since January 2009 in New York amid estimates that U.S. crude inventories advanced last week from their highest level in at least three decades.
- Gold advanced after two days of losses amid signs that lower prices spurred physical demand in China, the largest consumer in 2013, before the Lunar New Year holidays as investors cut holdings in exchange-traded products.
- Copper rose for a fourth day, the longest winning streak in six months, after China, the biggest user of the metal, took steps to stimulate growth.
- Major landlords of Target Canada have been battling with the U.S. discounter over how it will conduct its liquidation sales, which could steal business from their other mall tenants. The landlords are worried that Target, which is operating in bankruptcy protection, will flout the terms of some of its leases by bulking up on inventory and widely promoting its going-out-of-business sales – potentially sullying their malls’ image and detracting from rival retail tenants. (Globe)
- At least five rail-to-marine projects have been proposed in the state of Washington that would allow the export or domestic shipment of more than 500,000 barrels a day of oil. A terminal in Oregon is operational already and is being upgraded to handle vessels that carry more than 300,000 barrels of crude.
- J.M. Smucker Co., the maker of jam, coffee and other packaged foods, agreed to acquire Big Heart Pet Brands for about $3.2 billion, gaining a roster of brands that includes Meow Mix, Milk-Bone and Kibbles ’n Bits.
- Ford Motor Co., adding jobs before labor contract talks later this year, said it must give raises to as many as 500 U.S. hourly employees because new hiring is pushing the company past its limit on lower-wage workers.
- Pacific Investment Management Co.’s biggest mutual fund suffered about $11.6 billion in withdrawals in January, the 21st straight month of redemptions at the investment fund created and formerly run by bond manager Bill Gross.
- European stocks were little changed, after two days of gains, as Greek Finance Minister Yanis Varoufakis visits Germany to push his government’s case for changes to the nation’s bailout terms.
- Sky Plc, the European pay-TV provider controlled by Rupert Murdoch, said first-half revenue rose 17 percent as it attracted more television and broadband customers in the U.K. and expanded in Italy and Germany.
- Standard Chartered Plc, the U.K. lender that’s eliminating thousands of jobs, surged the most since 2013 after shareholder Aberdeen Asset Management Plc called it a “very good bank” and reiterated its support for the company.
- Asian stocks rose, with the regional benchmark index heading for its biggest advance in more than a month, as material companies led gains and energy companies rallied after oil entered a bull market.
- Toyota Motor Corp. raised its fiscal year profit forecast and reported quarterly earnings that beat analyst estimates as surging SUV sales and production in Japan make it one of the biggest beneficiaries of a weaker yen.
*All information is taken from Bloomberg, unless otherwise noted.