January 27th, 2015

Daily Market Commentary



  • The Redbook Index, which measures same-store sales growth in U.S. general merchandisers in the U.S. was reportedly down 3.6% and up 3.2% in month-over-month and year-over-year terms, respectively.
  • The S&P/Case-Shiller Home Price Indices were reportedly up 4.3% in year-over-year terms, in line with estimates.
  • Durable Goods Orders in December in the U.S. were reportedly down 3.4%, below estimates of 0.5% growth.
  • GDP Growth in the U.K. was reportedly up 0.5% and 2.7% in quarter-over-quarter and year-over-year terms, respectively. Both figures were slightly below estimates.


  • Gold traded near the lowest level in a week before Federal Reserve policy makers gather and as European finance ministers agreed to work with the new Greek prime minister to keep the country in the euro.
  • Oil traded near the lowest in almost six years in New York as OPEC’s warning that prices may surge without new investment in production failed to shift the market’s focus from more immediate signs of a supply glut.
  • Copper fell, approaching a five-year low, as data showed China’s industrial profits grew at the slowest pace on record.


  • Rigs in Canada drilling for oil fall to 353 from 566 year earlier, Canadian Association of Oilwell Drilling Contractors says.
  • Royal Bank of Canada is the first major lender to lower mortgage rates after five-year bond yields fell in the wake of a surprise cut by the Bank of Canada last week, according to rate-monitoring websites.
  • Canada’s Parliamentary Budget Officer estimates the annual impact of the oil price decline on government finances will be about $5 billion annually.

United States

  • U.S. stock-index futures fell, signalling the Standard & Poor’s 500 Index will fail to hold gains from a day earlier, as investors considered disappointing corporate results and profit projections.
  • Sharp Corp. is near an agreement to sell its Recurrent Energy solar unit in the U.S., according to a person familiar with the matter.
  • Caterpillar Inc., the world’s largest mining and construction equipment maker, forecast 2015 sales and earnings that trailed analysts’ estimates as plunging oil prices signal lower demand from energy companies.
  • Lockheed Martin Corp. shares declined in early trading after the company forecast an annual profit below analysts’ estimates as the largest government contractor contends with constrained defense spending.
  • Proctor & Gamble said second-quarter profit fell 31% as the stronger dollar ate away at sales and earnings from its international units.


  • European stocks declined from a seven-year high, snapping their longest winning streak since April, as Siemens AG and Royal Philips NV posted disappointing earnings, and Greek stocks tumbled.
  • EasyJet Plc, Europe’s second-biggest discount carrier, said it expects to narrow its first-half loss, after increasing capacity and passenger numbers in the three months through December.
  • Ericsson AB reported sales trailing analysts’ estimates as phone companies in North America curbed projects to expand their wireless networks.
  • Greek bonds and stocks plunged for a second day amid concern the nation’s new government will clash with euro-area finance ministers over its funding needs.
  • Asian stocks rose, poised to closed at a more than two-month high, as a weaker yen buoyed Japanese shares.
  • Sumitomo Mitsui Financial Group Inc., unexpectedly posted an increase in third-quarter profit as income from bond trading and overseas lending rose.
  • 3M Co. beat analysts’ fourth-quarter profit estimates as the maker of Post-it notes and Scotch tape boosted global growth even as a strong USD weighed on international markets.

*All information is taken from Bloomberg, unless otherwise noted.