MARKET ACCESS CENTER: MORNING REPORT
Ahead of the Bell: Dow futures are trading down 2 points and S&P futures are trading up 2 points. Global financial markets are retreating today on fears that turmoil and violence in Iraq could escalate further, prompting investors to seek safe haven asset classes. According to reports, the situation in Iraq is worsening by the day, which triggered a sell off in US equities late on Tuesday. The US is urging the various ethnic groups, including leaders of Iraq's Kurdish region to stand with Baghdad against the rebel insurgency that threatens to destabilize the country. Crude oil prices are presently stable, but could rise in the long term if the crisis in Iraq is not resolved and the country falls into civil war.
On the economic calendar today, durable goods orders for May will be out before the market opens and it is expected to be 0.4% compared with 0.8% for April. A final reading of first quarter GDP will also be published before the opening bell, it is forecasted to be -1.8% versus -1.0% from its last reading.
The dollar is up against the Japanese yen and the British pound and down against the euro. Gold is trading at $1,313. Crude oil is currently trading at $106 a barrel.
Yesterday, stocks fell, wiping out earlier gains amid concerns over escalating violence in Iraq as investors assess the strength of the global economy.
On CNBC this morning, Dennis Gartman of The Gartman Letter Edition, talked about the pull back in stocks on Monday. Gartman said this is still a bull market, despite the pull back in the equities yesterday. If you are an investor, sit back and wait and see if there will be a 5% correction, particularly if the situation in the middle east worsens. He warns investors to keep a watchful eye on geopolitical events around the globe.
Have a great day.
Tuesday's Close
DJIA down 119.13 pts/-0.70%/ 16,818.13
S&P down 12.63 pts/-0.64%/ 1,949.98
Nasdaq down 18.32 pts/-0.42%/ 4,350.36
Wednesday's Futures
Dow Futures down 2.00 pts/-0.02%
S&P Futures up 2.25 pts/+0.07%
Nasdaq Futures down 2.75 pts/-0.03%
Overseas Markets
FTSE -0.47%
CAC 40 -0.57%
NIKKEI 225 -0.71%
HANG SENG -0.06%
Overseas: Global stock markets are lower today. European and Asian markets are down as investors pull back and gauge the crisis in Iraq as crude oil prices hover near a nine-month high.
Economic Reports: Durable Goods Orders expected to be 0.4% and GDP expected to be -1.8% at 8:30 a.m.
Top Headlines
Reports suggest the SEC will soon unveil plans for a one-year test of trading in some stocks in five-cent increments. The plan involves three separate test groups, with 300 stocks in each group, according to the SEC.
The US Air Force confirmed it had awarded Lockheed Martin Corporation (LMT) a fixed-price contract valued at $1.9 billion to complete work on two missile-warning satellites as part of the Space-Based Infrared System (SBIRS).
New York Federal Reserve Bank President, William Dudley said the central bank could raise interest rates by mid-2015 without risking an "undesirable rise in inflation".
Commodities/Currency
Gold: down $7.10 to $1,313.30
Oil: up $0.37 to $106.40
EUR/USD 1.3606 +0.0003
USD/JPY 101.9400 -0.0150
GBP/USD 1.6965 -0.0018
Volatility Index (VIX): As of the close of business Tuesday, June 25, 2014 the VIX is up 1.15 at 12.13.
Companies Reporting Quarterly Earnings
General Mills reports Q4 adj EPS 67c, vs. Est 72c and Q4 revenue $4.28B, vs. Est $4.42B.
Lindsay Corp. reports Q3 EPS $1.28, vs. Est $1.43 and Q3 revenue $169.9M, vs. Est $184.29M.
Today's Opening and Closing Bells
Adeptus Health Inc. (ADPT) will visit the New York Stock Exchange to celebrate their IPO, President & CEO, Thomas S. Hall will ring the Opening Bell.
Molson Coors Brewing Company (TAP), led by President and CEO Peter Swinburn and members of the company’s management team, will visit the New York Stock Exchange and will ring the Closing Bell.
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