5 Things to Keep in Mind While Trading Today

THE DAY AHEAD

February 24

*Stocks were generally lower in Asian trade, although Shanghai bucked the trend with a gain of about a half percent. But the Hang Seng lost one and a third percent, the Nikkei was down 1.2% and Australia fell three quarters of a percent. European indexes is also back-footed, with the Dax off more than one percent and the Footsie off by about 0.5%. US stock futures are lower by a half to three quarters percent as I write.

*Libya continues to unravel. Although Qaddafi has not budged a member of his inner circle fled to Egypt because of his disgust over the government’s violent reaction to the protests. OPEC has taken note of the oil market reaction to the situation in Libya and may meet “if deemed necessary.” By the way, WTI crude oil prices are up another three dollars this morning, over $101, after a early morning spike above $103; Brent crude oil prices were as high as $119 last night and are still up almost $4 near $115.

*The final Q4 reading of German GDP was unrevised at +0.4% on a quarter on quarter basis and +4.0% year on year. However there was a shift in the make-up of the growth; Domestic Demand was revised down from +0.2% to -0.4% and Exports were more than doubled to +2.5%.

*The February reading of the Confederation of British Industry Retail Sales Index was an eight month low at 6, down from 37 the month before and well short of the forecast for 28. Retailers are now said to expect no growth next month.

*The Chicago Fed National Activity Index is due to be released at 7:30am CST, it is expected to improve by the slightest margin to +0.09 from +0.03 the month before.

*St. Louis Fed boss Bullard is scheduled to speak at 7:30am CST; he will give his outlook for monetary policy in 2011.

*The weekly report on Initial Jobless Claims is due out at 7:30am CST, it is expected to be 405k. Also due out at 7:30am is the January reading of Durable Goods Orders. Headline Orders are forecast to be up 2.8% on a month on month basis and the estimate for Order ex-transportation is +0.5%. The January reading of New Home Sales is due out at 9:00am CST, it is expected to show a 7.4% month on month decline for an annualized sales rate of 305k units.

*The FHFA will release its Home Price Index at 9:00am CST; the Q4 reading is expected to be -0.6% on a quarter on quarter basis and the December reading is forecast to fall 0.1% from the month before.

*Both of the energy inventory reports are set to be released this morning. Inventories of Natural Gas will be out at 9:30am CST, it is expected to show a decline of 83 bcf. The petroleum based inventory report is due out at 10:00am CST. Stocks of Crude Oil are forecast to rise 1.125 million barrels, Gasoline inventories are expected to increase 700k and the estimate for Distillates is -1.2 million.

*The Kansas City Fed will release the February reading of its Production Index at 10:00am CST; no estimate.

*The Fed is scheduled to buy Treasuries today that are due to mature between 8/31/12 and 8/15/13; the results of the operation will be announced just after 10:00am CST.

*The Treasury plans to sell $29 billion 7 Year Notes today; the results of the auction will be announced just after noon CST.

Distributed by IntelBuilder Social Media Platform