3 Things to Know Before the Market Opens

THE DAY AHEAD

March 30

*Stocks were generally higher throughout Asia overnight. The Nikkei was up more than two and a half percent, the Hang Seng added almost one and three quarters percent and Australia rose 1.4%. Shanghai was an exception with a decline of a slight fraction, maybe on the rumblings of the possibility of tighter policy by the PBOC. European indexes are also broadly higher, with the Dax up by more than one and a half percent and the Footsie is currently better by about a half percent. US stock futures are up by a half percent or so as I write.

*The preliminary February reading of Japan’s Industrial Production was up 0.4%, better than the expected decline of 0.1%, however it should be said that the survey was conducted before the earthquake and related events.

*The Fukushima reactor situation is said to be stabilizing, but the quality of information continues to be challenged.

*Libya, Syria, Jordan, et al, remain in a state of flux.

*The March reading of the Confederation of British Industry Retail Sales Index rose more than expected, up to 15 from 6 the month before, but sales are described as “subdued” because the index has averaged 25 over the past year.

*US mortgage applications were down 7.5% in the week ended March 25, according to the Mortgage Bankers Association; both key components were down in the week, but the overall decline was driven by a 10.1% drop in refinancing.

*The Challenger Group says there were 41,528 job cut announcements in March; down 9k from the month before and almost 39% lower than a year ago.

*ADP is scheduled to release at 7:15am CDT their estimate of the net change of private sector payrolls in March; it is expected to be +208k.

*The weekly report on energy inventories is due out at 9:30am CDT. Stocks of Crude Oil are forecast to increase 1.5 million barrels, Gasoline inventories are expected to fall 2.0 million and the estimate for Distillates is -1.0 million.

*The Fed is scheduled to buy Treasuries today that are due to mature between 10/15/13 and 2/28/15; the results of the operation will be announced just after 10:00am CDT.

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

*There are three Fed speakers on the calendar today, including: KC Fed boss Hoenig, who is set to speak at the London School of Economics at 12:30pm CDT; Richmond Fedster Lacker will testify at 1:00pm CDT before a House Committee on the Dodd/Frank Act; and St. Louis Fed’s Bullard continues his excellent European adventure with a speech at a UBS dinner in London at 3:00pm CDT, his topic is “US Monetary Policy and the Path to Normalization”.

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