U.S. equity index futures moved lower this morning. S&P 500 futures dropped 8 points in pre-opening trade. Futures are responding to overnight strength in the U.S. Dollar. Commodities priced in U.S. Dollars including gold, silver, copper and crude oil are trading lower.
Equity index futures weakened further following release of the weekly jobless claims report. Jobless claims rose from 473,000 to 480,000.
Canada’s inflation rate increased at a faster than expected rate in November. Consensus for Consumer Prices was an increase on a year-over-year basis of 0.9% versus 0.1% in October. Actual was an increase to 1.0%. The month-over-month increase was 0.5%. Core CPI in November on a year-over-year basis was 1.5% versus 1.8% in October.
The Senate Banking Committee votes this morning for approval of Ben Bernanke as chairman of the Federal Reserve. The vote is expected to pass in favour of Bernanke.
Citigroup fell 9% following news that its $20 billion equity issue was priced at $3.15 per share, lower than the anticipated $3.25.
Goldman Sachs and Morgan Stanley slipped 2% following a downgrade by Meredith Whitney.
Fedex fell 3% despite reporting higher than expected fiscal second quarter earnings. Consensus was $1.06 versus $1.58 per share last year. Actual was $1.10 per share. However, third quarter guidance was lower than expected.
Biovail added 1% after Thomas Weisel initiated coverage with an Overweight rating. Target price is $18 U.S.
Agnico Eagle fell 4% after TD Newcrest downgraded the stock from Buy to Hold due to higher than expected costs and capital spending at new projects. Target was reduced from $78 to $68.
BCE added 2% after announcing an increase its quarterly dividend from $0.405 to $0.435 per share. In addition, the company announced a share buy back program valued at $500 million.
Don Vialoux, chartered market technician, is the author of a free daily report on equity markets, sectors, commodities, equities and Exchange-Traded Funds.
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