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TradeTheNews.com Barron’s Summary: Cover story on mutual fund performance in 2009; cautious on firms who fail to offer dividend payment

Barron's Summary: Cover story on mutual fund performance in 2009; cautious on firms who fail to offer dividend payment
Barron's recap of Mutual Fund performance in 2009: Best performers included Putnam, T. Rowe Price, Aberdeen, FAF and Nuveen. Expectations for 2010 are much more mixed; article notes that most funds are still representing declines across a broader two-year average. Return of capital from individual investors is seen rising in 2010, with interest in US focused funds rising y/y. Fund allocation and top calls by portfolio managers: MS looking to sectors with simple business models, mentions Master Card [MA], Morningstar [MORN], and Versik [VRSK]. Franklin Templeton moving towards a more normalized book with positive mention in Exxon [XOM], Southern Co [SO], Target [TGT] and PepsiCo [PEP].

Barron's looks at Hedge Funds industry in 2010, sees more selective approach. Return levels will not be as easy as those seen in 2009. Sector managers are seen as interested in distressed debt, emerging markets and L/S credit. Article states that growth and news flow out of China remains a macro concern. Article includes positive fund mention on CVS [CVS] and Wal-Mart [WMT].

Barron's' critical on corporate dividend payouts/yields at Apple [AAPL], Google [GOOG], Cisco [CSCO], Amgen [AMGN], eBay [EBAY], Dell [DELL] and DirectTV [DTV]. States that current low payout rates and activities to hoard corporate cash are only a disservice to shareholders. 15 of the top 100 S&P 500 companies have no dividend payment. States those firms should follow the lead set by Microsoft [MSFT] in 2003 and pay regular and special dividends. Article critical of institutional investors for not placing enough pressure on firms to offer, or raise payments. Believes that dividend payments more attractive than buy backs, as buy backs at high levels cost the firm more and provide little benefit to the shareholder. Barron's disputes the expectation that growth sector firms should not pay dividends (rather than reinvesting capital), states that strong firms can demonstrate their solid base by both making dividends, and reinvesting for future growth.

Barron's compares brokers stock picking abilities; top pickers include Goldman, McAdams Wright and Morgan Keegan due to emphasis on tech, financials and small cap names. Worst performers included Wedbush Morgan and Raymond James. Goldman themes in 2010 include cash rich companies and healthcare, positive mention in Merck [MRK] and Pfizer [PFE].

Barron's critical on government missing real focus priority: federal debt. States that Wednesday's State of the Union failed to adequately address rising deficit levels and the methods through which Congress will fund the national debt. Proposed spending freeze will only have effect on approx 35% of the budget, ignoring growth section that includes: Medicare, defense and entitlements. Barron's fears that current levels of stimulus spending will gradually become the norm, with higher levels of government spending becoming long-term budget expectations, rather than one-off programs.

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TradeTheNews.com Market Internals update at 3:30pmET

Market Internals update at 3:30pmET
- NYSE volume 945M shares, about 13% above its three-month average; decliners lead advancers by 3.5:1.
- NASDAQ volume 2.54B shares, about 48% above its three-month average; decliners lead advancers by 2.1:1.
- VIX index +3.5% to just over 24.50

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TradeTheNews.com Market Internals update at 2:00pmET

Market Internals update at 2:00pmET
- NYSE volume 660M shares, about 3% above its three-month average; advancers and decliners are about even.
- NASDAQ volume 1.82B shares, about 35% above its three-month average; decliners lead advancers by 1.2:1.
- VIX index -1.5% to just under 23.50

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TradeTheNews.com Market Internals update at 12:00pmET

Market Internals update at 12:00pmET
- NYSE volume 460M shares, about 3% above its three-month average; advancers lead decliners by 1.1:1.
- NASDAQ volume 1.25B shares, about 35% above its three-month average; advancers lead decliners by 1.2:1.
- VIX index -2.1% to just under 23.50

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TradeTheNews.com US Market Update

US Market Update
Dow +43 S&P +2.9 NASDAQ -2.2
***Economic Data***
- (SA) South Africa Dec Trade Balance (ZAR) 3.7B v 0.3Be
- (BE) Belgium Dec Unemployment: 8.2% v 8.1% prior
- (CA) Canada Dec Industrial Product Price M/M: -0.1% v 0.5%e; Raw material Price Index M/M: -1.7% v 1.4%e
- (US) Q4 Advanced GDP Annualized Q/Q: 5.7% v 4.6%e (highest since Sept 2003); Personal Consumption: 2.0% v 1.8%e
- (US) Q4 Advance GDP Price Index: 0.6% v 1.3%e; Core PCE Q/Q: 1.4% v 1.3%e
- (US) Q4 Employment Cost Index: 0.5% v 0.4%e
- (US) Jan Chicago Purchasing Manager: 61.5 v 57.2e
- (US) Jan Final University of Michigan Confidence: 74.4 v 73.0e
- (US) Jan NAPM-Milwaukee: 56.0 v 52.0 prior

- The surprisingly strong advance Q4 GDP data and better-than-expected confidence and regional PMI data added to early stock gains that were already being fueled by multiple strong earnings reports in the technology sector. If the final GDP reading comes in at or above the advance reading, annualized Q4 GDP would be higher than at any time since September 2003. Note also that the Chicago Purchasing Manager employment components approached five year highs, providing even more confidence. Despite some initial equity gains trading has been choppy and as the afternoon approaches traders are focusing in on the weak action in tech. Shares of MSFT JNPR VSEA are down noticeably from strong openings while names like KLAC MXIM RMBS CA are all in the red post Q4 results. Commodities have made an attempt at stabilizing after testing some key levels on the downside. Front month copper continues to be heavy making fresh 2 month lows below $3.10 and March crude consolidates right around its 200-day moving around $74. Treasury prices were lower in the early going, weighed down by the strong economic data but have since recovered. The 10-year yield is a basis point below where it was trading late yesterday at 3.65%.

- Tech names Microsoft, Amazon, SanDisk and Juniper Networks all crushed consensus expectations. Microsoft was also way ahead of the Street on top-line revenue, driven by very strong demand for its new Windows 7 operating system, although traders should note that both revenue and EPS were higher due to new deferred revenue recognition rules. While executives said they have not seen a return of enterprise spending, they expect server shipments to improve over the next two quarters. MSFT rose 2% before the bell, but is back around even mid morning. Amazon authorized a new stock buyback and offered strong revenue guidance for next quarter. SanDisk said its results were their best quarterly performance ever in revenue, profit and cash flow. Note that the firm's guidance for next quarter and the full year was conservative. AMZN was up as much as 4% after the open, but is around +2% currently. JNPR is up nearly 5%, SNDK is down 7%.

- Chevron's Q4 results were surprisingly mixed: earnings missed expectations while revenue was way ahead of the consensus view. The firm's upstream revenue was up by nearly 30% on a q/q basis. The downstream operation racked up a substantial loss on one-time items (according to BoA/Merrill Lynch's analysis); Chevron blamed the downstream loss on low margins on the sale of gasoline and other refined products due to weak demand and excess supply worldwide. Shares of CVX are up nearly 1% in early trading.

- In other earnings, Mattel's earnings were well ahead of expectations. Arch Coal offered disappointing results and guided well below expectations, warning that Q1 would be its weakest period of FY10. ACI is down 7%. Fortune Brands did well in its Q4 but offered a very soft FY10 earnings forecast and said Q1 would be especially weak. FO is -3%. Auto components name Autoliv may have missed bottom line estimates, but its forecast for next quarter and the full year was much better than expected. ALV is up 7%. Label supplies maker Avery Dennison missed on earnings and offered a very mixed outlook for the full year. AVY is -12%

- The positive US economic data further strengthened the greenback during the New York session, with EUR/USD approaching fresh six-month lows near 1.3900. Traders continue to focus on European peripherals; Spain presented a roadmap this morning to bring its budget deficit back within the Maastrict Stability Pact criteria of 3.0% by 2013. Early analysis on Spanish budget plans indicates the country's 2009 deficit-to-GDP ratio was much higher than previously indicated and forward growth projections for 2011 and 2012 seem overly optimistic for an economy that was not projected to return to "normal" levels of employment for at least a decade. Yen softness is being attributed to Toshin launches and month-end rebalancing flows. JPY also continued to mirror the volatile price action exhibited in the US 2-year note. USD/JPY is hovering near the 91 area.

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TradeTheNews.com European Market Internals update at 10:30am ET

European Market Internals update at 10:30am ET
- FTSE100 volume 860.7M shares, about 18% higher than its 30 trading day moving average
- DAX30 volume 156.7M shares, about 93% higher than its 30 trading day moving average
- CAC40 volume 99.9M shares, about 23% higher than its 30 trading day moving average

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TradeTheNews.com Market Internals update at 10:30amET

Market Internals update at 10:30amET
- NYSE volume 238M shares, about 5% below its three-month average; advancers lead decliners by 5.5:1.
- NASDAQ volume 620M shares, about 25% above its three-month average; advancers lead decliners by 3.1:1.
- VIX index -3.75% to just under 23.00

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TradeTheNews.com European market Update: Renewed rumors of a potential Greek bailout plan aids risk appetite

European market Update: Renewed rumors of a potential Greek bailout plan aids risk appetite
*** ECONOMIC DATA ***
- <b>Indian Central Bank (RBI) raises its cash Reserve rate by 75bps to 5.75% (more than expected). It also maintained its Repo and reverse repo rates (as expected)</b>
- (UK) Jan Nationwide House Prices M/M: 1.2% v 0.3%e; Y/Y: 8.6% v 7.3%e
- (TH) Thailand Dec Current Account: $760M v $600Me; Overall Trade Balance: $2.5B v $2.3B prior; Total Trade Balance: -$0.1B v $1.1B prior; Exports: $14.5B v $13.7B prior; Imports: $14.7B v 12.6B prior
- (TH) Thailand Dec Manufacturing Production Y/Y: 35.7% v 24.0%e; Capacity Utilization: 70.1% v 65.2%prior
- (TH) Thailand Dec Business Sentiment Index: 50.4 v 49.0 prior
- (HU) Hungary Dec Producer Prices M/M: 0.1% v 0.5% prior; Y/Y: 1.3% v 1.5%e
- (HU) Hungary Dec Unemployment Rate: 10.5% v 10.7%e
- (TU) Turkey Dec Trade Balance: -$4.9B v -$4.8Be
- (CZ) Czech Dec Preliminary Industrial Output Y/Y: 2.1% v 2.0%e
- (SP) Spain Q4 Unemployment rate: 18.8% v 18.5%e; highest since Mar 1998
- (SP) Spain Jan Preliminary CPI EU Harmonized Y/Y: 1.1% v 1.2%e
- (SP) Spain Current Account: -&#8364;4.7B v -&#8364;4.2B prior
- (SW) Sweden Dec Household Lending Y/Y: 9.3% v 9.0% prior
- (SW) Sweden Nov Non-Manual Wages: 2.8% v 2.6% prior
- (HK) Hong Kong Dec M3 Money Supply Y/Y: 10.5% v 14.1% prior
- (HK) Hong Kong Dec Monthly Budget (HKD): 37.7B v 17.9B prior
- <b>(EU) ECB Lending Report: Banks tightened credit standards less aggressively in Q4</b>
- (EU) Euro-Zone Dec M3 Y/Y: -0.2% v -0.5%e; M3 three-mth avg: -0.1% v -0.1%e
- (IC) Iceland Dec Final Trade Balance (ISK): 7.0B v 6.2B prior
- (NO) Norway Dec Retail sales Volume M/M: 0.8% v 0.8%e; Y/Y: 3.9% v 3.2%e
- (IT) Italy Dec PPI M/M: 0.2% v 0.1%e; Y/Y: -1.6% v -1.5%e
- <b>(EU) Euro-Zone Dec Unemployment Rate: 10.0% v 10.1%e</b>
- (<b>EU) Euro-Zone Jan CPI estimate: 1.0% v 1.2%e</b>
- (IT) Italy Dec Unemployment Rate Seasonally Adj: 8.5% v 8.4%e
- (GR) Greece Nov retail Sales Y/Y: -9.0% v -14.0% prior
- (SZ) Swiss Jan KOF Leading Indicator: 1.77 v 1.71e

*** SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM ***
- <b>In equities:</b> Equities in Europe opened on a bounce-back from yesterday's broad declines. Asian markets traded sharply negative with the ASX200 at 7-week lows. In early European trading, banks looked to recover from losses over the past 6 sessions that have posted 5 declines. Energy names showed some resilience on a recovery in crude. In earnings actions, after the market reports from French Areva [CEI.FR] and German Henkel [HEN.GE] lead to positive trading. BMW [BMW.GE] provided prelim 2009 numbers along with reiterated guidance and traded higher. Revised guidance from aerospace/defense name Finmeccanicna [FNC.IT] led to heavier sector trade. The premarket session's premier earning came from Infineon [IFX.GE] which not only beat estimates, but updated Q2 and FY10 guidance. Shares opened well bid but rolled over and turned negative during the conference call. The firm's dependence on recovery in the auto sector has been attributed to part of this movement. Into 5:00EST, European equity markets are working hard to surrender all of their gains. Markets are cautious ahead of US Q4 advanced GDP release. Volumes in trading have remained steep with good turnover in tech and financials.

- Individual equities: <b>Infineon</b> [IFX.GE]: Reports Q1 Net &#8364;66M v &#8364;41Me , Rev &#8364;941M v &#8364;909Me; Raises FY10 guidance. <b>Areva</b> [CEI.FR]: Reports FY Rev &#8364;14B v &#8364;14.5Be (incl T&D division); sees significant FY10 growth for nuclear and renewables segment. <b>BMW</b> [BMW.GE]: Reports prelim FY09 Rev &#8364;50.68B v &#8364;48Be, Sees likelihood of positive 2009 earnings. <b>Porsche</b> PAH3.GE: CEO: Says H1 Rev &#8364;2.9B -3.3% y/y; Unit sales at approx 33.2K units.

- Speakers: <b>ECB's Trichet</b> reiterated his view that he agrees with US authorities when they state that a strong USD in best interest of US. He added that a strong dollar corresponded to overall interest of global economy and for Europe and that other currencies that do not float, could possibly have an orderly appreciation. <b>German Ministry of Finance (MOF)</b> commented that the 2010 economic recovery might struggle to sustain and added that the recent pace of its recovery was slowing. It reported that Dec German Federal and State Tax revenues declined by 6.2% y/y and the overall 2009 Federal tax revenues was down 4.7% y/y. <b>EU's Almunia</b> declined to comment on press speculation of a pending EU draft plan on Greece. He reiterated the official view that Greece would not default on its sovereign debt and added that "default does not exist" in Euro-Zone. He did note that officials were discussing the fiscal imbalances every month and noted that when markets unravel, we need to be serious as fiscal adjustments will be needed. <b>India Fin Sec Chawla</b> commented that the RBI rate decision earlier today was appropriate. He reiterated the view that food inflation was a matter of concern. <b>China's PBoC issued its Q4 economic report</b>. It stated that China's economic recovery would be cemented in 2010. The PBoC reiterated that it would maintain its 'moderately loose' monetary policy and "proactive" fiscal policy. China faced rising inflationary pressure in 2010 due to rising commodity prices and domestic money supply. It noted that its economy would be more complicated to manage this year and maintaining price stability to be more difficult. <b>Poland Gov't released some guidelines in its fiscal plan</b> as it set spending cap to reduce deficit below 3% of GDP. Poland targeted to cut public debt to below 40% of GDP and anchor non-fixed budget spending growth at 1% in real terms. <b>German Bundesban</b>B commented that it saw few signs of credit crunch developing and largely expected stable credit volume in 2010. <b>India Central Bank's Subbarao</b> commented that the RBI would use appropriate measures to manage capital flows. He added that capital flows to emerging markets would increase and that capital inflows into India corresponded to current Account deficit. He also noted thatinterest rate would rise at some future point

- <b>Currencies:</b> Rumors continue to swirl about the peripheral European debt situation. The session saw a bit of relief in risk aversion as Euro-zone bond spreads narrowed on persistent speculation of a looming Greek bailout. An FT article noted that high-level EU officials believe that Greece would in the last resort receive emergency support from other euro zone governments and the European Commission. Dealers noted rumors of a emergency meeting trying to be put together in Brussels for Feb 11 for these European peripherals. The USD and JPY pairs again retraced its Asian session gains throughout the European morning in price action similar to Thursday. However, the risk appetite remain on wobbly legs as FX dealers await details on the Spanish deficit plans ( Chatter circulated that the Spanish Gov't would discuss about &#8364;50B in spending cuts by 2013, which amounts to around of its 5% of GDP).
- The JPY softness also attributed toshin launches and month end rebalancing flows

- <b>Fixed Income</b>: Government bonds largely unchanged amidst risk revival with Bunds steady at 3.20%. German & US yield curves were flatter with short end selling (2yr note +1.5bps at 0.875%). Gilts subject to some bargain hunting, 10yr bought on approach of 4.00%. Market are focusing on expected end to BOE's QE next week. Greek 10y shredded 30bps to trade at Bunds +370bps after FT hinted at EU commission support for Greece. Spain spreads also improved by 7bps to +91bps ahead of its planed Budget details.

- <b>Geo/political:</b> The US senate held a busy session on Thursday, approving Bernanke to a second term as Chairman of Federal Reserve, approving legislation to increase the ceiling on federal debts by $1.9T and approving legislation that allows for tightening sanctions on Iran. New approval allows Pres Obama to sanction gasoline suppliers and target economic and political elites in the country. North Korea has maintained its artillery barrage, firing shells into the sea near disputed islands on the peninsulas western coast. Shelling has continued for 3 days, on and off, leading South Korea to threaten further deployment of radar and counter battery units to the region. Russian aeronautic firm Sukhoi held its maiden flight for the countries next, 5th generation all weather, air superiority fighter aircraft, the PAK FA. The model is designed to directly challenge the US Air Forces F22 raptor and is being designed in a production JV with India. The PAK FA is scheduled to enter operations service in 2015

-<b>Energy/Commodities</b>: Shanghai Copper inventory rises to 101.2K ton, up 3.9K tons w/w. Analysts at Credit Suisse extended their cautious commentary on the refining sector in their preview of Q4 earnings. CS stated that the recent recovery in sector margins are more a seasonal byproduct of cold winter, and should not be cheered. The FT has reported that Ukraine is seeking to sign new, long term contracts with Gazprom in hopes of not only avoiding transit issues in 2011, but to discourage the firm from developing bypassing pipelines. Gazprom and Russia have both strongly backed both the Nordstream and Stouthstream pipelines to bypass central and eastern European transit states. Comments from Royal Dutch Shell CEO Vosser, made in Davos, have fallen in line with a broad range of executive statements made at the conference from the energy industry. Vosser put the trading range of crude at $60-80bbl along with expectations that refining margins would remain low.

***Looking Ahead:
- 7:00 (SA) South Africa Dec Trade Balance (ZAR) 0.3be v -2.5b prior
- 8:15 (BE) Belgium Dec Unemployment: No est v 8.1% prior
- 8:30 (CA) Canada Dec Industrial Product Price M/M: 0.5%e v 1.0% prior; Raw material Price Index M/M: 1.4%e v 2.2% prior
- <b>8:30 (US) Q4 Advanced GDP Annualized Q/Q: 4.6%e v 2.2% prior; Personal Consumption: 1.8%e v 2.8% prior</b>
- 8:30 (US) Q4 Advanced GDP Price Index: 1.3%e v 0.45 prior; Core PCE Q/Q: 1.35e v 1.2% prior
- 8:30 (US) Q4 Employment Cost Index: 0.4%e v 0.4% prior
- <b>9:45 (US) Jan Chicago Purchasing Manager: 57.2e v 58.7 prior</b>
- <b>9:55 (US) Jan Final University of Michigan Confidence: 73.0e v 72.8 prior</b>
- 10:00 (US) Jan NAPM-Milwaukee: No est v 52.0 prior
- 11:00 (CO) Colombia Dec Unemployment Rate: 12.3%e v 12.1% prior
- 15:30 (MX) Mexico Dec Budget balance YTD: No est v -218.1B prior
- (CO) Colombia Central Bank Interest rate decision: Expected to maintain the Overnight lending rate at 3.50%
- (PD) Poland Dec Budget Level (PLN): No est v -498.2M prior; Budget Level YTD: No est v -24.4B prior

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TradeTheNews.com European Market Internals update at 5:00am ET

European Market Internals update at 5:00am ET
- FTSE100 volume 247.7M shares, about 17% higher than its 30 trading day moving average
- DAX30 volume 59.0M shares, about 112% higher than its 30 trading day moving average
- CAC40 volume 31.7M shares, about 14% higher than its 30 trading day moving average

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TradeTheNews.com Asian Market Update: Strong Samsung and Kia results, signs of recovery in Japan inflation and employment cannot revive equity rally; EUR/USD makes new lows; India raises Cash Reserve by 75bps above 50bps estimate

Asian Market Update: Strong Samsung and Kia results, signs of recovery in Japan inflation and employment cannot revive equity rally; EUR/USD makes new lows; India raises Cash Reserve by 75bps above 50bps estimate

ECONOMIC DATA
- (NZ) NEW ZEALAND DEC TRADE BALANCE (NZ$): 2M V -100ME
- (NZ) NEW ZEALAND DEC BUILDING PERMITS M/M: -2.4% V 3.0%E (first decrease in 6 months)
- (AU) Australia Nov Conference Board Leading Index: -0.3% v -0.3% prior
- (JP) Japan Jan Nomura/JMMA Manufacturing PMI: 52.5 v 53.8 prior
- (JP) JAPAN DEC JOBLESS RATE: 5.1% V 5.3%E (8-month low); JOB-TO-APPLICANT RATIO: 0.46 V 0.46E
- (JP) JAPAN DEC HOUSEHOLD SPENDING Y/Y: 2.1% V 1.6%E
- (JP) JAPAN DEC CPI Y/Y: -1.7% V -1.7%E; CORE Y/Y: -1.3% V -1.3%E (7-month high for both measures)
- (JP) Japan Dec Prelim Industrial Production m/m: 2.2% v 2.5%e, y/y: 5.3% v 5.7%e
- (UK) UK Jan GfK Consumer Confidence: -17 v -18e
- (AU) AUSTRALIA DEC PRIVATE SECTOR CREDIT M/M: 0.3% V 0.1%E (11-month high); Y/Y: 1.5% V 1.1%E (3-month high)
- (SI) Singapore Q4 Unemployment Rate: 2.1% v 3.4%e (7-month low)
- (SI) Singapore M1 Money Supply y/y: 23.5% v 25.4% prior; M2 y/y: 11.3% v 10.1% prior; Bank Loans y/y: 3.4% v 1.8% prior; Credit Card Billings: 2.7B v 2.4B prior; Credit Card Bad Debts: 16.3M v 15.2M prior
- (JP) Japan Dec Vehicle Production y/y: 8.6% v 0.5% prior (highest since Jul 2008)
- (KS) South Korea Dec Leading Index y/y: 12.8% v 12.6% prior (multi-year high)
- (KS) South Korea Dec Industrial Production m/m: 3.5% v 1.5%e; Y/Y: 33.9% v 30.8%e
- (JP) JAPAN DEC HOUSING STARTS Y/Y: -15.7% V -18.8E; ANNUALIZED HOUSING STARTS: 0.819M V 0.812ME; CONSTRUCTION ORDERS Y/Y: 0.6% V -11.6% PRIOR

- Signs of recovery in several economic data points in Japan and strong earnings results from some of the biggest Korean names could not shrug the bearish investor sentiment permeating global equity markets. In the final hour of Tokyo trading, Nikkei225 is at session lows down 1.9%, Sydney's S&P/ASX and Korea's Kospi are off by over 2%, while Taiwan and Hang Seng are down 0.7%. Ahead of the first GDP print for Q4, front-month S&Ps are also down 0.4%, extending Thursday decline after a busy afterhours Thursday session that included strong Microsoft and Amazon results.

SPEAKERS/PRESS
India:
- India central bank joined the frey of monetary tightening, raising its cash rate by 75bps - a wider than expected margin of 50bps - to 5.75%. The bank forecasted 7.5%+GDP growth may be sustained for a year from April and that rapid rise in food inflation is undesirable. Going forward, RBI said it will focus on inflation and monitor conditions for full recovery to take further tightening measures.

Japan:
- In Tokyo, central bank governor Shirakawa responded to expectations for more easing by noting that the current level of monthly JGB buying is appropriate. Moreover, Shirakawa saw stable FX levels as critical, pledging to act quickly to ensure market stability - all comments referring to the most recent period of Yen strength. BOJ gov also said the central bank will support efforts to overcome deflation, even as the pace of downward pricing pressures eased for second month, rising to the highest level in 7 months. Also on the upside, Japan jobless rate fell to 8-month low of 5.1% and household spending improved, but industrial production eased from its recent torrid pace of growth. Minutes of the December Bank of Japan meeting were still dovish, wish one member dissenting against status quo to implement additional easing policy and all agreeing that more easing steps may be needed.

China
- In China, reports of the repercussions of aggressive lending continued to feed through official comments and press reports. Commerce Ministry said that 2010 double-digit auto sales growth is possible - sentiment reflected by growth projections in the country by Kia Motor. China Securities Times said the banks that lent aggressively in the earlier part of Jan are transferring loans to non-bank financial institutions - practices that Chinese banks have implemented to offload questionable loans in the past.

EQUITIES
- Among the more notable companies reporting earnings in Asia, Samsung Electronics posted Net Op Profit KRW3.7T v KRW2.4Te on Rev KRW39.2T v KRW24Te. On a segment basis, Samsung saw Q4 chip sales KRW8T v KRW8.1Te with profit KRW1.7T v KRW1.8Te and Q4 LCD sales KRW6.3T v KRW6Te with profit KRW530B v KRW550Be, noting that Q4 LCD shipments are similar to Q3. In a potentially troubling sign going forward, the company noted the possibility of LCD oversupply in H2, with supply growth beginning to exceed demand by Q3. Also in Korea, Kia Motor reported KRW604B v KRW285Be, Op Profit KRW412B v KRW327Be, Rev KRW5.7T v KRW5.2Te, guiding 2010 Rev KRW30.6T v KRW18.4Te amid 37% y/y growth in Sales target from China.

- In Tokyo, shippers' 9-month results were much worse on comparable y/y basis, with downbeat tone reaffirmed for FY guidance across the board. Mitsui OSK reported 9-month Net &#165;2.2B v &#165;138B y/y on Rev &#165;985.4B v &#165;1.6T y/y, Kawasaki reported 9-month Net loss &#165;62.0B v profit &#165;40.7B y/y, Op loss &#165;52.9B v profit &#165;98.7B y/y, Rev &#165;613B v &#165;1.05T y/y, and Nippon Yusen saw 9-month Net loss &#165;27B v profit &#165;110B y/y, Op loss &#165;32B v profit &#165;171B y/y, Rev &#165;1.2T v &#165;2.0T y/y. Steelmaker JFE Holdings reported 9-month Net loss &#165;1.4B v profit &#165;169.4B y/y, Op Profit &#165;15.3B v &#165;376.1B y/y, Rev &#165;2.03T v &#165;3.07T y/y and reaffirmed FY guidance, while Sumitomo posted 9-month Op Profit &#165;83B v &#165;257B y/y, Rev &#165;5.6T v &#165;8.7T y/y. In healthcare, Daiichi Sankyo reported 9-month Net profit &#165;39B v loss &#165;298B y/y, Op Profit &#165;90B v &#165;98B y/y, Rev &#165;726B v &#165;628B y/y.

CURRENCIES/FIXED INCOME/COMMODITIES
- In forex, the EUR has moved to its lowest level against the US dollar since July 2009 below 1.3930, after EUR/USD moved below 1.400 on yesterday's session for the first time since mid 2009. The Euro continues to be weighed down by the rise in risk aversion related to Greece's debt situation and India's higher than expected increase to its cash reserve rate. In terms of the commodity currencies, the AUD, NZD, CAD are all weaker against the greenback on the decline in Asia equities. The Japanese yen, like the US dollar, is benefitting from the increase in risk aversion. In terms of the yen pairs, EUR/JPY was in focus as it moved below 125.00 for the first time since April of 2009.

- Crude oil prices have moved off of the session's best levels on the weakness in EUR/USD and declines in most Asian equities. Spot Gold is lower and trading below $1,085/oz on the stronger dollar. Shanghai Copper prices are declining on continued concerns that China will tighten its policies toward bank lending. In copper related news, on yesterday's session Chile, the world's largest copper producer, said its Dec copper output rose to 502K tons from 477K tons prior. Later today, the Shanghai Futures Exchange will disclose its weekly copper inventories data. Overall, commodity prices may receive further direction from the later today release of US Q4 advance GDP.

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TradeTheNews.com Market Internals update at 3:30pmET

Market Internals update at 3:30pmET
- NYSE volume 765M shares, about 8% below its three-month average; decliners lead advancers by 3.2:1.
- NASDAQ volume 2.37B shares, about 37% above its three-month average; decliners lead advancers by 2.6:1.
- VIX index +1% to just under 23.50

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TradeTheNews.com Market Internals update at 2:00pmET

Market Internals update at 2:00pmET
- NYSE volume 580M shares, about 10% below its three-month average; decliners lead advancers by 4.3:1.
- NASDAQ volume 1.88B shares, about 40% above its three-month average; decliners lead advancers by 2.9:1.
- VIX index +3% to just under 24.00

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TradeTheNews.com US Market Update

US Market Update
Dow -160 S&P -17 NASDAQ -51

***Economic Data***
- (CL) Chile Dec Industrial Production Y/Y: -0.3% v 1.2%e; Industrial sales Y/Y: -1.8% v -0.4%e
- (CL) Chile Dec Unemployment Rate: 8.6% v 8.9%e
- (CL) Chile Dec Total Copper Production: 502.0K v 477.3K tons
- (BR) Brazil Dec Nominal Budget Balance (BRL): -13.9B v -2.4B prior; Primary Budget Balance: 0.3B v 1.0Be; Net debt to GDP ratio: 43.0% v 43.1%e
- (US) Dec Chicago Fed National Activity Index: -0.61v -0.40e
- (US) Dec Durable Goods Orders: 0.3% v 2.0%e; Ex Transportation: 0.9% v 0.5%e
- (US) Initial Jobless Claims: 470K v 450Ke; Continuing Claims: 4.602M v 4.593Me

- Markets opened right at yesterday's closing highs and then headed straight down as another round of strong corporate earnings failed to ward off risk aversion. With both weekly jobless claims and the December durable goods data worse than expected, traders dumped stocks and sent the major US indices back though lows seen yesterday, to levels not seen since last November. After the open, Standard & Poor's released a reported indicating that it no longer considers Britain among the "most stable and low-risk" banking systems, aiding the greenback and bonds and further undermining equities. The Euro is now below 1.40, March copper is slipping back towards $3 and crude continues to flirt with its 200-day EMA below $74. The US 10-year note opened lower but has moved back into positive territory on the day with the weak equity markets.

- Dow components AT&T, Procter & Gamble and 3M met or beat expectations this morning. AT&T was entirely in line, and saw strong wireless adds growth over last quarter. Shares of AT&T opened in the red, although they have popped back into positive territory as executives talk up their plans for 2010 on the conference call. PG beat bottom-line estimates but also reiterated its soft full-year earnings guidance and missed expectations for next quarter. Shares of PG are up 3%. 3M came in ahead of the Street across the board and increased its 2010 forecast slightly. MMM is down 2% and heading lower.

- Ford's revenue results blew out expectations, and said it would be profitable on a pre-tax basis this year. CEO Mulally reiterated that the company would be fully profitable next year. Healthcare giant Cardinal Health beat EPS targets and raised its full-year view. Bristol Myers was strong on the bottom line. Textron is still racking up quarterly losses, with Cessna remaining a drag on results. The conglomerate's full year forecast was way below par. Eastman Kodak rose as much as 25% after the open on very strong quarterly results, although EK is back below +20% mid morning. Potash Corp is down 5% after offering very conservative guidance for next quarter and the full year. CF Industries and Mosaic are down 2-3% in sympathy.

- In tech, Semi giant Qualcomm did better than expected, although its guidance for next quarter and the full year was noticeably soft. QCOM is -13%. Mobile phone giants Motorola and Nokia are headed in opposite directions: MOT is down nearly 10% after missing revenue targets and guiding a loss for next quarter, while NOK's profit was roughly twice the expected figure, sending shares of NOK up 8%. Netflix is up a whopping 20% after crushing earnings estimates. Note that Apple is down 4% in the wake of yesterday's iPad release, despite numerous positive analyst notes and analysis released overnight.

- Currency traders remain fixated on the European peripherals this morning as commentary and rumors wreck havoc on intra-European bond spreads (and feed risk aversion). French press speculation of a potential Greek bailout plan led by Germany and France helped to move the EUR/USD pair above the 1.4020 level during the early part of the New York session. However, firm denials of the report by both French and German government officials sent the Greek 10-year spread towards the +400bps level against the Bund. The Greece PM insisted that yesterday's rumors of Chinese interest in Greek bonds were "totally false." S&P commented on the UK banking system, warning about losses that could accrue as the UK deals with the relatively high amount of leverage in its economy. Weaker initial claims and durables data also added to risk aversion sentiment and benefited the USD and JPY. EUR/USD back within striking distance of the overnight lows of 1.3935 while USD/JPY retests the 90.00 handle.

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TradeTheNews.com European Market Internals update at 10:30am ET

European Market Internals update at 10:30am ET
- FTSE100 volume 904.7M shares, about 23% higher than its 30 trading day moving average
- DAX30 volume 131.6M shares, about 63% higher than its 30 trading day moving average
- CAC40 volume 109.3M shares, about 34% higher than its 30 trading day moving average

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TradeTheNews.com Market Internals update at 10:30amET

Market Internals update at 10:30amET
- NYSE volume 260M shares, about 2% aboveto its three-month average; decliners lead advancers by 3.1:1.
- NASDAQ volume 630M shares, about 28% above its three-month average; decliners lead advancers by 1.9:1.
- VIX index -0.5% to just over 23.00

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