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TradeTheNews.com US Market Update

Dow +25 S&P +5 NASDAQ +13
***Economic data***
- (TU) Turkey Central Bank leaves Benchmark Repo Rate unchanged at 5.75%; as expected
- (US) Nov Chicago Fed National Activity Index: -0.37 v -0.17e
- (US) Q3 Final GDP Q/Q Annualized: 1.8% v 2.0%e; Personal Consumption: 1.7% v 2.3%e
- (US) Q3 Final GDP Price Index: 2.6% v 2.5%e; Core PCE Q/Q: 2.1% v 2.0%e
- (US) Initial Jobless Claims w/e Dec 16th: 364K v 380Ke; Continuing Claims: 3.546M v 3.60Me
- (MX) Mexico Nov Unemployment Rate: 5.0% V 4.8%E
- (US) Dec Final University of Michigan Confidence: 69.9 v 68.0e (highest since June 2011)
- (US) Nov Leading Indicators: 0.5% v 0.3%e
- (US) Oct House Price Index M/M: -0.2% v +0.2%e
- (US) Weekly EIA Natural Gas Inventories: -100 bcf vs. -100 bcf to -110 bcf expected range

- US equity indices are in the black this morning despite the slight downward revision in the final reading of Q3 GDP. Positive sentiment is being buttressed by a second substantial consecutive decline in initial weekly jobless claims, which pushed out to their lowest level since April 2008 with today's data. Note that European indices appear to be still benefiting from the afterglow of the ECB's three-year LTRO auction. Analysts noted that the US GDP surprise was largely due to a downward revision in consumer spending, particularly in healthcare services. After the data dropped, PIMCO's Bill Gross reiterated that he expects the Fed to prolong its 'extended period' language out to four or five years in early 2012 to counter rising fears about global growth. Treasury markets are little changed but to the upside.

- Quarterly losses at DRAM manufacturer Micron were considerably greater than expected, thanks to further declines in the firm's profit margins. Executives commented that the DRAM market is under a lot of pressure in general, although they also claimed that Micron is faring better than competitors. Shares of MU are up a whopping 15%. Retailer Bed, Bath and Beyond had a decent third quarter, with earnings that came in ahead of consensus estimates. The firm also increased its FY11 earnings outlook. BBBY is down more than 5%. Auto giant Toyota forecasted a 20% jump in 2012 sales, to 8.48M vehicles, as it recovers from output losses caused by natural disasters in Japan and Thailand this year. Cancer specialist Alliance Healthcare offered a soft initial view of its FY12 outlook and failed to bring up FY11 guidance to meet expectations. AIQ is up 20% on the day. On the deal front, Vulcan Materials rejected Martin Marietta's unsolicited all-stock exchange offer.

- The mixed US economic data has had little impact on the greenback and it continues to maintain its recent trading ranges. Note that the euro was slammed by more downgrade rumors, pulling EUR/USD back below 1.3100 after a spike upwards on strong demand among Middle Eastern names. The USD/JPY pair was edging higher to probe 78.20.

***Looking Ahead***
- 11:00 (CO) Colombia Q3 GDP Y/Y: 6.0%e v 5.2% prior
- 11:00 (EU) ECB Draghi and BOE King at European Systemic Risk Board briefing
- 11:00 (US) Fed to purchase $4.25-5.00B in Notes
- 12:15 (US) US President Obama to speak on payroll tax
- 13:00 (BR) Brazil Nov Central Govt Budget Balance (BRL): No est v 11.3B prior
- 14:00 (AR) Argentina Oct Economic Activity Index M/M: No est v 0.3% prior; Y/Y: 7.5%e v 7.7% prior
- 20:35 (CH) China Dec MNI December Flash Business Sentiment Survey

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