January 18, 2011
Stock futures are flat this morning as earnings season kicks into gear. Citigroup missed estimates after taking $1.1 billion in charges related to tighter credit spreads. The company did earn money in 2010, the first time under CEO Vikram Pandit. European markets are strong on improving sentiment as leaders continue discussing options for ending the sovereign debt crisis. Bond markets are soft and commodities are flat.
According to the Fiscal Times the US is now the #2 destination (behind Australia) for Chinese business investments. A stronger yuan, which hit 6.5824 yesterday, would further exacerbate this trend. The yuan now sits at a 17 year high.
Apple has announced that Steve Jobs will be taking another medical leave, putting pressure on the stock this morning. From a business standpoint the timing is unfortunate as the company faces their biggest competitive challenge in the past four years in handsets, tablets, and apps.
Goldman has decided to limit its Facebook offering only to foreign investors after citing “intense media coverage” of the sale, which US regulators were reviewing as a possible public solicitation.
Rates have risen dramatically over the past two months, however, it appears they haven’t broken out to the upside on a technical basis. The chart below, courtesy of Kimble Charting solutions, shows that yields may be bumping up against downward trending resistance.
Asian markets were flat last night.
Have a great day