Monday Morning Market Preview, Calendars

Morning Market Preview:

S&P futures are lower, down 37 to 38 points, as…

• Fourth-quarter earnings releases increase this week with 107 S&P 500 Index member companies and six of the 30 Dow Jones Industrial Average components reporting results.
• The Federal Reserve is expected to raise interest rates by 25 basis points at its latest monetary policy meeting on Wednesday, but signal it’s getting closer to the end of the hike cycle.
• Corporate pensions funds are said to have as much as $1 trillion worth of assets slated to be invested in bonds which will likely drive yields lower.
• The U.S. Bureau of Labor Statistics is scheduled to release job openings numbers on Wednesday and January payroll data on Friday, key updates on domestic labor market tightness.

European markets fell as…

• Spain’s preliminary Consumer Price Index (“CPI”) growth for January was unexpectedly higher following a five-month period of easing, with consumer prices growing by 5.8% from a year ago. 
• Germany’s advanced fourth-quarter gross domestic product (“GDP”) data showed that Europe's largest economy shrank by 0.2% and is likely entering into a recessionary period. 
• The European Central Bank is expected to raise interest rates by another 50 basis points to 2.50% on Thursday while signaling it will take similar action in March.
• The Bank of England is expected to raise interest rates by 50 basis points to 4% on Thursday but indicate it will slow the pace to 25 basis points at its next meeting in March.

Asian markets ended mixed as…

• China’s state council said it will implement policy measures to boost domestic consumption and support economic growth.
• Bank of Japan Governor Haruhiko Kuroda said told members of parliament it’s important to maintain easy-money policies due to continued economic uncertainty.
• Japanese Prime Minister Fumio Kishida said there was potential for the country’s economy to return to deflation as domestic consumer demand remains weak.
• The People’s Bank of China said it would extend re-lending measures for targeted infrastructure sectors in an attempt to support economic growth.

And ahead of…

Dallas Fed Manufacturing Activity for January (10:30 a.m.)

Pre-Market Levels:

S&P -0.90%

Asia:

Japan's Nikkei +0.19%, Japan's TOPIX -0.04%, China's Shanghai Composite +0.14%, Hong Kong Hang Seng Index -2.73%, South Korea's KOSPI -1.35%, Taiwan's TSE +3.76%

Europe:

EuroStoxx 50 -0.89%, UK FTSE +0.11%, German DAX -0.57%, French CAC -0.51%, Italian MIB -0.24%, Spanish IBEX -0.12%       

Currencies:

Dollar -0.05%, Japanese Yen +0.22%, Euro +0.26%, British Pound -0.05%, Swiss Franc -0.10%, Chinese Yuan -0.48%

Risk:

VIX +7.94%

Bitcoin -2.74%

Ethereum -3.63%

Growth:

WTI Crude -0.03%

Brent Crude +0.02%

Nat Gas -4.35%

Copper -0.27%

Safety:

Gold -0.21%

Silver +0.75%

Sovereign Bonds:

U.S. Treasury 10-yr yield +3.2 bps at 3.55%

U.S. Treasury 2-yr yield +3.1 bps at 4.24%

German 10-yr yield +5.7 bps at 2.30%

French 10-yr yield +6.1 bps at 2.77%

Italian 10-yr yield +6.5 bps at 4.30%

Japanese 10-yr yield +1.0 bps at 0.49%

Earnings:

ARLP, BEN, CODA, DX, GEHC, LICY, SBT, SILC, and SOFI before the open.

AGNC, ARE, CADE, CFLT, CSWC, ELS, FISI, FSBC, GGG, HLIT, HP, HTLF, JJSF, MBIN, NXPI, PCH, PFG, SANM, SYM, TRNS, WHR, and WWD after the close.

Calendar:

Spain – CPI (Preliminary) for January (3 a.m.)
Germany – GDP for 4Q (Preliminary) (4 a.m.)
Eurozone – Economic Confidence for January (5 a.m.)
Dallas Fed Manufacturing Activity for January (10:30 a.m.)