Six days of equity gains came to a halt yesterday but the losses were trivial as the Dow slipped 0.02% and the S&P 500 fell 0.14%. This morning, however, equity markets are seeing real losses as traders lock in profits and prepare for the New Year.
One hour before the bell, the Dow looks to open 46 points lower at 10,4and futures on the S&P are 5 points off to 1,116.
Commodities are also weaker with WTI Crude oil falling 17 cents to $78.70 per barrel and Gold trading $6.01 lower to $1,090.82.
Reporters from Business Week point out that oil prices are 77% higher now compared to the start of the year, marking the fastest annual climb in ten years. In addition, oil prices have tripled over the past decade.
Data coming out today is unlikely to have a major impact. Only one release is scheduled to hit markets and it is a regional business index for the midwest. In addition, the Treasury is holding an auction in the early afternoon.
Key Releases Today:
9:45 ― The last and most influential of the regional manufacturing indexes, the Chicago Business Barometer, is expected to moderate slightly as the year comes to a close. The Chicago PMI rose about 2 points last month to 56.1, with new orders inching up to a robust 62.8. In December trends are about the same but analysts are looking for some pullback after the November results were stronger than expected.
“The index rose by 10 points over the last two months and looks set for a partial retreat,” said analysts from Nomura Global Economics. “Other regional manufacturing indexes released earlier in the month were mixed, and therefore offer little guidance on the outlook for the Chicago [index].
- Treasury Auctions:
- 1:00 ― 7-Year Notes
