| Last | Change | Percent | |
| S&P Futures | 1477.5 | -1.4 | -0.09% |
| Eurostoxx Index | 2715.3 | -11.3 | -0.42% |
| Oil (WTI) | 95.48 | -0.1 | -0.08% |
| LIBOR | 0.302 | 0.000 | 0.00% |
| US Dollar Index (DXY) | 79.92 | -0.116 | -0.14% |
| 10 Year Govt Bond Yield | 1.86% | 0.02% | |
| RPX Composite Real Estate Index | 192.8 | 1.0 |
Markets are flattish on no real news. Japan has announced a 2% inflation target, similar to what the Fed has been doing, in an attempt to weaken the yen. The World Economic Forum meets in Davos this week. For once, there isn't a major crisis to deal with. We don't have a lot of economic data this week, with the exception of leading economic indicators on the 24th. Bonds are down half a point and MBS are down a tick or two.
We have decent earnings reports this morning from DuPont, Travelers, Johnny John, and Freeport. This is one of the heaviest weeks for earnings reports, and erstwhile market darling Apple reports tomorrow after the close.
The WSJ is predicting that companies will increase share buy-backs this year as companies try and figure out what to do with excess cash. This will buoy the S&P 500 and mask the effect of flat earnings. Many strategists believe that US companies have pretty much wrung out all of the excess costs they can and any further earnings growth will have to come from revenue growth. And if you can't get revenue growth, how do you show increasing EPS? You guessed it - buybacks.
Is the financial system finally back on its feet? We will see if Silver Lake is able to obtain financing for its planned $24 billion LBO of Dell. This is one of the side effects of the Fed's QE efforts - in an era of rock-bottom interest rates, pension funds and insurance companies are starving for yield, which makes the splashy LBO possible again.
The Chicago Fed National Activity Index came in +.02 in December, down from +.27 in November. The 3 month moving average is still negative, indicating economic activity is below its historical trend.
The House will vote on a 4-month extension of the debt ceiling, which seems to take the default issue off the table. All eyes will then turn to the sequestration cuts and the continuing resolution.
The CFPB has released a summary of the new broker / LO loan comp rules. LO comp may not be based on any of the transaction's terms of conditions. In other words, the interest rate does not matter, and LOs cannot be comped for steering a borrower to purchase title insurance from an affiliate. Pricing concessions are out as well.
Finally, as a child of the 70s, I note with sadness the passing of Atari.
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