What you need to know before the US open
Housing and retail are in focus today, with figures just in.
House prices are still rising, but the pace has moderated a bit. The house price index for December increased 0.8 per cent – a revised figure showed they fell 0.1 per cent in November.
The S&P/Case-Shiller indices rose 13.4 per cent in the month. Analysts had expected the latter to fall from November’s 13.7 per cent to 13.1 per cent.
Consumer confidence numbers are out later, with analysts expecting a marginal fall in February.
The S&P 500 hit an all-time high yesterday, but equity markets are expected slightly lower today, with S&P 500 futures trading 0.2 per cent lower.
Corporate news
JP Morgan's confirmed it's slashing 6,000 jobs, as it looked to prune its mortgage business by $2bn.
Retailer Home Depot saw quarterly profits exceed forecasts, keeping its belt tight in order to offset weak sales. Net earnings were £1.01bn – 73 cents per share. Analysts had predicted 71 cents per share.
And despite a 1.6 per cent fall in sales owing to the atrocious weather besetting the US, department store Macy’s has reported a higher quarterly profit, following a bumper Christmas period. Profits increased 11 per cent to $811m, a whisker shy of forecasts.
Shares in Tesla rose five per cent in pre-market trading, following a doubling on price target by Morgan Stanley, to $320.
In Asia
The Nikkei average advanced to a four-week closing high in Tuesday trading, after yesterday’s rally on Wall Street. Other markets were mixed, though.
In the UK
GKN, the global engineering firm, reported a 17 per cent rise in profits last year, and upped its dividend. Although it sees growth this year, it warned did warn that currency headwinds could affect results. This saw it drag the FTSE 100 down in trading today.
In Europe
The European Commission has just realised its “winter forecasts”, predicting faster growth and ongoing low inflation. Italy was downgraded when it came to growth this year.
European bourses are trading lower today.
Data in focus
• 2.00pm: US Dec S&P/Case-Shiller home prices
• 3.00pm: US Feb consumer confidence