Live Index – Fri, 23 Jan 2015 Premarket

March E-mini S&Ps (ESH15 +0.07%) this morning are up +0.07% at a 3-week high and European stocks are up +1.97% at a 6-1/3 year high on positive carry-over from Thursday’s action by the ECB to unveil a 1.1 trillion euro quantitative-easing program. European stocks also received a boost on signs of economic strength after Eurozone manufacturing activity expanded at the fastest pace in 6 months. Asian stocks closed higher: Japan +1.05%, Hong Kong +1.34%, China +0.12%, Taiwan +1.08%, Australia +1.51%, Singapore +1.22%, South Korea +0.74%, India +0.94%. China’s Shanghai Stock Index posted a 5-1/3 year high on reduced economic concerns after a gauge of Chinese manufacturing activity unexpectedly rose. Commodity prices are mixed. Mar crude oil (CLH15 +0.71%) is up +1.55%. Mar gasoline (RBH15 +1.19%) is up +1.62%. Feb gold (GCG15 -0.18%) is down -0.42%. Mar copper (HGH15 -2.35%) is down -1.61%. Agriculture prices are mixed. The dollar index (DXY00 +1.27%) is up +0.92% at an 11-1/3 year high. EUR/USD (^EURUSD) is down -1.60% at an 11-year low. USD/JPY (^USDJPY) is down -0.49%. Mar T-note prices (ZNH15 +0.42%) are up +18 ticks on positive carry-over from a rally in European bond markets as the yield on the 10-year Italian bond dropped to a record low 1.413% and the German 10-year bund yield tumbled to a record low 0.359%.

The Eurozone Jan Markit manufacturing PMI rose +0.4 to 51.0, right on expectations and the fastest pace of expansion in 6 months. The Eurozone Jan Markit composite PMI rose +0.8 to 52.2, better than expectations of +0.3 to 51.7 and the fastest pace of expansion in 5 months.

The China Jan HSBC flash manufacturing PMI unexpectedly rose +0.2 to 49.8, better than expectations of -0.1 to 49.5.

The German Jan Markit/DME manufacturing PMI unexpectedly fell -0.3 to 51.0, weaker than expectations of +0.5 to 51.7.

UK Dec retail sales including autos rose +0.4% m/m and +4.3% y/y, better than expectations of -0.6% m/m and +3.0% y/y. Dec retail sales ex-autos rose +0.2% m/m and +4.2% y/y, stronger than expectations of -0.7% m/m and +3.4% y/y.

Today’s Dec existing home sales report is expected to show a +3.0% increase to 5.08 million, reversing about one-half of November’s decline of -6.1% to 4.93 million. Today’s Dec leading indicators report is expected to show another solid increase of +0.4% m/m, adding to the +0.6% increase seen in November.

There are 8 of the S&P 500 companies that report earnings today: GE (consensus $ 0.55), Honeywell (1.42), State Street (1.27), McDonalds (1.22), Bank of New York Mellon (0.59), Rockwell Collins (1.15), Kimberley-Clark (1.36), Kansas City Southern (1.23). There are no equity conferences today.

General Electric (GE +1.00%) reported Q4 EPS of 56 cents, higher than consensus of 55 cents.

LinkedIn (LNKD +2.62%) was upgraded to ‘Strong Buy’ from ‘Market Perform’ at Raymond James.

J.B. Hunt (JBHT +2.67%) was downgraded to ‘Hold’ from ‘Buy’ at Deutsche Bank.

Honeywell International (HON +0.14%) reported Q4 EPS of $ 1.43, better than consensus of $ 1.42.

Chesapeake (CHK -1.26%) was upgraded to ‘Outperform’ from ‘Neutral’ at Credit Suisse.

State Street ({=STT reported Q4 EPS of $ 1.37, better than consensus of $ 1.27.

KLA-Tencor (KLAC +2.22%) fell over 5% in after-hours trading after it lowered guidance on Q3 EPS to 63 cents-87 cents, far below consensus of 98 cents.

D. E. Shaw & Co reported a 5.0% passive stake in Western Refining (WNR +3.23%) .

Altera (ALTR +1.32%) reported Q4 EPS of 36 cents, better than consensus of 35 cents.

Skyworks (SWKS +2.63%) reported Q1 EPS of $ 1.26, higher than consensus of $ 1.19.

E-Trade (ETFC +2.86%) rose over 4% in after-hours trading after it reported Q4 EPS ex-items of 26 cents, better than consensus of 23 cents.

Capital One (COF -1.31%) reported Q4 EPS of $ 1.73, less than consensus of $ 1.74.

ResMed (RMD +2.93%) reported Q2 EPS of 64 cents, higher than consensus of 62 cents.

Hexcel (HXL +1.75%) reported Q4 EPS of 54 cents, right on consensus.

Intuitive Surgical (ISRG +1.40%) reported Q4 EPS of $ 4.92, well above consensus of $ 4.38.

Starbucks (SBUX +1.78%) reported Q1 EPS of 80 cents, right on consensus.

Maxim Integrated (MXIM +0.43%) reported Q2 EPS ex-items of 33 cents, better than consensus of 30 cents.

Mar E-mini S&Ps (ESH15 +0.07%) this morning are up +1.50 points (+0.07%) at a 3-week high. The S&P 500 index on Thursday rose to a 1-1/2 week high and closed higher: S&P 500 +1.53%, Dow Jones +1.48%, Nasdaq +1.87%. Bullish factors included (1) carry-over support from a rally in European stocks to a 7-month high after the ECB announced a 60 billion euro-per-month QE program, more than expectations of 50 billion euros per month, and (2) strong Q4 earnings results after Southwest Airlines, Union Pacific and other companies reported better-than-expected earnings estimates. Stocks shook off the U.S. weekly initial unemployment claims of decline -10,000 to 307,000, which was less than expectations of -16,000 to 300,000.

Mar 10-year T-notes (ZNH15 +0.42%) this morning are up +18 ticks. Mar 10-year T-note futures prices on Thursday fell to a 1-week low and closed lower. Closes: TYH5 -10.00, FVH5 -6.00. The main bearish factor was reduced safe-haven demand for T-notes after the S&P 500 rallied to a 1-week high. Losses in T-notes were limited after U.S. weekly jobless claims fell less than expected.

The dollar index (DXY00 +1.27%) this morning is up +0.861 (+0.92%) at an 11-1/3 year high. EUR/USD (^EURUSD) is down -0.0182 (-1.60%) at an 11-1/3 year low. USD/JPY (^USDJPY) is down -0.58 (-0.49%). The dollar index on Thursday surged to an 11-year high and closed higher: Dollar index +1.173 (+1.26%), EUR/USD -0.02443 (-2.10%), USD/JPY +0.531 (+0.45%). The main bullish factor was a slump in EUR/USD to an 11-year low after the ECB said it will buy 60 billion euros of private and public debt a month until Sep 2016, more than estimates of 50 billion euros per month.

Mar WTI crude oil (CLH15 +0.71%) this morning is up +72 cents (+1.55%) and Mar gasoline (RBH15 +1.19%) is up +0.0220 (+1.62%). Mar crude oil and Mar gasoline on Thursday closed lower with Mar crude at a 1-week low: CLH5 -1.47 (-3.08%), RBH5 -0.0013 (-0.10%). Bearish factors included (1) the rally in the dollar index to an 11-year high, (2) the +10.7 million bbl surge in weekly EIA crude inventories to an 8-month high of 397.85 million bbl, more than expectations of +2.5 million bbl, and (3) the +2.91 million bbl increase in crude supplies at Cushing, OK, the delivery point of WTI futures, to an 11-month high of 36.8 million bbl. Gasoline recovered most of its losses after weekly EIA gasoline inventories rose +588,000 bbl, less than expectations of +1.5 million bbl.