From The Trading Floor: Stocks are trading in cautious to negative territory this morning despite better than expected consumer confidence as consumers book profits for a second day in a row on the hangover effect of weaker consumer spending and hawkish comments from some Fed Governors
June US Michigan Consumer Sentiment (final) 82.5 vs consensus 82.0
Russell Investments is planning its annual index realignment before the market close, affecting more than $5T in assets. Credit Suisse estimates $42B will trade as a result of the adjustment, resulting in one of the biggest trading days of the year in terms of dollar volume. Asset managers and investors will have to realign their portfolios to match up with the new shifts in indices such as the Russell 2000 and the Russell 3000.
Nike reports Q4 EPS 78c, consensus 75c. Reports Q4 revenue $7.4B, consensus $7.34B. Reports Q4 worldwide futures orders up %11, 12% growth excluding currency changes. Inventories as of May 31 up 13%.
DuPont cut its operating profit forecast for the second quarter and the full year, saying sales in its agriculture and performance chemicals units increased at a slower pace than it had expected.
NextEra Energy Partners (NEP) priced 16.25 million shares at $25. The opening print was $32.55 on a print of 1,623,386 shares.
The Obama administration has requested $500M to aid Syrian rebels, as a result of the civil war which seems to be expanding into Iraq. In a move that increases the United States' role in the crisis, the government is requesting funds to train and arm the rebels, and marks its opposing stance which previously sought no heavy involvement in the region.
The final reading of French gross domestic product in the first quarter showed zero growth, in line with forecasts. Meanwhile, consumer confidence in the U.K., as measured by the GfK indicator, reached positive territory in June for the first time since March 2005.
At an EU summit today, the West will debate if Russian sanctions will need to be increased. The discussion follows the controversial EU trade deal signed by Ukraine this morning.
Resistance today looks to be at 1963 / 1966 with support at 1947 / 1950
