Riskier assets started the day on a high note, but as the day wore on US investors looked to take profit after substantial increases throughout the week. A disappointing report on New Home sales offset positive sentiment from Greece and other US economic data.
Greek PSI talks resumed Thursday as the parties involved try to reach an agreement on the average coupon for the deal. The banks said their best offer is already on the table, but the fact that they are back for more talks suggests otherwise. It should be no surprise that the IIF has called for the public sector to take haircuts, but developments over the past few days suggest discord within the troika over this issue.
In the US, better than expected Durable goods orders were offset by an increase in Jobless Claims. Manufacturers’ orders for durable goods increased by 3.0% to $214.52 billion, according to the Commerce Department. Orders for non-defense capital goods excluding aircraft climbed by 2.9% during December, suggesting some confidence among companies in the uneven economic recovery. Unfilled orders rose 1.5%, the strongest gain since March 2008.
On the employment front Initial unemployment claims increased by 21,000 to 377,000 in the week ended Jan. 21, according to the Labor Department. The previous week’s figures were revised up slightly to 356,000 from 352,000, which was still the lowest level since April 2008. Economists surveyed had expected claims to jump by 23,000 to 375,000.
There were a multitude of stocks that had earnings that beat expectations. Caterpillar, 3M and Netflix all beat expectations. Binary option traders should look at the Dow given the positive effects of CAT and MMM.
