There are no economic reports set for release this morning, but get ready for some potential fireworks…today kicks off the 4th quarter earnings season for the Stock market. First out of the gates will be Alcoa, who will report after the market closes today - and Alcoa recently cut 13,500 jobs, representing 13% of their global workforce. No one expects any stellar reports to be in store, but many eyes and ears will be on what these companies say regarding future earnings guidance and outlook.
Oil prices are tumbling this morning to near $38 a barrel on concerns that slumping demand will outweigh output cuts by OPEC. Due to the present economic slowdown, Oil consumption is expected to fall by 1 million barrels a day this year in the US alone.
Word from Wall Street has it that Morgan Stanley and Citigroup will be combining their brokerage units to become the largest financial advisor to individuals. Morgan Stanley will pay between $2B and $3B for a 51% stake in Citi’s Smith Barney unit.
Although Bond prices are down, they may rebound a bit later if the Fed steps in with some buying. Although there is no news so far today on their buying activity, that could change as the day unfolds. The Bond’s price is trading within a wide range, between resistance at $101.37 and support at $99.97.
