Today's Key News - Feb 15

Good Morning. At this hour, major U.S. markets are relatively unchanged. The market is closely attuned to the testimony of Ben Bernanke before the House Financial Services Committee for any new information that might contradict yesterday's very positive discussion with the Senate Banking Committee.

Asia:
Hang Seng Index +1.6%; Shanghai/Shenzhen 300 +3.1%; NIKKEI 225 +0.81%; BSE SENSEX 30 +2.47%; KRX 100 +0.82%; Ho Chi Minh +0.94%

U.K. & Europe:
DJ STOXX 50 Index -0.34%; FTSE 100 +0.04%; CAC 40 -0.22%; DAX -0.01%; Russian RTS Index +0.34%

KEY HEADLINE NEWS

• Weekly jobless claims were reported today much higher than expected. If pressure eases on the wage front, a key driver of inflation may ease, helping the economy to realize the Fed's outlook on inflation.
• The New York state manufacturing index came in higher then expected, and the outlook was encouraging as well. Philly Fed will be reported this afternoon.
• A concerning meeting began today, as Russian, Chinese and Indian leaders meet in Delhi to discuss an effort to balance world order. This potential partnership is a key development that should not be overlooked. Russia has already provided Iran with anti-aircraft weaponry to defend against attack, and has played a critical role in helping Iran to develop its nuclear program. China is an important importer of Iranian oil, as is India. China and Russia have important interests in insuring that a stable Iran persists. We believe that it is not out of the question that the three would not assist Iran in a more direct manner. Perhaps reaching a bit, imagine a scenario where Russian and Chinese troops are placed in harms way around Iranian facilities. In that event, the Asian powers would challenge the U.S. to risk starting a world war by bombing Iran. I doubt we would, but can we say the same for Israel?
• Ominously, foreign investment into the U.S. market measured the lowest in almost five years in December. However, in December, the outlook for the American economy was not as strong as it is now, so we may see January and February's results show higher levels of investment.
• Fed Chairman Bernanke is addressing the House Financial Services Committee at this hour, and we are on top of it for you. We may provide a summary of the Fed Chief's discussion soon, so stay tuned.

Check back in later this morning, as "Today's Morning Coffee" will outline in greater detail the day's activity in overseas and commodity markets, and provide economic data & analysis and stock specific news. (disclosure)