Wall Street Greek: Financial News 11-19-09

We See Signs of Economic Pace Ease

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The day's financial news offered what seems a non-starter in the Weekly Jobless Claims data, with the count little changed. The report is more likely to be a negative influence on stocks this morning than positive, as "little-to-no change" is now a bad thing, which varies greatly from this spring when "less bad news" was good.

Financial News

Jobless Claims

The day's financial news produced the regular Weekly Initial Jobless Claims data. For the week ending November 14, first-time filers for unemployment benefits amounted to 505K. The weekly count matched against a revised prior week tally of the same result. Expectations stood at 504K, but are inconsequential, as economists simply do not spend much time on this short-term forecast. The four-week moving average declined 6,500, to 514,000. Insured unemployment stuck at 4.3%. Traders are not going to like this data until it makes a decisive move below 500K or deeper, so we view the report a non-starter or negative director for stocks within the day's financial news flow.

Leading Economic Indicators

The Conference Board will release its October data on Leading Indicators at 10:00 AM this morning. The September LEI reading showed the sixth gain in a row, as Indicators improved 1.0%. In fact, the LEI sixth month growth rate reached its fastest pace since 1983 last month. However, economists asked by Bloomberg expect an October read of +0.4%. We read this as a negative even if the data falls in line, since a slower rate of improvement might be construed as an indicator of the start toward double-dip recession, something we're concerned about here.

Philadelphia Fed Survey

On Monday, The Empire State Manufacturing Survey fell to 23.51 for November, down from 34.57 in October. The reading still showed decent growth, but the pace ease is consistent with other features of this economy. It may be natural, but it's still concerning to investors and troubling to stocks' progress. This morning at 10:00 AM, look for the Philadelphia region's version of this data in financial news flow. After an October take of 11.5 on the Philly Fed's General Business Conditions Index, economists are looking for about the same result this month. According to Bloomberg's survey, November should read 12.0. A positive for this month's data point - its New Orders Index posted improvement in October.

Natural Gas Report

Earlier this week, we noted that natural gas prices had advanced 16.3% in October, based on the Producer Price Index (PPI). This morning at 10:30, the Energy Information Administration (EIA) produces its weekly Natural Gas Report on gas storage activity. Last week's report for the week ending November 6, 2009 showed working gas in storage increased by 25 Bcf. Stocks of natural gas stood well above both the mark set last year and the five-year average for this time of year. Still, economic growth and the closing of the difference between oil and natural gas pricing has spurred renewed interest in the energy resource.

Washington Drivers

Senate Democrats say their Health Care Reform proposal released last night would cost $849 billion over 10 years, cutting the deficit while making sure that 94% of Americans have health insurance. Join our Health Care Reform Debate Forum.

Treasury Secretary Timothy Geithner testifies today before the Joint Economic Committee on Financial Reform. The Fed reports on its Balance Sheet this afternoon. The Fed's balance sheet is a report showing factors supplying reserves into the banking system and factors absorbing (using) reserve funds. President Obama met with South Korean President Lee Myung-bak today, and he noted the most fantastic greeting he has received from any nation since becoming president. The SEC will host a gathering today on small business capital formation.

Corporate News Drivers

Finally, the financial news day is flooded with corporate news drivers. Morgan Stanley (NYSE: MS) kicks off its global consumer conference, with presenters including Proctor & Gamble (NYSE: PG), Colgate (NYSE: CL) and Cadbury (NYSE: CBY). Cloud Peak Energy (NYSE: CLD) is seen raising $500 million today in its IPO.

Thursday's earnings schedule includes ActivIdentity (Nasdaq: ACTI), ADC Telecommunications (Nasdaq: ADCT), Aruba Networks (Nasdaq: ARUN), Bon-Ton Stores (Nasdaq: BONT), Books-A-Million (Nasdaq: BAMM), Brady Corporation (NYSE: BRC), Casual Male Retail Group (Nasdaq: CMRG), Central Garden & Pet (Nasdaq: CENT), China Medical Technologies (Nasdaq: CMED), Chordiant Software (Nasdaq: CHRD), Datawatch (Nasdaq: DWCH), Dick's Sporting Goods (NYSE: DKS), Ditech Networks (Nasdaq: DITC), Dole Food Co. (Nasdaq: DOLE), Dress Barn (Nasdaq: DBRN), eFuture Information Technology (Nasdaq: EFUT), Foot Locker (NYSE: FL), Gamestop (NYSE: GME), The Gap (NYSE: GPS), Griffon (NYSE: GFF), Helmerich & Payne (NYSE: HP), Hibbett Sports (Nasdaq: HIBB), Internet Gold (Nasdaq: IGLD), Intuit (Nasdaq: INTU), KIT digital (Nasdaq: KITD), Kulicke & Soffa (Nasdaq: KLIC), MTS Systems (Nasdaq: MTSC), National Grid plc (NYSE: NGG), New York & Company (NYSE: NWY), Omeros Corp. (Nasdaq: OMER), Patterson Dental (Nasdaq: PDCO), Raven Industries (Nasdaq: RAVN), Ross Stores (Nasdaq: ROST), Sally Beauty Co. (NYSE: SBH), School Specialty (Nasdaq: SCHS), Sears Holdings (Nasdaq: SHLD), Shoe Carnival (Nasdaq: SCVL), SkillSoft Corp. (Nasdaq: SKIL), Stage Stores (NYSE: SSI), Stein Mart (Nasdaq: SMRT), Suntech Power (NYSE: STP), Sycamore Networks (Nasdaq: SCMR), The Buckle (NYSE: BKE), The Cato Corp. (Nasdaq: CATO), The Children's Place (Nasdaq: PLCE), The Wet Seal (Nasdaq: WTSLA), Trans World Entertainment (Nasdaq: TWMC), Transdigm Group (NYSE: TDG), Trina Solar (NYSE: TSL), TTI Telecom (Nasdaq: TTIL), Verigy Ltd. (Nasdaq: VRGY), Williams-Sonoma (NYSE: WSM) and Zumiez (Nasdaq: ZUMZ).

See yesterday's Business News.