How Low Can You Go?

+  Investors will be turning their eyes to Europe and the beginning of the ECB’s bond buying program.  Domestically we will watch Wholesale Inventories, Producer Price Index, Import/Export Prices and Retail Sales

+  On Monday 3/9, the European Central Bank will start its bond buying program. Traders will be watching to see the availability of bonds that the ECB can actually buy. With the additional money printing, we should also expect to see the Euro continue to weaken against the US Dollar, potentially on its way to parity

+  Furthermore, Eurozone Bond yields are near record lows, and in many instances yields are negative. Traders will watch to see if the bond buying program continues to lower yields and stimulate Europe’s economy. The ECB also plans on buying bonds with negative yields and we shall learn how low they plan to go

+  On Wednesday 3/11, the Fed will announce the results of the Bank Stress Tests. If we see any of the banks get a failing grade, expect to see that individual’s bank stock fall

+  Throughout the week, multiple countries around the globe report Industrial Production which includes China, Japan, Italy, and France. The results of these reports will provide whether certain economies are strengthening  or slowing

+  Last week, after the stronger than expected jobs report, 10 Year Treasury yields spiked above 2.2%. Traders will be watching to see if Treasury yields continue to rise with the addition of the bond buying in Europe

+  In February, US corporations announced $104.3B in stock repurchases, topping the previous record of $99.8B announced back in July 2006, according to Trim Tabs Investment Research. With companies reducing the number of shares outstanding, which helps increase the  stocks share price, traders will watch to see if this trend continues

+  On 3/13, the US Treasury will begin taking “extraordinary measures” to finance the government as the US will hit its debt limit on 3/16. Analysts are expecting Congress to kick the can in some form or another to raise the debt limit for a short period of time. We could see some volatility as we approach the deadline but the markets are likely to expect a short-term deal 

+  The wild card of the week is the negotiations between Iran and the six-nation group led by the US over Iran’s nuclear program. If negotiations have a break through or fall apart, expect to see volatility in the energy markets

 

MONDAY (3/9)

  • Japan Final GDP
  • Eurogroup Meetings
  • National Australia Bank Business Confidence

 

TUESDAY (3/10)

  • 10:00 AM ET – Wholesale Inventories – Jan
  • 10:00 AM ET – JOLTS Job Openings - Jan
  • China CPI
  • China Trade Balance
  • French & Italian Industrial Output
  • European Council Meetings

 

WEDNESDAY (3/11)

  • 10:30 AM ET – Crude Oil Inventories
  • 2:00 PM ET – Treasury Budget – Feb
  • China Industrial Production
  • Great Britain Industrial and Manufacturing Production

 

THURSDAY (3/12)

  • 8:30 AM ET - Weekly Jobless Claims - Expectations
  • 8:30 AM ET - Retail Sales - Feb - Expectations
  • 8:30 AM ET - Import/Export Prices - Feb – Expectations
  • 10:00 AM ET - Business Inventories - Jan - Expectations
  • Reserve Bank of New Zealand Rate Statement and Press Conference
  • Australia Unemployment Rate and Employment Change
  • European Industrial Production
  • Earnings: Dollar General

 

FRIDAY (3/13)

  • 8:30 AM ET – PPI – Feb
  • 10:00 AM ET – Michigan Sentiment - Feb
  • Canada Unemployment Rate