Archive - Dec 17, 2014 - Story

Remember the narrative that the plunge in gas prices is supposed to lead to a surge in corporate profitability if only for those companies for which energy is a cost (not a top-line item like in the decimated energy sector?). Moments ago logistics and trade bellwether came out with numbers that roundly refuted this, after it missed not only on the top line, with revenues of $11.94 billion on expectations of $11.98 billion, but a wide EPS miss, printing $2.14, well below the $2.25 expected and one which the company admitted includes the benefit of $0.16 in EPS from stock repurchases.

• Citigroup is pleased: Obama signs $1.1 trillion government spending bill (Reuters)
• Oil holds below $60 as OPEC, Russia keep pumping (Reuters)
• 5 Things to watch at the December Fed Meeting (WSJ)
• Russia Tries Emergency Steps for 2nd Day to Stem Ruble Rout (BBG)
• Ruble crisis could shake Putin's grip on power (Reuters)
• Apple Curbs Russia Sales as McDonald’s Lifts Prices (BBG)
• Traders Betting Russia’s Next Move Will Be to Sell Gold (BBG)
• China Warms to a More Flexible Yuan (WSJ)

Previewing today's market: near record low liquidity, with chance of ridiculous volatility in the Ruble, energy and equity markets. While no doubt today's main event will be the "considerable" FOMC announcement and the Fed's downward-revised economic projections followed by Yellen's press conference, what traders will be most excited by is that, finally, Jim Bullard will no longer be bound by the blackout period surround FOMC decisions, and as such can hint of QE4 again at his leisure during key market inflection (i.e., selling) points.