Good morning. Here’s what you need to know.
— The ECB elected to leave its benchmark refinancing rate unchanged at 0.25% today. The euro is trading lower against the dollar in the wake of the announcement. The press conference with ECB president Mario Draghi at 8:30 AM ET will likely center on the Bank’s options for further liquidity provisioning in the eurozone should the outlook deteriorate further.
— Shares of GM are taking a hit in pre-market trading following the release of quarterly earnings results that missed on the top and bottom lines. The company said the earnings miss was largely because of restructuring costs, but also because of higher taxes.
— The Bank of England elected today to leave its benchmark policy interest rate unchanged at 0.5% and maintained the target for its asset purchase program at £375 billion. The pound is strengthening a bit against the dollar and the euro in the wake of the announcement.
— S&P 500 futures are higher and U.S. Treasury note futures are lower after a day in the red for both yesterday. Gold is also gaining, while the dollar is up slightly against the euro and down slightly against the yen. European equity indices are rallying after a mixed session in Asia — the Japanese Nikkei 225 closed down 0.2% while the Hong Kong Hang Seng advanced 0.7%.
— Sony is selling its personal computers business and spinning off its TV business into a separate unit, and will cut 5,000 jobs worldwide this year. The company plans to make 100 billion yen per year of cost cuts under its new restructuring plan.
— Twitter shares are down more than 20% in pre-market trading following the release of its first quarterly earnings statement since its initial public offering. Although the company reported earnings of $US0.02 per share — above analysts’ consensus estimate of a loss of $US0.02 per share — and revenues came in at $242.7 million (also above expectations), investors honed in on weak user growth. Monthly active users were 241 million, up only 9 million from the previous quarter.
— Shares of Green Mountain Coffee Roasters are up over 40% in pre-market trading following the announcement that Coca-Cola will take a $US1.25 billion, 10% stake in the company. The two will work on a cold beverage for the Keurig device. Shares of competitor SodaStream, meanwhile, are down more than 8% in pre-market trading.
— German factory orders unexpectedly dropped 0.5% from the previous month in December after rising 2.4% on November. Economists were looking for a 0.2% gain. On a work-day adjusted year-over-year basis, orders were up 6.0%, down from 7.2% in November and below expectations of a 6.3% advance.
— Weekly initial claims figures are due out at 8:30 AM ET. Economists predict initial claims fell to 335,000 in the week ended February 1 from 348,000 the week before. Continuing claims are expected to have risen slightly top 2.998 million in the week ended January 25 from 2.991 million in the previous week. Follow the release LIVE »
— Monthly U.S. trade data are also released at 8:30. Economists predict the trade deficit widened to $US36.0 billion in December from $US34.3 billion in November. Another economic data release of interest out at 8:30 — though not market-moving — is fourth quarter nonfarm productivity and unit labour costs. Economists predict nonfarm productivity growth slowed to 2.8% in Q4 from 3.0% in Q3. Unit labour costs are expected to have fallen 0.7% in Q4 after falling 1.4% in Q3. Follow all of the data LIVE on Business Insider »
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