Week of Mar 20 2015 Weekly Recap & The Week Ahead
Whenever a well-known bearish analyst is interviewed in the financial press, it usually coincides with an important near-term market bottom – Clif Droke
1. Housing Data Disappoint — CNBC, according to the latest survey, February housing starts slow to 897,000. The data was 14 percent below expectations of 1.04 million units on a seasonally adjusted annual basis. For the month of Feb., a long string of disappointing releases: industrial production, capacity utilization, NAHB Housing Market Index, retail sales, regional Fed surveys. Only ISM Services and nonfarm payrolls (arguably the most important report) have been above expectations.
2. Apple ‘s Web TV Service to Launch in 3Q 2015 — Apple is in talks to launch a Web TV service this fall, which will feature about 25 channels (including ABC (NYSE:DIS), CBS (NYSE:CBS) and Fox (NASDAQ:FOXA)), WSJ reports. The new service would cost about $30-$40 and would work across all devices powered by Apple’s iOS operating system, including iPhones, iPads and Apple (NASDAQ:AAPL) TV set-top boxes.
3. FOMC Meeting/Feb Policy — the Fed Policymakers dropped their “patient”pledge on raising rates, but stressed that an April hike is “unlikely”. The Fed also cut its median 3-year forecast for its fed forecast to 2.3%-2.7% vs. Dec ‘s 2.6%-3% estimate. The statement would put a June increase on the table, but the dovish tone suggested the first hike wouldn’t come until at least September or October.
4. German’ Merkel Downplays Hopes for Greek Deal at European Summit — after refusing to update its creditors on the reform progress it made since it agreed on a bailout extension in February, Greece angered its eurozone partners again by passing a “unilateral” poverty law without consultation. Its 10-year yield rose 38 basis points to 10.88% as worry grew that Athens will run out of cash.
5. Transocean (RIG) to Book Charge from Rig Disposal — Transocean (NYSE:RIG) expects to book an after-tax charge of between $300M-$325M as it moves to dispose of four rigs. According to Baker Hughes, U.S. oil-rig count fell to 866 last week, the 14th straight week of declines, as plunging oil prices wreak havoc on the industry. Transocean (NYSE:RIG) also logged a $992M charge to correct the value of its contract drilling business in February, and saw the departure of CEO Steven Newman.
The week ahead — Economic data from Econoday.com:
Tags: Apple TV, oil-rig count, RIG