Monday Morning Cheat Sheet: 3 Stories Moving Markets
Overseas exchanges were quiet overnight. Major markets in China, Hong Kong, and Taiwan were closed on Monday to observe the Lunar New Year, and will be re-opening throughout the week. Japan’s Nikkei was closed in observance of National Foundation Day, and will re-open on Tuesday. The S&P/ASX 200, which was still open for trading, fell 0.24 percent.
European markets overcame early losses and were trading in positive territory heading into the opening bell in New York. London’s FTSE 100 was up 0.35 percent, Germany’s DAX was up 0.08 percent, and the STOXX 50 was up 0.28 percent.
U.S. futures at 8:15 a.m.: DJIA: +0.20%, S&P 500: +0.19%, NASDAQ: +0.16%.
1) President Barack Obama will deliver his State of the Union address this Tuesday, and market participants will be keen to hear what the President’s economic game plan looks like. With his second term secured, the President faces the task of guiding a divided Congress to a consensus on how best to simultaneously reduce the deficit and spur economic growth.
Previewing his speech to party members, the President reportedly indicated infrastructure, clean energy, and education as key aspects of his plan to stimulate a beleaguered economy. However, GOP leaders have voiced concerns about where the funding would come from for new spending. On the table is a fundamental disagreement in how best to lead America back to prosperity. While both parties have competent solutions, investors know all too well that indecision, one way or another, is counterproductive.